OMB APPROVAL
OMB Number: 3235-0570
Expires: August 31, 2010
Estimated average burden
hours per response.....18.9
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21823
Pioneer Series Trust V
(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 Global
Select Equity Fund
Annual Report | August 31, 2008
Ticker Symbols:
Class A GLOSX
Class B GBSLX
Class C GCSLX
[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 13
Schedule of Investments 15
Financial Statements 20
Notes to Financial Statements 27
Report of Independent Registered Public Accounting Firm 33
Approval of Investment Advisory Agreement 36
Trustees, Officers and Service Providers 40
Pioneer Global 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 Global 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 Global Select Equity Fund | Annual Report | 8/31/08 3
Portfolio Management Discussion | 8/31/08
In the following interview, portfolio manager Piergaetano Iaccarino discusses
the factors that influenced performance of the Fund for the annual period ended
August 31, 2008.
Q How did the Fund perform over the 12-month period ended August 31, 2008?
A The Fund's total return from August 31, 2007, through August 31, 2008, was
-10.68% (Class A shares at net asset value) versus -11.57% for the MSCI
World Index for the same period. While the global environment for equities
was volatile during the 12-month period, strong stock selection helped
mitigate some of the downside for the Fund's shareholders.
Q Can you review the Fund's overall investment approach?
A We look at mid- and large-capitalization stocks in more than 30 countries
and from that universe build a concentrated portfolio of fewer than 50
stocks. Each stock that we hold will generally be overweighted by at least
one percent versus the MSCI World Index. In selecting securities for the
portfolio, we look for "growth at a reasonable price," and so there is a
strong value component to our analysis. We seek companies that not only are
benefiting from operating efficiencies as reflected in things like
increased market share and revenues, but that also use their capital
efficiently. In particular, we look for strong free cash flow, because this
gives a company the flexibility to do things like make share buybacks,
reinvest in the business, make acquisitions, and raise dividends. Finally,
we assess not only the potential price gains for each stock, but also the
potential for a decline in price if things go wrong, and favor those stocks
with the highest upside relative to their downside.
Q Could you characterize the global equity markets over the period?
A Global equity markets were volatile throughout the 12-month period and
ended the period lower. Problems in the US subprime mortgage market that
emerged in the summer of 2007 precipitated a dramatic shift in investor
risk tolerance worldwide. This in turn led to widespread selling across the
equity markets, with financial sectors and cyclical companies with exposure
to developed markets faring the worst. As the period progressed,
significant asset write-offs among global financial companies related to
subprime mortgages in the US and tightening credit markets continued to
undermine investor confidence. Amid fears that the difficulties would
damage the broader economic environment, the US Federal Reserve cut short
term rates from 5.25% to 2.00% over the period. In March, in response to
the collapse
4 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
of leading investment bank Bear Stearns, the Fed took unprecedented,
aggressive steps to provide liquidity to the financial markets The Fed's
actions helped to stabilize market sentiment briefly, before an alarming
run-up in the price of oil and other commodities heightened investor
concerns over both global growth and inflation. The European Central Bank
remained focused on inflation, initiating an upward movement in rates
toward the end of the period despite the ongoing financial market
turbulence. Toward the end of the period, the price of oil eased and the
dollar strengthened, providing some relief to the outlook.
U.S. equities held up somewhat better over the 12 months than their
European and Japanese counterparts, although all three major developed
markets saw double digit percentage declines. From a sector perspective,
the strongest areas in the global equity markets were materials,
information technology and energy stocks, while the weakest returns were
among financial issues.
Q What strategies or holdings helped and hurt Fund performance over the
period?
A The Fund outperformed versus its benchmark over the 12 months, driven by a
combination of rewarding sector allocations and solid stock selection. In
particular, the Fund's overweighting of materials supported returns during
the period as the sector outperformed. The main portfolio contributors
within the sector were fertilizer manufacturers Yara and Agrium, both of
which benefited from an upswing in agricultural activity following higher
crop prices. Mining company Rio Tinto also contributed on the back of
expectations surrounding the proposed takeover by BHP Billiton. The Fund
was also significantly overweight information technology during the period,
helping performance. A strong contributor in the sector was Take-Two
Interactive, a software developer, whose shares rose sharply after computer
games manufacturer Electronic Arts made a bid for the company.
The Fund's underweighting of financials proved helpful during the period as
ongoing problems in the U.S. subprime mortgage market weighed on the
sector. However, within the sector our exposure to banks with subprime
exposure such as Citigroup and Societe Generale held back performance. Also
within financials, exposure to real estate-related issues Hong Kong-based
Henderson Land and Annaly Mortgage Management constrained performance for
the full period. The Fund was also underweight industrials during the
period, benefiting performance as the sector fared slightly worse than the
benchmark. In addition, the Fund's holdings of Flowserve, which produces
machinery used in crude oil refining, performed strongly during the period,
driven by better-than-expected results.
On the negative side of the ledger, the Fund's underweighting of energy
kept the Fund from fully realizing the positive impact of higher oil prices
on
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 5
companies in that sector. Poor stock selection within the consumer
discretionary sector, including exposure to Porsche and Adidas, held back
returns during the period as consumer confidence remained low. In addition,
the Fund's overweighting of pharmaceuticals detracted from returns during
the period. In particular, Bristol-Myers Squibb shares lost ground because
of the company's exposure to subprime-related securities. AstraZeneca
shares also faltered as problems arose with new drugs in the development
stages. Finally, the Fund was slightly overweight technology hardware
during the period, and the sector's weak performance as well as our stock
selection within it constrained performance to a degree.
Q What is your outlook and how is it reflected in the Fund's portfolio?
A We expect continued equity market volatility in the months ahead. On the
whole, we continue to view global equities as an attractive asset class,
although the outlook is more moderate than in previous years and the
potential risks are greater. The question remains as to what extent global
economic growth will be impacted by the ongoing issues in the United
States. The adjustment in housing and mortgage-related problems in the
financial sector are likely to remain headwinds for the U.S. economy for
some time, suggesting that below-trend growth may persist. On the positive
side, any continued moderation in the price of crude oil would help support
the major economies. In absolute terms, valuations remain a strong point
for global equities, which continue to trade at attractive levels versus
both government bond yields and long-term equity averages.
Going forward, we will remain focused on identifying individual stocks that
are reasonably priced and where we have high levels of conviction about the
share price upside.
Please refer to the Schedule of Investments on pages 15-19 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. Investments in mid-sized companies may offer the
potential for higher returns, but are also subject to greater short-term price
fluctuations than larger, more established companies. The Fund is
non-diversified and 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.
6 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
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 Global 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 IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 16.6%
Energy 13.0%
Information Technology 12.4%
Health Care 11.0%
Consumer Staples 10.9%
Industrials 10.8%
Materials 8.4%
Utilities 6.2%
Consumer Discretionary 6.0%
Telecommunication Services 4.7%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 52.6%
Japan 9.5%
United Kingdom 8.0%
France 7.7%
Germany 7.2%
Switzerland 3.5%
Canada 3.4%
Netherlands 1.9%
Spain 1.7%
Norway 1.7%
Greece 1.5%
Hong Kong 1.3%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Procter & Gamble Co. 3.92%
- --------------------------------------------------------------------------------
2. New York Community Bancorp, Inc. 3.49
- --------------------------------------------------------------------------------
3. Wal-Mart Stores, Inc. 3.35
- --------------------------------------------------------------------------------
4. 3M Co. 3.27
- --------------------------------------------------------------------------------
5. Cisco Systems, Inc. 3.25
- --------------------------------------------------------------------------------
6. Microsoft Corp. 3.20
- --------------------------------------------------------------------------------
7. Bristol-Myers Squibb Co. 2.98
- --------------------------------------------------------------------------------
8. United Technologies Corp. 2.91
- --------------------------------------------------------------------------------
9. Astrazeneca Plc 2.79
- --------------------------------------------------------------------------------
10. Southern Co. 2.77
- --------------------------------------------------------------------------------
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8 Pioneer Global 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 $ 10.42 $ 12.53
- ------------ ------- -------
B $ 10.28 $ 12.37
- ------------ ------- -------
C $ 10.26 $ 12.39
- ------------ ------- -------
Distributions per Share: 9/1/07-8/31/08
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ 0.1109 $ 0.2495 $ 0.5105
- ------------ -------- -------- --------
B $ -- $ 0.2495 $ 0.5105
- ------------ -------- -------- --------
C $ 0.0424 $ 0.2495 $ 0.5105
- ------------ -------- -------- --------
Pioneer Global 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 Global Select Equity Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) World
Index.
Average Annual Total Returns
(As of August 31, 2008)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 5.10% 2.82%
1 Year -10.68 -15.79
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
6.11% 1.30%
- --------------------------------------------------------------------------------
[THE FOLLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
Global
Select MSCI
Equity World
Fund Index
12/05 9,425 10,000
8/06 10,547 10,989
8/07 12,085 12,916
8/08 10,794 11,421
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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) World Index measures the
performance of stock markets in the developed world. 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 Global 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 Global Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of August 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 4.13% 3.09%
1 Year -11.46 -14.78
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
6.84% 2.20%
- --------------------------------------------------------------------------------
[THE FOLLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
Global
Select MSCI
Equity World
Fund Index
12/05 10,000 10,000
8/06 11,111 10,989
8/07 12,617 12,916
8/08 10,872 11,421
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus for details.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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) World Index measures the
performance of stock markets in the developed world. 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 Global 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 Global Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) World Index.
Average Annual Total Returns
(As of August 31, 2008)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
Life-of-Class
(12/15/05) 4.16% 4.16%
1 Year -11.47 -12.30
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- --------------------------------------------------------------------------------
Gross Net
- --------------------------------------------------------------------------------
6.70% 2.20%
- --------------------------------------------------------------------------------
[THE FOLLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
Global
Select MSCI
Equity World
Fund Index
12/05 10,000 10,000
8/06 11,111 10,989
8/07 12,628 12,916
8/08 11,179 11,421
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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 taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. 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 Global Select Equity Fund | Annual Report | 8/31/08
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments and
redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000 Example: an $8,600 account value
[divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global Select Equity Fund
Based on actual returns from March 1, 2008 through August 31, 2008.
Share Class A B C
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/08
- --------------------------------------------------------------------------------
Ending Account $ 910.13 $ 905.69 $ 906.33
Value on 8/31/08
- --------------------------------------------------------------------------------
Expenses Paid $ 6.24 $ 10.54 $ 10.54
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.30%, 2.20%
and 2.20% for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 184/366 (to
reflect the one half year period).
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 13
Comparing Ongoing Fund Expenses (continued)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Select Equity Fund
Based on a hypothetical 5% return before expenses, reflecting the period from
March 1, 2008 through August 31, 2008.
Share Class A B C
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/08
- --------------------------------------------------------------------------------
Ending Account $ 1,018.60 $ 1,014.08 $ 1,014.08
Value on 8/31/08
- --------------------------------------------------------------------------------
Expenses Paid $ 6.60 $ 11.14 $ 11.14
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.30%, 2.20%
and 2.20% for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 184/366 (to
reflect the one half year period).
14 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
Schedule of Investments | 8/31/08
Shares Value
COMMON STOCKS -- 95.7%
ENERGY -- 12.4%
Coal & Consumable Fuels -- 2.3%
1,602 Cameco Corp. $ 48,133
1,151 Peabody Energy Corp. 72,455
----------
$ 120,588
- -------------------------------------------------------------------------
Integrated Oil & Gas -- 8.1%
1,029 ConocoPhillips $ 84,903
1,349 Occidental Petroleum Corp. 107,057
2,810 Repsol SA 86,991
2,861 Royal Dutch Shell Plc 99,979
685 Total SA 49,236
----------
$ 428,166
- -------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 2.0%
6,427 El Paso Corp. $ 107,717
----------
Total Energy $ 656,471
- -------------------------------------------------------------------------
MATERIALS -- 8.0%
Diversified Chemical -- 1.4%
1,321 BASF AG $ 76,136
- -------------------------------------------------------------------------
Diversified Metals & Mining -- 1.3%
796 Freeport-McMoRan Copper & Gold, Inc. (Class B) $ 71,099
- -------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 3.0%
822 Agrium, Inc. $ 69,295
1,406 Yara International ASA 86,913
----------
$ 156,208
- -------------------------------------------------------------------------
Gold -- 2.3%
1,529 Goldcorp, Inc. $ 51,952
1,480 Newmont Mining Corp. 66,748
----------
$ 118,700
----------
Total Materials $ 422,143
- -------------------------------------------------------------------------
CAPITAL GOODS -- 10.4%
Aerospace & Defense -- 2.8%
2,243 United Technologies Corp. $ 147,118
- -------------------------------------------------------------------------
Construction & Engineering -- 1.0%
1,028 Shaw Group, Inc.* $ 50,927
- -------------------------------------------------------------------------
Industrial Conglomerates -- 5.0%
2,308 3M Co. $ 165,253
911 Siemens AG 99,089
----------
$ 264,342
- -------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 15
Schedule of Investments | 8/31/08 (continued)
Shares Value
Industrial Machinery -- 1.6%
628 Flowserve Corp. $ 82,971
----------
Total Capital Goods $ 545,358
- ------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.4%
Homebuilding -- 1.4%
12,000 Sekisui Chemical Co., Ltd.* $ 74,489
----------
Total Consumer Durables & Apparel $ 74,489
- ------------------------------------------------------------------
MEDIA -- 2.5%
Broadcasting -- 2.5%
4,755 Eutelsat Communications SA $ 131,882
----------
Total Media $ 131,882
- ------------------------------------------------------------------
RETAILING -- 1.9%
Apparel Retail -- 1.9%
1,893 Abercrombie & Fitch Co. $ 99,288
----------
Total Retailing $ 99,288
- ------------------------------------------------------------------
FOOD & DRUG RETAILING -- 4.9%
Hypermarkets & Supercenters -- 4.9%
1,725 Carrefour Supermarche SA $ 91,004
2,863 Wal-Mart Stores, Inc. 169,117
----------
$ 260,121
----------
Total Food & Drug Retailing $ 260,121
- ------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 1.7%
Packaged Foods & Meats -- 1.7%
3,324 Unilever NV $ 91,799
----------
Total Food, Beverage & Tobacco $ 91,799
- ------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 3.8%
Household Products -- 3.8%
2,839 Procter & Gamble Co.* $ 198,077
----------
Total Household & Personal Products $ 198,077
- ------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.4%
Health Care Equipment -- 1.4%
1,361 Medtronic, Inc. $ 74,311
----------
Total Health Care Equipment & Services $ 74,311
- ------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 9.1%
Pharmaceuticals -- 9.1%
2,901 Astrazeneca Plc $ 141,198
7,059 Bristol-Myers Squibb Co. 150,639
597 Roche Holdings AG 100,619
4,553 Schering-Plough Corp. 88,328
----------
$ 480,784
----------
Total Pharmaceuticals & Biotechnology $ 480,784
- ------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
Shares Value
BANKS -- 8.1%
Diversified Banks -- 4.8%
9,120 Royal Bank of Scotland Group Plc $ 39,151
1,186 Societe Generale 115,060
16 Sumitomo Mitsui Financial Group, Inc.* 97,362
----------
$ 251,573
- -------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 3.3%
10,718 New York Community Bancorp, Inc. $ 176,311
----------
Total Banks $ 427,884
- -------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.7%
Other Diversified Financial Services -- 1.7%
4,842 Citigroup, Inc. $ 91,950
----------
Total Diversified Financials $ 91,950
- -------------------------------------------------------------------------
INSURANCE -- 3.3%
Multi-Line Insurance -- 1.8%
557 Allianz AG $ 93,014
- -------------------------------------------------------------------------
Reinsurance -- 1.5%
1,264 Swiss Reinsurance, Ltd. $ 78,018
----------
Total Insurance $ 171,032
- -------------------------------------------------------------------------
REAL ESTATE -- 2.8%
Diversified Real Estate Activities -- 2.8%
11,000 Henderson Land Development Co., Ltd. $ 66,469
4,000 Mitsui Fudosan Co.* 83,839
----------
$ 150,308
----------
Total Real Estate $ 150,308
- -------------------------------------------------------------------------
SOFTWARE & SERVICES -- 3.1%
Systems Software -- 3.1%
5,927 Microsoft Corp. $ 161,748
----------
Total Software & Services $ 161,748
- -------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 7.0%
Communications Equipment -- 3.1%
6,839 Cisco Systems, Inc.* $ 164,478
- -------------------------------------------------------------------------
Computer Hardware -- 1.4%
443 Apple, Inc.* $ 75,102
- -------------------------------------------------------------------------
Office Electronics -- 2.5%
2,900 Canon, Inc.* $ 129,782
----------
Total Technology Hardware & Equipment $ 369,362
- -------------------------------------------------------------------------
SEMICONDUCTORS -- 1.8%
Semiconductor Equipment -- 1.8%
1,700 Tokyo Electron, Ltd.* $ 96,510
----------
Total Semiconductors $ 96,510
- -------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 17
Schedule of Investments | 8/31/08 (continued)
Shares Value
TELECOMMUNICATION SERVICES -- 4.5%
Wireless Telecommunication Services -- 4.5%
1,471 MTN Group, Ltd. $ 22,795
13,000 Sprint Nextel Corp. 113,360
49,150 Vodafone Group Plc 125,796
----------
$ 239,156
----------
Total Telecommunication Services $ 239,156
- ------------------------------------------------------------------------
UTILITIES -- 5.9%
Electric Utilities -- 5.9%
1,645 E.On AG* $ 95,927
3,015 Public Power Corp. 75,855
3,734 Southern Co. 140,061
----------
$ 311,843
----------
Total Utilities $ 311,843
- ------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $5,374,746) $5,077,311
- ------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0%
ENERGY -- 0.0%
Integrated Oil & Gas -- 0.0%
2,707 Royal Dutch Shell Rights, Expires 9/10/08* $ --
- ------------------------------------------------------------------------
TOTAL RIGHTS/WARRANTS
(Cost $0) $ --
- ------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 95.7%
(Cost $5,374,746)(a)(b) $5,077,311
- ------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 4.3% $ 203,539
- ------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $5,280,850
========================================================================
The accompanying notes are an integral part of these financial statements.
18 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
* Non-income producing security.
(a) At August 31, 2008, the net unrealized loss on investments based on cost
for federal income tax purposes of $5,590,897 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 143,186
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (656,772)
-----------
Net unrealized loss $ (513,586)
===========
(b) Distributions of investment by country of issue, as a percentage of total
investment in securities (excluding temporary cash investments), is as
follows:
United States 52.6%
Japan 9.5
United Kingdom 8.0
France 7.7
Germany 7.2
Switzerland 3.5
Canada 3.4
Netherlands 1.9
Spain 1.7
Norway 1.7
Greece 1.5
Hong Kong 1.3
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for
the year ended August 31, 2008 aggregated $8,362,404 and $6,746,813,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 19
Statement of Assets and Liabilities | 8/31/08
ASSETS:
Investment in securities (cost $5,374,746) $5,077,311
Cash 212,542
Receivables --
Fund shares sold 3,001
Dividends and foreign taxes withheld 11,766
Due from Pioneer Investment Management, Inc. 18,918
Other 6,277
- -----------------------------------------------------------------------------------
Total assets $5,329,815
- -----------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 140
Due to affiliates 2,318
Accrued expenses 46,507
- -----------------------------------------------------------------------------------
Total liabilities $ 48,965
- -----------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $5,869,398
Undistributed net investment income 58,580
Accumulated net realized loss on investments and foreign currency
transactions (349,235)
Net unrealized loss on investments (297,435)
Net unrealized loss on other assets and liabilities denominated in
foreign currencies (458)
- -----------------------------------------------------------------------------------
Total net assets $5,280,850
===================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $3,059,664/293,533 shares) $ 10.42
Class B (based on $1,403,070/136,467 shares) $ 10.28
Class C (based on $818,116/79,738 shares) $ 10.26
MAXIMUM OFFERING PRICE:
Class A ($10.42 [divided by] 94.25%) $ 11.06
===================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Global 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 $8,833) $ 127,164
Interest 9,228
Income from securities loaned, net 1,431
- ------------------------------------------------------------------------------------------------------
Total investment income $ 137,823
- ------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 39,714
Transfer agent fees and expenses
Class A 10,499
Class B 5,216
Class C 3,501
Distribution fees
Class A 6,688
Class B 14,929
Class C 8,098
Administrative fees 1,191
Custodian fees 44,937
Registration fees 34,828
Professional fees 42,828
Printing expense 26,402
Fees and expenses of nonaffiliated trustees 7,547
Miscellaneous 15,425
- ------------------------------------------------------------------------------------------------------
Total expenses $ 261,803
Less management fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (171,888)
Less fees paid indirectly (441)
- ------------------------------------------------------------------------------------------------------
Net expenses $ 89,474
- ------------------------------------------------------------------------------------------------------
Net investment income $ 48,349
- ------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (259,340)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies 18,769 $ (240,571)
- ------------------------------------------------------------------------------------------------------
Change in net unrealized loss on:
Investments $ (468,081)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (606) $ (468,687)
- ------------------------------------------------------------------------------------------------------
Net loss on investments and foreign currency transactions $ (709,258)
- ------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (660,909)
======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 21
Statement of Changes in Net Assets
For the Years Ended 8/31/08 and 8/31/07, respectively
Year Ended Year Ended
8/31/08 8/31/07
FROM OPERATIONS:
Net investment income $ 48,349 $ 20,348
Net realized gain (loss) on investments and foreign currency
transactions (240,571) 215,721
Change in net unrealized gain (loss) on investments and foreign
currency transactions (468,687) 86,766
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ (660,909) $ 322,835
- -----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.11 and $0.05 per share, respectively) $ (25,830) $ (6,410)
Class B ($0.00 and $0.01 per share, respectively) -- (608)
Class C ($0.04 and $0.00 per share, respectively) (2,959) --
Net realized gain:
Class A ($0.76 and $0.21 per share, respectively) (156,608) (22,527)
Class B ($0.76 and $0.21 per share, respectively) (89,951) (14,640)
Class C ($0.76 and $0.21 per share, respectively) (54,041) (8,901)
- -----------------------------------------------------------------------------------------------
Total distributions to shareowners $ (329,389) $ (53,086)
- -----------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $3,206,325 $3,298,932
Reinvestment of distributions 219,893 27,346
Cost of shares repurchased (1,697,361) (880,425)
- -----------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $1,728,857 $2,445,853
- -----------------------------------------------------------------------------------------------
Net increase in net assets $ 738,559 $2,715,602
NET ASSETS:
Beginning of year 4,542,291 1,826,689
- -----------------------------------------------------------------------------------------------
End of year $5,280,850 $4,542,291
- -----------------------------------------------------------------------------------------------
Undistributed net investment income $ 58,580 $ 20,292
- -----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
'08 Shares '08 Amount '07 Shares '07 Amount
Class A
Shares sold 155,742 $1,821,223 178,967 $2,193,127
Reinvestment of distributions 12,440 147,629 1,633 18,925
Less shares repurchased (79,044) (918,111) (50,627) (619,401)
- ------------------------------------------------------------------------------------------------
Net increase 89,138 $1,050,741 129,973 $1,592,651
================================================================================================
Class B
Shares sold 78,707 $ 935,715 64,811 $ 780,723
Reinvestment of distributions 4,397 51,111 568 6,507
Less shares repurchased (43,611) (501,438) (17,856) (210,349)
- ------------------------------------------------------------------------------------------------
Net increase 39,493 $ 485,388 47,523 $ 576,881
================================================================================================
Class C
Shares sold 39,001 $ 449,387 26,968 $ 325,082
Reinvestment of distributions 1,816 21,153 168 1,914
Less shares repurchased (24,043) (277,812) (4,276) (50,675)
- ------------------------------------------------------------------------------------------------
Net increase 16,774 $ 192,728 22,860 $ 276,321
================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 23
Financial Highlights
Year Ended Year Ended 12/15/05 (a)
8/31/08 8/31/07 to 8/31/06
Class A
Net asset value, beginning of period $ 12.53 $ 11.18 $ 10.00
- -------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.14 $ 0.08 $ 0.07
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (1.38) 1.53 1.11
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ (1.24) $ 1.61 $ 1.18
Distribution to shareowners:
Net investment income (0.11) (0.05) --
Net realized gain (0.76) (0.21) --
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.11) $ 1.35 $ 1.18
- -------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.42 $ 12.53 $ 11.18
=======================================================================================================
Total return* (10.68)% 14.58% 11.80%(b)
Ratio of net expenses to average net assets+ 1.31% 1.30% 1.30%**
Ratio of net investment income to average net assets+ 1.30% 1.05% 1.42%**
Portfolio turnover rate 137% 74% 35%(b)
Net assets, end of period (in thousands) $ 3,060 $ 2,562 $ 832
Ratios with no waiver of fees and assumption of
expenses by PIM and no reductions for fees
paid indirectly:
Net expenses 4.61% 6.11% 11.05%**
Net investment loss ( 2.00)% ( 3.76)% (8.33)%**
Ratios with waiver of fees by PIM and reductions for
fees paid indirectly:
Net expenses 1.30% 1.30% 1.30%**
Net investment income 1.31% 1.05% 1.42%**
=======================================================================================================
(a) Class A shares were first publicly offered on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
Year Ended Year Ended 12/15/05 (a)
8/31/08 8/31/07 to 8/31/06
Class B
Net asset value, beginning of period $ 12.37 $ 11.10 $ 10.00
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.03 $ 0.00(c) $ 0.03
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (1.36) 1.49 1.07
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ (1.33) $ 1.49 $ 1.10
Distribution to shareowners:
Net investment income -- (0.01) --
Net realized gain (0.76) (0.21) --
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.09) $ 1.27 $ 1.10
- -----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.28 $ 12.37 $ 11.10
===========================================================================================================
Total return* (11.46)% 13.55% 11.00%(b)
Ratio of net expenses to average net assets+ 2.21% 2.20% 2.20%**
Ratio of net investment income to average net assets+ 0.41% 0.12% 0.45%**
Portfolio turnover rate 137% 74% 35%(b)
Net assets, end of period (in thousands) $ 1,403 $ 1,200 $ 549
Ratios with no waiver of fees and assumption of
expenses by PIM and no reductions for fees paid
indirectly:
Net expenses 5.37% 6.84% 11.40%**
Net investment loss (2.75)% (4.52)% (8.75)%**
Ratios with waiver of fees by PIM and reductions for fees
paid indirectly:
Net expenses 2.20% 2.20% 2.20%**
Net investment income 0.42% 0.12% 0.45%**
===========================================================================================================
(a) Class B shares were first publicly offered on December 15, 2005.
(b) Not annualized.
(c) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 25
Financial Highlights (continued)
Year Ended Year Ended 12/15/05 (a)
8/31/08 8/31/07 to 8/31/06
Class C
Net asset value, beginning of period $ 12.39 $ 11.10 $ 10.00
- ---------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.03 $ 0.01 $ 0.03
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (1.36) 1.49 1.07
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ (1.33) $ 1.50 $ 1.10
Distribution to shareowners:
Net investment income (0.04) -- --
Net realized gain (0.76) (0.21) --
- ---------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.13) $ 1.29 $ 1.10
- ---------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.26 $ 12.39 $ 11.10
=========================================================================================================
Total return* (11.47)% 13.65% 11.00%(b)
Ratio of net expenses to average net assets+ 2.21% 2.20% 2.20%**
Ratio of net investment income to average net assets+ 0.35% 0.12% 0.45%**
Portfolio turnover rate 137% 74% 35%(b)
Net assets, end of period (in thousands) $ 818 $ 780 $ 445
Ratios with no waiver of fees and assumption of
expenses by PIM and no reductions for fees paid
indirectly:
Net expenses 5.45% 6.70% 10.98%**
Net investment income (loss) (2.89)% 4.38% (8.33)%**
Ratios with waiver of fees by PIM and reductions for fees
paid indirectly:
Net expenses 2.20% 2.20% 2.20%**
Net investment income 0.36% 0.12% 0.45%**
=========================================================================================================
(a) Class C shares were first publicly offered on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
Notes to Financial Statements | 8/31/08
1. Organization and Significant Accounting Policies
Pioneer Global Select Equity Fund (the Fund), is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory business trust
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Fund is non-diversified. The Fund was organized on
October 12, 2005, and commenced operations on December 15, 2005. The Fund's
investment objective is to seek long-term capital growth.
The Fund offers three classes of shares -- Class A, Class B and Class C shares.
Each class of shares represents an interest in the same portfolio of
investments of the Fund and has equal rights to voting, redemptions, dividends
and liquidation, except that each class of shares can bear different transfer
agent and distribution fees and has exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B and Class C
shareowners, respectively.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting periods. Actual results could differ from those estimates.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. 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:
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 27
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities are valued using the last sale
price on the principal exchange where they are traded. Securities that have
not traded on the date of valuation, or securities for which sale prices
are not generally reported, are valued using the mean between the last bid
and asked prices. Securities for which market quotations are not readily
available are valued at their fair values as determined by, or under the
direction of, the Board of Trustees. The Fund invests primarily in
securities of non-U.S. issuers. The principal exchanges and markets for
such securities have closing times prior to the close of the NYSE. However,
the value of these securities may be influenced by changes in global
markets occurring after the closing times of the local exchanges and
markets up to the time the Fund determines its net asset value.
Consequently, the Board of Trustees of the Fund has determined that the use
of daily fair valuations as provided by a pricing service is appropriate
for the Fund. The Fund may also take into consideration other significant
events in determining the fair value of these securities. Thus, the Fund's
securities valuations may differ from prices reported by the various local
exchanges and markets. 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 from foreign securities where the ex-dividend date may have
passed are recorded as soon as 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. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. All
tax returns filed thus far are open (subject to examination by tax
authorities).
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
28 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
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 $18,728 to increase
undistributed net investment income and $18,728 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 $133,084 of capital losses
recognized between November 1, 2007 and August 31, 2008 to its fiscal year
ending August 31, 2009.
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 $127,503 $53,086
Long-term capital gain 201,886 --
- --------------------------------------------------------------------------------
Total $329,389 $53,086
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2008:
2008
Distributable Earnings:
Undistributed ordinary income $ 58,580
Post-October loss deferred (133,084)
Unrealized depreciation (514,044)
- --------------------------------------------------------------------------------
Total $ (588,548)
================================================================================
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $1,770 in underwriting commissions on the sale of Class
A shares during the year ended August 31, 2008.
D. 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
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 29
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.
E. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the
time a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar. At August 31, 2008, the
Fund had no outstanding portfolio or settlement hedges.
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 the 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). 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).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution expense rates.
G. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent.
30 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
When entering into a loan, the Fund receives collateral, which is
maintained by the custodian and earns income in the form of negotiated
lenders' fees. The Fund also continues to receive interest or payments in
lieu of dividends on the securities loaned. Gain or loss on the fair value
of the loaned securities that may occur during the term of the loan will be
for the account of the Fund. The loans are secured by collateral which is
required to be at least 102%, at all times, of the fair value of the
securities loaned. The amount of the collateral is required to be adjusted
daily to reflect any price fluctuation in the value of the loaned
securities. The Fund has the right under the lending agreements to recover
the securities from the borrower on demand. The Fund invests cash
collateral in cash equivalent investments. Securities lending collateral is
managed by Credit Suisse.
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 0.75% of the Fund's average daily net assets up to
$500 million; 0.70% of the next $500 million and 0.65% of the excess over $1
billion. For the year ended August 31, 2008, the effective management fee (net
of waivers and/or assumption of expense) was equivalent to 0.75% of the Fund's
average net assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit
the Fund's expenses to 1.30%, 2.20% and 2.20% of the average daily net assets
attributable to Class A, Class B and Class C shares, respectively. These
expense limitations are in effect through January 1, 2011 for Class A and
through January 1, 2009 for Class B and Class C shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $331 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 $1,742 in transfer agent fees payable to PIMSS at August 31,
2008.
4. Distribution Plans and Service Plans
The Fund adopted a Plan of Distribution with respect to Class A, Class B and
Class C shares in accordance with Rule 12b-1 of the Investment Company Act of
1940. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 31
net assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund 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 $245 in distribution fees payable to PFD at August 31, 2008.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within 18 months of
purchase. Class B shares that are redeemed within five years of purchase are
subject to a CDSC at declining rates beginning at 4.00% based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00% 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 $930
were paid to PFD.
5. Expense Offsets 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 $441 under such arrangements.
6. New Pronouncements
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statement disclosures.
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.
32 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
Report of Independent Registered Public Accounting Firm
To the Trustees of Pioneer Series Trust V and
Shareholders of Pioneer Global Select Equity Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Global Select Equity Fund (the Fund) (one of the portfolios constituting
Pioneer Series Trust V), 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. 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 Global 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 Global Select Equity Fund | Annual Report | 8/31/08 33
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 27.91%.
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 59.52%, 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 (or, with respect to certain proposals, by shareholders
of Pioneer Series Trust V (the "Trust"), as noted below) follows:
Broker
For Withhold Abstain Non-Votes
Proposal 1 -- To elect Trustees*
John F. Cogan, Jr. 3,405,267.390 55,065.192 0.000 0.000
Daniel K. Kingsbury 3,405,267.390 55,065.192 0.000 0.000
David R. Bock 3,405,267.390 55,065.192 0.000 0.000
Mary K. Bush 3,405,267.390 55,065.192 0.000 0.000
Benjamin M. Friedman 3,405,267.390 52,896.409 2,168.783 0.000
Margaret B.W. Graham 3,405,267.390 55,065.192 0.000 0.000
Thomas J. Perna 3,405,267.390 55,065.192 0.000 0.000
Marguerite A. Piret 3,405,267.390 55,065.192 0.000 0.000
Stephen K. West 3,405,267.390 55,065.192 0.000 0.000
John Winthrop 3,405,267.390 55,065.192 0.000 0.000
Broker
For Against Abstain Non-Votes
Proposal 2 -- To approve an
amendment to the
Declaration of Trust* 2,342,477.355 299,534.822 36,093.405 782,227.000
Broker
For Against Abstain Non-Votes
Proposal 3A -- To approve
changes to the Fund's
fundamental investment
policy relating to borrowing
money 289,233.174 8,722.315 1.000 52,076.000
34 Pioneer Global 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 289,233.174 8,722.315 1.000 52,076.000
Proposal 3C -- To approve
changes to the Fund's
fundamental investment
policy relating to lending 289,233.174 8,722.315 1.000 52,076.000
Proposal 3D -- To approve
changes to the Fund's
fundamental investment
policy relating to issuing
senior securities 291,708.174 4,079.532 2,168.783 52,076.000
Proposal 3E -- To approve
changes to the Fund's
fundamental investment
policy relating to real estate 291,708.174 6,248.315 0.000 52,076.000
Proposal 3F -- To approve
changes to the Fund's
fundamental investment
policy relating to
commodities 289,233.174 6,248.315 2,475.000 52,076.000
Proposal 3G -- To approve
changes to the Fund's
fundamental investment
policy relating to
concentration 289,233.174 4,079.532 4,643.783 52,076.000
Proposal 3I -- To approve
the conversion of the Fund's
investment objective from
fundamental to non-
fundamental 291,708.174 6,248.315 0.000 52,076.000
Broker
For Against Abstain Non-Votes
Proposal 4 -- To approve an
Amended and Restated
Management Agreement
with PIM 291,871.706 3,916.000 2,168.783 52,076.000
* Proposals 1 and 2 were voted on and approved by all series of the Trust.
Results reported above reflect the combined votes of all series of the
Trust.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 35
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
36 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
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 noted that the
Fund commenced operations on December 15, 2005. They considered that the Fund's
annualized total return was in the third quintile of its Morningstar category
for the one year period ended June 30, 2007 and that the Fund's total return
for 2006 was in the second quintile of its Morningstar category. (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.) The Trustees concluded that the investment performance of the Fund
was satisfactory.
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
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 37
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 second 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 first quintile relative to its
Strategic Insight peer group. 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.
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.
38 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
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.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 39
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.
40 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
Interested Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
John F. Cogan, Jr. (82)* Chairman of the Board, Trustee since 2005.
Trustee and President Serves until a successor
trustee is elected or
earlier retirement or
removal.
- --------------------------------------------------------------------------------
Daniel K. Kingsbury (50)* Trustee and Executive Trustee since March
Vice President 2007. Serves until a
successor trustee is
elected or earlier retire-
ment or removal.
- --------------------------------------------------------------------------------
Interested Trustees
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
John F. Cogan, Jr. (82)* Deputy Chairman and a Director of Pioneer Global Asset Man- None
agement S.p.A. ("PGAM"); Non-Executive Chairman and a Direc-
tor 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 Dis-
tributor, 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)* Director, CEO and President of Pioneer Investment Management None
USA Inc. (since February 2007); Director and President 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); Direc-
tor of Pioneer Global Asset Management S.p.A. (since April
2007); Head of New Markets Division, Pioneer Global Asset Man-
agement 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.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 41
Independent Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
David R. Bock (64) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- --------------------------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- --------------------------------------------------------------------------------
Independent Trustees
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
David R. Bock (64) Executive Vice President and Chief Financial Officer, I-trax, Inc. Director of Enterprise Com-
(publicly traded health care services company) (2004 - 2007); munity Investment, Inc.
Partner, Federal City Capital Advisors (boutique merchant bank) (privately-held affordable
(1997 to 2004 and 2008 - present); and Executive Vice Presi- housing finance company);
dent and Chief Financial Officer, Pedestal Inc. (internet-based and Director of New York
mortgage trading company) (2000 - 2002) Mortgage Trust (publicly
traded mortgage REIT)
- ------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (60) President, Bush International, LLC (international financial advi- Director of Marriott Interna-
sory firm) tional, Inc., Director of Dis-
cover Financial Services
(credit card issuer and elec-
tronic payment services);
Director of Briggs & Stratton
Co. (engine manufacturer);
Director of UAL Corporation
(airline holding company)
Director of Mantech Interna-
tional Corporation (national
security, defense, and intel-
ligence technology firm);
and Member, Board of Gov-
ernors, Investment Company
Institute
- ------------------------------------------------------------------------------------------------------------------------
42 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
Position Held Length of Service
Name and Age with the Fund and Term of Office
Benjamin M. Friedman (64) Trustee Trustee since May, 2008.
Serves until a successor
trustee is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Margaret B.W. Graham (61) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Marguerite A. Piret (60) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Stephen K. West (79) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
Benjamin M. Friedman (64) Professor, Harvard University Trustee, Mellon Institutional
Funds Investment Trust and
Mellon Institutional Funds
Master Portfolio (oversees
17 portfolios in fund
complex)
- --------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (61) Founding Director, Vice-President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm); and Desautels Faculty of
Management, McGill University
- --------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Private investor (2004 - present); and Senior Executive Vice Director of Quadriserv Inc.
President, The Bank of New York (financial and securities ser- (technology products for
vices) (1986 - 2004) securities lending industry)
- --------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (60) President and Chief Executive Officer, Newbury, Piret & Company, Director of New America
Inc. (investment banking firm) High Income Fund, Inc.
(closed-end investment
company)
- --------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (79) Senior Counsel, Sullivan & Cromwell LLP (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end
investment company)
- --------------------------------------------------------------------------------------------------------------------------------
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 43
Fund Officers
Position Held Length of Service
Name and Age with the Fund and Term of Office
Dorothy E. Bourassa (60) Secretary Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Christopher J. Kelley (43) Assistant Secretary Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Mark E. Bradley (48) Treasurer Since March 2008.
Serves at the discretion
of the Board
- --------------------------------------------------------------------------------
Luis I. Presutti (43) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Gary Sullivan (50) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Fund Officers
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Dorothy E. Bourassa (60) Secretary of PIM-USA; Senior Vice President - Legal of Pioneer; None
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) Associate General Counsel of Pioneer since January 2008 and None
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) Vice President - Fund Accounting, Administration and Controller- None
ship 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 Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ----------------------------------------------------------------------------------------------------------------------
Gary Sullivan (50) Fund Accounting Manager - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ----------------------------------------------------------------------------------------------------------------------
44 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
Position Held Length of Service
Name and Age with the Fund and Term of Office
Katherine Kim Sullivan (34) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Teri W. Anderholm (49) Chief Compliance Since January 2007.
Officer Serves at the discretion
of the Board
- --------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Katherine Kim Sullivan (34) Fund Administration Manager - Fund Accounting, Administration None
and Controllership Services since June 2003 and Assistant Trea-
surer of all of the Pioneer Funds since September 2003; Assis-
tant 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 Officer of Pioneer since December 2006 and of None
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 Global Select Equity Fund | Annual Report | 8/31/08 45
This page for your notes.
46 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
This page for your notes.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 47
This page for your notes.
48 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
This page for your notes.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 49
This page for your notes.
50 Pioneer Global Select Equity Fund | Annual Report | 8/31/08
This page for your notes.
Pioneer Global Select Equity Fund | Annual Report | 8/31/08 51
This page for your notes.
52 Pioneer Global 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: www.pioneerinvestments.com
This report must be accompanied by a prospectus.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
Pioneer High Income Municipal Fund
Annual Report | August 31, 2008
Ticker Symbols:
Class A PIMAX
Class C HICMX
Class Y HIMYX
[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 13
Schedule of Investments 15
Financial Statements 20
Notes to Financial Statements 27
Report of Independent Registered Public Accounting Firm 32
Approval of Investment Advisory Agreement 35
Trustees, Officers and Service Providers 39
Pioneer High Income Municipal 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 High Income Municipal 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 High Income Municipal Fund | Annual Report | 8/31/08 3
Portfolio Management Discussion | 8/31/08
Over the 12 months ending August 31, 2008, municipal bond investors weathered
one of the most turbulent periods in history, as fallout from problems in the
subprime mortgage sector reverberated throughout the fixed-income markets. In
the following interview, portfolio manager Timothy Pynchon discusses the factors
that affected the municipal bond market and the Fund over the period.
Q How did the Fund perform during the 12-month period ended August 31, 2008?
A For the 12-month period ended August 31, 2008, Pioneer High Income
Municipal Fund's Class A shares produced a total return of -4.95% at net
asset value. For the same period, the Fund's benchmark, the Lehman Brothers
High Yield Municipal Bond Index returned -4.37%; and the average return of
the 104 funds in the Lipper High Yield Municipal Debt Funds category was
-3.14%. The Fund's Class A shares generated a 30-day SEC tax-free yield of
6.36%, based on the maximum income tax rate of 35%. On August 31, 2008, the
Fund's current yield was 6.48%, which translates into a taxable yield of
9.78%. At the end of the period, the Fund had 53 issues in 25 states. The
average credit quality of the portfolio was BBB-.
Q What was the investment environment like during the period?
A It was a challenging investment environment, as a confluence of events
caused municipal bonds to decline. Early in the period, the credit markets
began to feel the effects of the emerging problems in the subprime mortgage
market. In late 2007 and early 2008, investors began selling the lower
quality securities. Hedge funds were particularly large sellers, as they
unwound their municipal bond positions and flooded the market with hundreds
of millions of dollars of municipal debt, creating a huge supply/ demand
imbalance.
In the face of all this, in February, three of the largest bond insurers --
Financial Guarantee Insurance Company (FGIC), Municipal Bond Insurance
Association (MBIA), and Ambac Financial Group (AMBAC) -- fell into
financial distress because they had insured structured mortgage products
that were tied to defaulting subprime mortgages, causing all three insurers
to lose their AAA credit ratings.
At about the same time, investment banks refused to support auctions for
auction-rate securities, which are long-term bonds tied to short-term
interest rates that are set at weekly or monthly auctions. As a result,
investors saw the auction market and liquidity freeze up.
4 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
In this environment, investors sought quality above everything else and
fled to the Treasury market as a safe haven. The result was that municipal
bond yields rose above Treasury yields, even before reflecting the
tax-exempt effect. Investors could buy tax-exempt municipal bonds at nearly
a full percentage point more than Treasuries -- a situation that has been
relatively rare over the past three decades. During the month of February,
long-term AAA bonds were yielding 5.14% compared to Treasury bond yields of
4.40%, a ratio of 117%; 10-year municipal bonds were at 4.12% compared to
Treasuries at 3.51%, a ratio of 117%; five-year municipal yields were at
3.30% compared to Treasuries at 2.48%, a ratio of 133%. Eight months
earlier, these ratios had been: 30 years 87%, 10 years 81%, and 5 years
79%, respectively.
Rising bond yields pushed prices down; and as valuations became more
compelling, investors returned to the municipal bond market, which began to
recover in March. By the end of July, the average monthly ratios of the 10-
and 30-year AAA municipal bonds were 98% and 105%, respectively.
Q How did you manage the Fund in this environment?
A We did not make any big changes to the Fund's portfolio during the period.
The Fund was well diversified among sectors that are vital to the U.S.
economy. These included health care (32% of net assets), education (6% of
net assets), pollution control (3% of net assets), transportation (3% of
net assets), water and sewer (2% of net assets), housing (2% of net
assets). About 15% of the Fund's net assets were in tobacco bonds as of
August 31, 2008, which are backed by tobacco companies' payments to states
as part of the Master Settlement Agreement in which states agreed to drop
their lawsuits against tobacco companies in return for a series of
payments. Nearly all of the Fund's assets were invested in revenue bonds on
which the payment of interest and principal is derived from the revenues
generated by the particular asset the bond was issued to finance. Because
revenue bonds do not depend on the taxing power of the state, they tend to
hold their value when the economy is weak and revenues going into state
coffers may decline.
Q What affected performance during the period?
A As stated above, the Fund slightly underperformed its benchmark, the Lehman
Brothers High Yield Municipal Bond Index, during the period. The
performance of the Fund and its benchmark during the period reflect the
general turmoil in the municipal bond market and the flight to quality that
took place over the 12-month period, as market participants avoided the
riskiest investments and moved into Treasuries. The Fund's relatively long
duration in a volatile market also held back results. (Duration measures a
bond's price sensitivity to interest-rate changes. A shorter duration can
minimize a bond's price fluctuations.) As high-yield investors, we believe
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 5
the best potential for total return going forward is in the longer end of
the market; and, in the short term, we are willing to take on the slightly
more downside risk that comes from a longer duration, in anticipation of
bigger upside potential over the longer term. Airline bonds, which
accounted for about 5% of the Fund's total net assets at August 31, 2008,
were disappointing, as the airline industry suffered because of higher jet
fuel costs resulting from rising oil prices. Tobacco bonds during the
period also fell short of our expectations. The poor performance of tobacco
bonds resulted from concerns by some investors that a decline in smoking in
the United States would result in lower revenues for tobacco companies. We
disagree with this belief, and the tobacco bonds remain in the portfolio.
Q What is your outlook?
A We believe there is exceptional value in the municipal market and are
taking advantage of the higher yields and lower prices that municipals
provide. Longer-term municipal bonds currently offer higher tax-free yields
than A-rated taxable corporate bonds. As we look ahead, we believe
municipal bonds will continue to provide investors with a relatively high
level of tax-free income and the potential for price appreciation.
Please refer to the Schedule of Investments on pages 15-19 for a full listing of
Fund securities.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Fund may invest in securities of issuers that are
in default or that are in bankruptcy.
A portion of the income may be subject to state, federal, and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax. The fund
is not diversified, which means that it can invest a higher percentage of its
assets in any one issuer than a diversified fund. Being non-diversified may
magnify the fund's losses from adverse events affecting a particular issuer. By
investing primarily in municipal securities, the portfolio is more susceptible
to adverse economic, political or regulatory developments than is a portfolio
that invests more broadly. Investments in the Fund are subject to possible loss
due to financial failure of underlying securities and their inability to meet
their debt obligations.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise. Investments in the Fund are subject
to possible loss due to the financial failure of issuers of underlying
securities and their inability to meet their debt obligations. 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.
6 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
Past performance is not a 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 opinions should not be relied upon for any other purposes.
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 7
Portfolio Summary | 8/31/08
Portfolio Quality
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
AA 1.9%
BBB 15.9%
BB & Lower 82.2%
Maturity Distribution
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
1-3 Years 0.8%
3-6 Years 4.0%
6-8 Years 7.6%
8-10 Years 14.0%
10+ Years 73.6%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)*
1. Louisiana Local Government Environment, 6.75%, 11/1/32 4.15%
2. Massachusetts State Health, 6.5%, 1/15/38 3.94
3. Lancaster County Pennsylvania Hospital Authority Revenue, 6.5%, 7/1/40 3.46
4. Michigan Tobacco Settlement Finance, 6.0%, 6/1/48 3.45
5. Grand Island Nebraska Solid Waste, 7.0%, 6/1/23 3.34
6. Buckeye Ohio Tobacco Settlement, 6.5%, 6/1/47 3.32
7. Nassau County Industrial Development, 6.7%, 1/1/43 3.29
8. Liberty County Florida, 8.25%, 7/1/28 3.29
9. Huntsville-Redstone, 6.875%, 1/1/43 3.26
10. Pima County Arizona Development Authority, 7.0%, 1/1/38 3.13
* 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 High Income Municipal 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 $ 8.70 $ 9.72
- --------------------------------------
C $ 8.68 $ 9.71
- --------------------------------------
Y $ 8.63 $ 9.69
- --------------------------------------
Distributions per Share: 9/1/07-8/31/08
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ 0.5508 $ -- $ --
- ------------------------------------------------------
C $ 0.4647 $ -- $ --
- ------------------------------------------------------
Y $ 0.5445 $ -- $ --
- ------------------------------------------------------
Index Definitions
- --------------------------------------------------------------------------------
The Lehman Brothers High Yield Municipal Bond Index measures the performance of
the high-yield municipal bond market. 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.
The index defined here pertains to the "Value of $10,000 Investment" charts
shown on pages 10-12.
Pioneer High Income Municipal 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 in Pioneer High Income Municipal Fund at public offering price,
compared to that of the Lehman Brothers High Yield Municipal Bond Index.
Average Annual Total Returns
(As of August 31, 2008)
- -------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- -------------------------------------------------
Life-of-Class
(10/17/06) -1.92% -4.30%
1 Year -4.95 -9.24
- -------------------------------------------------
Expense Ratio*
(Per prospectus dated December 31, 2007)
- -------------------------------------------------
Gross Net
- -------------------------------------------------
1.77% 0.90%
- -------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer High Income Lehman Brothers High
Municipal Fund Yield Municipal Bond Index
10/06 9550 10000
9662 9734
8/08 9184 10143
* Some expenses are based on estimated amounts for the current fiscal year.
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 4.5% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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.
10 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
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 High Income Municipal Fund, compared to that of the
Lehman Brothers High Yield Municipal Bond Index.
Average Annual Total Returns
(As of August 31, 2008)
- -------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------
Life-of-Class
(10/17/06) -2.93% -2.93%
1 Year -5.94 -5.94
- -------------------------------------------------
Expense Ratio*
(Per prospectus dated December 31, 2007)
- -------------------------------------------------
Gross Net
- -------------------------------------------------
2.72% 1.80%
- -------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer High Income Lehman Brothers High
Municipal Fund Yield Municipal Bond Index
<s>
10/06 10000 10000
10026 9734
8/08 9430 10143
* Some expenses are based on estimated amounts for the current fiscal year.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation 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.
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 11
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 High Income Municipal Fund, compared to that of the
Lehman Brothers High Yield Municipal Bond Index.
Average Annual Total Returns
(As of August 31, 2008)
- -------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------
Life-of-Class
(10/17/06) -2.37% -2.37%
1 Year -5.45 -5.45
- -------------------------------------------------
Expense Ratio*
(Per prospectus dated December 31, 2007)
- -------------------------------------------------
Gross Net
- -------------------------------------------------
2.11% 2.11%
- -------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer High Income Lehman Brothers High
Municipal Fund Yield Municipal Bond Index
<s>
10/06 10000 10000
8/07 10081 9734
8/08 9532 10143
* Some expenses are based on estimated amounts for the current fiscal year.
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.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
12 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
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 High Income Municipal Fund
Based on actual returns from March 1, 2008 through August 31, 2008.
- --------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/08
- --------------------------------------------------------------------
Ending Account $ 1,026.53 $ 1,022.95 $ 1,026.27
Value on 8/31/08
- --------------------------------------------------------------------
Expenses Paid $ 4.58 $ 9.15 $ 5.04
During Period*
- --------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%
and 0.99% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/366 (to reflect the half year period).
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 13
Comparing Ongoing Fund Expenses (continued)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from March 1, 2008 through August 31, 2008.
- --------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------
Beginning Account Value $ 1,000.00 $ 1,000.00 $ 1,000.00
on 3/1/08
- --------------------------------------------------------------------------
Ending Account Value $ 1,020.61 $ 1,016.09 $ 1,020.16
on 8/31/08
- --------------------------------------------------------------------------
Expenses Paid $ 4.57 $ 9.12 $ 5.03
During Period*
- --------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%
and 0.99% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 184/366 (to
reflect the half year period).
14 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
Schedule of Investments | 8/31/08
- --------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount (unaudited) (unaudited) Value
- --------------------------------------------------------------------------------------------------
COLLATERALIZED DEBT OBLIGATION -- 1.9%
$ 1,175,000 12.00 NR/NR Non-Profit Preferred Funding, Various
States, Floating Rate Note, 9/15/37 $ 1,156,376
- --------------------------------------------------------------------------------------------------
TOTAL COLLATERALIZED
DEBT OBLIGATION
(Cost $1,172,200) $ 1,156,376
- --------------------------------------------------------------------------------------------------
MUNICIPAL BONDS -- 97.1%
Alabama -- 4.9%
1,250,000 NR/NR Huntsville-Redstone, 5.5%, 1/1/43 $ 992,513
2,000,000 NR/NR Huntsville-Redstone, 6.875%, 1/1/43 1,960,260
-----------
$ 2,952,773
- --------------------------------------------------------------------------------------------------
Arizona -- 3.1%
2,000,000 NR/NR Pima County Arizona Development
Authority, 7.0%, 1/1/38 $ 1,881,760
-----------
$ 1,881,760
- --------------------------------------------------------------------------------------------------
California -- 5.6%
1,500,000 BB+/NR California Statewide Communities
Development Authority, 7.25%, 10/1/38 $ 1,453,575
2,500,000 BBB/Baa3 Golden State Tobacco Security Corp.,
5.125%, 6/1/47 1,860,050
110,000 C/NR Valley Health Systems California
Certificates of Participation,
6.875%, 5/15/23 80,828
-----------
$ 3,394,453
- --------------------------------------------------------------------------------------------------
Colorado -- 4.0%
1,000,000 NR/NR Colorado Springs Colorado Urban
Development, 7.0%, 12/1/29 $ 937,060
2,000,000 NR/NR Madre Metropolitan District No. 2,
Colorado, 5.5%, 12/1/36 1,479,660
-----------
$ 2,416,720
- --------------------------------------------------------------------------------------------------
Connecticut -- 1.4%
1,000,000 BB+/Ba1 Manshantucket Pequot Tribe,
5.75%, 9/1/34 (144A) $ 860,810
-----------
$ 860,810
- --------------------------------------------------------------------------------------------------
Florida -- 8.5%
1,000,000 AA/NR Broward County Florida Housing,
6.75%, 10/1/45 $ 1,001,970
2,200,000 BB/NR Lee County Florida Industrial Development
Authority, 5.375%, 6/15/37 1,770,912
2,000,000 NR/NR Liberty County Florida, 8.25%, 7/1/28 1,977,540
475,000 NR/NR Madison County Florida Revenue,
6.0%, 7/1/25 435,675
-----------
$ 5,186,097
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 15
Schedule of Investments | 8/31/08 (continued)
- --------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount (unaudited) (unaudited) Value
- --------------------------------------------------------------------------------------------------
Georgia -- 2.5%
$ 2,000,000 NR/NR Fulton County Georgia Water & Sewer
Revenue, 5.125%, 7/1/42 $ 1,527,700
-----------
$ 1,527,700
- --------------------------------------------------------------------------------------------------
Iowa -- 1.6%
1,250,000 BBB/Baa3 Tobacco Settlement Authority of Iowa,
5.5%, 6/1/42 $ 974,750
-----------
$ 974,750
- --------------------------------------------------------------------------------------------------
Illinois -- 5.5%
500,000 NR/NR Illinois Finance Authority, 7.0%, 12/1/37 $ 482,480
1,500,000 NR/NR Illinois Finance Authority, 7.0%, 12/1/42 1,441,590
1,500,000 NR/NR Southwestern Illinois Development
Authority Revenue, 6.625%, 6/1/37 1,431,780
-----------
$ 3,355,850
- --------------------------------------------------------------------------------------------------
Louisiana -- 4.9%
2,550,000 BB+/Ba3 Louisiana Local Government Environment,
6.75%, 11/1/32 $ 2,496,195
475,000 NR/NR Louisiana Public Facilities Authority
Revenue, 6.25%, 10/1/11 464,602
-----------
$ 2,960,797
- --------------------------------------------------------------------------------------------------
Massachusetts -- 7.2%
2,000,000 NR/NR Massachusetts State Development
Finance Agency, 6.75%, 10/25/37 $ 1,876,880
2,500,000 NR/NR Massachusetts State Health,
6.5%, 1/15/38 2,368,575
140,000 7.11 NR/Aa3 Massachusetts State Housing, Floating
Rate Note, 12/1/45 (144A) 130,025
-----------
$ 4,375,480
- --------------------------------------------------------------------------------------------------
Michigan -- 7.3%
160,000 NR/NR Doctor Charles Drew Academy,
5.7%, 11/1/36 $ 107,910
1,450,000 NR/NR Michigan Public Educational Facilities
Authority Revenue, 5.875%, 6/1/37 1,244,260
1,000,000 BBB-/NR Michigan Public Educational Facilities
Authority Revenue, 6.5%, 9/1/37 987,150
2,500,000 BBB/NR Michigan Tobacco Settlement Finance,
6.0%, 6/1/48 2,076,075
-----------
$ 4,415,395
- --------------------------------------------------------------------------------------------------
Minnesota -- 2.0%
1,250,000 NR/NR Baytown Township Minnesota Lease
Revenue, 7.0%, 8/1/38 $ 1,239,075
-----------
$ 1,239,075
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
- --------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount (unaudited) (unaudited) Value
- --------------------------------------------------------------------------------------------------
Missouri -- 2.6%
$ 500,000 NR/Caa2 St. Louis Missouri Development Authority,
7.2%, 12/15/28 $ 457,295
1,260,000 NR/Caa2 St. Louis Missouri Industrial Development
Revenue, 7.25%, 12/15/35 1,140,161
-----------
$ 1,597,456
- --------------------------------------------------------------------------------------------------
Montana -- 2.3%
2,215,000 NR/NR Hardin Montana Tax Increment,
0.0%, 9/1/31 $ 1,419,018
-----------
$ 1,419,018
- --------------------------------------------------------------------------------------------------
Nebraska -- 3.3%
2,250,000 NR/NR Grand Island Nebraska Solid Waste,
7.0%, 6/1/23 $ 2,012,108
-----------
$ 2,012,108
- --------------------------------------------------------------------------------------------------
New Jersey -- 2.9%
2,500,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/41 $ 1,779,975
-----------
$ 1,779,975
- --------------------------------------------------------------------------------------------------
Nevada -- 0.2%
430,000 NR/NR Director State Nevada Department
Business, 7.375%, 1/1/40 $ 123,350
-----------
$ 123,350
- --------------------------------------------------------------------------------------------------
New York -- 4.8%
1,000,000 NR/NR Erie County New York, 6.0%, 11/15/36 $ 875,320
2,000,000 NR/NR Nassau County Industrial Development,
6.7%, 1/1/43 1,978,020
135,000 CCC+/Caa2 New York City, New York, Industrial,
6.9%, 8/1/24 75,604
-----------
$ 2,928,944
- --------------------------------------------------------------------------------------------------
Ohio -- 5.3%
2,250,000 BBB/Baa3 Buckeye Ohio Tobacco Settlement,
6.5%, 6/1/47 $ 2,001,173
1,315,000 NR/NR Tuscarawas County Ohio Hospital,
6.35%, 11/1/37 1,206,250
-----------
$ 3,207,423
- --------------------------------------------------------------------------------------------------
Oklahoma -- 1.8%
1,000,000 NR/NR Atoka County Oklahoma Healthcare,
6.625%, 10/1/37 $ 954,420
110,000 BB/NR Jackson County Oklahoma Memorial
Hospital, 7.3%, 8/1/15 110,510
-----------
$ 1,064,930
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 17
Schedule of Investments | 8/31/08 (continued)
- --------------------------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount (unaudited) (unaudited) Value
- --------------------------------------------------------------------------------------------------
Pennsylvania -- 5.6%
$ 1,500,000 BB/Ba3 Allegheny County Pennsylvania Hospital
Development Authority, 5.375%,
11/15/40 $ 1,046,955
350,000 NR/NR Delaware County Pennsylvania Industrial
Development, 9.0%, 8/1/31 (d) 268,384
2,100,000 NR/NR Lancaster County Pennsylvania Hospital
Authority Revenue, 6.5%, 7/1/40 2,080,238
-----------
$ 3,395,577
- --------------------------------------------------------------------------------------------------
Texas -- 9.0%
2,000,000 NR/NR Burnet County Texas Public,
7.75%, 8/1/29 $ 1,824,220
150,000 NR/NR Gulf Coast Waste Disposal Authority,
Texas Revenue, 7.0%, 12/1/36 122,376
2,000,000 B-/B3 Houston Texas Airport Revenue,
6.75%, 7/1/29 1,603,200
135,000 B-/B3 Houston Texas Airport Revenue,
5.7%, 7/15/29 92,885
220,000 B-/B3 Houston Texas Airport Revenue,
6.125%, 7/15/27 163,033
1,750,000 NR/NR Willacy County Texas Local Government,
6.875%, 9/1/28 1,657,635
-----------
$ 5,463,349
- --------------------------------------------------------------------------------------------------
Wisconsin -- 0.8%
600,000 NR/NR Aztalan Wisconsin Exempt Facilities
Revenue, 7.5%, 5/1/18 $ 501,438
- --------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(Cost $63,142,163) $59,035,228
- --------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.0%
(Cost $64,314,363)(a)(b) $60,191,604
- --------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.0% $ 582,051
- --------------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $60,773,655
- --------------------------------------------------------------------------------------------------
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At August
31, 2008, the value of these securities amounted to $990,835 or 1.6% of
total net assets.
The accompanying notes are an integral part of these financial statements.
18 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
(a) The concentration of investments by type of obligation/market sector is as
follows:
Revenue Bonds:
Health Revenue 32.0%
Special Revenue 14.5
Various Revenues 36.8
Transportation Revenue 3.2
Water & Sewer 2.5
Housing 1.9
Pollution Control Revenue 3.4
Education Revenue 5.7
- ---------------------------------------------------------
100.0%
=========================================================
(b) At August 31, 2008, the net unrealized loss on investments based on cost
for federal income tax purposes of $64,382,647 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 2,479
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (4,193,522)
-----------
Net unrealized loss $(4,191,043)
===========
(c) Debt obligation with a variable interest rate. Rate shown is rate at end of
period.
(d) Security is in default and is non-income producing.
NR Not rated.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2008 aggregated $67,717,806 and $25,295,723, respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 19
Statement of Assets and Liabilities | 8/31/08
ASSETS:
Investment in securities, at value
(cost $64,314,363) $60,191,604
Receivables --
Fund shares sold 179,297
Interest 1,052,271
Due from Pioneer Investment Management, Inc. 9,867
Other 7,581
- ---------------------------------------------------------------------
Total assets $61,440,620
- ---------------------------------------------------------------------
LIABILITIES:
Payables --
Dividends $ 239,830
Due to bank 359,105
Due to affiliates 8,330
Accrued expenses 59,700
- ---------------------------------------------------------------------
Total liabilities $ 666,965
- ---------------------------------------------------------------------
NET ASSETS:
Paid-in capital $66,992,205
Distributions in excess of net investment income (7,771)
Accumulated net realized loss on investments (2,088,020)
Net unrealized loss on investments (4,122,759)
- ---------------------------------------------------------------------
Total net assets $60,773,655
- ---------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $38,716,600/4,450,650 shares) $ 8.70
Class C (based on $20,915,160/2,409,710 shares) $ 8.68
Class Y (based on $1,141,895/132,307 shares) $ 8.63
MAXIMUM OFFERING PRICE:
Class A ($8.70 [divided by] 95.5%) $ 9.11
- ---------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
Statement of Operations
For the Year Ended 8/31/08
INVESTMENT INCOME:
Interest $ 2,920,925
- ----------------------------------------------------------------------------------------
EXPENSES:
Management fees $213,409
Transfer agent fees and expenses
Class A 14,084
Class C 6,852
Class Y 1,048
Distribution fees
Class A 66,864
Class C 146,277
Administrative fees 9,603
Custodian fees 18,440
Registration fees 44,637
Professional fees 59,006
Printing expense 25,506
Fees and expenses of nonaffiliated trustees 6,489
Miscellaneous 9,105
- ----------------------------------------------------------------------------------------
Total expenses $ 621,320
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (104,226)
Less fees paid indirectly (305)
- ----------------------------------------------------------------------------------------
Net expenses $ 516,789
- ----------------------------------------------------------------------------------------
Net investment income $ 2,404,136
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $ (1,465,155)
- ----------------------------------------------------------------------------------------
Change in net unrealized loss on investments $ (3,762,796)
- ----------------------------------------------------------------------------------------
Net loss on investments $ (5,227,951)
- ----------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (2,823,815)
- ----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 21
Statement of Changes in Net Assets
For the Year Ended 8/31/08 and the period from 10/17/06
(Commencement of Operations) to 8/31/07
- ----------------------------------------------------------------------------------------------------
Year Ended 10/17/06
8/31/08 to 8/31/07
- ----------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 2,404,136 $ 454,466
Net realized loss on investments (1,465,155) (625,733)
Change in net unrealized loss on investments (3,762,796) (359,963)
- ----------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(2,823,815) $ (531,230)
- ----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.55 and $0.43 per share, respectively) $(1,607,291) $ (295,762)
Class C ($0.46 and $0.35 per share, respectively) (749,539) (93,993)
Class Y ($0.54 and $0.43 per share, respectively) (76,353) (43,821)
- ----------------------------------------------------------------------------------------------------
Total distributions to shareowners $(2,433,183) $ (433,576)
- ----------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $58,866,137 $22,715,434
Reinvestment of distributions 535,691 46,713
Cost of shares repurchased (17,532,210) (636,306)
- ----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $41,869,618 $22,125,841
- ----------------------------------------------------------------------------------------------------
Net increase in net assets $36,612,620 $21,161,035
NET ASSETS:
Beginning of period (initial capitalization - 300,000 shares) $24,161,035 $ 3,000,000
- ----------------------------------------------------------------------------------------------------
End of period $60,773,655 $24,161,035
- ----------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income $ (7,771) $ 24,440
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
- ---------------------------------------------------------------------------------------------------
'08 Shares '08 Amount '07 Shares '07 Amount
- ---------------------------------------------------------------------------------------------------
Class A*
Shares sold 4,244,251 $39,040,701 1,665,425 $16,880,297
Reinvestment of distributions 41,506 374,315 3,627 36,350
Less shares repurchased (1,546,087) (14,057,963) (58,072) (581,249)
- ---------------------------------------------------------------------------------------------------
Net increase 2,739,670 $25,357,053 1,610,980 $16,335,398
===================================================================================================
Class C*
Shares sold 2,096,536 $19,490,543 568,175 $ 5,720,137
Reinvestment of distributions 15,570 139,860 970 9,698
Less shares repurchased (365,945) (3,329,926) (5,596) (55,057)
- ---------------------------------------------------------------------------------------------------
Net increase 1,746,161 $16,300,477 563,549 $ 5,674,778
===================================================================================================
Class Y*
Shares sold 34,762 $ 334,893 11,386 $ 115,000
Reinvestment of distributions 2,374 21,516 68 665
Less shares repurchased (16,283) (144,321) -- --
- ---------------------------------------------------------------------------------------------------
Net increase 20,853 $ 212,088 11,454 $ 115,665
===================================================================================================
* Class A, C and Y shares were first publicly offered on October 17, 2006.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 23
Financial Highlights
- ------------------------------------------------------------------------------------------
Year
Ended 10/17/06 (a)
8/31/08 to 8/31/07
- ------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 9.72 $ 10.00
- ------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.54 $ 0.44
Net realized and unrealized loss on investments (1.01) (0.29)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (0.47) $ 0.15
Distributions to shareowners:
Net investment income (0.55) (0.43)
- ------------------------------------------------------------------------------------------
Net decrease in net asset value $ (1.02) $ (0.28)
- ------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.70 $ 9.72
==========================================================================================
Total return* (4.95)% 1.45%***
Ratio of net expenses to average net assets+ 0.90% 0.90%**
Ratio of net investment income to average net assets+ 5.92% 5.31%**
Portfolio turnover rate 59% 130%***
Net assets, end of period (in thousands) $38,717 $ 16,637
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly
Net expenses 1.21% 1.77%**
Net investment income 5.61% 4.44%**
Ratios with waiver of management fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.90% 0.90%**
Net investment income 5.92% 5.31%**
==========================================================================================
(a) Class A shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
24 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
- ------------------------------------------------------------------------------------------
Year
Ended 10/17/06 (a)
8/31/08 to 8/31/07
- ------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 9.71 $ 10.00
- ------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.46 $ 0.36
Net realized and unrealized loss on investments (1.03) (0.30)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (0.57) $ 0.06
Distributions to shareowners:
Net investment income (0.46) (0.35)
- ------------------------------------------------------------------------------------------
Net decrease in net asset value $ (1.03) $ (0.29)
- ------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.68 $ 9.71
==========================================================================================
Total return* (5.94)% 0.56%***
Ratio of net expenses to average net assets+ 1.80% 1.80%**
Ratio of net investment income to average net assets+ 5.11% 4.35%**
Portfolio turnover rate 59% 130%***
Net assets, end of period (in thousands) $20,915 $ 6,445
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly
Net expenses 1.95% 2.72%**
Net investment income 4.96% 3.43%**
Ratios with waiver of management fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.80% 1.80%**
Net investment income 5.11% 4.35%**
==========================================================================================
(a) Class C shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 25
Financial Highlights (continued)
- ------------------------------------------------------------------------------------------
Year
Ended 10/17/06 (a)
8/31/08 to 8/31/07
- ------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 9.69 $ 10.00
- ------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.53 $ 0.42
Net realized and unrealized loss on investments (1.05) (0.30)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (0.52) $ 0.12
Distributions to shareowners:
Net investment income (0.54) (0.43)
- ------------------------------------------------------------------------------------------
Net decrease in net asset value $ (1.06) $ (0.31)
- ------------------------------------------------------------------------------------------
Net asset value, end of period $ 8.63 $ 9.69
==========================================================================================
Total return* (5.45)% 1.12%***
Ratio of net expenses to average net assets+ 1.00% 1.23%**
Ratio of net investment income to average net assets+ 5.80% 4.70%**
Portfolio turnover rate 59% 130%***
Net assets, end of period (in thousands) $ 1,142 $ 1,080
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly
Net expenses 1.00% 2.11%**
Net investment income 5.80% 3.82%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 0.99% 1.23%**
Net investment income 5.81% 4.70%**
==========================================================================================
(a) Class Y shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
*** Not Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
Notes to Financial Statements | 8/31/08
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust registered under
the Investment Company Act of 1940 as an open-end management investment company.
The Fund is non-diversified. The Fund commenced operations on October 17, 2006.
The investment objective of the Fund is to maximize total return through a
combination of income that is exempt from regular federal income tax and capital
appreciation.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has equal rights to voting,
redemptions, dividends and liquidations, except that each class of shares can
bear different transfer agent and distribution fees and has exclusive voting
rights with respect to the distribution plan that has been adopted by Class A
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
income, expenses, and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. 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. Securities
are valued at prices supplied by independent pricing services, which
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 27
consider such factors as Treasury spreads, yields, maturities and ratings.
Valuations may be supplemented by dealers and other sources, as required.
Securities for which there are no other readily available market quotations
are valued at their fair values as determined by, or under the direction of
the Board of Trustees. At August 31, 2008, there were no securities fair
valued. Temporary cash investments are valued at cost which approximates
market value.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with
a corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income, exempt interest income, and net realized capital
gains, if any, to its shareowners. Therefore, no federal tax provision is
required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as 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 had a net capital loss carryforward of
$667,588 which will expire in 2016 if not utilized.
The Fund has elected to defer approximately $1,420,432 of capital losses
recognized between November 1, 2007 and August 31, 2008 to its fiscal year
ending August 31, 2009.
At August 31, 2008, the Fund has reclassified $3,164 to increase
distributions in excess of net investment income and $3,164 to decrease
accumulated net realized loss on investments, to reflect permanent book/tax
differences. The reclassification has no impact on the net assets of the
Fund and presents the Fund's capital accounts on a tax basis.
28 Pioneer High Income Municipal 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:
Tax-exempt income $2,433,183 $433,538
Ordinary income -- 38
--------------------------------------------------------
Total $2,433,183 $433,576
========================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2008:
------------------------------------------------------------
2008
------------------------------------------------------------
Distributable earnings:
Undistributed tax-exempt income $ 300,343
Capital loss carryforward (667,588)
Current year dividend payable (239,830)
Current year post-October loss deferral (1,420,432)
Unrealized depreciation (4,191,043)
------------------------------------------------------------
Total $ (6,218,550)
============================================================
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax basis adjustments on partnerships, the tax
treatment of premium and amortization and interest on defaulted bonds.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.,
(UniCredit), earned $37,369 in underwriting commissions on the sale of
Class A shares during the year ended August 31, 2008.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the 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 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 High Income Municipal Fund | Annual Report | 8/31/08 29
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. 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 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 0.50% of the Fund's average daily net assets up to $500
million; 0.475% of the next $500 million; and 0.45% of the excess over $1
billion. For the year ended August 31, 2008, the effective management fee (net
of waivers and/or assumption of expenses) was equivalent to 0.50% of the Fund's
average net assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses (excluding taxes, commissions, interest and
extraordinary expenses) of the Fund to the extent necessary to limit expenses to
0.90% and 1.80% of the average daily net assets attributable to Class A shares
and Class C shares, respectively. The Class A limitation is in effect through
January 1, 2011 and the Class C limitation is in effect through January 1, 2009.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. Included in "Due to Affiliates" reflected on the
Statement of Assets and Liabilities is $2,600 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 shareholder services to the Fund at negotiated rates.
Included in "Due to Affiliates" reflected in the Statement of Assets and
Liabilities is $3,229 in transfer agent fees payable from PIMSS at August 31,
2008.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan
and Class C Plan) in accordance with Rule 12b-1 of the Investment Company Act of
1940. Effective February 1, 2008, under the Class A Plan, the Fund pays PFD a
service fee equal to 0.25% of the average daily net assets attributable to Class
A shares to finance activities primarily intended to result in the sale of Class
A shares. Prior to February 1, 2008, PFD was reimbursed for service fees
30 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
in an amount up to 0.25% of the average daily net assets attributable to Class A
shares. Pursuant to the Class C Plan, the Fund pays PFD 1.00% of the average
daily net assets attributable to 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 C shares. Included in "Due to Affiliates" reflected on the
Statement of Assets and Liabilities is $2,501 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. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to
PFD. There is no CDSC for Class Y shares. For the year ended August 31, 2008,
CDSCs in the amount of $16,888 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended August 31, 2008, the Fund's expenses were
reduced by $305 under such arrangements.
6. New Pronouncements
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of SFAS
157 will have on the Fund's financial statement disclosures.
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.
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 31
Report of Independent Registered Public Accounting Firm
To the Trustees of Pioneer Series Trust V and
Shareholders of Pioneer High Income Municipal Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
High Income Municipal Fund (the Fund) (one of the portfolios constituting
Pioneer Series Trust V), including the schedule of investments, as of August 31,
2008, and the related statement of operations for the year then ended, the
statement 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 audit.
We conducted our audit 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. We believe that our audit provides 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 High Income Municipal 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
32 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
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 (or, with respect to certain proposals, by shareholders
of Pioneer Series Trust V (the "Trust"), as noted below) follows:
- ---------------------------------------------------------------------------------------
Broker
For Withhold Abstain Non-Votes
- ---------------------------------------------------------------------------------------
Proposal 1 -- To elect Trustees*
John F. Cogan, Jr. 3,405,267.390 55,065.192 0 0
Daniel K. Kingsbury 3,405,267.390 55,065.192 0 0
David R. Bock 3,405,267.390 55,065.192 0 0
Mary K. Bush 3,405,267.390 55,065.192 0 0
Benjamin M. Friedman 3,405,267.390 52,896.409 2,168.783 0
Margaret B.W. Graham 3,405,267.390 55,065.192 0 0
Thomas J. Perna 3,405,267.390 55,065.192 0 0
Marguerite A. Piret 3,405,267.390 55,065.192 0 0
Stephen K. West 3,405,267.390 55,065.192 0 0
John Winthrop 3,405,267.390 55,065.192 0 0
- -----------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- -----------------------------------------------------------------------------------------
Proposal 2 - To approve an
amendment to the
Declaration of Trust* 2,342,477.355 299,534.822 36,093.405 782,227.000
- ---------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ---------------------------------------------------------------------------------------------
Proposal 3A - To approve
changes to the Fund's
fundamental investment
policy relating to borrowing
money 1,943,877.725 77,337.000 37,429.936 637,171.000
Proposal 3B - To approve
changes to the Fund's
fundamental investment
policy relating to
underwriting 1,948,375.720 74,295.000 35,973.941 637,171.000
Proposal 3C - To approve
changes to the Fund's
fundamental investment
policy relating to lending 1,948,375.720 74,295.000 35,973.941 637,171.000
Proposal 3D - To approve
changes to the Fund's
fundamental investment
policy relating to issuing
senior securities 1,954,705.720 67,965.000 35,973.941 637,171.000
Proposal 3E - To approve
changes to the Fund's
fundamental investment
policy relating to real estate 1,931,167.720 74,305.000 53,171.941 637,171.000
Pioneer High Income Municipal Fund | Annual Report | 8/31/08
33
- ---------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ---------------------------------------------------------------------------------------------
Proposal 3F - To approve
changes to the Fund's
fundamental investment
policy relating to
commodities 1,952,063.720 70,607.000 35,973.941 637,171.000
Proposal 3G - To approve
changes to the Fund's
fundamental investment
policy relating to
concentration 1,954,705.720 67,965.000 35,973.941 637,171.000
Proposal 3I - To approve
the conversion of the Fund's
investment objective from
fundamental to non-
fundamental 1,813,507.725 185,641.000 59,495.936 637,171.000
- --------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- --------------------------------------------------------------------------------------
Proposal 4 - To approve
an Amended and Restated
Management Agreement
with PIM 1,941,234.720 47,737.000 69,672.941 637,171.000
* Proposals 1 and 2 were voted on and approved by all series of the Trust.
Results reported above reflect the combined votes of all series of the
Trust.
34 Pioneer High Income Municipal 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 High Income Municipal Fund | Annual Report | 8/31/08 35
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 noted that the Fund
commenced operations on October 16, 2006. They considered that the Fund's
performance for the period from January 1, 2007 through June 30, 2007 was in the
third quintile of its Morningstar category. (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.) The Trustees concluded
that the investment performance of the Fund was satisfactory.
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 ratios of a peer group of
funds selected on the basis of criteria determined by
36 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
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 first quintile relative to its
Strategic Insight peer group. 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.
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.
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 37
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.
38 Pioneer High Income Municipal 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 High Income Municipal Fund | Annual Report | 8/31/08 39
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 2005. Deputy Chairman and a Director None
Trustee and President Serves until a successor of Pioneer Global Asset
trustee is elected or Management S.p.A. ("PGAM");
earlier retirement Non-Executive Chairman and a
or 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 Investment
Management (Bermuda) Limited
and affiliated funds; Director
of PIOGLOBAL Real Estate
Investment Fund (Russia) (until
June 2006); Director of Nano-C,
Inc. (since 2003); Director of
Cole Management Inc. (since
2004); Director of Fiduciary
Counseling, Inc.; President and
Director of Pioneer Funds
Distributor, Inc. ("PFD")
(until May 2006); President of
all of the Pioneer Funds; and
Of Counsel, Wilmer Cutler
Pickering Hale and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (50)* Trustee and Executive Trustee since March Director, CEO and President of None
Vice President 2007. Serves until a Pioneer Investment Management
successor trustee is USA Inc. (since February 2007);
elected or earlier Director and President of
retirement or removal. 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.
40 Pioneer High Income Municipal 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 2005. Executive Vice President and Director of Enterprise
Serves until a successor Chief Financial Officer, Community Investment, Inc.
trustee is elected or I-trax, Inc. (publicly traded (privately-held affordable
earlier retirement health care services company) housing finance company);
or removal. (2004 - 2007); Partner, and Director of New York
Federal City Capital Advisors Mortgage Trust (publicly
(boutique merchant bank) traded mortgage REIT)
(1997 to 2004 and 2008 -
present); and Executive Vice
President and Chief Financial
Officer, Pedestal Inc.
(internet-based mortgage
trading company) (2000 -
2002)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 2005. President, Bush Director of Marriott
Serves until a successor International, LLC International, Inc.,
trustee is elected or (international financial Director of Discover
earlier retirement advisory firm) Financial Services (credit
or removal. 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 High Income Municipal Fund | Annual Report | 8/31/08 41
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 Funds
retirement or removal. Master Portfolio (oversees
17 portfolios in fund
complex)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (61) Trustee Trustee since 2005. Founding Director, None
Serves until a successor Vice-President and Corporate
trustee is elected or Secretary, The Winthrop
earlier retirement Group, Inc. (consulting
or removal. firm); and Desautels Faculty
of Management, McGill
University
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2006. Private investor (2004 - Director of Quadriserv
Serves until a successor present); and Senior Inc. (technology products
trustee is elected or Executive Vice President, The for securities lending
earlier retirement Bank of New York (financial industry)
or removal. and securities services)
(1986 - 2004)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (60) Trustee Trustee since 2005. President and Chief Executive Director of New America
Serves until a successor Officer, Newbury, Piret & High Income Fund, Inc.
trustee is elected or Company, Inc. (investment (closed-end investment
earlier retirement banking firm) company)
or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (79) Trustee Trustee since 2005. Senior Counsel, Sullivan & Director, The Swiss
Serves until a successor Cromwell LLP (law firm) Helvetia Fund, Inc.
trustee is elected or (closed-end investment
earlier retirement company)
or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
42 Pioneer High Income Municipal Fund | Annual Report | 8/31/08
Fund Officers
- ------------------------------------------------------------------------------------------------------------------------------------
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 Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (60) Secretary Since 2005. Serves Secretary of PIM-USA; Senior None
at the discretion of Vice President - Legal of
the 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 Assistant Since 2005. Serves Associate General Counsel of None
(43) Secretary at the discretion of Pioneer since January 2008 and
the 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 March 2008. Vice President - Fund None
Serves at the discretion Accounting, Administration and
of the 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 Since 2005. Serves Assistant Vice President - None
Treasurer at the discretion of Fund Accounting,
the Board. Administration and
Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (50) Assistant Since 2005. Serves Fund Accounting Manager - Fund None
Treasurer at the discretion of Accounting, Administration and
the Board. Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer High Income Municipal Fund | Annual Report | 8/31/08 43
Fund Officers (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 Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan Assistant Since 2005. Serves Fund Administration Manager - None
(34) Treasurer at the discretion of Fund Accounting,
the 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 2007. 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)
- ------------------------------------------------------------------------------------------------------------------------------------
44 Pioneer High Income Municipal 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.
- --------------------------------------------------------------------------------
Pioneer Oak Ridge
All Cap Growth Fund
- --------------------------------------------------------------------------------
Annual Report | August 31, 2008
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A ORACX
Class C ORCCX
Class Y ORAYX
[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 13
Schedule of Investments 15
Financial Statements 21
Notes to Financial Statements 27
Report of Independent Registered Public Accounting Firm 32
Approval of Investment Advisory Agreement 35
Trustees, Officers and Service Providers 39
Pioneer Oak Ridge All Cap Growth 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 Oak Ridge All Cap Growth 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 Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 3
Portfolio Management Discussion | 8/31/08
In the following interview, Robert McVicker, Pioneer Oak Ridge All Cap Growth
Fund's lead portfolio manager, discusses the factors that influenced
performance during the annual period ended August 31, 2008.
Q How did the U.S. stock market perform during the past year ended August 31,
2008, and how did this affect the Fund?
A A litany of negative factors combined to dampen investor sentiment during the
past year, leading to very poor performance for the U.S. stock market. The
leading cause of the downturn was the ongoing fallout from the housing
crisis, which led to a freezing of the credit markets and widespread
concerns about the health of financial institutions' balance sheets. Stocks
were also pressured by slowing economic growth and rising inflation, the
combination of which pinched corporate profit margins and dampened the
earnings outlook for U.S. companies. In this environment, financial, real
estate, and consumer shares all performed poorly. At the same time, stocks
with the greatest exposure to rising prices for oil and other commodities
-- most notably those in the energy and materials sectors -- generally
outperformed.
In a reflection of the challenging market conditions, the Class A shares of
the Fund returned -7.15% at net asset value during the 12-month period
ended August 31, 2008, trailing the -6.56% return of its benchmark, the
Russell 3000 Growth Index (the Russell Index), over the same period.
Although the Fund underperformed in the short term, we believe it is well-
positioned for the environment we see unfolding in the months ahead. This
is discussed in greater detail below.
Q Where did the Fund deliver the best performance over the 12 months ended
August 31, 2008?
A Although the Fund underperformed, there were a number of areas in which we
added substantial value to its portfolio. Foremost among these areas was
the energy sector, a group that surged during the first nine months of the
period, only to endure a significant correction thereafter. Still, the
Fund's positions in Southwestern Energy, XTO Energy, and the energy
services company Schlumberger, all made contributions to the Fund's
performance during the full period.
Despite the downturn in energy near the end of the 12-month period, we
remain positive on the longer-term outlook for the sector. As the economies
of the developing world mature, the demand for energy continues to increase
at a faster rate than the growth in available supply. The result, in
4 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
our view, is that the recent correction in the energy sector has created
bargains for those with a long-term investment horizon. For example, we
increased the Fund's position of shares in Schlumberger when it fell about
20% off its 2008 high. Energy companies have been buying up land at a rapid
pace in recent years, and the need to explore and drill these properties,
in our opinion, should lead to a steady increase in the demand for the
types of services provided by Schlumberger. We also used the downturn in
energy stocks to initiate a small position for the Fund in Petrohawk
Energy, a smaller exploration and production company whose shares fell to
the $27 range in mid-August, after trading at near $55 a month earlier. We
believe Petrohawk's properties in the Haynesville Shale area of
northwestern Louisiana have tremendous upside potential. Thus, the sharp
sell-off in the stock's price presented an attractive opportunity for us to
establish a position for the Fund.
Overall, we have been focusing on companies that we believe have favorable
prospects for superior growth in earnings, production, and proven reserves.
We believe this puts the Fund in a strong position to outperform the energy
sector over the longer term, regardless of shorter-term fluctuations in the
price of oil and natural gas.
Q In what other sectors did you add value to the Fund's portfolio during the
12-month period?
A We are pleased to report that at a time when financial stocks registered
exceptionally poor performance, the Fund avoided the worst of the downturn
because of management's decision to avoid investments in bank and brokerage
stocks. Our approach has been to focus the Fund's resources on the "haves"
in the sector -- companies with stable earnings, strong balance sheets, and
no exposure to the mortgage crisis -- and to avoid the "have-nots." This
strategy led us to invest the Fund in companies such as Charles Schwab and
Affiliated Managers Group, both of which benefit from recurring fee income
and have maintained their financial strength throughout the turmoil of the
past year.
The Fund's underweight in the materials sector also added value as the
fiscal year progressed. During the first half of the period, the Fund's
performance was hurt by the fact that the portfolio did not own any of the
cyclical materials companies that were among the market's leaders, such as
those in the steel, coal, and farming sectors. Such companies tend to have
volatile earnings results, which does not fit our preference for stable
growers. Once these stocks began to correct during the second half of the
period, the Fund's lack of investment in this area became a positive factor
in its performance.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 5
Finally, we added value to the Fund during the period in the health care
sector, via an emphasis on biotechnology stocks and a corresponding
underweight in large pharmaceutical companies. The latter group is beset by
drug patent expirations and weak pipelines of new drugs, reducing the
reliability of earnings. The opposite is true in biotech, yet many stocks
have traded at extremely attractive valuation levels in recent years. This
led us to invest the Fund in biotech stocks such as Genentech, Celgene, and
Gilead Sciences, all of which performed well during the past year.
Q What were some areas in which the Fund underperformed during the 12-month
period?
A The Fund's worst area was the consumer discretionary sector, the segment of
the market most affected by consumers' need to reduce spending at a time of
slower economic growth and rising prices for staples such as food and
gasoline. The Fund's two worst performers included one of its long-term
winners, Marriott, as well as a newer holding, Abercrombie & Fitch.
Marriott was hurt as both consumers and businesses cut back on travel at a
time when rising fuel costs have made travelling a more expensive
proposition. Abercrombie, meanwhile, was a stock added to the portfolio
earlier in 2008 based on the company's strong earnings growth, capable
management, and exposure to the typically recession-resistant teen
demographic. The stock has proven less resilient than we expected, however,
due to higher than expected expenditures and disappointing same-store sales
results. Believing that our original investment thesis was no longer valid,
we elected to sell the position from the Fund.
The technology sector was also a source of underperformance for the Fund.
Here, investor fears about slowing economic growth caused a number of
large-cap tech stocks to lose substantial ground, despite their solid
fundamentals. Most notable among that group were Google, Apple, Microsoft,
Intel, Hewlett Packard, and Cisco Systems. We believed all of these classic
growth leaders represented compelling investments at the time we added them
to the Fund, and we think this remains all the more true following their
poor performance so far in 2008. In fact, Microsoft, Intel, Cisco and
Hewlett Packard have been trading at less than the market price-to-earnings
(P/E) ratio despite their superior earnings prospects.
Q What is your broader view on the U.S. stock market?
A We don't believe in market timing. Rather, we believe it is impossible to
predict consistently the direction of the stock market. Throughout history,
and on several occasions this year, many apparent market bottoms have
instead turned into trap doors. Nevertheless, we feel the market will
eventually bottom and stocks will be poised to move higher. While stocks
may remain under near-term pressure due to the uncertainty regarding
economic growth and the health of financial companies, the downturn of the
past year
6 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
has created a wealth of opportunities for long-term investors. In fact,
many quality growth stocks have fallen to valuations where their P/E ratios
are near their long-term growth rates, a measure that we use to help
identify attractive growth stock opportunities for the Fund. With this as
background, we have used the market volatility of the past 12 months to add
new positions to the Fund and to increase its weighting in stocks whose
valuations have fallen despite their strong underlying fundamentals.
Overall, our focus continues to be on companies with strong fundamentals
that have proven their ability to grow earnings despite the challenging
economic environment. Current stock valuations have only strengthened our
conviction about the favorable/risk reward profile of the portfolio, and we
remain optimistic about the long-term outlook for the Fund.
Please refer to the Schedule of Investments on pages 15-20 for a full listing
of Fund securities.
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 other 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.
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 Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 7
Portfolio Summary | 8/31/08
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
U.S. Common Stocks 95.0%
Depositary Receipts for International Stocks 2.0%
Temporary Cash Investment 3.0%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Information Technology 28.9%
Health Care 18.4%
Industrials 13.7%
Energy 10.5%
Consumer Staples 9.0%
Consumer Discretionary 8.0%
Financials 6.6%
Materials 4.9%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
[THE FOLLOWING DATA WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
1. Qualcomm, Inc. 3.49%
2. Southwestern Energy Co. 3.27
3. Thermo Fisher Scientific, Inc. 2.89
4. Procter & Gamble Co. 2.85
5. Cisco Systems, Inc. 2.84
6. Google, Inc. 2.75
7. Apple, Inc. 2.70
8. Waste Connections, Inc. 2.69
9. Danaher Corp. 2.59
10. Church & Dwight Co., Inc. 2.50
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8 Pioneer Oak Ridge All Cap Growth 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 $ 10.39 $ 11.19
- -----------------------------------------------
C $ 10.22 $ 11.11
- -----------------------------------------------
Y $ 10.42 $ 11.19
- -----------------------------------------------
Distributions Per Share: 9/1/07-8/31/08
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ -- $ -- $ --
- -------------------------------------------------------------------------
C $ -- $ -- $ --
- -------------------------------------------------------------------------
Y $ -- $ -- $ --
- -------------------------------------------------------------------------
Index Definitions
- --------------------------------------------------------------------------------
The Russell 3000 Growth Index measures the performance of large-cap U.S. growth
stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" charts on
pages 10-12.
Pioneer Oak Ridge All Cap Growth 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 Oak Ridge All Cap Growth Fund at public offering
price, compared to that of the Russell 3000 Growth Index.
Average Annual Total Returns
(As of August 31, 2008)
- -------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- -------------------------------------------------------------------------
Life-of-Class
(10/16/06) 2.06% -1.11%
1 Year -7.15 -12.47
- -------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- -------------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------------
8.72% 1.25%
- -------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Oak Ridge Russell 3000
All Cap Growth Fund Growth Index
10/06 $ 9425 $10000
$10507 $11048
8/08 $ 9756 $10323
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.
POP returns reflect deduction of maximum 5.75% sales charge. NAV 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.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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.
10 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
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 Oak Ridge All Cap Growth Fund, compared to that of
the Russell 3000 Growth Index.
Average Annual Total Returns
(As of August 31, 2008)
- ------------------------------------------------------------------
If If
Period Held Redeemed
- ------------------------------------------------------------------
Life-of-Class
(10/16/06) 1.17% 1.17%
1 Year -8.01 -8.01
- ------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- ------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------
9.61% 2.15%
- ------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Oak Ridge Russell 3000
All Cap Growth Fund Growth Index
10/06 $10000 $10000
$11066 $11048
8/08 $10179 $10323
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 11
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 Oak Ridge All Cap Growth Fund, compared to that of
the Russell 3000 Growth Index.
Average Annual Total Returns
(As of August 31, 2008)
- ------------------------------------------------------------------
If If
Period Held Redeemed
- ------------------------------------------------------------------
Life-of-Class
(10/16/06) 2.22% 2.22%
1 Year -6.88 -6.88
- ------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- ------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------
8.41% 0.95%
- ------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Oak Ridge Russell 3000
All Cap Growth Fund Growth Index
10/06 $10000 $10000
$11168 $11048
8/08 $10399 $10323
Call 1-800-225-6292 or 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.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class Y 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.
12 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
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 Oak Ridge All Cap Growth Fund
Based on actual returns from March 1, 2008 through August 31, 2008.
Share Class A C Y
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/08
- ----------------------------------------------------------------------
Ending Account $ 1,006.72 $ 1,000.98 $ 1,007.79
Value on 8/31/08
- ----------------------------------------------------------------------
Expenses Paid $ 6.31 $ 10.81 $ 5.20
During Period*
- ----------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2,15%,
and 1.03%, for Class A, 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 Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 13
Comparing Ongoing Fund Expenses (continued)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Oak Ridge All Cap Growth 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 C Y
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/08
- ----------------------------------------------------------------------
Ending Account $ 1,018.85 $ 1,014.33 $ 1,019.96
Value on 8/31/08
- ----------------------------------------------------------------------
Expenses Paid $ 6.34 $ 10.89 $ 5.23
During Period*
- ----------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15% and
1.03%, for Class A, 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 Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
Schedule of Investments | 8/31/08
Shares Value
COMMON STOCKS -- 94.9%
ENERGY -- 9.9%
Oil & Gas Equipment & Services -- 2.2%
1,610 Schlumberger, Ltd. $ 151,694
- -----------------------------------------------------------------------
Oil & Gas Exploration & Production -- 7.7%
3,125 Denbury Resources, Inc.* $ 77,781
2,550 Petrohawk Energy Corp.* 88,256
5,585 Southwestern Energy Co.* 214,296
3,072 XTO Energy, Inc. 154,860
----------
$ 535,193
----------
Total Energy $ 686,887
- -----------------------------------------------------------------------
MATERIALS -- 4.6%
Fertilizers & Agricultural Chemicals -- 0.9%
570 Monsanto Co.* $ 65,123
- -----------------------------------------------------------------------
Industrial Gases -- 2.2%
2,535 Airgas, Inc. $ 150,173
- -----------------------------------------------------------------------
Specialty Chemicals -- 1.5%
2,290 Ecolab, Inc. $ 104,745
----------
Total Materials $ 320,041
- -----------------------------------------------------------------------
CAPITAL GOODS -- 7.3%
Aerospace & Defense -- 3.1%
970 Precision Castparts Corp. $ 100,162
1,880 Raytheon Co. 112,781
----------
$ 212,943
- -----------------------------------------------------------------------
Industrial Machinery -- 4.2%
2,080 Danaher Corp. $ 169,666
3,240 Idex Corp. 120,107
----------
$ 289,773
----------
Total Capital Goods $ 502,716
- -----------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 4.2%
Environmental & Facilities Services -- 4.2%
1,900 Stericycle, Inc.* $ 112,670
4,855 Waste Connections, Inc.* 176,285
----------
$ 288,955
----------
Total Commercial Services & Supplies $ 288,955
- -----------------------------------------------------------------------
TRANSPORTATION -- 1.6%
Railroads -- 1.6%
2,085 Kansas City Southern Industries, Inc.* $ 107,232
----------
Total Transportation $ 107,232
- -----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 15
Schedule of Investments | 8/31/08 (continued)
Shares Value
AUTOMOBILES & COMPONENTS -- 1.6%
Auto Parts & Equipment -- 1.6%
3,600 Johnson Controls, Inc. $ 111,312
----------
Total Automobiles & Components $ 111,312
- -----------------------------------------------------------------------
MEDIA -- 1.0%
Movies & Entertainment -- 1.0%
4,870 News Corp, Inc. $ 68,959
----------
Total Media $ 68,959
- -----------------------------------------------------------------------
RETAILING -- 4.9%
Computer & Electronics Retail -- 1.5%
2,440 Gamestop Corp.* $ 107,043
- -----------------------------------------------------------------------
General Merchandise Stores -- 1.3%
1,740 Target Corp. $ 92,255
- -----------------------------------------------------------------------
Specialty Stores -- 2.1%
5,875 Staples, Inc. $ 142,175
----------
Total Retailing $ 341,473
- -----------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 3.5%
Distillers & Vintners -- 1.4%
1,620 Central Euro Distribution Corp.* $ 93,458
- -----------------------------------------------------------------------
Soft Drinks -- 2.1%
2,165 PepsiCo, Inc. $ 148,259
----------
Total Food, Beverage & Tobacco $ 241,717
- -----------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 5.1%
Household Products -- 5.1%
2,625 Church & Dwight Co., Inc. (b) $ 164,063
2,680 Procter & Gamble Co.* 186,984
----------
$ 351,047
----------
Total Household & Personal Products $ 351,047
- -----------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.6%
Health Care Distributors -- 1.7%
2,040 Henry Schein, Inc.* $ 119,299
- -----------------------------------------------------------------------
Health Care Equipment -- 0.9%
2,935 Hologic, Inc.* (b) $ 62,281
- -----------------------------------------------------------------------
Health Care Services -- 2.0%
2,310 American Healthways, Inc.* $ 44,006
2,770 HealthExtras, Inc.* 90,302
----------
$ 134,308
----------
Total Health Care Equipment & Services $ 315,888
- -----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
Shares Value
PHARMACEUTICALS & BIOTECHNOLOGY -- 12.9%
Biotechnology -- 6.0%
1,925 Celgene Corp.* $ 133,403
1,460 Genentech, Inc.* 144,175
2,635 Gilead Sciences, Inc.* 138,812
----------
$ 416,390
- -----------------------------------------------------------------------
Life Sciences Tools & Services -- 2.8%
3,130 Thermo Fisher Scientific, Inc.* $ 189,553
- -----------------------------------------------------------------------
Pharmaceuticals -- 4.1%
2,625 Abbott Laboratories $ 150,754
2,415 Allergan, Inc. 134,926
----------
$ 285,680
----------
Total Pharmaceuticals & Biotechnology $ 891,623
- -----------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 4.4%
Asset Management & Custody Banks -- 1.3%
965 Affiliated Managers Group, Inc.* $ 91,887
- -----------------------------------------------------------------------
Investment Banking & Brokerage -- 2.0%
5,680 Charles Schwab Corp. $ 136,263
- -----------------------------------------------------------------------
Specialized Finance -- 1.1%
865 IntercontinentalExchange, Inc.* $ 76,146
----------
Total Diversified Financials $ 304,296
- -----------------------------------------------------------------------
INSURANCE -- 1.9%
Life & Health Insurance -- 1.9%
2,290 Aflac, Inc. $ 129,843
----------
Total Insurance $ 129,843
- -----------------------------------------------------------------------
SOFTWARE & SERVICES -- 13.6%
Application Software -- 6.3%
3,330 Adobe Systems, Inc.* $ 142,624
3,450 Ansys, Inc.* 153,008
2,435 Sap AG (A.D.R.)* 136,555
----------
$ 432,187
- -----------------------------------------------------------------------
Data Processing & Outsourced Services -- 2.9%
1,875 Alliance Data Systems Corp.* $ 120,450
1,070 Visam, Inc. 81,213
----------
$ 201,663
- -----------------------------------------------------------------------
Internet Software & Services -- 2.6%
390 Google, Inc.* $ 180,683
- -----------------------------------------------------------------------
Systems Software -- 1.8%
4,565 Microsoft Corp. $ 124,579
----------
Total Software & Services $ 939,112
- -----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 17
Schedule of Investments | 8/31/08 (continued)
Shares Value
TECHNOLOGY HARDWARE & EQUIPMENT -- 11.5%
Communications Equipment -- 7.1%
7,755 Cisco Systems, Inc.* $ 186,508
3,770 Corning, Inc. 77,436
4,345 Qualcomm, Inc. 228,764
----------
$ 492,708
- -----------------------------------------------------------------------
Computer Hardware -- 4.4%
1,045 Apple, Inc.* $ 177,159
2,715 Hewlett-Packard Co. 127,388
----------
$ 304,547
----------
Total Technology Hardware & Equipment $ 797,255
- -----------------------------------------------------------------------
SEMICONDUCTORS -- 2.3%
2,125 Hittite Microwave Corp.* $ 75,204
3,500 Texas Instruments, Inc. 85,780
----------
Total Semiconductors $ 160,984
- -----------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $6,599,458) $6,559,340
- -----------------------------------------------------------------------
Principal
Amount
TEMPORARY CASH INVESTMENT -- 2.9%
Securities Lending Collateral -- 2.9% (c)
Certificates of Deposit:
$ 2,844 Citibank, 2.73%, 10/30/08 $ 2,844
2,844 Abbey National Plc, 3.15%, 08/13/2009 2,844
2,846 Banco Santander NY, 3.09%, 12/22/08 2,846
2,843 Bank of Nova Scotia, 3.18%, 5/05/09 2,843
1,023 Bank of Scotland NY, 2.89%, 11/4/08 1,023
4,541 Bank of Scotland NY, 3.03%, 9/26/08 4,541
5,119 Barclays Bank, 3.18%, 5/27/09 5,119
5,688 BNP Paribas NY, 2.72% 11/3/2008 5,688
2,389 Calyon NY, 2.64%, 9/29/08 2,389
568 Calyon NY, 2.69%, 01/16/09 568
335 Calyon NY, 2.69%, 01/16/09 335
2,109 Dexia Bank NY, 3.37%, 09/29/08 2,109
5,119 DNB NOR Bank ASA NY, 2.90%, 6/8/09 5,119
244 Fortis, 3.11%, 09/30/08 245
5,210 Intesa SanPaolo S.p.A., 2.72%, 5/22/09 5,210
329 NORDEA NY, 2.72%, 4/9/09 329
273 NORDEA NY, 2.73%, 12/01/08 273
2,844 Royal Bank of Canada NY, 2.6%, 9/5/08 2,844
4,266 Royal Bank of Canada NY, 3.0%, 8/7/09 4,266
1,707 Bank of Scotland NY, 2.96%, 11/3/08 1,707
The accompanying notes are an integral part of these financial statements.
18 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
Principal
Amount Value
Certificates of Deposit -- (continued):
$ 330 Skandinavian Enskilda Bank NY, 3.18%, 09/22/08 $ 330
568 Skandinavian Enskilda Bank NY, 3.06% 02/13/09 568
5,119 Svenska Bank NY, 2.70%, 7/08/09 5,120
3,584 Toronto Dominion Bank NY, 2.77%, 9/5/08 3,584
1,706 Toronto Dominion Bank NY, 2.75%, 11/5/08 1,707
2,844 Wachovia, 3.62%,10/28/08 2,844
----------
$ 67,295
- -----------------------------------------------------------------------
Commercial Paper:
5,688 CBA, 3.02%, 7/16/09 $ 5,688
566 Dexdel, 2.70%, 11/10/2008 566
5,647 JP Morgan Chase & Co., 1.42%,12/3/2008 5,647
566 Met Life, Inc., 2.70%, 11/3/2008 566
5,688 HSBC Securities, Inc., 2.88%, 9/29/08 5,688
5,586 Honda Finance Corp., 2.92%, 7/14/09 5,586
2,835 Royal Bank of Scotland, 2.66%, 10/14/08 2,835
1,706 John Deere Capital Corp., 2.78%, 12/12/2008 1,706
5,688 Monumental Global Funding, Ltd., 3.24%, 08/17/09 5,688
5,119 New York Life Global, 2.98%, 09/04/2009 5,120
5,688 Societe Generale, 3.29%, 09/04/09 5,688
541 Bank Bovespa NY, 2.79%, 3/12/09 542
2,559 General Electric Capital Corp., 2.77%, 1/5/09 2,559
2,843 General Electric Capital Corp., 2.82%, 3/16/09 2,843
2,844 CME Group, Inc., 3.00%, 8/6/09 2,844
1,052 IBM, 3.18%, 2/13/09 1,052
2,844 IBM, 3.18%, 6/26/09 2,844
5,119 Met Life Global Funding, 3.16%, 6/12/09 5,120
5,688 U.S. Bank, 2.912%, 08/24/09 5,688
568 Wachovia Corp., 2.85%,10/28/08 568
4,835 WestPac, 3.18%, 6/1/09 4,835
----------
$ 73,673
- -----------------------------------------------------------------------
Shares
Mutual Funds:
4,266 AIM Short Term Investment Trust, 2.47% $ 4,266
4,266 Dreyfus Preferred Money Market Fund, 3.18% 4,266
----------
$ 8,532
- -----------------------------------------------------------------------
Tri-party Repurchase Agreements:
17,065 ABN Amro, 2.11%, 9/2/08 $ 17,065
2,135 Barclays Capital Markets, 2.11%, 9/2/08 2,135
1,296 Deutsche Bank, 2.11%, 9/2/08 1,296
20,023 Lehman Brothers, 2.11%, 9/2/08 20,023
----------
$ 40,519
- -----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 19
Schedule of Investments | 8/31/08 (continued)
Principal
Amount Value
Time Deposit:
$ 8,532 SunTrust Banks, Inc., 1.875%, 9/2/08 $ 8,532
- -----------------------------------------------------------------------
Other:
848 ABS CFAT 2008-A A1, 3.005%, 4/27/09 $ 849
----------
Total Securities Lending Collateral $ 199,400
- -----------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $199,400) $ 199,400
- -----------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 97.8%
(Cost $6,798,858) (a) $6,758,740
- -----------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 2.2% $ 154,676
- -----------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $6,913,416
=======================================================================
(A.D.R.) American Depositary Receipt.
* Non-income producing security.
(a) At August 31, 2008, the net unrealized loss on investments based on
cost for federal income tax purposes of $6,831,317 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 380,079
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value 452,656
---------
Net unrealized loss $ (72,577)
=========
(b) At August 31, 2008, the following securities were out on loan:
Shares Description Value
2,600 Church & Dwight Co., Inc. $162,500
1,500 Hologic, Inc. 31,830
- -----------------------------------------------------
Total $194,330
=====================================================
(c) Security lending collateral is managed by Credit Suisse.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended August 31, 2008 aggregated $6,531,565 and $1,439,451,
respectively.
The accompanying notes are an integral part of these financial statements.
20 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
Statement of Assets and Liabilities | 8/31/08
ASSETS:
Investment in securities (including securities loaned
of $194,330) (cost $6,798,858) $6,758,740
Cash 355,625
Receivables --
Fund shares sold 39,448
Dividends 2,936
Due from Pioneer Investment Management, Inc. 10,949
Other 4,652
- ----------------------------------------------------------------------
Total assets $7,172,350
- ----------------------------------------------------------------------
LIABILITIES:
Payables --
Upon return of securities loaned $ 199,400
Due to affiliates 2,190
Accrued expenses 57,344
- ----------------------------------------------------------------------
Total liabilities $ 258,934
- ----------------------------------------------------------------------
NET ASSETS:
Paid-in capital $7,170,898
Accumulated net realized loss on investments (217,364)
Net unrealized loss on investments (40,118)
- ----------------------------------------------------------------------
Total net assets $6,913,416
======================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $5,411,538/520,931 shares) $ 10.39
Class C (based on $1,154,500/112,920 shares) $ 10.22
Class Y (based on $347,378/33,333 shares) $ 10.42
MAXIMUM OFFERING PRICE:
Class A ($10.39 [divided by] 94.25%) $ 11.02
======================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 21
Statement of Operations
For the Year Ended 8/31/08
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $307) $29,276
Interest 11,278
Income from securities loaned, net 495
- ------------------------------------------------------------------------------------
Total investment income $ 41,049
- ------------------------------------------------------------------------------------
EXPENSES:
Management fees $34,396
Transfer agent fees and expenses
Class A 7,123
Class C 2,067
Class Y 681
Distribution fees
Class A 8,250
Class C 8,760
Administrative fees 1,032
Custodian fees 47,444
Registration fees 40,047
Professional fees 47,849
Printing expense 18,994
Fees and expenses of nonaffiliated trustees 7,218
Miscellaneous 1,570
- ------------------------------------------------------------------------------------
Total expenses $ 225,431
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (160,990)
Less fees paid indirectly (207)
- ------------------------------------------------------------------------------------
Net expenses $ 64,234
- ------------------------------------------------------------------------------------
Net investment loss $ (23,185)
- ------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $ (206,331)
- ------------------------------------------------------------------------------------
Change in net unrealized gain on investments $ (220,205)
- ------------------------------------------------------------------------------------
Net loss on investments $ (426,536)
- ------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (449,721)
====================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
Statement of Changes in Net Assets
For the Year Ended 8/31/08 and the Period from 10/17/06
(Commencement of Operations) to 8/31/07
Year Ended 10/17/06
8/31/08 to 8/31/07
FROM OPERATIONS:
Net investment loss $ (23,185) $ (7,187)
Net realized loss on investments (206,331) (5,284)
Change in net unrealized gain (loss) on investments (220,205) 180,087
- ---------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ (449,721) $ 167,616
- ---------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $6,424,890 $1,129,905
Cost of shares repurchased (1,125,679) (233,595)
- ---------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $5,299,211 $ 896,310
- ---------------------------------------------------------------------------------------
Net increase in net assets $4,849,490 $1,063,926
NET ASSETS:
Beginning of year 2,063,926 1,000,000
- ---------------------------------------------------------------------------------------
End of year $6,913,416 $2,063,926
- ---------------------------------------------------------------------------------------
Accumulated net investment loss $ -- $ --
- ---------------------------------------------------------------------------------------
'08 Shares '08 Amount '07 Shares '07 Amount
Class A*
Shares sold 514,703 $5,625,809 68,773 $ 734,945
Less shares repurchased (88,738) (933,947) (7,140) (77,562)
- ---------------------------------------------------------------------------------------------
Net increase 425,965 $4,691,862 61,633 $ 657,383
=============================================================================================
Class C*
Shares sold 74,221 $ 794,781 36,449 $ 384,800
Less shares repurchased (16,948) (177,017) (14,135) (156,033)
- ---------------------------------------------------------------------------------------------
Net increase 57,273 $ 617,764 22,314 $ 228,767
=============================================================================================
Class Y*
Shares sold 422 $ 4,300 887 $ 10,160
Less shares repurchased (1,309) (14,715) -- --
- ---------------------------------------------------------------------------------------------
Net increase (decrease) (887) $ (10,415) 887 $ 10,160
=============================================================================================
* Class A, Class C, and Class Y shares were first publicly offered on
October 17, 2006.
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 23
Financial Highlights
Year
Ended 10/17/06 (a)
8/31/08 to 8/31/07
Class A
Net asset value, beginning of period $ 11.19 $ 10.00
- --------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.02) $ (0.01)
Net realized and unrealized gain (loss) on investments (0.78) 1.20
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (0.80) $ 1.19
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.39 $ 11.19
==================================================================================================
Total return* (7.15)% 11.90%(b)
Ratio of net expenses to average net assets+ 1.25% 1.25%**
Ratio of net investment loss to average net assets+ (0.36)% (0.22)%**
Portfolio turnover rate 34% 41%(b)
Net assets, end of period (in thousands) $ 5,412 $ 1,063
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 4.72% 8.72%**
Net investment loss (3.83)% (7.69)%**
Ratios with waiver of fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.25% 1.25%**
Net investment loss (0.36)% (0.22)%**
==================================================================================================
(a) Class A shares were first publicly offered on October 17, 2006.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
Year Ended 10/17/06 (a)
8/31/08 to 8/31/07
Class C
Net asset value, beginning of period $ 11.11 $ 10.00
- --------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.10) $ (0.09)
Net realized and unrealized gain (loss) on investments (0.79) 1.20
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (0.89) $ 1.11
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.22 $ 11.11
==================================================================================================
Total return* (8.01)% 11.10%(b)
Ratio of net expenses to average net assets+ 2.16% 2.15%**
Ratio of net investment loss to average net assets+ (1.24)% (1.13)%**
Portfolio turnover rate 34% 41%(b)
Net assets, end of period (in thousands) $ 1,155 $ 618
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 5.72% 9.61%**
Net investment loss (4.80)% (8.59)%**
Ratios with waiver of fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 2.15% 2.15%* *
Net investment loss (1.23)% (1.13)%**
==================================================================================================
(a) Class C shares were first publicly offered on October 17, 2006.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 25
Financial Highlights (continued)
Year Ended 10/17/06 (a)
8/31/08 to 8/31/07
Class Y
Net asset value, beginning of period $ 11.19 $ 10.00
- --------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.01) $ (0.02)
Net realized and unrealized gain (loss) on investments (0.76) 1.21
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment
operations $ (0.77) $ 1.19
- --------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.42 $ 11.19
==================================================================================================
Total return* (6.88)% 11.90%(b)
Ratio of net expenses to average net assets+ 1.03% 1.25%**
Ratio of net investment loss to average net assets+ (0.12)% (0.25)%**
Portfolio turnover rate 34% 41%(b)
Net assets, end of period (in thousands) $ 347 $ 383
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction of fees paid indirectly:
Net expenses 4.76% 8.41%**
Net investment loss (3.85)% (7.41)%**
Ratios with waiver of fees and assumption of expenses by PIM
and reduction of fees paid indirectly:
Net expenses 1.03% 1.25%**
Net investment loss (0.12)% (0.25)%**
==================================================================================================
(a) Class Y shares were first publicly offered on October 17, 2006.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
Notes to Financial Statements | 8/31/08
1. Organization and Significant Accounting Policies
Pioneer Oak Ridge All Cap Growth Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, 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 capital
appreciation.
The Fund offers three classes of shares -- Class A, Class C and Class Y shares.
Class A, Class C and Class Y shares were first publicly offered on October 17,
2006. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has equal rights to voting, redemptions, dividends
and liquidation, except that the level of transfer agent and distribution fees
may differ among classes. Class A and Class C shareowners have exclusive voting
rights with respect to the distribution plan for each class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. 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
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 27
date of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of, the Board
of Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. The Fund may also use the fair value of a
security, including a non-U.S. security, when the closing market price on the
principal exchange where the security is traded no longer reflects the value
of the security. At August 31, 2008, there were no securities fair valued.
Temporary cash investments are valued at cost which approximates market
value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in the
exercise of reasonable diligence. Dividend and interest income 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. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. All tax
provisions filed thus far are open (subject to examination by tax
authorities).
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
At August 31, 2008, The fund had a net capital loss carryforward of $4,469,
which will expire in 2016 if not utilized.
The Fund has elected to defer $180,436 of capital losses recognized between
November 1, 2007 and August 31, 2008 to its fiscal year ending August 31,
2009.
At August 31, 2008, the Fund has reclassified $23,185 to decrease accumulated
net investment loss and $23,185 to decrease paid-in capital, to reflect
28 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
permanent book/tax differences. The reclassification has no impact on the net
assets of the Fund and presents the Fund's capital accounts on a tax basis.
There were no distributions paid during the years ended August 31, 2008 and
August 31, 2007.
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2008:
2008
Distributable earnings:
Capital loss carryforward $ (4,469)
Current year post October loss deferred (180,436)
Unrealized depreciation (72,577)
- -------------------------------------------------------------------------------
Total $ (257,482)
===============================================================================
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned approximately $4,927 in underwriting commissions on the sale of Class
A shares during the year ended August 31, 2008.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the 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, 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).
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, on the same day, and in the
same amount, except that Class A, Class C, and Class Y shares bear different
transfer agent and distribution expense rates.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 29
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a loan, the Fund receives
collateral and earns income in the form of negotiated lenders' fees. The Fund
also continues to receive interest or payments in lieu of dividends on the
securities loaned. Gain or loss on the fair value of the loaned securities
that may occur during the term of the loan will be for the account of the
Fund. The loans are secured by collateral which is required to be at least
102%, at all times, of the fair value of the securities loaned. The amount of
collateral is required to be adjusted daily to reflect any price fluctuation
in the value of the loaned securities. The Fund has the right under the
lending agreement to recover the securities from the borrower on demand. The
fund invests cash collateral in cash equivalent investments. Security lending
collateral is managed by Credit Suisse, Inc.
2. Management Agreement
PIM, a wholly owned subsidiary of UniCredit, manages the Fund's portfolio. PIM
receives a basic fee that is calculated at the annual rate of 0.75% of the
Fund's average daily net assets up to $500 million; and 0.70% on assets over
$500 million. The management fees were equivalent to 0.75% of the average daily
net assets for the year ended August 31, 2008.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Fund expenses to 1.25% and 2.15% of the average daily
net assets attributable to Class A and Class C shares, respectively. These
expense limitations are in effect through January 1, 2011 for Class A shares
and through January 1, 2009 for Class C shares. Effective January 1, 2008,
Pioneer has contractually agreed to limit Class Y expenses to 0.95% of the
average daily net assets attributable to Class Y shares. This expense
limitation is in effect through January 1, 2009.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $436 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 $1,548 in transfer agent fees payable to PIMSS at August 31,
2008.
30 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
4. Distribution Plans
The Fund adopted a Plan of Distribution for Class A and Class C shares (Class A
Plan, and Class C Plan) in accordance with Rule 12b-1 under the Investment
Company Act of 1940. Effective February 1, 2008, under the Class A Plan, the
Fund pays PFD a service fee equal to 0.25% of the average daily net assets
attributable to Class A shares to finance activities primarily intended to
result in the sale of Class A shares. Prior to February 1, 2008, PFD was
reimbursed for service fees in an amount up to 0.25% of the average daily net
assets attributable to Class A shares. Pursuant to the Class C Plan, the Fund
pays PFD 1.00% of the average daily net assets attributable to each class of
shares. The fee consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance services
or distribution services with regard to Class C shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $206 in
distribution fees payable to PFD at August 31, 2008.
In addition, redemptions of Class A and Class C 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. Redemptions of Class C shares within one year of purchase
are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to PFD. For
the year ended August 31, 2008, CDSCs in the amount of $34 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into an expense offset arrangement 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
$207 under such arrangements.
6. New Pronouncements
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statement disclosures.
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.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 31
Report of Independent Registered Public Accounting Firm
To the Trustees of Pioneer Series Trust V and
Shareholders of Pioneer Oakridge All Cap Growth Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Oakridge All Cap Growth Fund (the Fund) (one of the portfolios constituting
Pioneer Series Trust V) as of August 31, 2008, including the schedule of
investments, 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. We believe that our audits provides 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 Oakridge All Cap Growth 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
32 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
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 (or, with respect to certain proposals, by shareholders
of Pioneer Series Trust V (the "Trust"), as noted below) follows:
Broker
For Withhold Abstain Non-Votes
Proposal 1 -- To elect Trustees*
John F. Cogan, Jr. 3,405,267.390 55,065.192 0.000 0.000
Daniel K. Kingsbury 3,405,267.390 55,065.192 0.000 0.000
David R. Bock 3,405,267.390 55,065.192 0.000 0.000
Mary K. Bush 3,405,267.390 55,065.192 0.000 0.000
Benjamin M. Friedman 3,405,267.390 52,896.409 2,168.783 0.000
Margaret B.W. Graham 3,405,267.390 55,065.192 0.000 0.000
Thomas J. Perna 3,405,267.390 55,065.192 0.000 0.000
Marguerite A. Piret 3,405,267.390 55,065.192 0.000 0.000
Stephen K. West 3,405,267.390 55,065.192 0.000 0.000
John Winthrop 3,405,267.390 55,065.192 0.000 0.000
Broker
For Against Abstain Non-Votes
Proposal 2 -- To approve an
amendment to the
Declaration of Trust* 2,342,477.355 299,534.822 36,093.405 782,227.000
Broker
For Against Abstain Non-Votes
Proposal 3A -- To approve
changes to the Fund's
fundamental investment
policy relating to borrowing
money 206,546.180 1,466.800 4,154.464 92,980.000
Proposal 3B -- To approve
changes to the Fund's
fundamental investment
policy relating to
underwriting 206,546.180 1,466.800 4,154.464 92,980.000
Proposal 3C -- To approve
changes to the Fund's
fundamental investment
policy relating to lending 206,546.180 1,466.800 4,154.464 92,980.000
Proposal 3D -- To approve
changes to the Fund's
fundamental investment
policy relating to issuing
senior securities 206,546.180 1,466.800 4,154.464 92,980.000
Proposal 3E -- To approve
changes to the Fund's
fundamental investment
policy relating to real estate 206,546.180 1,466.800 4,154.464 92,980.000
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
33
Broker
For Against Abstain Non-Votes
Proposal 3F -- To approve
changes to the Fund's
fundamental investment
policy relating to
commodities 208,012.976 0.004 4,154.464 92,980.000
Proposal 3G -- To approve
changes to the Fund's
fundamental investment
policy relating to
concentration 206,546.180 1,466.800 4,154.464 92,980.000
Proposal 3H -- To approve
changes to the Fund's
fundamental investment
policy relating to
diversification 208,012.976 0.004 4,154.464 92,980.000
Proposal 3I -- To approve
the conversion of the Fund's
investment objective from
fundamental to non-
fundamental 206,546.180 1,466.800 4,154.464 92,980.000
Broker
For Against Abstain Non-Votes
Proposal 4 -- To approve an
Amended and Restated
Management Agreement
with PIM 205,224.473 2,788.507 4,154.464 92,980.000
* Proposals 1 and 2 were voted on and approved by all series of the Trust.
Results reported above reflect the combined votes of all series of the
Trust.
34 Pioneer Oak Ridge All Cap Growth 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 Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 35
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 noted that the
Fund commenced operations on October 16, 2006. They considered that the Fund's
performance for the period from January 1, 2007 through June 30, 2007 was in
the third quintile of its Morningstar category. (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.) The Trustees
concluded that the investment performance of the Fund was satisfactory.
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 ratios of a peer group of
funds selected on the basis of criteria determined by
36 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
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 first quintile relative to its
Strategic Insight peer group. 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.
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.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 37
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.
38 Pioneer Oak Ridge All Cap Growth 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 71 of the 77 Pioneer
Funds. The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08 39
Interested Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
John F. Cogan, Jr. (82)* Chairman of the Board, Trustee since 2005.
Trustee and President Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ---------------------------------------------------------------------------------
Daniel K. Kingsbury (50)* Trustee and Executive Trustee since March
Vice President 2007. Serves until a
successor trustee is
elected or earlier retire-
ment or removal.
- ---------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
John F. Cogan, Jr. (82)* Deputy Chairman and a Director of Pioneer Global Asset Man- None
agement S.p.A. ("PGAM"); Non-Executive Chairman and a Direc-
tor 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); Direc-
tor of Cole Management Inc. (since 2004); Director of Fiduciary
Counseling, Inc.; President and Director of Pioneer Funds Dis-
tributor, 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)* Director, CEO and President of Pioneer Investment Management None
USA Inc. (since February 2007); Director and President 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); Direc-
tor 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.
40 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
Independent Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
David R. Bock (64) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Benjamin M. Friedman (64) Trustee Trustee since May,
2008. Serves until a
successor trustee is
elected or earlier retire-
ment or removal.
- -------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
David R. Bock (64) Executive Vice President and Chief Financial Officer, I-trax, Inc. Director of Enterprise Com-
(publicly traded health care services company) (2004 - 2007); munity Investment, Inc.
Partner, Federal City Capital Advisors (boutique merchant bank) (privately-held affordable
(1997 to 2004 and 2008 - present); and Executive Vice Presi- housing finance company);
dent and Chief Financial Officer, Pedestal Inc. (internet-based and Director of New York
mortgage trading company) (2000 - 2002) Mortgage Trust (publicly
traded mortgage REIT)
- ---------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (60) President, Bush International, LLC (international financial Director of Marriott Interna-
advisory firm) tional, Inc., Director of Dis-
cover Financial Services
(credit card issuer and elec-
tronic payment services);
Director of Briggs & Stratton
Co. (engine manufacturer);
Director of UAL Corporation
(airline holding company);
Director of Mantech Interna-
tional Corporation (national
security, defense, and intelli-
gence technology firm); and
Member, Board of Governors,
Investment Company Institute
- ---------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (64) Professor, Harvard University Trustee, Mellon Institutional
Funds Investment Trust and
Mellon Institutional Funds
Master Portfolio (oversees 17
portfolios in fund complex)
- ---------------------------------------------------------------------------------------------------------------------------------
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
41
Independent Trustees (continued)
Position Held Length of Service
Name and Age with the Fund and Term of Office
Margaret B.W. Graham (61) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------------
Marguerite A. Piret (60) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------------
Stephen K. West (79) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Margaret B.W. Graham (61) Founding Director, Vice-President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm); and Desautels Faculty of
Management, McGill University
- ---------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Private investor (2004 - present); and Senior Executive Vice Director of Quadriserv Inc.
President, The Bank of New York (financial and securities ser- (technology products for
vices) (1986 - 2004) securities lending industry)
- ---------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (60) President and Chief Executive Officer, Newbury, Piret & Com- Director of New America High
pany, Inc. (investment banking firm) Income Fund, Inc. (closed-
end investment company)
- ---------------------------------------------------------------------------------------------------------------------------
Stephen K. West (79) Senior Counsel, Sullivan & Cromwell LLP (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end
investment company)
- ---------------------------------------------------------------------------------------------------------------------------
John Winthrop (71) President, John Winthrop & Co., Inc. None
(private investment firm)
- ---------------------------------------------------------------------------------------------------------------------------
42 Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
Fund Officers
Position Held Length of Service
Name and Age with the Fund and Term of Office
Dorothy E. Bourassa (60) Secretary Since 2005. Serves at
the discretion of the
Board.
- -----------------------------------------------------------------------------
Christopher J. Kelley (43) Assistant Secretary Since 2005. Serves at
the discretion of the
Board.
- -----------------------------------------------------------------------------
Mark E. Bradley (48) Treasurer Since March 2008.
Serves at the discretion
of the Board.
- -----------------------------------------------------------------------------
Luis I. Presutti (43) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board.
- -----------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Dorothy E. Bourassa (60) Secretary of PIM-USA; Senior Vice President - Legal of Pioneer; None
Secretary/Clerk of most of PIM-USA's subsidiaries; and Secre-
tary of all of the Pioneer Funds since September 2003 (Assis-
tant Secretary from November 2000 to September 2003)
- ----------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (43) Associate General Counsel of Pioneer since January 2008 and None
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) Vice President - Fund Accounting, Administration and Controller- None
ship 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 Trea-
surer and Senior Vice President, CDC IXIS Asset Management
Services from 2002 to 2003
- ----------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (43) Assistant Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ----------------------------------------------------------------------------------------------------------------------
Pioneer Oak Ridge All Cap Growth Fund | Annual Report | 8/31/08
43
Fund Officers (continued)
Position Held Length of Service
Name and Age with the Fund and Term of Office
Gary Sullivan (50) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board.
- ------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board.
- ------------------------------------------------------------------------------
Teri W. Anderholm (49) Chief Compliance Since January 2007.
Officer Serves at the discretion
of the Board.
- ------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Gary Sullivan (50) Fund Accounting Manager - Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant Treasurer
of all of the Pioneer Funds
- ---------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Fund Administration Manager - Fund Accounting, Administration None
and Controllership Services since June 2003 and Assistant Trea-
surer of all of the Pioneer Funds since September 2003; Assis-
tant 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 Officer of Pioneer since December 2006 and None
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)
- ---------------------------------------------------------------------------------------------------------------------
44 Pioneer Oak Ridge All Cap Growth 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.
[LOGO]PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2008 Pioneer Investments 21202-02-1008
Pioneer Research
Growth Fund
Annual Report | August 31, 2008
Ticker Symbols:
Class A SRSGX
Class C PRGCX
Class Y PRGYX
[LOGO] Pioneer
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 12
Schedule of Investments 14
Financial Statements 18
Notes to Financial Statements 24
Report of Independent Registered Public Accounting Firm 29
Approval of Investment Advisory Agreement 32
Trustees, Officers and Service Providers 36
Pioneer Research Growth 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
see potential chances for making money in many corners of the market, it
2 Pioneer Research Growth Fund | Annual Report | 8/31/08
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.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Research Growth Fund | Annual Report | 8/31/08 3
Portfolio Management Discussion | 8/31/08
Driven by growing fears about the effects of a global credit crisis that began
with problems over U.S. subprime mortgages, prices of most domestic stocks fell
over the 12 months ended August 31, 2008. In a highly volatile market, energy
stocks showed the greatest positive performance, while financials stocks tended
to suffer the greatest price losses. In the following discussion, members of
the team responsible for managing Pioneer Research Growth Fund review the
12-month period ended August 31. Diego Franzin, Ashesh Savla and John Peckham,
CFA, discuss the factors that affected the Fund's performance over the period.
Mr. Franzin is Head of Pioneer's U.S. Quantitative Research & Management; Mr.
Savla is a Quantitative Analyst at Pioneer; and Mr. Peckham is Head of
Pioneer's U.S. Equity Research Group.
Q How did Pioneer Research Growth Fund perform during the 12 months ended
August 31, 2008?
A Research Growth Fund's Class A shares returned -10.03% at net asset value
over the period, while the Fund's benchmark, the Russell 1000 Growth Index
(the Russell Index), returned -6.77% over the same period. During the same
12-month period, the average return of the 815 funds in Lipper's Multi-Cap
Core Funds category was -10.81%.
Q What were the principal factors affecting the Fund's performance during the
12 months ended August 31, 2008?
A The deepening global credit crisis arising from problems in the domestic
subprime mortgage area created significant uncertainty in the minds of
investors, contributing to extreme volatility in the markets. The two most
volatile sectors in the market were the financials group, where stock prices
fell for the many companies directly exposed to credit problems, and the
energy group, where prices of many companies rose because of the effects of
rapidly rising oil and natural gas prices. The changes in stock prices in
those two sectors contributed most of the volatility to the overall market.
It was an unusual period in which technical factors, such as the flow of
funds, had a greater influence on the markets than did fundamental issues,
such as the underlying quality and profitability of individual companies.
Investors often based their decisions on their expectations of policy changes
by the U.S. Federal Reserve Board (the Fed), the nation's central bank. The
Fed was pulled in two different directions as it considered adjustments in
monetary policy -- the need to cut interest rates to add financial liquidity
to the financial markets -- against the need to raise interest rates to stave
off the inflationary effects of rising energy and commodity prices. While the
overall market sentiment was bearish, with stock prices falling, the period
also was
4 Pioneer Research Growth Fund | Annual Report | 8/31/08
unusual in that growth stocks tended to outperform value stocks. Typically,
growth stocks tend to outperform in bull markets when stock prices are
rising, while value stocks have often outperformed in bear markets.
Consistent with the investment style of the Fund, stock selection had the
greatest influence on performance relative to the performance of the
benchmark Russell Index. We kept the sector weightings of the Fund
consistent with the positioning of the Russell Index. The approximately 50
stocks in the portfolio included both growth and value companies, and were
selected using both qualitative research techniques and quantitative
analysis tools. We began by ranking the 100 stocks, according to Pioneer's
research analysts, with a quantitative screening process that we developed
based upon our research into the performance of stocks in 17 different
sectors and industries. We then made final selections based on the
fundamental analysis research of Pioneer's Equity Research Group.
In a volatile market, we focused on higher-quality companies that had
strong balance sheets and relatively low debt, and so the Fund was not
greatly exposed to the problems in the credit markets.
Q What types of investments most influenced the Fund's results during the
12-month period?
A Stock selections in the consumer discretionary and energy sectors had the
greatest positive influence on the Fund's results. Within the consumer
discretionary group, fast food chain McDonald's was the outstanding
performer, with its results driven by its growth in international markets. In
the energy sector, Apache, Weatherford International and Hess all benefited
from the effects of rising oil and natural gas prices. Apache is a global oil
and gas exploration and production company. Weatherford International, an oil
field services corporation, prospered as it continued to expand
internationally. We sold at a profit the Fund's position in Hess, an
integrated exploration, production, refining and marketing company, after its
stock appreciated significantly. Among other contributors, Burlington
Northern Santa Fe added to the Fund's returns as railroads gained market
share from trucking in long-distance freight hauling. The rapidly rising
price of diesel fuel was a major factor in eroding the competitiveness of big
trucks and increasing the attractiveness of shipping freight by rail.
Stocks in the financials sector tended to be the greatest drag on the
Fund's performance, with selections in information technology also
detracting from results. Among financials holdings, First Marblehead was a
significant disappointment. The company, which specializes in securitizing
student loans, was hurt when the market for securitized loans dried up in
the credit crisis. We sold the Fund's position in First Marblehead because
we thought no improvement was likely in the near term. In the information
technology area, the decision not to add Apple to the portfolio proved to
be the greatest
Pioneer Research Growth Fund | Annual Report | 8/31/08 5
detractor to the Fund's performance relative to the Russell 1000 Index. We
believed Apple, which benefited from strong sales from a variety of its
products, was overpriced relative to its underlying value, and we also had
doubts about its longer-term growth prospects.
Q What is your investment outlook?
A We intend to keep the Fund defensively positioned, especially in the
financials and consumer discretionary sectors, until we see clear evidence of
market stability. We think lending activity by financials corporations will
continue to be restricted until the real estate market begins to turn around.
Until then, rising unemployment and declining housing values should maintain
pressure on consumer activity.
We intend to maintain our emphasis on bottom-up fundamental analysis of
individual companies, as we look for corporations in all sectors of the
market that we believe have the ability to perform, even in a period of
uncertainty.
Please refer to the Schedule of Investments on pages 14-17 for a full listing
of Fund securities.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. 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 other 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.
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 opinions 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.
6 Pioneer Research Growth Fund | Annual Report | 8/31/08
Portfolio Summary | 8/31/08
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
U.S. Common Stocks 100%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Information Technology 29.4%
Industrials 13.4%
Health Care 13.3%
Consumer Staples 12.1%
Energy 11.3%
Consumer Discretionary 9.2%
Financials 4.5%
Materials 4.3%
Utilities 1.9%
Telecommunication Services 0.6%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Microsoft Corp. 4.55%
2. Cisco System, Inc. 4.40
3. Hewlett-Packard Co. 3.71
4. Oracle Corp. 3.33
5. Qualcomm, Inc. 3.28
6. Coca-Cola Co. 3.20
7. Medtronic, Inc. 3.19
8. Wal-Mart Stores, Inc. 3.02
9. Transocean Offshore, Inc. 2.76
10. United Parcel Service, Inc. 2.73
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any
securities listed.
Pioneer Research Growth Fund | Annual Report | 8/31/08 7
Prices and Distributions | 8/31/08
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 8/31/08 8/31/07
A $ 9.98 $ 12.25
- ------------------------------------------------
Class 8/31/08 7/17/08
C $ 9.97 $ 9.74
- ------------------------------------------------
Class 8/31/08 7/31/08
Y $ 9.98 $ 9.87
- ------------------------------------------------
Distributions per Share: 9/1/07-8/31/08
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ -- $ 0.8518 $ 0.3211
- ------------------------------------------------------------------------
C $ -- $ -- $ --
- ------------------------------------------------------------------------
Y $ -- $ -- $ --
- ------------------------------------------------------------------------
8 Pioneer Research Growth Fund | Annual Report | 8/31/08
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 Research Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of August 31, 2008)
- ------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- ------------------------------------------------------------------------
Life-of-Class
(12/15/05) 3.77% 1.53%
1 Year -10.03 -15.22
- ------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- -------------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------------
13.49% 1.25%
- ------------------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Pioneer Research Russell 1000
Growth Fund Growth Index
12/05 9425 10000
9779 10022
8/07 11803 11796
8/08 10619 10998
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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 Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
Pioneer Research Growth Fund | Annual Report | 8/31/08 9
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 Research Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of August 31, 2008)
- ---------------------------------------------------------------
If If
Period Held Redeemed
- ---------------------------------------------------------------
Life-of-Class
(7/16/08) 2.36% 1.36%
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- ----------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------
14.24% 2.15%
- ---------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Pioneer Research Russell 1000
Growth Fund Growth Index
7/08 10000 10000
8/08 10105 10108
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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 Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
10 Pioneer Research Growth 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 Research Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of August 31, 2008)
- ------------------------------------------------------------------
If If
Period Held Redeemed
- ------------------------------------------------------------------
Life-of-Class
(12/15/05) 3.77% 3.77%
1 Year -10.03 -10.03
- ------------------------------------------------------------------
Expense Ratio
(Per prospectus dated July 16, 2008)
- ------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------
4.50% 0.90%
- ------------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Pioneer Research Russell 1000
Growth Fund Growth Index
12/05 10000 10000
10377 10022
8/07 12524 11796
8/08 11268 10998
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.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/10 for Class Y Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
Pioneer Research Growth Fund | Annual Report | 8/31/08 11
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 Research Value Fund
Based on actual returns from March 1, 2008 through August 31, 2008.
- --------------------------------------------------------------------------------
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/08
- --------------------------------------------------------------------------------
Ending Account Value $ 967.00 $ 1,023.60 $ 1,021.50
(after expenses) on 8/31/08
- --------------------------------------------------------------------------------
Expenses Paid $ 6.18 $ 2.38 $ 0.80
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 1.83%,
and 0.90% multiplied by the average account value over the period,
multiplied by 184/366 for Class A, 47/366 for Class C, and 32/366 for Class
Y (to reflect the partial year period).
12 Pioneer Research Growth 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 Research Growth 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 C Y
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/1/08
- --------------------------------------------------------------------------------
Ending Account Value $ 1,018.85 $ 1,004.07 $ 1,003.58
(after expenses) on 8/31/08
- --------------------------------------------------------------------------------
Expenses Paid $ 6.34 $ 2.35 $ 0.79
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 1.83%,
and 0.90% multiplied by the average account value over the period,
multiplied by 184/366 for Class A, 47/366 for Class C, and 32/366 for Class
Y (to reflect the partial year period).
Pioneer Research Growth Fund | Annual Report | 8/31/08 13
Schedule of Investments | 8/31/08
Shares Value
COMMON STOCKS -- 97.3%
ENERGY -- 11.0%
Oil & Gas Drilling -- 2.7%
224 Transocean Offshore, Inc.* $ 28,493
- -------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 2.4%
671 Weatherford International, Inc.* $ 25,887
- -------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 3.9%
163 Apache Corp. $ 18,644
442 XTO Energy, Inc. 22,281
----------
$ 40,925
- -------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 2.0%
1,266 EL PASO Corp. $ 21,218
----------
Total Energy $ 116,523
- -------------------------------------------------------------------------
MATERIALS -- 4.2%
Diversified Chemical -- 0.9%
281 Dow Chemical Co. $ 9,591
- -------------------------------------------------------------------------
Diversified Metals & Mining -- 1.9%
230 Freeport-McMoRan Copper & Gold, Inc. (Class B) $ 20,544
- -------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 1.4%
82 Potash Corp. Saskatchewan, Inc. $ 14,235
----------
Total Materials $ 44,370
- -------------------------------------------------------------------------
CAPITAL GOODS -- 8.2%
Aerospace & Defense -- 2.4%
397 United Technologies Corp. $ 26,039
- -------------------------------------------------------------------------
Construction & Engineering -- 1.5%
663 KBR, Inc. $ 16,277
- -------------------------------------------------------------------------
Industrial Conglomerates -- 2.2%
327 3M Co. $ 23,413
- -------------------------------------------------------------------------
Industrial Machinery -- 2.1%
264 Crane Co. $ 9,694
101 SPX Corp. 12,044
----------
$ 21,738
----------
Total Capital Goods $ 87,467
- -------------------------------------------------------------------------
TRANSPORTATION -- 4.8%
Air Freight & Couriers -- 2.7%
440 United Parcel Service, Inc. $ 28,213
- -------------------------------------------------------------------------
Railroads -- 2.1%
209 Burlington Northern, Inc. $ 22,447
----------
Total Transportation $ 50,660
- -------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Research Growth Fund | Annual Report | 8/31/08
Shares Value
CONSUMER SERVICES -- 4.6%
Restaurants -- 4.6%
397 McDonald's Corp. $ 24,634
675 Yum! Brands, Inc. 24,084
----------
$ 48,718
----------
Total Consumer Services $ 48,718
- -----------------------------------------------------------------
MEDIA -- 2.2%
Movies & Entertainment -- 2.2%
793 Viacom, Inc. (Class B)* $ 23,378
----------
Total Media $ 23,378
- -----------------------------------------------------------------
RETAILING -- 2.2%
Apparel Retail -- 2.2%
637 TJX Companies, Inc. $ 23,085
----------
Total Retailing $ 23,085
- -----------------------------------------------------------------
FOOD & DRUG RETAILING -- 4.7%
Drug Retail -- 1.8%
522 CVS Corp. $ 19,105
- -----------------------------------------------------------------
Hypermarkets & Supercenters -- 2.9%
527 Wal-Mart Stores, Inc. $ 31,130
----------
Total Food & Drug Retailing $ 50,235
- -----------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 4.9%
Soft Drinks -- 3.1%
635 Coca-Cola Co. $ 33,064
- -----------------------------------------------------------------
Tobacco -- 1.8%
265 Lorillard, Inc. $ 19,144
----------
Total Food, Beverage & Tobacco $ 52,208
- -----------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.1%
Personal Products -- 2.1%
449 Estee Lauder Co. $ 22,347
----------
Total Household & Personal Products $ 22,347
- -----------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.7%
Health Care Equipment -- 3.9%
602 Medtronic, Inc. $ 32,869
332 Thoratec Corp.* 8,844
----------
$ 41,713
- -----------------------------------------------------------------
Managed Health Care -- 1.8%
440 CIGNA Corp.* $ 18,427
----------
Total Health Care Equipment & Services $ 60,140
- -----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Research Growth Fund | Annual Report | 8/31/08 15
Schedule of Investments | 8/31/08 (continued)
Shares Value
PHARMACEUTICALS & BIOTECHNOLOGY -- 7.2%
Biotechnology -- 3.0%
415 Cubist Pharmaceuticals, Inc.* $ 9,142
240 Genentech, Inc.* 23,700
----------
$ 32,842
- ----------------------------------------------------------------
Life Sciences Tools & Services -- 2.4%
418 Thermo Fisher Scientific, Inc.* $ 25,314
- ----------------------------------------------------------------
Pharmaceuticals -- 1.8%
404 Eli Lilly & Co. $ 18,847
----------
Total Pharmaceuticals & Biotechnology $ 77,003
- ----------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.0%
Specialized Finance -- 2.0%
237 IntercontinentalExchange, Inc.* $ 20,863
----------
Total Diversified Financials $ 20,863
- ----------------------------------------------------------------
INSURANCE -- 1.4%
Property & Casualty Insurance -- 1.4%
329 The Traveler Companies, Inc. $ 14,529
----------
Total Insurance $ 14,529
- ----------------------------------------------------------------
REAL ESTATE -- 1.1%
Retail Real Estate Investment Trust -- 1.1%
121 Simon Property Group $ 11,480
----------
Total Real Estate $ 11,480
- ----------------------------------------------------------------
SOFTWARE & SERVICES -- 11.9%
Application Software -- 1.8%
643 Citrix Systems, Inc.* $ 19,464
- ----------------------------------------------------------------
Internet Software & Services -- 2.4%
1,312 Yahoo!, Inc.* $ 25,427
- ----------------------------------------------------------------
Systems Software -- 7.7%
1,721 Microsoft Corp. $ 46,966
1,566 Oracle Corp.* 34,342
----------
$ 81,308
----------
Total Software & Services $ 126,199
- ----------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 12.8%
Communications Equipment -- 9.2%
1,886 Cisco Systems, Inc.* $ 45,358
873 Corning, Inc. 17,931
643 Qualcomm, Inc. 33,854
----------
$ 97,143
- ----------------------------------------------------------------
Computer Hardware -- 3.6%
815 Hewlett-Packard Co. $ 38,240
----------
Total Technology Hardware & Equipment $ 135,383
- ----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Research Growth Fund | Annual Report | 8/31/08
Shares Value
SEMICONDUCTORS -- 3.9%
Semiconductor Equipment -- 2.2%
1,296 Applied Materials, Inc. $ 23,224
- ---------------------------------------------------------------
Semiconductors -- 1.7%
667 Analog Devices, Inc. $ 18,649
----------
Total Semiconductors $ 41,873
- ---------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.6%
Alternative Carriers -- 0.6%
420 Time Warner Telecom, Inc.* $ 6,443
----------
Total Telecommunication Services $ 6,443
- ---------------------------------------------------------------
UTILITIES -- 1.8%
Independent Power Producer & Energy Traders -- 1.8%
506 NRG Energy, Inc.* $ 19,046
----------
Total Utilities $ 19,046
- ---------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,014,009) $1,031,950
- ---------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 97.3%
(Cost $1,014,009) (a) $1,031,950
- ---------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 2.7% $ 28,213
- ---------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,060,163
===============================================================
* Non-income producing security.
(a) At August 31, 2008, the net unrealized gain on investments based on cost for
federal income tax purposes of $1,015,170 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 51,278
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (34,498)
---------
Net unrealized gain $ 16,780
=========
Purchases and sales of securities (excluding temporary cash investments) for
the year ended August 31, 2008 aggregated $1,066,210 and $590,243,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Research Growth Fund | Annual Report | 8/31/08 17
Statement of Assets and Liabilities | 8/31/08
ASSETS:
Investment in securities
(cost $1,014,009) $1,031,950
Cash 34,213
Receivables --
Investment securities sold 51,654
Dividends, interest and foreign taxes withheld 1,910
Due from Pioneer Investment Management, Inc. 31,851
Other 26,883
- ----------------------------------------------------------------
Total assets $1,178,461
- ----------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 78,295
Accrued expenses 40,003
- ----------------------------------------------------------------
Total liabilities $ 118,298
- ----------------------------------------------------------------
NET ASSETS:
Paid-in capital $1,058,645
Undistributed net investment income 1,615
Accumulated net realized loss on investments (18,038)
Net unrealized gain on investments 17,941
- ----------------------------------------------------------------
Total net assets $1,060,163
================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $551,293/ 55,218 shares) $ 9.98
Class C (based on $255,960/25,667 shares) $ 9.97
Class Y (based on $252,910/25,329 shares) $ 9.98
MAXIMUM OFFERING PRICE:
Class A ($9.98 [divided by] 94.25%) $ 10.59
================================================================
The accompanying notes are an integral part of these financial statements.
18 Pioneer Research Growth 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 $14) $8,936
Interest 646
Income from securities loaned, net 168
- -----------------------------------------------------------------------------------
Total investment income $ 9,750
- -----------------------------------------------------------------------------------
EXPENSES:
Management fees $4,819
Transfer agent fees and expenses
Class A 673
Distribution fees
Class A 834
Class C 304
Administrative fees 145
Custodian fees 19,066
Registration fees 20,721
Professional fees 41,707
Printing expense 13,602
Fees and expenses of nonaffiliated trustees 7,203
Miscellaneous 1,489
- -----------------------------------------------------------------------------------
Total expenses $ 110,563
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (102,431)
- -----------------------------------------------------------------------------------
Net expenses $ 8,132
- -----------------------------------------------------------------------------------
Net investment income $ 1,618
- -----------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss on investments $ (5,997)
- -----------------------------------------------------------------------------------
Change in net unrealized gain on investments $ (48,085)
- -----------------------------------------------------------------------------------
Net loss on investments $ (54,082)
- -----------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (52,464)
===================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Research Growth Fund | Annual Report | 8/31/08 19
Statement of Changes in Net Assets
For the Years Ended 8/31/08 and 8/31/07, respectively
Year Ended Year Ended
8/31/08 8/31/07
FROM OPERATIONS:
Net investment income $ 1,618 $ 511
Net realized gain (loss) on investments (5,997) 46,434
Change in net unrealized gain (loss) on investments (48,085) 58,207
- --------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ (52,464) $105,152
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.00 and $0.03 per share, respectively) $ -- $ (1,640)
Net realized gain:
Class A ($1.17 and $0.00 per share, respectively) (58,645) --
- --------------------------------------------------------------------------------------
Total distributions to shareowners $ (58,645) $ (1,640)
- --------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $1,038,085 $ --
Reinvestment of distributions 58,645 --
Cost of shares repurchased (538,085) --
- --------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund share
transactions $ 558,645 $ --
- --------------------------------------------------------------------------------------
Net increase in net assets $ 447,536 $103,512
NET ASSETS:
Beginning of year 612,627 509,115
- --------------------------------------------------------------------------------------
End of year $1,060,163 $612,627
- --------------------------------------------------------------------------------------
Undistributed net investment income $ 1,615 $ --
- --------------------------------------------------------------------------------------
'08 Shares '08 Amount
Class A
Shares sold 55,218 $ 538,085
Reinvestment of distributions 5,218 58,645
Less shares repurchased (55,218) (538,085)
- --------------------------------------------------------------
Net increase 5,218 $ 58,645
==============================================================
Class C*
Shares sold 25,667 $ 250,000
- --------------------------------------------------------------
Net increase 25,667 $ 250,000
==============================================================
Class Y*
Shares sold 25,329 $ 250,000
- --------------------------------------------------------------
Net increase 25,329 $ 250,000
==============================================================
* Class C shares were first publicly offered on July 17, 2008.
* Class Y shares were first publicly offered on July 31, 2008.
The accompanying notes are an integral part of these financial statements.
20 Pioneer Research Growth Fund | Annual Report | 8/31/08
Financial Highlights
Year Year
Ended Ended 12/15/05 (a)
8/31/08 8/31/07 to 8/31/06
Class A
Net asset value, beginning of period $ 12.25 $ 10.18 $ 10.00
- ---------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.02 $ 0.01 $ 0.02
Net realized and unrealized gain (loss) on
investments (1.12) 2.09 0.16
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ (1.10) $ 2.10 $ 0.18
Distributions to shareowners:
Net investment income -- (0.03) --
Net realized gain (1.17) -- --
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.27) $ 2.07 $ 0.18
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.98 $ 12.25 $ 10.18
===================================================================================================
Total return* (10.03)% 20.69% 1.80%(b)
Ratio of net expenses to average net assets 1.25% 1.25% 1.25%**
Ratio of net investment income to average
net assets 0.22% 0.09% 0.30%**
Portfolio turnover rate 92% 95% 73%(b)
Net assets, end of period (in thousands) $ 551 $ 613 $ 509
Ratios with no waiver of fees and assumption of
expenses by PIM and no reduction for fees
paid indirectly
Net expenses 16.35% 13.49% 21.63%**
Net investment loss (14.88)% (12.15)% (20.08)%**
===================================================================================================
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Research Growth Fund | Annual Report | 8/31/08 21
Financial Highlights (continued)
7/17/08 (a)
to 8/31/08
Class C
Net asset value, beginning of period $ 9.74
- -----------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.00(c)
Net realized and unrealized gain on investments 0.23
- -----------------------------------------------------------------------------------
Net increase from investment operations $ 0.23
- -----------------------------------------------------------------------------------
Net increase in net asset value $ 0.23
- -----------------------------------------------------------------------------------
Net asset value, end of period $ 9.97
===================================================================================
Total return* 2.36%(b)
Ratio of net expenses to average net assets 1.83%**
Ratio of net investment income to average net assets (0.05)%**
Portfolio turnover rate 92%(b)
Net assets, end of period (in thousands) $ 256
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly
Net expenses 30.50%**
Net investment loss (28.72)%**
===================================================================================
(a) Class C shares were first publicly offered on July 17, 2008.
(b) Not annualized.
(c) The amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Research Growth Fund | Annual Report | 8/31/08
7/31/08 (a)
to 8/31/08
Class Y
Net asset value, beginning of period $ 9.87
- -----------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.01
Net realized and unrealized gain on investments 0.10
- -----------------------------------------------------------------------------------
Net increase from investment operations $ 0.11
- -----------------------------------------------------------------------------------
Net increase in net asset value $ 0.11
- -----------------------------------------------------------------------------------
Net asset value, end of period $ 9.98
===================================================================================
Total return* 1.11%(b)
Ratio of net expenses to average net assets 0.90%**
Ratio of net investment income to average net assets 1.60%**
Portfolio turnover rate 92%(b)
Net assets, end of period (in thousands) $ 253
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly
Net expenses 20.69%**
Net investment loss (18.19)%**
===================================================================================
(a) Class Y shares were first publicly offered on July 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Research Growth Fund | Annual Report | 8/31/08 23
Notes to Financial Statements | 8/31/08
1. Organization and Significant Accounting Policies
Pioneer Select Research Growth Fund, formerly Pioneer Select Research Growth
Fund, (the Fund) is one of five portfolios comprising Pioneer Series Trust V, a
Delaware statutory trust registered under the Investment Company Act of 1940 as
a diversified, open-end management investment company. The Fund was organized
on October 12, 2005, and commenced operations on December 15, 2005. The Fund's
investment objective is long-term capital growth.
The Fund offers three classes of shares - Class A, Class C and Class Y shares.
Class C and Class Y shares were first publicly offered on July 17, 2008 and
July 31, 2008, respectively. Each class of shares represents and interest in
the same portfolio of investments of the Fund and has equal rights to voting,
redemptions, dividends and liquidation, except that the level of transfer agent
and distribution fees may differ among classes. Class A and Class C shareowners
have exclusive voting rights with respect to the distribution plan for each
class. There is no distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. 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:
24 Pioneer Research Growth Fund | Annual Report | 8/31/08
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities are valued at the last sale price on the
principal exchange where they are traded. Securities that have not traded on
the date of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of, the Board
of Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. The Fund may also use the fair value of a
security including a non-U.S. security when the closing market price on the
principal exchange where the security is traded no longer reflects the value
of the security. At August 31, 2008, there were no securities fair valued.
Temporary cash investments are valued at cost which approximates market
value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in the
exercise of reasonable diligence. Interest income, 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. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. All tax
returns filed thus far are open (subject to examination by tax authorities).
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Fund's distributions may be shown in
the accompanying financial statements as from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
Pioneer Research Growth Fund | Annual Report | 8/31/08 25
The Fund has elected to defer $16,877 of capital losses recognized between
November 1, 2007 and August 31, 2008 to its fiscal year ending August 31,
2009.
At August 31, 2008, the Fund has reclassified $3 to decrease accumulated net
realized loss on investments and $3 to decrease undistributed net investment
income to reflect permanent book/tax differences. The reclassification has no
impact on the net assets of the Fund and presents the Fund's capital accounts
on a tax basis.
The tax character of distributions paid during the years ended August 31,
2008 and August 31, 2007 were as follows.
2008 2007
Distributions paid from:
Ordinary income $42,593 $1,640
Long term capital gain 16,052 --
- ------------------------------------------------
Total $58,645 $1,640
================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2008:
2008
Distributable earnings:
Undistributed ordinary income $ 1,615
Current year post October loss deferred (16,877)
Unrealized appreciation 16,780
- ----------------------------------------------------
Total $ 1,518
====================================================
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned no underwriting commissions on the sale of Class A shares during the
year ended August 31, 2008.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the 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, 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).
26 Pioneer Research Growth Fund | Annual Report | 8/31/08
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, on the same day, and in the
same amount, except that Class A, Class C, and Class Y shares bear different
transfer agent and distribution expense rates.
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a loan, the Fund receives
collateral and earns income in the form of negotiated lenders' fees. The Fund
also continues to receive interest or payments in lieu of dividends on the
securities loaned. Gain or loss on the fair value of the loaned securities
that may occur during the term of the loan will be for the account of the
Fund. The loans are secured by collateral which is required to be at least
102%, at all times, of the fair value of the securities loaned. The amount of
collateral is required to be adjusted daily to reflect any price fluctuation
in the value of the loaned securities. The Fund has the right under the
lending agreement to recover the securities from the borrower on demand. The
Fund invests cash collateral in cash equivalent investments. Securities
lending collateral is managed by Credit Suisse, Inc.
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 0.75% of the Fund's average daily net assets up to
$1 billion and 0.70% on assets over $1 billion. For the year ended August 31,
2008, the net management fee was equivalent to 0.75% of the average daily net
assets.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Fund expenses to 1.25%, 2.15% and 0.90% of the
average daily net assets attributable to Class A, Class C and Class Y shares,
respectively. These expense limitations are in effect through January 1, 2011
for Class A shares and through January 1, 2009 for Class C and January 1, 2010
for Class Y shares. In addition, under the management and administration
agreements, 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 $1,093 in management fees,
administrative costs and certain other services payable from PIM at August 31,
2008.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly
owned indirect subsidiary of UniCredit, provides substantially all transfer
agent and shareowner services to the Fund at negotiated rates. Included in
Pioneer Research Growth Fund | Annual Report | 8/31/08 27
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$127 in transfer agent fees payable to PIMSS at August 31, 2008.
4. Distribution Plan
The Fund adopted a Plan of Distribution for Class A and Class C shares (Class A
Plan, and Class C Plan) in accordance with Rule 12b-1 under the Investment
Company Act of 1940. Effective February 1, 2008, under the Class A Plan, the
Fund pays PFD a service fee equal to 0.25% of the average daily net assets
attributable to Class A shares to finance activities primarily intended to
result in the sale of Class A shares. Prior to February 1, 2008, PFD was
reimbursed for service fees in an amount up to 0.25% of the average daily net
assets attributable to Class A shares. Pursuant to the Class C Plan, the Fund
pays PFD 1.00% of the average daily net assets attributable to each class of
shares. The fee consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance services
or distribution services with regard to Class C shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $32 in
distribution fees payable to PFD at August 31, 2008.
In addition, redemptions of Class A and Class C 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. Redemptions of Class C shares within one year of purchase
are subject to a CDSC of 1.00%. There is no CDSC for Class Y Shares. Proceeds
from the CDSCs are paid to PFD. For the year ended August 31, 2008, no CDSCs
were paid to PFD.
5. New Pronouncements
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statement disclosures.
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.
28 Pioneer Research Growth Fund | Annual Report | 8/31/08
Report of Independent Registered Public Accounting Firm
To the Trustees of Pioneer Series Trust V and
Shareholders of Pioneer Research Growth Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Research Growth Fund (the Fund, formerly Pioneer Select Research Growth Fund)
(one of the portfolios constituting Pioneer Series Trust V), 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 Research Growth 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 Research Growth Fund | Annual Report | 8/31/08 29
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 2007 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 17.10%.
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 0.0% and 96.34%, 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 (or, with respect to certain proposals, by shareholders
of Pioneer Series Trust V (the "Trust"), as noted below) follows:
Broker
For Withhold Abstain Non-Votes
Proposal 1 -- To elect Trustees*
John F. Cogan, Jr. 3,405,267.390 55,065.192 0.000 0.000
Daniel K. Kingsbury 3,405,267.390 55,065.192 0.000 0.000
David R. Bock 3,405,267.390 55,065.192 0.000 0.000
Mary K. Bush 3,405,267.390 55,065.192 0.000 0.000
Benjamin M. Friedman 3,405,267.390 52,896.409 2,168.783 0.000
Margaret B.W. Graham 3,405,267.390 55,065.192 0.000 0.000
Thomas J. Perna 3,405,267.390 55,065.192 0.000 0.000
Marguerite A. Piret 3,405,267.390 55,065.192 0.000 0.000
Stephen K. West 3,405,267.390 55,065.192 0.000 0.000
John Winthrop 3,405,267.390 55,065.192 0.000 0.000
Broker
For Against Abstain Non-Votes
Proposal 2 -- To approve an
amendment to the
Declaration of Trust* 2,342,477.355 299,534.822 36,093.405 782,227.000
Broker
For Against Abstain Non-Votes
Proposal 3A -- To approve
changes to the Fund's
fundamental investment
policy relating to borrowing
money 55,217.527 0.000 0.000 0.000
30 Pioneer Research Growth 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 55,217.527 0.000 0.000 0.000
Proposal 3C -- To approve
changes to the Fund's
fundamental investment
policy relating to lending 55,217.527 0.000 0.000 0.000
Proposal 3D -- To approve
changes to the Fund's
fundamental investment
policy relating to issuing
senior securities 55,217.527 0.000 0.000 0.000
Proposal 3E -- To approve
changes to the Fund's
fundamental investment
policy relating to real estate 55,217.527 0.000 0.000 0.000
Proposal 3F -- To approve
changes to the Fund's
fundamental investment
policy relating to
commodities 55,217.527 0.000 0.000 0.000
Proposal 3G -- To approve
changes to the Fund's
fundamental investment
policy relating to
concentration 55,217.527 0.000 0.000 0.000
Proposal 3H -- To approve
changes to the Fund's
fundamental investment
policy relating to
diversification 55,217.527 0.000 0.000 0.000
Proposal 3I -- To approve
the conversion of the Fund's
investment objective from
fundamental to non-
fundamental 55,217.527 0.000 0.000 0.000
Broker
For Against Abstain Non-Votes
Proposal 4 -- To approve an
Amended and Restated
Management Agreement
with PIM 55,217.527 0.000 0.000 0.000
* Proposals 1 and 2 were voted on and approved by all series of the Trust.
Results reported above reflect the combined votes of all series of the
Trust.
Pioneer Research Growth Fund | Annual Report | 8/31/08 31
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
32 Pioneer Research Growth Fund | Annual Report | 8/31/08
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 noted that the
Fund commenced operations on December 15, 2005. They considered that the Fund's
annualized total return was in the first quintile of its Morningstar category
for the one year period ended June 30, 2007 and that the Fund's total return
for 2006 was in the first quintile of its Morningstar category. (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.) The Trustees concluded that the investment performance of the Fund
was satisfactory.
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
Pioneer Research Growth Fund | Annual Report | 8/31/08 33
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 first quintile relative to its
Strategic Insight peer group. 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.
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.
34 Pioneer Research Growth Fund | Annual Report | 8/31/08
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.
Pioneer Research Growth Fund | Annual Report | 8/31/08 35
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 71 of the 77 Pioneer
Funds. The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
36 Pioneer Research Growth Fund | Annual Report | 8/31/08
Interested Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
John F. Cogan, Jr. (82)* Chairman of the Board, Trustee since 2005.
Trustee and President Serves until a successor
trustee is elected or
earlier retirement or
removal.
- --------------------------------------------------------------------------------
Daniel K. Kingsbury (50)* Trustee and Executive Trustee since March
Vice President 2007. Serves until a
successor trustee is
elected or earlier retire-
ment or removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
John F. Cogan, Jr. (82)* Deputy Chairman and a Director of Pioneer Global Asset Man- None
agement S.p.A. ("PGAM"); Non-Executive Chairman and a Direc-
tor 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 Dis-
tributor, 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)* Director, CEO and President of Pioneer Investment Management None
USA Inc. (since February 2007); Director and President 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); Direc-
tor 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.
Pioneer Research Growth Fund | Annual Report | 8/31/08 37
Independent Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
David R. Bock (64) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ----------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
David R. Bock (64) Executive Vice President and Chief Financial Officer, I-trax, Inc. Director of Enterprise Com-
(publicly traded health care services company) (2004 - 2007); munity Investment, Inc.
Partner, Federal City Capital Advisors (boutique merchant bank) (privately-held affordable
(1997 to 2004 and 2008 - present); and Executive Vice Presi- housing finance company);
dent and Chief Financial Officer, Pedestal Inc. (internet-based and Director of New York
mortgage trading company) (2000 - 2002) Mortgage Trust (publicly
traded mortgage REIT)
- --------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (60) President, Bush International, LLC (international financial Director of Marriott Interna-
advisory firm) tional, Inc., Director of Dis-
cover Financial Services
(credit card issuer and elec-
tronic payment services);
Director of Briggs & Stratton
Co. (engine manufacturer);
Director of UAL Corporation
(airline holding company)
Director of Mantech Interna-
tional Corporation (national
security, defense, and
intelligence technology firm);
and Member, Board of
Governors, Investment
Company Institute
- --------------------------------------------------------------------------------------------------------------------------
38 Pioneer Research Growth Fund | Annual Report | 8/31/08
Position Held Length of Service
Name and Age with the Fund and Term of Office
Benjamin M. Friedman (64) Trustee Trustee since May,
2008. Serves until a
successor trustee is
elected or earlier retire-
ment or removal.
- ------------------------------------------------------------------------
Margaret B.W. Graham (61) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ------------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ------------------------------------------------------------------------
Marguerite A. Piret (60) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ------------------------------------------------------------------------
Stephen K. West (79) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Benjamin M. Friedman (64) Professor, Harvard University Trustee, Mellon Institutional
Funds Investment Trust and
Mellon Institutional Funds
Master Portfolio (oversees 17
portfolios in fund complex)
- -----------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (61) Founding Director, Vice-President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm); and Desautels Faculty of
Management, McGill University
- -----------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Private investor (2004 - present); and Senior Executive Vice Director of Quadriserv Inc.
President, The Bank of New York (financial and securities ser- (technology products for
vices) (1986 - 2004) securities lending industry)
- -----------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (60) President and Chief Executive Officer, Newbury, Piret & Company, Director of New America
Inc. (investment banking firm) High Income Fund, Inc.
(closed-end investment
company)
- -----------------------------------------------------------------------------------------------------------------------------
Stephen K. West (79) Senior Counsel, Sullivan & Cromwell LLP (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end
investment company)
- -----------------------------------------------------------------------------------------------------------------------------
Pioneer Research Growth Fund | Annual Report | 8/31/08 39
Independent Trustees (continued)
Position Held Length of Service
Name and Age with the Fund and Term of Office
John Winthrop (71) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ---------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
John Winthrop (71) President, John Winthrop & Co., Inc. None
(private investment firm)
- --------------------------------------------------------------------------------------------
40 Pioneer Research Growth Fund | Annual Report | 8/31/08
Fund Officers
Position Held Length of Service
Name and Age with the Fund and Term of Office
Dorothy E. Bourassa (60) Secretary Since 2005. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------
Christopher J. Kelley (43) Assistant Secretary Since 2005. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------
Mark E. Bradley (48) Treasurer Since March 2008.
Serves at the discretion
of the Board
- -----------------------------------------------------------------------------
Luis I. Presutti (43) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------
Fund Officers
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Dorothy E. Bourassa (60) Secretary of PIM-USA; Senior Vice President - Legal of Pioneer; None
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) Associate General Counsel of Pioneer since January 2008 and None
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) Vice President - Fund Accounting, Administration and Controller- None
ship 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 Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ----------------------------------------------------------------------------------------------------------------------
Pioneer Research Growth Fund | Annual Report | 8/31/08 41
Fund Officers (continued)
Position Held Length of Service
Name and Age with the Fund and Term of Office
Gary Sullivan (50) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------------
Teri W. Anderholm (49) Chief Compliance Officer Since January 2007.
Serves at the discretion
of the Board
- -----------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Gary Sullivan (50) Fund Accounting Manager - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Fund Administration Manager - Fund Accounting, Administration None
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 Officer of Pioneer since December 2006 and of None
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)
- ------------------------------------------------------------------------------------------------------------------------
42 Pioneer Research Growth Fund | Annual Report | 8/31/08
This page for your notes.
Pioneer Research Growth Fund | Annual Report | 8/31/08 43
This page for your notes.
44 Pioneer Research Growth 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.
Pioneer Research
Value Fund
- --------------------------------------------------------------------------------
Annual Report | August 31, 2008
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A SERSX
Class C PRVCX
Class Y PRUYX
[Logo]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 12
Schedule of Investments 14
Financial Statements 20
Notes to Financial Statements 26
Report of Independent Registered Public Accounting Firm 32
Approval of Investment Advisory Agreement 35
Trustees, Officers and Service Providers 39
Pioneer Research Value 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
see potential chances for making money in many corners of the market, it takes
2 Pioneer Research Value Fund | Annual Report | 8/31/08
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 Research Value Fund | Annual Report | 8/31/08 3
Portfolio Management Discussion | 8/31/08
Driven by growing fears about the effects of a global credit crisis that began
with problems over U.S. subprime mortgages, prices of most domestic stocks fell
over the 12 months ended August 31, 2008. In a highly volatile market, energy
stocks showed the greatest positive performance, while financials stocks tended
to suffer the greatest price losses. In the following discussion, members of
the team responsible for managing Pioneer Research Value Fund review the
12-month period ended August 31, 2008. Diego Franzin, Ashesh Savla and John
Peckham, CFA, discuss the factors that affected the Fund's performance over the
period. Mr. Franzin is Head of Pioneer's U.S. Quantitative Research &
Management; Mr. Savla is a Quantitative Analyst at Pioneer; and Mr. Peckham is
Head of Pioneer's U.S. Equity Research Group.
Q How did Pioneer Research Value Fund perform during the 12 months ended
August 31, 2008?
A Research Value Fund's Class A shares returned -13.34% at net asset value
over the period, while the Fund's benchmark, the Russell 1000 Value Index
(the Russell Index), returned -14.66% during the same period. Over the same
12 months, the average return of the 845 funds in Lipper's Large-Cap Core
Funds category was -10.64%
Q What were the principal factors affecting the Fund's performance during the
12 months ended August 31, 2008?
A The deepening global credit crisis arising from problems in the domestic
subprime mortgage area created significant uncertainty in the minds of
investors, contributing to extreme volatility in the markets. The two most
volatile sectors in the market were the financials group, where stock
prices fell for the many companies directly exposed to credit problems, and
the energy group, where prices of many companies rose because of the
effects of rapidly rising oil and natural gas prices. The changes in stock
prices in those two sectors contributed most of the volatility to the
market. It was an unusual period in which technical factors, such as the
flow of funds, had a greater influence on the markets than did fundamental
issues, such as the underlying quality and profitability of individual
companies. Investors often based their decisions on their expectations of
policy changes by the U.S. Federal Reserve Board (the Fed), the nation's
central bank. The Fed was pulled in two different directions as it
considered adjustments in monetary policy -- the need to cut interest rates
to add financial liquidity to the financial markets -- against the need to
raise interest rates to stave off the inflationary effects of rising energy
and commodity prices. While the overall market sentiment was bearish, with
stock prices falling, the period also was
4 Pioneer Research Value Fund | Annual Report | 8/31/08
unusual in that growth stocks tended to outperform value stocks. Typically,
growth stocks tend to outperform in bull markets, when stock prices are
rising, while value stocks have often outperformed in bear markets.
Consistent with the investment style of the Fund, stock selection had the
greatest influence on performance relative to the benchmark Russell Index.
We kept the Fund's sector weightings consistent with the positioning of the
Russell Index. The approximately 50 stocks in the portfolio included both
growth and value companies, and were selected using both qualitative
research techniques and quantitative analysis tools. We began by ranking
the 100 stocks, according to Pioneer's research analysts, with a
quantitative screening process that we developed based upon our research
into the performance of stocks in 17 different sectors and industries. We
then made final selections based on the fundamental analysis research of
Pioneer's Equity Research Group.
In a volatile market, we focused on higher-quality companies that had
strong balance sheets and relatively low debt, and so the Fund was not
greatly exposed to the problems in the credit markets.
Q What types of investments most influenced the Fund's results over the 12
months ended August 31, 2008?
A The Fund's positions in the industrials, utilities and energy sectors had
the greatest positive effects on results. Within the industrials group, the
Fund's holding in SPX, a specialist in major energy-related infrastructure
projects, substantially helped performance. SPX benefited from investments
in power infrastructure globally, including in emerging markets. The
decision not to add General Electric (GE) to the portfolio also helped the
Fund's relative performance. We avoided GE primarily because of the
diversified corporation's exposure to the credit markets. Among the Fund's
utilities holdings, an investment in Questar provided a significant
performance boost. A gas utility, Questar also has significant natural gas
exploration and production operations, which were helped by increasing
natural gas prices. In energy, Apache and Weatherford International were
particularly strong performers, as both benefited from the significant
increases in oil and natural gas prices. Apache is a global oil and gas
exploration and production company. Weatherford International, an oil field
services corporation, prospered as it continued to expand internationally.
Investments in the health care and financials sectors proved to be the
greatest drag on the Fund's performance. In health care, the most notable
disappointments were Merck and Schering-Plough, two large pharmaceutical
companies. Their stock valuations fell after questions arose about the
effectiveness of Zetia and Vytorin, anti-cholesterol drugs in which both
companies had an interest. In the financials sector, the greatest
detractors were the Fund's investments in First Marblehead and Freddie Mac.
First
Pioneer Research Value Fund | Annual Report | 8/31/08 5
Marblehead, which specializes in securitizing student loans, was hurt when
the market for securitized loans dried up in the credit crisis. Freddie
Mac, the giant government-sponsored mortgage institution, fell victim to
the effects of the subprime mortgage crisis. We liquidated the Fund's
investments in both companies before the end of the fiscal year (August
31). However, we maintained the Fund's investment in another financials
corporation that hurt results: Zions Bancorporation, a bank holding company
based in Utah with significant mortgage exposure in California, Nevada and
Arizona, which was hurt by the downturn in real estate activity in those
states. We maintained the Fund's position because we think Zions is a well
managed company with good potential to gain market share over the longer
term.
Q What is your investment outlook?
A We intend to keep the Fund defensively positioned, especially in the
financials and consumer discretionary sectors, until we see clear evidence
of market stability. We think lending activity by financials corporations
will continue to be restricted until the real estate market begins to turn
around. Until then, rising unemployment and declining housing values should
maintain pressure on consumer activity.
We intend to maintain our emphasis on bottom-up fundamental analysis of
individual companies, as we look for corporations in all sectors of the
market that we believe have the ability to perform, even in a period of
uncertainty.
Please refer to the Schedule of Investments on pages 14-19 for a full listing
of Fund securities.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. 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 other 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.
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 opinions 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.
6 Pioneer Research Value Fund | Annual Report | 8/31/08
Portfolio Summary | 8/31/08
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
U.S Common Stocks 98.3%
Temporary Cash Investment 1.7%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Financials 26.5%
Energy 15.6%
Health Care 11.7%
Industrials 10.0%
Consumer Discretionary 8.6%
Customer Staples 8.3%
Utilities 6.3%
Telecommunication Services 5.4%
Materials 4.1%
Information Technology 3.5%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Chevron Corp. 4.75%
2. Johnson & Johnson Co. 4.47
3. Verizon Communications, Inc. 3.67
4. The Walt Disney Co. 2.96
5. The Bank of New York Mellon Corp. 2.83
6. PNC Bank Corp. 2.78
7. Eli Lilly & Co. 2.76
8. Apache Corp. 2.76
9. Norfolk Southern Corp. 2.69
10. United Technologies Corp. 2.53
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any
securities listed.
Pioneer Research Value Fund | Annual Report | 8/31/08 7
Prices and Distributions | 8/31/08
Net Asset Value per Share
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class 8/31/08 8/31/07
- --------------------------------------------------------------------------------
A $ 9.61 $ 11.99
- --------------------------------------------------------------------------------
Class 8/31/08 7/17/08
- --------------------------------------------------------------------------------
C $ 9.61 $ 9.34
- --------------------------------------------------------------------------------
Class 8/31/08 7/31/08
- --------------------------------------------------------------------------------
Y $ 9.62 $ 9.57
Distributions per Share: 9/1/07-8/31/08
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ 0.1137 $ 0.3319 $ 0.4349
- --------------------------------------------------------------------------------
C $ -- $ -- $ --
- --------------------------------------------------------------------------------
Y $ -- $ -- $ --
- --------------------------------------------------------------------------------
8 Pioneer Research Value Fund | Annual Report | 8/31/08
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 Research Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of August 31, 2008)
- ------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- ------------------------------------------------------------------------
Life-of-Class
(12/15/05) 2.77% 0.55%
1 Year -13.34 -18.31
- ------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- ------------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------------
13.35% 1.25%
- ------------------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Research Russell 1000
Value Fund Value Index
12/05 9,425 10,000
10,181 11,098
8/07 11,835 12,524
8/08 10,257 10,688
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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 Russell 1000(R) Value Index measures the performance of large-cap U.S.
value stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
Pioneer Research Value Fund | Annual Report | 8/31/08 9
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 Research Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of August 31, 2008)
- ---------------------------------------------------------------
If If
Period Held Redeemed
- ---------------------------------------------------------------
Life-of-Class
(7/16/08) 2.89% 1.89%
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated December 31, 2007)
- ---------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------
14.10% 2.15%
- ---------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Research Russell 1000
Value Fund Value Index
7/08 10,000 10,000
8/08 10,048 10,170
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 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 Russell 1000(R) Value Index measures the performance of large-cap U.S.
value stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
10 Pioneer Research Value 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 Research Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of August 31, 2008)
- ------------------------------------------------------------------
If If
Period Held Redeemed
- ------------------------------------------------------------------
Life-of-Class
(12/15/05) 2.85% 2.85%
1 Year -13.16 -13.16
- ------------------------------------------------------------------
Expense Ratio
(Per prospectus dated July 16, 2008)
- ------------------------------------------------------------------
Gross Net
- ------------------------------------------------------------------
4.50% 0.90%
- ------------------------------------------------------------------
[THE FOLLOWING DATA IS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment
Pioneer Research Russell 1000
Value Fund Value Index
12/05 10,000 10,000
10,798 11,098
8/07 12,552 12,524
8/08 10,901 10,688
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.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/10 for Class Y Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000(R) Value Index measures the performance of large-cap U.S.
value stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in any index.
Pioneer Research Value Fund | Annual Report | 8/31/08 11
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 Research Value Fund
Based on actual returns from March 1, 2008 through August 31, 2008.
- --------------------------------------------------------------------------------
Actual
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/01/08
- --------------------------------------------------------------------------------
Ending Account Value $ 951.37 $ 1,023.40 $ 1,015.80
(after expenses) on 8/31/08
- --------------------------------------------------------------------------------
Expenses Paid $ 6.13 $ 2.73 $ 0.79
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%,
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/366 for Class A, 46/366 for Class C and 32/366 for Class Y (to reflect
the partial year period).
12 Pioneer Research Value 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 Research Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2008 through August 31, 2008.
- --------------------------------------------------------------------------------
Hypothetical
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 3/01/08
- --------------------------------------------------------------------------------
Ending Account Value $ 1,018.85 $ 1,129.27 $ 1,178.45
(after expenses) on 8/31/08
- --------------------------------------------------------------------------------
Expenses Paid $ 6.34 $ 2.88 $ 0.86
During Period*
- --------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%,
and 0.90% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/366 for Class A, 46/366 for Class C and 32/366 for Class Y (to reflect
the partial year period).
Pioneer Research Value Fund | Annual Report | 8/31/08 13
Schedule of Investments | 8/31/08
Shares Value
COMMON STOCKS -- 97.9%
ENERGY -- 15.2%
Integrated Oil & Gas -- 6.9%
555 Chevron Corp. $ 47,908
525 USX-Marathon Group, Inc. 23,662
----------
$ 71,570
- -----------------------------------------------------------
Oil & Gas Equipment & Services -- 1.5%
408 Weatherford International, Inc.* $ 15,741
- -----------------------------------------------------------
Oil & Gas Exploration & Production -- 4.7%
243 Apache Corp. $ 27,794
403 XTO Energy, Inc. 20,315
----------
$ 48,109
- -----------------------------------------------------------
Oil & Gas Storage & Transportation -- 2.1%
1,271 EL PASO Corp. $ 21,302
----------
Total Energy $ 156,722
- -----------------------------------------------------------
MATERIALS -- 4.0%
Aluminum -- 2.2%
696 Alcoa, Inc. $ 22,362
- -----------------------------------------------------------
Diversified Chemical -- 1.8%
556 Dow Chemical Co. $ 18,976
----------
Total Materials $ 41,338
- -----------------------------------------------------------
CAPITAL GOODS -- 7.2%
Aerospace & Defense -- 4.9%
358 Northrop Grumman Corp.* $ 24,648
388 United Technologies Corp. 25,449
----------
$ 50,097
- -----------------------------------------------------------
Industrial Conglomerates -- 2.3%
334 3M Co. $ 23,914
----------
Total Capital Goods $ 74,011
- -----------------------------------------------------------
TRANSPORTATION -- 2.6%
Railroads -- 2.6%
369 Norfolk Southern Corp. $ 27,133
----------
Total Transportation $ 27,133
- -----------------------------------------------------------
CONSUMER SERVICES -- 2.1%
Restaurants -- 2.1%
342 McDonald's Corp. $ 21,221
----------
Total Consumer Services $ 21,221
- -----------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Research Value Fund | Annual Report | 8/31/08
Shares Value
MEDIA -- 4.4%
Movies & Entertainment -- 4.4%
923 The Walt Disney Co. $ 29,859
534 Viacom, Inc. (Class B)* 15,742
---------
$ 45,601
---------
Total Media $ 45,601
- ----------------------------------------------------------------
RETAILING -- 1.9%
Apparel Retail -- 1.9%
372 Abercrombie & Fitch Co. $ 19,511
---------
Total Retailing $ 19,511
- ----------------------------------------------------------------
FOOD & DRUG RETAILING -- 2.0%
Hypermarkets & Supercenters -- 2.0%
346 Wal-Mart Stores, Inc. $ 20,438
---------
Total Food & Drug Retailing $ 20,438
- ----------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 6.1%
Tobacco -- 6.1%
982 Altria Group, Inc. $ 20,651
283 Lorillard, Inc. 20,444
406 Reynolds American, Inc. 21,510
---------
$ 62,605
---------
Total Food, Beverage & Tobacco $ 62,605
- ----------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.2%
Managed Health Care -- 2.2%
537 CIGNA Corp.* $ 22,490
---------
Total Health Care Equipment & Services $ 22,490
- ----------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 9.3%
Life Sciences Tools & Services -- 2.2%
377 Thermo Fisher Scientific, Inc.* $ 22,831
- ----------------------------------------------------------------
Pharmaceuticals -- 7.1%
597 Eli Lilly & Co. $ 27,850
639 Johnson & Johnson Co. 45,005
---------
$ 72,855
---------
Total Pharmaceuticals & Biotechnology $ 95,686
- ----------------------------------------------------------------
BANKS -- 6.8%
Regional Banks -- 4.8%
389 PNC Bank Corp. $ 27,989
794 Zions BanCorp. (b) 21,311
---------
$ 49,300
- ----------------------------------------------------------------
Thrifts & Mortgage Finance -- 2.0%
1,276 New York Community Bancorp, Inc. $ 20,990
---------
Total Banks $ 70,290
- ----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Research Value Fund | Annual Report | 8/31/08 15
Schedule of Investments | 8/31/08 (continued)
Shares Value
DIVERSIFIED FINANCIALS -- 10.9%
Asset Management & Custody Banks -- 5.1%
228 Franklin Resources, Inc. $ 23,826
823 The Bank of New York Mellon Corp. 28,484
----------
$ 52,310
- ----------------------------------------------------------------
Investment Banking & Brokerage -- 3.8%
667 Investment Technology Group, Inc.* $ 21,344
412 Lazard, Ltd. 17,465
----------
$ 38,809
- ----------------------------------------------------------------
Specialized Finance -- 2.0%
61 CME Group, Inc. $ 20,458
----------
Total Diversified Financials $ 111,577
- ----------------------------------------------------------------
INSURANCE -- 6.2%
Multi-Line Insurance -- 1.9%
447 Loews Corp. $ 19,413
- ----------------------------------------------------------------
Property & Casualty Insurance -- 4.3%
417 Chubb Corp. $ 20,020
556 The Traveler Companies, Inc. 24,553
----------
$ 44,573
----------
Total Insurance $ 63,986
- ----------------------------------------------------------------
REAL ESTATE -- 2.0%
Retail Real Estate Investment Trust -- 1.0%
107 Simon Property Group, Inc. $ 10,152
- ----------------------------------------------------------------
Specialized Real Estate Investment Trust -- 1.0%
120 Public Storage, Inc. $ 10,598
----------
Total Real Estate $ 20,750
- ----------------------------------------------------------------
SOFTWARE & SERVICES -- 1.7%
Systems Software -- 1.7%
646 Microsoft Corp. $ 17,629
----------
Total Software & Services $ 17,629
- ----------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.8%
Computer Hardware -- 1.8%
385 Hewlett-Packard Co. $ 18,064
----------
Total Technology Hardware & Equipment $ 18,064
- ----------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 5.3%
Alternative Carriers -- 1.7%
1,125 Time Warner Telecom, Inc.* $ 17,258
- ----------------------------------------------------------------
Integrated Telecommunication Services -- 3.6%
1,054 Verizon Communications, Inc. $ 37,016
----------
Total Telecommunication Services $ 54,274
- ----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Research Value Fund | Annual Report | 8/31/08
Shares Value
UTILITIES -- 6.2%
Gas Utilities -- 1.8%
350 Questar Corp. $ 18,162
- -------------------------------------------------------------------------------
Independent Power Producer & Energy Traders -- 1.4%
396 NRG Energy, Inc.* $ 14,905
- -------------------------------------------------------------------------------
Multi-Utilities -- 3.0%
283 NSTAR $ 9,579
513 Public Service Enterprise Group, Inc. 20,915
----------
$ 30,494
----------
Total Utilities $ 63,561
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,001,657) $1,006,887
- -------------------------------------------------------------------------------
Principal
Amount
TEMPORARY CASH INVESTMENT -- 1.7%
Securities Lending Collateral -- 1.7% (c)
Certificates of Deposit:
$ 244 Citibank, 2.73%, 10/30/08 $ 244
244 Abbey National Plc, 3.15%, 08/13/2009 244
244 Banco Santander NY, 3.09%, 12/22/08 244
244 Bank of Nova Scotia, 3.18%, 5/05/09 244
88 Bank of Scotland NY, 2.89%, 11/4/08 88
390 Bank of Scotland NY, 3.03%, 9/26/08 390
440 Barclays Bank, 3.18%, 5/27/09 440
488 BNP Paribas NY, 2.72%, 11/3/2008 488
205 Calyon NY, 2.64%, 9/29/08 205
49 Calyon NY, 2.69%, 01/16/09 49
29 Calyon NY, 2.69%, 01/16/09 29
181 Dexia Bank NY, 3.37%, 09/29/08 181
440 DNB NOR Bank ASA NY, 2.90%, 6/8/09 440
21 Fortis, 3.11%, 09/30/08 21
447 Intesa SanPaolo S.p.A., 2.72%, 5/22/09 447
28 NORDEA NY, 2.72%, 4/9/09 28
23 NORDEA NY, 2.73%, 12/01/08 23
244 Royal Bank of Canada NY, 2.6%, 9/5/08 244
366 Royal Bank of Canada NY, 3.0%, 8/7/09 366
147 Bank of Scotland NY, 2.96%, 11/3/08 147
28 Skandinavian Enskilda Bank NY, 3.18%, 09/22/08 28
49 Skandinavian Enskilda Bank NY, 3.06%, 02/13/09 49
440 Svenska Bank NY, 2.70%, 7/08/09 440
308 Toronto Dominion Bank NY, 2.77%, 9/5/08 308
147 Toronto Dominion Bank NY, 2.75%, 11/5/08 147
244 Wachovia, 3.62%,10/28/08 244
----------
$ 5,778
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Research Value Fund | Annual Report | 8/31/08 17
Schedule of Investments | 8/31/08 (continued)
Principal
Amount Value
Commercial Paper:
$ 488 CBA, 3.02%, 7/16/09 $ 488
49 Dexdel, 2.70%, 11/10/2008 49
485 JP Morgan Chase & Co., 1.42%,12/3/2008 485
49 Met Life, Inc., 2.70%, 11/3/2008 49
488 HSBC Securities, Inc., 2.88%, 9/29/08 488
480 Honda Finance Corp., 2.92%, 7/14/09 480
243 Royal Bank of Scotland, 2.66%, 10/14/08 243
146 John Deere Capital Corp., 2.78%, 12/12/2008 146
488 Monumental Global Funding, Ltd., 3.24%, 08/17/09 488
440 New York Life Global, 2.98%, 09/04/2009 440
488 Societe Generale, 3.29%, 09/04/09 488
46 Bank Bovespa NY, 2.79%, 3/12/09 46
220 General Electric Capital Corp., 2.77%, 1/5/09 220
244 General Electric Capital Corp., 2.82%, 3/16/09 244
244 CME Group, Inc., 3.00%, 8/6/09 244
90 IBM, 3.18%, 2/13/09 90
244 IBM, 3.18%, 6/26/09 244
440 Met Life Global Funding, 3.16%, 6/12/09 440
488 U.S. Bank, 2.912%, 08/24/09 488
49 Wachovia Corp., 2.85%,10/28/08 49
415 WestPac, 3.18%, 6/1/09 415
---------
$ 6,324
- ----------------------------------------------------------------------------
Mutual Funds:
366 AIM Short Term Investment Trust, 2.47% $ 366
366 Dreyfus Preferred Money Market Fund, 3.18% 367
---------
$ 733
- ----------------------------------------------------------------------------
Tri-party Repurchase Agreements:
1,465 ABN Amro, 2.11%, 9/2/08 $ 1,465
183 Barclays Capital Markets, 2.11%, 9/2/08 183
111 Deutsche Bank, 2.11%, 9/2/08 111
1,719 Lehman Brothers, 2.11%, 9/2/08 1,720
---------
$ 3,479
- ----------------------------------------------------------------------------
Time Deposit:
733 SunTrust Banks, Inc., 1.875%, 9/2/08 $ 733
- ----------------------------------------------------------------------------
Other:
73 ABS CFAT 2008-A A1, 3.005%, 4/27/09 $ 73
---------
Total Securities Lending Collateral $ 17,120
- ----------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Research Value Fund | Annual Report | 8/31/08
Principal
Amount Value
TOTAL TEMPORARY CASH INVESTMENT
(Cost $17,120) $ 17,120
- -----------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.6%
(Cost $1,018,777) (a) $1,024,007
- -----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.4% $ 4,200
- -----------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,028,207
=================================================================
* Non-income producing security.
(a) At August 31, 2008, the net unrealized gain on investments based on cost
for federal income tax purposes of $1,023,198 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 38,990
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (38,181)
--------
Net unrealized gain $ 809
========
(b) At August 31, 2008, the following security was out on loan:
Shares Description Value
640 Zions BanCorp. $17,178
- -----------------------------------------------------------------
Total $17,178
=================================================================
(c) Security lending collateral is managed by Credit Suisse
Purchases and sales of securities (excluding temporary cash investments) for
the year ended August 31, 2008 aggregated $1,207,414 and $717,800,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer Research Value Fund | Annual Report | 8/31/08 19
Statement of Assets and Liabilities | 8/31/08
ASSETS:
Investment in securities, at value (including securities loaned of
$17,178) (cost $1,018,777) $1,024,007
Cash 15,789
Receivables --
Investment securities sold 68,373
Dividends 2,027
Due from Pioneer Investment Management, Inc. 23,681
Other 35,968
- -----------------------------------------------------------------------------------
Total assets $1,169,845
- -----------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 84,002
Upon return of securities loaned 17,120
Due to affiliates 277
Accrued expenses 40,239
- -----------------------------------------------------------------------------------
Total liabilities $ 141,638
- -----------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $1,044,430
Undistributed net investment income 4,736
Accumulated net realized loss on investments (26,189)
Net unrealized gain on investments 5,230
- -----------------------------------------------------------------------------------
Total net assets $1,028,207
- -----------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, Unlimited number of shares authorized)
Class A (based on $519,817/54,119 shares) $ 9.61
Class C (based on $257,099/26,767 shares) $ 9.61
Class Y (based on $251,291/26,123 shares) $ 9.62
MAXIMUM OFFERING PRICE:
Class A ($9.60 [divided by] 94.25%) $ 10.19
===================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Research Value 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 $36) $ 13,837
Interest 584
Income from securities loaned, net 186
- ----------------------------------------------------------------------------------------------------
Total investment income $ 14,607
- ----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 4,637
Transfer agent fees and expenses
Class A 709
Distribution fees
Class A 789
Class C 312
Administrative fees 139
Custodian fees 19,666
Registration fees 11,586
Professional fees 42,518
Printing expense 11,891
Fees and expenses of nonaffiliated trustees 7,215
Miscellaneous 1,171
- ----------------------------------------------------------------------------------------------------
Total expenses $ 100,633
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (92,706)
- ----------------------------------------------------------------------------------------------------
Net expenses $ 7,927
- ----------------------------------------------------------------------------------------------------
Net investment income $ 6,680
- ----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on:
Investments $ (22,924)
Forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (166) $ (23,090)
- ----------------------------------------------------------------------------------------------------
Change in net unrealized gain on investments $ (55,082)
- ----------------------------------------------------------------------------------------------------
Net loss on investments and foreign currency transactions $ (78,172)
- ----------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (71,492)
- ----------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Research Value Fund | Annual Report | 8/31/08 21
Statement of Changes in Net Assets
For the Years Ended 8/31/08 and 8/31/07, respectively
Year Ended Year Ended
8/31/08 8/31/07
FROM OPERATIONS:
Net investment income $ 6,680 $ 5,907
Net realized gain (loss) on investments and foreign currency
transactions (23,090) 35,072
Change in net unrealized gain (loss) on investments (55,082) 44,481
- --------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $ (71,492) $ 85,460
- --------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.11 and $0.12 per share, respectively) $ (6,091) $ (6,035)
Net realized gain:
Class A ($0.77 and $0.28 per share, respectively) (38,340) (14,230)
- --------------------------------------------------------------------------------------------
Total distributions to shareowners $ (44,431) $ (20,265)
- --------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 500,000 $ --
Reinvestment of distributions 44,430 --
- --------------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund
share transactions $ 544,430 $ --
- --------------------------------------------------------------------------------------------
Net increase in net assets $ 428,507 $ 65,195
NET ASSETS:
Beginning of year 599,700 534,505
- --------------------------------------------------------------------------------------------
End of year $1,028,207 $ 599,700
- --------------------------------------------------------------------------------------------
Undistributed net investment income $ 4,736 $ 4,316
- --------------------------------------------------------------------------------------------
'08 Shares '08 Amount
Class A
Reinvestment of distributions 4,119 $ 44,430
- --------------------------------------------------------------
Net increase 4,119 $ 44,430
==============================================================
Class C*
Shares sold 26,767 $250,000
- --------------------------------------------------------------
Net increase 26,767 $250,000
==============================================================
Class Y**
Shares sold 26,123 $250,000
- --------------------------------------------------------------
Net increase 26,123 $250,000
==============================================================
* Class C shares were first publicly offered on July 17, 2008.
** Class Y shares were first publicly offered on July 31, 2008.
The accompanying notes are an integral part of these financial statements.
22 Pioneer Research Value Fund | Annual Report | 8/31/08
Financial Highlights
Year Ended Year Ended 12/15/05 (a)
8/31/08 8/31/07 to 8/31/06
Class A
Net asset value, beginning of period $ 11.99 $ 10.69 $ 10.00
- -----------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.11 $ 0.12 $ 0.09
Net realized and unrealized gain (loss) on
investments (1.61) 1.58 0.60
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
investment operations $ (1.50) $ 1.70 $ 0.69
Distributions to shareowners:
Net investment income (0.11) (0.12) --
Net realized gain (0.77) (0.28) --
- -----------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.38) $ 1.30 $ 0.69
- -----------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.61 $ 11.99 $ 10.69
=====================================================================================================
Total return* (13.34)% 16.24% 6.90%(b)
Ratio of net expenses to average net assets 1.25% 1.25% 1.25%**
Ratio of net investment income to average
net assets 1.07% 1.01% 1.21%**
Portfolio turnover rate 116% 88% 66%(b)
Net assets, end of period (in thousands) $ 520 $ 600 $ 535
Ratios with no waiver of fees and assumption of
expenses by PIM and no reduction for fees
paid indirectly:
Net expenses 16.02% 13.35% 19.33%**
Net investment loss (13.70)% (11.09)% (16.87)%**
=====================================================================================================
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Research Value Fund | Annual Report | 8/31/08 23
Financial Highlights (continued)
7/17/08 (a)
to 8/31/08
Class C
Net asset value, beginning of period $ 9.34
- -----------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.01
Net realized and unrealized gain on investments 0.26
- -----------------------------------------------------------------------------------
Net increase in net assets from investment operations $ 0.27
- -----------------------------------------------------------------------------------
Net increase in net asset value $ 0.27
- -----------------------------------------------------------------------------------
Net asset value, end of period $ 9.61
===================================================================================
Total return* 2.89%(b)
Ratio of net expenses to average net assets 2.15%**
Ratio of net investment income to average net assets 0.40%**
Portfolio turnover rate 116%(b)
Net assets, end of period (in thousands) $ 257
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 25.47%**
Net investment loss (22.92)%**
===================================================================================
(a) Class C shares were first publicly offered on July 17, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Research Value Fund | Annual Report | 8/31/08
7/31/08 (a)
to 8/31/08
Class Y
Net asset value, beginning of period $ 9.57
- ------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.02
Net realized and unrealized gain on investments 0.03
- ------------------------------------------------------------------------------------
Net increase in net assets from investment operations $ 0.05
- ------------------------------------------------------------------------------------
Net increase in net asset value $ 0.05
- ------------------------------------------------------------------------------------
Net asset value, end of period $ 9.62
====================================================================================
Total return* 0.52%(b)
Ratio of net expenses to average net assets 0.90%**
Ratio of net investment income to average net assets 2.37%**
Portfolio turnover rate 116%(b)
Net assets, end of period (in thousands) $ 251
Ratios with no waiver of fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 10.11%**
Net investment loss (6.84)%**
====================================================================================
(a) Class Y shares were first publicly offered on July 31, 2008.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Research Value Fund | Annual Report | 8/31/08 25
Notes to Financial Statements | 8/31/08
1. Organization and Significant Accounting Policies
Pioneer Research Value Fund, formerly Select Research Value Fund, (the Fund) is
one of five portfolios comprising Pioneer Series Trust V, a Delaware statutory
trust registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The Fund was organized on October 12,
2005, and commenced operations on December 15, 2005. Pioneer Investment
Management Inc. (PIM), the Fund's investment advisor, paid all organizational
costs of the Fund. Prior to December 15, 2005, the Fund had no operations other
than those relating to organizational matters and the initial capitalization of
the Fund by Pioneer Funds Distributor, Inc. (PFD) the principal underwriter for
the Fund. The Fund's investment objective is to seek long-term capital growth.
The Fund offers three classes of shares -- Class A, Class C, and Class Y
shares. Class C shares were first publicly offered on July 17, 2008. Class Y
shares were first publicly offered on July 31, 2008. Each class of shares
represent an interest in the same portfolio of investments of the Fund and has
equal rights to voting, redemptions, dividends and liquidation, except that
each class of shares can bear different transfer agent and distribution fees
and have exclusive voting right with respect to the distribution plans that
have been adopted by Class A and Class C shareowners, respectively. There is no
distribution plan for Class Y shares.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. 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 Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which are consistent with
those policies generally accepted in the investment company industry:
26 Pioneer Research Value Fund | Annual Report | 8/31/08
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities are valued at the last sale price
on the principal exchange where they are traded. Securities that have not
traded on the date of valuation, or securities for which sale prices are
not generally reported, are valued at the mean between the last bid and
asked prices. Securities for which market quotations are not readily
available are valued at their fair values as determined by, or under the
direction of, the Board of Trustees. Trading in foreign securities is
substantially completed each day at various times prior to the close of the
NYSE. The values of such securities used in computing the net asset value
of the Fund's shares are determined as of such times. The Fund may also use
the fair value of a security including a non-U.S. security when the closing
market price on the principal exchange where the security is traded no
longer reflects the value of the security. As of August 31, 2008, there
were no securities fair valued. Temporary cash investments are valued at
cost which approximates market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, 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. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. All
tax returns filed thus far are open (subject to examination by tax
authorities).
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
as from paid-in capital, depending on the type of book/tax differences that
may exist.
Pioneer Research Value Fund | Annual Report | 8/31/08 27
The Fund has elected to defer $21,729 of capital losses recognized between
November 1, 2007 and August 31, 2008 to its fiscal year ending August 31,
2009.
At August 31, 2008, the Fund has reclassified $169 to decrease
undistributed net investment income and $169 to accumulated net realized
loss on investments, to reflect permanent book/tax differences. The
reclassification has no impact on the net assets of the Fund and presents
the Fund's capital accounts on a tax basis.
The tax character of distributions paid during the years ended August 31,
2008 and August 31, 2007 were as follows:
--------------------------------------------------------------------
2008 2007
--------------------------------------------------------------------
Distributions paid from:
Ordinary income $22,689 $20,265
Long-term capital gain 21,742 --
--------------------------------------------------------------------
Total $44,431 $20,265
====================================================================
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2008:
--------------------------------------------------------------------
2008
--------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 4,697
Current year post October loss deferred (21,729)
Unrealized appreciation 809
--------------------------------------------------------------------
Total $ (16,223)
====================================================================
The difference between book basis and tax basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned subsidiary of UniCredit S.p.A. (UniCredit), earned
no underwriting commissions on the sale of Class A shares during the year
ended August 31, 2008.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day.
28 Pioneer Research Value Fund | Annual Report | 8/31/08
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares are not subject to a distribution plan. Shareowners
of each class share all expenses and fees paid to the transfer agent,
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), for its
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expenses (see Note 3).
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 C and Class Y shares can bear different transfer
agent and distribution fees.
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a loan, the Fund receives
collateral and earns income in the form of negotiated lenders' fees. The
Fund also continues to receive interest or payments in lieu of dividends on
the securities loaned. Gain or loss on the fair value of the loaned
securities that may occur during the term of the loan will be for the
account of the Fund. The loans are secured by collateral which is required
to be at least 102%, at all times, of the fair value of the securities
loaned. The amount of the collateral is required to be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The
Fund has the right under the lending agreements to recover the securities
from the borrower on demand. The Fund invests cash collateral in cash
equivalent investments. Securities lending collateral is managed by Credit
Suisse, Inc.
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 0.75% of the Fund's average daily net assets up to
$1 billion and 0.70% of the excess over $1 billion. For the year ended August
31, 2008, the management fee was equal to 0.75% of the Fund's average daily net
assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit
the Fund's expenses to 1.25%, 2.15%, and 0.90% of the average daily net assets
attributable to Class A, Class C, and Class Y shares, respectively. These
limitations are in effect through January 1, 2011 for Class A shares and
through January 1, 2009 for Class C and Class Y shares.
Pioneer Research Value Fund | Annual Report | 8/31/08 29
In addition, under the management and administration agreements, 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 $65 in management fees, administrative costs and certain
other services payable to PIM at August 31, 2008.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (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 $180 in
transfer agent fees payable to PIMSS at August 31, 2008.
4. Distribution Plan
The Fund adopted a Plan of Distribution with respect to Class A and Class C
shares in accordance with Rule 12b-1 of the Investment Company Act of 1940.
Effective February 1, 2008, under the Class A Plan, the Fund pays PFD a service
fee equal to 0.25% of the average daily net assets attributable to Class A
shares to finance activities primarily intended to result in the sale of Class
A shares. Prior to February 1, 2008, PFD was reimbursed for service fees in an
amount up to 0.25% of the average daily net assets attributable to Class A
shares. Pursuant to the Class C Plan, the Fund pays PFD 1.00% of the average
daily net assets attributable to each class of shares. The fee consists of a
0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in due to affiliates is $32 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. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. There is no CDSC's for Class Y shares.
Proceeds from the CDSCs are paid to PFD. For the year ended August 31, 2008
there were no CDSCs were paid to PFD.
5. New Pronouncements
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statement disclosures.
30 Pioneer Research Value Fund | Annual Report | 8/31/08
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.
Pioneer Research Value Fund | Annual Report | 8/31/08 31
Report of Independent Registered Public Accounting Firm
To the Trustees of Pioneer Series Trust V and
Shareholders of Pioneer Research Value Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Research Value Fund (the Fund, formerly Pioneer Select Research Value Fund)
(one of the portfolios constituting Pioneer Series Trust V), 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 Research Value 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
32 Pioneer Research Value Fund | Annual Report | 8/31/08
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 2007 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 52.13%.
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 0.0% and 71.93%, 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 (or, with respect to certain proposals, by shareholders
of Pioneer Series Trust V (the "Trust"), as noted below) follows:
- -------------------------------------------------------------------------------------
Broker
For Withhold Abstain Non-Votes
- -------------------------------------------------------------------------------------
Proposal 1 -- To elect Trustees*
John F. Cogan, Jr. 3,405,267.390 55,065.192 0.000 0.000
Daniel K. Kingsbury 3,405,267.390 55,065.192 0.000 0.000
David R. Bock 3,405,267.390 55,065.192 0.000 0.000
Mary K. Bush 3,405,267.390 55,065.192 0.000 0.000
Benjamin M. Friedman 3,405,267.390 52,896.409 2,168.783 0.000
Margaret B.W. Graham 3,405,267.390 55,065.192 0.000 0.000
Thomas J. Perna 3,405,267.390 55,065.192 0.000 0.000
Marguerite A. Piret 3,405,267.390 55,065.192 0.000 0.000
Stephen K. West 3,405,267.390 55,065.192 0.000 0.000
John Winthrop 3,405,267.390 55,065.192 0.000 0.000
- ----------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ----------------------------------------------------------------------------------------
Proposal 2 -- To approve an
amendment to the
Declaration of Trust* 2,342,477.355 299,534.822 36,093.405 782,227.000
- ----------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- ----------------------------------------------------------------------------------------
Proposal 3A -- To approve
changes to the Fund's
fundamental investment
policy relating to borrowing
money 54,119.461 0.000 0.000 0.000
Pioneer Research Value Fund | Annual Report | 8/31/08
33
- -----------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- -----------------------------------------------------------------------------------------------
Proposal 3B -- To approve
changes to the Fund's
fundamental investment
policy relating to
underwriting 54,119.461 0.000 0.000 0.000
Proposal 3C -- To approve
changes to the Fund's
fundamental investment
policy relating to lending 54,119.461 0.000 0.000 0.000
Proposal 3D -- To approve
changes to the Fund's
fundamental investment
policy relating to issuing
senior securities 54,119.461 0.000 0.000 0.000
Proposal 3E -- To approve
changes to the Fund's
fundamental investment
policy relating to real estate 54,119.461 0.000 0.000 0.000
Proposal 3F -- To approve
changes to the Fund's
fundamental investment
policy relating to
commodities 54,119.461 0.000 0.000 0.000
Proposal 3G -- To approve
changes to the Fund's
fundamental investment
policy relating to
concentration 54,119.461 0.000 0.000 0.000
Proposal 3H -- To approve
changes to the Fund's
fundamental investment
policy relating to
diversification 54,119.461 0.000 0.000 0.000
Proposal 3I -- To approve
the conversion of the Fund's
investment objective from
fundamental to non-
fundamental 54,119.461 0.000 0.000 0.000
- -----------------------------------------------------------------------------------------------
Broker
For Against Abstain Non-Votes
- -----------------------------------------------------------------------------------------------
Proposal 4 -- To approve an
Amended and Restated
Management Agreement
with PIM 54,119.461 0.000 0.000 0.000
* Proposals 1 and 2 were voted on and approved by all series of the Trust.
Results reported above reflect the combined votes of all series of the
Trust.
34 Pioneer Research Value 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 Research Value Fund | Annual Report | 8/31/08 35
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 noted that the
Fund commenced operations on December 15, 2005. They considered that the Fund's
annualized total return was in the third quintile of its Morningstar category
for the one year period ended June 30, 2007 and that the Fund's total return
for 2006 was in the second quintile of its Morningstar category. (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.) The Trustees concluded that the investment performance of the Fund
was satisfactory.
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
36 Pioneer Research Value 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 second quintile relative to its
Strategic Insight peer group. 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.
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.
Pioneer Research Value Fund | Annual Report | 8/31/08 37
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.
38 Pioneer Research Value 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 71 of the 77 Pioneer
Funds. The address for all Trustees and all officers of the Fund is 60 State
Street, Boston, Massachusetts 02109.
Pioneer Research Value Fund | Annual Report | 8/31/08 39
Interested Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
John F. Cogan, Jr. (82)* Chairman of the Board, Trustee since 2005.
Trustee and President Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ---------------------------------------------------------------------------------
Daniel K. Kingsbury (50)* Trustee and Executive Trustee since March
Vice President 2007. Serves until a
successor trustee is
elected or earlier retire-
ment or removal.
- ---------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
- ------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (82)* Deputy Chairman and a Director of Pioneer Global Asset Man- None
agement S.p.A. ("PGAM"); Non-Executive Chairman and a Direc-
tor 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 Dis-
tributor, 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)* Director, CEO and President of Pioneer Investment Management None
USA Inc. (since February 2007); Director and President 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); Direc-
tor of Pioneer Global Asset Management S.p.A. (since April
2007); Head of New Markets Division, Pioneer Global Asset Man-
agement 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.
40 Pioneer Research Value Fund | Annual Report | 8/31/08
Independent Trustees
Position Held Length of Service
Name and Age with the Fund and Term of Office
David R. Bock (64) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -----------------------------------------------------------------
Mary K. Bush (60) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -----------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
David R. Bock (64) Executive Vice President and Chief Financial Officer, I-trax, Inc. Director of Enterprise Com-
(publicly traded health care services company) (2004 - 2007); munity Investment, Inc.
Partner, Federal City Capital Advisors (boutique merchant bank) (privately-held affordable
(1997 to 2004 and 2008 - present); and Executive Vice Presi- housing finance company);
dent and Chief Financial Officer, Pedestal Inc. (internet-based and Director of New York
mortgage trading company) (2000 - 2002) Mortgage Trust (publicly
traded mortgage REIT)
- --------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (60) President, Bush International, LLC (international financial Director of Marriott Interna-
advisory firm) tional, Inc., Director of Dis-
cover Financial Services
(credit card issuer and elec-
tronic payment services);
Director of Briggs & Stratton
Co. (engine manufacturer);
Director of UAL Corporation
(airline holding company)
Director of Mantech Interna-
tional Corporation (national
security, defense, and
intelligence technology firm);
and Member, Board of
Governors, Investment
Company Institute
- --------------------------------------------------------------------------------------------------------------------------
Pioneer Research Value Fund | Annual Report | 8/31/08
41
Independent Trustees (continued)
Position Held Length of Service
Name and Age with the Fund and Term of Office
Benjamin M. Friedman (64) Trustee Trustee since May,
2008. Serves until a
successor trustee is
elected or earlier retire-
ment or removal.
- -------------------------------------------------------------------------
Margaret B.W. Graham (61) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2006.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Marguerite A. Piret (60) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Stephen K. West (79) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- -------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Benjamin M. Friedman (64) Professor, Harvard University Trustee, Mellon Institutional
Funds Investment Trust and
Mellon Institutional Funds
Master Portfolio (oversees 17
portfolios in fund complex)
- -------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (61) Founding Director, Vice-President and Corporate Secretary, The None
Winthrop Group, Inc. (consulting firm); and Desautels Faculty of
Management, McGill University
- -------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Private investor (2004 - present); and Senior Executive Vice Director of Quadriserv Inc.
President, The Bank of New York (financial and securities ser- (technology products for
vices) (1986 - 2004) securities lending industry)
- -------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (60) President and Chief Executive Officer, Newbury, Piret & Company, Director of New America
Inc. (investment banking firm) High Income Fund, Inc.
(closed-end investment
company)
- -------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (79) Senior Counsel, Sullivan & Cromwell LLP (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end
investment company)
- -------------------------------------------------------------------------------------------------------------------------------
42 Pioneer Research Value Fund | Annual Report | 8/31/08
Position Held Length of Service
Name and Age with the Fund and Term of Office
John Winthrop (71) Trustee Trustee since 2005.
Serves until a successor
trustee is elected or
earlier retirement or
removal.
- ---------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
John Winthrop (71) President, John Winthrop & Co., Inc. None
(private investment firm)
- --------------------------------------------------------------------------------------------
Pioneer Research Value Fund | Annual Report | 8/31/08 43
Fund Officers
Position Held Length of Service
Name and Age with the Fund and Term of Office
Dorothy E. Bourassa (60) Secretary Since 2005. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------
Christopher J. Kelley (43) Assistant Secretary Since 2005. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------
Mark E. Bradley (48) Treasurer Since March 2008.
Serves at the discretion
of the Board
- -----------------------------------------------------------------------------
Luis I. Presutti (43) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------
Fund Officers
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Dorothy E. Bourassa (60) Secretary of PIM-USA; Senior Vice President - Legal of Pioneer; None
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) Associate General Counsel of Pioneer since January 2008 and None
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) Vice President - Fund Accounting, Administration and Controller- None
ship 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 Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- -----------------------------------------------------------------------------------------------------------------------
44 Pioneer Research Value Fund | Annual Report | 8/31/08
Position Held Length of Service
Name and Age with the Fund and Term of Office
Gary Sullivan (50) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- -----------------------------------------------------------------------------------
Teri W. Anderholm (49) Chief Compliance Officer Since January 2007.
Serves at the discretion
of the Board
- -----------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Gary Sullivan (50) Fund Accounting Manager - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Assistant Treasurer of all
of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Fund Administration Manager - Fund Accounting, Administration None
and Controllership Services since June 2003 and Assistant Trea-
surer of all of the Pioneer Funds since September 2003; Assis-
tant 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 Officer of Pioneer since December 2006 and of None
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 Research Value Fund | Annual Report | 8/31/08 45
This page for your notes.
46 Pioneer Research Value Fund | Annual Report | 8/31/08
This page for your notes.
Pioneer Research Value Fund | Annual Report | 8/31/08 47
This page for your notes.
48 Pioneer Research Value Fund | Annual Report | 8/31/08
This page for your notes.
Pioneer Research Value Fund | Annual Report | 8/31/08 49
This page for your notes.
50 Pioneer Research Value Fund | Annual Report | 8/31/08
This page for your notes.
Pioneer Research Value Fund | Annual Report | 8/31/08 51
This page for your notes.
52 Pioneer Research Value 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 Series, including
fees associated with the filings of its Form N-1A, totaled
approximately $150,300 in 2008 and approximately
$144,650 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 audit-related services in 2008 or 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 $41,446 in 2008 and $39,100 in 2007.
(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 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
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
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,
2008 and 2007, 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 $41,446 in
2008 and $39,100 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 Series Trust V
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.