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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21108
Pioneer Fundamental Growth Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: March 31
Date of reporting period: April 1, 2008 through September 30, 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 Fundamental
Growth Fund
- --------------------------------------------------------------------------------
Semiannual Report | September 30, 2008
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PIGFX
Class B FUNBX
Class C FUNCX
[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 27
Approval of Investment Advisory Agreement 34
Trustees, Officers and Service Providers 38
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 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 economic 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 we believe have been unjustifiably beaten down by
indiscriminate selling, but that we have identified as having 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, which we apply to each of our portfolios, is supported by an
integrated team approach and is designed to carefully balance risk and reward.
While we
2 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
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.
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 Fundamental Growth Fund | Semiannual Report | 9/30/08 3
Portfolio Management Discussion | 9/30/08
Domestic stock prices generally fell amid growing investor unease about the
spreading effects of problems in credit markets during the six months ended
September 30, 2008. In the following interview, portfolio managers Timothy
Mulrenan and Andrew Acheson discuss the factors that affected the performance
of Pioneer Fundamental Growth Fund during the six-month period ended September
30, 2008.
Q How did the Fund perform during the six months ended September 30, 2008?
A Pioneer Fundamental Growth Fund Class A shares returned -8.92% at net asset
value for the period, while the Fund's benchmark, the Russell 1000 Growth
Index (the Russell Index), returned -11.23% over the same six-month period.
The Fund's conservative positioning during the six months helped it
outperform both the Russell Index and the average return of -12.67% for the
810 mutual funds in Lipper's Large Cap Growth category.
Q What were the principal factors that affected the Fund's performance over
the six months ended September 30, 2008?
A We are never happy with negative results, but we had anticipated that we
were entering a very challenging environment because of the credit crisis
in the financial system. As a result, we positioned the Fund cautiously for
a difficult market environment, emphasizing investments in corporations
with stable balance sheets, relatively little debt and histories of
producing consistent earnings growth over longer periods of time. We tried
to avoid investing in companies that were very credit-sensitive, especially
banks and brokers, and we also de-emphasized corporations whose earnings
were closely linked to movements in the business cycle. We de-emphasized
the Fund's energy sector allocation, which was the worst-performing market
sector during the six months ended September 30, as oil and natural gas
prices started retreating from their all-time highs. Meanwhile, we
overweighted the Fund in health care, which was the best-performing sector
in the market. We also attempted to take advantage of weakness in the stock
market to establish new investments for the Fund in highly profitable
corporations with durable businesses. For example, we initiated positions
for the Fund in Google, the leader in Internet search and advertising;
MasterCard, the credit and debit card company; and Oracle, a major provider
of enterprise-wide software systems for large organizations. In adding
these investments to the Fund, we recognized that no corporations were
immune from the market turmoil. However, we wanted to initiate investments
for the Fund in companies we believed had superior business
4 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
prospects for the long run. We focused the Fund on higher-quality companies
led by successful management teams, with superior returns on capital, and
with the ability to generate healthy cash flows that would allow them to
invest in their businesses without being dependent on borrowing money in
the credit markets.
Q What were some of the investments that helped the Fund outperform its
benchmark and the Lipper funds average over the six-month period ended
September 30?
A Despite the turmoil in the overall market, several health care stocks held
up well, including Thoratec, Medtronic and Thermo Fisher Scientific.
Thoratec has established itself as a leading producer of artificial heart
pumps for cardiac patients. Its share price rose by more than 80% during
the period following the Food and Drug Administration's (FDA) approval of a
new product for patients with late-stage heart disease. The Fund had a
small position in Thoratec, but a larger position in Medtronic, whose
valuation stabilized during the period in an otherwise down market, as the
company continued to deliver good earnings results on sales of its medical
devices. The company, which is under new management, also embarked on a
share repurchase program and increased its stock dividend, pleasing company
shareholders. Meanwhile, Thermo Fisher Scientific, a producer of scientific
equipment, benefited from strong cash flow generated by its diversified
customer base of medical and scientific research laboratories. Outside the
health care sector, one notable contributor to the Fund's performance
during the period was Ross Stores. This discount retailer of branded
apparel showed solid earnings results as the weakening economy encouraged
cost-conscious consumers to look for lower prices. Slowing sales at
department stores and major retailers, from which Ross Stores buys much of
its inventory, also improved the company's position in price negotiations
with those larger stores.
Q What were some of the investments that detracted from the Fund's
performance over the six-month period ended September 30?
A Several holdings produced disappointing results over the six-month period.
International Game Technology, the largest producer of gaming machines for
casinos, fell victim to declines in business at many of the major casinos,
as well as the difficulties that casinos experienced in getting credit
financing for new equipment. We have retained the Fund's position in the
company, however, because we think it has the opportunity to rebound in
2009, when the gambling industry moves to a new technology platform that
will give casinos the ability to change the games being played at specific
locations or terminals. Apparel retailer Abercrombie & Fitch also detracted
from the Fund's results when its profits were affected by slowing sales at
the same time the company was making new investments for future growth. The
Fund's investment in Intercontinental Exchange, an electronic trading
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 5
platform for financial products, also held back results. The company's
share price declined on expectations that weaker capital markets,
especially in commodities, would lead to lower trading volumes. We believe
that Intercontinental Exchange's longer-term outlook remains good,
especially as it introduces new products to augment its traditional trading
platforms. Also detracting from the Fund's return over the six-month period
was a position in Corning, a global leader in producing glass panels for
flat-panel television sets. An oversupply of inventory for flat-panel
displays decreased the company's short-term results. However, we continue
to believe that Corning is well positioned to benefit from the longer-term
growth in sales as flat panel television sets become more affordable.
Q What is your investment outlook?
A We expect that global economic growth will continue to be weak in the
months ahead as the result of the fallout from the credit crisis. While the
policies of the U.S. Treasury and the Federal Reserve Board, often acting
in concert with other governments, may cushion the effects of this crisis,
we do not anticipate a meaningful economic recovery until 2009. The key to
any recovery will be a stabilization of housing values. A reduction in the
inventories of unsold homes and a moderation in the rate of decline in
housing prices will likely be catalysts to a recovery.
While we foresee more volatility in equity prices in the near term, we
think we already are seeing some very attractive values appear in the
stocks of fundamentally sound companies. In this environment, we plan to
continue to upgrade the Fund's overall portfolio with stocks of reasonably
priced, long-term growth companies with superior earnings potential. If the
credit crisis is resolved soon, the market could begin to rebound. Some
very attractive companies currently are selling at extraordinarily low
stock prices in relation to their profitability. However, if the credit
crisis is not resolved soon, a further deterioration in stock values is
possible.
Please refer to the Schedule of Investments on pages 14-19 for a full listing
of Fund securities.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making them more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
6 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
Portfolio Summary | 9/30/08
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[The following data is represented by a pie chart in the printed material.]
U.S. Common Stocks 96.0%
Depositary International Stocks 2.4%
Temporary Cash Investments 1.6%
Sector Distribution
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(As a percentage of equity holdings)
[The following data is represented by a pie chart in the printed material.]
Information Technology 30.6%
Health Care 23.9%
Consumer Staples 12.8%
Industrials 9.0%
Cunsumer Discretionary 7.8%
Financials 6.8%
Materials 4.9%
Energy 4.2%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Cisco Systems, Inc. 4.51%
2. Microsoft Corp. 4.24
3. Thermo Fisher Scientific, Inc. 4.07
4. CVS Corp. 3.81
5. Intel Corp. 3.64
6. Medtronic, Inc. 3.63
7. PepsiCo, Inc. 3.58
8. Berkshire Hathaway, Inc. (Class B) 3.50
9. Hewlett-Packard Co. 3.11
10. Gilead Sciences, Inc. 2.79
* 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.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 7
Prices and Distributions | 9/30/08
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 9/30/08 3/31/08
A $ 10.31 $ 11.32
- ------------------------------------------------
B $ 10.05 $ 11.09
- ------------------------------------------------
C $ 10.06 $ 11.09
- ------------------------------------------------
Distributions per Share: 4/1/08-9/30/08
- --------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ -- $ -- $ --
- ----------------------------------------------------------------
B $ -- $ -- $ --
- ----------------------------------------------------------------
C $ -- $ -- $ --
- ----------------------------------------------------------------
8 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
Performance Update | 9/30/08 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Fundamental Growth Fund at public offering price,
compared to that of the Russell 1000 Growth Index.
Average Annual Total Returns
(As of September 30, 2008)
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Net Asset Public Offering
Period Value (NAV) Price (POP)
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Life-of-Class
(8/22/02) 5.35% 4.33%
5 Years 5.04 3.79
1 Year -15.66 -20.51
- ---------------------------------------------------------------------
Expense Ratio
(Per prospectus dated August 1, 2008)
- ---------------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------------
3.94% 1.25%
- ---------------------------------------------------------------------
[The following data is represented by a mountain chart in the printed material.]
Value of $10,000 Investment
Pioneer Fundamental Russell 1000
Growth Fund Growth Index
8/02 9,425 10,000
8,481 8,963
9/03 10,602 11,286
11,144 12,133
9/05 13,204 13,540
13,803 14,357
9/07 16,072 17,136
9/08 13,555 13,558
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 8/1/2010 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an index.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 9
Performance Update | 9/30/08 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Fundamental Growth Fund, compared to that of the
Russell 1000 Growth Index.
Average Annual Total Returns
(As of September 30, 2008)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(12/15/05) -0.78% -1.81%
1 Year -16.49 -19.77
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated August 1, 2008)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
5.01% 2.15%
- -------------------------------------------------------------------
[The following data is represented by a mountain chart in the printed material.]
Value of $10,000 Investment
Pioneer Fundamental Russell 1000
Growth Fund Growth Index
12/05 10,000 10,000
9/06 10,341 10,297
9/07 11,947 12,290
9/08 9,692 9,724
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares continues to be 4%. For more
complete information, please see the prospectus for details.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 8/1/2009 for Class B Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an index.
10 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
Performance Update | 9/30/08 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Fundamental Growth Fund, compared to that of the
Russell 1000 Growth Index.
Average Annual Total Returns
(As of September 30, 2008)
- -------------------------------------------------------------------
If If
Period Held Redeemed
- -------------------------------------------------------------------
Life-of-Class
(12/15/05) -0.75% -0.75%
1 Year -16.40 -17.22
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated August 1, 2008)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
5.00% 2.15%
- -------------------------------------------------------------------
[The following data is represented by a mountain chart in the printed material.]
Value of $10,000 Investment
Pioneer Fundamental Russell 1000
Growth Fund Growth Index
12/05 10,000 10,000
9/06 10,331 10,297
9/07 11,936 12,290
9/08 9,978 9,724
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 8/1/2009 for Class C Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an index.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 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 Fundamental Growth Fund
Based on actual returns from April 1, 2008 through September 30, 2008.
Share Class A B C
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 4/1/08
- -----------------------------------------------------------------------
Ending Account $ 910.80 $ 906.20 $ 907.10
Value on 9/30/08
- -----------------------------------------------------------------------
Expenses Paid $ 5.97 $ 10.25 $ 10.25
During Period*
- -----------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%
and 2.15% for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 183/366 (to
reflect the one-half year period).
12 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
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 Fundamental Growth Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from April 1, 2008 through September 30, 2008.
Share Class A B C
Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00
Value on 4/1/08
- ----------------------------------------------------------------------
Ending Account $ 1,018.75 $ 1,014.25 $ 1,014.25
Value on 9/30/08
- ----------------------------------------------------------------------
Expenses Paid $ 6.31 $ 10.83 $ 10.83
During Period*
- ----------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%
and 2.15% for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 183/366 (to
reflect the one-half year period).
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 13
Schedule of Investments | 9/30/08 (unaudited)
Shares Value
COMMON STOCKS -- 96.5%
ENERGY -- 4.0%
Integrated Oil & Gas -- 2.5%
1,750 Exxon Mobil Corp. $ 135,905
- ----------------------------------------------------------------
Oil & Gas Equipment & Services -- 1.5%
1,700 National-Oilwell Varco, Inc.* $ 85,391
----------
Total Energy $ 221,296
- ----------------------------------------------------------------
MATERIALS -- 4.7%
Gold -- 2.2%
3,100 Newmont Mining Corp. $ 120,156
- ----------------------------------------------------------------
Industrial Gases -- 2.5%
1,900 Praxair, Inc. $ 136,306
----------
Total Materials $ 256,462
- ----------------------------------------------------------------
CAPITAL GOODS -- 7.1%
Aerospace & Defense -- 5.1%
1,700 Honeywell International, Inc. $ 70,635
1,275 Northrop Grumman Corp.* 77,189
2,215 United Technologies Corp. 133,033
----------
$ 280,857
- ----------------------------------------------------------------
Industrial Conglomerates -- 2.0%
1,615 3M Co. $ 110,321
----------
Total Capital Goods $ 391,178
- ----------------------------------------------------------------
TRANSPORTATION -- 1.6%
Air Freight & Couriers -- 1.6%
1,350 United Parcel Service, Inc. $ 84,902
----------
Total Transportation $ 84,902
- ----------------------------------------------------------------
CONSUMER SERVICES -- 1.1%
Casinos & Gaming -- 1.1%
3,350 International Game Technology $ 57,553
----------
Total Consumer Services $ 57,553
- ----------------------------------------------------------------
MEDIA -- 1.1%
Movies & Entertainment -- 1.1%
2,445 Viacom, Inc. (Class B)* $ 60,734
----------
Total Media $ 60,734
- ----------------------------------------------------------------
RETAILING -- 5.3%
Apparel Retail -- 5.3%
1,405 Abercrombie & Fitch Co. $ 55,427
3,000 Ross Stores, Inc. 110,430
4,130 TJX Companies, Inc. 126,048
----------
$ 291,905
----------
Total Retailing $ 291,905
- ----------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
Shares Value
FOOD & DRUG RETAILING -- 3.7%
Drug Retail -- 3.7%
5,970 CVS Corp. $ 200,950
----------
Total Food & Drug Retailing $ 200,950
- ----------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 8.2%
Soft Drinks -- 5.9%
2,550 Coca-Cola Co. $ 134,844
2,650 PepsiCo, Inc. 188,864
----------
$ 323,708
- ----------------------------------------------------------------------------
Tobacco -- 2.3%
1,725 Lorillard, Inc. $ 122,734
----------
Total Food, Beverage & Tobacco $ 446,442
- ----------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.5%
Household Products -- 0.5%
430 Procter & Gamble Co.* $ 29,967
----------
Total Household & Personal Products $ 29,967
- ----------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 8.8%
Health Care Distributors -- 0.5%
600 Cardinal Health, Inc. $ 29,568
- ----------------------------------------------------------------------------
Health Care Equipment -- 8.3%
850 Edwards Lifesciences Corp.* $ 49,096
3,825 Medtronic, Inc. 191,631
1,200 Stryker Corp. 74,760
5,200 Thoratec Corp.* 136,500
----------
$ 451,987
----------
Total Health Care Equipment & Services $ 481,555
- ----------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 14.2%
Biotechnology -- 2.7%
3,230 Gilead Sciences, Inc.* $ 147,223
- ----------------------------------------------------------------------------
Life Sciences Tools & Services -- 3.9%
3,900 Thermo Fisher Scientific, Inc.* $ 214,500
- ----------------------------------------------------------------------------
Pharmaceuticals -- 7.6%
5,450 Bristol-Myers Squibb Co. $ 113,633
2,675 Eli Lilly & Co. 117,780
805 Johnson & Johnson 55,770
2,803 Teva Pharmaceutical Industries, Ltd. (A.D.R.) (b) 128,349
----------
$ 415,532
----------
Total Pharmaceuticals & Biotechnology $ 777,255
- ----------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.5%
Consumer Finance -- 0.8%
1,150 American Express Co. $ 40,745
- ----------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 15
Schedule of Investments | 9/30/08 (unaudited) (continued)
Shares Value
Specialized Finance -- 1.7%
1,175 IntercontinentalExchange, Inc.* $ 94,799
----------
Total Diversified Financials $ 135,544
- -----------------------------------------------------------------------
INSURANCE -- 4.1%
Property & Casualty Insurance -- 4.1%
42 Berkshire Hathaway, Inc. (Class B)* $ 184,590
2,350 Progressive Corp.* 40,890
----------
$ 225,480
----------
Total Insurance $ 225,480
- -----------------------------------------------------------------------
SOFTWARE & SERVICES -- 11.1%
Data Processing & Outsourced Services -- 3.0%
3,350 Western Union Co. $ 82,645
445 MasterCard, Inc.* 78,912
----------
$ 161,557
- -----------------------------------------------------------------------
Internet Software & Services -- 2.4%
335 Google, Inc.* $ 134,174
- -----------------------------------------------------------------------
Systems Software -- 5.7%
8,390 Microsoft Corp. $ 223,929
4,300 Oracle Corp.* 87,333
----------
$ 311,262
----------
Total Software & Services $ 606,993
- -----------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 11.5%
Communications Equipment -- 8.5%
10,550 Cisco Systems, Inc.* $ 238,008
5,775 Corning, Inc. 90,321
3,235 Juniper Networks, Inc.* 68,161
1,550 Qualcomm, Inc. 66,604
----------
$ 463,094
- -----------------------------------------------------------------------
Computer Hardware -- 3.0%
3,550 Hewlett-Packard Co. $ 164,152
----------
Total Technology Hardware & Equipment $ 627,246
- -----------------------------------------------------------------------
SEMICONDUCTORS -- 7.0%
Semiconductor Equipment -- 2.2%
8,000 Applied Materials, Inc. $ 121,040
- -----------------------------------------------------------------------
Semiconductors -- 4.8%
10,250 Intel Corp. $ 191,983
3,125 Texas Instruments, Inc. 67,188
----------
$ 259,171
----------
Total Semiconductors $ 380,211
- -----------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $5,722,880) $5,275,673
- -----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
Principal
Amount ($) Value
TEMPORARY CASH INVESTMENTS -- 1.6%
SECURITIES LENDING COLLATERAL -- 1.6% (c)
Certificates of Deposit:
1,535 Citibank, 2.73%, 10/30/08 $ 1,535
1,535 Abbey National Plc, 3.15%, 8/13/09 1,535
1,536 Banco Santander NY, 3.09%, 12/22/08 1,536
1,535 Bank of Nova Scotia, 3.18%, 5/5/09 1,535
552 Bank of Scotland NY, 2.89%, 11/4/08 552
2,451 Bank of Scotland NY, 3.03%, 6/5/09 2,451
2,763 Barclays Bank, 3.18%, 5/27/09 2,763
3,070 BNP Paribas NY, 2.72%, 11/3/08 3,070
307 Calyon NY, 2.69%, 1/16/09 307
181 Calyon NY, 2.69%, 1/16/09 181
2,763 DNB NOR Bank ASA NY, 2.9%, 6/8/09 2,763
2,812 Intesa SanPaolo S.p.A., 2.72%, 5/22/09 2,812
178 NORDEA NY, 2.72%, 4/9/09 178
147 NORDEA NY, 2.73%, 12/1/08 147
2,303 Royal Bank of Canada NY, 3.0%, 8/7/09 2,303
1,535 Bank of Scotland NY, 3.06%, 3/5/09 1,535
921 Bank of Scotland NY, 2.96%, 11/3/08 921
3,070 Societe Generale, 3.28%, 9/4/09 3,070
307 Skandinavian Enskilda Bank NY, 3.06%, 2/13/09 307
2,763 Svenska Bank NY, 2.7%, 7/8/09 2,763
921 Toronto Dominion Bank NY, 2.75%, 11/5/08 921
1,535 Wachovia Corp., 2.79%, 10/30/08 1,535
307 Wachovia Corp., 2.85%, 10/28/08 307
----------
$ 35,028
- ----------------------------------------------------------------------------
Commercial Paper:
3,015 American Honda Finance Corp., 2.92%, 7/14/09 $ 3,015
3,062 ANZ Bank, 2.64%, 11/5/08 3,062
3,070 Commonwealth Bank Australia, 3.02%, 7/16/09 3,070
306 Dexdel, 2.7%, 11/10/08 306
3,055 JP Morgan Chase & Co., 1.42%, 12/3/08 3,055
306 Met Life, Inc., 2.7%, 11/3/08 306
921 John Deere Capital Corp., 2.82%, 12/12/08 921
3,070 HSBC USA, Inc., 3.2%, 8/14/09 3,070
3,070 Monumental Global Funding, Ltd., 3.2%, 8/17/09 3,070
2,763 New York Life Global, 2.98%, 9/4/09 2,763
292 Bank Bovespa NY, 2.79%, 3/12/09 292
1,381 General Electric Capital Corp., 4.24%, 1/5/09 1,381
1,535 General Electric Capital Corp., 2.82%, 3/16/09 1,535
1,535 CME Group, Inc., 3.0%, 8/6/09 1,535
568 IBM, 3.18%, 2/13/09 568
1,535 IBM, 3.18%, 6/26/09 1,535
2,763 Met Life Global Funding, 3.19%, 6/12/09 2,763
The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 17
Schedule of Investments | 9/30/08 (unaudited) (continued)
Principal
Amount ($) Value
Commercial Paper -- (continued)
1,534 Macquarie Bank, Ltd., 2.55%, 10/8/08 $ 1,534
1,534 Macquarie Bank, Ltd., 2.55%, 10/8/08 1,534
3,070 U.S. Bank, 2.912%, 8/24/09 3,070
2,610 Westpac Banking Corp., 3.74%, 6/1/09 2,610
----------
$ 40,998
- ---------------------------------------------------------------------
Tri-party Repurchase Agreements:
6,140 ABN Amro, 1.85%, 10/1/08 $ 6,140
3,437 Barclays Capital Markets, 2.11%, 9/2/08 3,437
2,557 Deutsche Bank, 2.0%, 10/1/08 2,557
----------
$ 12,134
- ---------------------------------------------------------------------
Other:
340 ABS CFAT 2008-A A1, 3.005%, 4/27/09 $ 340
----------
$ 88,500
- ---------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $88,500) $ 88,500
- ---------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 98.1%
(Cost $5,811,380)(a) $5,364,173
- ---------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.9% $ 105,380
- ---------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $5,469,553
=====================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipt
(a) At September 30, 2008, the net unrealized loss on investments based on
cost for federal income tax purposes of $5,814,260 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 187,932
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (638,019)
----------
Net unrealized loss $ (450,087)
==========
(b) At September 30, 2008, the following security was out on loan:
Shares Description Value
2,000 Teva Pharmaceutical Industries, Ltd. (A.D.R.) $91,580
================================================================================
(c) Security lending collateral is managed by Credit Suisse.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended September 30, 2008 aggregated $1,110,885 and $671,039,
respectively.
The accompanying notes are an integral part of these financial statements.
18 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
FAS 157 Footnote Disclosures
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of September 30, 2008, in
valuing the Fund's assets:
Other
Investments in Financial
Valuation Inputs Securities Instruments*
Level 1 - Quoted Prices $5,275,673 $ -
Level 2 - Other Significant Observable Inputs 88,500 -
Level 3 - Significant Unobservable Inputs - -
- ------------------------------------------------------------------------------------
Total $5,364,173 $ -
====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 19
Statement of Assets and Liabilities | 9/30/08 (unaudited)
ASSETS:
Investment in securities (including securities loaned of $91,580)
(cost $5,811,380) $5,364,173
Cash 166,326
Receivables --
Investment securities sold 83,482
Fund shares sold 12,683
Dividends, interest and foreign taxes withheld 2,006
Due from Pioneer Investment Management, Inc. 9,147
Other 36,161
- ----------------------------------------------------------------------------------
Total assets $5,673,978
- ----------------------------------------------------------------------------------
LIABILITIES:
Payables --
Investment securities purchased $ 61,107
Fund shares repurchased 15,000
Upon return of securities loaned 88,500
Due to affiliates 3,217
Accrued expenses 36,601
- ----------------------------------------------------------------------------------
Total liabilities $ 204,425
- ----------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $5,898,848
Accumulated net investment loss (2,946)
Accumulated net realized gain on investments 20,858
Net unrealized loss on investments (447,207)
- ----------------------------------------------------------------------------------
Total net assets $5,469,553
- ----------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $4,252,982/412,495 shares) $ 10.31
Class B (based on $908,165/90,379 shares) $ 10.05
Class C (based on $308,406/30,664 shares) $ 10.06
MAXIMUM OFFERING PRICE:
Class A ($10.31 [divided by] 94.25%) $ 10.94
==================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
Statement of Operations (unaudited)
For the Six Months Ended 9/30/08
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $116) $36,721
Interest 1,334
Income from securities loaned, net 215
- -------------------------------------------------------------------------------------
Total investment income $ 38,270
- -------------------------------------------------------------------------------------
EXPENSES:
Management fees $20,928
Transfer agent fees and expenses
Class A 2,197
Class B 2,131
Class C 362
Distribution fees
Class A 4,661
Class B 5,124
Class C 1,837
Administrative fees 628
Custodian fees 28,326
Registration fees 13,823
Professional fees 21,034
Printing expense 2,108
Fees and expenses of nonaffiliated trustees 2,810
Miscellaneous 1,315
- -------------------------------------------------------------------------------------
Total expenses $ 107,284
Less fees waived and expenses reimbursed by Pioneer
Investment Management, Inc. (65,982)
Less fees paid indirectly (86)
- -------------------------------------------------------------------------------------
Net expenses $ 41,216
- -------------------------------------------------------------------------------------
Net investment loss $ (2,946)
- -------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 12,778
- -------------------------------------------------------------------------------------
Change in net unrealized loss on investments $ (530,703)
- -------------------------------------------------------------------------------------
Net loss on investments $ (517,925)
- -------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (520,871)
=====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 21
Statement of Changes in Net Assets
For the Six Months Ended 9/30/08 and the Year Ended 3/31/08, respectively
Six Months
Ended
9/30/08 Year Ended
(unaudited) 3/31/08
FROM OPERATIONS:
Net investment loss $ (2,946) $ (2,662)
Net realized gain on investments 12,778 97,524
Change in net unrealized loss on investments (530,703) (131,807)
- -----------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (520,871) $ (36,945)
- -----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net realized gain:
Class A ($0.00 and $0.22 per share, respectively) $ -- $ (62,227)
Class B ($0.00 and $0.22 per share, respectively) -- (13,917)
Class C ($0.00 and $0.22 per share, respectively) -- (3,793)
- -----------------------------------------------------------------------------------------
Total distributions to shareowners $ -- $ (79,937)
- -----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $1,499,407 $3,362,328
Reinvestment of distributions -- 39,751
Cost of shares repurchased (995,322) (531,538)
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from Fund share
transactions $ 504,085 $2,870,541
- -----------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (16,786) $2,753,659
NET ASSETS:
Beginning of period 5,486,339 2,732,680
- -----------------------------------------------------------------------------------------
End of period $5,469,553 $5,486,339
- -----------------------------------------------------------------------------------------
Accumulated net investment loss $ (2,946) $ --
- -----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
9/30/08 9/30/08 3/31/08 3/31/08
Shares Amount Shares Amount
(unaudited) (unaudited)
Class A
Shares sold 102,813 $1,147,309 189,640 $2,242,465
Reinvestment of distributions -- -- 2,338 27,262
Less shares repurchased (48,259) (554,610) (28,920) (336,094)
- --------------------------------------------------------------------------------------------
Net increase 54,554 $ 592,699 163,058 $1,933,633
============================================================================================
Class B
Shares sold 25,778 $ 285,454 73,683 $ 854,241
Reinvestment of distributions -- -- 926 10,608
Less shares repurchased (30,725) (339,475) (12,190) (140,802)
- --------------------------------------------------------------------------------------------
Net increase (decrease) (4,947) $ (54,021) 62,419 $ 724,047
============================================================================================
Class C
Shares sold 5,854 $ 66,644 22,832 $ 265,622
Reinvestment of distributions -- -- 164 1,881
Less shares repurchased (9,146) (101,237) (4,543) (54,642)
- --------------------------------------------------------------------------------------------
Net increase (decrease) (3,292) $ (34,593) 18,453 $ 212,861
============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 23
Financial Highlights
Six Months
Ended Year Year
9/30/08 Ended Ended
unaudited) 3/31/08 3/31/07
Class A
Net asset value, beginning of period $ 11.32 $ 11.26 $ 10.98
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income loss $ 0.01 $ 0.01 $ 0.01
Net realized and unrealized gain (loss) on investments (1.02) 0.27 0.58
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ (1.01) $ 0.28 $ 0.59
Distributions to shareowners:
Net investment income -- -- --
Net realized gain -- (0.22) (0.31)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.01) $ 0.06 $ 0.28
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.31 $ 11.32 $ 11.26
==============================================================================================================
Total return* (8.92)% 2.39% 5.41%
Ratio of net expenses to average net assets+ 1.25%** 1.25% 1.25%
Ratio of net investment income (loss) to average net assets+ 0.11%** 0.13% 0.03%
Portfolio turnover rate 25%** 30% 65%
Net assets, end of period (in thousands) $ 4,253 $ 4,053 $ 2,194
Ratios with no waiver of fees and assumption of expenses by PIM and no
reductions for fees paid indirectly:
Net expenses 3.59%** 3.94% 5.34%
Net investment loss (2.23)%** (2.56)% (4.06)%
Ratios with waiver of fees and assumption of expenses by PIM and
reductions for fees paid indirectly:
Net expenses 1.25%** 1.25% 1.25%
Net investment income (loss) 0.11%** 0.13% 0.03%
==============================================================================================================
Year Year Year
Ended Ended Ended
3/31/06 3/31/05 3/31/04
Class A
Net asset value, beginning of period $ 11.28 $ 11.93 $ 8.99
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income loss $ (0.01) $ 0.06 $ (0.03)
Net realized and unrealized gain (loss) on investments 1.22 0.56 2.97
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 1.21 $ 0.62 $ 2.94
Distributions to shareowners:
Net investment income (0.06) -- --
Net realized gain (1.45) (1.27) --
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.30) $ (0.65) $ 2.94
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.98 $ 11.28 $ 11.93
==============================================================================================================
Total return* 11.10% 5.50% 32.70%
Ratio of net expenses to average net assets+ 1.29% 1.30% 1.30%
Ratio of net investment income (loss) to average net assets+ (0.11)% 0.51% (0.33)%
Portfolio turnover rate 102% 236% 41%
Net assets, end of period (in thousands) $ 1,729 $ 1,692 $ 1,790
Ratios with no waiver of fees and assumption of expenses by PIM and no
reductions for fees paid indirectly:
Net expenses 6.09% 6.00% 5.38%***
Net investment loss (4.91)% (4.20)% (4.41)%***
Ratios with waiver of fees and assumption of expenses by PIM and
reductions for fees paid indirectly:
Net expenses 1.29% 1.30% 1.30%
Net investment income (loss) (0.11)% (0.51)% (0.33)%
==============================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** In the absence of the negative registration fees in the statement of
operations, which relates to a change in estimate for registration fees in
the period ended March 2003, the gross expenses ratio to average net assets
would have been 5.31%. As a result of the expenses limitation arrangement
(see footnote 2), there would be no effect on the per share operating
performance, total return and the net expenses and net investment loss
ratios to average net assets.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
Six Months
Ended
9/30/08 Year Ended
(unaudited) 3/31/08
Class B
Net asset value, beginning of period $ 11.09 $ 11.13
- --------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.04) $ (0.05)
Net realized and unrealized gain (loss) on investments (1.00) 0.23
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ (1.04) $ 0.18
Distributions to shareowners:
Net realized gain -- (0.22)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.04) $ (0.04)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.05 $ 11.09
==========================================================================================================================
Total return* (9.38)% 1.51%
Ratio of net expenses to average net assets+ 2.16%** 2.17%
Ratio of net investment loss to average net assets+ (0.78)%** (0.78)%
Portfolio turnover rate 25%** 30%
Net assets, end of period (in thousands) $ 908 $ 1,057
Ratios with no waiver of fees and assumption of expenses by PIM and no reductions for
fees paid indirectly:
Net expenses 4.64%* * 5.01%
Net investment loss (3.26)%** (3.62)%
Ratios with waiver of fees and assumption of expenses by PIM and reductions for fees paid
indirectly:
Net expenses 2.15%** 2.15%
Net investment loss (0.77)%** (0.76)%
==========================================================================================================================
Year Ended 12/15/05 (a)
3/31/07 to 3/31/06
Class B
Net asset value, beginning of period $ 10.95 $ 10.76
- --------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.06) $ (0.02)
Net realized and unrealized gain (loss) on investments 0.55 0.21
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.49 $ 0.19
Distributions to shareowners:
Net realized gain (0.31) --
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.18 $ 0.19
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.13 $ 10.95
==========================================================================================================================
Total return* 4.50% 1.77%(b)
Ratio of net expenses to average net assets+ 2.15% 2.15%**
Ratio of net investment loss to average net assets+ (0.83)% (0.71)%**
Portfolio turnover rate 65% 102%
Net assets, end of period (in thousands) $ 366 $ 211
Ratios with no waiver of fees and assumption of expenses by PIM and no reductions for
fees paid indirectly:
Net expenses 7.63% 11.90%**
Net investment loss (6.31)% (10.46)%**
Ratios with waiver of fees and assumption of expenses by PIM and reductions for fees paid
indirectly:
Net expenses 2.15% 2.15%**
Net investment loss (0.83)% (0.71)%**
==========================================================================================================================
(a) Class B shares were first publicly offered on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 25
Financial Highlights (continued)
Six Months
Ended
9/30/08 Year Ended
(unaudited) 3/31/08
Class C
Net asset value, beginning of period $ 11.09 $ 11.13
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.05) $ (0.05)
Net realized and unrealized gain (loss) on investments (0.98) 0.23
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ (1.03) $ 0.18
Distributions to shareowners:
Net realized gain -- (0.22)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.03) $ (0.04)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.06 $ 11.09
=========================================================================================================================
Total return* (9.29)% 1.51%
Ratio of net expenses to average net assets+ 2.15%** 2.17%
Ratio of net investment loss to average net assets+ (0.77)%** (0.79)%
Portfolio turnover rate 25%** 30%
Net assets, end of period (in thousands) $ 308 $ 377
Ratios with no waiver of fees and assumption of expenses by PIM and no reductions for
fees paid indirectly:
Net expenses 4.37%** 5.00%
Net investment loss (2.99)%** (3.62)%
Ratios with waiver of fees and assumption of expenses by PIM and reductions for fees paid
indirectly:
Net expenses 2.15%** 2.15%
Net investment loss (0.77)%** (0.77)%
=========================================================================================================================
Year Ended 12/15/05 (a)
3/31/07 to 3/31/06
Class C
Net asset value, beginning of period $ 10.95 $ 10.76
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment loss $ (0.07) $ (0.02)
Net realized and unrealized gain (loss) on investments 0.56 0.21
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from investment operations $ 0.49 $ 0.19
Distributions to shareowners:
Net realized gain (0.31) --
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.18 $ 0.19
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.13 $ 10.95
=========================================================================================================================
Total return* 4.50% 1.77%(b)
Ratio of net expenses to average net assets+ 2.15% 2.15%**
Ratio of net investment loss to average net assets+ (0.86)% (0.80)%**
Portfolio turnover rate 65% 102%
Net assets, end of period (in thousands) $ 173 $ 102
Ratios with no waiver of fees and assumption of expenses by PIM and no reductions for
fees paid indirectly:
Net expenses 6.85% 11.50%**
Net investment loss (5.56)% (10.15)%**
Ratios with waiver of fees and assumption of expenses by PIM and reductions for fees paid
indirectly:
Net expenses 2.15% 2.15%**
Net investment loss (0.86)% (0.80)%**
=========================================================================================================================
(a) Class C shares were first publicly offered on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
Notes to Financial Statements | 9/30/08 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Fundamental Growth Fund (the Fund), formerly Pioneer Large Cap Growth
Fund, is a Delaware statutory trust registered under the Investment Company Act
of 1940 as a diversified, open-end management investment company. The Fund's
investment objective is to seek long-term capital growth.
The Fund offers three classes of shares -- Class A, Class B and Class C shares.
Shares of Class A, Class B and Class C each represent an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation proceeds, except that each class of
shares can bear different transfer agent and distribution fees and have
exclusive voting rights with respect to the distribution plans that have been
adopted by Class A, Class B and Class C shareowners, respectively.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting year. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. 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 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.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 27
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of, the Board
of Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the NYSE. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. As of September 30, 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
date in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Dividends and interest are reported net of unrecoverable foreign taxes
withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required. Tax
years prior to 2004 are closed (not subject to examination by tax
authorities) due to the expiration of statute of limitations; all other tax
years are open.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
The tax character of current year distributions will be determined at the
end of the Fund's fiscal year. The tax character of distributions paid
during the year ended March 31, 2008 was as follows:
2008
Distributions paid from:
Ordinary income $10,150
Long-term capital gain 69,787
- --------------------------------------------------------------------------------
Total $79,937
================================================================================
28 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
The following shows the components of distributable earnings on a federal
income tax basis at March 31, 2008:
2008
Distributable earnings:
Undistributed long-term gain $10,960
Unrealized appreciation 80,616
- --------------------------------------------------------------------------------
Total $91,576
================================================================================
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 $631 in underwriting commissions on the sale of Class A
shares during the six months ended September 30, 2008.
D. Security Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
fair value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The loans are secured by
collateral 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.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or subcustodians. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 29
determining that the value of the collateral remains at least equal to the
repurchase price.
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 expense (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.
2. Management Agreement
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.
PIM has agreed not to impose its management fee and to assume other operating
expenses of the Fund to the extent necessary to limit expenses to 1.25%, 2.15%
and 2.15% of the average daily net assets attributable to Class A, Class B and
Class C shares, respectively. These expense limitations are in effect through
August 1, 2010 for Class A shares and through August 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 $2 in management fees,
administrative costs and certain other services payable to PIM at September 30,
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 $3,155 in transfer agent fees payable to PIMSS at September 30,
2008.
30 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
4. Distribution Plan
The Fund adopted a Plan of Distribution with respect to Class A, Class B and
Class C shares in accordance with Rule 12b-1 of the Investment Company Act of
1940. Pursuant to the Plan, the Fund pays PFD 0.25% of the Fund's average daily
net assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
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 for Class
B and Class C shares 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 $60 in distribution
fees payable to PFD at September 30, 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 six months ended September 30, 2008, no CDSCs were paid to
PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended September 30, 2008, the Fund's
expenses were reduced by $86 under such arrangements.
6. New Pronouncement
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 Fundamental Growth Fund | Semiannual Report | 9/30/08 31
Results of Shareholder Meeting
At a special meeting held on May 13, 2008, shareholders of the Fund were asked
to consider the proposals described below. A report of the total votes cast by
the Fund's shareholders follows:
For Withhold Abstain Broker Non-Votes
Proposal 1--To elect
Trustees
John F. Cogan, Jr. 393,502.145 927.591 0.000 0.000
Daniel K. Kingsbury 393,502.145 927.591 0.000 0.000
David R. Bock 390,146.872 4,282.864 0.000 0.000
Mary K. Bush 390,146.872 4,282.864 0.000 0.000
Benjamin M. Friedman 390,146.872 4,282.864 0.000 0.000
Margaret B.W. Graham 393,502.145 927.591 0.000 0.000
Thomas J. Perna 390,146.872 4,282.864 0.000 0.000
Marguerite A. Piret 393,502.145 927.591 0.000 0.000
Stephen K. West 390,146.872 4,282.864 0.000 0.000
John Winthrop 393,502.145 927.591 0.000 0.000
For Against Abstain Broker Non-Votes
Proposal 2 -- To approve an
amendment to the
Declaration of Trust 345,105.683 5,314.864 721.189 43,288.000
For Against Abstain Broker Non-Votes
Proposal 3A -- To approve
changes to the Fund's
fundamental investment
policy relating to borrowing
money 345,918.683 4,501.864 721.189 43,288.000
Proposal 3B -- To approve
changes to the Fund's
fundamental investment
policy relating to
underwriting 345,918.683 4,282.864 940.189 43,288.000
Proposal 3C -- To approve
changes to the Fund's
fundamental investment
policy relating to lending 345,918.683 4,282.864 940.189 43,288.000
Proposal 3D -- To approve
changes to the Fund's
fundamental investment
policy relating to issuing
senior securities 345,918.683 4,282.864 940.189 43,288.000
Proposal 3E -- To approve
changes to the Fund's
fundamental investment
policy relating to real estate 345,918.683 4,282.864 940.189 43,288.000
Proposal 3F -- To approve
changes to the Fund's
fundamental investment
policy relating to
commodities 346,846.274 3,355.273 940.189 43,288.000
32 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
For Against Abstain Broker Non-Votes
Proposal 3G -- To approve
changes to the Fund's
fundamental investment
policy relating to
concentration 345,918.683 3,355.273 1,867.780 43,288.000
Proposal 3H -- To approve
changes to the Fund's
fundamental investment
policy relating to
diversification. 347,065.274 3,355.273 721.189 43,288.000
Proposal 3I -- To approve
the conversion of the Fund's
investment objective from
fundamental to non-
fundamental 345,105.683 5,314.864 721.189 43,288.000
For Against Abstain Broker Non-Votes
Proposal 4 -- To approve an
Amended and Restated
Management Agreement
with PIM 345,918.683 4,501.864 721.189 43,288.000
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 33
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
34 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
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 considered
that the Fund's annualized total return was in the second quintile of its
Morningstar category for the one and three year periods ended June 30, 2007.
(In all quintile rankings referred to throughout this disclosure, first
quintile is most favorable to the Fund's shareowners. Thus, highest relative
performance would be first quintile and lowest relative expenses would also be
first quintile.) 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 the independent Trustees
for this purpose using data provided by Strategic
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 35
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 considered that, although the Fund pays a management fee at a
fixed rate as a percentage of the Fund's net assets, without any breakpoints,
the management fee rate paid by the Fund 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 and
36 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
that PIM is subsidizing the Fund because it has not reached adequate scale. The
Trustees also considered the relatively small size of the Fund compared to its
peer group Morningstar category. The Trustees concluded that, at current and
reasonably foreseeable asset levels, breakpoints in the management fee were not
currently necessary.
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 Fundamental Growth Fund | Semiannual Report | 9/30/08 37
Trustees, Officers and Service Providers
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Benjamin M. Friedman Mark E. Bradley, Treasurer
Margaret B.W. Graham Dorothy E. Bourassa, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
38 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
This page for your notes.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 39
This page for your notes.
40 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
This page for your notes.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 41
This page for your notes.
42 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
This page for your notes.
Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08 43
This page for your notes.
44 Pioneer Fundamental Growth Fund | Semiannual Report | 9/30/08
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 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 19434-02-1108
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Fundamental Growth Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date November 28, 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 November 28, 2008
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date November 28, 2008
* Print the name and title of each signing officer under his or her signature.