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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 811-07870
Pioneer Real Estate Shares
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, 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: December 31
Date of reporting period: January 1, 2014 through June 30, 2014
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 STOCKHOLDERS.
Pioneer Real
Estate Shares
--------------------------------------------------------------------------------
Semiannual Report | June 30, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PWREX
Class B PBREX
Class C PCREX
Class Y PYREX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 20
Notes to Financial Statements 28
Trustees, Officers and Service Providers 36
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 1
President's Letter
Dear Shareowner,
As we move past the midway point of 2014, U.S. economic growth is still expected
to exceed 2% for the full calendar year, despite the fact that U.S. gross
domestic product (GDP) for the first quarter was revised down to - 2.9% in May.
The markets, in fact, almost completely ignored that bad news, as more timely
data -- especially labor market data -- pointed to continuing economic strength.
By mid-year, the number of people filing initial unemployment claims and the
number of job openings were at levels last seen during the boom years of 2005
through 2007, and unemployment was down to just over 6%. Barring an external
shock, we think it's likely that the domestic economic expansion will continue.
The Federal Reserve System (the Fed) is widely expected to end its stimulative
QE (quantitative easing) program by the end of this year and to begin raising
the Federal funds rate in 2015; two more signs that the U.S. economic recovery
is on increasingly solid footing. The timing and pace of Fed's actions remain
uncertain, however, as Fed Chair Janet Yellen has continually stressed that Fed
policy will be sensitive to incoming economic data, and any signs of
accelerating inflation could prompt an earlier increase in the Federal funds
rate.
A modestly improving European economy and continuing economic improvement in
Japan appear likely to result in improving global economic growth in the second
half of 2014, further supporting the U.S. economy. Some slack remains in the
labor markets and capacity utilization, which offers the potential for
continuing non-inflationary growth.
While the U.S. economy appears robust and the global economy seems to be
improving, there are still weaknesses and risks to the economic outlook. Risks
of an adverse shock also remain. Military conflicts and political tensions are
widespread, with particular concerns about recent developments in the Middle
East that could prove disruptive to the global oil supply. While most of the
widely recognized risks may already be "priced into" the market, we caution
against complacency and believe investors should continue to expect market
volatility.
2 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in equity and bond markets, using in-depth research to identify undervalued
individual securities, and using thoughtful risk management to construct
portfolios which seek to balance potential risks and rewards in an ever-changing
world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury*
Daniel K. Kingsbury*
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion 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.
* Mr. Kingsbury resigned effective August 8, 2014.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 3
Portfolio Management Discussion | 6/30/14
In the following interview, Matthew Troxell of AEW Capital Management, L.P.,
sub-adviser for Pioneer Real Estate Shares, discusses the market environment for
real estate-related investments and the Fund's performance during the six-month
period ended June 30, 2014.
Q How did the Fund perform during the six-months ended June 30, 2014?
A The Fund's Class A shares returned 17.15% at net asset value during the
six-month period ended June 30, 2014, while the Fund's benchmark, the
Morgan Stanley Capital International (MSCI) U.S. REIT Index (the MSCI
Index)(1), returned 17.68%. During the same period, the average return of
the 258 mutual funds in Lipper's Real Estate Funds category was 16.44%, and
the average return of the 279 mutual funds in Morningstar's Real Estate
Funds category was 16.57%.
Q What were the main reasons for the Fund's slight underperformance of the
MSCI Index during the six-month period ended June 30, 2014? Specifically,
which investment strategies or individual holdings had the biggest effects
on the Fund's relative returns?
A On a relative basis, the Fund underperformed the benchmark during the
period, a result largely attributable to negative stock selection results
in the diversified, industrial and hotel sectors as well as the portfolio's
modest cash position, which was a detractor in light of the real estate
investment trust (REIT) sector's strong absolute performance.
The individual positions that detracted the most from the Fund's
benchmark-relative performance during the six-month period included
overweights in the underperforming REITs Forest City Enterprises and Hilton
Worldwide, and an underweight to the outperforming apartment REIT Essex
Property Trust. Shares of Forest City came under selling pressure during
the period when investors had a negative reaction to
(1) The MSCI information may only be used for your internal use, may not be
reproduced or redisseminated in any form and may not be used as a basis for
or a component of any financial instruments or products or indices. None of
the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an
"as is" basis and the user of this information assumes the entire risk of
any use made of this information. MSCI, each of its affiliates and each
other person involved in or related to compiling, computing or creating any
MSCI information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
management's development and capital expenditure plans. Hilton has strong
fundamentals in our view, but lagged many of its peers in the lodging
sector during the first half of 2014 in anticipation of a private equity
group's trimming its stake in the hotelier. The Fund's underweight exposure
in Essex Property Trust hurt relative performance as the REIT rallied in
response to strong market conditions on the west coast.
Q Which of your investment strategies augmented the Fund's performance during
the six-month period ended June 30, 2014, and which strategies detracted
from performance?
A The Fund's strong absolute performance during the period was driven by both
stock selection results and sector allocation strategies. With regard to
stock selection, the portfolio's holdings in the triple-net-lease, regional
mall, and office sectors made the largest contributions to returns. (A
triple-net-lease is a lease agreement that designates the lessee, or
tenant, as being solely responsible for all of the costs relating to the
asset being leased, in addition to the rental fee applied under the lease.
Under a triple-net-lease, the tenant typically pays the net real estate
taxes owed on the leased asset as well as the net building insurance
premiums and net common area maintenance costs. Because the tenant is
covering these "triple" costs - which would otherwise be the responsibility
of the property owner - the rent charged under a triple-net-lease agreement
is generally lower than the rent charged in a standard lease agreement.)
The holdings that contributed the most to the Fund's performance during the
six-month period included a significant underweight position in the
underperforming triple-net-lease REIT American Realty Capital Properties,
which posted a negative return for the first half of 2014. Overweight
Portfolio positions in the outperforming office REIT Kilroy Realty and the
apartment REIT Equity Residential also contributed to returns. Kilroy
Realty's portfolio of assets - like those of Essex Property Trust
(mentioned previously) - continued to benefit during the period from
strength in the west coast markets, particularly in San Francisco and
Seattle. Equity Residential reported solid quarterly earnings results
during the period, which were driven by strong apartment demand.
In addition, despite strong performance from the Portfolio's individual
holdings in the triple-net-lease sector, the sector as a whole
underperformed during the period, and so being underweight there
contributed to the Portfolio's returns. An overweight position in the
outperforming diversified sector also benefited the Fund's returns during
the period.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 5
Q Did you implement any major changes to the Fund's strategy during the
six-month period ended June 30, 2014?
A We didn't make any significant changes to the Fund's portfolio during the
period. The portfolio continues to be well diversified* by property type
and geographic region, and our investment process remains focused on
security selection within each property sector. Throughout the period, the
portfolio had a bias toward companies with stronger balance sheets and
higher-quality assets as well as toward companies with development
pipelines that we believe are undervalued by the market. Based on improving
property market fundamentals and relative valuations within the REIT
sector, however, our preference for attractive value led us to increase the
portfolio's overweight in the office sector and move to a bigger
underweight in the triple-net-lease sector.
From a sector standpoint, we continue to underweight the Fund in sectors
that are very yield-driven and have, in our view, less operating upside.
Those sectors include health care and triple net lease. With regard to
triple-net-lease REITs, we believe the long-term nature of the income
streams in the sector provides limited ability to offset rising interest
rates, especially when compared with REITs in other sectors that may be
able to capitalize on rising rents in a strong economy. The Fund also is
underweight in the lodging sector, as we believe the undeniably strong
fundamentals of the sector are largely reflected in current prices (the
lodging group has returned nearly 35% over the past year).
We have overweighted the portfolio in the diversified sector, which
represents a group of companies, in our view, that trade at a discount both
to the assets that they own and to their pure-play REIT counterparts.
Within the diversified sector, the Fund holds a larger-than-benchmark
weighting in biotech lab-space REITs. Elsewhere, we remain positive on the
storage sector, even though it has already enjoyed a decade of very strong
growth. The REITs in the storage sector continue to demonstrate the ability
to accretively add private portfolios to their platform. Finally, we see
value in higher-quality mall and apartment REITs as well as select office
and shopping center companies.
* Diversification does not assure a profit nor protect against loss in a
declining market.
6 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
Q How would you characterize the health of the underlying subsectors of the
REIT market as of June 30, 2014?
A We saw general improvement in all subsectors of the REIT market during the
six-month period, particularly during the second quarter. We expect 2014 to
be the first year of the economic recovery where all of the major REIT
subsectors see positive growth in net operating income (NOI). The
shorter-lease sectors, such as apartments and self-storage, are seeing
slowing, but still solid growth as occupancies stabilize at high levels,
while the longer-lease sectors, such as office and retail, are still a few
years away from peak NOI growth, in our opinion.
Rents are moving up in all property types, and some longer-lease property
types should soon transition into an environment where leases will be
signed at higher rents than those currently in place, thus providing a
boost to NOI. Supply risk remains minimal on a national level, with only
the apartment sector now back to long-term construction averages. We are
seeing some supply growth in a few select office and industrial markets,
but the growth is generally targeted at locations with strong demand.
Q How would you rate the attractiveness of REIT valuations at this point in
the economic recovery?
A REITs certainly benefited from the surprising drop in market interest rates
during the first half of 2014. By period end, REIT valuations were at near
long-term historical averages, making them appear relatively expensive
compared with other equities, but attractive relative to bonds.
The Federal Reserve (the Fed) is on pace to end its stimulative bond-buying
program later this year. If U.S. economic data continues to improve,
investors will eventually begin to focus on the timing of the Fed's first
increase in the benchmark Federal funds rate. When interest rates
eventually do rise over the next several years, we expect REIT performance
gains to be driven more by earnings growth than by additional expansion of
the multiples investors are willing to pay for cash flows.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 7
Please refer to the Schedule of Investments on pages 17-19 for a full listing of
Fund securities.
The Fund invests in REIT securities, the value of which can fall for a variety
of reasons, such as declines in rental income, fluctuating interest rates, poor
property management, environmental liabilities, uninsured damage, increased
competition, or changes in real estate tax laws.
The Fund invests in a limited number of securities and, as a result, the Fund's
performance may be more volatile than the performance of other funds holding
more securities.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries or sectors.
These risks may increase share price volatility.
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 opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
8 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
Portfolio Summary | 6/30/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 100.0%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Apartment 15.2%
Regional Mall 14.0%
Office 12.4%
Health Care 10.5%
Diversified 9.6%
Shopping Center 9.1%
Storage 7.7%
Industrial 7.2%
Hotel 6.5%
Cash and equivalents 3.4%
Triple Net Lease 2.9%
Manufactured Home 1.5%
10 Largest Holdings*
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
1. Simon Property Group, Inc. 8.41%
--------------------------------------------------------------------------------
2. Equity Residential Property Trust, Inc. 6.08
--------------------------------------------------------------------------------
3. Prologis, Inc. 5.18
--------------------------------------------------------------------------------
4. Boston Properties, Inc. 5.00
--------------------------------------------------------------------------------
5. Public Storage, Inc. 4.88
--------------------------------------------------------------------------------
6. AvalonBay Communities, Inc. 4.75
--------------------------------------------------------------------------------
7. Host Hotels & Resorts, Inc. 4.24
--------------------------------------------------------------------------------
8. HCP, Inc. 3.88
--------------------------------------------------------------------------------
9. Kilroy Realty Corp. 3.48
--------------------------------------------------------------------------------
10. Ventas, Inc. 3.46
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any securities listed.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 9
Prices and Distributions | 6/30/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 6/30/14 12/31/13
--------------------------------------------------------------------------------
A $ 28.47 $ 24.56
--------------------------------------------------------------------------------
B $ 28.09 $ 24.23
--------------------------------------------------------------------------------
C $ 28.08 $ 24.24
--------------------------------------------------------------------------------
Y $ 28.43 $ 24.52
--------------------------------------------------------------------------------
Distributions per Share: 1/1/14-6/30/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2900 $ -- $ --
--------------------------------------------------------------------------------
B $0.0800 $ -- $ --
--------------------------------------------------------------------------------
C $0.1800 $ -- $ --
--------------------------------------------------------------------------------
Y $0.3500 $ -- $ --
--------------------------------------------------------------------------------
Index Definition
--------------------------------------------------------------------------------
The MSCI U.S. REIT Index is an unmanaged, widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-14.
10 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
Performance Update | 6/30/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Real Estate Shares at public
offering price during the periods shown, compared to that of the Morgan Stanley
Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of June 30, 2014)
--------------------------------------------------------------------------------
Net Public
Asset Offering MSCI
Value Price U.S. REIT
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 Years 9.33% 8.68% 9.63%
5 Years 22.53 21.08 23.84
1 Year 12.38 5.91 13.38
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.48%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
6/30/2004 $ 9,425 $ 10,000
6/30/2005 $ 12,675 $ 13,293
6/30/2006 $ 15,630 $ 15,905
6/30/2007 $ 17,125 $ 17,821
6/30/2008 $ 14,483 $ 15,300
6/30/2009 $ 8,325 $ 8,608
6/30/2010 $ 12,856 $ 13,363
6/30/2011 $ 16,985 $ 17,918
6/30/2012 $ 18,978 $ 20,282
6/30/2013 $ 20,457 $ 22,113
6/30/2014 $ 22,988 $ 25,072
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 11
Performance Update | 6/30/14 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class B shares of Pioneer Real Estate Shares during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of June 30, 2014)
--------------------------------------------------------------------------------
MSCI
If If U.S. REIT
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 8.07% 8.07% 9.63%
5 Years 20.94 20.94 23.84
1 Year 10.76 6.76 13.38
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.84%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
6/30/2004 $ 10,000 $ 10,000
6/30/2005 $ 13,337 $ 13,293
6/30/2006 $ 16,293 $ 15,905
6/30/2007 $ 17,695 $ 17,821
6/30/2008 $ 14,816 $ 15,300
6/30/2009 $ 8,396 $ 8,608
6/30/2010 $ 12,802 $ 13,363
6/30/2011 $ 16,709 $ 17,918
6/30/2012 $ 18,430 $ 20,282
6/30/2013 $ 19,613 $ 22,113
6/30/2014 $ 21,724 $ 25,072
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
12 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
Performance Update | 6/30/14 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Real Estate Shares during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of June 30, 2014)
--------------------------------------------------------------------------------
MSCI
If If U.S. REIT
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 8.39% 8.39% 9.63%
5 Years 21.47 21.47 23.84
1 Year 11.41 11.41 13.38
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.32%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
6/30/2004 $ 10,000 $ 10,000
6/30/2005 $ 13,348 $ 13,293
6/30/2006 $ 16,324 $ 15,905
6/30/2007 $ 17,733 $ 17,821
6/30/2008 $ 14,868 $ 15,300
6/30/2009 $ 8,461 $ 8,608
6/30/2010 $ 12,952 $ 13,363
6/30/2011 $ 16,962 $ 17,918
6/30/2012 $ 18,797 $ 20,282
6/30/2013 $ 20,088 $ 22,113
6/30/2014 $ 22,380 $ 25,072
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 13
Performance Update | 6/30/14 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Real Estate Shares during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of June 30, 2014)
--------------------------------------------------------------------------------
MSCI U.S.
If If REIT
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 9.95% 9.95% 9.63%
5 Years 23.20 23.20 23.84
1 Year 12.90 12.90 13.38
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.01%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
6/30/2004 $ 5,000,000 $ 5,000,000
6/30/2005 $ 6,758,506 $ 6,646,358
6/30/2006 $ 8,376,352 $ 7,952,262
6/30/2007 $ 9,221,887 $ 8,910,669
6/30/2008 $ 7,840,544 $ 7,650,229
6/30/2009 $ 4,547,587 $ 4,304,214
6/30/2010 $ 7,069,766 $ 6,681,497
6/30/2011 $ 9,393,703 $ 8,959,044
6/30/2012 $ 10,556,029 $ 10,140,993
6/30/2013 $ 11,434,032 $ 11,056,580
6/30/2014 $ 12,909,398 $ 12,535,832
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The 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.
14 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
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 Real Estate Shares
Based on actual returns from January 1, 2014 through June 30, 2014.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 1/1/14
--------------------------------------------------------------------------------
Ending Account $1,171.50 $1,162.70 $1,166.10 $1,174.40
Value on 6/30/14
--------------------------------------------------------------------------------
Expenses Paid $ 7.75 $ 15.82 $ 12.46 $ 5.34
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.44%,
2.95%, 2.32%, and 0.99% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 15
Comparing Ongoing Fund Expenses (continued)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Real Estate Shares
Based on a hypothetical 5% per year return before expenses, reflecting the
period from January 1, 2014 through June 30, 2014.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 1/1/14
--------------------------------------------------------------------------------
Ending Account $1,017.65 $1,010.17 $1,013.29 $1,019.89
Value on 6/30/14
--------------------------------------------------------------------------------
Expenses Paid $ 7.20 $ 14.70 $ 11.58 $ 4.96
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.44%,
2.95%, 2.32%, and 0.99% for Class A, Class B, Class C, and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
16 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
Schedule of Investments | 6/30/14 (unaudited)
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
COMMON STOCKS -- 96.6%
CONSUMER SERVICES -- 0.9%
Hotels, Resorts & Cruise Lines -- 0.9%
60,800 Hilton Worldwide Holdings, Inc. $ 1,416,640
-------------
Total Consumer Services $ 1,416,640
-------------------------------------------------------------------------------------
REAL ESTATE -- 95.7%
Diversified REIT -- 7.8%
56,200 American Assets Trust, Inc. $ 1,941,710
35,100 American Realty Capital Properties, Inc. 439,803
34,000 Armada Hoffler Properties, Inc. 329,120
104,500 Empire State Realty Trust, Inc.* 1,724,250
6,340 First Potomac Realty Trust 83,181
79,600 Liberty Property Trust 3,019,228
97,400 Retail Opportunity Investments Corp. 1,532,102
34,200 Vornado Realty Trust 3,650,166
-------------
$ 12,719,560
-------------------------------------------------------------------------------------
Industrial REIT -- 5.2%
198,900 Prologis, Inc. $ 8,172,801
28,100 Rexford Industrial Realty, Inc.* 400,144
-------------
$ 8,572,945
-------------------------------------------------------------------------------------
Office REIT -- 15.1%
38,400 Alexandria Real Estate Equities, Inc. $ 2,981,376
122,300 BioMed Realty Trust, Inc. 2,669,809
66,800 Boston Properties, Inc. 7,894,424
62,700 Douglas Emmett, Inc. 1,769,394
96,200 DuPont Fabros Technology, Inc. 2,593,552
64,200 Gramercy Property Trust, Inc.* 388,410
88,200 Kilroy Realty Corp. 5,493,096
49,500 Piedmont Office Realty Trust, Inc. 937,530
-------------
$ 24,727,591
-------------------------------------------------------------------------------------
Residential REIT -- 16.7%
50,300 American Campus Communities, Inc. $ 1,923,472
49,300 American Homes 4 Rent* 875,568
52,700 AvalonBay Communities, Inc. 7,493,413
46,300 Camden Property Trust 3,294,245
55,500 Equity Lifestyle Properties, Inc. 2,450,880
152,300 Equity Residential Property Trust, Inc. 9,594,900
8,467 Essex Property Trust, Inc. 1,565,633
-------------
$ 27,198,111
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 17
Schedule of Investments | 6/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
Retail REIT -- 23.2%
63,300 Acadia Realty Trust $ 1,778,097
168,900 DDR Corp. 2,977,707
37,600 Federal Realty Investment Trust 4,546,592
46,600 National Retail Properties, Inc. 1,733,054
73,300 Ramco-Gershenson Properties Trust 1,218,246
49,000 Regency Centers Corp. 2,728,320
79,800 Simon Property Group, Inc. 13,269,144
55,600 Taubman Centers, Inc. 4,215,036
74,800 The Macerich Co. 4,992,900
23,500 Washington Prime Group, Inc. 440,390
-------------
$ 37,899,486
-------------------------------------------------------------------------------------
Specialized REIT -- 25.4%
9,300 Aviv Real Estate Investment Trust, Inc. $ 261,981
70,800 CubeSmart 1,297,056
44,700 EPR Properties 2,497,389
68,400 Extra Space Storage, Inc. 3,642,300
147,900 HCP, Inc. 6,120,102
85,900 Health Care Real Estate Investment Trust, Inc. 5,383,353
304,000 Host Hotels & Resorts, Inc. 6,691,040
44,900 Public Storage, Inc. 7,693,615
84,500 RLJ Lodging Trust 2,441,205
85,100 Ventas, Inc. 5,454,910
-------------
$ 41,482,951
-------------------------------------------------------------------------------------
Diversified Real Estate Activities -- 0.8%
30,500 Alexander & Baldwin, Inc.* $ 1,264,225
-------------------------------------------------------------------------------------
Real Estate Operating Companies -- 1.5%
125,500 Forest City Enterprises, Inc.* $ 2,493,685
-------------
Total Real Estate $ 156,358,554
-------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $80,879,207) $ 157,775,194
-------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 96.6%
(Cost $80,879,207) (a) $ 157,775,194
-------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 3.4% $ 5,523,119
-------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 163,298,313
=====================================================================================
The accompanying notes are an integral part of these financial statements.
18 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
* Non-income producing security.
REIT Real Estate Investment Trust.
(a) At June 30, 2014, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $84,204,915 was
as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $73,616,029
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (45,750)
-----------
Net unrealized appreciation $73,570,279
===========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended June 30, 2014 aggregated $13,570,074 and $4,996,188,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
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.) See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
as Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of June 30, 2014, in valuing
the Fund's investments:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $157,775,194 $ -- $ -- $157,775,194
--------------------------------------------------------------------------------
Total $157,775,194 $ -- $ -- $157,775,194
================================================================================
During the six months ended June 30, 2014, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 19
Statement of Assets and Liabilities | 6/30/14 (unaudited)
ASSETS:
Investment in securities (cost $80,879,207)
Cash $157,775,194
Receivables -- 4,288,590
Investment securities sold 803,497
Fund shares sold 402,255
Dividends 567,412
Other 41,138
-------------------------------------------------------------------------------------
Total assets $163,878,086
=====================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 164,811
Fund shares repurchased 350,407
Trustee fees 56
Due to affiliates 46,816
Accrued expenses 17,683
-------------------------------------------------------------------------------------
Total liabilities $ 579,773
=====================================================================================
NET ASSETS:
Paid-in capital $ 87,288,368
Distributions in excess of net investment income (3,624)
Accumulated net realized loss on investments (882,418)
Net unrealized appreciation on investments 76,895,987
-------------------------------------------------------------------------------------
Total net assets $163,298,313
=====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $99,903,354/3,509,468 shares) $ 28.47
Class B (based on $3,263,731/116,186 shares) $ 28.09
Class C (based on $12,154,508/432,823 shares) $ 28.08
Class Y (based on $47,976,720/1,687,787 shares) $ 28.43
MAXIMUM OFFERING PRICE:
Class A ($28.47 / 94.25%) $ 30.21
=====================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
Statement of Operations (unaudited)
For the Six Months Ended 6/30/14
INVESTMENT INCOME:
Dividends $ 2,696,150
Interest 528
------------------------------------------------------------------------------------------------
Total investment income $ 2,696,678
------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 589,876
Transfer agent fees
Class A 72,295
Class B 11,467
Class C 13,599
Class Y 1,112
Distribution fees
Class A 112,037
Class B 17,007
Class C 57,210
Shareholder communications expense 65,397
Administrative reimbursements 34,745
Custodian fees 1,424
Professional fees 21,319
Printing expense 7,018
Fees and expenses of nonaffiliated Trustees 3,531
Miscellaneous 34,333
------------------------------------------------------------------------------------------------
Total expenses $ 1,042,370
------------------------------------------------------------------------------------------------
Net investment income $ 1,654,308
------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 1,203,946
------------------------------------------------------------------------------------------------
Change in net unrealized appreciation on investments $20,084,508
------------------------------------------------------------------------------------------------
Net gain on investments $21,288,454
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $22,942,762
================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 21
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------
Six Months
Ended
6/30/14 Year Ended
(unaudited) 12/31/13
------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,654,308 $ 1,286,381
Net realized gain on investments 1,203,946 9,163,065
Change in net unrealized appreciation (depreciation)
on investments 20,084,508 (8,974,246)
------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 22,942,762 $ 1,475,200
------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.29 and $0.22 per share, respectively) $ (981,980) $ (754,256)
Class B ($0.08 and $0.00 per share, respectively) (9,546) --
Class C ($0.18 and $0.02 per share, respectively) (78,265) (7,932)
Class Y ($0.35 and $0.36 per share, respectively) (588,141) (524,193)
Net realized gain:
Class A ($0.00 and $0.27 per share, respectively) (906,742)
Class B ($0.00 and $0.14 per share, respectively) (22,961)
Class C ($0.00 and $0.27 per share, respectively) (131,999)
Class Y ($0.00 and $0.27 per share, respectively) (387,975)
------------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,657,932) $ (2,736,058)
------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 31,139,850 $ 36,227,317
Reinvestment of distributions 1,307,128 2,104,342
Cost of shares repurchased (20,364,538) (41,130,187)
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 12,082,440 $ (2,798,528)
------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 33,367,270 $ (4,059,386)
NET ASSETS:
Beginning of period $129,931,043 $ 133,990,429
------------------------------------------------------------------------------------------
End of period $163,298,313 $ 129,931,043
==========================================================================================
Distributions in excess of net investment income $ (3,624) $ --
==========================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
-------------------------------------------------------------------------------------------
'14 Shares '14 Amount
(unaudited) (unaudited) '13 Shares '13 Amount
-------------------------------------------------------------------------------------------
Class A
Shares sold 500,134 $13,527,759 663,832 $ 17,329,001
Reinvestment of distributions 34,504 946,460 63,237 1,598,276
Less shares repurchased (286,694) (7,658,045) (870,384) (22,597,136)
-------------------------------------------------------------------------------------------
Net increase (decrease) 247,944 $ 6,816,174 (143,315) $ (3,669,859)
===========================================================================================
Class B
Shares sold or exchanged 1,484 $ 39,158 9,788 $ 252,200
Reinvestment of distributions 348 9,502 911 22,722
Less shares repurchased (30,943) (816,131) (86,615) (2,201,551)
-------------------------------------------------------------------------------------------
Net decrease (29,111) $ (767,471) (75,916) $ (1,926,629)
===========================================================================================
Class C
Shares sold 64,938 $ 1,734,480 94,498 $ 2,444,157
Reinvestment of distributions 2,787 75,454 5,356 133,782
Less shares repurchased (72,643) (1,928,541) (180,295) (4,533,347)
-------------------------------------------------------------------------------------------
Net decrease (4,918) $ (118,607) (80,441) $ (1,955,408)
===========================================================================================
Class Y
Shares sold 589,809 $15,838,453 627,929 $ 16,201,959
Reinvestment of distributions 10,062 275,712 13,872 349,562
Less shares repurchased (368,476) (9,961,821) (463,004) (11,798,153)
-------------------------------------------------------------------------------------------
Net increase 231,395 $ 6,152,344 178,797 $ 4,753,368
===========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 23
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/14 Ended Ended Ended Ended Ended
(unaudited) 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09
-----------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of year $ 24.56 $ 24.76 $ 21.79 $ 20.41 $ 16.24 $ 13.00
----------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.29 $ 0.23 $ 0.45 $ 0.42 $ 0.21 $ 0.35
Net realized and unrealized gain (loss) on investments 3.91 0.06 2.97 1.37 4.34 3.37
----------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 4.20 $ 0.29 $ 3.42 $ 1.79 $ 4.55 $ 3.72
----------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.29) $ (0.22) $ (0.45) $ (0.41) $ (0.22) $ (0.34)
Net realized gain -- (0.27) -- -- -- --
Tax return of capital -- -- -- -- (0.16) (0.14)
----------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.29) $ (0.49) $ (0.45) $ (0.41) $ (0.38) $ (0.48)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.91 $ (0.20) $ 2.97 $ 1.38 $ 4.17 $ 3.24
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.47 $ 24.56 $ 24.76 $ 21.79 $ 20.41 $ 16.24
============================================================================================================================
Total return* 17.15% 1.14% 15.75% 8.90% 28.25% 30.15%
Ratio of net expenses to average net assets 1.44%** 1.48% 1.52% 1.59% 1.62% 1.85%
Ratio of net investment income to average net assets 2.20%** 0.89% 1.87% 1.94% 1.17% 2.77%
Portfolio turnover rate 7%** 17% 8% 8% 14% 23%
Net assets, end of period (in thousands) $99,903 $80,091 $84,310 $75,318 $75,520 $67,510
============================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/14 Ended Ended Ended Ended Ended
(unaudited) 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09
-----------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of year $ 24.23 $ 24.43 $ 21.50 $ 20.13 $ 16.03 $ 12.84
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.10 $ (0.17) $ 0.12 $ 0.16 $ (0.04) $ 0.17
Net realized and unrealized gain (loss) on investments 3.84 0.11 2.93 1.38 4.29 3.34
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.94 $ (0.06) $ 3.05 $ 1.54 $ 4.25 $ 3.51
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.08) $ -- $ (0.12)(a) $ (0.17)(a) $ (0.09) $ (0.18)
Net realized gain -- (0.14)(a) -- -- -- --
Tax return of capital -- -- -- -- (0.06) (0.14)
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.08) $ (0.14) $ (0.12) $ (0.17) $ (0.15) $ (0.32)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.86 $ (0.20) $ 2.93 $ 1.37 $ 4.10 $ 3.19
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.09 $ 24.23 $ 24.43 $ 21.50 $ 20.13 $ 16.03
===================================================================================================================================
Total return* 16.27% (0.26)% 14.22% 7.67% 26.60% 28.38%
Ratio of net expenses to average net assets 2.95%** 2.84% 2.85% 2.75% 2.90% 3.25%
Ratio of net investment income (loss) to average net assets 0.60%** (0.56)% 0.48% 0.73% (0.13)% 1.41%
Portfolio turnover rate 7%** 17% 8% 8% 14% 23%
Net assets, end of period (in thousands) $ 3,264 $ 3,520 $ 5,404 $ 6,657 $ 8,484 $ 8,753
===================================================================================================================================
* 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.
(a) Dividends and/or capital gain distributions may continue to be reinvested
in Class B shares, and shareholders may exchange their Class B shares for
Class B shares of other Pioneer Funds, as permitted by existing exchange
privileges.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 25
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/14 Ended Ended Ended Ended Ended
(unaudited) 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09
------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of year $ 24.24 $ 24.45 $ 21.53 $ 20.15 $ 16.06 $ 12.86
------------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.17 $ 0.00(a) $ 0.24 $ 0.23 $ 0.06 $ 0.22
Net realized and unrealized gain (loss) on investments 3.85 0.08 2.93 1.38 4.27 3.34
------------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 4.02 $ 0.08 $ 3.17 $ 1.61 $ 4.33 $ 3.56
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.18) $ (0.02) $ (0.25) $ (0.23) $ (0.14) $ (0.22)
Net realized gain -- (0.27) -- -- -- --
Tax return of capital -- -- -- -- (0.10) (0.14)
------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.18) $ (0.29) $ (0.25) $ (0.23) $ (0.24) $ (0.36)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.84 $ (0.21) $ 2.92 $ 1.38 $ 4.09 $ 3.20
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.08 $ 24.24 $ 24.45 $ 21.53 $ 20.15 $ 16.06
==============================================================================================================================
Total return* 16.61% 0.27% 14.75% 8.07% 27.08% 28.87%
Ratio of net expenses to average net assets 2.32%** 2.32% 2.37% 2.42% 2.50% 2.89%
Ratio of net investment income to average net assets 1.32%** 0.02% 1.03% 1.09% 0.31% 1.76%
Portfolio turnover rate 7%** 17% 8% 8% 14% 23%
Net assets, end of period (in thousands) $12,155 $10,609 $12,667 $11,216 $12,082 $ 9,153
==============================================================================================================================
* 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.
(a) Amount rounds to less than $0.00 or $(0.00) per share.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
---------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/14 Ended Ended Ended Ended Ended
(unaudited) 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of year $ 24.52 $ 24.74 $ 21.78 $ 20.39 $ 16.23 $ 12.98
---------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.35 $ 0.36 $ 0.56 $ 0.56 $ 0.33 $ 0.44
Net realized and unrealized gain (loss) on investments 3.91 0.05 2.97 1.37 4.32 3.40
---------------------------------------------------------------------------------------------------------------------------
Net increase from investment operations $ 4.26 $ 0.41 $ 3.53 $ 1.93 $ 4.65 $ 3.84
---------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.35) $ (0.36) $ (0.57) $ (0.54) $ (0.28) $ (0.45)
Net realized gain -- (0.27) -- -- -- --
Tax return of capital -- -- -- -- (0.21) (0.14)
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.35) $ (0.63) $ (0.57) $ (0.54) $ (0.49) $ (0.59)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.91 $ (0.22) $ 2.96 $ 1.39 $ 4.16 $ 3.25
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.43 $ 24.52 $ 24.74 $ 21.78 $ 20.39 $ 16.23
===========================================================================================================================
Total return* 17.44% 1.61% 16.28% 9.60% 28.97% 31.38%
Ratio of net expenses to average net assets 0.99%** 1.01% 1.03% 1.00% 1.00% 1.06%
Ratio of net investment income to average net assets 2.71%** 1.41% 2.48% 2.35% 1.79% 3.49%
Portfolio turnover rate 7%** 17% 8% 8% 14% 23%
Net assets, end of period (in thousands) $47,977 $35,711 $31,610 $15,811 $46,845 $42,533
===========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 27
Notes to Financial Statements | 6/30/14 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Real Estate Shares (the Fund) is a Delaware statutory trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to seek long-term
growth of capital. Current income is a secondary objective.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Effective as of the close of business on December 31, 2009,
Class B shares are no longer offered to new or existing shareholders, except
that dividends and/or capital gain distributions may continue to be reinvested
in Class B shares, and shareholders may exchange their Class B shares for Class
B shares of other Pioneer funds, as permitted by existing exchange privileges.
Each class of shares represents an interest in the same portfolio of investments
of the Fund and has identical rights (based on relative net asset values) to
assets and liquidation proceeds. Share classes can bear different rates of
class-specific fees and expenses such as transfer agent and distribution fees.
Differences in class-specific fees and expenses will result in differences in
net investment income and, therefore, the payment of different dividends from
net investment income earned by each class. The Amended and Restated Declaration
of Trust of the Fund gives the Board the flexibility to specify either per-share
voting or dollar-weighted voting when submitting matters for shareholder
approval. Under per-share voting, each share of a class of the Fund is entitled
to one vote. Under dollar-weighted voting, a shareholder's voting power is
determined not by the number of shares owned, but by the dollar value of the
shares on the record date. Each share class has exclusive voting rights with
respect to matters affecting only that class, including with respect to the
distribution plan for that class. There is no distribution plan for Class Y
shares. Class B shares convert to Class A shares approximately eight years after
the date of purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
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:
28 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
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 that have traded on an exchange
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 available, generally are valued at
the mean between the last bid and asked prices. Short-term fixed income
securities with remaining maturities of sixty days or less generally are
valued at amortized cost. Shares of money market mutual funds are valued at
such funds' net asset value.
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.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At June 30, 2014, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services or broker-dealers).
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
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 29
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. 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 provision for federal income taxes is required.
As of December 31, 2013, the Fund did not accrue any interest or penalties
related to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years remain subject to examination by Federal and
State tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the Fund's taxable year. The tax character of distributions
paid during the years ended December 31, 2013 was as follows:
---------------------------------------------------------------------------
2013
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $1,286,381
Long-term capital gain 1,449,677
---------------------------------------------------------------------------
Total $2,736,058
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2013:
---------------------------------------------------------------------------
2013
---------------------------------------------------------------------------
Distributable Earnings:
Undistributed long-term capital gain $ 1,239,344
Net unrealized appreciation 53,485,771
---------------------------------------------------------------------------
Total $54,725,115
===========================================================================
30 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
The difference between book-basis and tax-basis net 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 $5,991 in underwriting commissions on the sale of Class
A shares during the six months ended June 30, 2014.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees. All
expenses and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services are allocated among
the classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C and Class Y shares
can reflect different transfer agent and distribution expense rates.
E. Risks
Because the Fund may invest a substantial portion of its assets in Real
Estate Investment Trusts (REITs), the Fund may be subject to certain risks
associated with direct investments in REITs. REITs may be affected by
changes in the value of their underlying properties and by defaults of
their borrowers or tenants. REITs depend generally on their ability to
generate cash flow to make distributions to shareowners, and certain REITs
have self-liquidation provisions by which mortgages held may be paid in
full and distributions of capital returns may be made at any time. In
addition, the performance of a REIT may be affected by its failure to
qualify for tax-free pass through of income under the Internal Revenue Code
or its failure to maintain exemption from registration under the Investment
Company Act of 1940. The Fund's prospectus contains unaudited information
regarding the Fund's principal risks. Please refer to that document when
considering the Fund's principal risks.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 31
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a subcustodian of the
Fund. PIM is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.80% of
the Fund's average daily net assets up to $1 billion and 0.75% on assets over $1
billion. For the six months ended June 30, 2014, the effective management fee
(excluding waivers and/or assumption of expenses) was equal to 0.80% of the
Fund's daily net assets. PIM pays a portion of the fee it receives from the Fund
to AEW Capital Management, L.P. as compensation for sub-advisory services to the
Fund.
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 as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$16,008 in management fees, administrative costs and certain other
reimbursements payable to PIM at June 30, 2014.
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.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the six months ended June 30, 2014, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $41,442
Class B 5,670
Class C 7,987
Class Y 10,298
--------------------------------------------------------------------------------
Total $65,397
================================================================================
32 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $26,379 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at June 30, 2014.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C
shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net
assets attributable to Class A shares as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also 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. Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $4,429 in distribution fees payable to PFD at June 30, 2014.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 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 12 months of purchase are subject to a CDSC of 1.00%,
based on the lower of cost or market value of shares being redeemed. Shares
purchased as part of an exchange remain subject to any CDSC that applied to the
original purchase of those shares. There is no CDSC for Class Y shares. Proceeds
from the CDSCs are paid to PFD. For the six months ended June 30, 2014, CDSCs in
the amount of $858 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended June 30, 2014, the Fund's expenses
were not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 33
may borrow up to the lesser of the amount available under the facility or the
limits set for borrowing by the Fund's prospectus and the 1940 Act. The credit
facility in effect until February 12, 2014 was in the amount of $215 million. As
of February 12, 2014, the facility is in the amount of $240 million. Under such
facility, depending on the type of loan, interest on borrowings is payable at
the London Interbank Offered Rate (LIBOR) plus 0.90% (0.85% as of February 12,
2014) on an annualized basis, or the Alternate Base Rate, which is the greater
of (a) the facility's administrative agent's daily announced prime rate on the
borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing date and (c)
2% plus the overnight Euro dollar rate on the borrowing date. The Funds pay an
annual commitment fee to participate in a credit facility. The commitment fee is
allocated among participating Funds based on an allocation schedule set forth in
the credit agreement. For the six months ended June 30, 2014, the Fund had no
outstanding borrowings.
7. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm for the fiscal year ending
December 31, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which
resigned as the Fund's independent registered public accounting firm, effective
upon completion of the audit of the Fund's financial statements for the fiscal
year ended December 31, 2013.
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
years, Ernst & Young LLP's reports on the financial statements of the Fund have
not contained an adverse opinion or disclaimer of opinion and have not been
qualified or modified as to uncertainty, audit scope or accounting principles.
Further, there have been no disagreements with Ernst & Young LLP on any matter
of accounting principles or practices, financial statement disclosure, or
auditing scope or procedure, which, if not resolved to the satisfaction of Ernst
& Young LLP would have caused Ernst & Young LLP to make reference to the subject
matter of the disagreement in connection with its report on the financial
statements. In addition, there have been no reportable events of the kind
described in Item 304 (a)(1)(v) of Regulation S-K under the Securities Exchange
Act of 1934.
34 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
8. Subsequent Event
Upcoming Conversion of Class B Shares
As of the close of business on November 10, 2014 (the "Conversion Date"), all
outstanding Class B shares of the Pioneer funds will be converted to Class A
shares. Shareholders may continue to hold their Class B shares until the
Conversion Date. Prior to the Conversion Date, redemptions of Class B shares are
subject to any applicable contingent deferred sales charges (CDSCs). Class A
shares acquired through the conversion will not be subject to CDSCs, nor will
any sales charges be assessed in connection with the conversion. After the
Conversion Date, subsequent purchases of Class A shares will be subject to sales
charges as described in the Fund's prospectus.
Pioneer Real Estate Shares | Semiannual Report | 6/30/14 35
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Daniel K. Kingsbury, President*
David R. Bock Mark D. Goodwin, Executive
Benjamin M. Friedman Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer**
Daniel K. Kingsbury* Christopher J. Kelley, Secretary
Marguerite A. Piret
Kenneth J. Taubes
Stephen K. West***
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
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 us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Chief Executive Officer of the Fund. Resigned effective August 8, 2014.
** Chief Financial and Accounting Officer of the Fund.
*** Retired effective July 15, 2014.
36 Pioneer Real Estate Shares | Semiannual Report | 6/30/14
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
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: us.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
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 19407-09-0814
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 12(a)(1), 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 (see attachment);
(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.
Not applicable.
(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.
Not applicable.
(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.
Not applicable.
(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.
Not applicable.
(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.
Not applicable.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants 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.
Not applicable.
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
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.
Not applicable.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants 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 registrant's 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 of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
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 registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's 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 registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
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 registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
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 registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R 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 and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
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.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) 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.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
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 Real Estate Shares d
By (Signature and Title)* /s/ Mark Goodwin
Mark Goodwin, Executive Vice President
Date August 28, 2014
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/ Mark Goodwin
Mark Goodwin, Executive Vice President
Date August 28, 2014
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date August 28, 2014
* Print the name and title of each signing officer under his or her signature.