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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, 2015 through June 30, 2015
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
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Semiannual Report | June 30, 2015
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Ticker Symbols:
Class A PWREX
Class C PCREX
Class Y PYREX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 18
Notes to Financial Statements 25
Trustees, Officers and Service Providers 32
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 1
President's Letter
Dear Shareowner,
At mid-year, economic conditions and government policies around the world are
far from homogeneous, and we expect them to continue to diverge. In the United
States, an ongoing economic expansion has brought the unemployment rate down to
levels where wage growth is likely to accelerate. Economic growth and fiscal
austerity have dramatically reduced the Federal budget deficit, while very
accommodative Federal Reserve System policies have kept interest rates
exceptionally low. In Europe and Japan, cyclical economic recoveries/expansions
appear to be gaining traction, buttressed by aggressive quantitative easing
policies of central banks as well as cheaper currencies. China's ongoing
transition from an infrastructure investment-driven to a consumer-driven economy
and the dramatic decline in the price of oil -- largely a result of U.S.
"fracking" -- have benefited some countries while burdening others. On balance,
though, the global economic outlook has continued to improve, although economic
and geopolitical "storm clouds" remain.
Today's market environment presents numerous opportunities as well as challenges
for investors. While we believe that the capital markets may already have priced
in some recent trends, such as the U.S. dollar's appreciation against a basket
of global currencies, it is worth noting that investment risks and opportunities
are not always aligned with the economic outlook.
Since 1928, Pioneer's investment professionals have focused on identifying and
capitalizing on the investment opportunities that present themselves in a
variety of ever-changing economic and market conditions, including those we face
today, while seeking to limit the risk of the permanent impairment of our
clients' capital. Our ongoing goal is to deliver competitive returns consistent
with our strategies' stated style and objectives and consistent with our
shareholders' expectations over a range of market conditions. We believe our
shareowners benefit from the experience and tenure of our investment teams, the
insights generated from extensive research resources, and our commitment to
prudent risk management.
2 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
We encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner, as we do when managing the assets
our clients have entrusted to us.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
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.
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 3
Portfolio Management Discussion | 6/30/15
Real estate fundaments remain solid during the six-month period ended June 30,
2015, but concerns about higher interest rates weighed on the asset class and
drove performance into negative territory. 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 period.
Q How did the Fund perform during the six-month period ended June 30, 2015?
A Class A shares of Pioneer Real Estate Shares returned -5.64% at net asset
value during the six-month period ended June 30, 2015, while the Fund's
benchmark, the Morgan Stanley Capital International (MSCI) Real Estate
Investment Trust (REIT) Index (the MSCI Index)(1), returned -6.19%. During
the same period, the average return for the 267 mutual funds in Lipper's
Real Estate Funds category was -5.14%, and the average return of the 287
mutual funds in Morningstar's Real Estate Funds category was -5.31%.
Q How would you describe the market environment for real estate investment
trusts (REITS) during the six-month period ended June 30, 2015?
A The six-month period featured a tale of two quarters, with REITs showing
gains in the first three months of the period, only to see those gains
overcome by losses over the next three months. During the second quarter of
2015, signs of a recovering U.S. economy were accompanied by an upward move
in long-term interest rates that hurt the performance of U.S. REITs --
resulting in the asset class's suffering more than a 10% decline for the
quarter ended June 30th. The various REIT subsectors responded to the rise
in interest rates in different fashion. Freestanding retail companies, such
as those in triple-net-lease and health care, struggled the most because
they are long-duration assets with higher interest-rate sensitivity. (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
(1) The MSCI information may only be used for your internal use, may not be
reproduced or re-disseminated 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 | 6/30/15
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.)
Meanwhile, short-duration assets with lower interest-rate sensitivity, such
as residential, lodging, and self-storage REITs, held up relatively well.
(Duration is a measure of the sensitivity of the price, or the value of
principal, of an investment to changes in interest rates, expressed as a
number of years.)
Q Which investments or strategies aided the Fund's benchmark-relative
performance during the six-month period ended June 30, 2015?
A Overall performance was negative for the period, but positive stock
selection and sector allocation results allowed the Fund to outperform the
MSCI Index benchmark. At the company level, the portfolio had a tilt toward
REITs with lower debt, which tend to perform better in a rising-rate
environment than do leveraged companies carrying high debt burdens.
In terms of stock selection, benchmark-relative results were strongest in
the storage, diversified, and regional mall REIT sectors. Meanwhile, the
positive impact of sector allocation strategies on the Fund's relative
performance was mainly driven by underweight positions in the
underperforming triple-net-lease and health care sectors and an overweight
in the outperforming storage sector.
Among the Fund's individual holdings, top contributors to benchmark-
relative performance included overweight positions in the outperforming
storage company Extra Space Storage, in diversified company Forest City
Enterprises, and in apartment company Equity Residential. Extra Space
Storage continued to post better-than-expected earnings results during the
first half of this year, and raised 2015 earnings guidance. In January 2015,
Forest City Enterprises announced that it would be converting to REIT status
in January 2016, a move which boosted its performance. Equity Residential
has a solid development pipeline that is leasing up well as the company's
projects are delivered to the market.
Q Which investments or strategies detracted from the Fund's benchmark-
relative performance results during the six-month period ended June 30,
2015?
A Stock selection results for the Fund were weakest in the apartment, health
care, and industrial REIT sectors over the six-month period. Among
individual names, the top detractors from relative performance included a
lack of portfolio exposure to the outperforming apartment companies Essex
Property Trust and UDR, and hotel company Gaming & Leisure Properties.
Apartments fared very well in the first half of 2015, given investors'
concerns about rising interest rates. As a result, the Fund's performance
was hurt by not owning Essex Property Trust and UDR, but those negatives
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 5
were more than offset by overweight positions in apartment companies Equity
Residential, Camden Property Trust, and AvalonBay Communities. As for Gaming
& Leisure Properties, the company proposed to buy real estate assets from
Pinnacle Entertainment, which was planning to spin the assets off into a
REIT. If the all-stock transaction is approved, it would significantly
increase the size of Gaming & Leisure's portfolio.
Q As you prepared for a rising interest-rate environment, did you make
adjustments to the Fund's investments strategies during the six-month period
ended June 30, 2015?
A We didn't make any significant changes to the Fund's investment strategy
during six-month period. The Fund's portfolio continued to be well
diversified* by property type and geographic region, and our investment
process continued to focus on security selection within each property
sector.
However, we trimmed some Fund positions based upon improving property-market
fundamentals and relative valuations. First, we decreased the portfolio's
overweight position in the office sector, primarily by selling an overweight
position in Kilroy Realty. In our opinion, the company's development
pipeline had become fully reflected in its stock price. Second, we moved the
portfolio's underweight position in the regional mall sector to an
overweight position. We believe improving retail sales should support
fundamentals for the sector in a rising-rate environment. Furthermore, new
supply is non-existent, and we think companies - such as Simon Property
Group - are seeing good returns from redevelopment projects of their
existing assets.
As we have noted, shorter-lease duration sectors with lower interest-rate
sensitivity tend to hold up better in a rising-rate environment than longer-
lease duration sectors, which have higher interest-rate sensitivity. With
interest rates trending higher, however, we don't think it is an effective
strategy to simply overweight shorter-lease sectors and underweight longer-
lease sectors. We prefer to take a value-oriented approach to identify
securities that we believe are underpriced relative to their peers. As such,
we are able to discern when investors have already priced lease duration
into REIT valuations, as we see with apartments today; or, when other
technical factors are at play in a sector, such as the current situation
with hotel REITs, which are facing an abundance of new supply.
Q What is your outlook for interest rates and REITs for the balance of 2015?
A At period end, expectations for U.S. gross domestic product growth for the
last three quarters of 2015 fell into the 2.5% to 3.0% range. Given the
improvement in the U.S. economy, the Federal Reserve System (the Fed) is
expected to raise interest rates during the second half of 2015, possibly in
September, although ongoing market concerns surrounding the Greek debt issue
as well as other troubled economies could push the Fed's first rate increase
into 2016.
* Diversification does not assure a profit nor protect against loss.
6 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
With the correction in REIT prices during the second quarter of 2015, by
many metrics, the REIT sector is more attractively valued than it has been
in some time. At June 30, 2015, REITs were trading at an 8% discount to net
asset value -- the biggest discount since September 2011. U.S. REIT
dividends** were at just below 4% mid-year, and they have continued to trade
at wider-than-average spreads to Treasuries. However, REITs remain expensive
versus other equities, in our view.
Yet, while the REIT market is likely to continue to react nervously to
upward moves in interest rates in the short term, we believe earnings growth
should support dividend growth and help to offset the negative effects of
rising rates in the medium to longer terms. Thus, going forward, we expect
REIT performance to be driven more by these improving earnings fundamentals
than by additional multiple expansion.
** Dividends are not guaranteed.
Please refer to the Schedule of Investments on pages 15-17 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.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
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. Past performance is no
guarantee of future results.
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 7
Portfolio Summary | 6/30/15
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Apartment 15.6%
Regional Mall 15.3%
Office 13.8%
Health Care 10.1%
Diversified 9.0%
Shopping Center 8.5%
Storage 8.4%
Hotel 7.5%
Industrial 6.7%
Triple Net Lease 2.1%
Manufactured Home 1.7%
Cash and equivalents 1.3%
10 Largest Holdings*
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
1. Simon Property Group, Inc. 9.22%
--------------------------------------------------------------------------------
2. Equity Residential Property Trust, Inc. 6.55
--------------------------------------------------------------------------------
3. Boston Properties, Inc. 5.47
--------------------------------------------------------------------------------
4. Public Storage, Inc. 5.14
--------------------------------------------------------------------------------
5. AvalonBay Communities, Inc. 5.01
--------------------------------------------------------------------------------
6. Prologis, Inc. 4.87
--------------------------------------------------------------------------------
7. Taubman Centers, Inc. 4.56
--------------------------------------------------------------------------------
8. Health Care Real Estate Investment Trust, Inc. 3.94
--------------------------------------------------------------------------------
9. HCP, Inc. 3.31
--------------------------------------------------------------------------------
10. Ventas, Inc. 3.03
--------------------------------------------------------------------------------
* 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.
8 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
Prices and Distributions | 6/30/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 6/30/15 12/31/14
--------------------------------------------------------------------------------
A $27.66 $29.58
--------------------------------------------------------------------------------
C $27.26 $29.15
--------------------------------------------------------------------------------
Y $27.63 $29.54
--------------------------------------------------------------------------------
Distributions per Share: 1/1/15-6/30/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.27 $-- $--
--------------------------------------------------------------------------------
C $0.14 $-- $--
--------------------------------------------------------------------------------
Y $0.32 $-- $--
--------------------------------------------------------------------------------
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 10-12.
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 9
Performance Update | 6/30/15 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, 2015)
--------------------------------------------------------------------------------
Net Public
Asset Offering MSCI
Value Price U.S. REIT
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 Years 6.59% 5.96% 6.96%
5 Years 13.30 11.97 14.29
1 Year 4.41 -1.60 3.93
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.47%
--------------------------------------------------------------------------------
[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
6/30/2005 $ 9,425 $10,000
6/30/2006 $11,624 $11,965
6/30/2007 $12,736 $13,407
6/30/2008 $10,771 $11,510
6/30/2009 $ 6,191 $ 6,476
6/30/2010 $ 9,561 $10,053
6/30/2011 $12,632 $13,480
6/30/2012 $14,114 $15,258
6/30/2013 $15,214 $16,636
6/30/2014 $17,096 $18,861
6/30/2015 $17,851 $19,603
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.
10 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
Performance Update | 6/30/15 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, 2015)
--------------------------------------------------------------------------------
MSCI
If If U.S. REIT
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 5.67% 5.67% 6.96%
5 Years 12.34 12.34 14.29
1 Year 3.54 3.54 3.93
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.35%
--------------------------------------------------------------------------------
[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
6/30/2005 $10,000 $10,000
6/30/2006 $12,229 $11,965
6/30/2007 $13,285 $13,407
6/30/2008 $11,138 $11,510
6/30/2009 $ 6,339 $ 6,476
6/30/2010 $ 9,703 $10,053
6/30/2011 $12,707 $13,480
6/30/2012 $14,082 $15,258
6/30/2013 $15,049 $16,636
6/30/2014 $16,766 $18,861
6/30/2015 $17,360 $19,603
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). 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 | 6/30/15 11
Performance Update | 6/30/15 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, 2015)
--------------------------------------------------------------------------------
Net
Asset MSCI U.S.
Value REIT
Period (NAV) Index
--------------------------------------------------------------------------------
10 Years 7.19% 6.96%
5 Years 13.87 14.29
1 Year 4.84 3.93
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.03%
--------------------------------------------------------------------------------
[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
6/30/2005 $ 5,000,000 $5,000,000
6/30/2006 $ 6,196,897 $5,982,421
6/30/2007 $ 6,822,430 $6,703,423
6/30/2008 $ 5,800,501 $5,755,204
6/30/2009 $ 3,364,343 $3,238,025
6/30/2010 $ 5,230,273 $5,026,435
6/30/2011 $ 6,949,541 $6,739,816
6/30/2012 $ 7,809,439 $7,628,986
6/30/2013 $ 8,458,994 $8,317,775
6/30/2014 $ 9,550,483 $9,430,604
6/30/2015 $10,012,568 $9,801,414
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.
12 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
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, 2015 through June 30, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 1/1/15
--------------------------------------------------------------------------------
Ending Account $ 943.60 $ 939.70 $ 945.50
Value on 6/30/15
--------------------------------------------------------------------------------
Expenses Paid $ 6.65 $ 10.63 $ 4.82
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.38%, 2.21%,
and 1.00% for Class A, 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 | 6/30/15 13
Comparing Ongoing Fund Expenses (continued)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Real Estate Shares
Based on a hypothetical 5% per year return before expenses, reflecting the
period from January 1, 2015 through June 30, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 1/1/15
--------------------------------------------------------------------------------
Ending Account $1,017.95 $1,013.84 $1,019.84
Value on 6/30/15
--------------------------------------------------------------------------------
Expenses Paid $ 6.90 $ 11.03 $ 5.01
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.38%, 2.21%,
and 1.00% for Class A, 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).
14 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
Schedule of Investments | 6/30/15 (unaudited)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 99.0%
CONSUMER SERVICES -- 2.6%
Hotels, Resorts & Cruise Lines -- 2.6%
94,800 Extended Stay America, Inc. $ 1,779,396
73,600 Hilton Worldwide Holdings, Inc. 2,027,680
-------------
$ 3,807,076
-------------
Total Consumer Services $ 3,807,076
--------------------------------------------------------------------------------
REAL ESTATE -- 96.4%
Diversified REIT's -- 4.2%
59,600 American Assets Trust, Inc. $ 2,336,916
99,900 Empire State Realty Trust, Inc.* 1,704,294
30,000 Liberty Property Trust 966,600
62,318 STORE Capital Corp. 1,252,592
-------------
$ 6,260,402
--------------------------------------------------------------------------------
Health Care REIT -- 10.2%
133,300 HCP, Inc. $ 4,861,451
88,000 Health Care Real Estate Investment Trust, Inc. 5,775,440
71,600 Ventas, Inc. 4,445,644
-------------
$ 15,082,535
--------------------------------------------------------------------------------
Hotel & Resort REIT -- 4.9%
60,700 Chatham Lodging Trust $ 1,606,729
166,700 Host Hotels & Resorts, Inc. 3,305,661
80,400 RLJ Lodging Trust 2,394,312
-------------
$ 7,306,702
--------------------------------------------------------------------------------
Industrial REIT -- 6.1%
192,700 Prologis, Inc. $ 7,149,170
128,200 Rexford Industrial Realty, Inc.* 1,869,156
-------------
$ 9,018,326
--------------------------------------------------------------------------------
Office REIT -- 17.0%
119,500 BioMed Realty Trust, Inc. $ 2,311,130
66,300 Boston Properties, Inc. 8,024,952
58,000 Douglas Emmett, Inc. 1,562,520
95,100 DuPont Fabros Technology, Inc. 2,800,695
18,900 Easterly Government Properties, Inc. 300,888
84,150 Gramercy Property Trust, Inc. 1,966,586
20,800 Kilroy Realty Corp. 1,396,720
121,500 Paramount Group, Inc. 2,084,940
166,300 Piedmont Office Realty Trust, Inc. 2,925,217
19,200 Vornado Realty Trust 1,822,656
-------------
$ 25,196,304
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 15
Schedule of Investments | 6/30/15 (unaudited) (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Residential REIT -- 17.4%
54,800 American Campus Communities, Inc. $ 2,065,412
47,200 American Homes 4 Rent* 757,088
46,000 AvalonBay Communities, Inc. 7,354,020
46,600 Camden Property Trust 3,461,448
48,500 Equity LifeStyle Properties, Inc. 2,550,130
136,900 Equity Residential Property Trust, Inc. 9,606,273
-------------
$ 25,794,371
--------------------------------------------------------------------------------
Retail REIT -- 24.9%
82,600 Acadia Realty Trust $ 2,404,486
179,000 DDR Corp. 2,767,340
33,400 Federal Realty Investment Trust 4,278,206
44,200 National Retail Properties, Inc. 1,547,442
94,400 Retail Opportunity Investments Corp. 1,474,528
78,200 Simon Property Group, Inc. 13,530,163
54,800 Tanger Factory Outlet Centers, Inc. 1,737,160
96,300 Taubman Centers, Inc. 6,692,850
33,700 The Macerich Co. 2,514,020
-------------
$ 36,946,195
--------------------------------------------------------------------------------
Specialized REIT -- 8.4%
96,200 CubeSmart $ 2,227,992
40,300 Extra Space Storage, Inc. 2,628,366
40,900 Public Storage, Inc. 7,540,733
-------------
$ 12,397,091
--------------------------------------------------------------------------------
Diversified Real Estate Activities -- 1.2%
45,100 Alexander & Baldwin, Inc.* $ 1,776,940
--------------------------------------------------------------------------------
Real Estate Operating Companies -- 2.1%
141,700 Forest City Enterprises, Inc.* $ 3,131,570
-------------
Total Real Estate $ 142,910,436
--------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $85,108,894) $ 146,717,512
--------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.0%
(Cost $85,108,894) (a) $ 146,717,512
--------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.0% $ 1,519,484
--------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 148,236,996
================================================================================
The accompanying notes are an integral part of these financial statements.
16 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
* Non-income producing security.
REIT Real Estate Investment Trust.
(a) At June 30, 2015, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $87,171,221 was
as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $60,594,368
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (1,048,077)
-----------
Net unrealized appreciation $59,546,291
===========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended June 30, 2015 aggregated $14,903,870 and $23,240,085,
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) as Level 3.
The following is a summary of the inputs used as of June 30, 2015, in valuing
the Fund's investments:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $146,717,512 $-- $-- $146,717,512
--------------------------------------------------------------------------------
Total $146,717,512 $-- $-- $146,717,512
================================================================================
During the six months ended June 30, 2015, 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 | 6/30/15 17
Statement of Assets and Liabilities | 6/30/15 (unaudited)
ASSETS:
Investment in securities (cost $85,108,894) $146,717,512
Cash 413,793
Receivables --
Investment securities sold 1,052,480
Fund shares sold 186,910
Dividends 559,010
Prepaid Expenses 32,267
--------------------------------------------------------------------------------
Total assets $148,961,972
================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 48,870
Fund shares repurchased 606,251
Due to affiliates 56,966
Accrued expenses 12,889
--------------------------------------------------------------------------------
Total liabilities $ 724,976
================================================================================
NET ASSETS:
Paid-in capital $ 76,365,386
Distributions in excess of net investment income (2,700)
Accumulated net realized gain 10,265,692
Net unrealized appreciation on investments 61,608,618
--------------------------------------------------------------------------------
Total net assets $148,236,996
================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $96,746,661/3,497,428 shares) $ 27.66
Class C (based on $12,220,987/448,276 shares) $ 27.26
Class Y (based on $39,269,348/1,421,303 shares) $ 27.63
MAXIMUM OFFERING PRICE:
Class A ($27.66 / 94.25%) $ 29.35
================================================================================
The accompanying notes are an integral part of these financial statements.
18 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
Statement of Operations (unaudited)
For the Six Months Ended 6/30/15
INVESTMENT INCOME:
Dividends $2,677,259
Interest 419
---------------------------------------------------------------------------------------------
Total investment income $ 2,677,678
---------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 683,527
Transfer agent fees
Class A 68,852
Class C 13,509
Class Y 831
Distribution fees
Class A 134,748
Class C 69,763
Shareholder communications expense 77,970
Administrative reimbursements 30,774
Custodian fees 4,475
Registration fees 25,719
Professional fees 19,165
Printing expense 4,863
Fees and expenses of nonaffiliated Trustees 4,073
Miscellaneous 8,779
---------------------------------------------------------------------------------------------
Total expenses $ 1,147,048
---------------------------------------------------------------------------------------------
Net investment income $ 1,530,630
---------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 9,248,393
---------------------------------------------------------------------------------------------
Change in net unrealized depreciation on investments $(19,639,235)
---------------------------------------------------------------------------------------------
Net loss on investments $(10,390,842)
---------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (8,860,212)
=============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 19
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Six Months
Ended
6/30/15 Year Ended
(unaudited) 12/31/14
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,530,630 $ 1,724,373
Net realized gain on investments 9,248,393 13,311,930
Change in net unrealized appreciation (depreciation)
on investments (19,639,235) 24,436,374
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ (8,860,212) $ 39,472,677
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.27 and $0.29 per share, respectively) $ (958,079) $ (989,405)
Class C ($0.14 and $0.12 per share, respectively) (65,080) (53,796)
Class Y ($0.32 and $0.41 per share, respectively) (510,171) (681,172)
Net realized gain:
Class A ($0.00 and $1.85 per share, respectively) -- (6,373,490)
Class B ($0.00 and $0.10 per share, respectively)* -- (11,714)
Class C ($0.00 and $1.79 per share, respectively) -- (778,104)
Class Y ($0.00 and $1.85 per share, respectively) -- (3,044,959)
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,533,330) $ (11,932,640)
--------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 25,517,981 $ 57,260,120
Reinvestment of distributions 1,244,684 9,852,654
Cost of shares repurchased (39,203,716) (53,512,265)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (12,441,051) $ 13,600,509
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (22,834,593) $ 41,140,546
NET ASSETS:
Beginning of period $ 171,071,589 $ 129,931,043
--------------------------------------------------------------------------------------------------
End of period $ 148,236,996 $ 171,071,589
--------------------------------------------------------------------------------------------------
Distributions in excess of net investment income $ (2,700) $ --
==================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
20 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
-----------------------------------------------------------------------------------------------------
'15 Shares '15 Amount
(unaudited) (unaudited) '14 Shares '14 Amount
-----------------------------------------------------------------------------------------------------
Class A
Shares sold 452,432 $ 13,666,047 868,137 $ 24,367,044
Reinvestment of distributions 31,141 923,434 249,424 7,140,185
Less shares repurchased (607,500) (18,183,883) (757,730) (21,239,437)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) (123,927) $ (3,594,402) 359,831 $ 10,267,792
=====================================================================================================
Class B*
Shares sold or exchanged -- $ -- 2,048 $ 54,831
Reinvestment of distributions -- -- 426 11,665
Less shares repurchased -- -- (147,771) (4,288,435)
-----------------------------------------------------------------------------------------------------
Net decrease -- $ -- (145,297) $ (4,221,939)
=====================================================================================================
Class C
Shares sold 104,671 $ 3,133,320 148,015 $ 4,122,869
Reinvestment of distributions 2,135 62,394 28,300 798,667
Less shares repurchased (119,481) (3,507,375) (153,105) (4,257,714)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) (12,675) $ (311,661) 23,210 $ 663,822
=====================================================================================================
Class Y
Shares sold 285,804 $ 8,718,614 1,039,298 $ 28,715,376
Reinvestment of distributions 8,698 258,856 66,517 1,902,137
Less shares repurchased (583,522) (17,512,458) (851,884) (23,726,679)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) (289,020) $ (8,534,988) 253,931 $ 6,890,834
=====================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 21
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/15 Ended Ended Ended Ended Ended
(unaudited) 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
-----------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 29.58 $ 24.56 $ 24.76 $ 21.79 $ 20.41 $ 16.24
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.27 $ 0.30 $ 0.23 $ 0.45 $ 0.42 $ 0.21
Net realized and unrealized gain (loss) on investments (1.92) 6.86 0.06 2.97 1.37 4.34
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.65) $ 7.16 $ 0.29 $ 3.42 $ 1.79 $ 4.55
-----------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.27) $ (0.29) $ (0.22) $ (0.45) $ (0.41) $ (0.22)
Net realized gain -- (1.85) (0.27) -- -- --
Tax return of capital -- -- -- -- -- (0.16)
-----------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.27) $ (2.14) $ (0.49) $ (0.45) $ (0.41) $ (0.38)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.92) $ 5.02 $ (0.20) $ 2.97 $ 1.38 $ 4.17
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.66 $ 29.58 $ 24.56 $ 24.76 $ 21.79 $ 20.41
=============================================================================================================================
Total return* (5.64)% 29.63% 1.14% 15.75% 8.90% 28.25%
Ratio of net expenses to average net assets 1.38%** 1.47% 1.48% 1.52% 1.59% 1.62%
Ratio of net investment income (loss) to average net assets 1.77%** 1.09% 0.89% 1.87% 1.94% 1.17%
Portfolio turnover rate 18%** 22% 17% 8% 8% 14%
Net assets, end of period (in thousands) $96,747 $107,116 $80,091 $84,310 $75,318 $75,520
=============================================================================================================================
* 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.
22 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
---------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/15 Ended Ended Ended Ended Ended
(unaudited) 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 29.15 $ 24.24 $ 24.45 $ 21.53 $ 20.15 $ 16.06
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.14 $ 0.06 $ 0.00(a) $ 0.24 $ 0.23 $ 0.06
Net realized and unrealized gain (loss) on investments (1.89) 6.76 0.08 2.93 1.38 4.27
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.75) $ 6.82 $ 0.08 $ 3.17 $ 1.61 $ 4.33
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.14) $ (0.12) $ (0.02) $ (0.25) $ (0.23) $ (0.14)
Net realized gain -- (1.79) (0.27) -- -- --
Tax return of capital -- -- -- -- -- (0.10)
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.14) $ (1.91) $ (0.29) $ (0.25) $ (0.23) $ (0.24)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.89) $ 4.91 $ (0.21) $ 2.92 $ 1.38 $ 4.09
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.26 $ 29.15 $ 24.24 $ 24.45 $ 21.53 $ 20.15
===========================================================================================================================
Total return* (6.03)% 28.50% 0.27% 14.75% 8.07% 27.08%
Ratio of net expenses to average net assets 2.21%** 2.35% 2.32% 2.37% 2.42% 2.50%
Ratio of net investment income (loss) to average net assets 0.94%** 0.20% 0.02% 1.03% 1.09% 0.31%
Portfolio turnover rate 18%** 22% 17% 8% 8% 14%
Net assets, end of period (in thousands) $12,221 $13,435 $10,609 $12,667 $11,216 $12,082
===========================================================================================================================
* 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.
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 23
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/15 Ended Ended Ended Ended Ended
(unaudited) 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 29.54 $ 24.52 $ 24.74 $ 21.78 $ 20.39 $ 16.23
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.31 $ 0.43 $ 0.36 $ 0.56 $ 0.56 $ 0.33
Net realized and unrealized gain (loss) on investments (1.90) 6.85 0.05 2.97 1.37 4.32
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (1.59) $ 7.28 $ 0.41 $ 3.53 $ 1.93 $ 4.65
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.32) $ (0.41) $ (0.36) $ (0.57) $ (0.54) $ (0.28)
Net realized gain -- (1.85) (0.27) -- -- --
Tax return of capital -- -- -- -- -- (0.21)
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.32) $ (2.26) $ (0.63) $ (0.57) $ (0.54) $ (0.49)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.91) $ 5.02 $ (0.22) $ 2.96 $ 1.39 $ 4.16
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 27.63 $ 29.54 $ 24.52 $ 24.74 $ 21.78 $ 20.39
===========================================================================================================================
Total return* (5.45)% 30.22% 1.61% 16.28% 9.60% 28.97%
Ratio of net expenses to average net assets 1.00%** 1.03% 1.01% 1.03% 1.00% 1.00%
Ratio of net investment income (loss) to average net assets 2.09%** 1.54% 1.41% 2.48% 2.35% 1.79%
Portfolio turnover rate 18%** 22% 17% 8% 8% 14%
Net assets, end of period (in thousands) $39,269 $50,520 $35,711 $31,610 $15,811 $46,845
===========================================================================================================================
* 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 | 6/30/15
Notes to Financial Statements | 6/30/15 (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.
During the periods covered by this report, the Fund offers three classes of
shares designated as Class A, Class C and Class Y shares. The Fund ceased to
offer Class B shares on November 10, 2014. Class B shares were converted to
Class A shares as of the close of business on November 10, 2014. 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.
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:
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
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 25
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. Shares of money market mutual funds
are valued at such funds' net asset value. Cash may include overnight time
deposits at approved financial institutions.
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, 2015, 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).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence.
26 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
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.
C. 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, 2014, 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, 2014 as follows:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 1,957,547
Long-term capital gain 9,975,093
----------------------------------------------------------------------------
Total $11,932,640
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2014:
----------------------------------------------------------------------------
2014
----------------------------------------------------------------------------
Distributable Earnings:
Undistributed long-term capital gain $ 3,079,626
Net unrealized appreciation 79,185,526
----------------------------------------------------------------------------
Total $82,265,152
============================================================================
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 27
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales.
D. 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 $10,785 in underwriting commissions on the sale of Class A shares
during the six months ended June 30, 2015.
E. 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 and Class C shares of the Fund (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 C and Class Y shares can
reflect different transfer agent and distribution expense rates.
F. 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.
28 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
G. 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. At June 30, 2015, the Fund had no open
repurchase agreements.
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, 2015, 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
$13,582 in management fees, administrative costs and certain other
reimbursements payable to PIM at June 30, 2015.
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, 2015, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $49,848
Class C 7,052
Class Y 21,070
--------------------------------------------------------------------------------
Total $77,970
================================================================================
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 29
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $39,343 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at June 30, 2015.
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 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 C shares. The fee for 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 C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $4,041 in distribution fees payable to
PFD at June 30, 2015.
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. 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, 2015, CDSCs in the amount of $1,414 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, 2015, 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 may borrow up to the lesser of the amount available under the facility or
the
30 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
limits set for borrowing by the Fund's prospectus and the 1940 Act. The credit
facility is 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 0.85% (0.90% prior to 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, 2015, the Fund had no
outstanding borrowings.
7. Conversion of Class B Shares
As of the close of business on November 10, 2014, all outstanding Class B shares
of the Fund were converted to Class A shares.
Additional Information
PIM, the Fund's investment adviser, is currently an indirect, wholly-owned
subsidiary of UniCredit. On April 23, 2015, UniCredit announced that it signed a
preliminary and exclusive agreement with Banco Santander and affiliates of
Warburg Pincus and General Atlantic (the "Private Equity Firms") with respect to
Pioneer Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as described in the UniCredit announcement, will entail the
establishment of a holding company, with the name Pioneer Investments, to be
owned by UniCredit (50%) and the Private Equity Firms (50% between them). The
holding company will control Pioneer's U.S. operations, including the Adviser.
The holding company also will own 66.7% of Pioneer's and SAM's combined
operations outside the U.S., while Banco Santander will own directly the
remaining 33.3% stake. The completion of the Transaction is subject to the
signing of a definitive agreement, as well as certain regulatory and corporate
approvals, and other conditions.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's investment advisory agreement with the Adviser to terminate. In
connection with the Transaction, the Fund's Board of Trustees will be asked to
approve a new investment advisory agreement for the Fund. If approved by the
Board, the Fund's new investment advisory agreement will be submitted to the
shareholders of the Fund for their approval.
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 31
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius 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.
* Ms. Monchak is a non-voting Advisory Trustee.
32 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
This page for your notes.
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 33
This page for your notes.
34 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
This page for your notes.
Pioneer Real Estate Shares | Semiannual Report | 6/30/15 35
This page for your notes.
36 Pioneer Real Estate Shares | Semiannual Report | 6/30/15
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) 2015 Pioneer Investments 19407-10-0815
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.
N/A
(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
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date August 28, 2015
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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date August 28, 2015
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date August 28, 2015
* Print the name and title of each signing officer under his or her signature.