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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 811-0000869356
Pioneer Equity Income Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Joseph P. Barri, Hale and Dorr LLP, 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: April 30
Date of reporting period: November 1, 2002 through April 30, 2003
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.
PIONEER
-----------------------
EQUITY
INCOME
FUND
Semiannual
Report
4/30/03
[LOGO]
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 8
Schedule of Investments 11
Financial Statements 18
Notes to Financial Statements 27
Trustees, Officers and Service Providers 33
Programs and Services for Pioneer Shareowners 34
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 4/30/03
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
World events drove markets early this year. Uncertainty over war in Iraq
brought steep declines in equities and a continued flight to bonds, especially
government issues. Stocks rallied when the war began, sagged for a time, then
rose modestly as the successful military campaign wound down.
Investors soon turned their attention to domestic concerns, not all of them
tied to the war: sagging consumer confidence, rising unemployment made worse by
call-ups of reservists and the uncertain outlook for corporate earnings. In
addition, a long, harsh winter hampered economic activity, as did the high
prices Americans were paying to power their cars, homes and businesses.
The Federal Reserve Board appears committed to keeping interest rates low to
prevent the economy from slumping further. A weaker U.S. dollar may also act as
a stimulus, as American export goods become more affordable for overseas
buyers.
Independent research remains the key
Pioneer is not in the business of forecasting economic trends or predicting
geopolitical events. Our focus remains, as it has for over 75 years, on
intensive analysis of hundreds of companies to find the best values for our
shareowners; this slow economic period has brought many valuations to what we
believe are attractive levels. Our managers and analysts are concentrating on
companies with demonstrably strong finances and positive prospects. Financially
strong companies have greater potential to prosper when the economy eventually
rights itself. Pioneer's fixed-income experts are also finding bonds, both here
and overseas, that offer good current yields and the potential for higher
prices.
Consult a trusted advisor
It's tempting to change course in turbulent times while world news dominates
our consciousness. But timing the market - moving in and out with short-term
factors - can be costly in terms of lost opportunities; there's no predicting
when a rebound might begin. You can temper that risk by relying on
dispassionate professional advice. So invest the time it takes to meet with a
trusted financial advisor who brings the dual advantages of knowledge and
experience to the table.
All of us at Pioneer thank you for your continued business.
Respectfully,
/s/ John A. Carey
John A. Carey
Executive Vice President
Director of Portfolio Management U.S.
1
Pioneer Equity Income Fund
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PORTFOLIO SUMMARY 4/30/03
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 93.2%
U.S. Convertible Securities 3.7%
Temporary Cash Investments 3.1%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 23.3%
Utilities 15.0%
Industrials 13.2%
Consumer Discretionary 11.7%
Energy 11.6%
Health Care 7.7%
Consumer Staples 5.8%
Telecommunication Services 5.7%
Materials 4.4%
Information Technology 1.6%
10 Largest Holdings
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(As a percentage of total investment in securities)
1. PACCAR, Inc. 4.45% 6. Charter One Financial Inc. 2.85%
2. ChevronTexaco Corp. 4.17 7. SBC Communications, Inc. 2.66
3. ConocoPhillips 3.78 8. KeySpan Energy Corp. 2.52
4. Exxon Mobil Corp. 3.65 9. Abbott Laboratories 2.37
5. Constellation Energy Group 3.05 10. Cedar Fair, L.P. 2.26
Top 10 holdings exclude money market instruments. Fund holdings will vary
for other periods.
2
Pioneer Equity Income Fund
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PERFORMANCE UPDATE 4/30/03 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/03 10/31/02
$20.83 $20.80
Distributions per Share Income Short-Term Long-Term
(11/01/02 - 4/30/03) Dividends Capital Gains Capital Gains
$0.2529 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2003)
Net Asset Public Offering
Period Value Price*
10 Years 8.14% 7.50%
5 Years -0.84 -2.01
1 Year -16.69 -21.47
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
Value of $10,000 Investment
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
Equity Russell
Income 1000 Value
Fund* Index
4/93 $9,425 $10,000
$10,070 $10,933
10/94 $10,079 $11,015
$12,046 $13,737
10/96 $13,916 $16,997
$18,146 $22,638
10/98 $21,538 $25,996
$23,963 $30,294
10/00 $25,617 $31,966
$23,258 $28,173
10/02 $20,323 $25,350
4/03 $20,606 $26,679
The Russell 1000 Value Index is a measure of the performance of the
value-oriented stocks in the Russell 1000 Index. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in any Index.
Past performance does not guarantee future results. Returns and principal
values fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on fund distributions or the redemption of fund shares.
3
Pioneer Equity Income Fund
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PERFORMANCE UPDATE 4/30/03 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/03 10/31/02
$20.70 $20.67
Distributions per Share Income Short-Term Long-Term
(11/01/02 - 4/30/03) Dividends Capital Gains Capital Gains
$0.1685 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2003)
If If
Period Held Redeemed*
Life-of-Class
(4/4/94) 8.11% 8.11%
5 Years -1.62 -1.78
1 Year -17.35 -20.60
* Reflects deduction of the maximum applicable contingent deferred sales charge
(CDSC) at the end of the period and assumes reinvestment of distributions. The
maximum CDSC of 4% declines over six years.
Value of $10,000 Investment+
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
Equity Russell
Income 1000 Value
Fund* Index
4/94 $10,000 $10,000
$10,242 $10,268
10/95 $12,151 $12,805
$13,938 $15,844
10/97 $18,028 $21,101
$21,243 $24,232
10/99 $23,459 $28,238
$24,875 $29,796
10/01 $22,413 $26,261
$19,424 $23,630
4/03 $19,614 $24,870
+ Index comparison begins on 4/30/94. The Russell 1000 Value Index is a measure
of the performance of the value-oriented stocks in the Russell 1000 Index.
Index returns assume reinvestment of dividends and, unlike Fund returns, do
not reflect any fees, expenses or sales charges. You cannot invest directly
in any Index.
Past performance does not guarantee future results. Returns and principal
values fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on fund distributions or the redemption of fund shares.
4
Pioneer Equity Income Fund
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PERFORMANCE UPDATE 4/30/03 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/03 10/31/02
$20.66 $20.63
Distributions per Share Income Short-Term Long-Term
(11/01/02 - 4/30/03) Dividends Capital Gains Capital Gains
$0.1676 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2003)
Net Asset Public Offering
Period Value Price/CDSC*
Life-of-Class
(1/31/96) 5.53% 5.38%
5 Years -1.68 -1.87
1 Year -17.35 -18.20
* Reflects deduction of the 1% sales charge at the beginning of the period and
assumes reinvestment of distribu- tions. The 1% contingent deferred sales
charge (CDSC) applies to investments sold within one year of purchase.
Value of $10,000 Investment
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
Equity Russell
Income 1000 Value
Fund* Index
1/96 $9,900 $10,000
$10,427 $11,142
10/97 $13,484 $14,839
$15,884 $17,040
10/99 $17,529 $19,857
$18,571 $20,953
10/01 $16,711 $18,467
$14,477 $16,617
4/03 $14,619 $17,487
The Russell 1000 Value Index is a measure of the performance of the
value-oriented stocks in the Russell 1000 Index. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in any Index.
Past performance does not guarantee future results. Returns and principal
values fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on fund distributions or the redemption of fund shares.
5
Pioneer Equity Income Fund
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PERFORMANCE UPDATE 4/30/03 CLASS R SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/03 4/01/03
$20.95 $19.97
Distributions per Share Income Short-Term Long-Term
(4/01/03 - 4/30/03) Dividends Capital Gains Capital Gains
$ - $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2003)
If If
Period Held Redeemed*
10 Years** 7.70% 7.70%
5 Years -1.26 -1.26
1 Year -16.8 -17.63
* Reflects deduction of a 1% CDSC. Shares sold within 18 months of purchase
may be subject to the CDSC.
Value of $10,000 Investment
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
Equity Russell
Income 1000 Value
Fund* Index
4/93 $10,000 $10,000
$10,691 $10,933
10/94 $10,691 $11,015
$12,655 $13,737
10/96 $14,609 $16,997
$18,918 $22,638
10/98 $22,365 $25,996
$24,780 $30,294
10/00 $26,323 $31,966
$23,818 $28,173
10/02 $20,711 $25,350
4/03 $20,992 $26,679
** Class R shares have no front-end load, may be subject to a back-end load and
are available to certain retirement plans. The performance of Class R shares
for the period prior to the commencement of operations of Class R shares on
April 1, 2003 is based on the performance of Class A shares, reduced to
reflect the higher distribution and service fees of Class R shares. You do
not pay a sales charge on purchases of Class R shares, but will pay a CDSC if
you sell your shares within 18 months of purchase, unless you qualify for a
waiver.
The Russell 1000 Value Index is a measure of the performance of the
value-oriented stocks in the Russell 1000 Index. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in any Index.
Past performance does not guarantee future results. Returns and principal
values fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on fund distributions or the redemption of fund shares.
6
Pioneer Equity Income Fund
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PERFORMANCE UPDATE 4/30/03 CLASS Y SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/03 10/31/02
$20.89 $20.85
Distributions per Share Income Short-Term Long-Term
(11/01/02 - 4/30/03) Dividends Capital Gains Capital Gains
$0.2968 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of April 30, 2003)
If If
Period Held Redeemed*
Life-of-Class
(7/2/98) -0.87% -0.87%
1 Year -16.25 -16.25
* Assumes reinvestment of distributions.
Value of $10,000 Investment+
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
Equity Russell
Income 1000 Value
Fund* Index
7/98 $10,000 $10,000
$10,167 $9,698
10/99 $11,354 $11,301
$12,187 $11,925
10/01 $11,103 $10,510
$9,744 $9,457
4/03 $9,906 $9,953
+ Index comparison begins 7/31/98. The Russell 1000 Value Index is a measure of
the performance of the value-oriented stocks in the Russell 1000 Index.
Index returns assume reinvestment of dividends and, unlike Fund returns, do
not reflect any fees, expenses or sales charges. You cannot invest directly
in any Index.
Past performance does not guarantee future results. Returns and principal
values fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on fund distributions or the redemption of fund shares.
7
Pioneer Equity Income Fund
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PORTFOLIO MANAGEMENT DISCUSSION 4/30/03
- --------------------------------------------------------------------------------
In the following discussion, portfolio manager John Carey reviews the six
months ended April 30, 2003 and the performance of Pioneer Equity Income Fund.
Q: Please discuss investment results for Pioneer Equity Income Fund over the
six months ended April 30, 2003.
A: The six months ended April 30, 2003, saw improvement in the stock market
versus the previous two years. Instead of the losses we reported to you
for our fiscal years concluded October 31, 2002, and October 31, 2001, we
can report modest gains for the first half of the Fund's October 31, 2003,
fiscal year. Class A shares of Pioneer Equity Income Fund showed a
positive return of 1.39% at net asset value, for the semiannual period
ended April 30, 2003. The Russell 1000 Value Index moved ahead by 5.25%
over the same half year. The average fund in the Lipper Analytical
Services Equity Income category increased in value by 4.06% over the
period. We are hopeful that those results indicate the end of the long
bear market, though of course there can be no assurance of that.
Nevertheless, we are pleased to be able to show gains instead of losses on
our portfolio investments.
Q: To what do you attribute the performance of the Fund when compared with its
benchmark index, the Russell 1000 Value Index?
A: The biggest contributor to our underperformance versus the Index had to do
with our continued underweighting versus the Index in financials and also
with our stock selection in that group. We have been cautious for some
time on financial stocks and during the six months had an average
weighting in the group of 21% versus an average Index weighting of 34%.
The performance of the group, in the declining interest-rate environment
of the period, was relatively strong versus the Index, and in addition
some of the larger financial institutions, such as J P. Morgan Chase and
Citigroup, where we were not invested, did better than average within the
group.
Another contributor to our weaker-than-Index-average results was our stock
selection in utilities, where we were overweighted versus the Index
(average Fund weighting of 16% versus 6% average weighting during the
period for the Index). Here we had very good performance from
Constellation Energy, Great Plains Energy and Questar,
8
Pioneer Equity Income Fund
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- --------------------------------------------------------------------------------
but disappointing results from Duke Energy and KeySpan. We were also not
invested in some of the highly-speculative names in the sector, such as
Dynegy, Edison International and Reliant Resources, that also did well,
stock-price-wise, over the six months.
Q: What changes did you make to the portfolio during the period?
A: It was an active period for the portfolio, with seven new entries and
eleven deletions. In consumer staples, we purchased shares of Coca Cola;
among financials, we added Charter One Financial and Simon Property Group;
in information technology, we returned to IBM, a stock we had previously
owned; and in utilities we bought Consolidated Edison, FPL Group and
Southern. Liquidations over the six months included 3M, Ford and General
Motors; Schering Plough and Bristol-Myers Squibb; Fifth Third Bancorp and
Mellon Financial; and DPL, Duke Energy, Nicor and American Water Works.
The last stock we sold, at a profit, under the terms of a cash acquisition
offer from another company.
We examine the portfolio frequently and regularly make changes when we see
opportunities that appear more promising than current positions. We look
at companies from a long-term perspective (three to five years), but our
holding periods for individual securities will vary according to the
business and earnings outlooks we see for companies. Of course dividend
income is a prime goal of ours, and we are always assessing the continued
prospects for dividend payments at attractive levels by companies in the
portfolio.
Q: What advice would you offer to shareowners who have endured the difficult
markets of the past several years, and what is your outlook for the rest
of this year?
A: Analysts will date the recent bear market variously, but we would suggest
that it began in March of 2000 and extended at least through last fall.
Certainly the dreadful events of September 11, 2001, played a role in the
extension of the gloomy market, and we would also cite the corporate
accounting scandals and the tensions revolving around Iraq prior to the
actual war as issues for the market. But the root causes of market
weakness were, as always, we think, a downturn in corporate profits and a
sluggish economic situation. While more prolonged, perhaps, than some
other stock-market difficulties, the travails facing us as investors
9
Pioneer Equity Income Fund
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PORTFOLIO MANAGEMENT DISCUSSION 4/30/03 (continued)
- --------------------------------------------------------------------------------
over the past few years were far from unprecedented. Likewise we are
hopeful that the kind of recovery the market has customarily staged after
such a decline will also be the story this time. But no one can be sure,
and there can never be any guarantee that events will follow their
"normal" course.
What we would suggest is looking at the individual companies whose
securities we have purchased for your portfolio and thinking about the
long-term values of the goods and services the companies produce. Think
about the likely growth in demand for those goods and services. Then, at
least, you can probably develop confidence that the companies are unlikely
to "disappear" and take all of your money with them. You can perhaps also
see the potential for continued dividend payments from the companies and
then, maybe, the possibility for share-price appreciation over longer
periods of time. That is, in any case, how we look at the portfolio, and
it is that perspective that gives us the courage to retain our investments
through thick and thin. Thank you for your continued interest in Pioneer
Equity Income Fund.
10
Pioneer Equity Income Fund
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SCHEDULE OF INVESTMENTS 4/30/03 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
CONVERTIBLE PREFERRED STOCKS - 3.2%
Commercial Services & Supplies - 1.0%
Data Processing Services - 1.0%
320,000 Electronic Data Corp., 7.625%, 8/17/04 $ 6,320,000
------------
Total Commercial Services & Supplies $ 6,320,000
------------
Transportation - 1.7%
Railroads - 1.7%
207,700 Union Pacific Capital Trust, 6.25%, 4/1/28 (144A) $ 10,514,813
------------
Total Transportation $ 10,514,813
------------
Automobiles & Components - 0.5%
Automobile Manufacturers - 0.5%
75,000 Ford Capital Trust, 6.5%, 1/15/32 $ 3,288,750
10,000 General Motors Corp. Series B, 5.25%, 3/6/32 238,750
------------
$ 3,527,500
------------
Total Automobiles & Components $ 3,527,500
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $28,565,158) $ 20,362,313
------------
Principal
Amount CONVERTIBLE CORPORATE BONDS - 0.5%
Retailing - 0.2%
Department Stores - 0.2%
$ 800,000 Gap, Inc., 5.75%, 3/15/09 $ 1,048,000
------------
Total Retailing $ 1,048,000
------------
Technology Hardware & Development - 0.3%
Computer Hardware - 0.3%
1,920,000 Veeco Instruments, 4.125%, 12/21/08 $ 1,704,000
------------
Total Technology Hardware & Equipment $ 1,704,000
------------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $2,788,626) $ 2,752,000
------------
Shares
COMMON STOCKS - 93.2%
Energy - 11.2%
Integrated Oil & Gas - 11.2%
405,700 ChevronTexaco Corp. $ 25,482,017
458,780 CononcoPhillips 23,076,634
633,878 Exxon Mobil Corp. 22,312,506
------------
$ 70,871,157
------------
Total Energy $ 70,871,157
------------
The accompanying notes are an integral part of these financial statements.
11
Pioneer Equity Income Fund
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SCHEDULE OF INVESTMENTS 4/30/03 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Materials - 4.4%
Commodity Chemicals - 2.6%
200,000 Air Products & Chemicals, Inc. $ 8,614,000
100,000 Dow Chemical Co. 3,264,000
105,232 E.I. du Pont de Nemours and Co. 4,475,517
------------
$ 16,353,517
------------
Diversified Chemicals - 0.8%
100,000 PPG Industries, Inc. $ 4,851,000
------------
Paper Products - 0.4%
100,000 Meadwestvaco Corp. $ 2,359,000
------------
Steel - 0.6%
513,705 Roanoke Electric Steel Corp. $ 3,554,839
------------
Total Materials $ 27,118,356
------------
Capital Goods - 8.4%
Aerospace & Defense - 2.2%
125,000 Boeing Co. $ 3,410,000
168,700 General Dynamics Corp. 10,471,209
------------
$ 13,881,209
------------
Electrical Component & Equipment - 1.4%
175,000 Emerson Electric Co. $ 8,872,500
------------
Industrial Conglomerates - 2.8%
40,000 Illinois Tool Works, Inc. $ 2,559,200
117,800 Johnson Controls, Inc. 9,687,872
85,000 United Technologies Corp. 5,253,850
------------
$ 17,500,922
------------
Industrial Machinery - 2.0%
505,957 Gorman-Rupp Co.+ $ 10,119,140
150,000 The Timken Co. 2,655,000
------------
$ 12,774,140
------------
Total Capital Goods $ 53,028,771
------------
Transportation - 1.7%
Railroads - 1.7%
105,000 Burlington Northern, Inc. $ 2,956,800
143,600 Norfolk Southern Corp. 3,045,756
220,500 Philadelphia Suburban Corp. 4,994,325
------------
$ 10,996,881
------------
Total Transportation $ 10,996,881
------------
The accompanying notes are an integral part of these financial statements.
12
Pioneer Equity Income Fund
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- --------------------------------------------------------------------------------
Shares Value
Automobiles & Components - 4.3%
Automobile Manufacturers - 4.3%
465,750 PACCAR, Inc. $ 27,162,540
------------
Total Automobiles & Components $ 27,162,540
------------
Consumer Durables & Apparel - 0.5%
Photographic Products - 0.5%
112,000 Eastman Kodak Co. $ 3,349,920
------------
Total Consumer Durables & Apparel $ 3,349,920
------------
Media - 4.6%
Movies & Entertainment - 2.2%
531,200 Cedar Fair, L.P. $ 13,800,576
------------
Publishing - 2.4%
160,000 McGraw-Hill Co., Inc. $ 9,342,400
120,000 Tribune Co. 5,877,600
------------
$ 15,220,000
------------
Total Media $ 29,020,576
------------
Retailing - 1.1%
Department Stores - 0.5%
141,000 May Department Stores Co. $ 3,048,420
------------
General Merchandise Stores - 0.6%
140,000 Sears, Roebuck and Co. $ 3,967,600
------------
Total Retailing $ 7,016,020
------------
Food, Beverage & Tobacco - 5.0%
Packaged Foods & Meats - 3.1%
130,000 Campbell Soup Co. $ 2,863,900
86,000 General Mills, Inc. 3,879,460
216,250 H.J. Heinz Co., Inc. 6,461,550
384,000 Sara Lee Corp. 6,443,520
------------
$ 19,648,430
------------
Soft Drinks - 1.9%
50,000 The Coca-Cola Co. $ 2,020,000
236,300 PepsiCo, Inc. 10,227,064
------------
$ 12,247,064
------------
Total Food, Beverage & Tobacco $ 31,895,494
------------
The accompanying notes are an integral part of these financial statements.
13
Pioneer Equity Income Fund
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SCHEDULE OF INVESTMENTS 4/30/03 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Household & Personal Products - 0.6%
Household Products - 0.6%
66,000 Colgate-Palmolive Co. $ 3,773,220
------------
Total Household & Personal Products $ 3,773,220
------------
Health Care Equipment & Services - 4.7%
Health Care Distributors & Services - 4.2%
356,600 Abbott Laboratories $ 14,488,658
210,000 Johnson & Johnson Co. 11,835,600
------------
$ 26,324,258
------------
Health Care Equipment - 0.5%
88,000 Becton, Dickinson & Co. $ 3,115,200
------------
Total Health Care Equipment & Services $ 29,439,458
------------
Pharmaceuticals & Biotechnology - 2.8%
Pharmaceuticals - 2.8%
100,000 Eli Lilly & Co. $ 6,382,000
190,400 Merck & Co., Inc. 11,077,472
------------
$ 17,459,472
------------
Total Pharmaceuticals & Biotechnology $ 17,459,472
------------
Banks - 11.5%
600,000 Charter One Financial, Inc. $ 17,430,000
250,000 First Tennessee National Corp. 10,950,000
264,000 National City Corp. 7,909,440
329,400 SouthTrust Corp. 8,880,624
225,000 SunTrust Banks, Inc. 12,874,500
215,662 Wells Fargo & Co. 10,407,848
100,000 Washington Mutual, Inc. 3,950,000
------------
$ 72,402,412
------------
Total Banks $ 72,402,412
------------
Diversified Financials - 5.8%
Diversified Financial Services - 5.8%
232,600 Alliance Capital Management L.P. $ 7,415,288
175,000 A.G. Edwards, Inc. 5,220,250
208,000 Eaton Vance Corp. 6,198,400
130,000 Merrill Lynch & Co., Inc. 5,336,500
402,000 T. Rowe Price Associates, Inc. 12,269,040
------------
$ 36,439,478
------------
Total Diversified Financials $ 36,439,478
------------
The accompanying notes are an integral part of these financial statements.
14
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Insurance - 3.4%
Property & Casualty Insurance - 3.4%
205,100 Chubb Corp. $ 10,847,739
80,000 Safeco Corp. 3,077,600
227,800 St. Paul Companies, Inc. 7,822,652
------------
$ 21,747,991
------------
Total Insurance $ 21,747,991
------------
Real Estate - 1.9%
Real Estate Investment Trusts - 1.9%
250,000 Equity Office Properties Trust $ 6,492,500
144,000 Simon Property Group, Inc. 5,287,680
------------
$ 11,780,180
------------
Total Real Estate $ 11,780,180
------------
Technology Hardware & Equipment - 1.3%
Computer Hardware - 1.3%
177,550 Diebold, Inc. $ 7,098,449
10,000 IBM Corp. 849,000
------------
$ 7,947,449
------------
Total Technology Hardware & Equipment $ 7,947,449
------------
Telecommunication Services - 5.5%
Integrated Telecommunication Services - 5.5%
184,585 Alltel Corp. $ 8,649,653
396,400 BellSouth Corp. 10,104,236
694,669 SBC Communications, Inc. 16,227,468
------------
$ 34,981,357
------------
Total Telecommunication Services $ 34,981,357
------------
Utilities - 14.5%
Electric Utilities - 8.8%
235,400 American Electric Power Co., Inc. $ 6,209,852
636,500 Constellation Energy Group 18,636,720
60,000 Consolidated Edison, Inc. 2,332,200
120,000 FPL Group, Inc. 7,304,400
384,400 Great Plains Energy, Inc. 10,059,748
190,000 NSTAR 8,208,000
90,000 Southern Co. 2,618,100
------------
$ 55,369,020
------------
The accompanying notes are an integral part of these financial statements.
15
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/03 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Gas Utilities - 5.4%
454,700 KeySpan Energy Corp. $ 15,400,689
446,600 Questar Corp. 13,487,320
237,933 Vectren Corp. 5,531,941
------------
$ 34,419,950
------------
Multi-Utilities & Unregulated Power - 0.3%
100,000 Consol Energy Inc. $ 1,720,000
------------
Total Utilities $ 91,508,970
------------
TOTAL COMMON STOCKS
(Cost $507,067,162) $587,939,702
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $538,420,946) $611,054,015
------------
Principal
Amount
TEMPORARY CASH INVESTMENTS - 3.1%
Repurchase Agreement - 2.5%
$16,000,000 Credit Suisse First Boston Group Inc.,
1.23% dated 4/30/03, repurchase price of
$16,000,000 plus accrued interest on 5/1/03
collateralized by $13,936,000 U.S. Treasury
Bonds, 12.375%, 5/15/04
Total Repurchase Agreement $ 16,000,000
------------
Security Lending Collateral - 0.6%
3,992,300 Securities Lending Investment Fund, 1.25% $ 3,992,300
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $19,992,300) $ 19,992,300
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENTS - 100.0%
(Cost $558,413,246)(a)(b) $631,046,315
============
+ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company.
144A Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At April
30, 2003, the value of these securities amounted to $10,514,813 or 1.7%
of total net assets.
The accompanying notes are an integral part of these financial statements.
16
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(a) At April 30, 2003, the net unrealized gain on investments based on cost for federal income tax
purposes of $554,039,418 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $115,698,761
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (38,691,864)
------------
Net unrealized gain $ 77,006,897
============
(b) As of October 31, 2003, the Fund had a capital loss carryforward of $30,816,289, which will
expire between 2009 and 2010 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2003 aggregated $59,188,127 and $71,678,123,
respectively.
The accompanying notes are an integral part of these financial statements.
17
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 4/30/03 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (including securities
loaned of $3,789,291) (cost $558,413,246) $631,046,315
Cash 6,545
Receivables -
Fund shares sold 505,305
Dividends and interest 1,759,510
Other 5,858
-------------
Total assets $633,323,533
-------------
LIABILITIES:
Payables -
Fund shares repurchased $ 584,380
Upon return of securities loaned 3,992,300
Dividends 380
Due to affiliates 754,802
Accrued expenses 149,122
-------------
Total liabilities $ 5,480,984
-------------
NET ASSETS:
Paid-in capital $572,574,160
Accumulated undistributed net investment income 4,718,403
Accumulated net realized loss on investments (22,083,083)
Net unrealized gain on investments 72,633,069
-------------
Total net assets $627,842,549
=============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $419,942,833/20,156,521 shares) $ 20.83
=============
Class B (based on $155,869,977/7,528,808 shares) $ 20.70
=============
Class C (based on $48,743,129/2,358,895 shares) $ 20.66
=============
Class R (based on $524.60/25.038 shares) $ 20.95
=============
Class Y (based on $3,286,085/157,290 shares) $ 20.89
=============
MAXIMUM OFFERING PRICE:
Class A (20.83 [divided by] 94.25%) $ 22.10
=============
Class C (20.66 [divided by] 99.00%) $ 20.87
=============
The accompanying notes are an integral part of these financial statements.
18
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/03
INVESTMENT INCOME:
Dividends $11,056,441
Interest 106,850
Income from securities loaned, net 6,457
-----------
Total investment income $ 11,169,748
------------
EXPENSES:
Management fees $ 1,846,748
Transfer agent fees
Class A 443,963
Class B 262,464
Class C 72,235
Class Y 91
Distribution fees
Class A 503,627
Class B 822,568
Class C 225,885
Administrative fees 75,163
Custodian fees 18,841
Professional fees 49,642
Printing 54,447
Fees and expenses of nonaffiliated trustees 11,419
Miscellaneous 110,156
-----------
Total expenses $ 4,497,249
Less fees paid indirectly (1,764)
------------
Net expenses $ 4,495,485
------------
Net investment income $ 6,674,263
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 8,733,206
Change in net unrealized gain on investments (8,328,999)
------------
Net gain on investments $ 404,207
------------
Net increase in net assets resulting from operations $ 7,078,470
============
The accompanying notes are an integral part of these financial statements.
19
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/03 and the Year Ended 10/31/02
Six Months
Ended
4/30/03 Year Ended
(unaudited) 10/31/02
FROM OPERATIONS:
Net investment income $ 6,674,263 $ 12,986,247
Net realized gain (loss) on investments 8,733,206 (27,478,600)
Change in net unrealized gain (loss) on investments (8,328,999) (82,468,029)
------------ -------------
Net increase (decrease) in net assets resulting
from operations $ 7,078,470 $ (96,960,382)
------------ -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.25 and $0.47 per share, respectively) $ (4,984,048) $ (9,114,012)
Class B ($0.17 and $0.28 per share, respectively) (1,375,607) (2,591,744)
Class C ($0.17 and $0.26 per share, respectively) (372,954) (503,337)
Class Y ($0.30 and $0.57 per share, respectively) (43,364) (75,252)
------------ -------------
Total distributions to shareowners $ (6,775,973) $ (12,284,345)
------------ -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 83,906,337 $ 208,557,650
Reinvestment of distributions 5,856,866 10,864,882
Cost of shares repurchased (91,855,138) (215,753,482)
------------ -------------
Net increase in net assets resulting from fund
share transactions $ (2,091,935) $ 3,669,050
------------ -------------
Net decrease in net assets $ (1,789,438) $(105,575,677)
NET ASSETS:
Beginning of period 629,631,987 735,207,664
------------ -------------
End of period (including accumulated undistributed
net investment income of $4,718,403 and
$4,820,113 respectively) $627,842,549 $ 629,631,987
============ =============
The accompanying notes are an integral part of these financial statements.
20
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/03 and the Year Ended 10/31/02
'03 Shares '03 Amount
(unaudited) (unaudited) '02 Shares '02 Amount
CLASS A
Shares sold 2,805,290 $ 57,270,070 5,708,126 $ 130,863,594
Reinvestment of distributions 217,288 4,424,746 347,502 8,241,398
Less shares repurchased (2,558,548) (51,730,803) (5,503,526) (125,827,342)
---------- ------------- ---------- --------------
Net increase 464,030 $ 9,964,013 552,102 $ 13,277,650
========== ============= ========== ==============
CLASS B
Shares sold 617,341 $ 12,690,234 1,969,643 $ 47,081,790
Reinvestment of distributions 57,696 1,170,049 95,763 2,235,448
Less shares repurchased (1,579,652) (32,199,412) (3,172,131) (72,995,261)
---------- ------------- ---------- --------------
Net decrease (904,615) $ (18,339,129) (1,106,725) $ (23,678,023)
========== ============= ========== ==============
CLASS C
Shares sold 646,041 $ 13,230,383 1,195,560 $ 28,626,097
Reinvestment of distributions 11,736 237,113 14,689 340,558
Less shares repurchased (378,681) (7,619,240) (692,700) (15,858,539)
---------- ------------- ---------- --------------
Net increase 279,096 $ 5,848,256 517,549 $ 13,108,116
========== ============= ========== ==============
CLASS R (a)
Shares sold 25 $ 500
Reinvestment of distributions - -
Less shares repurchased - -
---------- -------------
Net increase 25 $ 500
========== =============
CLASS Y
Shares sold 34,985 $ 715,150 80,909 $ 1,986,169
Reinvestment of distributions 1,224 24,958 1,996 47,478
Less shares repurchased (15,253) (305,683) (50,554) (1,072,340)
---------- ------------- ---------- --------------
Net increase 20,956 $ 434,425 32,351 $ 961,307
========== ============= ========== ==============
(a) Class R shares were first publicly offered on April 1, 2003
The accompanying notes are an integral part of these financial statements.
21
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/03 Year Ended
CLASS A (unaudited) 10/31/02
Net asset value, beginning of period $ 20.80 $ 24.28
------- --------
Net increase (decrease) from investment operations:
Net investment income $ 0.25 $ 0.49
Net realized and unrealized gain (loss) on
investments 0.03 (3.50)
------- --------
Net increase (decrease) from investment
operations $ 0.28 $ (3.01)
Distributions to shareowners:
Net investment income (0.25) (0.47)
Net realized gain - -
Tax return of capital - -
------- --------
Net increase (decrease) in net asset value $ 0.03 $ (3.48)
------- --------
Net asset value, end of period $ 20.83 $ 20.80
======= ========
Total return* 1.39% (12.62)%
Ratio of net expenses to average net assets+ 1.17%** 1.11%
Ratio of net investment income to average net
assets+ 2.45%** 2.06%
Portfolio turnover rate 20%** 10%
Net assets, end of period (in thousands) $419,943 $409,553
Ratios with reduction for fees paid indirectly:
Net expenses 1.17%** 1.10%
Net investment income 2.45%** 2.07%
Year Ended Year Ended Year Ended Year Ended
CLASS A 10/31/01 10/31/00 10/31/99 10/31/98
Net asset value, beginning of period $ 29.55 $ 29.97 $ 28.10 $ 24.78
------- -------- -------- --------
Net increase (decrease) from investment operations:
Net investment income $ 0.47 $ 0.58 $ 0.48 $ 0.49
Net realized and unrealized gain (loss) on
investments (2.97) 1.28 2.62 4.04
------- -------- -------- --------
Net increase (decrease) from investment
operations $ (2.50) $ 1.86 $ 3.10 $ 4.53
Distributions to shareowners:
Net investment income (0.45) (0.52) (0.47) (0.48)
Net realized gain (2.29) (1.76) (0.76) (0.73)
Tax return of capital (0.03) - - -
------- -------- -------- --------
Net increase (decrease) in net asset value $ (5.27) $ (0.42) $ 1.87 $ 3.32
------- -------- -------- --------
Net asset value, end of period $ 24.28 $ 29.55 $ 29.97 $ 28.10
======= ======== ======== ========
Total return* (9.21)% 6.90% 11.26% 18.69%
Ratio of net expenses to average net assets+ 1.08% 1.11% 1.09% 1.05%
Ratio of net investment income to average net
assets+ 1.77% 1.95% 1.62% 1.82%
Portfolio turnover rate 15% 14% 23% 12%
Net assets, end of period (in thousands) $464,792 $539,602 $661,598 $584,389
Ratios with reduction for fees paid indirectly:
Net expenses 1.06% 1.08% 1.07% 1.04%
Net investment income 1.79% 1.98% 1.64% 1.83%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
+ Ratios with no reduction for fees paid indirectly.
** Annualized
The accompanying notes are an integral part of these financial statements.
22
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/03 Year Ended
CLASS B (unaudited) 10/31/02
Net asset value, beginning of period $ 20.67 $ 24.14
------- --------
Net increase (decrease) from investment operations:
Net investment income $ 0.18 $ 0.31
Net realized and unrealized gain (loss) on
investments 0.02 (3.50)
------- --------
Net increase (decrease) from investment
operations $ 0.20 $ (3.19)
Distributions to shareowners:
Net investment income (0.17) (0.28)
Net realized gain - -
Tax return of capital - -
------- --------
Net increase (decrease) in net asset value $ 0.03 $ (3.47)
------- --------
Net asset value, end of period $ 20.70 $ 20.67
======= ========
Total return* 0.98% (13.34)%
Ratio of net expenses to average net assets+ 2.02%** 1.91%
Ratio of net investment income to average net
assets+ 1.61%** 1.25%
Portfolio turnover rate 20%** 10%
Net assets, end of period (in thousands) $155,870 $174,334
Ratios with reduction for fees paid indirectly:
Net expenses 2.02%** 1.90%
Net investment income 1.61%** 1.26%
Year Ended Year Ended Year Ended Year Ended
CLASS B 10/31/01 10/31/00 10/31/99 10/31/98
Net asset value, beginning of period $ 29.37 $ 29.78 $ 27.91 $ 24.63
------- -------- -------- --------
Net increase (decrease) from investment operations:
Net investment income $ 0.25 $ 0.35 $ 0.25 $ 0.29
Net realized and unrealized gain (loss) on
investments (2.93) 1.28 2.61 4.01
------- -------- -------- --------
Net increase (decrease) from investment
operations $ (2.68) $ 1.63 $ 2.86 $ 4.30
Distributions to shareowners:
Net investment income (0.23) (0.28) (0.23) (0.29)
Net realized gain (2.29) (1.76) (0.76) (0.73)
Tax return of capital (0.03) - - -
------- -------- -------- --------
Net increase (decrease) in net asset value $ (5.23) $ (0.41) $ 1.87 $ 3.28
------- -------- -------- --------
Net asset value, end of period $ 24.14 $ 29.37 $ 29.78 $ 27.91
======= ======== ======== ========
Total return* (9.90)% 6.04% 10.43% 17.83%
Ratio of net expenses to average net assets+ 1.87% 1.91% 1.87% 1.82%
Ratio of net investment income to average net
assets+ 0.98% 1.15% 0.84% 1.05%
Portfolio turnover rate 15% 14% 23% 12%
Net assets, end of period (in thousands) $230,268 $257,999 $328,360 $281,469
Ratios with reduction for fees paid indirectly:
Net expenses 1.85% 1.89% 1.85% 1.81%
Net investment income 1.00% 1.17% 0.86% 1.06%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
** Annualized
The accompanying notes are an integral part of these financial statements.
23
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/03 Year Ended
CLASS C (unaudited) 10/31/02
Net asset value, beginning of period $ 20.63 $ 24.08
------- ---------
Net increase (decrease) from investment operations:
Net investment income $ 0.14 $ 0.26
Net realized and unrealized gain (loss) on
investments 0.06 (3.45)
------- ---------
Net increase (decrease) from investment
operations $ 0.20 $ (3.19)
Distributions to shareowners:
Net investment income (0.17) (0.26)
Net realized gain - -
Tax return of capital - -
------- ---------
Net increase (decrease) in net asset value $ 0.03 $ (3.45)
------- ---------
Net asset value, end of period $ 20.66 $ 20.63
======= =========
Total return* 0.98% (13.37)%
Ratio of net expenses to average net assets+ 2.02%** 1.99%
Ratio of net investment income to average net
assets+ 1.59%** 1.19%
Portfolio turnover rate 20%** 10%
Net assets, end of period (in thousands) $48,743 $ 42,903
Ratios with reduction for fees paid indirectly:
Net expenses 2.02%** 1.98%
Net investment income 1.59%** 1.20%
Year Ended Year Ended Year Ended Year Ended
CLASS C 10/31/01 10/31/00 10/31/99 10/31/98
Net asset value, beginning of period $ 29.32 $ 29.75 $ 27.88 $ 24.61
--------- ------- ------- -------
Net increase (decrease) from investment operations:
Net investment income $ 0.21 $ 0.30 $ 0.22 $ 0.27
Net realized and unrealized gain (loss) on
investments (2.92) 1.30 2.62 4.02
--------- ------- ------- -------
Net increase (decrease) from investment
operations $ (2.71) $ 1.60 $ 2.84 $ 4.29
Distributions to shareowners:
Net investment income (0.21) (0.27) (0.21) (0.29)
Net realized gain (2.29) (1.76) (0.76) (0.73)
Tax return of capital (0.03) - - -
--------- ------- ------- -------
Net increase (decrease) in net asset value $ (5.24) $ (0.43) $ 1.87 $ 3.27
--------- ------- ------- -------
Net asset value, end of period $ 24.08 $ 29.32 $ 29.75 $ 27.88
========= ======= ======= =======
Total return* (10.02)% 5.94% 10.35% 17.80%
Ratio of net expenses to average net assets+ 1.98% 2.02% 1.97% 1.89%
Ratio of net investment income to average net
assets+ 0.84% 1.05% 0.74% 0.97%
Portfolio turnover rate 15% 14% 23% 12%
Net assets, end of period (in thousands) $ 37,618 $32,050 $41,320 $25,941
Ratios with reduction for fees paid indirectly:
Net expenses 1.96% 1.98% 1.94% 1.87%
Net investment income 0.86% 1.09% 0.77% 0.99%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
24
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
4/1/2003
to
4/30/2003
CLASS R (a)
Net asset value, beginning of period $ 19.972
--------
Increase (decrease) from investment operations:
Net investment income $ 0.001
Net realized and unrealized gain (loss) on investments 0.979
--------
Net increase (decrease) from investment operations $ 0.980
--------
Net increase (decrease) in net asset value $ 0.980
--------
Net asset value, end of period $ 20.952
========
Total return* 4.91%
Ratio of net expenses to average net assets+ 0.24%**
Ratio of net investment income to average net assets+ 0.27%**
Portfolio turnover rate 20%
Net assets, end of period (in thousands) $ 1
Ratios with reduction for fees paid indirectly:
Net expenses 0.24%**
Net investment income 0.27%**
(a) Class R shares were first publicly offered on April 1, 2003.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
25
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/03 Year Ended
CLASS Y (unaudited) 10/31/02
Net asset value, beginning of period $ 20.85 $ 24.33
-------- ---------
Net increase (decrease) from investment operations:
Net investment income $ 0.28 $ 0.55
Net realized and unrealized gain (loss) on
investments 0.06 (3.46)
-------- ---------
Net increase (decrease) from investment
operations $ 0.34 $ (2.91)
Distributions to shareowners:
Net investment income (0.30) (0.57)
Net realized gain - -
Tax return of capital - -
-------- ---------
Net increase (decrease) in net asset value $ 0.04 $ (3.48)
-------- ---------
Net asset value, end of period $ 20.89 $ 20.85
======== =========
Total return* 1.65% (12.24)%
Ratio of net expenses to average net assets+ 0.71%** 0.69%
Ratio of net investment income to average net
assets+ 2.91%** 2.49%
Portfolio turnover rate 20%** 10%
Net assets, end of period (in thousands) $ 3,286 $ 2,842
Ratios with reduction for fees paid indirectly:
Net expenses 0.71%** 0.68%
Net investment income 2.91%** 2.50%
Year Ended Year Ended Year Ended 7/2/98 to
CLASS Y 10/31/01 10/31/00 10/31/99 10/31/98
Net asset value, beginning of period $ 29.59 $ 30.00 $ 28.13 $ 28.72
------- ------- ------- -------
Net increase (decrease) from investment operations:
Net investment income $ 0.55 $ 0.70 $ 0.59 $ 0.18
Net realized and unrealized gain (loss) on
investments (2.97) 1.27 2.62 (0.64)
------- ------- ------- -------
Net increase (decrease) from investment
operations $ (2.42) $ 1.97 $ 3.21 $ (0.46)
Distributions to shareowners:
Net investment income (0.52) (0.62) (0.58) (0.13)
Net realized gain (2.29) (1.76) (0.76) -
Tax return of capital (0.03) - - -
------- ------- ------- -------
Net increase (decrease) in net asset value $ (5.26) $ (0.41) $ 1.87 $ (0.59)
------- ------- ------- -------
Net asset value, end of period $ 24.33 $ 29.59 $ 30.00 $ 28.13
======= ======= ======= =======
Total return* (8.89)% 7.33% 11.67% (1.59)%
Ratio of net expenses to average net assets+ 0.66% 0.70% 0.70% 0.74%**
Ratio of net investment income to average net
assets+ 2.17% 2.37% 2.01% 2.07%**
Portfolio turnover rate 15% 14% 23% 12%
Net assets, end of period (in thousands) $ 2,530 $ 2,669 $ 3,517 $ 2,888
Ratios with reduction for fees paid indirectly:
Net expenses 0.64% 0.68% 0.69% 0.74%**
Net investment income 2.19% 2.39% 2.02% 2.07%**
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26
Pioneer Equity Income Fund
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NOTES TO FINANCIAL STATEMENTS 4/30/03 (unaudited)
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1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the Fund), is a Delaware business trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objectives of the Fund are current income
and long-term growth of capital from a portfolio consisting primarily of income
producing equity securities of U.S. corporations.
The Fund offers five classes of shares - Class A, Class B, Class C, Class R and
Class Y shares. Class R shares were first publicly offered on April 1, 2003.
Shares of Class A, Class B, Class C, Class R and Class Y each represent an
interest in the same portfolio of investments of the Fund and have equal rights
to voting, redemptions, dividends and liquidation, except that each class of
shares can bear different transfer agent and distribution fees and have
exclusive voting rights with respect to the distribution plans that have been
adopted by Class A, Class B, Class C and Class R, respectively. There is no
distribution plan for Class Y shareowners.
The Fund's financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America that
require the management of the Fund to, among other things, make estimates and
assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Fund, which are in conformity with those generally accepted in the
investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
is computed once daily, on each day the New York Stock Exchange is open,
as of the close of regular trading on the Exchange. In computing the net
asset value, securities are valued at the last sale price on the principal
exchange where they are traded. Securities that have not traded on the
date of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are
valued at their fair values as determined by, or under the direction of,
the
27
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/03 (unaudited) (continued)
- --------------------------------------------------------------------------------
Board of Trustees. Dividend income is recorded on the ex-dividend date and
interest income, including interest on income bearing cash accounts, is
recorded on the accrual basis. Temporary cash investments are valued at
amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required.
The characterization of distributions to shareowners for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned $49,825 in underwriting commissions on the
sale of Fund shares during the six months ended April 30, 2003.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset
value attributable to Class A, Class B, Class C and Class R shares of the
Fund, respectively. Class Y shares are not subject to a distribution plan.
Shareowners of each class share all expenses and fees paid to the transfer
agent, Pioneer Investment Management Shareholder Services, Inc. (PIMSS),
for its services, which are allocated based on the number of accounts in
each class and
28
Pioneer Equity Income Fund
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- --------------------------------------------------------------------------------
the ratable allocation of related out-of-pocket expenses (see Note 3).
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time and in the same amount,
except that Class A, Class B, Class C, Class R and Class Y shares can bear
different transfer agent and distribution fees.
E. Security Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
dividends on the securities loaned and gain or loss in the fair value of
the loaned securities that may occur during the term of the loan will be
for account of the Fund. The loans are secured by collateral of at least
102%, at all times, of the fair value of the securities loaned, The fair
value of the collateral will be adjusted daily to reflect any price
fluctuation in the value of the loaned securities. The value of loaned
securities and cash collateral at period end are disclosed on the balance
sheet. The Fund invests cash collateral in the Securities Lending
Investment Fund which is managed by Brown Brothers Harriman & Co., the
Fund's custodian.
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or subcustodians. The
Fund's investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
29
Pioneer Equity Income Fund
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NOTES TO FINANCIAL STATEMENTS 4/30/03 (unaudited) (continued)
- --------------------------------------------------------------------------------
2. Management Agreement
PIM manages the Fund's portfolio and is a wholly owned indirect subsidiary of
UniCredito Italiano. Management fees are calculated at the annual rate of 0.60%
of the Fund's average daily net assets up to $10 billion and 0.575% of the
excess over $10 billion.
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. At April 30, 2003, $344,115 was payable to PIM
related to management fees, administrative fees and certain other services.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $137,332 in transfer agent
fees payable to PIMSS at April 30, 2003.
4. Distribution Plans
The Fund adopted Plans of Distribution with respect to Class A, Class B, Class
C and Class R shares (Class A Plan, Class B Plan, Class C Plan and Class R
Plan) in accordance with Rule 12b-1 of the Investment Company Act of 1940.
Pursuant to the Class A Plan, the Fund pays PFD a service fee of up to 0.25% of
the Fund's average daily net assets in reimbursement of its actual expenditures
to finance activities primarily intended to result in the sale of Class A
shares. Pursuant to the Class B Plan and the Class C Plan, the Fund pays PFD
1.00% of the average daily net assets attributable to each class of shares. The
fee consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Pursuant to
the Class R Plan, the Fund pays PFD 0.50% of the average daily net assets
attributable to Class R shares for distribution services. Included in due to
affiliates is $273,355 in distribution fees payable to PFD at April 30, 2003.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations who agree to provide certain
services to plans or plan participants holding shares of the Fund a service fee
of up to 0.25% of the Fund's average daily net assets attributable to Class R
shares held by such plan participants.
30
Pioneer Equity Income Fund
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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 one year of purchase. Class B shares that are redeemed within six years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Redemptions of Class R shares within 18 months of purchase may be subject to a
CDSC of 1.00%. Proceeds from the CDSCs are paid to PFD. For the six months
ended April 30, 2003, CDSCs in the amount of $151,208 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain directed brokerage and expense offset
arrangements resulting in a reduction in the Fund's total expenses. For the six
months ended April 30, 2003, the Fund's expenses were reduced by $1,764 under
such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $50 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $50 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
is payable at the Federal Funds Rate plus 1/2% on an annualized basis. The
Funds pay an annual commitment fee for this facility. The commitment fee is
allocated among such Funds based on their respective borrowing limits. For the
six months ended April 30, 2003, the Fund had no borrowings under this
agreement.
31
Pioneer Equity Income Fund
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NOTES TO FINANCIAL STATEMENTS 4/30/03 (unaudited) (continued)
- --------------------------------------------------------------------------------
7. Affiliated Companies
The Fund's investments in certain companies exceed 5% of the outstanding voting
stock. Such companies are deemed affiliates of the Fund for financial reporting
purposes. The following summarizes transactions with affiliates of the Fund as
of April 30, 2003:
- --------------------------------------------------------------------------------
Purchases Sales Dividend
Affiliates (Shares) (Shares) Income Value
- --------------------------------------------------------------------------------
The Gorman-Rupp Co. $ - $ - $172,025 $10,119,140
- --------------------------------------------------------------------------------
32
Pioneer Equity Income Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
Mary K. Bush Osbert M. Hood, Executive
Richard H. Egdahl, M.D. Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Osbert M. Hood* Joseph P. Barri, Secretary
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
*Mr. Hood was elected Trustee and Executive Vice President on June 3, 2003.
Daniel T. Geraci resigned as Trustee and Executive Vice President on April
30, 2003.
33
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PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
- --------------------------------------------------------------------------------
Your investment professional can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-8O0-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 10-digit account number, your three-digit fund number and your four-digit
personal identification number at hand.
6-Month Reinstatement Privilege (for Class A and Class B Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 6 months of your
redemption. You have the choice of investing in any Pioneer fund provided the
account has the exact same registration and meets the fund's minimum investment
requirement. Reinstated accounts may only purchase Class A fund shares.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
34
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Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds
you wish to invest in. You choose the amounts and dates for Pioneer to sell
shares of your original fund and use the proceeds to buy shares of the other
funds you have chosen. Over time, your investment will be shifted out of the
original fund. (Automatic Exchange is available for originating accounts with a
balance of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals.
You decide the frequency and the day of the month. Pioneer will send the
proceeds by check to the address you designate, or electronically to your bank
account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available for accounts with a value of $10,000 or
more.)
35
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This page for your notes.
36
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This page for your notes.
37
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our website: www.pioneerfunds.com
ITEM 1 insert annual report
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.
Not applicable for semiannual reports; to be answered on annual submissions
after July 15, 2003.
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.
(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)).
(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 for semiannual reports; to be answered on annual submissions
after July 15, 2003.
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.
(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.
(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.
(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.
(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.
(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.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
Not applicable for semiannual reports; to be answered on annual submissions
after December 15, 2003.
ITEMS 5-6. [RESERVED]
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. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
Not applicable for semiannual reports; to be answered on annual submissions
after July 15, 2003.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
Not applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Equity Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 8, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date July 8, 2003
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date July 8, 2003
* Print the name and title of each signing officer under his or her signature.