OMB APPROVAL
OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response..... 5.0
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 811-0000866707
Pioneer Europe 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
------------------------
EUROPE
FUND
Semiannual
Report
4/30/03
[LOGO] PIONEER
Investments
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 8
Schedule of Investments 12
Financial Statements 18
Notes to Financial Statements 27
Trustees, Officers and Service Providers 33
Programs and Services for Pioneer Shareowners 34
Retirement Plans for Pioneer 36
Pioneer Europe 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, Pioneer Investment Management, Inc.
Director of Portfolio Management U.S.
1
Pioneer Europe Fund
PORTFOLIO SUMMARY 4/30/03
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
International Common Stocks 98.3%
Preferred Common Stocks 1.7%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United Kingdom 36.8%
France 15.3%
Switzerland 11.3%
Germany 9.6%
Netherlands 9.1%
Italy 4.8%
Spain 4.1%
Finland 3.3%
Ireland 3.1%
Portugal 0.9%
Denmark 0.6%
Sweden 0.6%
Greece 0.5%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
1. Vodafone Group Plc 5.30%
2. Royal Dutch Petroleum Co. 3.33
3. Nokia Oyj 3.26
4. UBS AG 3.24
5. Novartis AG 3.05
6. BNP Paribas SA 2.79
7. Shell Transport & Trading Co. 2.77
8. GlaxoSmithKline Plc 2.61
9. BP Amoco Plc 2.58
10. AstraZeneca Plc 2.50
Fund holdings will vary for other periods.
2
Pioneer Europe Fund
PERFORMANCE UPDATE 4/30/03 CLASS A SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/03 10/31/02
$19.76 $19.40
Distributions per Share Income Short-Term Long-Term
(11/1/02 - 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 Europe Fund at public offering price, compared to
that of the Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of April 30, 2003)
Net Asset Public Offering
Period Value Price*
10 Years 6.02% 5.39%
5 Years -9.42 -10.49
1 Year -16.48 -21.27
* 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 WAS REPRESENTED AS A MOUTAIN CHART IN THE PRINTED MATERIAL]
Pioneer MSCI
Europe Europe
Fund* Index
4/93 9425 10000
10423 11290
10/94 12081 12559
13908 14218
10/96 16384 16701
21020 21041
10/98 24069 25894
26237 29138
10/00 28028 29411
19556 22693
10/02 16603 19540
4/03 16911 20355
The Morgan Stanley Capital International (MSCI) Europe Index is a
capitalization-weighted index of the 15 European country indexes included in the
MSCI EAFE (Europe, Australasia, Far East) Index. These countries are: Austria,
Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway,
Portugal, Spain, Sweden, Switzerland and the United Kingdom. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in the Index.
Past performance does not guarantee future results. Returns and share prices
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 Europe Fund
PERFORMANCE UPDATE 4/30/03 CLASS B SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/03 10/31/02
$18.28 $18.04
Distributions per Share Income Short-Term Long-Term
(11/1/02 - 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 Europe Fund, compared to that of the Morgan Stanley
Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of April 30, 2003)
If If
Period Held Redeemed*
Life-of-Class
(4/4/94) 4.10% 4.10%
5 Years -10.25 -10.42
1 Year -17.29 -20.59
* 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 WAS REPRESENTED AS A MOUTAIN CHART IN THE PRINTED MATERIAL]
Pioneer MSCI
Europe Europe
Fund* Index
4/94 10000 10000
10539 10309
10/95 12060 11672
14089 13709
10/97 17493 17272
20367 21256
10/99 22021 23919
23322 24143
10/01 16106 18628
13545 16040
4/03 13726 16710
+ Index comparison begins April 30, 1994. The Morgan Stanley Capital
International (MSCI) Europe Index is a capitalization-weighted index of the 15
European country indexes included in the MSCI EAFE (Europe, Australasia, Far
East) Index. These countries are: Austria, Belgium, Denmark, Finland, France,
Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
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 Europe Fund
PERFORMANCE UPDATE 4/30/03 CLASS C SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/03 10/31/02
$18.22 $17.98
Distributions per Share Income Short-Term Long-Term
(11/1/02 - 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 Europe Fund at public offering price, compared to
that of the Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of April 30, 2003)
Net Asset Public Offering
Period Value Price/CDSC*
Life-of-Class
(1/31/96) 1.50% 1.36%
5 Years -10.22 -10.40
1 Year -17.29 -18.11
* Reflects deduction of the 1% sales charge at the beginning of the period and
assumes reinvestment of distributions. The 1% contingent deferred sales charge
(CDSC) applies to investments sold within one year of purchase.
Value of $10,000 Investment
[THE FOLLOWING WAS REPRESENTED AS A MOUTAIN CHART IN THE PRINTED MATERIAL]
Pioneer MSCI
Europe Europe
Fund* Index
1/96 9900 10000
11277 11232
10/97 14375 14151
16345 17414
10/99 17685 19596
18733 19780
10/01 12947 15262
10883 13142
4/03 11028 13690
The Morgan Stanley Capital International (MSCI) Europe Index is a
capitalization-weighted index of the 15 European country indexes included in
the MSCI EAFE (Europe, Australasia, Far East) Index. These countries are:
Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy,
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United
Kingdom. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
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 Europe Fund
PERFORMANCE UPDATE 4/30/03 CLASS R SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/03 4/1/03
$19.76 $17.88
Distributions per Share Income Short-Term Long-Term
(4/1/03 - 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 Europe Fund, compared to that of the Morgan Stanley
Capital International (MSCI) Europe Index.
Average Annual Total Returns+
(As of April 30, 2003)
If If
Period Held Redeemed*
10 Years 5.65% 5.65%
5 Years -9.59 -9.59
1 Year -16.45 -17.28
* Reflects deduction of 1% CDSC. Shares sold within 18 months of purchase may be
subject to CDSC.
Value of $10,000 Investment
[THE FOLLOWING WAS REPRESENTED AS A MOUTAIN CHART IN THE PRINTED MATERIAL]
Pioneer MSCI
Europe Europe
Fund* Index
4/93 9425 10000
10423 11290
10/94 12081 12559
13908 14218
10/96 16384 16701
21020 21041
10/98 24069 25894
26237 29138
10/00 28028 29411
20044 22693
10/02 17018 19540
4/03 17333 20355
+ 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 Morgan Stanley Capital International (MSCI) Europe Index is a
capitalization-weighted index of the 15 European country indexes included in
the MSCI EAFE (Europe, Australasia, Far East) Index. These countries are:
Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy,
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United
Kingdom. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
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 Europe Fund
PERFORMANCE UPDATE 4/30/03 CLASS Y SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/03 10/31/02
$20.33 $19.88
Distributions per Share Income Short-Term Long-Term
(11/1/02 - 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 Europe Fund, compared to that of the Morgan Stanley
Capital International (MSCI) Europe Index.
Average Annual Total Returns*
(As of April 30, 2003)
If If
Period Held Redeemed
Life-of-Class
(7/2/98) -9.36% -9.36%
1 Year -15.82 -15.82
* Assumes reinvestment of distributions.
Value of $10,000 Investment
[THE FOLLOWING WAS REPRESENTED AS A MOUTAIN CHART IN THE PRINTED MATERIAL]
Pioneer MSCI
Europe Europe
Fund* Index
7/98 10000 10000
8458 9064
10/99 9269 10199
9950 10295
10/01 6973 7943
5960 6840
4/03 6095 7126
+ Index comparison begins July 31, 1998. The Morgan Stanley Capital
International (MSCI) Europe Index is a capitalization-weighted index of the 15
European country indexes included in the MSCI EAFE (Europe, Australasia, Far
East) Index. These countries are: Austria, Belgium, Denmark, Finland, France,
Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
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 Europe Fund
PORTFOLIO MANAGEMENT DISCUSSION 4/30/03
European stocks enjoyed a dramatic comeback in April, climbing 10% during the
month. This rally helped push Pioneer Europe Fund's performance for the six
months ended April 30, 2002, into positive territory for the first half of its
fiscal year. It appears that the relatively short duration of the war in Iraq
helped to temper investors' anxiety and ease the uncertainty overshadowing stock
markets worldwide. In the following interview, Stan Pearson, a member of the
Fund's portfolio management team, suggests that while volatility and stagnant
economic growth are complicating a recovery, the outlook is improving.
Q: How did European stock markets perform during the first half of the Fund's
fiscal year?
A: European stock markets experienced great volatility during the six months. A
market rally that commenced in October 2002 continued into November,
triggering a rebound in stocks that had sold off heavily during the third
quarter of 2002. The technology, telecommunications and financial sectors
were the biggest gainers during this period. However, renewed geopolitical
tensions and soaring oil prices prompted a sharp sell off in December, which
continued until the final weeks of March. During this time, reports of
corporate malfeasance further aggravated confidence, and investors moved out
of higher risk assets into fixed-income securities and precious metals.
While geopolitical tensions dominated investor sentiment throughout the past
six months, the weakness of the European economy, in particular Germany,
also remained a key concern. The strong appreciation of the euro held
contrasting fortunes for our shareowners. While the value of their shares
received a boost as the U.S. dollar weakened, the impact of a strong euro on
the value of European companies' overseas earnings had a profoundly negative
impact on businesses that rely heavily on exporting their products beyond
the euro zone. In addition, several companies are in the process of
deleveraging and strengthening their balance sheets. This process is
triggering an unusually high level of stock issuance, which is overwhelming
demand and suppressing prices.
Q: How did the Fund perform in this environment?
A: For the six months ended April 30, 2003, the Fund's Class A, B and C shares
returned 1.86%, 1.33% and 1.33% at net asset
8
Pioneer Europe Fund
value, respectively. In comparison, the Fund's benchmark, the Morgan Stanley
Capital International (MSCI) Europe Index, posted a return of 4.17% for the
same period. We attribute the Fund's underperformance relative to its
benchmark to disappointing performance among a handful of individual stocks
that lagged their respective sectors. For instance, food retailer Ahold
(Netherlands) came under pressure in late February when it announced it had
overstated its 2001 and 2002 earnings by $500 million. As is the case in the
United States, closer scrutiny of balance sheets has produced a wave of
restated earnings across Europe, and investors have been quick to punish
companies that have been less than forthcoming with their corporate
reporting - regardless of their underlying strength.
Q: Which sectors saw the greatest improvement during the six months?
A: Europe's telecommunications, software and services sectors rallied strongly
early in the period, outperforming the benchmark by a considerable margin,
but lost momentum when caution returned to the markets in December. However,
several defensive industries, including the utility, financial and
industrial sectors, performed well for your Fund in the slower-growth
environment. Defensive sectors tend to have a low correlation to the
underlying strength of the economy, whereas cyclical sectors tend to move in
tandem with the pace of economic growth.
Q: Could you describe some of the Fund's holdings that prospered during the
six-month period?
A: Certainly. Our decision to emphasize investments in the capital goods sector
proved rewarding. Construction and engineering company Grupo Dragados
(Spain) is benefiting from strong government-sponsored contracts. Our
decision to hold building materials company St. Gobain (France) in spite of
its asbestos-related litigation liabilities proved worthwhile. Its share
price recovered strongly when the company disclosed the true extent of its
exposure and the adequate resources it possessed to meet these liabilities.
Furthermore, proposals to introduce a cap in liabilities any company might
face in the future were well received.
The materials and utilities sectors also enjoyed solid relative performance.
Building materials company Wolseley benefited from strong
9
Pioneer Europe Fund
PORTFOLIO MANAGEMENT DISCUSSION 4/30/03 (continued)
activity in the U.S. and U.K. housing markets. Given the defensive quality
of the materials sector, the Fund's investments in housing materials
provider CRH (Ireland), metals and mining producer Rio Tinto (United
Kingdom) and industrial gas producer L'Air Liquide (France) also made
notable contributions to performance.
A handful of our stock selections in the banking sector turned in good
performance for company-specific reasons. Allied Irish Banks benefited over
the year from its strong market position in Ireland, whose economy continues
to grow at rates well above the European average. In addition, the group
successfully sold its U.S. subsidiary, Allfirst Financial, to M&T Bank while
retaining an interest in the newly formed company. HSBC Holding (United
Kingdom) rallied on news of its acquisition of the U.S. consumer finance
company Household Finance Corporation.
Finally, our decision to underweight insurance stocks benefited the Fund.
Many European insurers are suffering from concerns that falling equity
markets are pressuring companies' capital adequacy ratios, as losses on
equity investments have depleted their capital bases.
Q: Have prospects for the technology or telecommunications sectors improved?
A: The outlook for these sectors has improved since last August. Within the
telecommunications sector, European operators have improved balance sheets
and pursued aggressive cost cutting programs. Among the principal operators,
we believe that KPN (Netherlands), BT (United Kingdom) Telecom Italia
(Italy) and France Telecom have made good progress in reducing their debt
burden, and their rising stock prices reflect improved sentiment towards the
sector. Within the technology sector, stocks such as Nokia (Finland) have
performed strongly despite weak market conditions. Additionally, Ericsson
(Sweden) and Alcatel (France) are addressing their overcapacity problems.
They have been reducing costs through office closings and the elimination of
non-core activities. We are confident that these companies are well placed
to benefit from an eventual resumption in demand once business spending
increases.
10
Pioneer Europe Fund
Q: What is your outlook for the balance of the fiscal year?
A: Our outlook for Europe's economy is cautiously optimistic. Not only did the
price of oil decline in response to the resolution of a quick war with Iraq
and the political unrest in Venezuela, but the majority of corporate
earnings announcements during the first quarter of 2003 proved better than
expected. Furthermore, even with the strong rally across Europe in April,
stock price valuations remain attractive.
We are maintaining a modestly defensive posture in the portfolio. Some
degree of uncertainty is likely to continue, with stock markets rising and
falling as an indicator of investors' outlook about the Middle East and
economic growth. We anticipate that with a reduction in political tensions,
investors will once again turn their attention toward corporate earnings and
prospects for the European economy.
11
Pioneer Europe Fund
SCHEDULE OF INVESTMENTS 4/30/03 (unaudited)
Shares Value
PREFERRED STOCK - 1.7%
Materials - 0.5%
Specialty Chemicals - 0.5%
13,576 Henkel KGAA Pfd. (Non Voting) $ 876,729
------------
Total Materials $ 876,729
------------
Automobiles & Components - 1.2%
Automobile Manufacturers - 1.2%
5,264 Porsche AG Designs $ 1,936,995
------------
Total Automobiles & Components $ 1,936,995
------------
TOTAL PREFERRED STOCK
(Cost $2,372,337) $ 2,813,724
------------
COMMON STOCKS - 98.3%
Energy - 12.5%
Integrated Oil & Gas - 7.8%
674,732 BP Amoco Plc $ 4,271,740
279,506 ENI S.p.A. 3,995,203
766,052 Shell Transport & Trading Co. 4,580,280
------------
$ 12,847,223
------------
Oil & Gas Refining, Marketing &
Transportation - 4.7%
134,225 Royal Dutch Petroleum Co. $ 5,502,046
17,944 Total Fina Elf SA 2,358,164
------------
$ 7,860,210
------------
Total Energy $ 20,707,433
------------
Materials - 4.7%
Construction Materials - 1.4%
156,832 CRH Plc $ 2,411,872
------------
Diversified Metals & Mining - 2.2%
140,666 Rio Tinto Plc $ 2,684,616
37,490 Sandvik AB 954,212
------------
$ 3,638,828
------------
Specialty Chemicals - 1.1%
11,931 L'Air Liquide SA* $ 1,810,813
------------
Total Materials $ 7,861,513
------------
The accompanying notes are an integral part of these financial statements.
12
Pioneer Europe Fund
Shares Value
Capital Goods - 3.8%
Aerospace & Defense - 0.5%
77,603 Smiths Industries $ 819,361
------------
Construction & Engineering - 2.6%
94,820 Compagnie de Saint-Gobain $ 3,289,717
53,495 Grupo Dragados SA 1,024,316
------------
$ 4,314,033
------------
Electrical Components & Equipment - 0.7%
73,740 Thomson Multimedia* $ 1,082,891
------------
Total Capital Goods $ 6,216,285
------------
Commercial Services & Supplies - 1.3%
Diversified Commercial Services - 1.3%
27,362 ISS International Service System AS $ 1,026,060
71,075 TNT Post Group NV* 1,111,324
------------
$ 2,137,384
------------
Total Commercial Services & Supplies $ 2,137,384
------------
Automobiles & Components - 2.2%
Automobile Manufacturers - 2.2%
49,026 Bayerische Motoren Werke AG $ 1,629,642
42,303 Puegeot Citroen SA 1,984,341
------------
$ 3,613,983
------------
Total Automobiles & Components $ 3,613,983
------------
Hotels, Restaurants & Leisure - 1.2%
Restaurants - 1.2%
443,502 Compass Group Plc $ 2,029,150
------------
Total Hotels, Restaurants & Leisure $ 2,029,150
------------
Media - 4.2%
Advertising - 0.6%
42,628 Publicis SA $ 942,580
------------
Movies & Entertainment - 0.5%
99,596 Pearson Plc $ 828,510
------------
The accompanying notes are an integral part of these financial statements.
13
Pioneer Europe Fund
SCHEDULE OF INVESTMENTS 4/30/03 (unaudited) (continued)
Shares Value
Publishing - 3.1%
216,850 Elsevier NV $ 2,473,867
102,677 Vivendi Universal 1,676,652
34,631 VNU NV 1,007,060
------------
$ 5,157,579
------------
Total Media $ 6,928,669
------------
Retailing - 0.6%
Home Improvement Retail - 0.6%
104,243 Wolseley Plc $ 1,000,578
------------
Total Retailing $ 1,000,578
------------
Food & Drug Retailing - 6.7%
Food Retail - 6.7%
19,132 Carrefour Supermarch* $ 833,888
16,831 Nestle SA (Registered Shares) 3,436,293
1,179,898 Tesco Plc 3,732,618
47,723 Unilever NV 3,013,065
------------
$ 11,015,864
------------
Total Food & Drug Retailing $ 11,015,864
------------
Food, Beverage & Tobacco - 3.8%
Distillers & Vintners - 1.5%
217,140 Diageo Plc $ 2,405,538
------------
Tobacco - 2.3%
405,058 British American Tobacco Plc $ 3,874,994
------------
Total Food, Beverage & Tobacco $ 6,280,532
------------
Health Care Equipment & Supplies - 0.7%
Health Care Equipment - 0.7%
29,065 Gehe AG $ 1,178,407
------------
Total Health Care Equipment & Supplies $ 1,178,407
------------
Pharmaceuticals & Biotechnology - 12.3%
Biotechnology - 0.4%
177,933 Celltech Chiroscience Plc* $ 728,700
------------
The accompanying notes are an integral part of these financial statements.
14
Pioneer Europe Fund
Shares Value
Pharmaceuticals - 11.9%
18,704 Altana AG $ 918,366
105,249 AstraZeneca Plc 4,128,488
52,964 Aventis SA 2,676,948
215,421 GlaxoSmithKline Plc 4,307,751
127,517 Novartis AG 5,037,406
58,592 Schering AG 2,587,869
------------
$ 19,656,828
------------
Total Pharmaceuticals & Biotechnology $ 20,385,528
------------
Banks - 15.2%
171,875 Allied Irish Banks Plc $ 2,668,204
300,707 Banco Bilbao Vizcaya Argentaria SA 3,033,660
74,784 Banco Popolare Di Verona* 1,015,416
599,112 Barclays Plc 4,111,667
98,139 BNP Paribas SA 4,616,658
37,229 CS Group* 890,659
348,611 HSBC Holding Plc 3,822,972
123,966 Royal Bank of Scotland Group Plc 3,252,363
149,211 Standard Chartered Plc 1,666,130
------------
Total Banks $ 25,077,729
------------
Diversified Financials - 7.7%
Diversified Financial Services - 7.7%
52,484 Deutsche Boerse AG $ 2,465,432
85,400 ING Groep NV 1,389,753
85,400 ING Groep NV (Dividend Coupon) 14,327
30,225 Societe Generale 1,852,523
24,625 Swiss Re 1,610,998
112,836 UBS AG 5,361,439
------------
$ 12,694,472
------------
Total Diversified Financials $ 12,694,472
------------
Insurance - 1.2%
Life & Health Insurance - 0.4%
58,527 Aegon NV $ 596,346
2,341 Aegon NV (Dividend Coupon) 23,855
------------
$ 620,201
------------
The accompanying notes are an integral part of these financial statements.
15
Pioneer Europe Fund
SCHEDULE OF INVESTMENTS 4/30/03 (unaudited) (continued)
Shares Value
Multi-Line Insurance - 0.8%
90,438 AXA SA $ 1,376,657
------------
Total Insurance $ 1,996,858
------------
Software & Services - 1.2%
Application Software - 1.2%
228,470 Indra Sistemas SA $ 1,967,600
------------
Total Software & Services $ 1,967,600
------------
Technology Hardware & Development - 6.0%
Electronic Equipment & Instruments - 2.7%
37,727 Roche Holdings AG $ 2,404,076
42,167 Siemens AG 2,101,526
------------
$ 4,505,602
------------
Telecommunications Equipment - 3.3%
317,771 Nokia Oyj $ 5,388,033
------------
Total Technology Hardware & Development $ 9,893,635
------------
Telecommunication Services - 9.2%
Integrated Telecommunication Services - 3.9%
119,227 British Sky Broadcasting Plc* $ 1,227,371
77,250 Hellenic Telecom Organization* 831,171
212,354 Portugal Telecom, SGPS, SA 1,522,423
255,682 Telecom Italia Mobile S.p.A. 1,212,503
210,764 Telecom Italia S.p.A. 1,723,180
------------
$ 6,516,648
------------
Wireless Telecommunication Services - 5.3%
4,446,588 Vodafone Group Plc $ 8,767,311
------------
Total Telecommunication Services $ 15,283,959
------------
Utilities - 3.8%
Electric Utilities - 3.3%
46,504 E.On AG $ 2,210,008
47,110 Iberdrola SA 760,320
116,163 National Grid Trans Plc* 763,769
281,737 Scottish Power Plc* 1,746,498
------------
$ 5,480,595
------------
The accompanying notes are an integral part of these financial statements.
16
Pioneer Europe Fund
Shares Value
Water Utilities - 0.5%
35,071 Veolia Environment $ 759,007
------------
Total Utilities $ 6,239,602
------------
TOTAL COMMON STOCKS
(Cost $171,689,338) $162,509,181
============
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $174,061,675) (a)(b)(c) $165,322,905
============
* Non-income producing security.
(a) Distribution of investments by country of issue, as a percentage of total
equity holdings, is as follows:
United Kingdom 36.8%
France 15.3
Switzerland 11.3
Germany 9.6
Netherlands 9.1
Italy 4.8
Spain 4.1
Finland 3.3
Ireland 3.1
Portugal 0.9
Denmark 0.6
Sweden 0.6
Greece 0.5
----
100.0%
=====
(b) At April 30, 2003 the net unrealized loss on investments based on cost for
federal income tax purposes of $177,444,360 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 6,692,001
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (18,813,456)
------------
Net unrealized loss $(12,121,455)
============
(c) As of October 31, 2002, the Fund had a capital loss carryforward of
$56,486,641, which will expire between 2008 and 2010 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended April 30, 2003 aggregated $38,380,682 and $50,467,556,
respectively.
The accompanying notes are an integral part of these financial statements.
17
Pioneer Europe Fund
BALANCE SHEET 4/30/03 (unaudited)
ASSETS:
Investment in securities, at value (cost $174,061,675) $ 165,322,905
Cash 7,224,700
Foreign currency, at value 1,836
Futures collateral 800,000
Receivables -
Fund shares sold 975,671
Dividends, interest and foreign taxes withheld 1,350,965
Other 78,930
-------------
Total assets $ 175,755,007
-------------
LIABILITIES:
Payables -
Fund shares repurchased $ 1,803,025
Futures variation margin 74,824
Due to affiliates 332,781
Accrued expenses 206,147
Other 65,349
-------------
Total liabilities $ 2,482,126
-------------
NET ASSETS:
Paid-in capital $ 252,285,369
Accumulated undistributed net investment income 477,431
Accumulated net realized loss on investments, futures
contracts and foreign currency transactions (70,765,861)
Net unrealized loss on investments (8,738,770)
Net unrealized loss on futures contracts (76,621)
Net unrealized gain on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 91,333
-------------
Total net assets $ 173,272,881
=============
NET ASSET VALUE PER SHARE:
Class A (based on $114,098,340/5,773,555 shares) $ 19.76
=============
Class B (based on $45,662,051/2,498,174 shares) $ 18.28
=============
Class C (based on $11,574,515/635,203 shares) $ 18.22
=============
Class R (based on $553.28/28 shares) $ 19.76
=============
Class Y (based on $1,937,422/95,301 shares) $ 20.33
=============
MAXIMUM OFFERING PRICE:
Class A ($19.76 \d 94.25%) $ 20.97
=============
Class C ($18.22 \d 99.00%) $ 18.40
=============
The accompanying notes are an integral part of these financial statements.
18
Pioneer Europe Fund
STATEMENT OF OPERATIONS (unaudited)
For the Six Months Ended 4/30/03
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $324,990) $ 2,408,842
Interest 6,916
------------
Total investment income $ 2,415,758
------------
EXPENSES:
Management fees $ 838,365
Transfer agent fees
Class A 298,730
Class B 195,429
Class C 47,279
Class Y 17
Distribution fees
Class A 133,800
Class B 236,355
Class C 57,339
Custodian fees 42,527
Registration fees 29,873
Professional fees 11,691
Printing 45,608
Fees and expenses of nonaffiliated trustees 3,264
------------
Total expenses $ 1,940,277
Less fees paid indirectly (1,950)
------------
Net expenses $ 1,938,327
------------
Net investment income $ 477,431
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $(10,863,126)
Futures contracts 122,232
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (155,641) $(10,896,535)
------------ ------------
Change in net unrealized gain (loss) from:
Investments $ 13,934,045
Futures contracts (381,777)
Forward foreign currency contracts and other
assets and liabilities denominated in foreign
currencies 6,527 $ 13,558,795
------------ ------------
Net gain on investments and foreign currency
transactions $ 2,662,260
------------
Net increase in net assets resulting from operations $ 3,139,691
============
The accompanying notes are an integral part of these financial statements.
19
Pioneer Europe 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 (loss) $ 477,431 $ (448,297)
Net realized loss on investments, futures contracts
and foreign currency transactions (10,896,535) (25,082,839)
Change in net unrealized gain (loss) on investments,
futures contracts and foreign currency transactions 13,558,795 (5,397,104)
------------ ------------
Net increase (decrease) in net assets resulting
from operations $ 3,139,691 $(30,928,240)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $130,857,004 $198,272,236
Cost of shares repurchased (143,318,080) (258,730,533)
------------ ------------
Net decrease in net assets resulting from fund
share transactions $(12,461,076) $(60,458,297)
------------ ------------
Net decrease in net assets $ (9,321,385) $(91,386,537)
NET ASSETS:
Beginning of period 182,594,266 273,980,803
------------ ------------
End of period (including accumulated net investment
income of $477,431 and $0, respectively) $173,272,881 $182,594,266
============ ============
The accompanying notes are an integral part of these financial statements.
20
Pioneer Europe 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 6,391,310 $120,033,645 7,647,990 $161,453,853
Less shares repurchased (6,599,391) (124,638,185) (9,000,673) (194,461,375)
---------- ------------ ---------- ------------
Net decrease (208,081) $ (4,604,540) (1,352,683) $(33,007,522)
========== ============ ========== ============
CLASS B
Shares sold 79,628 $ 1,424,493 438,959 $ 9,257,799
Less shares repurchased (464,044) (8,072,278) (1,428,876) (29,996,573)
---------- ------------ ---------- ------------
Net decrease (384,416) $ (6,647,785) (989,917) $(20,738,774)
========== ============ ========== ============
CLASS C
Shares sold 512,088 $ 8,941,208 524,672 $ 10,712,190
Less shares repurchased (564,750) (9,883,438) (841,956) (17,464,179)
---------- ------------ ---------- ------------
Net decrease (52,662) $ (942,230) (317,284) $ (6,751,989)
========== ============ ========== ============
CLASS R*
Shares sold 28 $ 500 - $ -
Less shares repurchased - - - -
---------- ------------ ---------- ------------
Net increase 28 $ 500 - $ -
========== ============ ========== ============
CLASS Y
Shares sold 24,072 $ 457,158 845,869 $ 16,848,394
Less shares repurchased (37,630) (724,179) (815,867) (16,808,406)
---------- ------------ ---------- ------------
Net increase (decrease) (13,558) $ (267,021) 30,002 $ 39,988
========== ============ ========== ============
*Class R shares were first publically offered on April 1, 2003.
The accompanying notes are an integral part of these financial statements.
21
FINANCIAL HIGHLIGHTS
Pioneer Europe Fund
Six Months
Ended
4/30/03 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS A (unaudited) 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
Net asset value, beginning of period $ 19.40 $ 22.85 $ 32.75 $ 31.71 $ 29.87 $ 27.60
--------- --------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.09 $ 0.06 $ 0.07 $ (0.15) $ 0.12 $ 0.10
Net realized and unrealized gain (loss) on
investments, futures contracts and foreign
currency transactions 0.27 (3.51) (9.97) 2.30 2.54 3.72
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations $ 0.36 $ (3.45) $ (9.90) $ 2.15 $ 2.66 $ 3.82
Distributions to shareowners:
Net investment income -- -- -- (0.00)(a) (0.09) --
Net realized gain -- -- -- (1.11) (0.73) (1.55)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ 0.36 $ (3.45) $ (9.90) $ 1.04 $ 1.84 $ 2.27
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 19.76 $ 19.40 $ 22.85 $ 32.75 $ 31.71 $ 29.87
========= ========= ========= ========= ========= =========
Total return* 1.86% (15.10)% (30.23)% 6.83% 9.01% 14.51%
Ratio of net expenses to average net assets+ 1.97%** 1.89% 1.76% 1.54% 1.63% 1.54%
Ratio of net investment income (loss) to
average net assets+ 0.94%** 0.14% (0.07)% (0.39)% 0.29% 0.47%
Portfolio turnover rate 47%** 38% 116% 46% 60% 39%
Net assets, end of period (in thousands) $ 114,098 $ 116,051 $ 167,568 $ 314,781 $ 268,446 $ 315,309
Ratios with no waiver of management fees by PIM
and no reduction for fees paid indirectly:
Net expenses 1.97%** 1.89% 1.76% 1.54% 1.63% 1.54%
Net investment income (loss) 0.94%** 0.14% (0.07)% (0.39)% 0.29% 0.47%
Ratios with waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 1.97%** 1.89% 1.74% 1.52% 1.62% 1.49%
Net investment income (loss) 0.94%** 0.14% (0.05)% (0.37)% 0.30% 0.52%
(a) Amount rounds to less than one cent per share.
* 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.
22
FINANCIAL HIGHLIGHTS
Pioneer Europe Fund
Six Months
Ended
4/30/03 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS B (unaudited) 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
Net asset value, beginning of period $ 18.04 $ 21.45 $ 31.06 $ 30.38 $ 28.79 $ 26.88
--------- --------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment loss $ (0.01) $ (0.40) $ (0.38) $ (0.40) $ (0.18) $ (0.09)
Net realized and unrealized gain (loss) on
investments, futures contracts and foreign
currency transactions 0.25 (3.01) (9.23) 2.19 2.50 3.55
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations $ 0.24 $ (3.41) $ (9.61) $ 1.79 $ 2.32 $ 3.46
Distributions to shareowners:
Net realized gain -- -- -- (1.11) (0.73) (1.55)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ 0.24 $ (3.41) $ (9.61) $ 0.68 $ 1.59 $ 1.91
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 18.28 $ 18.04 $ 21.45 $ 31.06 $ 30.38 $ 28.79
========= ========= ========= ========= ========= =========
Total return* 1.33% (15.90)% (30.94)% 5.90% 8.12% 13.50%
Ratio of net expenses to average net assets+ 2.99%** 2.81% 2.64% 2.37% 2.48% 2.35%
Ratio of net investment loss to average net
assets+ (0.15)%** (0.78)% (0.94)% (1.21)% (0.52)% (0.34)%
Portfolio turnover rate 47%** 38% 116% 46% 60% 39%
Net assets, end of period (in thousands) $ 45,662 $ 52,009 $ 83,075 $ 150,436 $ 129,336 $ 135,535
Ratios with no waiver of management fees by PIM
and no reduction for fees paid indirectly:
Net expenses 2.99%** 2.81% 2.64% 2.37% 2.48% 2.35%
Net investment loss (0.15)%** (0.78)% (0.94)% (1.21)% (0.52)% (0.34)%
Ratios with waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 2.99%** 2.81% 2.63% 2.36% 2.47% 2.31%
Net investment loss (0.15)%** (0.78)% (0.93)% (1.20)% (0.51)% (0.30)%
(a) The per share data presented above is based upon the average shares
outstanding for the year presented.
* 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.
23
FINANCIAL HIGHLIGHTS
Pioneer Europe Fund
Six Months
Ended
4/30/03 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS C (unaudited) 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
Net asset value, beginning of period $ 17.98 $ 21.39 $ 30.95 $ 30.27 $ 28.67 $ 26.73
-------- -------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment loss $ (0.01) $ (0.45) $ (0.44) $ (0.39) $ (0.13) $ (0.04)
Net realized and unrealized gain (loss) on
investments, futures contracts and foreign
currency transactions 0.25 (2.96) (9.12) 2.18 2.46 3.53
-------- -------- -------- -------- -------- --------
Net increase (decrease) from investment operations $ 0.24 $ (3.41) $ (9.56) $ 1.79 $ 2.33 $ 3.49
Distributions to shareowners:
Net realized gain -- -- -- (1.11) (0.73) (1.55)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ 0.24 $ (3.41) $ (9.56) $ 0.68 $ 1.60 $ 1.94
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 18.22 $ 17.98 $ 21.39 $ 30.95 $ 30.27 $ 28.67
======== ======== ======== ======== ======== ========
Total return* 1.33% (15.94)% (30.89)% 5.93% 8.19% 13.70%
Ratio of net expenses to average net assets 2.98%** 2.82% 2.60% 2.34% 2.42% 2.28%
Ratio of net investment loss to average net
assets (0.11)%** (0.80)% (0.93)% (1.19)% (0.44)% (0.20)%
Portfolio turnover rate 47%** 38% 116% 46% 60% 39%
Net assets, end of period (in thousands) $ 11,575 $ 12,391 $ 21,503 $ 46,544 $ 43,559 $ 39,261
Ratios with no waiver of management fees by PIM
and no reduction for fees paid indirectly:
Net expenses 2.98%** 2.82% 2.60% 2.34% 2.42% 2.28%
Net investment loss (0.11)%** (0.80)% (0.93)% (1.19)% (0.44)% (0.20)%
Ratios with waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 2.98%** 2.82% 2.58% 2.33% 2.40% 2.22%
Net investment loss (0.11)%** (0.80)% (0.91)% (1.18)% (0.42)% (0.14)%
(a) The per share data presented above is based upon the average shares
outstanding for the year presented.
* 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 Europe Fund
FINANCIAL HIGHLIGHTS
4/1/03 to
4/30/03
(unaudited)
CLASS R (a)
Net asset value, beginning of period $ 17.88
-------
Increase from investment operations:
Net investment income $ 0.07
Net realized and unrealized gain on investments, futures
contracts and foreign currency transactions 1.81
-------
Net increase from investment operations $ 1.88
-------
Net increase in net asset value $ 1.88
-------
Net asset value, end of period $ 19.76
=======
Total return* 10.51%
Ratio of net expenses to average net assets+ 2.37%**
Ratio of net investment income to average net assets+ 4.73%**
Portfolio turnover rate 47%**
Net assets, end of period (in thousands) $ 1
Ratios with no waiver of management fees by PIM and no reduction
for fees paid indirectly:
Net expenses 2.37%**
Net investment income 4.73%**
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 2.37%**
Net investment income 4.73%**
(a) Class R shares were first publicly offered on April 1, 2003.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of distributions, and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
25
FINANCIAL HIGHLIGHTS
Pioneer Europe Fund
Six Months
Ended
4/30/03 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS Y (unaudited) 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
Net asset value, beginning of period $ 19.88 $ 23.26 $ 33.19 $ 31.97 $ 29.90 $ 34.63
--------- --------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.17 $ 0.11 $ (0.25) $ -- $ 0.35 $ 0.07
Net realized and unrealized gain (loss) on
investments, futures contracts and foreign
currency transactions 0.28 (3.49) (9.68) 2.33 2.49 (4.80)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from investment
operations $ 0.45 $ (3.38) $ (9.93) $ 2.33 $ 2.84 $ (4.73)
Distributions to shareowners:
Net investment income -- -- -- (0.00)(b) (0.04) --
Net realized gain -- -- -- (1.11) (0.73) --
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ 0.45 $ (3.38) $ (9.93) $ 1.22 $ 2.07 $ (4.73)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 20.33 $ 19.88 $ 23.26 $ 33.19 $ 31.97 $ 29.90
========= ========= ========= ========= ========= =========
Total return* 2.26% (14.53)% (29.92)% 7.35% 9.59% (13.66)%
Ratio of net expenses to average net assets+ 1.16%** 1.19% 1.20% 1.08% 1.12% 1.12%**
Ratio of net investment income (loss) to average
net assets+ 1.74%** 0.87% 0.53% (0.01)% 0.90% 0.95%**
Portfolio turnover rate 47%** 38% 116% 46% 60% 39%
Net assets, end of period (in thousands) $ 1,937 $ 2,164 $ 1,834 $ 2,953 $ 6,252 $ 7,738
Ratios with no waiver of management fees by PIM
and no reduction
for fees paid indirectly:
Net expenses 1.16%** 1.19% 1.20% 1.08% 1.12% 1.12%**
Net investment income (loss) 1.74%** 0.87% 0.53% (0.01)% 0.90% 0.95%**
Ratios with waiver of management fees by PIM and
reduction for fees paid
indirectly:
Net expenses 1.16%** 1.16% 1.19% 1.07% 1.12% 1.11%**
Net investment income 1.74%** 0.90% 0.54% 0.00% 0.90% 0.96%**
(a) The per share data presented above is based upon the average shares
outstanding for the year presented.
(b) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of distributions, and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26
Pioneer Europe Fund
NOTES TO FINANCIAL STATEMENTS 4/30/03 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Europe Fund (the Fund) is a Massachusetts business 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.
The Fund offers five classes of shares - Class A, Class B, Class C, Class R and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has equal rights to voting,
redemptions, dividends and liquidation, except that the level of transfer agent
and distribution fees may differ among classes. Class A, Class B, Class C and
Class R shareowners have exclusive voting rights with respect to the
distribution plan for each class. There is no distribution plan for Class Y
shares.
The Fund's financial statements have been prepared in conformity with accounting
principles generally accepted in the United States 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 Board
of Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the New York Stock Exchange. The
values of such securities used in
27
Pioneer Europe Fund
NOTES TO FINANCIAL STATEMENTS 4/30/03 (unaudited) (continued)
computing the net asset value of the Fund's shares are determined as of such
times. 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 is informed of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country rates.
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. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollar actually received. Further, the
effects of changes in foreign currency exchange rates on investments are not
segregated in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the time
a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to
28
Pioneer Europe Fund
meet the terms of the contract and from unanticipated movements in the
value of foreign currencies relative to the U.S. dollar. As of April 30,
2003, the Fund had no outstanding portfolio or settlement hedges.
D. Futures Contracts
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices and currency rates or to seek to increase
total return. Upon entering into a futures contract, the Fund is required to
deposit with a broker an amount of cash or securities equal to the minimum
"initial margin" requirements of the associated futures exchange. Subsequent
payments for futures contracts ("variation margin") are paid or received by
the Fund, depending on the daily fluctuation in the value of the contracts,
and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund realizes a gain or loss equal to the difference
between the opening and closing value of the contract. The use of futures
contracts involves, to varying degrees, elements of market and counterparty
risks which may exceed the amounts recognized by the Fund. Changes in value
of the contracts may not directly correlate to the changes in value of the
underlying securities. These risks may decrease the effectiveness of the
Fund's hedging strategies and potentially result in a loss.
As of April 30, 2003, the Fund had the following open futures contract:
Number of
Contracts Settlement Market Unrealized
Type Long Month Value Gain (Loss)
- ------------------- ----------- ------------ ------------- ------------
DJ EURO STOXX 50 200 June 2003 $5,126,978 $(76,621)
E. 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
29
Pioneer Europe Fund
NOTES TO FINANCIAL STATEMENTS 4/30/03 (unaudited) (continued)
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.
F. 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 $10,197 in underwriting commissions on the
sale of fund shares during the six months ended April 30, 2003.
G. 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 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.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned indirect subsidiary of
UniCredito Italiano. Management fees are calculated daily at the annual rate of
1.00% of the Fund's average daily net assets up to $300 million; 0.85% of the
next $200 million; and 0.75% of the excess over $500 million.
30
Pioneer Europe 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. At April 30, 2003, $153,252 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 $105,570 in transfer agent
fees payable to PIMSS at April 30, 2003.
4. Distribution and Service 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 average daily net assets attributable to Class A shares 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 $73,959 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 that agree to
provide certain services to retirement 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 plans.
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.
31
Pioneer Europe Fund
NOTES TO FINANCIAL STATEMENTS 4/30/03 (unaudited) (continued)
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
$82,110 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain 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 $1,950 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.
32
Pioneer Europe Fund
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
Marguerite A. Piret Joseph P. Barri, Secretary
Osbert M. Hood*
Stephen K. West
John Winthrop
Investment Adviser
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 Executive Vice President and Trustee of the Fund
on 4/30/03.
33
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
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
RETIREMENT PLANS FROM PIONEER
Pioneer has a long history of helping people work toward their retirement goals,
offering plans suited to the individual investor and businesses of all sizes.
For more information on Pioneer retirement plans, contact your investment
professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Accounts (IRAs)
Traditional IRA*
For anyone under age 701|M/2 earning income. Individuals can contribute up to
$3,000 annually. Earnings are tax-deferred, and contributions may be
tax-deductible.
Roth IRA*
Available to single individuals earning less than $110,000 in income annually,
and married couples with joint income less than $160,000. Contributions of up to
$3,000 a year are not tax-deductible, but all earnings are tax-free for
qualified withdrawals. Distributions are tax and penalty-free if certain
conditions are met.
Employer-Sponsored Plans
Uni-K Plan*
A 401(k) plan designed specifically for any business that employs only owners
and their spouses. Participants can make salary deferral contributions up to
$11,000 per year. In addition, each year the business may contribute up to 25%
of pay.
401(k) Plan*
Allows employees to make pre-tax contributions through payroll deduction, up to
$11,000 per year. Employers' contributions are discretionary. The 401(k) offers
companies maximum flexibility.
SIMPLE IRA Plan*
The Savings Incentive Match PLan for Employees (SIMPLE) is designed for
employers with 100 or fewer eligible employees. Employees can decide whether to
contribute. Employers must contribute.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
* Special Catch-Up Provisions are available to individuals age 50 and older to
contribute additional amounts to their retirement accounts. For more
information, call our Retirement Plans Information line at 1-800-622-0176.
36
403(b) Plan*
Also known as a Tax-Sheltered Account (TSA), this plan lets employees of public
schools, non-profit hospitals and other tax-exempt organizations make pre-tax
contributions through payroll deduction.
SEP-IRA
The Simplified Employee Pension (SEP) plan lets self-employed people and
small-business owners make tax-deductible contributions of up to 25% of income,
while maintaining complete contribution flexibility each year.
Profit Sharing Plan
Companies can decide each year whether - and how much - to contribute to
participants, up to 25% of each participant's pay. Can include vesting schedules
that are not available with a SEP-IRA.
Age-Based Profit Sharing Plan
Employer contributions are flexible, but are based on a formula using age and
salary. Each year, a business can contribute up to 25% of the total eligible
payroll.
Money Purchase Pension Plan (MPP)
Allows employer contributions, up to 25% of pay annually. Companies must
contribute a fixed percentage of pay each year.
Defined Benefit Pension Plan
Requires a business to contribute enough each year to fund a specific future
benefit. Most beneficial to older employees who need to accumulate assets
rapidly.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
* Special Catch-Up Provisions are available to individuals age 50 and older to
contribute additional amounts to their retirement accounts. For more
information, call our Retirement Plans Information line at 1-800-622-0176.
37
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@piog.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus.
[LOGO] PIONEER Investments(R)
Pioneer Investment Management, Inc.
60 State Street 13271-00-0603
Boston, Massachusetts 02109 (Copyright) 2003 Pioneer Funds Distributor, Inc.
www.pioneerfunds.com Underwriter of Pioneer mutual funds, Member
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 Europe 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.