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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 811-08657
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)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2012 through October 31, 2013
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Equity
Income Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2013
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PEQIX
Class B PBEQX
Class C PCEQX
Class K PEQKX*
Class R PQIRX
Class Y PYEQX
Class Z PEZQX
* Share class was first publicly offered on
December 20, 2012.
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 18
Schedule of Investments 20
Financial Statements 27
Notes to Financial Statements 38
Report of Independent Registered Public Accounting Firm 46
Trustees, Officers and Service Providers 47
Pioneer Equity Income Fund | Annual Report | 10/31/13 1
President's Letter
Dear Shareowner,
When we look at the U.S. economy heading into the final quarter of 2013, we
continue to see slow, but steady, growth. Employment has also been rising
steadily, but only modestly. Consumer incomes, savings, wealth, and
debt-servicing capacity have been solid buttresses for the recovering housing
and auto industries. Industrial activity is growing only modestly, but current
corporate profits are generally solid and balance sheets appear able to support
needed capital spending and dividend* payouts. The scaled-back "fiscal cliff "
tax increases and spending cuts have meaningfully cut the budget deficit without
driving the economy into recession. In addition, we feel that continuing slack
in labor markets and capacity utilization offers the potential for continuing
growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
hinted that it might begin scaling back its "QE" quantitative easing program
later in 2013 and could terminate its bond purchases altogether sometime in
2014. In September, however, the Fed surprised many market participants by
deciding not to start scaling back QE yet. The Fed has also said that short-term
interest rates are likely to remain near zero for some time to come, given that
inflation remains subdued and unemployment remains too high.
As September ended, Congress had not yet passed a continuing resolution to
prevent a government shutdown, nor had it raised the debt ceiling, and a quick
resolution to the impasse appeared unlikely. The U.S. government's partial
shutdown in October rattled the markets to a degree, but did not immediately
have a significant negative impact on the economy or capital markets.
There are certainly risks and uncertainties that continue to plague the global
economy as we head into the final months of the year. The European economy
remains weak, though it is beginning to show signs of stabilization, and a
number of countries in the emerging markets have experienced difficulties.
Still, a potential ending of the European recession, continuing economic
improvement in Japan in response to the new government's easing policies, and a
"soft landing" of 7% growth in China could very well result in an improving
global outlook over the remainder of 2013 and in 2014.
There are also geopolitical worries abroad and the aforementioned political
fights at home, and while most of the widely recognized risks we've outlined may
already be "priced into" the market, we believe investors should continue to
expect market volatility.
* Dividends are not guaranteed.
2 Pioneer Equity Income Fund | Annual Report | 10/31/13
The Fed's aggressive monetary policies and fears about economic growth had
helped drive long-term Treasury yields to unsustainably low levels; the return
to more normal levels has resulted in disappointing returns for bond investors
during the first nine months of 2013, but the stock market has delivered
double-digit returns to equity investors who were willing to brave the "wall of
worry".
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research in an effort to
identify undervalued individual securities, and using thoughtful risk management
to construct portfolios which seek to balance potential risks and reward in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These statements should not
be relied upon for any other purposes. Past performance is no guarantee of
future results, and there is no guarantee that market forecasts discussed will
be realized.
Pioneer Equity Income Fund | Annual Report | 10/31/13 3
Portfolio Management Discussion | 10/31/13
In the following interview, John Carey, Executive Vice President and Head of
U.S. Core Value at Pioneer Investments, discusses the investment environment
during the12-month period ended October 31, 2013, and Pioneer Equity Income
Fund's performance during the period. Mr. Carey is responsible for the
day-to-day management of Pioneer Equity Income Fund.
Q How would you describe the market for equities during the 12-month period
ended October 31, 2013, particularly for the types of equities deemed
appropriate for the Fund?
A The 12-month period ended October 31, 2013, saw strong upward movement in
United States share prices as measured by both the Russell 1000 Value Index,
the Fund's benchmark, and the Standard & Poor's 500 Index. Looking at a
chart of those two indices over the 12-month period, one sees that they
moved almost completely in parallel and that every couple of months or so,
in almost clock-like fashion, the indices saw a correction. After each
correction, the indices continued their upward climb, and the trend line for
shares prices as measured by the two indices was positive throughout the
period.
Some of the worries that appeared to cause the regular market sell-offs
during the period had to do with Federal Reserve (Fed) monetary policy,
debates in Washington, D.C., over the Federal budget and the national debt
ceiling, international tensions, particularly with respect to Syria, and the
occasional mixed signals coming from economic data releases. On the whole,
though, corporate earnings remained strong, the economy continued expanding,
and consumers kept spending, on everything from cars and houses to vacations
and clothing. In addition, dividends* provided support for share prices and
merger-and-acquisition activity sparked speculative interest in the stock
market. Each time the market dipped during the period, more investors seemed
to regard the dips as buying opportunities rather than as a sign to sell,
and share prices encouragingly bounced back. The 12-month period was in fact
almost a textbook example of a bullish stock market, and the shares of
companies held in the Fund's portfolio took part, right alongside the shares
of many other companies.
* Dividends are not guaranteed.
4 Pioneer Equity Income Fund | Annual Report | 10/31/13
Q How did the Fund perform in that environment during the 12-month period
ended October 31, 2013?
A Pioneer Equity Income Fund's Class A shares returned 26.52% at net asset
value during the 12-month period ended October 31, 2013, while the Fund's
benchmark, the Russell 1000 Value Index (the Russell Index), returned
28.29%. During the same period, the average return of the 388 mutual funds
in Lipper's Equity Income Funds category was 23.47%, and the average return
of the 1,187 mutual funds in Morningstar's Large-Cap Value Funds category
was 26.84%.
Q Could you please talk in more detail about the Fund's performance during the
12 months ended October 31, 2013? Please discuss the slight underperformance
of the Fund relative to its benchmark, the Russell Index.
A For the 12-month period as a whole, the Fund's positioning in the financials
sector cost the most in benchmark-relative performance. However, the
underperformance attributable to that positioning came during the first six
months of the period, and in the second six months the positioning actually
turned into a modest positive for performance, as some of the portfolio's
financials holdings did better. On the other hand, the relative overweight
in the portfolio to consumer staples and stock selection in that sector,
both of which had helped relative returns in the first half of the 12-month
period, turned into the largest source of negative relative returns in the
second half, as several of the portfolio's food-processing and
household-products companies faltered due to sluggish growth in their
overseas markets.
The most important positive contributor to the Fund's benchmark-relative
performance during the 12 month-period was the portfolio's investments in
energy--both its underweight to the meaningfully underperforming sector as
well as stock selection within the sector, particularly the very modest
exposure to the laggard stock of Exxon Mobil. Among other positive
contributors to Fund performance were six stocks that received premium
take-over bids over the course of the fiscal year. In the first half of the
period, those names included H.J. Heinz and D.E. Master Blenders, while
during the second half the companies in that favored category were Boise,
Molex, Kaydon, and Warner Chilcott.
Pioneer Equity Income Fund | Annual Report | 10/31/13 5
Q Could you please discuss the changes that you made to the Fund's portfolio
during the 12-month period ended October 31, 2013?
A We were active traders during the 12-month period, adding roughly three
dozen holdings to the portfolio and liquidating about two dozen. Just to
touch on a few examples: in consumer staples, while we saw two important
holdings, H.J. Heinz and D.E. Master Blenders, acquired by other companies,
we built back the portfolio's weighting in the sector by buying shares of
Procter & Gamble, PepsiCo, and General Mills. We enlarged the portfolio's
commitment to the materials sector by adding shares of the mining companies
BHP Billiton, Freeport-McMoRan, and Rio Tinto, even while selling Cleveland
Cliffs and Newmont Mining, which we regarded as less compelling participants
in the mining industry. Electrolux and InterContinental Hotels diversified
the Fund's exposure to the consumer-discretionary sector by adding,
respectively, a name in household durables and a name in hotels. Health care
showed numerous new portfolio entries over the course of the year, including
AbbVie, a spin-off from the Fund's holding of Abbott Laboratories, Cardinal
Health, Eli Lilly, and Zoetis, among others.
In the financials sector, we have had some difficulties finding companies
with what we regard as business stability that also provide reasonable
dividend income as well as possibilities for dividend growth. BB & T,
Swedbank, People's United Financial, and Northern Trust were four financials
stocks that we added during the Fund's fiscal year that we thought met those
qualifications. We continued to scour the information-technology sector for
portfolio investments during the 12-month period; that sector of late has
offered many more dividend-paying stocks than in former times. New portfolio
entries in information technology during the 12-month period included Apple,
Hewlett-Packard, Intel, Maxim Integrated Products, and NVIDIA.
Finally, we bolstered the Fund's holdings in utilities after
underperformance of the sector relative to the Russell Index appeared to
create some potentially attractive purchase opportunities. Among our
purchases in utilities were Northeast Utilities, Southern, Westar, and
American Water Works.
Sales from the portfolio during the 12-month comprised: several stocks that
we felt had reached fair value, including EQT, Home Depot, and Bank of
America; some holdings where we had come to question the companies'
6 Pioneer Equity Income Fund | Annual Report | 10/31/13
longer-term earnings potential, including Century Link, Cisco Systems, and
Unilever; and other holdings we just regarded as less attractive than
companies in which we wished to invest.
Q The Fund typically places an emphasis on dividend-paying stocks. Would you
describe the environment for dividends as positive or negative during the
12-month period ended October 31, 2013?
A With generally low interest rates on bank deposits and uncertain prospects
for bonds given the longer-term potential of rising interest rates,
investors continued to think about dividend-paying stocks as a way to
generate needed income. Fortunately, the changes to Federal tax laws at the
beginning of the calendar year with respect to tax treatment of dividends
were modest. Throughout the Fund's fiscal year companies did their part by
continuing to boost dividends as their earnings grew. And numerous financial
advisers and commentators kept a focus on dividends in the media and other
public forums. So, on the whole, the Fund's emphasis on dividends and
dividend-paying stocks kept the portfolio concentrated in the kinds of
stocks that appeared to be on investors' minds during the 12-month period.
Q With an eventful 2013 drawing to a close, what is your outlook for the U.S.
economy and the equity markets heading into 2014?
A As we write, investors have some worries about the contentious state of
affairs in Washington, D.C., and the possibility that the New Year could
bring renewed disagreement over the Federal budget and national debt. There
is also the likelihood that the Fed will slow ("taper") its purchases of
long-term Treasuries and mortgage-backed securities during the first half of
calendar 2014. Investors are unsure what a "natural" level of interest
rates--that is, a level of interest rates more determined by market forces
than by Fed interventions--might look like. While unemployment has come
down, it remains higher than it has usually been at this stage of an
economic recovery. Also unusual at this point in the economic cycle is the
continued cautiousness of business managers in regard to capital
expenditure. The Affordable Care Act, the new, national health-care program,
has got off to a rocky start and certainly so far has not provided any
discernible economic boost. Finally, the tense international situation,
especially in the Middle East, is a cause for concern as one looks at the
whole global picture.
Offsetting the worries are several sources of encouragement. Corporate
earnings continue to be impressive, and many companies appear now to be
achieving earnings growth not only through cost cutting but also by
increasing sales. Corporate balance sheets, while starting to show somewhat
Pioneer Equity Income Fund | Annual Report | 10/31/13 7
higher debt ratios, are still quite strong. Dividend income presents
investors with a potentially attractive way to supplement other income.
Also, as we compare economic prospects in the U.S. with those in other parts
of the world, we think that the U.S. markets will attract more foreign
investment, which could serve to buoy up domestic markets and provide more
capital for our companies to expand.
In summary, we would be surprised if we were to see in the next 12 months
the same kind of relatively smooth as well as substantial upward move in
share prices that we have experienced in these past 12 months. We think that
it might be prudent to expect more market turbulence as a result of some of
the issues we have listed. Most years have, in fact, been more varied with
respect to market activity; the 12-month period ended October 31, 2013, was
unusual in being so consistently rewarding. Nonetheless, we believe that the
investments in the Fund's portfolio have potential for further gains over
time; it is certainly the object of our research effort to identify
companies that we think have longer-term merit. We intend to keep the
portfolio of the Fund invested in a way that we think can withstand
pressures that may be exerted by movements in interest rates and shifts in
economic conditions, but of course we can offer no assurances that we shall
succeed in that effort.
Thank you for your support.
Please refer to the Schedule of Investments on pages 20-26 for a full listing of
Fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The portfolio invests in REIT securities, the value of which can fall for a
variety of reasons, such as declines in rental income, fluctuating interest
rates, poor property management, environmental liabilities, uninsured damage,
increased competition, or changes in real estate tax laws.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
These risks may increase share price volatility.
Past performance is no guarantee of future results, and there is no guarantee
that the market forecast discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. These opinions should not
be relied upon for any other purposes.
8 Pioneer Equity Income Fund | Annual Report | 10/31/13
Portfolio Summary | 10/31/13
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 88.1%
International Common Stocks 9.2%
Depositary Receipts for International Stocks 2.7%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Consumer Staples 15.8%
Financials 14.5%
Materials 12.5%
Health Care 12.0%
Utilities 11.5%
Information Technology 10.7%
Consumer Discretionary 6.8%
Industrials 6.7%
Energy 5.7%
Telecommunication Services 3.8%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. The Valspar Corp. 3.44%
--------------------------------------------------------------------------------
2. The Gorman-Rupp Co. 3.15
--------------------------------------------------------------------------------
3. The Hershey Co. 2.06
--------------------------------------------------------------------------------
4. US Bancorp/MN 1.92
--------------------------------------------------------------------------------
5. Cedar Fair LP 1.87
--------------------------------------------------------------------------------
6. Verizon Communications, Inc. 1.84
--------------------------------------------------------------------------------
7. Wells Fargo & Co. 1.79
--------------------------------------------------------------------------------
8. Swedbank AB 1.76
--------------------------------------------------------------------------------
9. Mondelez International, Inc. 1.74
--------------------------------------------------------------------------------
10. Kimberly-Clark Corp. 1.73
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
Pioneer Equity Income Fund | Annual Report | 10/31/13 9
Prices and Distributions | 10/31/13
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/13 10/31/12
--------------------------------------------------------------------------------
A $34.35 $27.96
--------------------------------------------------------------------------------
B $34.13 $27.77
--------------------------------------------------------------------------------
C $33.94 $27.64
--------------------------------------------------------------------------------
R $34.71 $28.24
--------------------------------------------------------------------------------
Y $34.62 $28.17
--------------------------------------------------------------------------------
Z $34.38 $27.98
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/13 12/20/12*
--------------------------------------------------------------------------------
K $34.38 $28.30
--------------------------------------------------------------------------------
Distributions per Share: 11/1/12-10/31/13
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.8897 $ -- $ --
--------------------------------------------------------------------------------
B $0.5303 $ -- $ --
--------------------------------------------------------------------------------
C $0.6701 $ -- $ --
--------------------------------------------------------------------------------
K $0.5800 $ -- $ --
--------------------------------------------------------------------------------
R $0.7865 $ -- $ --
--------------------------------------------------------------------------------
Y $0.9957 $ -- $ --
--------------------------------------------------------------------------------
Z $0.9521 $ -- $ --
--------------------------------------------------------------------------------
The Russell 1000 Value Index is an unmanaged index that measures the performance
of large-cap U.S. value stocks. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-17.
* Class K shares were first publicly offered on December 20, 2012.
10 Pioneer Equity Income Fund | Annual Report | 10/31/13
Performance Update | 10/31/13 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Equity Income Fund at public
offering price during the periods shown, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of October 31, 2013)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
10 Years 8.23% 7.59%
5 Years 12.75 12.73
1 Year 26.52 19.24
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2013,
as revised April 26, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.17%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
10/31/2003 $ 9,425 $ 10,000
10/31/2004 $ 10,963 $ 11,545
10/31/2005 $ 12,155 $ 12,915
10/31/2006 $ 14,782 $ 15,686
10/31/2007 $ 16,292 $ 17,386
10/31/2008 $ 11,406 $ 10,988
10/31/2009 $ 11,143 $ 11,514
10/31/2010 $ 13,412 $ 13,322
10/31/2011 $ 14,923 $ 14,143
10/31/2012 $ 16,428 $ 16,532
10/31/2013 $ 20,786 $ 21,209
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Equity Income Fund | Annual Report | 10/31/13 11
Performance Update | 10/31/13 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class B shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 7.21% 7.21%
5 Years 11.58 11.58
1 Year 25.14 21.14
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2013,
as revised April 26, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.27%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
10/31/2003 $ 10,000 $ 10,000
10/31/2004 $ 11,534 $ 11,545
10/31/2005 $ 12,675 $ 12,915
10/31/2006 $ 15,280 $ 15,686
10/31/2007 $ 16,701 $ 17,386
10/31/2008 $ 11,594 $ 10,988
10/31/2009 $ 11,216 $ 11,514
10/31/2010 $ 13,373 $ 13,322
10/31/2011 $ 14,725 $ 14,143
10/31/2012 $ 16,025 $ 16,532
10/31/2013 $ 20,054 $ 21,209
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
12 Pioneer Equity Income Fund | Annual Report | 10/31/13
Performance Update | 10/31/13 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 7.40% 7.40%
5 Years 11.90 11.90
1 Year 25.61 25.61
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2013,
as revised April 26, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.89%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
10/31/2003 $ 10,000 $ 10,000
10/31/2004 $ 11,540 $ 11,545
10/31/2005 $ 12,692 $ 12,915
10/31/2006 $ 15,313 $ 15,686
10/31/2007 $ 16,749 $ 17,386
10/31/2008 $ 11,636 $ 10,988
10/31/2009 $ 11,274 $ 11,514
10/31/2010 $ 13,468 $ 13,322
10/31/2011 $ 14,876 $ 14,143
10/31/2012 $ 16,253 $ 16,532
10/31/2013 $ 20,415 $ 21,209
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Equity Income Fund | Annual Report | 10/31/13 13
Performance Update | 10/31/13 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class K shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 8.27% 8.27%
5 Years 12.84 12.84
1 Year 27.00 27.00
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2013,
as revised April 26, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.69%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
10/31/2003 $ 10,000 $ 10,000
10/31/2004 $ 11,633 $ 11,545
10/31/2005 $ 12,898 $ 12,915
10/31/2006 $ 15,685 $ 15,686
10/31/2007 $ 17,288 $ 17,386
10/31/2008 $ 12,103 $ 10,988
10/31/2009 $ 11,824 $ 11,514
10/31/2010 $ 14,231 $ 13,322
10/31/2011 $ 15,834 $ 14,143
10/31/2012 $ 17,431 $ 16,532
10/31/2013 $ 22,137 $ 21,209
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class K shares for the period prior to the
commencement of operations of Class K shares on December 20, 2012, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are higher
than those of Class K shares, the performance of Class K shares prior to their
inception on December 20, 2012, would have been higher than the performance
shown. For the period beginning December 20, 2012, the actual performance of
Class K shares is reflected. Class K shares are not subject to sales charges and
are available for limited groups of eligible investors, including institutional
investors. All results are historical and assume the reinvestment of dividends
and capital gains.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14 Pioneer Equity Income Fund | Annual Report | 10/31/13
Performance Update | 10/31/13 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 8.00% 8.00%
5 Years 12.44 12.44
1 Year 26.13 26.13
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2013,
as revised April 26, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.44%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
10/31/2003 $ 10,000 $ 10,000
10/31/2004 $ 11,622 $ 11,545
10/31/2005 $ 12,858 $ 12,915
10/31/2006 $ 15,611 $ 15,686
10/31/2007 $ 17,187 $ 17,386
10/31/2008 $ 12,008 $ 10,988
10/31/2009 $ 11,708 $ 11,514
10/31/2010 $ 14,052 $ 13,322
10/31/2011 $ 15,592 $ 14,143
10/31/2012 $ 17,114 $ 16,532
10/31/2013 $ 21,586 $ 21,209
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class R shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Equity Income Fund | Annual Report | 10/31/13 15
Performance Update | 10/31/13 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 8.68% 8.68%
5 Years 13.23 13.23
1 Year 26.98 26.98
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2013,
as revised April 26, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.80%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Equity Income Fund Russell 1000 Value Index
10/31/2003 $ 5,000,000 $ 5,000,000
10/31/2004 $ 5,844,217 $ 5,772,664
10/31/2005 $ 6,505,155 $ 6,457,585
10/31/2006 $ 7,942,508 $ 7,843,183
10/31/2007 $ 8,788,743 $ 8,692,906
10/31/2008 $ 6,177,258 $ 5,494,112
10/31/2009 $ 6,063,188 $ 5,756,994
10/31/2010 $ 7,335,228 $ 6,661,210
10/31/2011 $ 8,195,891 $ 7,071,579
10/31/2012 $ 9,053,713 $ 8,266,016
10/31/2013 $11,495,917 $10,604,391
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
16 Pioneer Equity Income Fund | Annual Report | 10/31/13
Performance Update | 10/31/13 Class Z Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class Z shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 8.46% 8.46%
5 Years 13.12 13.12
1 Year 26.80 26.80
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2013,
as revised April 26, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
10/31/2003 $ 10,000 $ 10,000
10/31/2004 $ 11,633 $ 11,545
10/31/2005 $ 12,898 $ 12,915
10/31/2006 $ 15,685 $ 15,686
10/31/2007 $ 17,314 $ 17,386
10/31/2008 $ 12,162 $ 10,988
10/31/2009 $ 11,934 $ 11,514
10/31/2010 $ 14,421 $ 13,322
10/31/2011 $ 16,103 $ 14,143
10/31/2012 $ 17,764 $ 16,532
10/31/2013 $ 22,525 $ 21,209
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for Class Z shares for periods prior to the inception of Class
Z shares on July 6, 2007, is the net asset value performance of the Fund's Class
A shares. The performance does not reflect differences in expenses, including
the Rule 12b-1 fees applicable to Class A shares. Since fees for Class A shares
are generally higher than those of Class Z shares, the performance for Class Z
shares prior to their inception on July 6, 2007, would have been higher than the
performance shown. For the period beginning July 6, 2007, the actual performance
of Class Z shares is reflected. Class Z shares are not subject to sales charges
and are available for limited groups of eligible investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Equity Income Fund | Annual Report | 10/31/13 17
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from May 1, 2013, through October 31, 2013.
-----------------------------------------------------------------------------------------------------
Share Class A B C K R Y Z
-----------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/13
-----------------------------------------------------------------------------------------------------
Ending Account $1,092.67 $1,080.84 $1,088.47 $1,102.31 $1,091.00 $1,094.66 $1,093.95
Value (after
expenses) on
10/31/13
-----------------------------------------------------------------------------------------------------
Expenses Paid $ 5.96 $ 11.80 $ 9.84 $ 3.66 $ 7.59 $ 4.17 $ 4.75
During Period*
-----------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying Funds. These combined totals were 1.13%, 2.25%,
1.87%, 0.69% 1.44%, 0.79%, and 0.90% for Class A, Class B, Class C, Class K,
Class R, Class Y and Class Z shares, respectively, multiplied by the average
account value over the period, multiplied by 184/365 (to reflect the
one-half year period).
18 Pioneer Equity Income Fund | Annual Report | 10/31/13
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2013, through October 31, 2013.
-----------------------------------------------------------------------------------------------------
Share Class A B C K R Y Z
-----------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/13
-----------------------------------------------------------------------------------------------------
Ending Account $1,019.51 $1,013.86 $1,015.78 $1,021.73 $1,017.95 $1,021.22 $1,020.67
Value (after
expenses) on
10/31/13
-----------------------------------------------------------------------------------------------------
Expenses Paid $ 5.75 $ 11.42 $ 9.50 $ 3.52 $ 7.32 $ 4.02 $ 4.58
During Period*
-----------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio plus the expense
ratios of the underlying Funds. These combined totals were 1.13%, 2.25%,
1.87%, 0.69% 1.44%, 0.79%, and 0.90% for Class A, Class B, Class C, Class K,
Class R, Class Y and Class Z shares, respectively, multiplied by the average
account value over the period, multiplied by 184/365 (to reflect the
one-half year period).
Pioneer Equity Income Fund | Annual Report | 10/31/13 19
Schedule of Investments | 10/31/13
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
COMMON STOCKS -- 99.9%
ENERGY -- 5.8%
Oil & Gas Drilling -- 0.6%
200,000 Seadrill, Ltd. $ 9,324,000
------------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.2%
29,400 Chevron Corp. $ 3,526,824
150,000 Occidental Petroleum Corp. 14,412,000
--------------
$ 17,938,824
------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.7%
139,160 ConocoPhillips $ 10,200,428
426,800 Marathon Oil Corp. 15,048,968
--------------
$ 25,249,396
------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.1%
224,000 Marathon Petroleum Corp. * $ 16,051,840
------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.2%
483,800 Spectra Energy Corp. $ 17,208,766
--------------
Total Energy $ 85,772,826
------------------------------------------------------------------------------------
MATERIALS -- 12.5%
Commodity Chemicals -- 1.4%
271,000 LyondellBasell Industries NV $ 20,216,600
------------------------------------------------------------------------------------
Diversified Chemicals -- 0.7%
110,000 EI du Pont de Nemours & Co. $ 6,732,000
100,000 The Dow Chemical Co. 3,947,000
--------------
$ 10,679,000
------------------------------------------------------------------------------------
Specialty Chemicals -- 4.6%
5,000 Givaudan SA $ 7,110,130
200,454 Johnson Matthey Plc 9,664,127
730,300 The Valspar Corp. 51,099,090
--------------
$ 67,873,347
------------------------------------------------------------------------------------
Paper Packaging -- 0.6%
227,500 Sonoco Products Co. $ 9,245,600
------------------------------------------------------------------------------------
Diversified Metals & Mining -- 4.5%
280,000 BHP Billiton, Ltd. (A.D.R.) $ 19,793,200
255,100 Compass Minerals International, Inc. 18,997,297
600,000 Freeport-McMoRan Copper & Gold, Inc. 22,056,000
120,000 Rio Tinto Plc (A.D.R.) 6,084,000
--------------
$ 66,930,497
------------------------------------------------------------------------------------
Paper Products -- 0.7%
233,100 International Paper Co. $ 10,398,591
--------------
Total Materials $ 185,343,635
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Annual Report | 10/31/13
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
CAPITAL GOODS -- 4.9%
Industrial Conglomerates -- 1.7%
959,984 General Electric Co. $ 25,093,982
------------------------------------------------------------------------------------
Industrial Machinery -- 3.2%
1,146,943 The Gorman-Rupp Co.+ $ 46,726,458
--------------
Total Capital Goods $ 71,820,440
------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.9%
Office Services & Supplies -- 0.6%
202,600 Mine Safety Appliances Co. $ 9,757,216
------------------------------------------------------------------------------------
Diversified Support Services -- 1.3%
300,000 G&K Services, Inc. $ 18,720,000
--------------
Total Commercial Services & Supplies $ 28,477,216
------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.5%
Automobile Manufacturers -- 1.5%
1,333,200 Ford Motor Co. $ 22,811,052
--------------
Total Automobiles & Components $ 22,811,052
------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.7%
Household Appliances -- 0.7%
400,000 Electrolux AB $ 9,890,356
--------------
Total Consumer Durables & Apparel $ 9,890,356
------------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.7%
Hotels, Resorts & Cruise Lines -- 0.8%
330,776 InterContinental Hotels Group Plc $ 9,645,770
69,224 InterContinental Hotels Group Plc (A.D.R.) 2,031,724
--------------
$ 11,677,494
------------------------------------------------------------------------------------
Leisure Facilities -- 1.9%
607,087 Cedar Fair LP $ 27,834,939
--------------
Total Consumer Services $ 39,512,433
------------------------------------------------------------------------------------
MEDIA -- 1.0%
Movies & Entertainment -- 0.6%
450,000 Regal Entertainment Group $ 8,554,500
------------------------------------------------------------------------------------
Publishing -- 0.4%
114,100 John Wiley & Sons, Inc. $ 5,738,089
--------------
Total Media $ 14,292,589
------------------------------------------------------------------------------------
RETAILING -- 1.0%
Distributors -- 1.0%
188,800 Genuine Parts Co. $ 14,883,104
--------------
Total Retailing $ 14,883,104
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/13 21
Schedule of Investments | 10/31/13 (continued)
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.4%
Food Retail -- 0.4%
1,000,000 J Sainsbury Plc $ 6,331,330
--------------
Total Food & Staples Retailing $ 6,331,330
------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 11.7%
Soft Drinks -- 1.6%
353,400 Dr. Pepper Snapple Group, Inc. $ 16,733,490
90,700 PepsiCo, Inc. 7,626,963
--------------
$ 24,360,453
------------------------------------------------------------------------------------
Packaged Foods & Meats -- 10.1%
443,300 Campbell Soup Co. $ 18,871,281
170,000 General Mills, Inc. 8,571,400
457,800 Hillshire Brands Co. 15,029,574
62,191 John B Sanfilippo & Son, Inc. 1,528,655
280,000 Kellogg Co. 17,710,000
450,600 Kraft Foods Group, Inc. 24,503,628
100,000 McCormick & Co., Inc. 6,915,000
769,000 Mondelez International, Inc. 25,869,160
308,900 The Hershey Co. 30,655,236
--------------
$ 149,653,934
--------------
Total Food, Beverage & Tobacco $ 174,014,387
------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 3.6%
Household Products -- 3.6%
238,500 Kimberly-Clark Corp. $ 25,758,000
222,400 The Clorox Co. 20,058,256
100,000 The Procter & Gamble Co. 8,075,000
--------------
$ 53,891,256
--------------
Total Household & Personal Products $ 53,891,256
------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.5%
Health Care Equipment -- 3.8%
313,900 Abbott Laboratories $ 11,473,045
244,100 Becton Dickinson and Co. 25,662,233
104,700 Medtronic, Inc. 6,009,780
1,079,500 Smith & Nephew Plc 13,807,942
--------------
$ 56,953,000
------------------------------------------------------------------------------------
Health Care Distributors -- 1.7%
100,000 Cardinal Health, Inc. $ 5,866,000
509,300 Owens & Minor, Inc. 19,058,006
--------------
$ 24,924,006
--------------
Total Health Care Equipment & Services $ 81,877,006
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Annual Report | 10/31/13
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 6.5%
Pharmaceuticals -- 6.5%
313,900 AbbVie, Inc. $ 15,208,455
100,000 AstraZeneca Plc (A.D.R.) 5,286,000
259,300 Eli Lilly & Co. 12,918,326
251,700 Johnson & Johnson 23,309,937
353,405 Merck & Co., Inc. 15,935,031
75,000 Novartis AG (A.D.R.) 5,816,250
426,645 Pfizer, Inc. 13,089,469
149,269 Zoetis, Inc. 4,725,857
--------------
$ 96,289,325
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 96,289,325
------------------------------------------------------------------------------------
BANKS -- 11.8%
Diversified Banks -- 8.0%
219,400 Bank of Montreal $ 15,292,180
267,000 Canadian Imperial Bank of Commerce 22,729,402
1,000,000 Swedbank AB 26,116,722
761,700 US Bancorp/MN 28,457,112
622,400 Wells Fargo & Co. 26,570,256
--------------
$ 119,165,672
------------------------------------------------------------------------------------
Regional Banks -- 2.1%
427,900 BB&T Corp. $ 14,535,763
220,800 The PNC Financial Services Group, Inc. 16,235,424
--------------
$ 30,771,187
------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.7%
1,028,800 New York Community Bancorp, Inc. $ 16,676,848
530,000 People's United Financial, Inc. 7,647,900
--------------
$ 24,324,748
--------------
Total Banks $ 174,261,607
------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.8%
Asset Management & Custody Banks -- 0.8%
277,100 Federated Investors, Inc. (Class B) $ 7,514,952
65,000 Northern Trust Corp. 3,667,300
--------------
$ 11,182,252
--------------
Total Diversified Financials $ 11,182,252
------------------------------------------------------------------------------------
INSURANCE -- 1.8%
Property & Casualty Insurance -- 1.8%
185,587 The Chubb Corp. $ 17,088,851
105,000 The Travelers Companies, Inc. 9,061,500
--------------
$ 26,150,351
--------------
Total Insurance $ 26,150,351
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/13 23
Schedule of Investments | 10/31/13 (continued)
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
REAL ESTATE -- 0.3%
Office REIT -- 0.3%
68,671 Alexandria Real Estate Equities, Inc. $ 4,517,178
--------------
Total Real Estate $ 4,517,178
------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.5%
IT Consulting & Other Services -- 0.6%
125,000 Leidos Holdings, Inc. $ 5,886,250
71,428 Science Applications International Corp. 2,517,837
--------------
$ 8,404,087
------------------------------------------------------------------------------------
Systems Software -- 0.9%
400,000 Microsoft Corp. $ 14,140,000
--------------
Total Software & Services $ 22,544,087
------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 2.1%
Computer Hardware -- 0.5%
8,100 Apple, Inc. $ 4,231,035
125,000 Hewlett-Packard Co. 3,046,250
--------------
$ 7,277,285
------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 1.1%
419,300 Molex, Inc. $ 16,143,050
------------------------------------------------------------------------------------
Technology Distributors -- 0.5%
96,000 Anixter International, Inc.* $ 8,207,040
--------------
Total Technology Hardware & Equipment $ 31,627,375
------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 7.1%
Semiconductor Equipment -- 0.2%
86,033 Cabot Microelectronics Corp.* $ 3,517,889
------------------------------------------------------------------------------------
Semiconductors -- 6.9%
448,700 Analog Devices, Inc. $ 22,120,910
580,000 Intel Corp. 14,169,400
303,300 Linear Technology Corp. 12,477,762
200,000 Maxim Integrated Products, Inc. 5,940,000
550,500 Microchip Technology, Inc. 23,649,480
500,000 NVIDIA Corp. 7,590,000
354,200 Xilinx, Inc. 16,087,764
--------------
$ 102,035,316
--------------
Total Semiconductors & Semiconductor Equipment $ 105,553,205
------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.3%
Integrated Telecommunication Services -- 3.3%
396,900 AT&T, Inc. $ 14,367,780
2,400,000 Singapore Telecommunications, Ltd. 7,306,995
541,584 Verizon Communications, Inc. 27,355,408
--------------
$ 49,030,183
--------------
Total Telecommunication Services $ 49,030,183
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Annual Report | 10/31/13
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
UTILITIES -- 11.5%
Electric Utilities -- 4.0%
287,150 American Electric Power Co., Inc. $ 13,450,106
182,600 Duke Energy Corp. 13,097,898
119,900 NextEra Energy, Inc. 10,161,525
200,000 Northeast Utilities 8,578,000
200,000 The Southern Co. 8,182,000
200,000 Westar Energy, Inc. 6,322,000
--------------
$ 59,791,529
------------------------------------------------------------------------------------
Gas Utilities -- 3.4%
370,500 AGL Resources, Inc. $ 17,732,130
239,700 National Fuel Gas Co. 17,150,535
655,000 Questar Corp. 15,497,300
--------------
$ 50,379,965
------------------------------------------------------------------------------------
Multi-Utilities -- 3.5%
295,000 Alliant Energy Corp. $ 15,404,900
498,500 Ameren Corp. 18,035,730
324,372 Consolidated Edison, Inc. 18,884,938
--------------
$ 52,325,568
------------------------------------------------------------------------------------
Water Utilities -- 0.6%
200,000 American Water Works Co, Inc. $ 8,574,000
--------------
Total Utilities $ 171,071,062
------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,056,298,220) $1,481,144,255
------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.9%
(Cost $1,056,298,220) (a) $1,481,144,255
------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.1% $ 1,161,503
------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,482,305,758
====================================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipts.
REIT Real Estate Investment Trust.
+ Investment held by the Fund representing 5% or more of the
outstanding voting stock of such company. See Notes to Financial
Statements - Note 7.
(a) At October 31, 2013, the net unrealized appreciation on
investments based on cost for federal income tax purposes of
$1,042,052,993 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $444,504,539
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (5,413,277)
------------
Net unrealized appreciation $439,091,262
============
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/13 25
Schedule of Investments | 10/31/13 (continued)
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2013 aggregated $461,453,510 and $348,902,092,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes to
Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services) as Level 3.
The following is a summary of the inputs used as of October 31, 2013, in valuing
the Fund's investments:
-------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------
Common Stocks $1,481,144,255 $ -- $ -- $1,481,144,255
-------------------------------------------------------------------------------
Total $1,481,144,255 $ -- $ -- $1,481,144,255
===============================================================================
During the year ended October 31, 2013, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Annual Report | 10/31/13
Statement of Assets and Liabilities | 10/31/13
ASSETS:
Investment in securities of unaffilitated issuers, at value
(cost $1,048,971,878) $1,434,417,797
Investment in securities of affiliated issuers, at value (cost $7,326,342) 46,726,458
---------------------------------------------------------------------------------------------
Total investments in securities, at value (cost $1,056,298,220) $1,481,144,255
Cash 7,756,542
Foreign currency (cost $189,910) 198,767
Receivables --
Investment securities sold
Fund shares sold 2,504,658
Dividends 2,543,227
Other 81,733
---------------------------------------------------------------------------------------------
Total assets $1,494,229,182
=============================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 9,055,829
Fund shares repurchased 2,360,105
Due to affiliates 422,246
Accrued expenses 85,244
---------------------------------------------------------------------------------------------
Total liabilities $ 11,923,424
=============================================================================================
NET ASSETS:
Paid-in capital $ 991,258,136
Undistributed net investment income 17,077,953
Accumulated net realized loss on investments 49,112,806
Net unrealized appreciation on investments 424,846,035
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 10,828
---------------------------------------------------------------------------------------------
Total net assets $1,482,305,758
=============================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $826,038,628/24,051,178 shares) $ 34.35
Class B (based on $13,779,141/403,735 shares) $ 34.13
Class C (based on $104,890,162/3,090,473 shares) $ 33.94
Class K (based on $117,128/3,407 shares) $ 34.38
Class R (based on $85,986,375/2,477,635 shares) $ 34.71
Class Y (based on $448,509,113/12,957,072 shares) $ 34.62
Class Z (based on $2,985,211/86,833 shares) $ 34.38
MAXIMUM OFFERING PRICE:
Class A ($34.35 (divided by) 94.25%) $ 36.45
=============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/13 27
Statement of Operations
For the Year Ended 10/31/13
INVESTMENT INCOME:
Dividends (including income from affiliated issuers of $114,694
and net of foreign tax withheld of $538,634) $ 46,424,246
Interest 2,073
------------------------------------------------------------------------------------------------
Total investment income $ 46,426,319
------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 8,016,832
Transfer agent fees and expenses
Class A 524,094
Class B 61,863
Class C 51,909
Class R 5,276
Class Y 4,050
Class Z 837
Distribution fees
Class A 1,890,130
Class B 148,539
Class C 894,899
Class R 410,074
Shareholder communications expense 1,624,939
Administrative reimbursement 393,455
Custodian fees 38,059
Registration fees 132,187
Professional fees 95,031
Printing expense 44,357
Fees and expenses of nonaffiliated Trustees 49,372
Miscellaneous 45,679
------------------------------------------------------------------------------------------------
Total expenses $ 14,431,582
------------------------------------------------------------------------------------------------
Net investment income $ 31,994,737
================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on:
Investments $104,012,794
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 238,045 $104,250,839
------------------------------------------------------------------------------------------------
Change in net unrealized appreciation on:
Investments $177,481,041
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 10,278 $177,491,319
------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $281,742,158
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $313,736,895
================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Annual Report | 10/31/13
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/13 10/31/12
-----------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 31,994,737 $ 44,080,099
Net realized gain on investments and foreign
currency transactions 104,250,839 102,609,879
Change in net unrealized appreciation (depreciation) on
investments and foreign currency transactions 177,491,319 (37,741,913)
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 313,736,895 $ 108,948,065
-----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.89 and $0.84 per share, respectively) $ (21,599,528) $ (20,733,747)
Class B ($0.53 and $0.53 per share, respectively) (276,158) (362,646)
Class C ($0.67 and $0.65 per share, respectively) (1,907,977) (1,772,601)
Class K ($0.58 and $0.00 per share, respectively) (604) --
Class R ($0.79 and $0.76 per share, respectively) (2,064,799) (2,287,440)
Class Y ($1.00 and $0.93 per share, respectively) (12,526,595) (9,837,012)
Class Z ($0.95 and $0.90 per share, respectively) (75,793) (61,864)
-----------------------------------------------------------------------------------------------
Total distributions to shareowners $ (38,451,454) $ (35,055,310)
-----------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 364,605,306 $ 279,258,877
Reinvestment of distributions 33,710,949 29,753,217
Cost of shares repurchased (368,582,013) (246,592,051)
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 29,734,242 $ 62,420,043
-----------------------------------------------------------------------------------------------
Net increase in net assets $ 305,019,683 $ 136,312,798
NET ASSETS:
Beginning of year 1,177,286,075 1,040,973,277
-----------------------------------------------------------------------------------------------
End of year $1,482,305,758 $1,177,286,075
-----------------------------------------------------------------------------------------------
Undistributed net investment income $ 17,077,953 $ 22,989,224
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/13 29
Statements of Changes in Net Assets (continued)
-----------------------------------------------------------------------------------------------------
'13 Shares '13 Amount '12 Shares '12 Amount
-----------------------------------------------------------------------------------------------------
Class A
Shares sold 5,532,427 $ 169,199,449 4,797,702 $ 130,166,656
Reinvestment of distributions 686,669 20,628,412 702,510 19,113,473
Less shares repurchased (6,463,743) (198,413,459) (5,258,739) (143,878,140)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) (244,647) $ (8,585,598) 241,473 $ 5,401,989
=====================================================================================================
Class B
Shares sold or exchanged 29,611 $ 899,348 48,972 $ 1,321,876
Reinvestment of distributions 8,981 261,420 12,690 342,580
Less shares repurchased (215,827) (6,589,536) (316,454) (8,521,967)
-----------------------------------------------------------------------------------------------------
Net decrease (177,235) $ (5,428,768) (254,792) $ (6,857,511)
=====================================================================================================
Class C
Shares sold 888,119 $ 27,428,798 642,057 $ 17,278,593
Reinvestment of distributions 45,013 1,329,232 44,420 1,196,619
Less shares repurchased (636,045) (19,429,355) (621,179) (16,701,282)
-----------------------------------------------------------------------------------------------------
Net increase 297,087 $ 9,328,675 65,298 $ 1,773,930
=====================================================================================================
Class K*
Shares sold 3,409 $ 110,538 -- $ --
Reinvestment of distributions 12 399 -- --
Less shares repurchased (14) (440) -- --
-----------------------------------------------------------------------------------------------------
Net increase 3,407 $ 110,497 -- $ --
=====================================================================================================
Class R
Shares sold 461,884 $ 14,577,627 676,519 $ 18,362,330
Reinvestment of distributions 67,038 2,025,420 81,851 2,248,710
Less shares repurchased (868,818) (26,998,223) (896,312) (24,682,037)
-----------------------------------------------------------------------------------------------------
Net decrease (339,896) $ (10,395,176) (137,942) $ (4,070,997)
=====================================================================================================
Class Y
Shares sold 4,883,671 $ 150,372,803 4,053,760 $ 110,897,090
Reinvestment of distributions 308,981 9,390,594 247,623 6,790,042
Less shares repurchased (3,686,500) (114,975,277) (1,897,740) (52,293,684)
-----------------------------------------------------------------------------------------------------
Net increase 1,506,152 $ 44,788,120 2,403,643 $ 65,393,448
=====================================================================================================
Class Z
Shares sold 63,513 $ 2,016,743 44,663 $ 1,232,332
Reinvestment of distributions 2,517 75,472 2,256 61,793
Less shares repurchased (70,444) (2,175,723) (18,763) (514,941)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) (4,414) $ (83,508) 28,156 $ 779,184
=====================================================================================================
* Class K shares were first publicly offered on December 20, 2012.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Annual Report | 10/31/13
Financial Highlights
----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
----------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 27.96 $ 26.19 $ 23.92 $ 20.24 $ 21.28
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.75 $ 1.05 $ 0.48 $ 0.46 $ 0.58
Net realized and unrealized gain (loss) on investments 6.53 1.56 2.20 3.63 (1.12)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 7.28 $ 2.61 $ 2.68 $ 4.09 $ (0.54)
----------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.89) (0.84) (0.41) (0.40) (0.50)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 6.39 $ 1.77 $ 2.27 $ 3.69 $ (1.04)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.35 $ 27.96 $ 26.19 $ 23.92 $ 20.24
================================================================================================================
Total return* 26.52% 10.09% 11.26% 20.36% (2.30)%
Ratio of net expenses to average net assets+ 1.10% 1.14% 1.15% 1.19% 1.23%
Ratio of net investment income to average net assets+ 2.39% 3.86% 1.78% 1.93% 2.98%
Portfolio turnover rate 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $826,039 $679,254 $630,087 $606,693 $566,439
Ratios with reduction for fees paid indirectly:
Total expenses 1.10% 1.14% 1.15% 1.19% 1.23%
Net investment income 2.39% 3.86% 1.78% 1.93% 2.98%
================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/13 31
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
----------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 27.77 $ 26.02 $ 23.77 $ 20.10 $ 21.14
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.58 $ 0.97 $ 0.43 $ 0.38 $ 0.51
Net realized and unrealized gain (loss) on investments 6.31 1.31 1.97 3.47 (1.23)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 6.89 $ 2.28 $ 2.40 $ 3.85 $ (0.72)
----------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.53) (0.53) (0.15) (0.18) (0.32)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 6.36 $ 1.75 $ 2.25 $ 3.67 $ (1.04)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.13 $ 27.77 $ 26.02 $ 23.77 $ 20.10
================================================================================================================
Total return* 25.14% 8.83% 10.12% 19.23% (3.26)%
Ratio of net expenses to average net assets+ 2.22% 2.24% 2.17% 2.17% 2.20%
Ratio of net investment income to average net assets+ 1.33% 2.81% 0.78% 0.98% 2.08%
Portfolio turnover rate 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $13,779 $16,136 $21,744 $32,604 $ 42,950
Ratios with reduction for fees paid indirectly:
Total expenses 2.22% 2.24% 2.17% 2.17% 2.20%
Net investment income 1.33% 2.81% 0.78% 0.98% 2.08%
================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Annual Report | 10/31/13
----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
----------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 27.64 $ 25.91 $ 23.66 $ 20.01 $ 21.04
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.47 $ 0.84 $ 0.27 $ 0.32 $ 0.47
Net realized and unrealized gain (loss) on investments 6.50 1.54 2.20 3.55 (1.16)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 6.97 $ 2.38 $ 2.47 $ 3.87 $ (0.69)
----------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.67) (0.65) (0.22) (0.22) (0.34)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 6.30 $ 1.73 $ 2.25 $ 3.65 $ (1.03)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.94 $ 27.64 $ 25.91 $ 23.66 $ 20.01
================================================================================================================
Total return* 25.61% 9.26% 10.45% 19.46% (3.11)%
Ratio of net expenses to average net assets+ 1.84% 1.86% 1.91% 1.96% 2.04%
Ratio of net investment income to average net assets+ 1.62% 3.13% 1.02% 1.17% 2.21%
Portfolio turnover rate 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $104,890 $77,219 $70,683 $66,536 $68,719
Ratios with reduction for fees paid indirectly:
Total expenses 1.84% 1.86% 1.91% 1.96% 2.04%
Net investment income 1.62% 3.13% 1.02% 1.17% 2.21%
================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/13 33
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------
12/20/12 (a)
to 10/31/13
---------------------------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $28.30
---------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.03
Net realized and unrealized gain (loss) on investments 6.63
---------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 6.66
---------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.58)
---------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 6.08
---------------------------------------------------------------------------------------------------
Net asset value, end of period $34.38
===================================================================================================
Total return* 23.72%(b)
Ratio of net expenses to average net assets+ 0.66%**
Ratio of net investment income to average net assets+ 1.84%**
Portfolio turnover rate 26%
Net assets, end of period (in thousands) $ 117
Ratios with reduction for fees paid indirectly:
Total expenses 0.66%**
Net investment income 1.84%**
===================================================================================================
(a) Class K shares were first publicly offered on December 20, 2012.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Equity Income Fund | Annual Report | 10/31/13
----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
----------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 28.24 $ 26.45 $ 24.14 $ 20.43 $ 21.45
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.72 $ 1.03 $ 0.36 $ 0.44 $ 0.49
Net realized and unrealized gain (loss) on investments 6.54 1.52 2.28 3.62 (1.07)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 7.26 $ 2.55 $ 2.64 $ 4.07 $ (0.58)
----------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.79) (0.76) (0.33) (0.35) (0.44)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 6.47 $ 1.79 $ 2.31 $ 3.72 $ (1.02)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.71 $ 28.24 $ 26.45 $ 24.14 $ 20.43
================================================================================================================
Total return* 26.13% 9.76% 10.96% 20.03% (2.50)%
Ratio of net expenses to average net assets+ 1.41% 1.41% 1.48% 1.44% 1.44%
Ratio of net investment income to average net assets+ 2.09% 3.62% 1.46% 1.68% 2.71%
Portfolio turnover rate 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $85,986 $79,557 $78,159 $67,450 $68,904
Ratios with reduction for fees paid indirectly:
Total expenses 1.41% 1.41% 1.48% 1.44% 1.44%
Net investment income 2.09% 3.62% 1.46% 1.68% 2.71%
================================================================================================================
* 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/13 35
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
-----------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 28.17 $ 26.38 $ 24.09 $ 20.37 $ 21.41
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.78 $ 1.05 $ 0.44 $ 0.49 $ 0.42
Net realized and unrealized gain (loss) on investments 6.67 1.67 2.37 3.74 (0.87)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 7.45 $ 2.72 $ 2.81 $ 4.22 $ (0.45)
-----------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (1.00) (0.93) (0.52) (0.51) (0.59)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 6.45 $ 1.79 $ 2.29 $ 3.71 $ (1.04)
-----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.62 $ 28.17 $ 26.38 $ 24.09 $ 20.37
=================================================================================================================
Total return* 26.98% 10.47% 11.73% 20.98% (1.85)%
Ratio of net expenses to average net assets+ 0.76% 0.77% 0.75% 0.72% 0.75%
Ratio of net investment income to average net assets+ 2.68% 4.20% 2.16% 2.38% 3.10%
Portfolio turnover rate 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $448,509 $322,567 $238,647 $148,995 $110,148
Ratios with reduction for fees paid indirectly:
Total expenses 0.76% 0.77% 0.75% 0.72% 0.75%
Net investment income 2.68% 4.20% 2.16% 2.38% 3.10%
=================================================================================================================
* 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Equity Income Fund | Annual Report | 10/31/13
----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
----------------------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $27.98 $26.21 $23.95 $20.27 $ 21.30
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.84 $ 0.93 $ 0.30 $ 0.38 $ 0.45
Net realized and unrealized gain (loss) on investments 6.51 1.74 2.48 3.80 (0.91)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 7.35 $ 2.67 $ 2.78 $ 4.18 $ (0.46)
----------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.95) (0.90) (0.52) (0.50) (0.57)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 6.40 $ 1.77 $ 2.26 $ 3.68 $ (1.03)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $34.38 $27.98 $26.21 $23.95 $ 20.27
================================================================================================================
Total return* 26.80% 10.31% 11.67% 20.84% (1.88)%
Ratio of net expenses to average net assets+ 0.87% 0.87% 0.85% 0.81% 0.79%
Ratio of net investment income to average net assets+ 2.58% 3.98% 2.05% 2.25% 3.24%
Portfolio turnover rate 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $2,985 $2,553 $1,653 $ 505 $ 233
Ratios with reduction for fees paid indirectly:
Total expenses 0.87% 0.87% 0.85% 0.81% 0.95%
Net investment income 2.58% 3.98% 2.05% 2.25% 3.08%
================================================================================================================
* 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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/13 37
Notes to Financial Statements | 10/31/13
1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the Fund) is a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is 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 seven classes of shares designated as Class A, Class B, Class C,
Class K, Class R, Class Y and Class Z shares. Class K shares were first publicly
offered on December 20, 2012. Effective as of the close of business on December
31, 2009, Class B shares are no longer offered to new or existing shareholders,
except that dividends and/or capital gain distributions may continue to be
reinvested in Class B shares, and shareholders may exchange their Class B shares
for Class B shares of other Pioneer funds, as permitted by existing exchange
privileges. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has identical rights (based on relative net asset
values) to assets and liquidation proceeds. Share classes can bear different
rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class K, Class Y or Class Z shares. Class B shares convert
to Class A shares approximately eight years after the date of purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
38 Pioneer Equity Income Fund | Annual Report | 10/31/13
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued
at the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued at the mean
between the last bid and asked prices. Short-term fixed income securities
with remaining maturities of sixty days or less generally are valued at
amortized cost. Shares of money market mutual funds are valued at such
funds' net asset value.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued at the direction or
with the approval of the Valuation Committee using fair value methods
pursuant to procedures adopted by the Board of Trustees. The Valuation
Committee is comprised of certain members of the Board of Trustees. Inputs
used when applying fair value methods to value a security may include credit
ratings, the financial condition of the company, current market conditions
and comparable securities. The Fund may use fair value methods if it is
determined that a significant event has occurred after the close of the
exchange or market on which the security trades and prior to the
determination of the Fund's net asset value. Examples of a significant event
might include political or economic news, corporate restructurings, natural
disasters, terrorist activity or trading halts. Thus, the valuation of the
Fund's securities may differ significantly from exchange prices and such
differences could be material. Pioneer Investment Management, Inc. (PIM),
the fund's investment advisor is responsible for monitoring developments
that may impact fair valued securities and for discussing and assessing fair
values on an ongoing basis, and at least quarterly, with the Valuation
Committee.
At October 31, 2013, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services).
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported net of unrecoverable foreign taxes withheld at
the applicable country rates.
Pioneer Equity Income Fund | Annual Report | 10/31/13 39
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. As of
October 31, 2013, the Fund did not accrue any interest and penalties with
respect to unrecognized tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years are subject to examination by
Federal and State tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
October 31, 2013, the Fund reclassified $545,446 to increase undistributed
net investment income and $545,446 to decrease accumulated net realized gain
on investments to reflect permanent book/tax differences. These adjustments
have no impact on net assets or the results of operations.
During the year ended October 31, 2013, a capital loss carryforward of
$54,796,876 was utilized to offset net realized gains by the Fund.
The tax character of distributions paid during the years ended October 31,
2013 and October 31, 2012 was as follows:
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $38,451,454 $35,055,310
----------------------------------------------------------------------------
Total $38,451,454 $35,055,310
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2013:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 2,669,324
Undistributed long term capital gain 49,276,208
Net unrealized appreciation 439,102,090
----------------------------------------------------------------------------
Total $491,047,622
============================================================================
40 Pioneer Equity Income Fund | Annual Report | 10/31/13
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales and tax basis
adjustments on Real Estate Investment Trust (REIT) holdings and
partnerships.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned $97,300 in underwriting commissions on the sale of Class A shares
during the year ended October 31, 2013.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C and Class R shares of the Fund,
respectively (see Note 4). Class K, Class Y and Class Z shares do not pay
distribution fees. All expenses and fees paid to the transfer agent, Pioneer
Investment Management Shareholder Services, Inc. (PIMSS), for its services
are allocated among the classes of shares based on the number of accounts in
each class and the ratable allocation of related out-of-pocket expenses (see
Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C, Class K, Class R,
Class Y and Class Z shares can reflect different transfer agent and
distribution expense rates.
E. Risks
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political or regulatory developments or other
risks affecting those industries or sectors. The Fund's prospectus contains
unaudited information regarding the Fund's principal risks. Please refer to
that document when considering the Fund's principal risks.
Pioneer Equity Income Fund | Annual Report | 10/31/13 41
F. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation is
recorded in the Fund's financial statements. The Fund records realized gains
and losses at the time a contracts 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 meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 8).
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. PIM is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.60% of
the Fund's average daily net assets up to $10 billion and 0.575% on assets over
$10 billion. For the year ended October 31, 2013, the effective management fee
(excluding waivers and/or assumption of expenses) was equivalent to 0.60% of the
Fund's average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting, and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$64,167, in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 2013.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
42 Pioneer Equity Income Fund | Annual Report | 10/31/13
For the year ended October 31, 2013, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 911,954
Class B 20,817
Class C 108,069
Class R 198,999
Class Y 380,731
Class Z 4,369
--------------------------------------------------------------------------------
Total $1,624,939
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $337,781 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2013.
4. Distribution and Service Plans
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B, Class C and
Class R shares. Pursuant to the Plan, the Fund pays PFD 0.25% of the average
daily net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of
the average daily net assets attributable to Class B and Class C shares. The fee
for Class B and Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Pursuant to the Plan, the Fund further pays PFD 0.50% of the average
daily net assets attributable to Class R shares for distribution services.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $20,298 in distribution fees payable to PFD at October 31, 2013.
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 K, Class R, Class
Y and Class Z shares) may be subject to a contingent deferred sales charge
(CDSC). A CDSC of 1.00% may be imposed on redemptions of certain net asset value
purchases of Class A shares within 12 months of purchase. Class B shares
redeemed within five years of purchase are subject to a CDSC at declining rates
beginning at 4.00%, based on the lower of cost or market value of shares being
redeemed. Redemptions of Class C shares within 12 months of
Pioneer Equity Income Fund | Annual Report | 10/31/13 43
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange
remain subject to any CDSC that applied to the original purchase of those
shares. There is no CDSC for Class K, Class R, Class Y or Class Z shares.
Proceeds from the CDSCs are paid to PFD. For the year ended October 31, 2013,
CDSCs in the amount of $22,904 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended October 31, 2013, the Fund's expenses
were not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility is in the amount of $215 million. Under such facility, depending
on the type of loan, interest on borrowings is payable at the London Interbank
Offered Rate (LIBOR) plus 0.90% on an annualized basis, or the Alternate Base
Rate, which is the greater of (a) the facility's administrative agent's daily
announced prime rate on the borrowing date, (b) 2% plus the Federal Funds Rate
on the borrowing date and (c) 2% plus the overnight Euro dollar rate on the
borrowing date. The Funds pay an annual commitment fee to participate in the
credit facility. The commitment fee is allocated among participating Funds based
on an allocation schedule set forth in the credit agreement. For the year ended
October 31, 2013, the Fund had no borrowings under the credit facility.
7. Affiliated Companies
The Fund's investments in certain companies may exceed 5% of the outstanding
voting stock of those companies. Such companies are deemed affiliates of the
Fund for financial reporting purposes. The following summarizes transactions
with affiliates of the Fund for the year ended October 31, 2013:
-------------------------------------------------------------------------------------------
Beginning Corporate
Balance Purchases Sales Actions Ending Dividend
Affiliates (shares) (shares) (shares) (shares) (shares) Income Value
-------------------------------------------------------------------------------------------
The Gorman-
Rupp Co. 1,146,943 -- -- -- 1,146,943 $114,694 $46,726,458
44 Pioneer Equity Income Fund | Annual Report | 10/31/13
8. Forward Foreign Currency Contracts
During the year ended October 31, 2013, the Fund had entered into various
forward foreign currency contracts that obligate the Fund to deliver or take
delivery of currencies at specified future maturity dates. Alternatively, prior
to the settlement date of a forward foreign currency contract, the Fund may
close out such contract by entering into an offsetting contract. The average
value of contracts open during the year ended October 31, 2013 was $130,518. At
October 31, 2013, the Fund had no outstanding forward foreign currency
contracts.
9. Additional Disclosures about Derivative Instruments and Hedging Activities
The effect of derivative instruments on the Statement of Operations for the year
ended October 31, 2013 was as follows:
----------------------------------------------------------------------------------------------
Change in
Derivatives Not Unrealized Realized
Accounted for as Appreciation gain or
hedging instruments or (Depreciation (loss) on
Under Accounting Location of Gain or (Loss) on Derivatives derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
----------------------------------------------------------------------------------------------
Forward Foreign Currency Change in net unrealized $276,148
Contracts appreciation on forward foreign
currency contracts and other
assets and liabilities denominated
in foreign currencies
Forward Foreign Currency Net realized gain (loss) $1,971
Contracts on forward foreign currency
contracts and other assets and
liabilities denominated in
foreign currencies
Pioneer Equity Income Fund | Annual Report | 10/31/13 45
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Equity Income Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Equity Income Fund (the "Fund"), including the schedule of investments, as of
October 31, 2013, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2013, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Equity Income Fund at October 31, 2013, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the periods
indicated therein, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 23, 2013
46 Pioneer Equity Income Fund | Annual Report | 10/31/13
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy voting policies and procedures of the Funds are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Funds voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to share-
owners at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and Officers are listed on the following pages, together
with their principal occupations during at least the past five years. Trustees
who are interested persons of the Fund within the meaning of the 1940 Act are
referred to as Interested Trustees. Trustees who are not interested persons of
the Fund are referred to as Independent Trustees. Each of the Trustees, except
Mr. Cogan and Mr. West, serves as a trustee of each of the 52 U.S. registered
investment portfolios for which Pioneer serves as investment adviser (the
"Pioneer Funds"). Each of Mr. Cogan and Mr. West serves as a Trustee of 47
Pioneer funds. The address for all Trustees and all officers of the Fund is 60
State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Equity Income Fund | Annual Report | 10/31/13 47
Independent Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (63) Trustee since 2006. Chairman and Chief Executive Officer, Director, Broadridge
Chairman of the Board Serves until a Quadriserv, Inc. (technology products Financial Solutions, Inc.
and Trustee successor trustee is for securities lending industry) (2008 (investor communications and
elected or earlier - present); private investor (2004 - securities processing
retirement or 2008); and Senior Executive Vice provider for financial
removal. President, The Bank of New York services industry) (2009 -
(financial and securities services) present); Director,
(1986 - 2004) Quadriserv, Inc. (2005 -
present); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
present)
--------------------------------------------------------------------------------------------------------------------------------
David R. Bock (69) Trustee since 2005. Managing Partner, Federal City Capital Director of Enterprise
Trustee Serves until a Advisors (corporate advisory services Community Investment, Inc.
successor trustee is company) (1997 - 2004 and 2008 - (privately-held affordable
elected or earlier present); Interim Chief Executive housing finance company)
retirement or Officer, Oxford Analytica, Inc. (1985 - 2010); Director of
removal. (privately held research and Oxford Analytica, Inc. (2008
consulting company) (2010); Executive - present); Director of The
Vice President and Chief Financial Swiss Helvetia Fund, Inc.
Officer, I-trax, Inc. (publicly traded (closed-end fund) (2010 -
health care services company) (2004 - present); and Director of
2007); and Executive Vice President New York Mortgage Trust
and Chief Financial Officer, Pedestal (publicly traded mortgage
Inc. (internet-based mortgage trading REIT) (2004 - 2009, 2012 -
company) (2000 - 2002) present)
--------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (69) Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon
Trustee Serves until a Political Economy, Harvard University Institutional Funds
successor trustee is (1972 - present) Investment Trust and Mellon
elected or earlier Institutional Funds Master
retirement or Portfolio (oversaw 17
removal. portfolios in fund complex)
(1989-2008)
--------------------------------------------------------------------------------------------------------------------------------
48 Pioneer Equity Income Fund | Annual Report | 10/31/13
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (66) Trustee since 1990. Founding Director, Vice President and None
Trustee Serves until a Corporate Secretary, The Winthrop
successor trustee is Group, Inc. (consulting firm)
elected or earlier (1982-present); Desautels Faculty of
retirement or Management, McGill University (1999 -
removal. present); and Manager of Research
Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
---------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (65) Trustee since 1990. President and Chief Executive Officer, Director of New America
Trustee Serves until a Newbury, Piret & Company, Inc. High Income Fund, Inc.
successor trustee is (investment banking firm) (1981 - (closed-end investment
elected or earlier present) company) (2004 - present);
retirement or and member, Board of
removal. Governors, Investment
Company Institute (2000 -
2006)
---------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (85) Trustee since 1993. Senior Counsel, Sullivan & Cromwell Director, The Swiss
Trustee Serves until a LLP (law firm) (1998 - present); and Helvetia Fund, Inc.
successor trustee is Partner, Sullivan & Cromwell LLP (closed-end investment
elected or earlier (prior to 1998) company); and Director,
retirement or Invesco, Ltd. (formerly
removal. AMVESCAP, PLC) (investment
manager) (1997-2005)
---------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/13 49
Interested Trustees
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (87)*, ** Since 1990. Serves at Non-Executive Chairman and a director None
Trustee, President and the discretion of the of Pioneer Investment Management USA
Chief Executive Officer Board. Inc. ("PIM-USA"); Chairman and a
of the Fund director of Pioneer; Chairman and
Director of Pioneer Institutional
Asset Management, Inc. (since 2006);
Director of Pioneer Alternative
Investment Management Limited (Dublin)
(until October 2011); President and a
director of Pioneer Alternative
Investment Management (Bermuda)
Limited and affiliated funds; Deputy
Chairman and a director of Pioneer
Global Asset Management S.p.A.
("PGAM") (until April 2010); Director
of Nano-C, Inc. (since 2003); Director
of Cole Management Inc. (2004 - 2011);
Director of Fiduciary Counseling, Inc.
(until December 2011); President of
all of the Pioneer Funds; and Retired
Partner, Wilmer Cutler Pickering Hale
and Dorr LLP
---------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (55)* Trustee since 2007. Director, CEO and President of PIM-USA None
Trustee and Executive Serves until a (since February 2007); Director and
Vice President successor trustee is President of Pioneer and Pioneer
elected or earlier Institutional Asset Management, Inc.
retirement or (since February 2007); Executive Vice
removal. President of all of the Pioneer Funds
(since March 2007); Director of PGAM
(2007 - 2010); Head of New Europe
Division, PGAM (2000 - 2005); Head of
New Markets Division, PGAM (2005 -
2007)
---------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are
officers or directors of the Fund's investment adviser and certain of its
affiliates.
** Mr. Cogan resigned as a Trustee of the Pioneer Funds effective November 12,
2013.
50 Pioneer Equity Income Fund | Annual Report | 10/31/13
Fund Officers
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
---------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (48) Since 2003. Serves at Vice President and Associate General None
Secretary the discretion of the Counsel of Pioneer since January 2008
Board. and Secretary of all of the Pioneer
Funds since June 2010; Assistant
Secretary of all of the Pioneer Funds
from September 2003 to May 2010; and
Vice President and Senior Counsel of
Pioneer from July 2002 to December
2007
---------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (52) Since 2010. Serves at Fund Governance Director of Pioneer None
Assistant Secretary the discretion of the since December 2006 and Assistant
Board. Secretary of all the Pioneer Funds
since June 2010; Manager - Fund
Governance of Pioneer from December
2003 to November 2006; and Senior
Paralegal of Pioneer from January 2000
to November 2003
---------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (50) Since 2010. Serves at Counsel of Pioneer since June 2007 and None
Assistant Secretary the discretion of the Assistant Secretary of all the Pioneer
Board. Funds since June 2010; and Vice
President and Counsel at State Street
Bank from October 2004 to June 2007
---------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (53) Since 2008. Serves at Vice President - Fund Treasury of None
Treasurer and Chief Financial the discretion of the Pioneer; Treasurer of all of the
and Accounting Officer of Board. Pioneer Funds since March 2008; Deputy
the Fund Treasurer of Pioneer from March 2004
to February 2008; and Assistant
Treasurer of all of the Pioneer Funds
from March 2004 to February 2008
---------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (48) Since 2000. Serves at Assistant Vice President - Fund None
Assistant Treasurer the discretion of the Treasury of Pioneer; and Assistant
Board. Treasurer of all of the Pioneer Funds
---------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (55) Since 2002. Serves at Fund Accounting Manager - Fund None
Assistant Treasurer the discretion of the Treasury of Pioneer; and Assistant
Board. Treasurer of all of the Pioneer Funds
---------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/13 51
Fund Officers (continued)
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
---------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (33) Since 2009. Serves at Fund Administration Manager - Fund None
Assistant Treasurer the discretion of the Treasury of Pioneer since November
Board. 2008; Assistant Treasurer of all of
the Pioneer Funds since January 2009;
and Client Service Manager -
Institutional Investor Services at
State Street Bank from March 2003 to
March 2007
---------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (61) Since 2010. Serves at Chief Compliance Officer of Pioneer None
Chief Compliance Officer the discretion of the and of all the Pioneer Funds since
Board. March 2010; Director of Adviser and
Portfolio Compliance at Pioneer since
October 2005; and Senior Compliance
Officer for Columbia Management
Advisers, Inc. from October 2003 to
October 2005
---------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (42) Since 2006. Serves at Director--Transfer Agency Compliance of None
Anti-Money Laundering the discretion of the Pioneer and Anti-Money Laundering
Officer Board. Officer of all the Pioneer Funds since
2006
---------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Equity Income Fund | Annual Report | 10/31/13
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] Pioneer
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2013 Pioneer Investments 19439-07-1213
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Pioneer Equity Income Fund:
Fees for audit services provided to the Fund, including
fees associated with the filings to update its Form N-2
and issuance of comfort letters, totaled approximately
$31,686 in 2013 and $34,557 in 2012.
(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.
Pioneer Equity Income Fund:
There were no fees for audit-related or other services
provided to the Fund during the fiscal years ended
October 31, 2013 and 2012.
(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.
Pioneer Equity Income Fund:
Fees for tax compliance services, primarily for tax
returns, totaled approximately $8,131 and $8,290 for
2013 and 2012, respectively.
(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.
Pioneer Equity Income Fund:
Other Fees
There were no fees for other services provided to the
Fund during the fiscal years ended October 31, 2013.
and 2011.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Fund's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Fund. For the
years ended October 31, 2013 and 2012, there were no
services provided to an affiliate that required the
Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and
affiliates, as previously defined, totaled approximately
$8,131 in 2013 and $8,290 in 2012.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Equity Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December 30, 2013
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 December 30, 2013
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 30, 2013
* Print the name and title of each signing officer under his or her signature.