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: Novembery 1, 2016 through April 30, 2017
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
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Semiannual Report | April 30, 2017
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Ticker Symbols:
Class A PEQIX
Class C PCEQX
Class K PEQKX
Class R PQIRX
Class Y PYEQX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 25
Notes to Financial Statements 34
Approval of New and Interim Management Agreements 42
Trustees, Officers and Service Providers 50
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 1
President's Letter
After an overall strong year for leading market indices in 2016, U.S. markets
continued to generate positive returns over the first calendar quarter of 2017,
with so-called "risk" assets, such as equities and credit-sensitive bonds,
posting solid gains. In the first quarter, U.S. equities, as measured by the
Standard & Poor's 500 Index, returned slightly more than 6%, while high-yield
securities dominated bond market performance.
The transfer of power in Washington, D.C. in January had little or no effect on
the markets in the first quarter, as the post-election momentum we witnessed
late in the fourth quarter of 2016 slowed only when oil prices slumped in March,
due to both higher-than-expected inventories and concerns over whether OPEC
(Organization of Petroleum Exporting Countries) would continue its supply cuts
in June. Not even the Federal Reserve System's (the Fed's) highly anticipated
rate hike during the month of March, its second in three months, nor Britain's
trigger of Article 50 to begin the "Brexit" process caused any dramatic sell-off
of risk assets.
While U.S. gross domestic product (GDP) did slow in the first quarter, the
expectation is for GDP to accelerate in the second quarter, with a strong
consumer leading the way. Pioneer believes the U.S. economy may lead all
developed nations in 2017, with GDP growth in excess of 2% for the year.
President Trump has proposed decidedly pro-business policies, such as lower
taxes, higher infrastructure spending, and less regulation, though we believe
the economy may realize the benefits of those policies, if enacted, more so in
2018 than in 2017. Conversely, the effects of the President's potentially
restrictive trade policies could offset some of the benefits of the pro-growth
fiscal policies.
Even so, we believe solid domestic employment figures should continue to support
consumption and the housing market, and that stronger corporate profits and
increased government spending may contribute to economic growth in 2018 and
beyond. Increasing global Purchasing Manager Indices (PMIs) suggest that growth
in global economies is also improving. (PMIs are used to measure the economic
health of the manufacturing sector.)
There are, as always, some risks to our outlook. First, the market already has
priced in a good deal of the Trump economic reform platform, and that could lead
to near-term disappointment if Congressional follow-through does not happen this
year. The future of the Affordable Care Act is another potential concern. The
first attempt to repeal/replace it failed, but any new proposed
2 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
legislation will undoubtedly have an effect on the health care sector, one of
the largest segments of the U.S. economy. Geopolitical risks, of course, remain
a potential headwind, given ongoing strife in the Middle East and renewed
tensions on the Korean Peninsula.
While our current outlook is generally optimistic, conditions can and often do
change, and while passive investment strategies may have a place in one's
overall portfolio, it is our view that all investment decisions are active
choices.
Throughout Pioneer's history, we have believed in the importance of active
management. The active decisions to invest in equities or fixed-income
securities are made by a team of experienced investment professionals focusing
on identifying value across global markets using proprietary research, careful
risk management, and a long-term perspective. We believe our shareowners can
benefit from the experience and tenure of our investment teams as well as the
insights generated from our extensive research process.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
April 30, 2017
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. Past performance is no
guarantee of future results.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 3
Portfolio Management Discussion | 4/30/17
In the following interview, John Carey, Executive Vice President and a portfolio
manager at Pioneer Investments, discusses the investment environment during the
six-month period ended April 30, 2017, 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, along with Walter Hunnewell, Jr., a
vice president and a portfolio manager at Pioneer.
Q How did the Fund perform during the six-month period ended April 30, 2017?
A Pioneer Equity Income Fund's Class A shares returned 12.29% at net asset
value during the six-month period ended April 30, 2017, while the Fund's
benchmark, the Russell 1000 Value Index (the Russell Index), returned
11.69%. During the same period, the average return of the 554 mutual funds
in Lipper's Equity Income Funds category was 10.90%, and the average return
of the 1,288 mutual funds in Morningstar's Large Value Funds category was
12.08%.
Q How would you describe the market environment for equities during the
six-month period ended April 30, 2017, particularly for the types of
equities deemed appropriate for the Fund?
A Stocks did well during the six months ended April 30, 2017. Investors took
heart from a resumption in corporate-earnings growth and also welcomed the
November 2016 U.S. election results and the possibility of business-
friendly tax-and-regulatory policy as well as increased Federal
infrastructure spending. While some industries, such as auto manufacturing
and traditional "brick-and-mortar" retailing, showed declines, many
industries saw accelerated growth as the economy appeared to get a "second
wind." Energy, with higher oil prices than a year earlier, saw much better
earnings; information technology rode the waves of greater semiconductor
penetration of rafts of consumer and industrial products and growth in
usage of "the cloud" for storage of data of all types; and industrials
responded positively to the pick-up in economic activity not only in the
U.S., but also internationally.
For the types of stocks typically owned by Pioneer Equity Income Fund, the
period was generally very good. While value stocks rose less than growth
names, they still posted strong returns. For the six months ended April 30,
2017, the Fund's benchmark, the Russell Index, achieved a total return of
11.69%, versus the 15.23% total return for the Russell 1000 Growth Index.
The gain by growth stocks over value came largely in the latter part of the
period. With the expected pro-business legislation apparently stalled in
4 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Congress as well as apparent disarray in the new administration, investors
began shying away from stocks they perceived to be more cyclical and
economically sensitive and concentrating their investments in some of the
large companies, especially in information technology, they regarded as
having more proven and secure earnings prospects. That development dampened
returns for many of the portfolio's holdings as we moved past April 30 and
into the second six months of the Fund's fiscal year.
Q The Fund outperformed the Russell Index benchmark during the six- month
period ended April 30, 2017. Could you please discuss the major reasons for
the Fund's benchmark-relative outperformance and discuss any investments or
strategies that meaningfully underperformed during the period?
A The six-month period was an unusual one for the Fund, in that there were no
significant performance outliers one way or the other, either with respect
to individual stocks or sectors. Modestly favorable overall stock selection
results offset slightly unfavorable sector allocation results, but nothing
stood out dramatically. The Fund experienced negative performance
attribution from an overweight to the underperforming consumer staples
sector and an underweight to the top-performing financials sector. However,
stock selection results within the two sectors served to offset some or all
of the benchmark-relative underperformance related to weightings. Positive
performance attribution came from an underweight to the lagging energy
sector and an overweight to the strong-performing materials sector, though
those gains were partially offset in both cases by below-average stock
selection results within the sectors.
With respect to individual portfolio holdings, Cedar Fair (consumer
discretionary), Lincoln National (financials), and PNC Financial
(financials) recorded positive performance attribution relative to the
Fund's benchmark, just ever so slightly greater than the negative
performance attribution of the bottom three holdings, which were Occidental
Petroleum (energy), Kellogg (consumer staples), and American Electric Power
(utilities).
Q What changes did you make to the Fund's portfolio during the six-month
period ended April 30, 2017?
A During the six months, we added 21 positions to the portfolio and
liquidated 10. Improving conditions in the energy sector led to our
reinvesting in several oil-and-gas names, including Apache, ConocoPhillips,
Enbridge, and Schlumberger. With the possibility of an upturn in the rate
of economic growth, we felt comfortable investing more in consumer-oriented
companies, including Carter's (clothes for babies and children), BorgWarner
(automotive parts), Chocoladefabriken Lindt & Spruengli (Swiss chocolate
maker), Procter & Gamble (household and
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 5
personal-care products), and VF (rugged outdoor wear and shoes). The
strength in information technology guided us towards Cisco (networking
gear), HP (computers and printers), Intel (semiconductors), KLA-Tencor
(quality-control systems for semiconductor manufacturers), and TE
Connectivity (electronic components for telecommunications and other
networks). Among other new entries in the portfolio were PPG (paints and
coatings as well as glass), SL Green Realty (office buildings in New York
City), and T. Rowe Price Group (mutual funds and other money management).
On the sale side, we eliminated Fund positions we thought had either
reached fair value or no longer held the investment potential we estimated
for them at time of purchase. In the former category were Accenture, Eli
Lilly, and Norfolk Southern, among others; and in the latter category were
Pfizer, Outfront Media, and AT&T. One stock in the portfolio, Mead Johnson,
received a premium acquisition offer from the British company Reckitt
Benckiser Group, and we elected to book profits shortly afterwards. Time
Warner, too, received expression of takeover interest, by AT&T, and we
likewise chose to realize gains on the Fund's position rather than wait for
possible completion of that deal.
Q Did the Fund hold any derivatives during the six-month period ended April
30, 2017?
A No, the Fund held no derivatives during the period.
Q The Fund typically places emphasis on dividend-paying* stocks. Would you
describe the environment for dividends as positive or negative during the
six-month period ended April 30, 2017?
A Investors continued to display decent interest in dividend-paying stocks
during the six months, though current yields on bonds grew more competitive
as the period progressed. In advance of expected interest-rate increases by
the Federal Reserve (the Fed), bond markets pushed current yields higher on
intermediate and longer-term U.S. Treasuries and investment-grade corporate
bonds. In the Fund's portfolio, we have always aimed for attractive total
return, from both dividends and share-price appreciation, but some
investors focus only or mainly on current yield, meaning there's been some
greater competition of late for the investor's dollar. Otherwise, too,
companies have kept to their patterns of combining dividend payouts with
share repurchases. Our approach in this rather more challenging situation
is to continue our emphasis on owning shares of companies with the
capability of raising their dividends over time and the stated corporate
objective of paying steady dividends.
* Dividends are not guaranteed.
6 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Q What is your outlook for equities as we near the middle of calendar year
2017?
A Over the past several years, many companies have shown higher earnings than
sales growth. They have achieved the higher earnings through cutting costs,
engineering efficiencies in manufacturing and distribution, repurchasing
shares, enlarging scale through mergers and acquisitions, and aggressive
tax strategies. We do think that there is not a lot more that can be done
along those lines, and that indeed the accompanying slowness in capital
spending is beginning to catch up with companies and hamper their ability
to expand productivity. For a while after the November elections the
markets appeared to think that it was "cavalry to the rescue," but more
recently companies appear to be coming around to the idea that it may be
status quo in regard to tax, trade, regulatory, and healthcare policy
through at least much of the remainder of this calendar year, if not
longer. We believe that that recognition is behind the outperformance of
growth stocks versus value. Investors often feel better about holding
stocks of companies with demonstrated, apparently more secure earnings
profiles in uncertain economic times than stocks of the more cyclical and
economically-sensitive companies that populate the value universe.
With so much market attention directed towards "larger-picture"
circumstances and trends, we of course pay attention to the news and do
what we think is prudent in regard to balancing of the portfolio's risks.
However, we do think that a concentration on what we would characterize as
higher-quality, dividend-paying, value stocks remains a potentially
worthwhile approach for the Fund's shareholders. If anything, the almost
hyper-attentiveness of the market to stocks of the leading growth names has
seemed to make available for us a broader array of potentially interesting
buying opportunities within the corners of the market we prefer.
Thank you for your continued interest and support.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 7
Please refer to the Schedule of Investments on pages 18-24 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
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.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
8 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Portfolio Summary | 4/30/17
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 87.5%
International Common Stocks 7.7%
Depositary Receipts for International Stocks 4.8%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 21.9%
Consumer Staples 16.3%
Consumer Discretionary 9.5%
Health Care 9.4%
Materials 9.1%
Energy 9.0%
Information Technology 7.6%
Utilities 7.2%
Industrials 6.5%
Real Estate 2.6%
Telecommunication Services 0.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. The PNC Financial Services Group, Inc. 2.47%
--------------------------------------------------------------------------------
2. State Street Corp. 2.23
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3. Cedar Fair LP 2.02
--------------------------------------------------------------------------------
4. Becton Dickinson and Co. 2.02
--------------------------------------------------------------------------------
5. Bank of America Corp. 1.99
--------------------------------------------------------------------------------
6. Microchip Technology, Inc. 1.90
--------------------------------------------------------------------------------
7. The Gorman-Rupp Co. 1.87
--------------------------------------------------------------------------------
8. Exxon Mobil Corp. 1.86
--------------------------------------------------------------------------------
9. JPMorgan Chase & Co. 1.84
--------------------------------------------------------------------------------
10. Syngenta AG (A.D.R.) 1.76
--------------------------------------------------------------------------------
* This list excludes temporary cash investments. The portfolio is actively
managed, and current holdings may be different. The holdings listed should
not be considered recommendations to buy or sell any securities listed.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 9
Prices and Distributions | 4/30/17
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 4/30/17 10/31/16
--------------------------------------------------------------------------------
A $33.73 $33.76
--------------------------------------------------------------------------------
C $33.14 $33.24
--------------------------------------------------------------------------------
K $33.79 $33.81
--------------------------------------------------------------------------------
R $34.27 $34.24
--------------------------------------------------------------------------------
Y $34.12 $34.10
--------------------------------------------------------------------------------
Distributions per Share: 11/1/16-4/30/17
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2520 $-- $3.6950
--------------------------------------------------------------------------------
C $0.1342 $-- $3.6950
--------------------------------------------------------------------------------
K $0.3095 $-- $3.6950
--------------------------------------------------------------------------------
R $0.1843 $-- $3.6950
--------------------------------------------------------------------------------
Y $0.2914 $-- $3.6950
--------------------------------------------------------------------------------
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 11-15.
10 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Performance Update | 4/30/17 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 April 30, 2017)
--------------------------------------------------------------------------------
Net Public Russell
Asset Offering 1000
Value Price Value
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 years 6.17% 5.54% 5.53%
5 years 13.05 11.73 13.32
1 year 16.37 9.67 16.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.04%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/07 $ 9,425 $10,000
4/08 $ 8,716 $ 9,103
4/09 $ 5,560 $ 5,534
4/10 $ 7,452 $ 7,873
4/11 $ 9,081 $ 9,073
4/12 $ 9,286 $ 9,167
4/13 $10,930 $11,165
4/14 $12,804 $13,498
4/15 $13,973 $14,755
4/16 $14,735 $14,696
4/17 $17,148 $17,128
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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 11
Performance Update | 4/30/17 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 April 30, 2017)
--------------------------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 years 5.38% 5.38% 5.53%
5 years 12.23 12.23 13.32
1 year 15.52 15.52 16.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.77%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/07 $10,000 $10,000
4/08 $ 9,179 $ 9,103
4/09 $ 5,808 $ 5,534
4/10 $ 7,726 $ 7,873
4/11 $ 9,343 $ 9,073
4/12 $ 9,482 $ 9,167
4/13 $11,080 $11,165
4/14 $12,885 $13,498
4/15 $13,959 $14,755
4/16 $14,614 $14,696
4/17 $16,883 $17,128
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If 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.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Performance Update | 4/30/17 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
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 April 30, 2017)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 years 6.35% 5.53%
5 years 13.44 13.32
1 year 16.78 16.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.67%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/07 $5,000,000 $5,000,000
4/08 $4,624,372 $4,551,467
4/09 $2,949,986 $2,766,945
4/10 $3,953,626 $3,936,741
4/11 $4,818,076 $4,536,579
4/12 $4,926,729 $4,583,312
4/13 $5,808,173 $5,582,644
4/14 $6,833,461 $6,749,161
4/15 $7,485,089 $7,377,744
4/16 $7,924,511 $7,347,957
4/17 $9,254,276 $8,564,082
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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 13
Performance Update | 4/30/17 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 April 30, 2017)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 years 5.86% 5.53%
5 years 12.66 13.32
1 year 15.93 16.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.40%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/07 $10,000 $10,000
4/08 $ 9,233 $ 9,103
4/09 $ 5,877 $ 5,534
4/10 $ 7,862 $ 7,873
4/11 $ 9,556 $ 9,073
4/12 $ 9,741 $ 9,167
4/13 $11,429 $11,165
4/14 $13,346 $13,498
4/15 $14,511 $14,755
4/16 $15,249 $14,696
4/17 $17,678 $17,128
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.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Performance Update | 4/30/17 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 April 30, 2017)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 years 6.55% 5.53%
5 years 13.39 13.32
1 year 16.70 16.55
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2017)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.77%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Equity Russell 1000
Income Fund Value Index
4/07 $5,000,000 $5,000,000
4/08 $4,640,771 $4,551,467
4/09 $2,974,285 $2,766,945
4/10 $4,005,972 $3,936,741
4/11 $4,904,260 $4,536,579
4/12 $5,033,996 $4,583,312
4/13 $5,945,711 $5,582,644
4/14 $6,987,754 $6,749,161
4/15 $7,646,602 $7,377,744
4/16 $8,084,961 $7,347,957
4/17 $9,435,032 $8,564,082
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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from November 1, 2016, through April 30, 2017.
--------------------------------------------------------------------------------
Share Class A C K R Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 11/1/16
--------------------------------------------------------------------------------
Ending Account Value $1,122.90 $1,118.70 $1,124.90 $1,120.70 $1,124.40
(after expenses) on
4/30/17
--------------------------------------------------------------------------------
Expenses Paid $ 5.37 $ 9.19 $ 3.48 $ 7.41 $ 4.06
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.02%, 1.75%,
0.66% 1.41%, and 0.77%, for Class A, Class C, Class K, Class R and Class Y,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
16 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
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 November 1, 2016, through April 30, 2017.
--------------------------------------------------------------------------------
Share Class A C K R Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 11/1/16
--------------------------------------------------------------------------------
Ending Account Value $1,019.74 $1,016.12 $1,021.52 $1,017.80 $1,020.98
(after expenses) on
4/30/17
--------------------------------------------------------------------------------
Expenses Paid $ 5.11 $ 8.75 $ 3.31 $ 7.05 $ 3.86
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.02%, 1.75%,
0.66% 1.41%, and 0.77%, for Class A, Class C, Class K, Class R and Class Y,
respectively, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period).
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 17
Schedule of Investments | 4/30/17 (unaudited)
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
COMMON STOCKS -- 100.0%
ENERGY -- 9.0%
Oil & Gas Equipment & Services -- 0.9%
418,400 Frank's International NV* $ 3,807,440
214,032 Schlumberger, Ltd. 15,536,583
--------------
$ 19,344,023
-------------------------------------------------------------------------------------
Integrated Oil & Gas -- 3.5%
96,353 Chevron Corp. $ 10,280,865
474,447 Exxon Mobil Corp. 38,738,598
370,047 Occidental Petroleum Corp. 22,772,692
--------------
$ 71,792,155
-------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 2.0%
437,472 Anadarko Petroleum Corp. $ 24,944,653
159,592 Apache Corp. 7,762,555
200,000 ConocoPhillips 9,582,000
--------------
$ 42,289,208
-------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 2.3%
469,869 Marathon Petroleum Corp.* $ 23,935,127
297,539 Phillips 66 23,672,203
--------------
$ 47,607,330
-------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 0.3%
164,130 Enbridge, Inc. $ 6,803,188
--------------
Total Energy $ 187,835,904
-------------------------------------------------------------------------------------
MATERIALS -- 9.2%
Specialty Chemicals -- 4.2%
247,351 Celanese Corp. $ 21,529,431
4,755 Givaudan SA 9,168,973
189,317 Johnson Matthey Plc 7,303,481
109,843 PPG Industries, Inc. 12,065,155
394,532 Syngenta AG (A.D.R.) 36,703,312
--------------
$ 86,770,352
-------------------------------------------------------------------------------------
Aluminum -- 0.9%
215,542 Kaiser Aluminum Corp. $ 18,193,900
-------------------------------------------------------------------------------------
Diversified Metals & Mining -- 3.1%
325,279 BHP Billiton, Ltd. (A.D.R.) $ 11,579,932
237,600 Compass Minerals International, Inc. 15,681,600
274,951 Materion Corp. 10,461,886
340,125 Rio Tinto Plc 13,486,942
366,433 Southern Copper Corp. 12,960,735
--------------
$ 64,171,095
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
Steel -- 1.0%
355,216 Nucor Corp. $ 21,785,397
--------------
Total Materials $ 190,920,744
-------------------------------------------------------------------------------------
CAPITAL GOODS -- 5.5%
Aerospace & Defense -- 0.9%
125,125 Raytheon Co. $ 19,420,651
-------------------------------------------------------------------------------------
Industrial Conglomerates -- 1.5%
1,084,984 General Electric Co. $ 31,453,686
-------------------------------------------------------------------------------------
Industrial Machinery -- 2.5%
54,000 Ingersoll-Rand Plc $ 4,792,500
1,363,363 The Gorman-Rupp Co.+ 39,019,449
177,309 The Timken Co. 8,555,159
--------------
$ 52,367,108
-------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.6%
184,056 Wolseley Plc $ 11,688,807
--------------
Total Capital Goods $ 114,930,252
-------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.0%
Office Services & Supplies -- 0.7%
192,664 MSA Safety, Inc. $ 14,998,892
-------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.3%
95,096 Randstad Holding NV $ 5,668,864
--------------
Total Commercial Services & Supplies $ 20,667,756
-------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 1.7%
Auto Parts & Equipment -- 1.0%
517,351 BorgWarner, Inc. $ 21,873,600
-------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.7%
904,802 Ford Motor Co. $ 10,378,079
100,000 General Motors Co.* 3,464,000
--------------
$ 13,842,079
--------------
Total Automobiles & Components $ 35,715,679
-------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.3%
Apparel, Accessories & Luxury Goods -- 1.3%
120,000 Carter's, Inc. $ 11,044,800
290,000 VF Corp. 15,842,700
--------------
$ 26,887,500
--------------
Total Consumer Durables & Apparel $ 26,887,500
-------------------------------------------------------------------------------------
CONSUMER SERVICES -- 3.8%
Hotels, Resorts & Cruise Lines -- 1.4%
491,964 InterContinental Hotels Group Plc $ 26,095,344
50,637 InterContinental Hotels Group Plc (A.D.R.) 2,673,127
--------------
$ 28,768,471
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 19
Schedule of Investments | 4/30/17 (unaudited) (continued)
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
Leisure Facilities -- 2.0%
587,087 Cedar Fair LP $ 42,076,525
-------------------------------------------------------------------------------------
Restaurants -- 0.4%
48,921 Cracker Barrel Old Country Store, Inc. $ 7,836,655
--------------
Total Consumer Services $ 78,681,651
-------------------------------------------------------------------------------------
MEDIA -- 2.8%
Broadcasting -- 1.4%
280,000 CBS Corp. (Class B) $ 18,636,800
132,190 Scripps Networks Interactive, Inc. 9,877,237
--------------
$ 28,514,037
-------------------------------------------------------------------------------------
Movies & Entertainment -- 0.5%
500,000 Regal Entertainment Group $ 11,035,000
-------------------------------------------------------------------------------------
Publishing -- 0.9%
114,100 John Wiley & Sons, Inc. (Class A) $ 6,013,070
211,887 Meredith Corp. 12,405,984
--------------
$ 18,419,054
--------------
Total Media $ 57,968,091
-------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.3%
Food Retail -- 0.9%
668,469 The Kroger Co. $ 19,820,106
-------------------------------------------------------------------------------------
Hypermarkets & Super Centers -- 1.4%
377,837 Wal-Mart Stores, Inc. $ 28,405,786
--------------
Total Food & Staples Retailing $ 48,225,892
-------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 12.1%
Soft Drinks -- 2.2%
353,400 Dr. Pepper Snapple Group, Inc. $ 32,389,110
325,133 The Coca-Cola Co. 14,029,489
--------------
$ 46,418,599
-------------------------------------------------------------------------------------
Packaged Foods & Meats -- 9.9%
38,000 Calavo Growers, Inc. $ 2,492,800
279,726 Campbell Soup Co. 16,095,434
2,000 Chocoladefabriken Lindt & Spruengli AG 11,255,847
542,570 Conagra Brands, Inc. 21,040,865
290,559 General Mills, Inc. 16,710,048
80,712 John B Sanfilippo & Son, Inc. 5,932,332
356,185 Kellogg Co. 25,289,135
230,856 Lamb Weston Holdings, Inc. 9,638,238
100,000 McCormick & Co., Inc. 9,990,000
769,000 Mondelez International, Inc. 34,628,070
518,396 Pinnacle Foods, Inc. 30,144,727
205,000 The Hershey Co. 22,181,000
--------------
$ 205,398,496
--------------
Total Food, Beverage & Tobacco $ 251,817,095
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.0%
Household Products -- 2.0%
129,210 The Clorox Co. $ 17,274,085
272,971 The Procter & Gamble Co. 23,838,557
--------------
$ 41,112,642
--------------
Total Household & Personal Products $ 41,112,642
-------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.6%
Health Care Equipment -- 2.8%
224,600 Becton Dickinson and Co. $ 41,993,462
1,026,557 Smith & Nephew Plc 16,883,269
--------------
$ 58,876,731
-------------------------------------------------------------------------------------
Health Care Distributors -- 0.8%
489,300 Owens & Minor, Inc. $ 16,954,245
--------------
Total Health Care Equipment & Services $ 75,830,976
-------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 5.8%
Pharmaceuticals -- 5.8%
956,064 AstraZeneca Plc (A.D.R.) $ 28,920,936
461,065 GlaxoSmithKline Plc (A.D.R.) 18,857,558
196,477 Johnson & Johnson 24,259,015
508,997 Merck & Co., Inc. 31,725,783
303,513 Zoetis, Inc. 17,030,114
--------------
$ 120,793,406
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 120,793,406
-------------------------------------------------------------------------------------
BANKS -- 7.7%
Diversified Banks -- 5.2%
1,773,014 Bank of America Corp. $ 41,382,147
439,611 JPMorgan Chase & Co. 38,246,157
570,545 US Bancorp 29,257,548
--------------
$ 108,885,852
-------------------------------------------------------------------------------------
Regional Banks -- 2.5%
429,675 The PNC Financial Services Group, Inc. $ 51,453,584
--------------
Total Banks $ 160,339,436
-------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 10.8%
Consumer Finance -- 2.4%
303,741 American Express Co. $ 24,071,474
394,163 Discover Financial Services, Inc. 24,670,662
--------------
$ 48,742,136
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 21
Schedule of Investments | 4/30/17 (unaudited) (continued)
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 7.0%
768,888 Invesco, Ltd. $ 25,327,171
224,045 Northern Trust Corp. 20,164,050
553,080 State Street Corp. 46,403,412
319,224 T. Rowe Price Group, Inc. 22,629,789
658,996 The Bank of New York Mellon Corp. 31,012,352
--------------
$ 145,536,774
-------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.4%
690,233 Morgan Stanley Co. $ 29,935,405
--------------
Total Diversified Financials $ 224,214,315
-------------------------------------------------------------------------------------
INSURANCE -- 3.5%
Life & Health Insurance -- 2.4%
424,218 Lincoln National Corp. $ 27,968,693
614,991 Sun Life Financial, Inc. 21,721,482
--------------
$ 49,690,175
-------------------------------------------------------------------------------------
Multi-line Insurance -- 1.1%
468,013 The Hartford Financial Services Group, Inc. $ 22,633,109
--------------
Total Insurance $ 72,323,284
-------------------------------------------------------------------------------------
REAL ESTATE -- 2.7%
Hotel & Resort REIT -- 0.4%
336,165 Chesapeake Lodging Trust $ 7,836,006
-------------------------------------------------------------------------------------
Office REIT -- 1.5%
189,330 Alexandria Real Estate Equities, Inc. $ 21,301,518
91,814 SL Green Realty Corp. 9,634,043
--------------
$ 30,935,561
-------------------------------------------------------------------------------------
Residential REIT -- 0.5%
128,333 Camden Property Trust $ 10,565,656
-------------------------------------------------------------------------------------
Retail REIT -- 0.3%
331,872 Kimco Realty Corp. $ 6,733,683
--------------
Total Real Estate $ 56,070,906
-------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.5%
IT Consulting & Other Services -- 0.5%
200,000 Leidos Holdings, Inc. $ 10,532,000
--------------
Total Software & Services $ 10,532,000
-------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 2.6%
Communications Equipment -- 1.0%
605,458 Cisco Systems, Inc. $ 20,627,954
-------------------------------------------------------------------------------------
Computer Hardware Storage & Peripherals -- 1.0%
1,077,972 HP, Inc. $ 20,287,433
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
Electronic Manufacturing Services -- 0.6%
178,297 TE Connectivity, Ltd. $ 13,794,839
--------------
Total Technology Hardware & Equipment $ 54,710,226
-------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 4.5%
Semiconductor Equipment -- 1.1%
81,814 Cabot Microelectronics Corp.* $ 6,410,127
170,000 KLA-Tencor Corp. 16,697,400
--------------
$ 23,107,527
-------------------------------------------------------------------------------------
Semiconductors -- 3.4%
326,992 Intel Corp. $ 11,820,761
523,502 Microchip Technology, Inc. 39,566,281
304,271 Xilinx, Inc. 19,202,543
--------------
$ 70,589,585
--------------
Total Semiconductors & Semiconductor Equipment $ 93,697,112
-------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.4%
Integrated Telecommunication Services -- 0.4%
185,421 BCE, Inc. $ 8,449,635
--------------
Total Telecommunication Services $ 8,449,635
-------------------------------------------------------------------------------------
UTILITIES -- 7.2%
Electric Utilities -- 2.5%
800,138 Alliant Energy Corp. $ 31,461,426
348,814 Eversource Energy 20,719,552
--------------
$ 52,180,978
-------------------------------------------------------------------------------------
Gas Utilities -- 1.1%
433,986 National Fuel Gas Co. $ 24,034,145
-------------------------------------------------------------------------------------
Multi-Utilities -- 3.6%
374,126 Ameren Corp. $ 20,460,951
360,824 Consolidated Edison, Inc. 28,606,127
423,294 WEC Energy Group, Inc. 25,617,753
--------------
$ 74,684,831
--------------
Total Utilities $ 150,899,954
-------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,633,421,409) $2,082,624,456
-------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 100.0%
(Cost $1,633,421,409) (a) $2,082,624,456
-------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.0% $ 332,025
-------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $2,082,956,481
=====================================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipts.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 23
Schedule of Investments | 4/30/17 (unaudited) (continued)
REIT Real Estate Investment Trust.
+ Investment held by the Fund representing 5% or more of the
outstanding voting stock of such company.
(a) At April 30, 2017, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $1,617,689,865 was
as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $502,614,866
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (37,680,275)
------------
Net unrealized appreciation $464,934,591
============
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2017, aggregated $380,034,480 and $206,439,815,
respectively.
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain Funds and accounts for which Pioneer Investment
Management, Inc. (PIM), serves as the Fund's investment adviser, as set forth in
Rule 17a-7 under the Investment Company Act of 1940, pursuant to procedures
adopted by the Board of Trustees. Under these procedures, cross trades are
effected at current market prices. During the six months ended April 30, 2017,
the Fund did not engage in cross trade activity.
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.
The following is a summary of the inputs used as of April 30, 2017, in valuing
the Fund's investments:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $2,082,624,456 $-- $-- $2,082,624,456
--------------------------------------------------------------------------------
Total $2,082,624,456 $-- $-- $2,082,624,456
================================================================================
During the six months ended April 30, 2017, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Statement of Assets and Liabilities | 4/30/17 (unaudited)
ASSETS:
Investment in securities of unaffiliated issuers, at value
(cost $1,626,464,645) $2,043,605,007
Investment in securities of an affiliated issuer, at value (cost $6,956,764) 39,019,449
------------------------------------------------------------------------------------------------
Total investments in securities, at value (cost $1,633,421,409) $2,082,624,456
Foreign currency (cost $147,134) 134,347
Receivables --
Fund shares sold 3,457,733
Dividends 3,505,179
Other assets 106,937
------------------------------------------------------------------------------------------------
Total assets $2,089,828,652
================================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 4,186,492
Trustees fees 11,432
Due to custodian 1,932,278
Due to affiliates 191,331
Transfer agent expense payable 501,427
Accrued expenses 49,211
------------------------------------------------------------------------------------------------
Total liabilities $ 6,872,171
================================================================================================
NET ASSETS:
Paid-in capital $1,589,474,332
Undistributed net investment income 18,999,692
Accumulated net realized gain on investments and foreign
currency transactions 25,450,344
Net unrealized appreciation on investments 449,203,047
Net unrealized depreciation on other assets and liabilities
denominated in foreign currencies (170,934)
------------------------------------------------------------------------------------------------
Net assets $2,082,956,481
================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $856,965,563/25,408,545 shares) $ 33.73
Class C (based on $159,305,453/4,807,335 shares) $ 33.14
Class K (based on $65,657,113/1,942,898 shares) $ 33.79
Class R (based on $98,181,495/2,864,878 shares) $ 34.27
Class Y (based on $902,846,857/26,462,786 shares) $ 34.12
MAXIMUM OFFERING PRICE:
Class A ($33.73 (divided by) 94.25%) $ 35.79
================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 25
Statement of Operations (unaudited)
For the Six Months Ended 4/30/17
INVESTMENT INCOME:
Dividends (including dividend income from affiliated issuer of
$313,574 and net of foreign tax withheld of $154,553) $ 25,543,304
Interest 6,312
-------------------------------------------------------------------------------------------------
Total investment income $ 25,549,616
=================================================================================================
EXPENSES:
Management fees $ 5,873,802
Transfer agent fees
Class A 467,068
Class C 72,738
Class K 226
Class R 118,827
Class Y 457,434
Distribution fees
Class A 1,045,093
Class C 768,063
Class R 235,868
Shareholder communications expense 28,029
Administrative expense 335,462
Custodian fees 15,139
Registration fees 65,274
Professional fees 38,552
Printing expense 7,415
Fees and expenses of nonaffiliated Trustees 50,112
Miscellaneous 41,818
-------------------------------------------------------------------------------------------------
Total expenses $ 9,620,920
-------------------------------------------------------------------------------------------------
Net investment income $ 15,928,696
=================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 26,349,140
Other assets and liabilities denominated in
foreign currencies 1,369 $ 26,350,509
-------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments (including from affiliated Issuer
of ($6,271,470)) $ 171,587,484
Other assets
and liabilities denominated in foreign currencies 22,587 $171,610,071
-------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments
and foreign currency transactions $197,960,580
-------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $213,889,276
=================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------
Six Months
Ended
4/30/17 Year Ended
(unaudited) 10/31/16
--------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 15,928,696 $ 33,424,750
Net realized gain (loss) on investments
and foreign currency transactions 26,350,509 185,331,414
Change in net unrealized appreciation (depreciation)
on investments and foreign currency transactions 171,610,071 (94,103,338)
--------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 213,889,276 $ 124,652,826
--------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.25 and $0.64 per share, respectively) $ (6,446,167) $ (14,631,603)
Class C ($0.13 and $0.39 per share, respectively) (641,631) (1,524,980)
Class K ($0.31 and $0.74 per share, respectively) (526,449) (700,775)
Class R ($0.18 and $0.50 per share, respectively) (523,020) (1,200,362)
Class Y ($0.29 and $0.72 per share, respectively) (7,290,419) (13,191,469)
Net realized gain:
Class A ($3.70 and $2.58 per share, respectively) $ (81,956,696) $ (55,000,813)
Class C ($3.70 and $2.58 per share, respectively) (15,474,859) (8,860,057)
Class K ($3.70 and $2.58 per share, respectively) (5,352,610) (1,615,497)
Class R ($3.70 and $2.58 per share, respectively) (9,385,001) (5,592,240)
Class Y ($3.70 and $2.58 per share, respectively) (74,716,403) (39,208,270)
--------------------------------------------------------------------------------------------
Total distributions to shareowners $ (202,313,255) $ (141,526,066)
--------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 423,085,405 $ 515,783,547
Reinvestment of distributions 179,655,475 127,690,144
Cost of shares repurchased (247,187,828) (383,348,914)
--------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 355,553,052 $ 260,124,777
--------------------------------------------------------------------------------------------
Net increase in net assets $ 367,129,073 $ 243,251,537
NET ASSETS:
Beginning of period 1,715,827,408 1,472,575,871
--------------------------------------------------------------------------------------------
End of period $2,082,956,481 $1,715,827,408
--------------------------------------------------------------------------------------------
Undistributed net investment income $ 18,999,692 $ 18,498,682
============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 27
Statements of Changes in Net Assets (continued)
-----------------------------------------------------------------------------------------
Six Months Six Months
Ended Ended Year Year
4/30/17 4/30/17 Ended Ended
Shares Amount 10/31/16 10/31/16
(unaudited) (unaudited) Shares Amount
-----------------------------------------------------------------------------------------
Class A
Shares sold 3,456,661 $ 115,454,733 4,060,980 $ 132,286,073
Reinvestment of distributions 2,613,121 83,905,591 2,064,854 66,476,005
Less shares repurchased (3,089,759) (104,302,024) (4,983,984) (162,722,871)
-----------------------------------------------------------------------------------------
Net increase 2,980,023 $ 95,058,300 1,141,850 $ 36,039,207
=========================================================================================
Class C
Shares sold 871,361 $ 28,525,953 1,458,384 $ 46,759,574
Reinvestment of distributions 419,608 13,217,652 250,188 7,918,920
Less shares repurchased (701,915) (23,086,677) (913,737) (29,060,644)
-----------------------------------------------------------------------------------------
Net increase 589,054 $ 18,656,928 794,835 $ 25,617,850
=========================================================================================
Class K
Shares sold 555,307 $ 18,608,124 974,748 $ 32,851,497
Reinvestment of distributions 173,712 5,594,455 62,937 2,041,453
Less shares repurchased (211,414) (7,075,463) (219,469) (7,376,946)
-----------------------------------------------------------------------------------------
Net increase 517,605 $ 17,127,116 818,216 $ 27,516,004
=========================================================================================
Class R
Shares sold 462,408 $ 15,727,500 875,045 $ 28,894,379
Reinvestment of distributions 248,264 8,090,059 184,599 6,015,720
Less shares repurchased (337,203) (11,431,953) (746,446) (24,716,408)
-----------------------------------------------------------------------------------------
Net increase 373,469 $ 12,385,606 313,198 $ 10,193,691
=========================================================================================
Class Y
Shares sold 7,244,205 $ 244,769,095 8,320,341 $ 274,992,024
Reinvestment of distributions 2,118,223 68,847,718 1,389,394 45,238,046
Less shares repurchased (2,985,194) (101,291,711) (4,814,459) (159,472,045)
-----------------------------------------------------------------------------------------
Net increase 6,377,234 $ 212,325,102 4,895,276 $ 160,758,025
=========================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Financial Highlights
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/17 Ended Ended Ended Ended Ended
(unaudited) 10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
-----------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 33.76 $ 34.41 $ 36.47 $ 34.35 $ 27.96 $ 26.19
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.27(a) $ 0.68(a) $ 0.68(a) $ 0.96 $ 0.75 $ 1.05
Net realized and unrealized gain (loss) on investments 3.65 1.89 1.16 3.11 6.53 1.56
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.92 $ 2.57 $ 1.84 $ 4.07 $ 7.28 $ 2.61
-----------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.25) $ (0.64) $ (0.75) $ (0.80) $ (0.89) $ (0.84)
Net realized gain (3.70) (2.58) (3.15) (1.15) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (3.95) $ (3.22) $ (3.90) $ (1.95) $ (0.89) $ (0.84)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.03) $ (0.65) $ (2.06) $ 2.12 $ 6.39 $ 1.77
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.73 $ 33.76 $ 34.41 $ 36.47 $ 34.35 $ 27.96
===================================================================================================================================
Total return* 12.29% 8.11% 5.30% 12.33% 26.52% 10.09%
Ratio of net expenses to average net assets 1.02%** 1.04% 1.06% 1.09% 1.10% 1.14%
Ratio of net investment income (loss) to average net assets 1.59%** 2.10% 1.99% 2.56% 2.39% 3.86%
Portfolio turnover rate 21%** 35% 40% 29% 26% 49%
Net assets, end of period (in thousands) $856,966 $757,158 $732,397 $769,869 $826,039 $679,254
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 29
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/17 Ended Ended Ended Ended Ended
(unaudited) 10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
-----------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 33.24 $ 33.91 $ 36.03 $ 33.94 $ 27.64 $ 25.91
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.14(a) $ 0.43(a) $ 0.42(a) $ 0.62 $ 0.47 $ 0.84
Net realized and unrealized gain (loss) on investments 3.59 1.87 1.13 3.17 6.50 1.54
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.73 $ 2.30 $ 1.55 $ 3.79 $ 6.97 $ 2.38
-----------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.13) $ (0.39) $ (0.52) $ (0.55) $ (0.67) $ (0.65)
Net realized gain (3.70) (2.58) (3.15) (1.15) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (3.83) $ (2.97) $ (3.67) $ (1.70) $ (0.67) $ (0.65)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.10) $ (0.67) $ (2.12) $ 2.09 $ 6.30 $ 1.73
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.14 $ 33.24 $ 33.91 $ 36.03 $ 33.94 $ 27.64
===================================================================================================================================
Total return* 11.87% 7.34%(b) 4.49% 11.57% 25.61% 9.26%
Ratio of net expenses to average net assets 1.75%** 1.77% 1.80% 1.80% 1.84% 1.86%
Ratio of net investment income (loss) to average net assets 0.87%** 1.34% 1.24% 1.83% 1.62% 3.13%
Portfolio turnover rate 21%** 35% 40% 29% 26% 49%
Net assets, end of period (in thousands) $159,305 $140,199 $116,090 $115,762 $104,890 $ 77,219
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2016, the total return would
have been 7.30%.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
--------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year
4/30/17 Ended Ended Ended 12/20/12
(unaudited) 10/31/16 10/31/15 10/31/14 to 10/31/13
--------------------------------------------------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 33.81 $ 34.44 $ 36.52 $ 34.38 $ 28.30
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.33(b) $ 0.80(b) $ 0.80(b) $ 0.96 $ 0.03
Net realized and unrealized gain (loss) on investments 3.66 1.89 1.17 3.27 6.63
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.99 $ 2.69 $ 1.97 $ 4.23 $ 6.66
--------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.31) $ (0.74) $ (0.90) $ (0.94) $ (0.58)
Net realized gain (3.70) (2.58) (3.15) (1.15) --
--------------------------------------------------------------------------------------------------------------------------
Total distributions $ (4.01) $ (3.32) $ (4.05) $ (2.09) $ (0.58)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.02) $ (0.63) $ (2.08) $ 2.14 $ 6.08
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.79 $ 33.81 $ 34.44 $ 36.52 $ 34.38
==========================================================================================================================
Total return* 12.49% 8.50% 5.67% 12.82% 23.72%(a)
Ratio of net expenses to average net assets 0.66%** 0.67% 0.67% 0.69% 0.66%**
Ratio of net investment income (loss) to average net assets 1.95%** 2.42% 2.32% 2.24% 1.84%**
Portfolio turnover rate 21%** 35% 40% 29% 26%
Net assets, end of period (in thousands) $ 65,657 $48,194 $20,908 $10,849 $ 117
==========================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
(a) Not annualized.
(b) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 31
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/17 Ended Ended Ended Ended Ended
(unaudited) 10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
----------------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 34.24 $ 34.83 $ 36.88 $ 34.71 $ 28.24 $ 26.45
----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.21(a) $ 0.57(a) $ 0.57(a) $ 0.88 $ 0.72 $ 1.03
Net realized and unrealized gain (loss) on investments 3.70 1.92 1.16 3.11 6.54 1.52
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.91 $ 2.49 $ 1.73 $ 3.99 $ 7.26 $ 2.55
----------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.18) $ (0.50) $ (0.63) $ (0.67) $ (0.79) $ (0.76)
Net realized gain (3.70) (2.58) (3.15) (1.15) -- --
----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (3.88) $ (3.08) $ (3.78) $ (1.82) $ (0.79) $ (0.76)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.03 $ (0.59) $ (2.05) $ 2.17 $ 6.47 $ 1.79
----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.27 $ 34.24 $ 34.83 $ 36.88 $ 34.71 $ 28.24
==================================================================================================================================
Total return* 12.07% 7.73% 4.90% 11.95% 26.13% 9.76%
Ratio of net expenses to average net assets 1.41%** 1.40% 1.41% 1.43% 1.41% 1.41%
Ratio of net investment income (loss) to average net assets 1.21%** 1.73% 1.64% 2.22% 2.09% 3.62%
Portfolio turnover rate 21%** 35% 40% 29% 26% 49%
Net assets, end of period (in thousands) $98,181 $85,307 $75,876 $79,042 $85,986 $79,557
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
-----------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/17 Ended Ended Ended Ended Ended
(unaudited) 10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
-----------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 34.10 $ 34.71 $ 36.77 $ 34.62 $ 28.17 $ 26.38
-----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.31(a) $ 0.77(a) $ 0.78(a) $ 0.98 $ 0.78 $ 1.05
Net realized and unrealized gain (loss) on investments 3.70 1.92 1.16 3.23 6.67 1.67
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.01 $ 2.69 $ 1.94 $ 4.21 $ 7.45 $ 2.72
-----------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.29) $ (0.72) $ (0.85) $ (0.91) $ (1.00) $ (0.93)
Net realized gain (3.70) (2.58) (3.15) (1.15) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (3.99) $ (3.30) $ (4.00) $ (2.06) $ (1.00) $ (0.93)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.02 $ (0.61) $ (2.06) $ 2.15 $ 6.45 $ 1.79
-----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.12 $ 34.10 $ 34.71 $ 36.77 $ 34.62 $ 28.17
===================================================================================================================================
Total return* 12.44% 8.40% 5.56% 12.67% 26.98% 10.47%
Ratio of net expenses to average net assets 0.77%** 0.77% 0.78% 0.79% 0.76% 0.77%
Ratio of net investment income (loss) to average net assets 1.83%** 2.34% 2.26% 2.85% 2.68% 4.20%
Portfolio turnover rate 21%** 35% 40% 29% 26% 49%
Net assets, end of period (in thousands) $902,847 $684,969 $527,305 $510,416 $448,509 $322,567
===================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 33
Notes to Financial Statements | 4/30/17 (unaudited)
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 five classes of shares designated as Class A, Class C, Class K,
Class R and Class Y shares. 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 of Trustees 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 or Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles (U.S. GAAP) that require the management
of the Fund to 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 Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
34 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
A. Security Valuation
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.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity 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. The fund may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
Securities for which independent pricing services or broker-dealers are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of Pioneer Investment
Management, Inc. (PIM), the Fund's investment adviser and a wholly owned
indirect subsidiary of UniCredit S.p.A. (UniCredit), pursuant to procedures
adopted by the Fund's Board of Trustees. PIM's fair valuation team uses
fair value methods approved by the Valuation Committee of the Board of
Trustees. PIM's fair valuation team is responsible for monitoring
developments that may impact fair valued securities and for discussing and
assessing fair values on an ongoing basis, and at least quarterly, with the
Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 35
disasters, terrorist activity or trading halts. Thus, the valuation of the
Fund's securities may differ significantly from exchange prices and such
differences could be material.
At April 30, 2017, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. 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.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of October 31, 2016, the Fund did not accrue any interest or penalties with
respect to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years 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. GAAP. 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.
36 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the fiscal year ended October 31, 2016 was as follows:
---------------------------------------------------------------------------
2016
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 31,249,189
Long-term capital gain 110,276,877
---------------------------------------------------------------------------
Total $141,526,066
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2016:
---------------------------------------------------------------------------
2016
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,870,936
Undistributed long term capital gain 186,881,606
Net unrealized appreciation 293,153,586
---------------------------------------------------------------------------
Total $481,906,128
===========================================================================
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 REIT holdings, common stock holdings and partnerships.
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit, earned $100,954
in underwriting commissions on the sale of Class A shares during the six
months ended April 30, 2017.
E. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class C and Class R shares of the Fund,
respectively (see Note 4). Class K and Class Y shares do not pay
distribution fees. All expenses and fees paid to the Fund's transfer agent
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).
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 37
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, Class K, Class R and Class
Y shares can reflect different transfer agent and distribution expense
rates.
F. Risks
The value of securities held by the fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
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.
2. Management Agreement
PIM 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 six months ended April 30, 2017,
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
$144,653, in management fees, administrative costs and certain other
reimbursements payable to PIM at April 30, 2017.
3. Transfer Agent
Boston Financial Data Services, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
38 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings and outgoing phone calls. For the six
months ended April 30, 2017, such out-of-pocket expenses by class of shares were
as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $14,646
Class C 1,018
Class K 285
Class R 1
Class Y 12,079
--------------------------------------------------------------------------------
Total $28,029
================================================================================
4. Distribution and Service Plans
The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A, 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 C shares. The fee for Class C
shares consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class C shares. 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 $46,678 in distribution
fees payable to PFD at April 30, 2017.
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 and
Class Y shares) may be subject to a contingent deferred sales charge (CDSC). A
CDSC of 1.00% may be imposed on redemptions of certain net asset value purchases
of Class A shares within 12 months of purchase. Redemptions of Class C shares
within 12 months of purchase are subject to a CDSC of 1.00%, based on the lower
of cost or market value of shares being redeemed. Shares purchased as part of an
exchange remain subject to any CDSC that applied to
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 39
the original purchase of those shares. There is no CDSC for Class K, Class R or
Class Y shares. Proceeds from the CDSCs are paid to PFD. For the six months
ended April 30, 2017, CDSCs in the amount of $68,128 were paid to PFD.
5. 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 in which the Fund participated until February 9, 2016 was in the
amount of $240 million. The credit facility in which the fund participated until
February 7, 2017 was in the amount of $220 million. Effective February 8, 2017,
the Fund participated in a facility that is in the amount of $195 million. Under
such facility, depending on the type of loan, interest on borrowings is payable
at the London Interbank Offered Rate (LIBOR) plus 0.85% 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 or (c) 2% plus the overnight
Eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the six months ended April 30, 2017, the Fund had no borrowings
under the credit facility.
6. 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 six months ended April 30, 2017:
--------------------------------------------------------------------------------------------------
Beginning Corporate
Balance Purchases Sales Actions Ending Dividend Realized
Affiliates (shares) (shares) (shares) (shares) (shares) Income Value Gain
--------------------------------------------------------------------------------------------------
The Gorman-
Rupp Co. 1,363,363 -- -- -- 1,363,363 $313,574 $39,019,449 $--
40 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
ADDITIONAL INFORMATION (unaudited)
Pioneer Investment Management, Inc. (the "Adviser"), the Fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On December 12, 2016, UniCredit announced that it has entered
into a binding agreement for the sale of its Pioneer Investments business, which
includes the Adviser, to Amundi (the "Transaction"). Amundi is headquartered in
Paris, France, and, as of September 30, 2016, had more than $1.1 trillion in
assets under management worldwide. The closing of the Transaction is expected to
happen in 2017, subject to certain regulatory and antitrust approvals, and other
conditions.
Under the Investment Company Act of 1940, the closing of the Transaction will
cause the Fund's current investment advisory agreement with the Adviser to
terminate. Accordingly, the Fund's Board of Trustees has approved a new
investment advisory agreement for the Fund, which has been submitted to the
shareholders of the Fund for their approval.
Change in Independent Registered Public Accounting Firm
Deloitte & Touche LLP, the Fund's independent registered public accounting firm,
has informed the Board that it will no longer be independent with respect to the
Fund upon the completion of the Transaction and, accordingly, that it intends to
resign as the Fund's independent registered public accounting firm upon the
completion of the Transaction. The Board will engage a new independent
registered public accounting firm for the Fund upon the completion of the
Transaction.
During the periods that Deloitte & Touche LLP has served as the Fund's
independent registered public accounting firm, including the Fund's two most
recent fiscal years, Deloitte & Touche LLP's reports on the Fund's financial
statements have not contained an adverse opinion or disclaimer of opinion and
have not been qualified or modified as to uncertainty, audit scope or accounting
principles. Further, there have been no disagreements with Deloitte & Touche LLP
on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which, if not resolved to the
satisfaction of Deloitte & Touche LLP, would have caused Deloitte & Touche LLP
to make reference to the subject matter of the disagreement in connection with
its report on the financial statements. In addition, there have been no
reportable events of the kind described in Item 304(a)(1)(v) of Regulation S-K
under the Securities Exchange Act of 1934.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 41
Approval of New and Interim Management Agreements
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Equity Income Fund (the Fund) pursuant to an investment management
agreement between PIM and the Fund.
PIM is the principal U.S. asset management business of Pioneer Investments, a
group of companies owned by Pioneer Global Asset Management S.p.A. ("PGAM").
PGAM is a wholly-owned subsidiary of UniCredit S.p.A. ("UniCredit"). UniCredit
and PGAM have entered into a binding agreement to sell Pioneer Investments,
including PIM, to Amundi (the "Transaction"). Upon the consummation of the
transaction, PIM will become an indirect wholly-owned subsidiary of Amundi and
Amundi's wholly-owned subsidiary, Amundi USA, Inc. The closing of the
Transaction is expected to happen in 2017.
Under the Investment Company Act of 1940, the Fund's current investment
management agreement (the "Current Management Agreement") will terminate
automatically upon the consummation of the Transaction. In order for PIM to
continue to manage the Fund after the consummation of the Transaction, the
Trustees and shareholders of the Fund must approve a new investment management
agreement for the Fund (the "New Management Agreement"). As discussed below, the
Board of Trustees of the Fund approved the New Management Agreement at a meeting
held on March 6-7, 2017. The New Management Agreement has been submitted to the
shareholders of the Fund for their approval at a meeting to be held on June 13,
2017. If the shareholders of the Fund do not approve the New Management
Agreement and the Transaction is completed, an interim investment management
agreement between PIM and the Fund (the "Interim Management Agreement") will
take effect upon the closing of the Transaction. The Board of Trustees of the
Fund also approved the Interim Management Agreement at the March 6-7, 2017
meeting.
Board Evaluation of the New and Interim Management Agreements
The Board evaluated the Transaction and the New Management Agreement and Interim
Management Agreement for the Fund. In connection with their evaluation of the
Transaction and the New Management Agreement for the Fund, the Trustees
requested such information as they deemed reasonably necessary, including: (a)
the structure of the Transaction and the strategy underlying the Transaction;
(b) the anticipated benefits of the Transaction to the Fund and its
shareholders; (c) the post-Transaction plans for PIM, including Amundi's plans
for integration of Pioneer Investments and PIM with its existing asset
management businesses and plans for the future development of PIM; (d) the
effect of the Transaction on the ongoing services provided to
42 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
the Fund, including the need to select a new independent registered public
accounting firm for the Fund, and any plans to modify the operations of the
Fund; (e) the stability and continuity of PIM's management and key employees,
including compensation and benefits to PIM's key employees, and retention plans
and incentive plan structure; (f) the post-Transaction indebtedness and
financial resources of PIM; (g) Amundi's legal and operational structure, its
principal shareholders and senior management, its investment management, risk
management, administrative, legal and compliance functions; (h) certain
regulatory matters relating to Amundi's affiliates; and (i) Amundi's commitment
to the United States, including the role of PIM in the larger Amundi business.
The Trustees also requested and obtained the following information in connection
with their evaluation of the Transaction and the New Management Agreement for
the Fund: (i) memoranda provided by Fund counsel that summarized the legal
standards and other considerations that are relevant to the Trustees in their
deliberations regarding the New Management Agreement; (ii) the qualifications of
the investment management teams for the Fund, as well as the level of investment
by the Fund's portfolio managers in the Fund; (iii) the Fund's management fees
and total expense ratios, the financial statements of PIM and its pre- and
post-Transaction parent companies, profitability analyses from PIM, and analyses
from PIM as to possible economies of scale; (iv) the profitability of the
institutional business of PIM and PIM's affiliate, Pioneer Institutional Asset
Management, Inc. ("PIAM") as compared to that of PIM's fund management business;
and (v) the differences between the fees and expenses of the Fund and the fees
and expenses of PIM's and PIAM's institutional accounts, as well as the
different services provided by Adviser to the Fund and by PIM and PIAM to the
institutional accounts. In addition, the Trustees considered the information
provided at regularly scheduled meetings throughout the year regarding the
Fund's performance and risk attributes, including through meetings with
investment management personnel, and took into account other information related
to the Fund provided to the Trustees at regularly scheduled meetings. The
Trustees also considered information they had received in their review of the
continuance of the Current Management Agreement for the Fund in September 2016.
At meetings held on January 9, 2017 and January 10, 2017, the Trustees met with
representatives of Amundi and PGAM, including separate meetings of the Trustees
who are not "interested persons" of the Fund Complex ("Independent Trustees")
and counsel with representatives of Amundi and PGAM, and subsequently with
representatives of Amundi. In those meetings, they received an extensive
presentation from the representatives of Amundi, including the chief executive
officer of Amundi, describing Amundi's background and history, its global asset
management activities, the growth of
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 43
its business, and its status as the largest asset management firm in Europe and
one of the largest globally; its capital structure and financial resources,
including information as to the financing of the Transaction; its principal
investors, including its majority investor Credit Agricole S.A., and Credit
Agricole's long-term commitment to the asset management business; the philosophy
and strategy underlying the Transaction and the complementarity of Amundi's and
Pioneer Investments' respective asset management businesses; Amundi's various
operating and investment committees and how they would likely interact with PIM;
the proposed integration process, including the progress to date and the
establishment of various integration work streams; Amundi's plans for management
of PIM; Amundi's philosophy as to compensation of key employees and its general
intentions with respect to incentive plans for key employees of PIM; Amundi's
preliminary plans to achieve cost and other synergies; and opportunities to
further develop the business of PIM and PIAM, including in the area of
institutional asset management, and how that would benefit shareholders of the
Pioneer Funds.
In those meetings, the representatives of Amundi confirmed their intention that
the Chief Executive Officer and Chief Investment Officer of PIM would remain in
their current positions, and confirmed that they do not currently foresee major
changes in the day-to-day investment management operations of PIM with respect
to the Fund as a direct result of the Transaction. They discussed incentive
arrangements for key personnel that would continue after the closing of the
Transaction and their plans to establish a new long-term incentive plan
following the closing. They also generally discussed ways in which PIM could
potentially draw on the expanded global resources of Amundi post-Transaction. At
those meetings, the Independent Trustees identified certain areas to which they
requested further information, including as to trading and execution of
securities transactions, research and portfolio management and potential changes
in investment process, particularly where asset classes managed by PIM would
overlap with asset classes managed by Amundi, the continued availability of
resources currently at Pioneer Investments or elsewhere within Amundi to assist
in management of certain Funds, and any anticipated significant changes in
operations. The Independent Trustees considered the uncertainty as to whether
the Fund's independent registered public accounting firm could continue to act
in that capacity after the closing of the Transaction. The Independent Trustees
also met with counsel to review the information they had received to date and to
discuss next steps.
Subsequently, the Trustees received further information from Amundi, including
written responses to questions raised by the Independent Trustees, and received
from PIM the information requested of it. The Independent Trustees reviewed the
information provided with counsel at telephonic meetings held on February 16,
2017 and February 27, 2017. The Trustees held
44 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
a special in-person Board meeting on March 6-7, 2017 for further consideration
of the New Management Agreements, the Interim Management Agreements and the
Transaction. The Trustees met again with senior executives of Amundi at the
March 6-7, 2017 meeting.
At the March 6-7, 2017 meeting, based on their evaluation of the information
provided by PIM and Amundi, the Trustees including the Independent Trustees
voting separately, approved the New Management Agreement and the Interim
Management Agreement for the Fund. In considering the New Management Agreement
for the Fund, the Trustees considered various factors that they determined were
relevant, including the factors described below. The Trustees did not identify
any single factor as the controlling factor in their determinations. The
Trustees considered the same factors with respect to the Interim Management
Agreement for the Fund.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund and that are expected to be provided by PIM to
the Fund following the consummation of the Transaction. The Trustees reviewed
the terms of the New Management Agreement, and noted that such terms are
substantially similar to the terms of the Current Management Agreement, except
for different execution dates, effective dates and termination dates. The
Trustees reviewed PIM's investment approach for the Fund and its research
process. The Trustees considered the resources of PIM and the personnel of PIM
who provide investment management services to the Fund. They also reviewed the
amount of non-investment resources and personnel of PIM that are involved in
PIM's services to the Fund, including PIM's compliance and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by PIM's senior management to the Pioneer Fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations and that PIM would continue to provide those
investment management and research services and resources to the Fund following
the consummation of the Transaction. The Trustees also considered that, as
administrator, PIM would continue to be responsible for the administration of
the Fund's business and other affairs. The Trustees considered the fees to be
paid to PIM for the provision of administration services.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 45
The Trustees considered that Deloitte & Touche LLP has informed the Board that
it will no longer be independent with respect to the Fund upon the completion of
the Transaction and, accordingly, that it will be necessary for the Board to
engage a new independent registered public accounting firm for the Fund.
The Trustees considered that the Transaction is not expected to have a material
adverse impact on the nature, scope and overall quality of services provided to
the Fund and its shareholders, including investment management, risk management,
administrative, compliance, legal and other services, as a result of the
Transaction.
In that regard, the Trustees considered that Amundi is one of the largest asset
managers globally, and that PIM may have access to additional research and
portfolio management capabilities as a result of the Transaction and that PIM,
as part of Amundi, is expected to have an enhanced global presence that may
contribute to an increase in the overall scale and resources of PIM.
Furthermore, in considering whether the Transaction would be expected to have a
material adverse impact on the nature, scope and overall quality of services
provided to the Fund and its shareholders, the Trustees considered the
statements by representatives of Amundi that they expect the Chief Executive
Officer and Chief Investment Officer of PIM to remain in their current positions
and that they do not currently foresee major changes in the day-to-day
investment management operations of PIM as a direct result of the Transaction,
or the risk management, legal or compliance services provided by PIM, with
respect to the Fund. They further considered the current incentive arrangements
for key personnel of PIM that would continue after the closing of the
Transaction. They also noted Amundi's stated intention to establish a new
long-term incentive plan following the closing.
The Trustees also took into account their experience in evaluating the proposed
combination of Pioneer Investments and Santander Asset Management, which was
announced in September, 2014 and abandoned in July, 2016. In light of, among
other things, this experience, the Trustees determined that they were not able
to identify any realistic alternatives to approving the New Management Agreement
that would provide the level of services to the Fund and its shareholders that
are expected to be provided by PIM after the closing of the Transaction.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that PIM would continue to provide to the Fund under the
New Management Agreement would be satisfactory and consistent with the terms of
the New Management Agreement.
46 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Performance of the Fund
In considering the Fund's performance, the Trustees regularly reviewed and
discussed throughout the year data prepared by PIM and information comparing the
Fund's performance with the performance of its peer group of funds, as
classified by each of Morningstar, Inc. (Morningstar) and Lipper, and the
performance of the Fund's benchmark index. They also discussed the Fund's
performance with PIM on a regular basis.
The Trustees' regular reviews and discussions were factored into the Trustees'
deliberations concerning the approval of the New Management Agreement.
Management Fee and Expenses
The Trustees noted that the stated management fees to be paid by the Fund are
identical under the Current Management Agreement and the New Management
Agreement. The Trustees considered information showing the fees and expenses of
the Fund in comparison to the management fees and expense ratios of its peer
group of funds as classified by Morningstar and also to the expense ratios of a
peer group of funds selected on the basis of criteria determined by the
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Trust Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners. To the extent applicable, the Trustees also
considered the impact of transfer agency, sub-transfer agency, and other
non-management fee expenses on the expense ratios of the Fund. The Trustees
noted that they separately review the Fund's transfer agency, sub-transfer
agency and intermediary arrangements and that the results of the most recent
such review were considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee as of September 30, 2016
was in the second quintile relative to the management fees paid by other funds
in its Morningstar category for the comparable period. The Trustees also
considered the breakpoint in the management fee schedule and the reduced fee
rate above a certain asset level. The Trustees considered that the expense ratio
of the Fund's Class A shares as of September 30, 2016 was in the second quintile
relative to its Morningstar category and in the second quintile relative to its
Strategic Insight peer group, in each case for the comparable period.
The Trustees reviewed management fees charged by PIM and PIAM to institutional
and other clients, including publicly offered European funds sponsored by PIM's
affiliates, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and PIM's and
PIAM's costs in providing services to the other clients and
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 47
considered the differences in management fees and profit margins for fund and
non-fund services. In evaluating the fees associated with PIM's and PIAM's
client accounts, the Trustees took into account the respective demands,
resources and complexity associated with the Fund and other client accounts. The
Trustees noted that in some instances the fee rates for those clients were lower
than the management fee for the Fund and considered that, under both the Current
Management Agreement and the New Management Agreement, PIM would perform
additional services for the Fund that it does not provide to those other clients
or services that are broader in scope, including oversight of the Fund's other
service providers and activities related to compliance and the extensive
regulatory and tax regimes to which the Fund is subject. The Trustees also
considered the different risks associated with PIM's management of the Fund and
PIM's and PIAM's management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services to be provided
by PIM.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results, including the profit margins, realized by PIM and PIAM from
non-fund businesses. The Trustees considered PIM's profit margins with respect
to the Fund in comparison to the limited industry data available and noted that
the profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with the Fund and Fund shareholders. The Trustees
recognize that economies of scale are difficult to identify and quantify, and
that, among other factors that may be relevant, are the following: fee levels,
expense subsidization, investment by PIM in research and analytical capabilities
and PIM's commitment and resource allocation to the Fund. The Trustees noted
that profitability also may be an indicator of the availability of any economies
of scale, although profitability may vary for other reasons including due to
reductions in expenses. The Trustees concluded that economies of scale, if any,
were being appropriately shared with the Fund.
48 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
Other Benefits
The Trustees considered the other benefits that PIM enjoys from its relationship
with the Fund. The Trustees considered the character and amount of fees paid or
to be paid by the Fund, other than under the Current Management Agreement or the
New Management Agreement, for services provided by PIM and its affiliates. The
Trustees further considered the revenues and profitability of PIM's businesses
other than the Fund business. To the extent applicable, the Trustees also
considered the benefits to the Fund and to PIM and its affiliates from the use
of "soft" commission dollars generated by the Fund to pay for research and
brokerage services.
The Trustees considered that following the completion of the Transaction, PIM
will be the principal U.S. asset management business of Amundi, and that
Amundi's worldwide asset management business will manage over $1.38 trillion in
assets (including the Pioneer Funds). This may create opportunities for PIM,
PIAM and Amundi that derive from PIM's relationships with the Fund, including
Amundi's ability to market the services of PIM globally. The Trustees noted that
PIM may have access to additional research capabilities as a result of the
Transaction and Amundi's enhanced global presence that may contribute to an
increase of the overall scale of PIM. The Trustees considered that PIM and the
Fund are expected to receive reciprocal intangible benefits from the
relationship, including mutual brand recognition and, for the Fund, direct and
indirect access to the resources of a large global asset manager. The Trustees
concluded that any such benefits received by PIM as a result of its relationship
with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including the Independent Trustees, concluded that the New Management
Agreement and the Interim Management Agreement for the Fund, including the fees
payable thereunder, were fair and reasonable and voted to approve the New
Management Agreement and the Interim Management Agreement, and to recommend that
shareholders approve the New Management Agreement.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 49
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Ms. Monchak is a non-voting Advisory Trustee.
50 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
This page is for your notes.
Pioneer Equity Income Fund | Semiannual Report | 4/30/17 51
This page is for your notes.
52 Pioneer Equity Income Fund | Semiannual Report | 4/30/17
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:
--------------------------------------------------------------------------------
Pioneer Funds
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) 2017 Pioneer Investments 19381-11-0617
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.
N/A
(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.
N/A
(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.
N/A
(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.
N/A
(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.
N/A
(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.
N/A
(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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date June 27, 2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date June 27, 2017
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date June 27, 2017
* Print the name and title of each signing officer under his or her signature.