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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08448
Pioneer Emerging Markets Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, 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: November 30
Date of reporting period: December 1, 2002 through November 30, 2003
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
PIONEER
------------------------
EMERGING
MARKETS
FUND
Annual
Report
11/30/03
[LOGO] Pioneer
Investments
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 8
Schedule of Investments 11
Financial Statements 25
Notes to Financial Statements 34
Report of Independent Auditors 43
Trustees, Officers and Service Providers 45
Programs and Services for Pioneer Shareowners 52
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 11/30/03
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
The stock market rally that began last spring was still intact near year-end, as
signs of an economic recovery accumulated. Gross domestic product, a tally of
all goods and services produced in the United States, expanded sharply in the
third quarter, thanks to increased personal consumption, housing and business
spending, low short-term interest rates and lower taxes on individuals. Most
major market indicators showed solid year-to-date gains in mid-December, with
the NASDAQ Composite recording the sharpest rise, as investors sensed a renewal
of corporate technology spending after a long drought. Favorable economic news
included a burst of new manufacturing activity and welcome, if sluggish, job
creation. Meanwhile investors kept a wary eye on the news, as U.S. troops came
under daily fire in Iraq and tensions remained high elsewhere.
As the economic recovery gathered momentum, fixed-income investors who had
sought safety in U.S. Treasury issues grew less risk-averse. As a result,
corporate bonds moved broadly higher while the Treasury bond rally stalled. Some
of the biggest gains were recorded among lower-rated, high-yield bonds whose
issuers often depend on a strong economy to boost earnings. Bonds in emerging
and developed markets also did well, as economies stabilized and currencies,
notably the euro, rose against the slumping U.S. dollar.
Stocks and bonds, bonds and stocks
Over the past few years, investor sentiment has swung from stocks to bonds and
back again, from U.S. government-backed issues to corporate and international
bonds. Each sector has spent time in the spotlight and time backstage,
delivering periods of stronger or weaker performance relative to one another.
With sectors frequently moving in and out of favor, you can increase your
chances of holding investments that are performing well by owning several kinds
of securities, not just one or two. Through a process called asset allocation,
you can create an investment mix that reflects your needs, taking into account
such factors as your age, your financial goals and their timing and, of course,
your comfort level where risk is concerned.
Asset allocation is only one area in which a qualified investment professional
can serve you well. Ask your advisor to review how shifting markets may have
affected your asset allocation recently. And if you've never thought about asset
allocation before, now is the best time to start.
Like everyone at Pioneer, I appreciate your continued confidence in our products
and services.
Respectfully,
/s/ Osbert M. Hood
- ------------------
Osbert M. Hood
Pioneer Investment Management, Inc.
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 the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 11/30/03
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 21.6%
Materials 18.1%
Information Technology 12.0%
Energy 11.7%
Telecommunication Services 9.2%
Consumer Staples 8.5%
Consumer Discretionary 6.9%
Industrials 5.5%
Utilities 3.6%
Health Care 2.9%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
South Korea 17.5%
Brazil 12.2%
India 11.7%
Taiwan 10.3%
South Africa 8.6%
Thailand 5.7%
Russia 5.0%
Turkey 3.8%
Chile 3.4%
Malaysia 3.0%
Mexico 2.2%
Indonesia 2.2%
Peru 1.9%
Hong Kong 1.9%
Hungary 1.8%
Singapore 1.8%
Israel 1.5%
People's Republic of China 1.5%
Poland 1.3%
Other (individually less than 1%) 2.7%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
- ---------------------------------------------------------
1. Samsung Electronics Co. 4.05%
- ---------------------------------------------------------
2. Petroleo Brasilerio SA Petrobras (A.D.R.) 2.24%
- ---------------------------------------------------------
3. Compania de Minas Buenaventura SA 1.95%
- ---------------------------------------------------------
4. Anglo American Plc 1.89%
- ---------------------------------------------------------
5. AngloGold Ltd. (A.D.R.) 1.70%
- ---------------------------------------------------------
6. Lukoil Holding (A.D.R.) 1.57%
- ---------------------------------------------------------
7. Taiwan Semiconductor Manufacturing Co. 1.56%
- ---------------------------------------------------------
8. Pohang Iron & Steel Co., Ltd. (A.D.R.) 1.39%
- ---------------------------------------------------------
9. SK Telecom Co., Ltd. 1.36%
- ---------------------------------------------------------
10. Canara Bank Ltd. 1.21%
* This list excludes temporary cash and derivative investments. Fund holdings
will vary for other periods.
2
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 11/30/03 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 11/30/03 11/30/02
$14.47 $10.11
Net
Distributions per Share Investment Short-Term Long-Term
(12/1/02 - 11/30/03) Income Capital Gains Capital Gains
$ - $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Emerging
Markets Free Index.
Average Annual Total Returns
(As of November 30, 2003)
Net Asset Public Offering
Period Value Price*
Life-of-Class
(6/23/94) 3.60% 2.95%
5 Years 10.48 9.17
1 Year 43.13 34.86
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of the maximum 5.75% sales charge at the beginning of
the period.
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment+
Pioneer Emerging MSCI Emerging
Markets Fund* Markets Free Index
6/94 $ 9425 $10000
$ 9128 $11242
11/95 $ 8756 $ 9385
$10558 $10347
11/97 $11653 $ 8972
$ 7902 $ 6962
11/99 $12405 $10130
$ 9726 $ 7738
11/01 $ 8908 $ 7168
$ 9088 $ 7522
11/03 $13008 $ 7522
+ Index comparison begins June 30, 1994. The MSCI Emerging Markets Free Index
is an unmanaged, capitalization-weighted measure of securities trading in
26 emerging markets; it reflects only those securities available to foreign
investors. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any sales charges, fees
or expenses. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost. The performance table and graph do not reflect
the deduction of taxes that a shareowner would pay on Fund distributions or
redemption of Fund shares.
3
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 11/30/03 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 11/30/03 11/30/02
$13.46 $9.47
Net
Distributions per Share Investment Short-Term Long-Term
(12/1/02 - 11/30/03) Income Capital Gains Capital Gains
$ - $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the Morgan
Stanley Capital International (MSCI) Emerging Markets Free Index.
Average Annual Total Returns
(As of November 30, 2003)
If If
Period Held Redeemed*
Life-of-Class
(6/23/94) 2.83% 2.83%
5 Years 9.65 9.38
1 Year 42.13 38.13
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of the maximum applicable contingent deferred sales
charge (CDSC) at the end of the period. The maximum CDSC of 4% declines
over six years.
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment+
Pioneer Emerging MSCI Emerging
Markets Fund* Markets Free Index
6/94 $10000 $10000
$ 9644 $11242
11/95 $ 9199 $ 9385
$11011 $10347
11/97 $12069 $ 8972
$ 8112 $ 6962
11/99 $12641 $10130
$ 9822 $ 7738
11/01 $ 8924 $ 7168
$ 9048 $ 7522
11/03 $12860 $ 7522
+ Index comparison begins June 30, 1994. The MSCI Emerging Markets Free Index
is an unmanaged, capitalization-weighted measure of securities trading in
26 emerging markets; it reflects only those securities available to foreign
investors. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any sales charges, fees
or expenses. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost. The performance table and graph do not reflect
the deduction of taxes that a shareowner would pay on Fund distributions or
redemption of Fund shares.
4
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 11/30/03 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 11/30/03 11/30/02
$13.39 $9.42
Net
Distributions per Share Investment Short-Term Long-Term
(12/1/02 - 11/30/03) Income Capital Gains Capital Gains
$ - $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Emerging
Markets Free Index.
Average Annual Total Returns
(As of November 30, 2003)
Net Asset Public Offering
Period Value Price/CDSC*
Life-of-Class
(1/31/96) 2.43% 2.30%
5 Years 9.59 9.36
1 Year 42.14 40.65
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of the 1% sales charge at the beginning of the period.
The 1% contingent deferred sales charge (CDSC) applies to investments sold
within one year of purchase.
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Emerging MSCI Emerging
Markets Fund* Markets Free Index
1/96 $ 9900 $10000
$10285 $ 9855
11/97 $11273 $ 8546
$ 7559 $ 6631
11/99 $11709 $ 9649
$ 9129 $ 7370
11/01 $ 8291 $ 6827
$ 8407 $ 7165
11/03 $11950 $ 7165
The MSCI Emerging Markets Free Index is an unmanaged,
capitalization-weighted measure of securities trading in 26 emerging
markets; it reflects only those securities available to foreign investors.
Index returns are calculated monthly, assume reinvestment of dividends and,
unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost. The performance table and graph do not reflect
the deduction of taxes that a shareowner would pay on Fund distributions or
redemption of Fund shares.
5
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 11/30/03 CLASS R SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 11/30/03 4/1/03***
$14.51 $9.57
Net
Distributions per Share Investment Short-Term Long-Term
(4/1/03 - 11/30/03) Income Capital Gains Capital Gains
$0.010 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the Morgan
Stanley Capital International (MSCI) Emerging Markets Free Index.
Average Annual Total Returns
(As of November 30, 2003)
If If
Period Held Redeemed*
Life-of-Class**
(6/23/94) 3.46% 3.46%
5 Years 10.56 10.56
1 Year 43.63 42.63
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of a 1% CDSC. Shares sold within 18 months of purchase
may be subject to the CDSC.
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment+
Pioneer Emerging MSCI Emerging
Markets Fund* Markets Free Index
6/94 $10000 $10000
$ 9662 $11242
11/95 $ 9184 $ 9385
$11041 $10347
11/97 $12158 $ 8972
$ 8246 $ 6962
11/99 $12946 $10130
$10150 $ 7738
11/01 $ 9296 $ 7168
$ 9484 $ 7522
11/03 $13622 $ 7522
** Class R shares have no front-end load, may be subject to a back-end load
and are available to certain retirement plans. The performance of Class R
shares for the period prior to the public offering of Class R shares on
April 1, 2003 is based on the performance of Class A shares, reduced to
reflect the higher distribution and service fees of Class R shares. You do
not pay a sales charge on purchases of Class R shares, but will pay a CDSC
if you sell your shares within 18 months of purchase, unless you qualify
for a waiver.
*** Class R shares were first publicly offered on April 1, 2003.
+ Index comparison begins June 30, 1994. The MSCI Emerging Markets Free Index
is an unmanaged, capitalization-weighted measure of securities trading in
26 emerging markets; it reflects only those securities available to foreign
investors. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any sales charges, fees
or expenses. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share
prices fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost. The performance table and graph do not reflect
the deduction of taxes that a shareowner would pay on Fund distributions or
the redemption of Fund shares.
6
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 11/30/03 CLASS Y SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 11/30/03 11/30/02
$15.19 $10.51
Distributions per Share Income Short-Term Long-Term
(12/1/02 - 11/30/03) Dividends Capital Gains Capital Gains
$0.010 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the Morgan
Stanley Capital International (MSCI) Emerging Markets Free Index.
Average Annual Total Returns
(As of November 30, 2003)
If If
Period Held* Redeemed*
Life-of-Class
(4/9/98) 1.03% 1.03%
5 Year 11.43 11.43
1 Year 44.63 44.63
* Assumes reinvestment of distributions at net asset value.
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment+
Pioneer Emerging MSCI Emerging
Markets Fund* Markets Free Index
4/98 $10000 $10000
11/98 $ 6155 $ 7213
11/99 $ 9730 $10495
11/00 $ 7672 $ 8017
11/01 $ 7094 $ 7426
11/02 $ 7310 $ 7794
11/03 $10572 $ 7794
+ Index comparison begins April 30, 1998. The MSCI Emerging Markets Free
Index is an unmanaged, capitalization-weighted measure of securities
trading in 26 emerging markets; it reflects only those securities available
to foreign investors. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any
sales charges, fees or expenses. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost. The performance table and graph do not reflect
the deduction of taxes that a shareowner would pay on Fund distributions or
redemption of Fund shares.
7
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 11/30/03
- --------------------------------------------------------------------------------
For the 12 months ended November 30, 2003, Pioneer Emerging Markets Fund's Class
A, B and C shares delivered total returns at net asset value of 43.13%, 42.13%
and 42.14%, respectively. Over the same time period, the MSCI Emerging Markets
Free Index had a total return of 40.50%.
In the following discussion, Mark Madden, portfolio manager of Pioneer Emerging
Markets Fund, addresses the factors impacting the Fund's performance and the
outlook for emerging markets.
Q: What factors influenced the performance of emerging markets in the 12
months ended November 30, 2003?
A: After a slow start, emerging markets delivered strong returns this year as
a result of accelerating economic growth, attractive stock valuations,
strong commodity prices and low interest rates. Equity markets were weak in
the first quarter of the year due to concerns relating to the impending war
in Iraq and the spread of SARS. Markets began to turn around in April as
the war in Iraq proceeded better than expected and the spread of SARS was
contained. Equity markets across Asia and Latin America were among the best
performing this year, in part because their economies were expected to be
among the fastest growing in the world. Valuations in emerging markets are
still attractive relative to developed markets and continue to attract
global capital. Many emerging market countries are significant exporters of
commodities, so rising commodity prices have led to increasing trade
surpluses and increasing corporate profitability. As in the developed
economies of the United States, Europe and Japan, low interest rates are
prevalent in most emerging markets. In some countries that still have high
interest rates, such as Brazil and Turkey, inflation and borrowing rates
are declining, which we believe will lead to increased local investment in
equity markets.
Over the last 12 months, the total return for the Fund surpassed the
benchmark MSCI Emerging Markets Free Index, primarily due to good stock
selection in India and South Korea and to our emphasis on Brazil. In India,
we have been finding a large number of stocks with attractive valuations
and strong growth prospects, particularly in the banking and industrial
sectors. In South Korea, our positions in shipping and shipbuilding
companies did very well
8
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
as a result of increasing trade, tight shipping capacity and rapidly
increasing freight rates. In Brazil, we owned companies that benefited from
lower borrowing costs, a stronger currency and rising domestic consumer
demand.
Q: What is your investment strategy?
A: Our investment process is driven by rigorous research that focuses on
companies that we believe have strong long-term growth prospects and proven
management ability that sell at a discount to our estimation of fair value.
We look for companies that we feel are well positioned in countries and
industries with favorable long-term trends and growth potential. We strive
to manage risk through diversification among various countries, sectors and
companies while emphasizing stocks that are attractively valued.
Q: Where are you finding attractive opportunities in emerging markets?
A: In our last annual report, we noted that we were particularly optimistic
about the prospects for India, Brazil and Turkey. In the last 12 months,
India and Brazil have delivered outstanding returns in the portfolio.
Turkey also showed strong positive returns, although its proximity to Iraq
has made for more volatile equity prices. In all three countries we
continue to see what we consider positive trends and, therefore, we have
maintained our heavy positions. In India, growth trends remain strong and
valuations are still attractive. In Brazil, pent up domestic demand appears
to be accelerating. And in Turkey, the investment climate seems
increasingly attractive as the government attempts to steer the country
toward membership in the European Union.
As for sectors, we like the financial sector, which should see improved
growth and profitability due to stronger economic growth and potentially
higher interest rates. We are less optimistic on the technology sector,
where we do not believe stronger demand can be sustained. Technology stock
valuations are expensive relative to other sectors, profit margins continue
to be under pressure, and a weaker dollar may further erode profit margins
of emerging markets firms that export most of their production to the
United States.
9
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 11/30/03 (continued)
- --------------------------------------------------------------------------------
Q: What is your outlook?
A: Emerging markets have significantly outperformed the S&P 500 Index and the
MSCI World Index over the last three years. We continue to be optimistic
about the prospects for emerging markets because the same positive trends
that have led to this good performance are still in place. We expect some
correction in the coming year, but we also are optimistic that the
fundamentals of most of the emerging market economies are in a multi-year
upswing and that equity returns will be attractive in absolute terms as
well as relative to the developed equity markets. Stock valuations in
emerging markets are less expensive than in developed markets while
economic growth rates of developing countries are higher than those of
developed markets. In addition, many companies in emerging markets are
gaining global market share by delivering quality products and services at
very competitive prices. The main risk to these investments relates to the
potential for the current upswing in global growth to falter. On the other
hand, if growth is too strong, inflation may accelerate leading to higher
interest rates and lower stock valuations. We do expect volatility in
emerging markets to remain high, but we tend to view this volatility as an
opportunity to acquire stocks with strong long-term prospects at attractive
prices.
Investing in emerging markets carries its own set of risks, including but not
limited to, currency fluctuations, and social and economic instability. However,
we feel confident that the long-term prospects invite serious consideration.
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 the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
10
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/03
- --------------------------------------------------------------------------------
Shares Value
PREFERRED STOCKS - 2.9%
Capital Goods - 0.4%
Aerospace & Defense - 0.4%
30,500 Embraer Aircraft Corp. (A.D.R.) $ 897,310
------------
Total Capital Goods $ 897,310
------------
Banks - 0.8%
Diversified Banks - 0.8%
23,373,000 Banco Itau Holding Financeira $ 1,931,607
------------
Total Banks $ 1,931,607
------------
Telecommunication Services - 1.3%
Integrated Telecommunication Services - 0.8%
147,194 Tele Norte Leste Participacoes (A.D.R.) $ 2,079,851
------------
Wireless Telecommunication Services - 0.5%
32,500 Telemig Celular Participacoes (A.D.R.) $ 1,125,150
------------
Total Telecommunication Services $ 3,205,001
------------
Utilities - 0.4%
Electric Utilities - 0.4%
155,600 Centrais Electricas Brasileiras SA (A.D.R.) $ 1,095,424
------------
Total Utilities $ 1,095,424
------------
TOTAL PREFERRED STOCKS
(Cost $4,359,883) $ 7,129,342
------------
COMMON STOCKS - 89.6%
Energy - 10.8%
Integrated Oil & Gas - 7.0%
676,700 CNOOC Ltd. $ 1,394,584
474,200 Gas Authority of India, Ltd. 1,818,267
41,400 Lukoil Holding (A.D.R.) 3,569,011
225,400 Petroleo Brasilerio SA Petrobras (A.D.R.) 5,076,008
82,200 Surgutneftegaz (A.D.R.) 2,184,876
127,269,300 Tupras-Turkiye Petrol Rafinerileri AS 887,622
45,800 Yukos 2,144,539
------------
$ 17,074,907
------------
The accompanying notes are an integral part of these financial statements.
11
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
Shares Value
Oil & Gas Exploration & Production - 1.9%
3,085,400 China Petroleum & Chemical $ 963,722
47,500 Mol Magyar Olaj 1,337,799
872,000 PTT Public Co., Ltd. 2,336,982
------------
$ 4,638,503
------------
Oil & Gas Refining, Marketing & Transportation - 1.9%
123,500 Bharat Petroleum Corp., Ltd. $ 966,387
95,100 Hindustan Petroleum 762,441
64,500 Polski Koncern Nafto (G.D.R.) 767,550
77,500 S-Oil Corp. 1,769,789
17,600 TelecomAsia Corp. Public Co., Ltd. 480,832
------------
$ 4,746,999
------------
Total Energy $ 26,460,409
------------
Materials - 16.8%
Aluminum - 0.3%
783,000 Aluminum Corp.of China, Ltd. $ 405,935
11,749 Hindalco Industries Ltd.* 318,419
------------
$ 724,354
------------
Commodity Chemicals - 1.7%
39,589 Daelim Industrial Co. $ 1,136,243
63,900 Reliance Industries, Ltd. (144A)* 1,549,575
117,456,000 Ultrapar Participacoes SA 1,284,675
------------
$ 3,970,493
------------
Construction Materials - 1.1%
235,072,250 Akcansa Cimento AS $ 534,438
22,700 Asia Cement Co., Ltd.* 638,293
236,000 Siam Cement Co., Ltd.* 1,279,800
26,970 Suez Cement Co. (G.D.R.)* 162,090
------------
$ 2,614,621
------------
Diversified Chemicals - 0.7%
3,300 Israel Chemicals, Ltd. $ 4,365
17,597 LG Chemicals, Ltd.* 688,040
2,097,274 Sinopac Holdings Co. 1,136,151
------------
$ 1,828,556
------------
The accompanying notes are an integral part of these financial statements.
12
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Diversified Metals & Mining - 2.6%
61,300 Companhia Vale do Rio Doce (A.D.R.) $ 2,383,344
28,800 Industrias Penoles SA* 80,847
135,500 KGHM Polska Miedz SA* 785,205
33,100 Norilsk Nickel* 1,915,762
769,200 Yanzhou Coal Mining (Class H) 624,178
29,070 Korea Zinc Co.* 628,776
------------
$ 6,418,112
------------
Gold - 0.4%
109,200 IAMGOLD Corp. $ 911,820
------------
Paper Packaging - 0.3%
900,000 Lee & Man Paper Manufacturing* $ 660,763
------------
Paper Products - 0.4%
37,000 Aracruz Cellulose SA (A.D.R.) $ 995,300
------------
Precious Metals & Minerals - 6.1%
200,778 Anglo American Plc $ 4,280,567
29,420 Anglogold, Ltd. 1,416,715
80,400 Anglogold, Ltd. (A.D.R.) 3,856,788
152,000 Compania de Minas Buenaventura SA 4,424,720
41,300 Gold Fields, Ltd. 568,682
39,900 Gold Fields, Ltd. (A.D.R.) 546,231
------------
$ 15,093,703
------------
Specialty Chemicals - 1.0%
760,393 Formosa Plastic Corp. $ 1,124,446
1,105,052 Nan Ya Plastics Corp. 1,456,145
------------
$ 2,580,591
------------
Steel - 2.2%
998,069 China Steel Corp., Ltd. $ 797,871
106,000 Pohang Iron & Steel Co., Ltd. (A.D.R.) 3,164,100
130,100 Remgro, Ltd. 1,368,763
------------
$ 5,330,734
------------
Total Materials $ 41,129,047
------------
The accompanying notes are an integral part of these financial statements.
13
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
Shares Value
Capital Goods - 2.3%
Building Products - 0.6%
60,800 Daewoo Shipbuilding & Marine, Ltd.* $ 864,922
14,000 Hanil Cement Co., Ltd.* 722,100
------------
$ 1,587,022
------------
Construction & Engineering - 0.4%
9,201,600 Enka Insaat VE Sanayi AS $ 336,606
43,700 LG Construction, Ltd. 659,835
------------
$ 996,441
------------
Electrical Component & Equipment - 0.5%
117,000 Bharat Heavy Electricals (Demat Shares) $ 1,140,347
------------
Industrial Conglomerates - 0.1%
226,000 China Resources Enterprise, Ltd. $ 263,442
------------
Industrial Machinery - 0.7%
93,900 Daewoo Heavy Industries & Machinery Ltd.* $ 754,606
1,437,000 Yungtay Engineering Co., Ltd. 871,037
------------
$ 1,625,643
------------
Total Capital Goods $ 5,612,895
------------
Commercial Services & Supplies - 0.5%
Diversified Commercial Services - 0.5%
194,716 Bidvest Group, Ltd. $ 1,303,697
------------
Total Commercial Services & Supplies $ 1,303,697
------------
Transportation - 1.9%
Marine - 1.5%
874,140 Evergreen Marine Corp. $ 706,479
42,000 Hanjin Shipping Co., Ltd.* 709,288
206,250 Hyundai Merchant Marine Co.* 1,504,773
150,500 Samsung Heavy Industries Co., Ltd.* 863,899
------------
$ 3,784,439
------------
Railroads - 0.4%
278,000 Malaysia International Shipping Bhd $ 870,579
------------
Total Transportation $ 4,655,018
------------
The accompanying notes are an integral part of these financial statements.
14
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Automobiles & Components - 3.5%
Auto Parts & Equipment - 0.8%
246,161 Cycle & Carriage $ 864,023
24,800 Hyundai Mobis* 1,093,465
200,000 Mirgor Sacifia (A.D.R.) (144A)* -
------------
$ 1,957,488
------------
Automobile Manufacturers - 2.7%
127,000 Edaran Otomobile Nasional Bhd $ 262,355
49,070 Hyundai Heavy Industries* 1,547,151
33,400 Hyundai Motor Co., Ltd.* 1,267,035
121,185,760 Koc Holdings AS* 1,499,803
859,461 PT Astra International 452,215
508,000 Sime Darby Bhd 721,895
109,740 Tata Engineering & Locomotive Co.* 980,395
------------
$ 6,730,849
------------
Total Automobiles & Components $ 8,688,337
------------
Consumer Durables & Apparel - 0.8%
Homebuilding - 0.2%
4,076,900 Ayala Land, Inc. $ 395,425
------------
Leisure Products - 0.6%
31,599 Bajaj Auto, Ltd. (Demat Shares) $ 677,373
770,500 Berjaya Sports Toto Bhd 811,053
------------
$ 1,488,426
------------
Total Consumer Durables & Apparel $ 1,883,851
------------
Hotels, Restaurants & Leisure - 0.3%
Hotels, Resorts & Cruise Lines - 0.0%
12,633 EIH Ltd. (Demat Shares)* $ 71,211
------------
Restaurants - 0.3%
501,200 Kentucky Fried Chicken Bhd $ 567,147
------------
Total Hotels, Restaurants & Leisure $ 638,358
------------
Media - 1.4%
Broadcasting & Cable TV - 0.9%
128,000 BEC World Public Co., Ltd. $ 698,910
2,902,600 United Broadcasting Corp., Plc* 1,650,320
------------
$ 2,349,230
------------
The accompanying notes are an integral part of these financial statements.
15
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
Shares Value
Movies & Entertainment - 0.5%
2,483,200 Grammy Entertainment Plc $ 1,169,296
------------
Total Media $ 3,518,526
------------
Retailing - 0.4%
General Merchandise Stores - 0.4%
3,189,200 Global Green Technology Group $ 550,446
10,600 LG Home Shopping 492,941
------------
Total Retailing $ 1,043,387
------------
Food & Drug Retailing - 3.2%
Food Distributors - 0.7%
75,700 Compania Cervecerias Unidas SA $ 1,582,887
------------
Food Retail - 2.5%
97,300 Brasil Distributor Pao Acu (A.D.R.) $ 2,160,060
25,600 CJ Corp. 1,224,575
45,500 Distribucion y Servicio D&A SA 855,400
1,985,700 Metro Cash and Carry, Ltd.* 711,567
37,845,900 Migros Turk T.A.S. 455,445
3,448,000 PT Indofood Sukses Makmur Tbk 273,651
41,100 Tiger Brands, Ltd. 508,695
------------
$ 6,189,393
------------
Total Food & Drug Retailing $ 7,772,280
------------
Food, Beverage & Tobacco - 4.1%
Agricultural Products - 0.5%
294,000 IOI Corp., Bhd $ 564,789
191,000 Makhteshim-Agan Industries, Ltd.* 623,060
------------
$ 1,187,849
------------
Distillers & Vintners - 1.3%
28,928,150 Andalou Efes Biracilik VE $ 340,215
87,400 Companhia de Bebidas PR (A.D.R.) 2,067,010
342,900 Grupo Modelo SA de CV 825,848
------------
$ 3,233,073
------------
The accompanying notes are an integral part of these financial statements.
16
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Soft Drinks - 1.2%
98,200 Embotelladora Andina SA (A.D.R.) $ 928,972
14,500 Fomento Economico Mexicano, SA de CV 498,510
110,100 Fraser & Neave, Ltd. 734,575
1,039,700 Sermsuk Public Co., Ltd. 826,812
------------
$ 2,988,869
------------
Tobacco - 1.1%
114,900 British American Tabacco (Malaysia) Bhd $ 1,300,184
489,000 PT Gudang Garam Public Co., Ltd. 730,194
1,204,000 PT Hanjaya Mandala Sampoerna Tbk 601,646
------------
$ 2,632,024
------------
Total Food, Beverage & Tobacco $ 10,041,815
------------
Household & Personal Products - 0.6%
Household Products - 0.6%
182,498,080 Arcelik AS $ 792,385
28,800 LG Household & Health Care, Ltd.* 742,731
------------
Total Household & Personal Products $ 1,535,116
------------
Health Care Equipment & Services - 0.9%
Health Care Distributors - 0.9%
36,600 Teva Pharmaceutical Industries, Ltd. $ 2,204,634
------------
Total Health Care Equipment & Services $ 2,204,634
------------
Pharmaceuticals & Biotechnology - 1.8%
Biotechnology - 0.6%
19,000 Dr. Reddy's Laboratories (A.D.R.) $ 532,000
1,762,000 Global Bio-chem Technology Group Co., Ltd.* 958,873
------------
$ 1,490,873
------------
Pharmaceuticals - 1.2%
149,600 Aurobindo Pharma, Ltd. $ 988,726
10,900 Gideon Richter Sons (G.D.R.) 1,160,850
36,140 Ranbaxy Laboratories, Ltd. 807,050
2 Sun Pharmaceutical Industries, Ltd. (Demat Shares) 26
------------
$ 2,956,652
------------
Total Pharmaceuticals & Biotechnology $ 4,447,525
------------
The accompanying notes are an integral part of these financial statements.
17
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
Shares Value
Banks - 13.0%
Diversified Banks - 13.0%
154,086,800 Akbank TAS $ 684,830
58,268 Banco Bradesco SA* 1,396,101
97,900,000 Banco do Brasil SA* 818,050
26,952 Banco Santiago 639,301
99,120 Bangkok Bank, Ltd. (Foreign Shares)* 218,474
665,600 Bank of Baroda 2,601,613
1,496,500 Bank Rakyat Indonesia* 184,753
33,039 Bank Zachodni 609,951
1,014,560 Canara Bank, Ltd. 2,745,319
1,765,882 Chinatrust Financial Holding Co., Ltd. 1,727,100
62,200 Commercial International Bank 480,938
193,500 Jammu & Kashmir Bank, Ltd.* 1,072,557
995,900 Kasikornbank* 1,141,200
14,131 Kookmin Bank 499,619
14,100 Kookmin Bank (A.D.R.)* 500,550
458,100 Malayan Banking Bhd 1,205,526
128,800 MISR International 231,840
2,649,200 National Finance Public Co., Ltd. 1,094,848
448,500 Oriental Bank of Commerce* 2,277,776
37,600 OTP Bank Rt* 461,147
1,074,500 PT Bank Central Asia Tbk* 416,914
9,274,385 PT Lippo Bank* 545,231
612,343 Public Bank Bhd (Foreign Shares) 456,034
663,000 Punjab National Bank, Ltd. 2,675,466
701,800 Siam Commercial Bank Plc (Foreign Shares)* 707,513
191,600 Standard Bank Group, Ltd. 1,095,829
129,300 State Bank of India 1,329,866
304,424,500 Turkiye Garanti Bankasi AS* 650,480
178,455,695 Turkiye Is Bankasi (Isbank)* 878,551
55,800 Uniao de Bancos Brasileiros SA (G.D.R.) 1,283,400
1,579,400 Vijaya Bank/India* 1,337,159
------------
Total Banks $ 31,967,936
------------
The accompanying notes are an integral part of these financial statements.
18
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Diversified Financials - 4.5%
Diversified Financial Services - 4.5%
31,374,000 Alarko Holding AS $ 557,760
5,255,000 Bank Mandiri* 571,531
3,816,913 China Development Financial 1,687,713
640,000 FirstRand, Ltd. 850,973
1,037,000 Fubon Group 941,347
252,305,913 Haci Omer Sabanci Holding AS 948,843
889,100 Kiatnakin Finance Plc 896,338
587,000 MCL Land, Ltd. 456,346
708,100 Old Mutual Plc 1,199,717
547,839 RMB Holdings, Ltd. 1,085,759
625,600 Sanlam, Ltd. 830,843
4,863,800 SM Prime Holdings 567,844
731,300 TISCO Finance Public Co., Ltd.(Foriegn Shares)* 572,401
------------
Total Diversified Financials $ 11,167,415
------------
Insurance - 0.9%
Multi-Line Insurance - 0.5%
23,500 Samsung Fire & Marine Insurance* $ 1,298,116
------------
Property & Casualty Insurance - 0.4%
62,800 Cathay Financial Holding Co. (G.D.R.) (144A)* $ 910,600
------------
Total Insurance $ 2,208,716
------------
Real Estate - 0.7%
Real Estate Management & Development - 0.7%
2,118,000 Cathay Real Estate Development Co., Ltd.* $ 747,347
831,000 Marco Polo Developments, Ltd. 901,558
------------
Total Real Estate $ 1,648,905
------------
Software & Services - 0.7%
Application Software - 0.7%
33,500 Check Point Software Technologies, Ltd.* $ 591,610
10,267 Infosys Technologies, Ltd. 1,104,650
------------
Total Software & Services $ 1,696,260
------------
The accompanying notes are an integral part of these financial statements.
19
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
Shares Value
Technology Hardware & Equipment - 6.0%
Semiconductors - 1.8%
255,980 Hon Hai Precision Industry $ 989,440
1,908,360 Taiwan Semiconductor Manufacturing Co.* 3,548,488
------------
$ 4,537,928
------------
Communications Equipment - 0.7%
97,100 Empresa Nacional De Telecom $ 586,117
65,800 Matav Rt (A.D.R.) 1,113,994
------------
$ 1,700,111
------------
Computer Hardware - 0.5%
844,140 Compal Electronics $ 1,146,943
------------
Computer Storage & Peripherals - 0.5%
544,000 Quanta Computer, Inc. $ 1,282,343
------------
Electronic Equipment & Instruments - 2.3%
398,250 Asustek Computer, Inc. $ 886,296
262,850 Elec & Eltek International Co., Ltd. 733,352
17,810 LG Electronics, Inc.* 881,573
783,715 Phoenixtec Power Co., Ltd. 860,595
6,250 Samsung Display Devices 634,333
1,492,200 Varitronix International, Ltd. 1,576,048
------------
$ 5,572,197
------------
Office Electronics - 0.2%
45,600 Baiksan OPC Co.* $ 438,151
------------
Total Technology Hardware & Equipment $ 14,677,673
------------
Semiconductors - 4.4%
23,770 Samsung Electronics Co. $ 9,195,167
1,938,658 United Microelectronics Corp., Ltd.* 1,703,067
------------
Total Semiconductors $ 10,898,234
------------
The accompanying notes are an integral part of these financial statements.
20
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Telecommunication Services - 7.2%
Alternate Carriers - 0.1%
752,000 Singapore Post, Ltd. $ 301,036
------------
Integrated Telecommunication Services - 3.9%
32,200 Brasil Telecom Participacoes SA $ 1,220,380
38,100 Compania de Telephonos de Chile SA (A.D.R.) 527,685
85,800 KT Corp.* 1,651,650
332,400 Mahanagar Telephone (Demat Shares) 875,119
44,500 PT Indosat Indonesian Satellite Corp. 591,850
94,000 SPT Telecom AS 926,815
66,300 Telefonos de Mexico SA 2,193,867
40,976 Telekomunik Indonesia SP (A.D.R.) 594,972
233,700 Telekomunikacja Polska SA 838,923
------------
$ 9,421,261
------------
Wireless Telecommunication Services - 3.2%
218,600 Advanced Service Co., Ltd. (Foreign Shares) $ 355,892
56,500 Alumax, Inc. 1,448,660
16,300 China Mobile, Ltd. 47,239
91,900 Mobinil-Egyptian Mobile Services 1,024,491
173,300 SK Telecom Co., Ltd.* 3,093,405
1,125,000 Taiwan Cellular Corp.* 961,933
331,500 Venfin, Ltd. 1,026,396
------------
$ 7,958,016
------------
Total Telecommunication Services $ 17,680,313
------------
Utilities - 2.9%
Electric Utilities - 2.4%
37,200 Cemig SA (A.D.R.)* $ 591,852
460,000 China Resources Power Holdings* 171,824
152,200 Companhia Paranaense de Energia (A.D.R.)* 646,850
1,201,300 Empresa Nacional de Electricid SA* 452,482
16,613,423 Enersis SA* 2,083,196
52,200 Korea Electric Power Corp. 1,100,844
35,240 Unified Energy System (G.D.R.) 917,307
------------
$ 5,964,355
------------
The accompanying notes are an integral part of these financial statements.
21
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
Shares Value
Gas Utilities - 0.2%
21,400 Gazprom (A.D.R.)* $ 513,600
------------
Water Utilities - 0.3%
48,300 Cia Saneamento Basic de Estado de Sao Paulo $ 596,505
------------
Total Utilities $ 7,074,460
------------
TOTAL COMMON STOCKS
(Cost $156,785,172) $219,954,807
------------
RIGHTS/WARRANTS - 0.0%
Diversified Financials - 0.0%
Consumer Finance - 0.0%
25,658 LG Card Rights, Exp. 12/12/03* $ -
------------
Total Diversified Financials $ -
------------
Telecommunication Services - 0.0%
Integrated Telecommunication Services - 0.0%
526,420 TelecomAsia Public Co., Ltd. (Foreign shares)* $ -
------------
Total Telecommunication Services $ -
------------
TOTAL RIGHTS/WARRANTS
(Cost $139,695) $ -
------------
The accompanying notes are an integral part of these financial statements.
22
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
TEMPORARY CASH INVESTMENTS - 16.5%
Repurchase Agreement - 8.0%
$19,700,000 UBS Warburg, Inc., 1.03%, Dated 11/28/03,
repurchase price of $19,700,000 plus
accrued interest on 12/3/03 collateralized
by $19,969,000 U.S. Treasury Bill,
1.625%, 1/31/05. $19,700,000
-----------
Shares
Security Lending Collateral - 8.5%
20,872,494 Securities Lending Investment Fund, 1.00% $ 20,872,494
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $40,572,494) $ 40,572,494
------------
TOTAL INVESTMENT IN SECURITIES - 109.0%
(Cost $201,857,244)(a)(b)(c)(d) $267,656,643
------------
OTHER ASSETS AND LIABILITIES - (9.0)% $(21,989,620)
------------
TOTAL NET ASSETS - 100.0% $245,667,023
============
(A.D.R.) American Depositary Receipt
(G.D.R.) Global Depositary Receipt
* Non-Income producing security.
144A Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
November 30, 2003, the value of these securities amounted to $2,460,175
or 1.0% of net assets.
The accompanying notes are an integral part of these financial statements.
23
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
(a) Distribution of investments by country of issue, as a percentage of
total equity holdings (excluding temporary cash investments) is as
follows:
South Korea 17.5%
Brazil 12.2
India 11.7
Taiwan 10.3
South Africa 8.6
Thailand 5.7
Russia 5.0
Turkey 3.8
Chile 3.4
Malaysia 3.0
Mexico 2.2
Indonesia 2.2
Peru 1.9
Hong Kong 1.9
Hungary 1.8
Singapore 1.8
Israel 1.5
People's Republic of China 1.5
Poland 1.3
Other (Individually less than 1%) 2.7
----
100%
====
(b) At November 30, 2003, the net unrealized gain on investments based on
cost for federal income tax purposes of $206,782,149 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $64,288,326
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (3,413,832)
-----------
Net unrealized gain $60,874,494
===========
(c) At November 30, 2003, the Fund had a capital loss carryforward of
$818,312 of which the following amounts will expire between 2006 and
2010 if not utilized. (This amount includes a net capital loss
carryforward of $6,469,549, which may be limited from the merger with
Pioneer Indo-Asia Fund which occurred in September 2001.)
$9,651,392 in 2006
$6,469,549 in 2008
$70,500,858 in 2009
$11,196,513 in 2010
(d) The Fund has elected to defer approximately $9,359 of currency losses
recognized between November 1, 2003 and November 30, 2003 to its fiscal
year ending November 30, 2004.
Purchases and sales of securities (excluding temporary cash
investments) for the year ended November 30, 2003 aggregated
$170,149,723 and $209,844,398, respectively.
The accompanying notes are an integral part of these financial statements.
24
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 11/30/03
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (including securities loaned of
$20,013,132) (cost $201,857,244) $267,656,643
Cash 5,416
Foreign currencies, at value (cost $615,561) 611,007
Receivables -
Fund shares sold 690,619
Dividends, interest and foreign taxes withheld 641,332
Other 4,251
------------
Total assets $269,609,268
------------
LIABILITIES:
Payables -
Investment securities purchased $ 172,658
Fund shares repurchased 180,989
Upon return of securities loaned 20,872,494
Due to affiliates 441,842
Accrued expenses 193,555
Reserve for repatriation taxes 2,080,707
------------
Total liabilities $ 23,942,245
------------
NET ASSETS:
Paid-in capital $283,785,225
Accumulated undistributed net investment income 261,669
Accumulated net realized loss on investments and foreign
currency transactions (102,097,268)
Net unrealized gain on investments 63,718,692
Net unrealized loss on forward foreign currency contracts and
other assets and liabilites denominated in foreign currencies (1,295)
------------
Total net assets $245,667,023
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $121,973,564/8,427,495 shares) $ 14.47
============
Class B (based on $38,614,685/2,869,819 shares) $ 13.46
============
Class C (based on $25,632,238/1,914,931 shares) $ 13.39
============
Class R (based on $2,326/160.337 shares) $ 14.51
============
Class Y (based on $59,444,210/3,913,561 shares) $ 15.19
============
MAXIMUM OFFERING PRICE:
Class A ($14.47 [divided by] 94.25%) $ 15.35
============
Class C ($13.39 [divided by] 99.00%) $ 13.53
============
The accompanying notes are an integral part of these financial statements.
25
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 11/30/03
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $792,036) $ 6,270,779
Interest 20,301
Income from securities loaned, net 31,065
-----------
Total investment income $ 6,322,145
-----------
EXPENSES:
Management fees $ 2,520,925
Transfer agent fees
Class A 797,737
Class B 236,463
Class C 166,071
Class Y 899
Distribution fees
Class A 251,313
Class B 308,046
Class C 230,600
Class R 4
Administrative fees 99,798
Custodian fees 337,995
Registration fees 102,229
Professional fees 67,282
Printing 60,003
Fees and expenses of nonaffiliated trustees 9,769
Miscellaneous 19,775
-----------
Total expenses $ 5,208,909
Less fees paid indirectly (10,240)
-----------
Net expenses $ 5,198,669
-----------
Net investment income $ 1,123,476
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments (net of foreign capital gain taxes
of $(257,282)) $ 9,050,234
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (626,532) $ 8,423,702
----------- -----------
Change in net unrealized gain (loss) from:
Investments (net of reserve for repatriation taxes
of $1,716,676) $63,328,875
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (7,194) $63,321,681
----------- -----------
Net gain on investments and foreign currency
transactions $71,745,383
-----------
Net increase in net assets resulting from operations $72,868,859
===========
The accompanying notes are an integral part of these financial statements.
26
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 11/30/03 and 11/30/02, respectively
Year Ended Year Ended
11/30/03 11/30/02
FROM OPERATIONS:
Net investment income (loss) $ 1,123,476 $ (59,802)
Net realized gain (loss) on investments and foreign
currency transactions 8,423,702 (6,850,042)
Change in net unrealized gain (loss) on investments
and foreign currency transactions 63,321,681 11,816,839
------------ ------------
Net increase in net assets resulting from operations $ 72,868,859 $ 4,906,995
------------ ------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class R ($0.01 and $0.00 per share, respectively) $ (2) $ -
Class Y ($0.01 and $0.00 per share, respectively) (41,091) -
------------ ------------
$ (41,093) $ -
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $129,981,612 $114,568,023
Reinvestment of distributions 3,540 -
Cost of shares repurchased (152,740,438) (101,995,702)
------------ ------------
Net increase (decrease) in net assets resulting
from Fund share transactions $(22,755,286) $ 12,572,321
------------ ------------
Net increase in net assets $ 50,072,480 $ 17,479,316
NET ASSETS:
Beginning of year 195,594,543 178,115,227
------------ ------------
End of year (including accumulated undistributed net
investment income (loss) of $261,669 and
($307,012), respectively) $245,667,023 $195,594,543
============ ============
The accompanying notes are an integral part of these financial statements.
27
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
For the Years Ended 11/30/03 and 11/30/02
'03 Shares '03 Amount '02 Shares '02 Amount
CLASS A
Shares sold 9,153,142 $ 98,720,585 7,039,890 $71,150,944
Reinvestment of distributions - - - -
Less shares repurchased (10,122,194) (108,674,102) (5,990,249) (62,097,443)
----------- ------------ ---------- -----------
Net increase (decrease) (969,052) $ (9,953,517) 1,049,641 $ 9,053,501
=========== ============ ========== ===========
CLASS B
Shares sold 740,388 $ 8,447,934 1,068,819 $10,821,885
Less shares repurchased (1,004,628) (10,603,284) (1,751,093) (17,570,205)
----------- ------------ ---------- -----------
Net decrease (264,240) $ (2,155,350) (682,274) $(6,748,320)
=========== ============ ========== ===========
CLASS C
Shares sold 1,518,262 $ 16,590,362 2,410,668 $24,425,468
Reinvestment of distributions - - - -
Less shares repurchased (2,708,284) (26,566,419) (1,013,787) (10,077,921)
----------- ------------ ---------- -----------
Net increase (decrease) (1,190,022) $ (9,976,057) 1,396,881 $14,347,547
=========== ============ ========== ===========
CLASS R (a)
Shares sold 162 $ 1,978
Reinvestment of distributions - 1
Less shares repurchased (2) (21)
----------- ------------
Net increase 160 $ 1,958
=========== ============
CLASS Y
Shares sold 616,873 $ 6,220,753 712,741 $ 8,169,726
Reinvestment of distributions 240 3,539 - -
Less shares repurchased (670,769) (6,896,612) (1,045,883) (12,250,133)
----------- ------------ ---------- -----------
Net decrease (53,656) $ (672,320) (333,142) $(4,080,407)
=========== ============ ========== ===========
(a) Class R Shares were first publicly offered on April 1, 2003.
The accompanying notes are an integral part of these financial statements.
28
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS A 11/30/03 11/30/02 11/30/01 11/30/00 11/30/99
Net asset value, beginning of period $ 10.11 $ 9.91 $ 10.82 $ 13.80 $ 8.79
-------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.07 $ (0.01) $ 0.00(a) $ (0.17) $ (0.09)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 4.29 0.21 (0.91) (2.81) 5.10
-------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 4.36 $ 0.20 $ (0.91) $ (2.98) $ 5.01
-------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 4.36 $ 0.20 $ (0.91) $ (2.98) $ 5.01
-------- ------- ------- ------- -------
Net asset value, end of period $ 14.47 $ 10.11 $ 9.91 $ 10.82 $ 13.80
======== ======= ======= ======= =======
Total return* 43.13% 2.02% (8.41)% (21.59)% 57.00%
Ratio of net expenses to average net assets+ 2.65% 2.58% 2.76% 2.19% 2.44%
Ratio of net investment income (loss) to average net assets+ 0.51% (0.09)% (0.04)% (1.13)% (0.73)%
Portfolio turnover rate 88% 101% 177% 139% 180%
Net assets, end of period (in thousands) $121,974 $94,999 $82,739 $88,175 $91,092
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.65% 2.58% 2.76% 2.19% 2.44%
Net investment income (loss) 0.51% (0.09)% (0.04)% (1.13)% (0.73)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.64% 2.57% 2.74% 2.16% 2.40%
Net investment income (loss) 0.52% (0.08)% (0.02)% (1.10)% (0.69)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than one cent per share.
The accompanying notes are an integral part of these financial statements.
29
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS B 11/30/03 11/30/02 11/30/01 11/30/00 11/30/99
Net asset value, beginning of period $ 9.47 $ 9.34 $ 10.28 $ 13.23 $ 8.49
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.08) $ (0.58) $ (0.10) $ (0.34) $ (0.17)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 4.07 0.71 (0.84) (2.61) 4.91
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 3.99 $ 0.13 $ (0.94) $ (2.95) $ 4.74
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 3.99 $ 0.13 $ (0.94) $ (2.95) $ 4.74
------- ------- ------- ------- -------
Net asset value, end of period $ 13.46 $ 9.47 $ 9.34 $ 10.28 $ 13.23
======= ======= ======= ======= =======
Total return* 42.13% 1.39% (9.14)% (22.30)% 55.83%
Ratio of net expenses to average net assets+ 3.37% 3.21% 3.59% 3.05% 3.20%
Ratio of net investment loss to average net assets+ (0.26)% (0.66)% (0.87)% (1.97)% (1.53)%
Portfolio turnover rate 88% 101% 177% 139% 180%
Net assets, end of period (in thousands) $38,615 $29,674 $35,651 $40,763 $51,093
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 3.37% 3.21% 3.59% 3.05% 3.20%
Net investment loss (0.26)% (0.66)% (0.87)% (1.97)% (1.53)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 3.37% 3.21% 3.58% 3.03% 3.18%
Net investment loss (0.26)% (0.66)% (0.86)% (1.95)% (1.51)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
30
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS C 11/30/03 11/30/02 11/30/01 11/30/00 11/30/99
Net asset value, beginning of period $ 9.42 $ 9.29 $ 10.23 $ 13.12 $ 8.47
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.14) $ (0.18) $ (0.01) $ (0.14) $ (0.29)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 4.11 0.31 (0.93) (2.75) 4.94
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 3.97 $ 0.13 $ (0.94) $ (2.89) $ 4.65
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 3.97 $ 0.13 $ (0.94) $ (2.89) $ 4.65
------- ------- ------- ------- -------
Net asset value, end of period $ 13.39 $ 9.42 $ 9.29 $ 10.23 $ 13.12
======= ======= ======= ======= =======
Total return* 42.14% 1.40% (9.19)% (22.03)% 54.90%
Ratio of net expenses to average net assets+ 3.32% 3.16% 3.57% 2.85% 3.82%
Ratio of net investment loss to average net assets+ (0.18)% (0.63)% (0.81)% (1.81)% (2.09)%
Portfolio turnover rate 88% 101% 177% 139% 180%
Net assets, end of period (in thousands) $25,632 $29,239 $15,864 $12,861 $11,656
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 3.32% 3.16% 3.57% 2.85% 3.82%
Net investment loss (0.18)% (0.63)% (0.81)% (1.81)% (2.09)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 3.32% 3.15% 3.55% 2.82% 3.80%
Net investment loss (0.18)% (0.62)% (0.79)% (1.78)% (2.07)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
31
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
4/1/03
to
11/30/03
CLASS R (a)
Net asset value, beginning of period $ 9.57
------
Increase (decrease) from investment operations:
Net investment income $ 0.02
Net realized and unrealized gain on investments
and foreign currency transactions 4.93
------
Net increase from investment operations $ 4.95
Distributions to shareowners:
Net investment income (0.01)
------
Net increase in net asset value $ 4.94
------
Net asset value, end of period $14.51
======
Total return* 51.74%
Ratio of net expenses to average net assets+ 2.13%**
Ratio of net investment income to average net assets+ 0.56%**
Portfolio turnover rate 88%
Net assets, end of period (in thousands) $ 2
Ratios with reduction for fees paid indirectly:
Net expenses 2.13%**
Net investment income 0.56%**
(a) Class R Shares were first publicly offered on April 1, 2003.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS Y 11/30/03 11/30/02 11/30/01 11/30/00 11/30/99
Net asset value, beginning of period $ 10.51 $ 10.20 $ 11.03 $ 13.99 $ 8.85
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.19 $ 0.13 $ 0.10 $ (0.10) $ 0.01
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 4.50 0.18 (0.93) (2.86) 5.13
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 4.69 $ 0.31 $ (0.83) $ (2.96) $ 5.14
Distributions to shareowners:
Net investment income (0.01) - - - -
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 4.68 $ 0.31 $ (0.83) $ (2.96) $ 5.14
------- ------- ------- ------- -------
Net asset value, end of period $ 15.19 $ 10.51 $ 10.20 $ 11.03 $ 13.99
======= ======= ======= ======= =======
Total return* 44.63% 3.04% (7.52)% (21.16)% 58.08%
Ratio of net expenses to average net assets+ 1.60% 1.58% 1.80% 1.62% 1.68%
Ratio of net investment income (loss) to average net assets+ 1.52% 0.93% 0.96% (0.62)% (0.71)%
Portfolio turnover rate 88% 101% 177% 139% 180%
Net assets, end of period (in thousands) $59,444 $41,683 $43,861 $47,378 $27,225
Ratios with reduction for fees paid indirectly:
Net expenses 1.60% 1.58% 1.80% 1.60% 1.61%
Net investment income (loss) 1.52% 0.93% 0.96% (0.60)% (0.64)%
* Assumes initial investment at net asset value at the beginning of each period,
reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
33
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/03
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Emerging Markets Fund (the Fund) is a Delaware statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to seek
long-term growth of capital.
The Fund offers five classes of shares - Class A, Class B, Class C, Class R and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has equal rights to voting,
redemptions, dividends and liquidation, except that the level of transfer agent
and distribution fees may differ among classes. Class A, Class B, Class C and
Class R shareowners have exclusive voting rights with respect to the
distribution plan for each class. There is no distribution plan for Class Y
shares.
The Fund's financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America that require the
management of the Fund to, among other things, make estimates and assumptions
that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of income, expenses and gains and losses on investments
during the reporting year. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Fund, which are in conformity with those generally accepted in the
investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value is
computed once daily, on each day the New York Stock Exchange is open, as of
the close of regular trading on the Exchange. In computing the net asset
value, securities are valued at the last sale price on the principal
exchange where they are traded. Securities that have not traded on the date
of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of, the Board
of Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the New York Stock Exchange. The
values of such securities used in computing the net
34
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
asset value of the Fund's shares are determined as of such times. The Fund
also may estimate the fair value, as determined by, or under the direction
of the Board of Trustees, of a security, including a non-U.S. security,
when the closing market price on the primary exchange where the security is
traded no longer accurately reflects the value of the security at the close
of the New York Stock Exchange. 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. Dividend and interest income is recorded on the accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country
rates. Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes
and are reported net of foreign taxes on capital gains at the applicable
country rates.
The Fund's investments in emerging markets or countries with limited or
developing markets may subject the Fund to a greater degree of risk than in
a developed market. Risks associated with these developing markets include
political, social or economic factors and may affect the price of the
Fund's investments and income generated by these investments, as well as
the Fund's ability to repatriate such amounts.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollars actually received. Further,
the effects of changes in foreign currency exchange rates on investments
are not segregated in the statement of operations from the effects of
changes in market price of those securities but are included with the net
realized and unrealized gain or loss on investments.
35
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the
time a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
D. Futures Contracts
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices, and currency rates or to seek to
increase total return. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. Subsequent payments for futures contracts ("variation margin")
are paid or received by the Fund, depending on the daily fluctuation in the
value of the contracts, and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund realizes a gain or loss equal
to the difference between the opening and closing values of the contract.
The use of futures contracts involves, to varying degrees, elements of
market risks which may exceed the amounts recognized by the Fund. Changes
in value of the contracts may not directly correlate to the changes in
value of the underlying securities. These risks may decrease the
effectiveness of the Fund's hedging strategies and potentially result in a
loss. At November 30, 2003, the Fund had no open futures contracts.
E. Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital
36
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
gains, if any, to its shareowners. Therefore, no federal income tax
provision is required.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During
the year ended November 30, 2003, the Fund paid $257,282 in such taxes.
In determining the daily net asset value, the Fund estimates the reserve
for such taxes, if any, associated with investments in certain countries.
The estimated reserve for the capital gains is based on the net unrealized
appreciation on certain portfolio securities, the holding period of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. As of November 30, 2003, the Fund had no reserve
related to capital gains. The estimated reserve for the repatriation of
foreign currencies is based on principal balances and/or unrealized
appreciation of applicable securities, the holding period of such
investments and the related tax rates and other such factors. As of
November 30, 2003, the reserve related to taxes on the repatriation of
foreign currencies was $2,080,707.
The tax character of distributions paid during the years ended November 30,
2003 and 2002, were as follows.
- -----------------------------------------------------
2003 2002
- -----------------------------------------------------
Distributions paid from:
Ordinary income $41,093 $ -
- -----------------------------------------------------
The following shows components of distributable earnings on a fed eral
income tax basis at November 30, 2003.
- --------------------------------------------------------
2003
------------
Undistributed ordinary income $ 916,977
Capital loss carryforward (97,818,312)
Unrealized appreciation 58,792,492
------------
Total $(38,108,843)
============
- --------------------------------------------------------
37
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales and the tax basis
adjustments on Passive Foreign Investment Company (PFIC) holdings.
The characterization of distributions to shareowners for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
At November 30, 2003, the Fund has reclassified $513,702 to decrease
undistributed net investment income and $513,702 to decrease accumulated
net realized loss on investments and foreign currency transactions, to
reflect permanent book/tax differences. The reclassification has no impact
on the net assets of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.
(UniCredito Italiano), earned $22,921 in underwriting commissions on the
sale of Fund shares during the year ended November 30, 2003.
G. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C and Class R shares of the Fund,
respectively. Class Y shares are not subject to a distribution plan.
Shareowners of each class share all expenses and fees paid to the transfer
agent, Pioneer Investment Management Shareholder Services, Inc. (PIMSS),
for its services, which are allocated based on the number of accounts in
each class and the ratable allocation of related out-of-pocket expenses
(see Note 3). Income, common expenses and realized and unrealized gains and
losses are calculated at the Fund level and allocated daily to
38
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
each class of shares based on the respective percentage of adjusted net
assets at the beginning of the day.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, Class C, Class R and Class Y shares can bear
different transfer agent and distribution fees.
H. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
dividends on the securities loaned. Gain or loss on the fair value of the
loaned securities that may occur during the term of the loan will be for
the account of the Fund. The loans are secured by collateral of at least
102%, at all times, of the fair value of the securities loaned. The amount
of the collateral will be adjusted daily to reflect any price fluctuation
in the value of the loaned securities. The Fund has the right under the
lending agreements to recover the securites on loan from the borrower on
demand. The Fund invests cash collateral in the Securities Lending
Investment Fund, which is managed by Brown Brothers Harriman & Co., the
Fund's custodian.
I. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or subcustodians. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
39
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
2. Management Agreement
PIM, the Fund's investment adviser, manages the Fund's portfolio and is a wholly
owned indirect subsidiary of UniCredito Italiano. Management fees are calculated
daily at the annual rate of 1.25% of the Fund's average daily net assets.
Effective December 31, 2003, PIM reduced its fee for managing the Fund to 1.15%
of average daily net assets. Simultaneously PIM has contractually agreed not to
impose all or a portion of its management fee and, if necessary, to limit other
ordinary operating expense to the extent required to reduce Class A expenses to
2.15% of the average daily net assets attributable to Class A shares. The
portion of Fund expenses attributable to classes of shares other than Class A
will be reduced only to the extent such expenses are reduced for Class A shares.
PIM may subsequently recover reimbursed expenses (within three years of being
incurred) from the Fund if its expense ratio of the Class A shares is less than
the expense limitation of the Class A shares. Each class will reimburse PIM no
more than the amount by which that class' expenses were reduced.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At November 30, 2003, $261,821, was payable to
PIM related to management fees, administrative fees and certain other services,
and is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $101,115 in transfer agent
fees owed to PIMSS at November 30, 2003.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution with respect to Class A, Class B, Class
C and Class R shares (Class A Plan, Class B Plan, Class C Plan and Class R Plan)
in accordance with Rule 12b-1 of the Investment Company Act of 1940. Pursuant to
the Class A Plan, the Fund pays PFD a service fee of up to 0.25% of the Fund's
average daily net assets attributable to Class A shares in reimbursement of its
actual expenditures to finance activities primarily intended to result in
40
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the sale of Class A shares. Pursuant to the Class B Plan and the Class C Plan,
the Fund pays PFD 1.00% of the average daily net assets attributable to each
class of shares. The fee consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Pursuant to the Class R Plan, the Fund pays PFD 0.50% of the average
daily net assets attributable to Class R shares for distribution services.
Included in due to affiliates is $78,906 in distribution fees payable to PFD at
November 30, 2003. The Fund also has adopted a separate service plan for Class R
shares (Service Plan). The Service Plan authorizes the Fund to pay securities
dealers, plan administrators or other service organizations that agree to
provide certain services to retirement plans or plan participants holdings
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 Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within one year of purchase. Class B shares that are redeemed within six years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Redemptions of Class R shares within 18 months of purchase may be subject to a
CDSC of 1.00%. Proceeds from the CDSCs are paid to PFD. For the year ended
November 30, 2003, CDSCs in the amount of $59,130 were paid to PFD.
Effective November 1, 2003, the Fund charges a 2.0% redemption fee on shares
(except Class B and Class C shares) sold within 30 days of purchase. The Fund
plans to implement this fee for Class B and Class C shares as soon as the Fund
can implement operational changes. The fee does not apply to certain types of
transactions as described in the Fund's prospectus. For the year ended November
30, 2003, the Fund collected $25 in redemption fees, which are included in the
Fund's capital account.
41
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/03 (continued)
- --------------------------------------------------------------------------------
5. Expense Offsets
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses, due to interest earned on
cash held by PIMSS. For the year ended November 30, 2003, the Fund's expenses
were reduced by $10,240 under such arrangements.
6. Forward Foreign Currency Contracts
During the fiscal year ended November 30, 2003, the Fund had entered into
various contracts that obligate the Fund to deliver currencies at specified
future dates. At the maturity of a contract, the Fund must make delivery of the
foreign currency. Alternatively, prior to the settlement date of a portfolio
hedge, the Fund may close out such contracts by entering into an offsetting
hedge contract. As of November 30, 2003, the Fund had no outstanding portfolio
or settlement hedges.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $50 million committed, unsecured revolving
line of credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of $50 million or the limits set
by its prospectus for borrowings. Interest on collective borrowings is payable
at the Federal Funds Rate plus 1/2% on an annualized basis. The Funds pay an
annual commitment fee for this facility. The commitment fee is allocated among
such Funds based on their respective borrowing limits. For the year ended
November 30, 2003, the Fund had no borrowings under this agreement.
8. Tax Information (unaudited)
For the fiscal year ending November 30, 2003, the Fund has elected to pass
through foreign taxes credits of $1,049,317.
42
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Emerging Markets Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Emerging Markets Fund (the "Fund") as of
November 30, 2003, and the related statement of operations for the year then
ended, and the statements of changes in net assets and the financial highlights
for each of the two years in the period then ended. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for each of
the three years in the period ended November 30, 2001 were audited by other
auditors who have ceased operations and whose report, dated January 11, 2002,
expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of November 30, 2003, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Emerging Markets Fund at November 30, 2003, the results of its
operations for the year then ended, and the changes in its net assets and the
financial highlights for each of the two years in the period then ended in
conformity with accounting principles generally accepted in the United States.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 31, 2003
43
This page for your notes.
44
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Auditors
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's affairs.
The officers of the Fund are responsible for the Fund's operations. The Fund's
Trustees and officers are listed below, together with their principal
occupations during the past five years. Trustees who are interested persons of
the Fund within the meaning of the Investment Company Act of 1940 are referred
to as Interested Trustees. Trustees who are not interested persons of the Fund
are referred to as Independent Trustees. Each of the Trustees serves as a
trustee of each of the 51 U.S. registered investment portfolios for which
Pioneer Investment Management, Inc. ("Pioneer") serves as investment adviser
(the "Pioneer Funds"). The address for all Interested Trustees and all officers
of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request, without
charge, by calling 1-800-225-6292.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). This information
is also available at pioneerfunds.com.
45
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Fund Term of Office and Length of Service
John F. Cogan, Jr. (77)* Chairman of the Board, Since 1994.
Trustee and President Serves until a successor trustee is
elected or earlier retirement or removal.
*Mr. Cogan is an Interested Trustee because he is an officer or director of
Pioneer and certain of its affiliates.
========================================================================================================
Osbert M. Hood (51)** Trustee and Since June, 2003.
Executive Vice President Serves until a successor trustee is
elected or earlier retirement or removal.
**Mr. Hood is an Interested Trustee because he is an officer or director of
Pioneer and certain of its affiliates.
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Positions Held With the Fund Term of Office and Length of Service
Mary K. Bush (55) Trustee Since 1997.
3509 Woodbine Street, Serves until a successor trustee is
Chevy Chase, MD 20815 elected or earlier retirement or removal.
========================================================================================================
Richard H. Egdahl, M.D. (77) Trustee Since 1994.
Boston University Healthcare Serves until a successor trustee is
Entrepreneurship Program, elected or earlier retirement or removal.
53 Bay State Road,
Boston, MA 02215
========================================================================================================
46
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
Deputy Chairman and a Director of Pioneer Global Asset Director of Harbor Global Company,
Management S.p.A. ("PGAM"); Non-Executive Chairman Ltd.
and a Director of Pioneer Investment Management USA
Inc. ("PIM-USA"); Chairman and a Director of Pioneer;
Director of Pioneer Alternative Investment Management
Limited (Dublin); President and a Director of Pioneer
Alternative Investment Management (Bermuda) Limited
and affiliated funds; President and Director of Pioneer
Funds Distributor, Inc. ("PFD"); President of all of the
Pioneer Funds; and Of Counsel (since 2000, partner
prior to 2000), Hale and Dorr LLP (counsel to PIM-USA
and the Pioneer Funds)
=====================================================================================================
President and Chief Executive Officer, PIM-USA since None
May, 2003 (Director since January, 2001); President
and Director of Pioneer since May, 2003; Chairman
and Director of Pioneer Investment Management
Shareholder Services, Inc. ("PIMSS") since May, 2003;
Executive Vice President of all of the Pioneer Funds
since June, 2003; Executive Vice President and Chief
Operating Officer of PIM-USA, November 2000 to May
2003; Executive Vice President, Chief Financial Officer
and Treasurer, John Hancock Advisers, L.L.C., Boston,
MA, November 1999 to November 2000; Senior Vice
President and Chief Financial Officer, John Hancock
Advisers, L.L.C., April 1997 to November 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
President, Bush International (international financial Director of Brady Corporation
advisory firm) (industrial identification and
specialty coated material products
manufacturer), Millennium Chemicals,
Inc. (commodity chemicals), Mortgage
Guaranty Insurance Corporation, and
R.J. Reynolds Tobacco Holdings, Inc.
(tobacco)
=====================================================================================================
Alexander Graham Bell Professor of Health Care None
Entrepreneurship, Boston University; Professor
of Management, Boston University School of
Management; Professor of Public Health, Boston
University School of Public Health; Professor of Surgery,
Boston University School of Medicine; and University
Professor, Boston University
=====================================================================================================
47
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Address Positions Held With the Fund Term of Office and Length of Service
Margaret B.W. Graham (56) Trustee Since 1994.
1001 Sherbrooke Street West, Serves until a successor trustee is
Montreal, Quebec, Canada elected or earlier retirement or removal.
H3A 1G5
=========================================================================================================
Marguerite A. Piret (55) Trustee Since 1994.
One Boston Place, 28th Floor, Serves until a successor trustee is
Boston, MA 02108 elected or earlier retirement or removal.
=========================================================================================================
Stephen K. West (75) Trustee Since 1994.
125 Broad Street, Serves until a successor trustee is
New York, NY 10004 elected or earlier retirement or removal.
=========================================================================================================
John Winthrop (67) Trustee Since 1994.
One North Adgers Wharf, Serves until a successor trustee is
Charleston, SC 29401 elected or earlier retirement or removal.
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Fund Term of Office and Length of Service
Dorothy E. Bourassa (56) Secretary Serves at the discretion of board.
=================================================================================================
Christopher J. Kelley (39) Assistant Secretary Serves at the discretion of board.
=================================================================================================
David C. Phelan (46) Assistant Secretary Serves at the discretion of board.
=================================================================================================
Vincent Nave (58) Treasurer Serves at the discretion of board.
=================================================================================================
Luis I. Presutti (38) Assistant Treasurer Serves at the discretion of board.
=================================================================================================
48
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Other Directorships Held by this
Principal Occupation During Past Five Years Trustee
Founding Director, The Winthrop Group, Inc. (consulting firm); None
Professor of Management, Faculty of Management, McGill
University
======================================================================================================
President and Chief Executive Officer, Newbury, Piret & None
Company, Inc. (investment banking firm)
======================================================================================================
Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss Helvetia Fund,
Inc. (closed-end investment
company) and AMVESCAP PLC
(investment managers)
======================================================================================================
President, John Winthrop & Co., Inc. None
(private investment firm)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Other Directorships Held by this
Principal Occupation During Past Five Years Officer
Secretary of PIM-USA; Senior Vice President-Legal of None
Pioneer; and Secretary/Clerk of most of PIM-USA's
subsidiaries since October 2000; Secretary of all of the
Pioneer Funds since September 2003 (Assistant
Secretary from November 2000 to September 2003);
and Senior Counsel, Assistant Vice President and Director of
Compliance of PIM-USA from April 1998 through
October 2000
==================================================================================================
Assistant Vice President and Senior Counsel of Pioneer since None
July 2002; Vice President and Senior Counsel of BISYS Fund
Services, Inc. (April 2001 to June 2002); Senior Vice
President and Deputy General Counsel of Funds Distributor,
Inc. (July 2000 to April 2001; Vice President and Associate
General Counsel from July 1996 to July 2000); Assistant
Secretary of all of the Pioneer Funds since September 2003
==================================================================================================
Partner, Hale and Dorr LLP; Assistant Secretary of all of None
Pioneer Funds since September 2003
==================================================================================================
Vice President-Fund Accounting, Administration and Custody None
Services of Pioneer (Manager from September 1996 to
February 1999); and Treasurer of all of the Pioneer Funds
(Assistant Treasurer from June 1999 to November 2000)
==================================================================================================
Assistant Vice President-Fund Accounting, Administration None
and Custody Services of Pioneer (Fund Accounting Manager
from 1994 to 1999); and Assistant Treasurer of all of the
Pioneer Funds since November 2000
==================================================================================================
49
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Name and Age Positions Held With the Fund Term of Office and Length of Service
Gary Sullivan (45) Assistant Treasurer Serves at the discretion of board.
==================================================================================================
Katherine Kim Sullivan (30) Assistant Treasurer Serves at the discretion of board.
==================================================================================================
50
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Other Directorships Held by this
Principal Occupation During Past Five Years Officer
Fund Accounting Manager-Fund Accounting, Administration None
and Custody Services of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds since May 2002
================================================================================================
Fund Administration Manager-Fund Accounting, None
Administration and Custody Services since June 2003;
Assistant Vice President-Mutual Fund Operations of
State Street Corporation from June 2002 to June 2003
(formerly Deutsche Bank Asset Management); Pioneer
Fund Accounting, Administration and Custody Services
(Fund Accounting Manager from August 1999 to May 2002,
Fund Accounting Supervisor from 1997 to July 1999);
Assistant Treasurer of all of the Pioneer Funds since
September 2003
================================================================================================
51
- --------------------------------------------------------------------------------
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
- --------------------------------------------------------------------------------
Your investment professional can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-8O0-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 10-digit account number, your three-digit fund number and your four-digit
personal identification number at hand.
6-Month Reinstatement Privilege (for Class A and Class B Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 6 months of your
redemption. You have the choice of investing in any Pioneer fund provided the
account has the exact same registration and meets the fund's minimum investment
requirement. Reinstated accounts may only purchase Class A fund shares.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need to
do is authorize a set amount of money to be moved out of your bank account into
the Pioneer fund of your choice. Investomatic also allows you to change the
dollar amount, frequency and investment date right over the phone. By putting
aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing Pioneer
to deduct from participating employees' paychecks. You specify the dollar amount
you want to invest into the Pioneer fund(s) of your choice.
52
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds you
wish to invest in. You choose the amounts and dates for Pioneer to sell shares
of your original fund and use the proceeds to buy shares of the other funds you
have chosen. Over time, your investment will be shifted out of the original
fund. (Automatic Exchange is available for originating accounts with a balance
of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals. You
decide the frequency and the day of the month. Pioneer will send the proceeds by
check to the address you designate, or electronically to your bank account. You
also can authorize Pioneer to make the redemptions payable to someone else.
(SWPs are available for accounts with a value of $10,000 or more.)
53
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@piog.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus.
[LOGO] PIONEER Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, Massachusetts 02109
www.pioneerfunds.com
14718-00-0104
(Copyright) 2003 Pioneer Funds Distributor, Inc.
Underwriter of Pioneer mutual funds, Member SIPC
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 10(a), 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;
(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.
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.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
Not applicable; to be answered on annual submissions after December 15, 2003.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation of
these controls and procedures as of a date within 90 days prior to the filing
date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
Filed herewith.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Emerging Markets Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date January 16, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date January 16, 2004
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date January 16, 2004
* Print the name and title of each signing officer under his or her signature.