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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 811-07318
Pioneer International Value 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, 2006 through May 31, 2007
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.
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PIONEER
-------
INTERNATIONAL
VALUE FUND
Semiannual
Report
5/31/07
[LOGO]PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 25
Notes to Financial Statements 33
Trustees, Officers and Service Providers 42
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. Those
were particularly useful guides during the past year, as U.S. and global stock
and bond markets grew strongly during the period.
In the 12 months ending May 31, 2007, global stock markets were supported by
relatively low short-term interest rates and generally strong economies. The
U.S. stock market, as measured by the Standard & Poor's 500 Stock Index, gained
approximately 23% over the 12-month period. International developed and
emerging markets equities performed even better, with MSCI's indexes of those
regions rising approximately 27% and 39%, respectively. The general U.S. bond
market, as measured by the Lehman Brothers Aggregate Bond Index, returned
roughly 7%. The high yield market, as measured by the Merrill Lynch High Yield
Bond Master II Index, returned approximately 13% during the same period.
While still strong, the rate of U.S. economic growth has slowed over the past
year. That was due in large part to a slowdown in new home construction and in
part to the lagging effects of rising energy and commodity prices as well as
rising short-term interest rates. But slowing economic activity is also due in
part to the natural maturation of the cyclical expansion as U.S. factories
approach full utilization and the labor markets approach full employment.
We have enjoyed a cyclical recovery with strong economic growth, and while U.S.
economic growth has slowed, we believe that continuing growth at a slower rate
appears to be more likely than a recession. The Federal Reserve Board has
indicated a reduced likelihood of future rate hikes, but continues to highlight
its commitment to keeping inflationary pressures contained. This is in keeping
with "best practices" among the world's central banks: low and stable inflation
is believed to be the best backdrop for stable economic growth and low average
unemployment.
In Europe, healthy labor markets are supporting growing consumption and solid
GDP growth, helped by productivity gains and a positive operating environment
for European companies that are finding strong export markets for their goods
and services around the globe. European inflationary pressures appear to be
largely under control,
2
Letter
with the European Central bank remaining strongly vigilant. Japanese economic
growth continues to make progress, and the country has become a more attractive
market as deflationary problems recede. Economic growth in emerging market
countries remains faster than in the developed world as they continue to "catch
up." Leading the way is China, which continues its rise as a world economic
power.
Looking forward, we believe that the overall climate for investors generally
will continue to be positive, although valuations are less attractive than they
were a year ago and a correction after a period of strong performance is
possible. Sudden swings in the markets are always to be expected. Just as
staying diversified and invested are important investment principles, it is
also important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to their particular risk
tolerance and investment objective.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, 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.
3
Pioneer International Value Fund
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/07
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International stocks continued to rally through the first half of the Fund's
fiscal year, which ended on May 31, 2007. With the momentum of growth shifting
from the United States to Europe and many developing countries, the Fund's
investments in these foreign markets posted healthy gains, as portfolio manager
Christopher Smart discusses in the following interview. Mr. Smart is
responsible for the Fund's day-to-day management and is supported by a team of
portfolio managers and analysts.
Q: How did Pioneer International Value Fund perform during the six months
ended May 31, 2007?
A: The Fund's Class A shares had a total return of 13.71% at net asset value
for the six months. The portfolio benefited from its investments in
Europe and emerging markets, particularly South Korea and Brazil. During
the same period, the Fund's benchmark index, the Morgan Stanley Capital
International (MSCI) All Country Free Index (excluding the United
States), rose 15.1% while the average return for the 214 International
Large-Cap Core funds in its Lipper category was 13.79%.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most
recent month-end performance results. Current performance may be lower or
higher than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
The Fund held several Japanese stocks that contributed positively to
performance, such as land developer Mitsui Fudosan and steel producer JFE
Holdings. However, there were a handful of companies that played a role in
the portfolio's underperformance relative to its benchmark index and peer
group. Nidec Corp., which makes small precision motors for computer hard
disk drives, was hurt by the advent of NAND flash memory - an alternative
technology. Profits for Kansai Electric Power were hurt by a temporary
shutdown at its nuclear facilities. Finally, Mizuho Financial Group
struggled in response to lower-than-expected loan demand across Japan.
Despite these setbacks, we continue to see good potential
4
Pioneer International Value Fund
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for growth in Japan, given the improvement in domestic spending and will
keep a sharp eye on progress at these companies.
Russia represented a much smaller weighting in the portfolio than Japan,
but a few holdings there suffered in response to the deteriorating
relationship between Russia and the West and concerns about the future
profitability of oil companies there. Lukoil Holding fell as a result of
declining oil prices and a rise in operating costs.
Q: Why did European stocks contribute so strongly to performance?
A: Major European economies continued to expand, while corporations on the
continent reported generally good profit growth, with many companies
raising their stock dividend payments to shareholders. The improvement
extended to Germany, which had lagged other European national economies
in recent years. Inflationary pressures remained subdued, while
short-term interest rates continued to be relatively moderate and
liquidity in the capital markets remained favorable - even after the
European Central Bank raised rates during the period. Heightened
merger-and-acquisition activity and the presence of many private equity
funds gave further support to the markets. The returns realized by U.S.
investors in Europe were helped further as the euro gained in value
against the U.S. dollar during the first part of 2007.
In Germany, the industrial conglomerate Siemens experienced strong demand
across most of its product divisions, which, in turn, gave it more pricing
power in the markets that it serves. Against a backdrop of increased
merger activity, another holding, ABN AMRO, saw its stock price climb
sharply as it became a target of a bidding war by several European banks.
Q: espite a pullback in the spring of 2006 and a sharp decline this past
February, the emerging markets performed quite well. What contributed to
this momentum?
A: Emerging markets continued to build on the impressive rally that began in
the fourth quarter of 2002. An extremely favorable environment of solid
growth, stable interest rates, a strong appetite for risk among
investors, and abundant liquidity in the world financial system have
provided a firm foundation for performance. Developments within the asset
class itself have
5
Pioneer International Value Fund
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/07 (continued)
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been equally positive. Fiscal restraint by emerging market governments has
resulted in lower debt, falling interest rates and, in many cases, budget
surpluses. On the corporate level, robust profit growth and the spread of
shareholder-friendly management practices continue to be important themes.
These developments, in turn, have led to increased confidence and rising
participation among overseas investors. Robust economic growth has also
contributed to the growth of a middle class - along with rising consumer
spending - in countries that in the past relied heavily on exports to fuel
their economies.
The Fund's performance was especially helped by its exposure to South
Korea and Brazil. South Korea has become the world's largest shipbuilder.
Hyundai Heavy Industries, which more than doubled in price during the
six-month reporting period, and Daewoo Heavy Industries were prime
beneficiaries of surging global demand and are booking orders out three
years for their ships. Unibanco, Brazil's third largest bank, is
benefiting from a continued acceleration of consumer spending and growth
in its credit card business and consumer lending operations. The Brazilian
mining company CVRD climbed in response to strong iron ore, nickel and
aluminum prices.
Q: What is your outlook for the coming months?
A: We remain optimistic that growth in continental Europe, Japan and the
emerging markets can offset much of the slowdown in the United States, at
least as long as America's unemployment rate is subdued and wages are
growing. While we do not expect European stock markets to repeat their
robust results for 2005 and 2006, we continue to have a positive outlook.
European stocks have remained reasonably priced, with very competitive
dividends, even if earnings growth rates were to slow, as we expect.
European equities have remained competitively valued compared to other
asset classes, and the corporate sector generally seems to be in solid
financial shape, with healthy cash flows, strong balance sheets and
reasonable debt levels. We continue to see good potential for growth in
Japan, given the improvement in domestic spending - a sign of rising
consumer confidence. On the corporate level, companies have a lot of
money on their balance sheets to invest in new factories and other
infrastructure projects.
6
Pioneer International Value Fund
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There is always a degree of risk with investing in emerging markets, but
we believe the long-term outlook remains favorable due to the continued
improvements in its fundamental underpinnings. The rapid improvements in
government finances, corporate governance practices, and political
stability are all keys to the emerging markets' outperformance in recent
years, and we expect that these improvements will continue in the years
ahead. The result is that the asset class seems to be more resilient to
external shocks than it has been in the past. In short, we believe the
inevitable declines that periodically occur in emerging market stocks
should not obscure the positive, longer-term story that continues to
unfold.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The portfolio may invest a substantial amount of its assets in issuers located
in a limited number of countries and therefore is susceptible to adverse
economic, political or regulatory developments affecting those countries. At
times, the Fund's investments may represent industries or industry sectors that
are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries or sectors.
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.
7
Pioneer International Value Fund
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PORTFOLIO SUMMARY 5/31/07
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Sector Distribution
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(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 26.9%
Industrials 16.3%
Consumer Discretionary 12.1%
Energy 8.8%
Materials 8.0%
Consumer Staples 7.7%
Health Care 6.1%
Telecommunication Services 5.5%
Information Technology 4.8%
Utilities 3.8%
Geographical Distribution
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(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Japan 24.7%
United Kingdom 16.0%
France 9.5%
Germany 6.5%
Switzerland 5.2%
South Korea 5.2%
Australia 4.3%
Brazil 3.6%
Russia 2.8%
Mexico 2.4%
Singapore 2.3%
South Africa 2.2%
United States 2.0%
Belgium 1.8%
Netherlands 1.6%
Sweden 1.3%
Italy 1.2%
Ireland 1.1%
Taiwan 1.1%
People's Republic of China 1.1%
Turkey 1.0%
Other (individually less than 1%) 3.1%
10 Largest Holdings
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(As a percentage of equity holdings)*
1. Toyota Motor Co. 2.47%
2. BNP Paribas SA 2.04
3. Royal Bank of Scotland Group Plc 2.02
4. Royal Dutch Shell Plc 2.01
5. CS Group 1.92
6. Mitsubishi Corp. 1.79
7. Mizuho Financial Group, Inc. 1.78
8. Hyundai Heavy Industries 1.68
9. Inmarsat Plc 1.52
10. Eutelsat Communications 1.46
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8
Pioneer International Value Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 5/31/07 11/30/06
- ------- ------- --------
A $27.16 $23.98
B $24.74 $21.86
C $24.52 $21.64
Class 2/1/07 11/30/06
----- ------ --------
R $24.92 $23.91
Distributions Per Share
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12/1/06 - 5/31/07
-----------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- -------------
A $0.0975 $ - $ -
B $ - $ - $ -
C $ - $ - $ -
12/1/06 - 2/1/07
-----------------
Class
-----
R $0.0807 $ - $ -
9
Pioneer International Value Fund
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PERFORMANCE UPDATE 5/31/07 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) All Country
World Free Index (ACWF), excluding the U.S.
- ---------------------------------------------------
Average Annual Total Returns
(As of May 31, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
10 Years 3.73% 3.12%
5 Years 14.01 12.66
1 Year 25.48 18.25
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Expense Ratio
(Per prospectus dated April 1, 2007)
Gross Net
1.79% 1.70%
- ---------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
International MSCI ACWF
Value Fund ex U.S. Index
------------ -------------
5/97 9425 10000
5/99 8623 11202
5/01 7681 10964
5/03 5926 9027
5/05 8278 14110
5/07 13599 23821
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 4/1/09 for Class A Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI All Country World Free Index, excluding the United States, measures
the performance of developed and emerging market stock markets. Index returns
are calculated monthly, assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an index.
10
Pioneer International Value Fund
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PERFORMANCE UPDATE 5/31/07 CLASS B SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund, compared to that of the
Morgan Stanley Capital International (MSCI) All Country World Free Index
(ACWF), excluding the U.S.
Average Annual Total Returns
(As of May 31, 2007)
- -----------------------------------------------
If If
Period Held Redeemed
10 Years 2.71% 2.71%
5 Years 12.80 12.80
1 Year 24.39 20.39
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Expense Ratio
(Per prospectus dated April 1, 2007)
Gross Net
2.76% 2.60%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
International MSCI ACWF
Value Fund ex U.S. Index
------------ -------------
5/97 10000 10000
5/99 8992 11202
5/01 7862 10964
5/03 5935 9027
5/05 8094 14110
5/07 13062 23821
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied
to withdrawals was shortened to 5 years. The maximum CDSC for class B shares
continues to be 4%. For more complete information, please see the prospectus
for details. Note: Shares purchased prior to December 1, 2004 remain subject to
the CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The net expense ratio reflects contractual expense limitations currently in
effect through 4/1/08 for Class B Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The MSCI All Country World Free Index, excluding the United States, measures
the performance of developed and emerging market stock markets. Index returns
are calculated monthly, assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an index.
11
Pioneer International Value Fund
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PERFORMANCE UPDATE 5/31/07 CLASS C SHARES
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Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund, compared to that of the
Morgan Stanley Capital International (MSCI) All Country World Free Index
(ACWF), excluding the U.S.
Average Annual Total Returns
(As of May 31, 2007)
- -----------------------------------------------
If If
Period Held Redeemed
10 Years 2.74% 2.74%
5 Years 12.90 12.90
1 Year 24.66 24.66
- -----------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2007)
Gross Net
2.54% 2.54%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer
International MSCI ACWF
Value Fund ex U.S. Index
------------ -------------
5/97 10000 10000
5/99 9050 11202
5/01 7890 10964
5/03 5934 9027
5/05 8099 14110
5/07 13108 23821
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The net expense ratio reflects contractual expense limitations currently in
effect through 4/1/08 for Class C Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The MSCI All Country World Free Index, excluding the United States, measures
the performance of developed and emerging market stock markets. Index returns
are calculated monthly, assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an index.
12
Pioneer International Value Fund
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COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments
and redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer International Value Fund
Based on actual returns from December 1, 2006 through May 31, 2007**
Share Class A B C R
- ----------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 12/1/06
Ending Account Value $1,137.10 $1,131.80 $1,133.10 $1,047.00
(after expenses)
On 5/31/07**
Expenses Paid During Period* $ 9.06 $ 13.82 $ 12.71 $ 3.50
* Expenses are equal to the Fund's annualized expense ratio of 1.70%, 2.60%,
2.39%, and 1.98% for Class A, Class B, Class C and Class R shares,
respectively, multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the partial year period) (63/365 for
Class R shares).
** 2/1/07 for Class R Shares.
13
Pioneer International Value Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer International Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from December 1, 2006 through May 31, 2007**
Share Class A B C R
- ----------------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 12/1/06
Ending Account Value $1,016.45 $1,011.97 $1,013.01 $1,005.21
(after expenses)
On 5/31/07**
Expenses Paid During Period* $ 8.55 $ 13.04 $ 11.99 $ 3.43
* Expenses are equal to the Fund's annualized expense ratio of 1.70%, 2.60%,
2.39%, and 1.98% for Class A, Class B, Class C and Class R shares,
respectively, multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the partial year period) (63/365 for
Class R shares).
** 2/1/07 for Class R Shares.
14
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/07 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
PREFERRED STOCKS - 1.5%
Automobiles & Components - 0.8%
Automobile Manufacturers - 0.8%
700 Porsche AG $ 1,237,156
------------
Total Automobiles & Components $ 1,237,156
------------
Utilities - 0.7%
Multi-Utilities - 0.7%
11,400 RWE AG $ 1,212,157
------------
Total Utilities $ 1,212,157
------------
TOTAL PREFERRED STOCKS
(Cost $1,701,951) $ 2,449,313
------------
COMMON STOCKS - 96.3%
Energy - 8.7%
Integrated Oil & Gas - 6.7%
39,800 Gazprom (A.D.R.)* $ 1,452,700
20,100 Lukoil Holding (A.D.R.) 1,508,053
19,883 Petrobras Brasileiro (A.D.R.) 1,906,382
42,756 Repsol SA 1,566,343
88,300 Royal Dutch Shell Plc 3,287,289
53,700 Statoil ASA*(c) 1,463,283
------------
$ 11,184,050
------------
Oil & Gas Equipment & Services - 0.6%
12,400 Technip $ 962,133
------------
Oil & Gas Exploration & Production - 1.1%
1,919,300 CNOOC, Ltd. $ 1,808,550
------------
Oil & Gas Refining & Marketing - 0.3%
5,500 Petroplus Holdings AG* $ 509,718
------------
Total Energy $ 14,464,451
------------
Materials - 7.9%
Construction Materials - 2.3%
19,195 CRH Plc $ 932,842
20,400 Holcim, Ltd. (c) 2,256,869
3,700 Lafarge Br (c) 640,511
------------
$ 3,830,222
------------
The accompanying notes are an integral part of these financial statements. 15
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Diversified Chemical - 0.4%
234,500 UBE Industries, Ltd.* $ 713,562
------------
Diversified Metals & Mining - 4.9%
84,685 Broken Hill Proprietary Co., Ltd. $ 2,227,610
53,600 Companhia Vale do Rio Doce (A.D.R.) (c) 2,057,168
64,000 Dowa Mining Co., Ltd.* 615,152
24,121 Freeport-McMoRan Copper & Gold, Inc. (Class B) 1,898,323
17,461 Rio Tinto Plc 1,269,175
------------
$ 8,067,428
------------
Steel - 0.3%
109,800 Godo Steel, Ltd.* $ 505,351
------------
Total Materials $ 13,116,563
------------
Capital Goods - 13.6%
Building Products - 0.5%
7,070 Compagnie de Saint Gobain $ 775,530
------------
Construction & Engineering - 0.3%
27,500 Chiyoda Corp.* $ 556,606
------------
Construction & Farm Machinery & Heavy Trucks - 4.2%
46,345 Daewoo Heavy Industries & Machinery, Ltd. $ 2,295,811
7,977 Hyundai Heavy Industries* 2,737,010
74,200 Komatsu, Ltd.* 1,985,136
------------
$ 7,017,957
------------
Electrical Component & Equipment - 1.7%
9,400 Schneider Electric SA $ 1,357,470
103,300 Sumitomo Electric 1,567,339
------------
$ 2,924,809
------------
Industrial Conglomerates - 2.9%
269,000 Keppel Corp. $ 1,944,529
116,400 Hutchinson Whampoa, Ltd. 1,127,468
13,289 Siemens 1,750,783
------------
$ 4,822,780
------------
16 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Industrial Machinery - 1.5%
39,900 AB SKF $ 856,988
8,200 Fanuc, Ltd.* 787,240
51,300 Nabtesco Corp.* 726,788
39,900 AB SKF* 57,559
------------
$ 2,428,575
------------
Trading Companies & Distributors - 2.5%
119,100 Mitsubishi Corp.* $ 2,915,750
51,400 Wolsely 1,333,461
------------
$ 4,249,211
------------
Total Capital Goods $ 22,775,468
------------
Commercial Services & Supplies - 0.3%
Office Services & Supplies - 0.3%
32,800 Corporate Express* $ 428,202
------------
Total Commercial Services & Supplies $ 428,202
------------
Transportation - 1.9%
Air Freight & Couriers - 0.7%
3,800 Panalpina Welttransport Holding AG $ 743,918
8,526 TNT NV 377,467
------------
$ 1,121,385
------------
Railroads - 1.2%
273 East Japan Railway Co.* $ 2,115,874
------------
Total Transportation $ 3,237,259
------------
Automobiles & Components - 3.9%
Automobile Manufacturers - 3.4%
16,600 Hyundai Motor Co., Ltd. $ 1,174,422
108,000 Isuzu Motors, Ltd.* 530,111
67,000 Toyota Motor Co.* 4,036,532
------------
$ 5,741,065
------------
Tires & Rubber - 0.5%
5,500 Continental AG (c) $ 777,990
------------
Total Automobiles & Components $ 6,519,055
------------
The accompanying notes are an integral part of these financial statements. 17
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Consumer Durables & Apparel - 2.6%
Apparel, Accessories & Luxury Goods - 0.3%
8,220 Adidas-Salomon AG $ 524,765
------------
Consumer Electronics - 1.6%
52,300 Matsushita Electric Industrial Co., Ltd.* $ 1,107,787
18,400 Sony Corp.* 1,061,366
10,500 TomTom NV*(c) 479,351
------------
$ 2,648,504
------------
Homebuilding - 0.7%
42,300 Persimmon Plc $ 1,144,303
------------
Total Consumer Durables & Apparel $ 4,317,572
------------
Consumer Services - 0.4%
Hotels, Resorts & Cruise Lines - 0.4%
12,400 Carnival Corp. $ 625,456
------------
Total Consumer Services $ 625,456
------------
Media - 2.0%
Broadcasting & Cable Television - 1.4%
95,900 Eutelsat Communications $ 2,387,756
------------
Movies & Entertainment - 0.6%
22,900 Vivendi SA $ 997,925
------------
Total Media $ 3,385,681
------------
Retailing - 2.1%
Apparel Retail - 1.2%
349,800 Truworths International, Ltd. $ 2,038,199
------------
Department Stores - 0.9%
4,000 Pinault-Printemps Redoute*(c) $ 730,281
72,100 The Daimaru*(c) 802,169
------------
$ 1,532,450
------------
Total Retailing $ 3,570,649
------------
Food & Drug Retailing - 1.6%
Drug Retail - 0.6%
44,900 Alliance Boots Plc $ 1,001,360
------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Food Retail - 1.0%
180,400 Tesco Plc $ 1,639,210
------------
Total Food & Drug Retailing $ 2,640,570
------------
Food, Beverage & Tobacco - 5.3%
Brewers - 1.9%
9,700 Inbev NV $ 817,299
93,500 KIRIN Brewery Co., Ltd.* 1,448,899
36,600 South African Breweries Plc 867,511
------------
$ 3,133,709
------------
Distillers & Vintners - 0.6%
57,900 C&C Group Plc $ 963,957
------------
Packaged Foods & Meats - 1.1%
47,400 Ajinomoto Co., Inc.* $ 547,088
43,000 Unilever NV 1,283,086
------------
$ 1,830,174
------------
Soft Drinks - 1.0%
42,900 Fomento Economico Mexicano SA de C.V. $ 1,709,136
------------
Tobacco - 0.7%
37,200 British American Tobacco Plc $ 1,260,067
------------
Total Food, Beverage & Tobacco $ 8,897,043
------------
Household & Personal Products - 0.7%
Household Products - 0.7%
19,800 Kao Corp.* $ 547,877
10,400 Reckitt Benckiser Plc 565,658
------------
$ 1,113,535
------------
Total Household & Personal Products $ 1,113,535
------------
Health Care Equipment & Services - 1.1%
Health Care Equipment - 0.5%
5,800 Synthes, Inc. $ 723,393
------------
Health Care Services - 0.2%
2,600 Fresenius Medical Care AG $ 381,590
------------
Health Care Technology - 0.4%
26,200 Agfa Gevaert NV (c) $ 684,382
------------
Total Health Care Equipment & Services $ 1,789,365
------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Pharmaceuticals & Biotechnology - 4.9%
Pharmaceuticals - 4.9%
24,288 Astrazeneca Plc $ 1,290,572
26,500 Bristol-Myers Squibb Co. 803,215
73,200 Daiichi Sankyo Co., Ltd.* 2,011,806
10,334 Roche Holdings AG 1,894,421
32,400 Shionogi & Co., Ltd.* 556,010
13,582 Shire Pharmaceuticals Group Plc (A.D.R.) 947,345
11,400 UCB SA (c) 666,568
------------
$ 8,169,937
------------
Total Pharmaceuticals & Biotechnology $ 8,169,937
------------
Banks - 16.7%
Diversified Banks - 16.7%
108,149 Barclays Plc $ 1,546,321
27,445 BNP Paribas SA (c) 3,331,339
45,600 Commonwealth Bank of Australia 2,090,118
112,492 Development Bank of Singapore, Ltd. 1,787,317
22,700 Dexia (c) 728,652
158,700 Intesa Sanpaolo 1,210,210
17,773 Kookmin Bank (A.D.R.)*(c) 1,606,501
- Mitsubishi UFJ Financial Group, Inc. 4,378
412 Mizuho Financial Group, Inc. 2,911,242
38,000 National Australia Bank, Ltd.* 1,337,334
264,941 Royal Bank of Scotland Group Plc 3,295,589
7,948 Societe Generale 1,548,932
110,100 Standard Bank Group, Ltd. 1,625,695
353,361 Turkiye Is Bankasi (Isbank) 1,645,938
16,700 Uniao de Bancos Brasileiros SA (Unibanco)
(G.D.R.) (144A) 1,875,577
63,100 Westpac Banking Corp. 1,364,570
------------
$ 27,909,713
------------
Total Banks $ 27,909,713
------------
Diversified Financials - 4.2%
Asset Management & Custody Banks - 0.4%
53,400 Man Group Plc $ 621,291
------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Diversified Capital Markets - 2.6%
41,221 CS Group (c) $ 3,135,290
8,000 Deutsche Bank AG (c) 1,217,288
------------
$ 4,352,578
------------
Investment Banking & Brokerage - 1.2%
100,800 Nomura Securites Co., Ltd.* $ 2,071,500
------------
Total Diversified Financials $ 7,045,369
------------
Insurance - 3.5%
Multi-Line Insurance - 2.6%
8,200 Allianz AG $ 1,820,867
52,900 Aviva Plc 835,398
39,365 AXA 1,721,683
------------
$ 4,377,948
------------
Property & Casualty Insurance - 0.9%
114,305 Mitsui Sumitomo Insurance Co.* $ 1,425,069
------------
Total Insurance $ 5,803,017
------------
Real Estate - 1.9%
Real Estate Management & Development - 1.9%
162 Kenedix, Inc.* $ 694,931
51,701 Mitsui Fudosan Co.* 1,623,728
21,800 Nomura Real Estate Holdings* 799,832
------------
$ 3,118,491
------------
Total Real Estate $ 3,118,491
------------
Software & Services - 0.6%
Application Software - 0.3%
112,000 The Sage Group Plc $ 556,403
------------
IT Consulting & Other Services - 0.3%
7,100 Atos Origin* $ 437,120
------------
Total Software & Services $ 993,523
------------
Technology Hardware & Equipment - 2.3%
Communications Equipment - 0.8%
320,700 Ericsson LM Tel Sur B $ 1,218,191
------------
Computer Hardware - 0.3%
71,100 Toshiba Corp.* $ 534,057
------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Electronic Equipment & Instruments - 0.3%
8,700 Nidec Corp.* $ 530,393
------------
Office Electronics - 0.9%
25,500 Canon, Inc. $ 1,497,791
------------
Total Technology Hardware & Equipment $ 3,780,432
------------
Semiconductors - 1.8%
Semiconductor Equipment - 0.7%
16,800 Tokyo Electron, Ltd. $ 1,213,876
------------
Semiconductors - 1.1%
124,960 Hon Hai Precision Industry (G.D.R.) $ 1,836,875
------------
Total Semiconductors $ 3,050,751
------------
Telecommunication Services - 5.4%
Alternative Carriers - 1.5%
309,700 Inmarsat Plc $ 2,486,253
------------
Integrated Telecommunication Services - 0.2%
54,700 Telekomunikacja Polska SA $ 404,790
------------
Wireless Telecommunication Services - 3.7%
35,700 America Movil (A.D.R.) $ 2,161,637
111 KDDI Corp.* 952,499
31,306 Mobile Telesystems (A.D.R.)* 1,696,159
408,400 Vodafone Group Plc 1,282,621
------------
$ 6,092,916
------------
Total Telecommunication Services $ 8,983,959
------------
Utilities - 2.9%
Electric Utilities - 2.0%
9,049 E.On AG $ 1,486,978
66,200 Enel S.p.A.* 753,205
45,200 Kansai Electric Power Co.* 1,135,074
------------
$ 3,375,257
------------
Multi-Utilities - 0.9%
57,500 National Grid Plc* $ 890,297
12,300 Suez Lyonnaise des Eaux 707,739
------------
$ 1,598,036
------------
Total Utilities $ 4,973,293
------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
TOTAL COMMON STOCKS
(Cost $123,706,994) $160,709,354
------------
RIGHTS/WARRANTS - 0.0%
Food, Beverage & Tobacco - 0.0%
Packaged Foods & Meats - 0.1%
43,000 Unilever NV Rights, Exp. 6/21/07* $ -
------------
TOTAL RIGHTS/WARRANTS
(Cost $0) $ -
------------
TEMPORARY CASH INVESTMENTS - 11.8%
Time Deposits - 11.8%
6,084,966 Dresdner Bank AG $ 6,084,966
5,709,595 Rabobank Nederland N.V. 5,709,595
7,961,823 Royal Bank of Canada 7,961,823
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $19,756,384) $ 19,756,384
------------
TOTAL INVESTMENT IN SECURITIES - 109.6%
(Cost $145,165,329) (a) (b) $182,915,051
------------
OTHER ASSETS AND LIABILITIES - (9.6)% ) $(15,978,614)
------------
TOTAL NET ASSETS - 100.0% $166,936,437
============
(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 May
31, 2007, the value of these securities amounted to $1,875,577 or 1.1%
of total net assets.
(a) At May 31, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $145,686,264 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $39,223,489
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (1,994,702)
-----------
Net unrealized gain $37,228,787
===========
The accompanying notes are an integral part of these financial statements. 23
Pioneer International Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
(b) Distributions of investments by country of issue (excluding temporary
cash investments), as a percentage of total investment in securities,
is as follows:
Japan 24.7%
United Kingdom 16.0
France 9.5
Germany 6.5
Switzerland 5.2
South Korea 5.2
Australia 4.3
Brazil 3.6
Russia 2.8
Mexico 2.4
Singapore 2.3
South Africa 2.2
United States 2.0
Belgium 1.8
Netherlands 1.6
Sweden 1.3
Italy 1.2
Ireland 1.1
Taiwan 1.1
People's Republic of China 1.1
Turkey 1.0
Other (individually less than 1%) 3.1
-----
100.0%
=====
(c) At May 31, 2007, the following securities were out on loan:
Shares Security Value
25,900 Agfa Gevaert NV $ 676,508
22,300 BNP Paribas SA 2,706,774
53,064 Companhia Vale do Rio Doce (A.D.R.) 2,036,596
5,400 Continental AG 763,830
40,800 CS Group 3,103,248
56,900 The Daimaru* 633,297
7,900 Deutsche Bank AG 1,202,064
7,200 Dexia 231,120
20,100 Holcim, Ltd. 2,223,663
17,595 Kookmin Bank (A.D.R.)* 1,590,412
3,600 Lafarge Br 623,196
3,900 Pinault-Printemps Redoute* 712,023
53,100 Statoil ASA* 1,446,975
10,200 TomTom NV* 465,630
11,200 UCB SA 654,864
-----------
Total $19,070,200
===========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended May 31, 2007 aggregated $65,889,280 and $91,582,673,
respectively.
24 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 5/31/07 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$19,070,200) (cost $145,165,329) $182,915,051
Cash 1,778,272
Foreign currencies, at value (cost $709,326) 712,075
Receivables -
Investment securities sold 1,898,181
Fund shares sold 36,924
Dividends, interest and foreign taxes withheld 856,319
Other 61,858
-------------
Total assets $188,258,680
-------------
LIABILITIES:
Payables -
Investment securities purchased $ 1,142,040
Fund shares repurchased 201,385
Forward foreign currency settlement contracts, net 2,795
Upon return of securities loaned 19,756,384
Due to affiliates 157,199
Accrued expenses 62,440
-------------
Total liabilities $ 21,322,243
-------------
NET ASSETS:
Paid-in capital $156,539,277
Undistributed net investment income 1,001,945
Accumulated net realized loss on investments and foreign
currency transactions (28,353,203)
Net unrealized gain on investments 37,749,722
Net unrealized loss on forward foreign currency contracts
and other assets and liabilities denominated in foreign
currencies (1,304)
-------------
Total net assets $166,936,437
=============
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $138,953,027/5,116,129 shares) $ 27.16
=============
Class B (based on $15,288,554/618,019 shares) $ 24.74
=============
Class C (based on $12,694,856/517,789 shares) $ 24.52
=============
MAXIMUM OFFERING PRICE:
Class A ($27.16 [divided by] 94.25%) $ 28.82
=============
The accompanying notes are an integral part of these financial statements. 25
Pioneer International Value Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 5/31/07
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $295,204) $2,371,750
Interest 71,170
Income from securities loaned, net 42,620
-----------
Total investment income $ 2,485,540
-----------
EXPENSES:
Management fees $ 687,499
Transfer agent fees and expenses
Class A 335,022
Class B 47,095
Class C 23,555
Class R 1,147
Distribution fees
Class A 155,215
Class B 74,695
Class C 59,179
Class R 474
Administrative reimbursements 18,198
Custodian fees 47,231
Registration fees 6,060
Professional fees 29,788
Printing expense 18,335
Fees and expenses of nonaffiliated trustees 789
Miscellaneous 10,059
-----------
Total expenses $ 1,514,341
Less management fees waived and expenses
reimbursed by Pioneer Investment Management, Inc. (15,821)
Less fees paid indirectly (15,227)
-----------
Net expenses $ 1,483,293
-----------
Net investment income $ 1,002,247
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $14,242,268
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (32,145) $14,210,123
----------- -----------
Change in net unrealized gain on:
Investments $5,615,151
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (20,987) $ 5,594,164
----------- -----------
Net gain on investments and foreign currency transactions $19,804,287
-----------
Net increase in net assets resulting from operations $20,806,534
===========
26 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 5/31/07 and the Year Ended 11/30/06, respectively
Six Months
Ended 5/31/07 Year Ended
(unaudited) 11/30/06
FROM OPERATIONS:
Net investment income $ 1,002,247 $ 648,669
Net realized gain on investments and foreign currency
transactions 14,210,123 29,168,734
Change in net unrealized gain on investments and
foreign currency transactions 5,594,164 7,533,538
------------- -------------
Net increase in net assets resulting from operations $ 20,806,534 $ 37,350,941
------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.10 and $0.06 per share, respectively) $ (539,538) $ (422,171)
Class R ($0.08 and $0.05 per share, respectively) (1,837) (800)
------------- -------------
Total distributions to shareowners $ (541,375) $ (422,971)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 11,705,415 $ 28,688,301
Reinvestment of distributions 458,641 343,522
Cost of shares repurchased (35,004,075) (48,210,085)
Redemption fees - 6,258
------------- -------------
Net decrease in net assets resulting from
Fund share transactions $ (22,840,019) $ (19,172,004)
------------- -------------
Net increase (decrease) in net assets $ (2,574,860) $ 17,755,966
NET ASSETS:
Beginning of period 169,511,297 151,755,331
------------- -------------
End of period $ 166,936,437 $ 169,511,297
============= =============
Undistributed net investment income $ 1,001,945 $ 541,073
============= =============
The accompanying notes are an integral part of these financial statements. 27
Pioneer International Value Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 327,091 $ 8,231,008 873,460 $ 19,136,281
Reinvestment of distributions 18,607 456,827 16,934 342,739
Redemption fees - - - 6,117
Less shares repurchased (1,176,867) (29,283,304) (1,672,704) (36,591,466)
---------- ------------- ---------- -------------
Net decrease (831,169) $ (20,595,469) (782,310) $ (17,106,329)
========== ============= ========== =============
CLASS B
Shares sold 78,703 $ 1,804,247 238,751 $ 4,800,775
Redemption fees - - - 121
Less shares repurchased (159,803) (3,644,577) (351,778) (7,027,253)
---------- ------------- ---------- -------------
Net decrease (81,100) $ (1,840,330) (113,027) $ (2,226,357)
========== ============= ========== =============
CLASS C
Shares sold 72,952 $ 1,646,999 223,709 $ 4,436,906
Redemption fees - - - 20
Less shares repurchased (64,919) (1,477,714) (224,137) (4,423,235)
---------- ------------- ---------- -------------
Net increase (decrease) 8,033 $ 169,285 (428) $ 13,691
========== ============= ========== =============
CLASS R
Shares sold 955 $ 23,161 14,801 $ 314,339
Reinvestment of distributions 74 1,814 39 783
Less shares repurchased (24,166) (598,480) (7,410) (168,131)
---------- ------------- ---------- -------------
Net increase (decrease) (23,137) $ (573,505) 7,430 $ 146,991
========== ============= ========== =============
28 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
5/31/07 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS A (unaudited) 11/30/06 11/30/05 11/30/04 11/30/03 11/30/02
Net asset value, beginning of period $ 23.98 $ 19.08 $ 16.76 $ 13.72 $ 11.86 $ 13.30
------- ------- ------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.19 $ 0.12 $ 0.12 $ 0.04 $ 0.01 $ (0.01)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 3.09 4.84 2.20 3.00 1.85 (1.43)
------- ------- ------- -------- -------- --------
Net increase (decrease) from investment operations $ 3.28 $ 4.96 $ 2.32 $ 3.04 $ 1.86 $ (1.44)
Distributions to shareowners:
Net investment income (0.10) (0.06) - - - -
------- ------- ------- -------- -------- --------
Redemption fee $ - $ -(a) $ -(a) $ - $ - $ -
------- ------- ------- -------- -------- --------
Net increase (decrease) in net asset value $ 3.18 $ 4.90 $ 2.32 $ 3.04 $ 1.86 $ (1.44)
------- ------- ------- -------- -------- --------
Net asset value, end of period $ 27.16 $ 23.98 $ 19.08 $ 16.76 $ 13.72 $ 11.86
======= ======= ======= ======== ======== ========
Total return* 13.71% 26.07% 13.84% 22.16% 15.68% (10.83)%
Ratio of net expenses to average net assets+ 1.72%** 1.71% 1.70% 1.82% 2.36% 2.18%
Ratio of net investment income (loss) to average net assets+ 1.35%** 0.52% 0.61% 0.28% 0.08% (0.15)%
Portfolio turnover rate 82%** 98% 111% 122% 101% 34%
Net assets, end of period (in thousands) $138,953 $142,645 $128,426 $125,880 $107,260 $100,287
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.74%** 1.79% 1.88% 1.99% 2.35% 2.17%
Net investment income (loss) 1.33%** 0.44% 0.43% 0.11% 0.09% (0.14)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.70%** 1.70% 1.70% 1.82% 2.36% 2.18%
Net investment income (loss) 1.37%** 0.53% 0.61% 0.28% 0.08% (0.15)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than one cent per share.
The accompanying notes are an integral part of these financial statements. 29
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
5/31/07 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS B (unaudited) 11/30/06 11/30/05 11/30/04 11/30/03 11/30/02
Net asset value, beginning of period $ 21.86 $ 17.49 $ 15.49 $ 12.86 $ 11.25 $ 12.76
------- ------- ------- ------- ------- ---------
Increase (decrease) from investment operations:
Net investment gain (loss) $ 0.06 $ (0.07) $ (0.04) $ (0.15) $ (0.15) $ (0.62)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.82 4.44 2.04 2.78 1.76 (0.89)
------- ------- ------- ------- ------- ---------
Net increase (decrease) from investment operations $ 2.88 $ 4.37 $ 2.00 $ 2.63 $ 1.61 $ (1.51)
------- ------- ------- ------- ------- ---------
Redemption fee $ - $ -(a) $ -(a) $ - $ - $ -
------- ------- ------- ------- ------- ---------
Net increase (decrease) in net asset value $ 2.88 $ 4.37 $ 2.00 $ 2.63 $ 1.61 $ (1.51)
------- ------- ------- ------- ------- ---------
Net asset value, end of period $ 24.74 $ 21.86 $ 17.49 $ 15.49 $ 12.86 $ 11.25
======= ======= ======= ======= ======= =========
Total return* 13.18% 24.99% 12.91% 20.45% 14.31% (11.83)%
Ratio of net expenses to average net assets+ 2.63%** 2.62% 2.57% 3.15% 3.55% 3.13%
Ratio of net investment income (loss) to average net assets+ 0.42%** (0.41)% (0.25)% (1.04)% (1.12)% (1.08)%
Portfolio turnover rate 82%** 98% 111% 122% 101% 34%
Net assets, end of period (in thousands) $15,289 $15,282 $14,205 $14,051 $14,138 $ 16,861
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.64%** 2.76% 2.96% 3.14% 3.54% 3.12%
Net investment income (loss) 0.41%** (0.55)% (0.64)% (1.03)% (1.11)% (1.07)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.60%** 2.60% 2.56% 3.15% 3.55% 3.13%
Net investment income (loss) 0.45%** (0.39)% (0.24)% (1.04)% (1.12)% (1.08)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than one cent per share.
30 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
5/31/07 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS C (unaudited) 11/30/06 11/30/05 11/30/04 11/30/03 11/30/02
Net asset value, beginning of period $ 21.64 $ 17.30 $ 15.32 $ 12.71 $ 11.11 $ 12.61
------- ------- ------- ------- ------- ---------
Increase (decrease) from investment operations:
Net investment gain (loss) $ 0.08 $ (0.06) $ (0.04) $ (0.12) $ (0.11) $ (0.53)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.80 4.40 2.02 2.73 1.71 (0.97)
------- ------- ------- ------- ------- ---------
Net increase (decrease) from investment operations $ 2.88 $ 4.34 $ 1.98 $ 2.61 $ 1.60 $ (1.50)
------- ------- ------- ------- ------- ---------
Redemption fee $ - $ -(a) $ -(a) $ - $ - $ -
------- ------- ------- ------- ------- ---------
Net increase (decrease) in net asset value $ 2.88 $ 4.34 $ 1.98 $ 2.61 $ 1.60 $ (1.50)
------- ------- ------- ------- ------- ---------
Net asset value, end of period $ 24.52 $ 21.64 $ 17.30 $ 15.32 $ 12.71 $ 11.11
======= ======= ======= ======= ======= =========
Total return* 13.31% 25.09% 12.92% 20.54% 14.40% (11.90)%
Ratio of net expenses to average net assets+ 2.41%** 2.54% 2.57% 3.12% 3.41% 3.32%
Ratio of net investment income (loss) to average net assets+ 0.73%** (0.35)% (0.26)% (1.00)% (0.96)% (1.21)%
Portfolio turnover rate 82%** 98% 111% 122% 101% 34%
Net assets, end of period (in thousands) $12,695 $11,030 $ 8,826 $ 6,872 $ 4,403 $ 3,859
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.41%** 2.54% 2.79% 3.12% 3.40% 3.31%
Net investment income (loss) 0.73%** (0.35)% (0.48)% (1.00)% (0.96)% (1.20)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.39%** 2.53% 2.57% 3.12% 3.41% 3.32%
Net investment income (loss) 0.75%** (0.33)% (0.26)% (1.00)% (0.96)% (1.21)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ 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. 31
Pioneer International Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
12/1/06
to 4/1/03 (a)
2/1/07 (c) Year Ended Year Ended Year Ended to
CLASS R (unaudited) 11/30/06 11/30/05 11/30/04 11/30/03
Net asset value, beginning of period $23.91 $19.07 $16.79 $13.76 $10.54
------ ------ ------ ------ ------
Increase from investment operations:
Net investment income $ 0.13 $ 0.03 $ 0.06 $ 0.02 $ 0.02
Net realized and unrealized gain on investments and
foreign currency transactions 0.96 4.86 2.22 3.01 3.20
------ ------ ------ ------ ------
Net increase from investment operations $ 1.09 $ 4.89 $ 2.28 $ 3.03 $ 3.22
------ ------ ------ ------ ------
Distributions to shareowners:
Net investment income $(0.08) $(0.05) $ - $ - $ -
------ ------ ------ ------ ------
Redemption fee $ - $ -(b) $ - $ - $ -
------ ------ ------ ------ ------
Net increase in net asset value $ 1.01 $ 4.84 $ 2.28 $ 3.03 $ 3.22
------ ------ ------ ------ ------
Net asset value, end of period $24.92 $23.91 $19.07 $16.79 $13.76
====== ====== ====== ====== ======
Total return* 4.70% 25.70% 13.58% 22.02% 30.55%***
Ratio of net expenses to average net assets+ 2.01%** 1.95% 1.89% 1.93% 2.23%**
Ratio of net investment income (loss) to average net assets+ (1.29)%** 0.18% 0.40% 0.17% 3.87%**
Portfolio turnover rate 82%** 98% 111% 122% 101%
Net assets, end of period (in thousands) $ - $ 553 $ 299 $ 223 $ 116
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.70%** 2.83% 2.67% 1.93% 2.23%**
Net investment income (loss) (1.98)%** (0.71)% (0.38)% 0.17% 3.87%**
Ratios with reduction for fees paid indirectly:
Net expenses 1.98%** 1.95% 1.89% 1.93% 2.23%**
Net investment income (loss) (1.28)%** 0.18% 0.40% 0.17% 3.87%**
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
*** Not Annualized.
+ Ratios with no reduction for fees paid indirectly.
(a) Class R shares were first publicly offered on April 1, 2003.
(b) Amount rounds to less than one cent per share.
(c) Class R shares ceased operations on February 1, 2007.
32 The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer International Value Fund (the Fund) is a Massachusetts business trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is
long-term growth of capital.
The Fund offers three classes of shares - Class A, Class B, and Class C shares.
Class R shares were first publicly offered on April 1, 2003 and ceased
operations on February 1, 2007. Each class of shares represents an interest in
the same portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees, and has exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B, and Class C shareowners, respectively.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting year. Actual results could differ from those estimates.
Information regarding the Fund's principal investment risks is contained in the
Fund's prospectus. Please refer to those documents when considering the Fund's
risks. Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates, economic, and political
conditions. The portfolio may invest a substantial amount of its assets in
issuers located in a limited number of countries and therefore is susceptible
to adverse economic, political or regulatory developments affecting those
countries. At times, the Fund's investments may represent industries or
industry sectors that are interrelated or have common risks, making it more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
33
Pioneer International Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
of the Fund is computed once daily, on each day the New York Stock
Exchange (NYSE) is open, as of the close of regular trading on the NYSE.
In computing the net asset value, securities are valued using 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 using 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. The Fund invests primarily
in securities of non-U.S. issuers. The principal exchanges and markets for
such securities have closing times prior to the close of the NYSE.
However, the value of these securities may be influenced by changes in
global markets occurring after the closing times of the local exchanges
and markets up to the time the Fund determines its net asset value.
Consequently, the Board of Trustees of the Fund has determined that the
use of daily fair valuations as provided by a pricing service is
appropriate for the Fund. The Fund may also take into consideration other
significant events in determining the fair value of these securities.
Thus, the Fund's securities valuations may differ from prices reported by
the various local exchanges and markets. Temporary cash investments are
valued at cost which approximates market value.
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, including interest on income bearing cash accounts, is recorded on
the accrual basis, net of unrecoverable foreign taxes withheld at the
applicable country rates.
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.
34
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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.
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. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the source of the Fund's
35
Pioneer International Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
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, 2006, the Fund had a net capital loss carry forward of
$42,042,391 of which the following amounts will expire between 2009 and
2011 if not utilized: $7,295,608 in 2009, $21,765,862 in 2010 and
$12,980,921 in 2011.
The tax character of current year distributions will be determined at the
end of the current fiscal year. The tax character of distributions paid
during the year ended November 30, 2006 was as follows:
- --------------------------------------------------------------------------------
2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $422,971
Long-term capital gain -
--------
Total $422,971
========
- --------------------------------------------------------------------------------
The following shows the components of accumulated losses on a
federal income tax basis at November 30, 2006.
- --------------------------------------------------------------------------------
2006
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 541,073
Capital loss carry forward (42,042,391)
Unrealized appreciation 31,633,319
-----------
Total $(9,867,999)
===========
- --------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
E. 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 $9,687 in underwriting
36
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
commissions on the sale of Class A shares during the six months ended May
31, 2007.
F. Class Allocations
Distribution fees are calculated based on the average daily net assets
attributable to Class A, Class B and Class C shares of the Fund,
respectively (see Note 4). Shareowners of each class share all expenses
and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services, which are allocated
based on the number of accounts in each class and the ratable allocation
of related out-of-pocket expenses (see Note 3). Income, common expenses
and realized and unrealized gains and losses are calculated at the Fund
level and allocated daily to each class of shares based on the respective
percentage of adjusted net assets at the beginning of the day.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different
transfer agent and distribution fees.
G. Security Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of 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 fair value of 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 agreement to recover the securities
on loan from the borrower on demand. The Fund invests cash collateral in
Time Deposits, which is sponsored by Brown Brothers Harriman & Co., the
Fund's custodian.
37
Pioneer International Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
H. 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.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. Management fees are calculated daily at the annual rate of
0.85% of the Fund's average net assets up to $500 million and 0.75% of the
excess over $500 million. For the six months ended May 31, 2007, the management
fee was equivalent to a rate of 0.85% of average daily net assets.
Prior to January 1, 2006, the Fund's management fee was 0.95% of the Fund's
average daily net assets up to $300 million; 0.85% of the next $200 million;
and 0.75% of excess over $500 million. Prior to January 1, 2005, the Fund's
management fee was 1.00% of the Fund's average daily net assets up to $300
million, 0.85% of the next $200 million and 0.75% of excess over $500 million.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit
the Fund's expenses to 1.70%, 2.60% and 2.60%, of the average daily net assets
attributable to Class A, Class B and Class C shares, respectively. These
expense limitations are in effect through April 1, 2009 for Class A and through
April 1, 2008 for Class B and Class C shares.
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 May 31, 2007, $14,919 was payable to PIM
related to management fees, administrative fees and certain other expenses, and
is included in due to affiliates.
38
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 $140,603 in transfer agent
fees payable to PIMSS at May 31, 2007.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan and Class C Plan) in accordance with Rule 12b-1 under 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 the sale of Class A shares.
Pursuant to the Class B Plan and Class C Plan, the Fund pays PFD 1.00% of the
average daily net assets attributable to Class B and Class C 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. Included in
due to affiliates is $1,677 in distribution fees payable to PFD at May 31,
2007.
In addition, redemptions of each class of 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 18 months of
purchase. Class B shares redeemed within five years of purchase are subject to
a CDSC at declining rates beginning at 4.00%, based on the lower of cost or
market value of shares being redeemed. Shares purchased as part of an exchange
or acquired as a result of a reorganization of another fund into the Fund
remain subject to any contingent deferred sales charge that applied to the
shares you originally purchased. Redemptions of Class C shares within one year
of purchase are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to
PFD. For the six months ended May 31, 2007, CDSCs in the amount of $12,782 were
paid to PFD.
Prior to September 1, 2006, the Fund charged a 2.0% redemption fee on each
class of shares sold within 30 days of purchase. Effective August 31, 2006,
this redemption fee is no longer charged.
39
Pioneer International Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/07 (unaudited) (continued)
- --------------------------------------------------------------------------------
5. Expense Offset Arrangements
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 six months ended May 31, 2007, the Fund's
expenses were reduced by $15,227, under such arrangements.
6. Forward Foreign Currency Contracts
At May 31, 2007, 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. At May 31, 2007, the
Fund had no outstanding portfolio hedges. The Fund's gross forward currency
settlement contracts receivable and payable were $753,345 and $756,140,
respectively, resulting in a net payable of $2,795.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participates in a $200 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 $200 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
is payable at the Federal Funds Rate plus 1/2% on an annualized basis. The
Funds pay an annual commitment fee for this facility. The commitment fee is
allocated among such Funds based on their respective borrowing limits. For the
six months ended, May 31, 2007, the Fund had no borrowings under this
agreement.
8. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the
40
Pioneer International Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
applicable tax authority. Tax positions deemed to not meet the
more-likely-than-not threshold would be recorded as a tax benefit or expense in
the reporting period in which they are realized. Adoption of FIN 48 is required
for fiscal years beginning after December 15, 2006 and is to be applied to all
open tax years as of no later than November 30, 2007. At this time, management
is evaluating the implications of FIN 48 and any impact in the financial
statements has not yet been determined.
In addition, in September 2006, Statement of Financial Accounting Standards No.
157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal
years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
41
Pioneer International Value Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Daniel K. Kingsbury Dorothy E. Bourassa, Secretary
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at http://www.sec.gov.
42
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This page for your notes.
43
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This page for your notes.
44
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices, account information and
transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
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.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal 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.
N/A
(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.
N/A
(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.
N/A
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive 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 principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of 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 control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
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.
(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 International Value Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 31, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date July 31, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date July 31, 2007
* Print the name and title of each signing officer under his or her signature.