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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08448
Pioneer Emerging Markets Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2006 through November 30, 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
-------
EMERGING
MARKETS
FUND
PEMFX
Ticker Symbol
Annual
Report
11/30/07
[LOGO]PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 27
Notes to Financial Statements 36
Report of Independent Registered Public Accounting Firm 46
Approval of Investment Advisory Agreement 47
Trustees, Officers and Service Providers 51
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. They
were particularly useful guides in recent months, when an otherwise healthy
long-term bull market was buffeted by problems in the mortgage and banking
industries.
Since mid-year 2007, issues tied to poor underwriting practices in the subprime
sector of the mortgage industry and to problems with risk management by banks
and hedge funds have resulted in increased market volatility and rising concern
about risks to U.S. economic growth.
U.S. economic growth had slowed over the past two years, but this has been due
as much to the natural maturation of the cyclical expansion, as U.S. factories
approached full utilization and the labor market approached full employment, as
to rising commodity prices or short-term interest rates. This slowdown was,
therefore, not entirely unwelcome, as it reduced the threat of higher inflation.
More recently, however, there has been increasing concern that falling home
prices, and/or disruptions in financial markets pose a larger threat to
continuing economic growth, and we have seen two cuts in short-term interest
rates from the Federal Reserve despite strong economic growth in the second and
third quarters of 2007. A weaker U.S. dollar has put upward pressure on some
prices, but it has also significantly benefited exporters and companies
competing in the global marketplace, stimulating U.S. economic growth.
Economic growth in the rest of the world remains relatively positive. In Europe,
solid GDP growth has driven unemployment lower and supported growing
consumption, although concerns about the impact of the strong Euro are a
persistent source of worry. Japanese economic growth continues, albeit at a
muted rate, and the country's deflationary problems are gradually receding.
Economic growth in emerging market countries remains faster than in the
developed world, led by China, which continues its rise as a world economic
power.
Looking forward, we believe the economic outlook remains generally positive,
although real estate prices, subprime mortgage defaults, and the possibility of
a liquidity/credit crunch represent growing sources of risk. Central banks have
responded to the stresses in the inter-bank and commercial paper markets by
acting as "lenders of last resort" and, in the case of the Federal Reserve, by
cutting rates.
The U.S. Federal Reserve and the world's other central banks are still pursuing
policies aimed at producing low and stable inflation, believed to be the best
backdrop for steady economic growth and low average unemployment over the long
term. Keeping inflation low is also an important support for stock and bond
valuations, and so central bank policies have also been
2
Letter
"investor friendly." We view the Fed's recent rate cuts as temporarily "buying
insurance" against a credit crunch, which would threaten economic growth, rather
than as an abandonment of its commitment to keeping inflation low.
Even against this wall-of-worry backdrop, and factoring in recent market
weakness, the long-term performance of major asset classes has remained
positive. Equity investors were generally rewarded as, despite several interim
corrections and poor performance in November 2007, the Standard & Poor's 500
Index returned 8%, the Dow Jones Industrial Average returned 12%, and the NASDAQ
Composite Index returned 9% in the 12 months ending November 30, 2007.
International developed and emerging markets equities performed even better,
reflecting both a weakening dollar (which boosts returns for U.S. dollar-based
investors) and strong local currency returns, with the MSCI EAFE Developed
Market Index returning 18% and the MSCI Emerging Markets Index returning 46%
over the same period. The U.S. bond market, as measured by the Lehman Aggregate
Bond Index, returned 6% during the period. The U.S. high-yield bond market, as
measured by the Merrill Lynch High Yield Bond Master II Index, returned -3% for
the same period, however, as higher-coupon yields could not compensate for
falling bond prices as credit spreads (differences between yields of higher- and
lower-quality bonds) widened.
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 you to
work closely with your financial advisor to find the mix of stocks, bonds and
money market assets that is best aligned to your 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 Emerging Markets Fund
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PORTFOLIO MANAGEMENT DISCUSSION 11/30/07
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The Fund outperformed both its benchmark and its peer group during the 12-month
period ended November 30, 2007. The Class A shares of the Fund produced a total
return of 47.37% (at net asset value) for the 12 months ended November 30, 2007,
outpacing the 45.56% return of the MSCI Emerging Markets Index. The Fund's Class
A shares also outperformed the 41.98% average return of the 257 funds in their
Lipper peer group, Emerging Markets Funds.
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.
In the following interview, Christopher Smart, Pioneer Emerging Markets Fund's
portfolio manager, discusses the factors that influenced performance during the
12 months ended November 30, 2007.
Q: How did emerging markets equities perform during the 12 months ended
November 30, 2007, and how did the Fund compare to the asset class as a
whole?
A: Despite two notable downturns in the latter half of the period, the
emerging markets equities produced a stellar performance during the past
year. At a time when concerns about economic growth have weighed on stock
prices here in the United States, the story has been quite different in the
world's developing countries. A combination of booming growth in China and
India, high commodity prices, and sharply rising revenues for oil-producing
nations have fueled a period of unprecedented economic health for emerging
markets. That, in turn, has led to rising investment by both governments
and corporations, as well as increased spending by consumers. At a time of
generally low risk aversion among global investors, emerging markets
equities have proven to be an attractive destination for investment
capital.
Despite the positive trends, the asset class experienced two sharp
declines: the first in mid-summer, the second in the first half of November
2007. In both cases, the subprime mortgage crisis in the United States led
to more restrictive credit conditions and concerns about the rising
potential for a global recession. Despite
4
Pioneer Emerging Markets Fund
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the two corrections, emerging markets equities outpaced their developed
market peers by a wide margin during the year and have outperformed
substantially over the longer-term time frames as well:
1-year 3-year 5-year 10-year
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MSCI Emerging Markets Index 45.56% 37.58% 36.44% 14.76%
MSCI World Index 13.25% 15.22% 16.66% 7.72%
Past performance is no guarantee of future results.
With that as a backdrop, the Fund outperformed both its benchmark and its
Lipper peer group during the year. As we have said in the past, we believe
the Fund's strong track record is a result of our disciplined investment
process. To review, we combine top-down country analysis - which is
designed to identify the most attractive markets within the asset class -
with bottom-up, fundamental research that seeks to identify companies that
are undervalued relative to their growth prospects. We believe our
multifaceted approach is well-suited to helping the Fund navigate both up
and down markets.
Q: What factors contributed to the Fund's outperformance during the 12 months
ended November 30, 2007?
A: The leading contribution to the Fund's positive relative performance came
from its positions in Korean shipbuilders, which we have discussed in each
of our past four reports to shareholders. China's explosive economic growth
has boosted demand for raw materials such as iron ore and coal, and that in
turn has increased the need for bulk carriers that can bring the products
to China. At the same time, the country's role as the production center for
the world has fueled demand for container ships that can move China's
exports overseas. Finally, rising energy prices have increased the need for
the expensive, high-margin ships that carry liquid natural gas. The result
has been rising prices for new ships and growing order backlogs for
shipbuilding companies, and that has boosted the share prices of the
shipbuilding stocks we hold in the Fund: Hyundai Heavy Industries (which
rose 258% during the past year), Samsung Heavy Industries, and Daewoo
Shipbuilding.
5
Pioneer Emerging Markets Fund
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PORTFOLIO MANAGEMENT DISCUSSION 11/30/07 (continued)
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Also among the Fund's leading contributors was another stock related to the
shipping theme: China Communications Construction. As a major builder and
operator of ports, the company has been well positioned to profit from the
infrastructure boom taking place in China. Its stock rose 255% during the
period under review.
The infrastructure build-out in the emerging markets has not been limited
to China: South Africa has not only been upgrading its roads, bridges, and
power facilities, but it also has been building soccer stadiums to
accommodate the 2010 World Cup. The result has been strong performance for
the Fund's position in Murray & Roberts Holdings, South Africa's leading
construction and engineering company.
Brazil's stock market performed very well during the past year, as falling
inflation prompted its central bank to cut interest rates. The result has
been rapid growth in the availability of credit, a trend that has greatly
benefited the nation's banks. Among the winners has been Banco do Brasil, a
Fund holding that gained 104% over the past 12 months. With the nation's
largest retail banking network, the company has been well positioned to
benefit from the rising demand for credit cards and other consumer credit
products.
Russia also was home to one of the Fund's top performers: the dairy
products company Wimm Bill Dann. The company has been expanding its
operations by buying up and restoring Russia's old collective dairy farms,
and it has grown to be a legitimate Russian brand that has distinguished
itself from foreign importers. Oriflame Cosmetics, the door-to-door
cosmetics retailer that we have discussed in past reports, is another
Russia-based holding that performed well for the Fund.
Finally, we added value through a significant underweight in the
information technology sector - an area of the market that underperformed
during the past year. Most notably, we held no position in Samsung
Electronics. One of the largest components in the benchmark, Samsung lost
11% during the year due to falling semiconductor prices and concerns about
an economic slowdown in the United States and Europe.
6
Pioneer Emerging Markets Fund
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Q: What were some elements of your positioning that detracted from
performance?
A: In a period of outperformance for the Fund, its detractors were primarily
stocks that performed well, but did not perform as well as the index. For
example, our holdings in Turkey gained approximately 45%, but nonetheless
fell far short of the 80% return of the broader Turkish market. A major
reason for this underperformance was the Fund's lack of exposure to
Turkey's leading telecom and bank stocks.
Another notable detractor was an underweight position in India, where we
felt the majority of stocks were overvalued. The Fund's holdings
outperformed those in the index - returning about 75% versus 65% for the
India-based benchmark components - but this was not enough to outweigh the
impact of an underweight in one of the top-performing markets in the asset
class.
Q: What is your broad view regarding the emerging markets?
A: As we saw during the periods of market volatility that have characterized
the past half-year, the emerging markets are by no means immune to
downturns in investor sentiment. Still, the markets are on a much stronger
footing than they have ever been, with both governments and corporations in
robust fiscal health. We therefore welcome volatility as an opportunity to
add to our highest-conviction holdings in an asset class where the vast
majority of the companies have no connection with the U.S. subprime crisis.
We continue to look for the most attractive investments in
infrastructure/construction companies, as well as in those most sensitive
to growing personal wealth: consumer companies, which benefit from rising
spending, and financials, which benefit from increased savings. We believe
such companies have the highest sensitivity to the positive trends taking
place in the emerging markets, such as falling interest rates, rising
expenditures by governments flush with cash, and the growth of the middle
class. At the same time, we believe those stocks should be less affected if
the U.S. or European economies fall into a recession. We believe our
approach provides the Fund with greater exposure to the rapid growth of the
emerging markets, rather than the more muted growth of the broader world
economy.
7
Pioneer Emerging Markets Fund
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PORTFOLIO MANAGEMENT DISCUSSION 11/30/07 (continued)
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Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
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.
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 the 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.
8
Pioneer Emerging Markets Fund
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PORTFOLIO SUMMARY 11/30/07
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Sector Distribution
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(As a percentage of equity holdings)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 20.2%
Industrials 18.6%
Materials 15.0%
Energy 14.3%
Consumer Discretionary 12.7%
Telecommunication Services 10.8%
Consumer Staples 5.1%
Information Technology 2.6%
Utilities 0.7%
Geographical Distribution
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(As a percentage of equity holdings)
China 15.7% Singapore 1.7%
Brazil 15.1% Turkey 1.6%
South Korea 13.6% Hong Kong 1.4%
South Africa 10.6% Peru 1.2%
Russia 10.6% Israel 1.1%
India 5.3% Sweden 1.1%
Taiwan 5.0% Canada 1.1%
Indonesia 4.5% Egypt 1.0%
Mexico 3.4% Malaysia 1.0%
Philippines 2.1% Other (Individually less than 1%)
United States 2.0% 0.9%
10 Largest Holdings
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(As a percentage of equity holdings)*
1. Companhia Vale do Rio Doce (A.D.R.) 3.00%
2. Petrobras Brasileiro (A.D.R.) 2.90
3. America Movil (A.D.R.) 2.48
4. China Mobile, Ltd. (A.D.R.) 2.11
5. Bumi Resources Tbk Pt 1.82
6. Hyundai Heavy Industries 1.61
7. Yanzhou Coal Mining 1.56
8. Lukoil Holding (A.D.R.) 1.52
9. Lojas Renner SA 1.52
10. China Communications Construction Co., Ltd. 1.51
* 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.
9
Pioneer Emerging Markets Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 11/30/07 11/30/06
- ----- -------- --------
A $38.29 $29.06
B $33.84 $26.19
C $33.78 $26.12
R $37.32 $28.52
Y $41.10 $30.95
Distributions Per Share
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12/1/06 - 11/30/07
------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ----- ---------- ------------- -------------
A $0.0703 $0.1360 $4.0140
B $ - $0.1360 $4.0140
C $ - $0.1360 $4.0140
R $0.1368 $0.1360 $4.0140
Y $0.2054 $0.1360 $4.0140
10
Pioneer Emerging Markets Fund
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PERFORMANCE UPDATE 11/30/07 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 Emerging Markets Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Emerging
Markets Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of Pioneer Emerging MCSI Emerging
$10,000 Investment Markets Fund Markets Index
11/97 9,425 10,000
6,391 7,758
11/99 10,033 11,288
7,866 8,621
11/01 7,205 7,986
7,350 8,381
11/03 10,520 11,806
13,030 15,215
11/05 17,698 20,256
24,218 27,220
11/07 35,690 39,624
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Average Annual Total Returns
(As of November 30, 2007)
Net Public
Asset Offering
Period Value (NAV) Price (POP)
10 Years 14.24% 13.57%
5 Years 37.17 35.54
1 Year 47.03 38.91
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Expense Ratio
(Per prospectus dated April 1, 2007)
Gross Net
1.90% 1.90%
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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 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 limitation currently in
effect through 4/1/10 for Class A Shares. There can be no assurance that Pioneer
will extend the expense limitation beyond such time. Please see the prospectus
and financial statements for more information.
The MSCI Emerging Markets Index measures the performance of emerging market
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in an Index.
11
Pioneer Emerging Markets Fund
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PERFORMANCE UPDATE 11/30/07 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 Emerging Markets Fund, compared to that of the Morgan
Stanley Capital International (MSCI) Emerging Markets Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of Pioneer Emerging MCSI Emerging
$10,000 Investment Markets Fund Markets Index
11/97 10,000 10,000
6,721 7,758
11/99 10,473 11,288
8,138 8,621
11/01 7,394 7,986
7,497 8,381
11/03 10,655 11,806
13,078 15,215
11/05 17,626 20,256
23,921 27,220
11/07 34,873 39,624
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Average Annual Total Returns
(As of November 30, 2007)
If If
Period Held Redeemed
10 Years 13.30% 13.30%
5 Years 36.00 36.00
1 Year 45.78 41.78
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Expense Ratio
(Per prospectus dated April 1, 2007)
Gross Net
2.74% 2.74%
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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.
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 limitation currently in
effect through 4/1/08 for Class B Shares. There can be no assurance that Pioneer
will extend the expense limitation beyond such time. Please see the prospectus
and financial statements for more information.
The MSCI Emerging Markets Index measures the performance of emerging market
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in an Index.
12
Pioneer Emerging Markets Fund
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PERFORMANCE UPDATE 11/30/07 CLASS C 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 Emerging Markets Fund, compared to that of the Morgan
Stanley Capital International (MSCI) Emerging Markets Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of Pioneer Emerging MCSI Emerging
$10,000 Investment Markets Fund Markets Index
11/97 10,000 10,000
6,705 7,758
11/99 10,386 11,288
8,098 8,621
11/01 7,354 7,986
7,457 8,381
11/03 10,600 11,806
13,038 15,215
11/05 17,595 20,256
23,885 27,220
11/07 34,857 39,624
- ------------------------------------
Average Annual Total Returns
(As of November 30, 2007)
If If
Period Held Redeemed
10 Years 13.30% 13.30%
5 Years 36.13 36.13
1 Year 45.94 45.94
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Expense Ratio
(Per prospectus dated April 1, 2007)
Gross Net
2.65% 2.65%
- ------------------------------------
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 Emerging Markets Index measures the performance of emerging market
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in an Index.
13
Pioneer Emerging Markets Fund
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PERFORMANCE UPDATE 11/30/07 CLASS R SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the Morgan
Stanley Capital International (MSCI) Emerging Markets Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of Pioneer Emerging MCSI Emerging
$10,000 Investment Markets Fund Markets Index
11/97 10,000 10,000
6,746 7,758
11/99 10,539 11,288
8,221 8,621
11/01 7,492 7,986
7,605 8,381
11/03 10,905 11,806
13,451 15,215
11/05 18,230 20,256
24,847 27,220
11/07 36,629 39,624
- -------------------------------------
Average Annual Total Returns
(As of November 30, 2007)
If If
Period Held Redeemed
10 Years 13.86% 13.86%
5 Years 36.95 36.95
1 Year 46.75 47.42
- -------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2007)
Gross Net
2.52% 2.20%
- -------------------------------------
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 performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of the
Fund's Class A shares, reduced to reflect the higher distribution and service
fees of Class R shares. For the period after April 1, 2003, the actual
performance of Class R shares is reflected. The performance of Class R shares
does not reflect the 1% CDSC that was in effect prior to July 1, 2004. Class R
shares are not subject to sales charges and are available for limited groups of
eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The net expense ratio reflects contractual expense limitations currently in
effect through 4/1/08 for Class R 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 Emerging Markets Index measures the performance of emerging market
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in an Index.
14
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 11/30/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the Morgan
Stanley Capital International (MSCI) Emerging Markets Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of Pioneer Emerging MCSI Emerging
$10,000 Investment Markets Fund Markets Index
11/97 10,000 10,000
6,827 7,758
11/99 10,791 11,288
8,508 8,621
11/01 7,868 7,986
8,107 8,381
11/03 11,725 11,806
14,640 15,215
11/05 20,023 20,256
27,552 27,220
11/07 40,965 39,624
- -------------------------------------
Average Annual Total Returns
(As of November 30, 2007)
If If
Period Held Redeemed
10 Years 15.14% 15.14%
5 Years 38.26 38.26
1 Year 47.75 48.68
- -------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2007)
Gross Net
1.33% 1.33%
- -------------------------------------
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.
Performance for periods prior to the inception of Class Y shares reflects the
NAV performance of the Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class Y
shares, the performance shown for Class Y shares prior to their inception on
April 9, 1998 would have been higher. Class Y shares are not subject to sales
charges and are available for limited groups of eligible investors, including
institutional investors. All results are historical and assume the reinvestment
of dividends, and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI Emerging Markets Index measures the performance of emerging market
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any sales charges, fees or expenses.
You cannot invest directly in an Index.
15
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Emerging Markets Fund
Based on actual returns from June 1, 2007 through November 30, 2007.
Share Class A B C R Y
- -----------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 6/1/07
Ending Account Value $1,199.76 $1,197.57 $1,198.00 $1,195.52 $1,197.81
On 11/30/07
Expenses Paid $ 9.82 $ 14.49 $ 14.11 $ 11.34 $ 7.27
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.78%, 2.63%,
2.56%, 2.06%, and 1.32% for Class A, Class B, Class C, Class R and Class Y
shares, respectively, multiplied by the average account value over the
period, multiplied by 183/365 (to reflect the one-half year period).
16
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Emerging Markets Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from June 1, 2007 through November 30, 2007.
Share Class A B C R Y
- -----------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 6/1/07
Ending Account Value $1,016.14 $1,011.88 $1,012.23 $1,014.74 $1,018.45
On 11/30/07
Expenses Paid $ 9.00 $ 13.26 $ 12.91 $ 10.40 $ 6.68
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.78%, 2.63%,
2.56%, 2.06%, and 1.32% for Class A, Class B, Class C, Class R and Class Y
shares, respectively, multiplied by the average account value over the
period, multiplied by 183/365 (to reflect the one-half year period).
17
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/07
- --------------------------------------------------------------------------------
Shares Value
PREFERRED STOCKS - 2.4%
Media - 1.4%
Broadcasting & Cable Tv - 1.4%
705,926 Net Servicos de Comunicacao SA* $ 10,449,433
------------
Total Media $ 10,449,433
------------
Banks - 1.0%
Diversified Banks - 1.0%
286,760 Banco Itau Holding Financeira $ 7,899,065
------------
Total Banks $ 7,899,065
------------
TOTAL PREFERRED STOCKS
(Cost $9,470,667) $ 18,348,498
------------
COMMON STOCKS - 95.5%
Energy - 14.0%
Coal & Consumable Fuels - 3.3%
22,294,000 Bumi Resources Tbk Pt $ 13,526,300
5,592,000 Yanzhou Coal Mining 11,568,386
------------
$ 25,094,686
------------
Integrated Oil & Gas - 6.5%
5,413,500 China Petroleum & Chemical $ 8,234,474
132,100 Lukoil Holding (A.D.R.) (c) 11,307,760
265,100 Petrobras Brasileiro (A.D.R.) 21,518,167
161,900 Sasol, Ltd. (A.D.R.) 8,182,426
------------
$ 49,242,827
------------
Oil & Gas Equipment & Services - 1.9%
145,700 TelecomAsia Corp. Public Co., Ltd. (c) $ 6,874,126
178,700 TMK (G.D.R.) (144A) 7,744,568
------------
$ 14,618,694
------------
Oil & Gas Exploration & Production - 1.0%
4,244,000 CNOOC, Ltd. $ 7,825,265
------------
Oil & Gas Refining & Marketing - 1.3%
64,600 Reliance Industries, Ltd. (G.D.R.) (144A) $ 9,447,750
------------
Total Energy $106,229,222
------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
Shares Value
Materials - 14.7%
Construction Materials - 2.9%
273,600 Associated Cement Companies, Ltd. $ 7,540,227
1,109,544 Pretoria Portland Cement Co.* 7,380,849
8,585,600 PT Indocement Tunggal Prakarsa Tbk 7,075,306
------------
$ 21,996,382
------------
Diversified Metals & Mining - 4.8%
771,292 Companhia Vale do Rio Doce (A.D.R.) $ 22,313,478
68,800 Freeport-McMoRan Copper & Gold, Inc. (Class B) 6,806,384
26,000 Norilsk Nickel*(c) 7,566,000
------------
$ 36,685,862
------------
Fertilizers & Agricultural Chemicals - 1.0%
1,538,200 Uralkali* $ 7,600,005
------------
Gold - 3.5%
567,900 Gold Fields, Ltd. (A.D.R.) $ 9,341,955
907,200 IAMGOLD Corp. 7,774,704
6,475,375 Zijin Mining Group Co., Ltd.* 9,433,263
------------
$ 26,549,922
------------
Precious Metals & Minerals - 2.5%
71,600 Anglo American Platinum Corp., Ltd. $ 10,203,752
153,500 Compania de Minas Buenaventura SAA* 8,569,905
------------
$ 18,773,657
------------
Total Materials $111,605,828
------------
Capital Goods - 15.8%
Aerospace & Defense - 1.1%
143,400 Elbit Systems, Ltd. $ 8,133,300
------------
Construction & Engineering - 7.6%
848,900 Aveng, Ltd. $ 7,193,072
3,832,900 China Communications Construction Co., Ltd.* 11,188,524
7,515,678 Continental Engineering Corp. 4,186,392
1,157,384 Empressa ICA Sociedad Controladora SA de CV* 6,787,181
37,400 GS Engineering & Construction Corp.* 6,615,296
155,000 Kyeryong Construction Industrial Co., Ltd.* 6,854,690
70,700 Larsen & Toubro, Ltd.* 7,382,503
The accompanying notes are an integral part of these financial statements. 19
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Construction & Engineering - (continued)
82,900 Orascom Construction $ 7,558,690
------------
$ 57,766,348
------------
Construction, Farm Machinery & Heavy Trucks - 5.2%
184,100 Daewoo Heavy Industries & Machinery, Ltd. $ 9,122,020
23,270 Hyundai Heavy Industries* 11,960,713
211,600 Samsung Heavy Industries Co., Ltd.* 9,780,633
6,324,000 Yangzijiang Shipbuilding* 8,720,092
------------
$ 39,583,458
------------
Industrial Conglomerates - 1.9%
802,400 Keppel Corp. $ 7,468,709
502,100 Murray & Roberts Holdings 7,103,501
------------
$ 14,572,210
------------
Total Capital Goods $120,055,316
------------
Transportation - 2.4%
Marine - 1.4%
3,765,100 China Shipping Development Co., Ltd. $ 10,306,681
------------
Railroads - 1.0%
588,100 All America Latina Logistica $ 7,677,699
------------
Total Transportation $ 17,984,380
------------
Consumer Durables & Apparel - 3.3%
Apparel, Accessories & Luxury Goods - 1.0%
6,790,000 Anta Sports Products, Ltd.* $ 7,584,407
------------
Footwear - 0.4%
1,436,900 Stella International $ 3,086,583
------------
Homebuilding - 1.0%
474,960 Cyrela Brazil Realty SA* $ 7,326,595
------------
Housewares & Specialties - 0.9%
212,290 Woongjin Coway Co., Ltd.* $ 7,065,640
------------
Total Consumer Durables & Apparel $ 25,063,225
------------
Consumer Services - 1.0%
Hotels, Resorts & Cruise Lines - 1.0%
2,207,000 Indian Hotels Co., Ltd. $ 7,512,476
------------
Total Consumer Services $ 7,512,476
------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Media - 2.1%
Advertising - 1.0%
141,500 Focus Media Holding, Ltd.* $ 7,986,260
------------
Movies & Entertainment - 1.1%
332,000 CTC Media, Inc.* $ 7,987,920
------------
Total Media $ 15,974,180
------------
Retailing - 4.7%
Apparel Retail - 0.9%
1,508,200 Truworths International, Ltd. $ 6,351,363
------------
Department Stores - 3.8%
59,900 Hyundai Department Store Co., Ltd.* $ 7,356,541
483,000 Lojas Renner SA 11,288,815
8,990,000 New World Department Store China* 10,299,011
------------
$ 28,944,367
------------
Total Retailing $ 35,295,730
------------
Food & Drug Retailing - 1.9%
Food Distributors - 0.9%
215,700 X-5 Retail Group NV (G.D.R.)* $ 6,767,426
------------
Hypermarkets & Supercenters - 1.0%
9,900 Shinsegae Co., Ltd.* $ 7,834,899
------------
Total Food & Drug Retailing $ 14,602,325
------------
Food, Beverage & Tobacco - 1.1%
Packaged Foods & Meats - 1.1%
69,400 Wimm-Bill-Dann* $ 7,951,158
------------
Total Food, Beverage & Tobacco $ 7,951,158
------------
Household & Personal Products - 2.1%
Household Products - 1.0%
36,400 LG Household & Health Care, Ltd.* $ 7,788,357
------------
Personal Products - 1.1%
128,400 Oriflame Cosmetics SA $ 7,808,679
------------
Total Household & Personal Products $ 15,597,036
------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Banks - 13.1%
Diversified Banks - 13.1%
228,608 Banco Bradesco SA (c) $ 7,349,747
460,700 Banco do Brasil SA 8,152,621
7,510,500 Bank Danamon PT* 6,678,604
2,233,200 Bumiputra-Commerce Holdings Berhad 7,128,331
8,128,100 China Construction Bank 7,862,449
9,460,000 Chinatrust Financial Holding Co., Ltd.* 6,878,299
145,467 Hana Financial Holdings* 6,873,000
9,230,000 Industrial & Commerical Bank of China 7,354,156
93,631 Kookmin Bank (A.D.R.)* 6,788,248
1,788,600 Sberbank RF* 7,544,746
120,200 Shinhan Financial Group Co., Ltd.* 6,581,013
426,786 Standard Bank Group, Ltd. 6,575,037
1,868,400 Turkiye Vakiflar Bankasi* 6,043,593
53,039 Uniao de Bancos Brasileiros SA (Unibanco)
(G.D.R.) 7,940,999
------------
$ 99,750,843
------------
Total Banks $ 99,750,843
------------
Diversified Financials - 1.0%
Diversified Financial Services - 1.0%
1,534,400 African Bank Investments, Ltd. $ 7,869,194
------------
Total Diversified Financials $ 7,869,194
------------
Insurance - 2.5%
Life & Health Insurance - 0.9%
291,856 Cathay Financial Holding Co., Ltd. (144A) (G.D.R.) $ 7,004,544
------------
Property & Casualty Insurance - 1.6%
901,550 Aksigorta AS $ 5,585,784
131,430 Dongbu Insurance Co., Ltd.* 6,697,098
------------
$ 12,282,882
------------
Total Insurance $ 19,287,426
------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Real Estate - 2.0%
Real Estate Management & Development - 2.0%
20,972,420 Ayala Land, Inc. $ 7,637,496
841,000 Sistema Hals (G.D.R.) (144A)* 7,484,900
------------
$ 15,122,396
------------
Total Real Estate $ 15,122,396
------------
Technology Hardware & Equipment - 1.2%
Electronic Manufacturing Services - 1.2%
1,426,389 Hon Hai Precision Industry $ 9,139,938
------------
Total Technology Hardware & Equipment $ 9,139,938
------------
Semiconductors - 1.3%
Semiconductors - 1.3%
1,282,755 Taiwan Semiconductor Manufacturing Co. $ 2,415,037
784,897 Taiwan Semiconductor Manufacturing Co. (A.D.R.) 7,786,178
------------
$ 10,201,215
------------
Total Semiconductors $ 10,201,215
------------
Telecommunication Services - 10.6%
Integrated Telecommunication Services - 0.9%
5,938,900 PT Telekomunikasi Indonesia $ 6,429,182
------------
Wireless Telecommunication Services - 9.7%
299,300 America Movil (A.D.R.) $ 18,454,839
170,800 China Mobile, Ltd. (A.D.R.)* 15,655,528
82,900 Mobile Telesystems (A.D.R.)* 7,519,030
435,800 MTN Group, Ltd. 8,711,377
113,000 Philippine Long Distance Telephone Co. 8,241,438
457,800 Reliance Communications, Ltd. 7,813,286
218,400 Vimpel-Communications (A.D.R.) 7,338,240
------------
$ 73,733,738
------------
Total Telecommunication Services $ 80,162,920
------------
Utilities - 0.7%
Water Utilities - 0.7%
3,629,700 Sino-Environment Technology Group* $ 5,391,251
------------
Total Utilities $ 5,391,251
------------
The accompanying notes are an integral part of these financial statements. 23
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
TOTAL COMMON STOCKS
(Cost $463,550,969) $724,796,059
------------
Principal
Amount
TEMPORARY CASH INVESTMENTS - 6.2%
Repurchase Agreement - 2.2%
$16,400,000 UBS Warburg, Inc., 3.10%, dated 11/30/07,
repurchase price of $16,400,000 plus
accrued interest on 12/3/07 collateralized by
$16,066,000 U.S. Treasury Bill, 4.5%, 11/30/11 $ 16,400,000
------------
Shares
Security Lending Collateral - 4.0%
30,346,525 Securities Lending Investment Fund, 4.94% $ 30,346,525
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $46,746,525) $ 46,746,525
------------
TOTAL INVESTMENT IN SECURITIES - 104.1%
(Cost $519,768,161)(a)(b) $789,891,082
------------
OTHER ASSETS AND LIABILITIES - (4.1) $(31,169,349)
------------
TOTAL NET ASSETS - 100.0% $758,721,733
============
24 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
* Non-income producing security.
(A.D.R.) American Depositary Receipt.
(G.D.R.) Global Depositary Receipt.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
November 30, 2007, the value of these securities amounted to
$39,622,761 or 5.2% of total net assets.
(a) Distributions of investment by country of issue, as a percentage of
total investment in securities (excluding temporary cash investments),
is as follows:
People's Republic of China 15.7%
Brazil 15.1
South Korea 13.6
South Africa 10.6
Russia 10.6
India 5.3
Taiwan 5.0
Indonesia 4.5
Mexico 3.4
Philippines 2.1
United States 2.0
Singapore 1.7
Turkey 1.6
Hong Kong 1.4
Peru 1.2
Israel 1.1
Sweden 1.1
Canada 1.1
Egypt 1.0
Malaysia 1.0
Other (Individually less than 1%) 0.9
-----
100.0%
-----
(b) At November 30, 2007, the net unrealized gain on investments based on
cost for federal income tax purposes of $520,065,380 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $274,281,192
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (4,455,490)
------------
Net unrealized gain $269,825,702
============
The accompanying notes are an integral part of these financial statements. 25
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/07 (continued)
- --------------------------------------------------------------------------------
(c) At November 30, 2007, the following securities were out on loan:
Shares Description Value
226,322 Banco Bradesco SA $ 7,276,252
16,500 Norilsk Nickel* 4,801,500
130,779 Lukoil Holding (A.D.R.) 11,194,682
144,243 TelecomAsia Corp. Public Co., Ltd. 6,805,385
-----------
Total $30,077,819
===========
Purchases and sales of securities (excluding temporary cash investments) for the
year ended November 30, 2007 aggregated $388,915,821 and $237,851,226,
respectively.
26 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 11/30/07
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (including securities loaned of
$30,077,819) (cost $519,768,161) $789,891,082
Foreign currencies, at value (cost $524,167) 518,134
Receivables -
Investment securities sold 6,889,316
Fund shares sold 4,563,387
Dividends and interest 402,860
Other 65,392
------------
Total assets $802,330,171
------------
LIABILITIES:
Payables -
Investment securities purchased $ 10,825,631
Fund shares repurchased 912,805
Upon return of securities loaned 30,346,525
Forward foreign currency settlement contracts, net 2,153
Due to bank 760,974
Due to affiliates 147,942
Accrued expenses 201,882
Reserve for repatriation taxes 410,526
------------
Total liabilities $ 43,608,438
------------
NET ASSETS:
Paid-in capital $482,254,502
Distributions in excess of net investment income (13,267)
Accumulated net realized gain on investments and foreign cur-
rency transactions 6,759,684
Net unrealized gain on investments 269,712,395
Net unrealized gain on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 8,419
------------
Total net assets $758,721,733
============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $497,007,929/12,979,670 shares) $ 38.29
============
Class B (based on $64,561,717/1,907,689 shares) $ 33.84
============
Class C (based on $99,965,736/2,959,131 shares) $ 33.78
============
Class R (based on $26,315,901/705,171 shares) $ 37.32
============
Class Y (based on $70,870,450/1,724,505 shares) $ 41.10
============
MAXIMUM OFFERING PRICE:
Class A ($38.29 [divided by] 94.25%) $ 40.63
============
The accompanying notes are an integral part of these financial statements. 27
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 11/30/07
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $786,146) $ 9,731,525
Interest 920,143
Income from securities loaned, net 53,455
------------
Total investment income $ 10,705,123
------------
EXPENSES:
Management fees $ 6,266,940
Transfer agent fees and expenses
Class A 747,598
Class B 176,365
Class C 188,119
Class R 19,478
Class Y 1,462
Distribution fees
Class A 849,805
Class B 541,327
Class C 772,868
Class R 45,226
Administrative fees 122,614
Custodian fees 506,661
Registration fees 135,369
Professional fees 86,401
Printing expense 47,542
Fees and expenses of nonaffiliated trustees 9,319
Miscellaneous 34,180
------------
Total expenses $ 10,551,274
Less fees paid indirectly (45,533)
------------
Net expenses $ 10,505,741
------------
Net investment income $ 199,382
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments (net of foreign capital gains taxes of $24,213) $ 73,829,383
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (475,102) $ 73,354,281
------------ ------------
Change in net unrealized gain on:
Investments (net increase in reserve for capital gains
taxes of $156,141) $129,999,860
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (36,036) $129,963,824
------------ ------------
Net gain on investments and foreign currency transactions $203,318,105
------------
Net increase in net assets resulting from operations $203,517,487
============
28 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 11/30/07 and 11/30/06, respectively
Year Ended Year Ended
11/30/07 11/30/06
FROM OPERATIONS:
Net investment income $ 199,382 $ 1,050,472
Net realized gain on investments and foreign currency
transactions 73,354,281 42,143,035
Change in net unrealized gain on investments and
foreign currency transactions 129,963,824 56,850,888
-------------- --------------
Net increase in net assets resulting
from operations $ 203,517,487 $ 100,044,395
-------------- --------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.07 and $0.11 per share, respectively) $ (589,401) $ (732,632)
Class B ($0.00 and $0.00 per share, respectively) - (5,779)
Class C ($0.00 and $0.02 per share, respectively) - (45,100)
Class R ($0.14 and $0.14 per share, respectively) (6,686) (885)
Class Y ($0.21 and $0.28 per share, respectively) (326,752) (258,939)
Net realized gain:
Class A ($4.15 and $3.07 per share, respectively) (48,502,189) (22,991,864)
Class B ($4.15 and $3.07 per share, respectively) (7,062,359) (5,106,379)
Class C ($4.15 and $3.07 per share, respectively) (10,936,321) (6,353,700)
Class R ($4.15 and $3.07 per share, respectively) (2,595,328) (110,415)
Class Y ($4.15 and $3.07 per share, respectively) (6,489,003) (4,253,391)
-------------- --------------
Total distributions to shareowners $ (76,508,039) $ (39,859,084)
-------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 320,716,872 $ 167,728,900
Reinvestment of distributions 65,299,165 34,267,340
Cost of shares repurchased (151,467,361) (130,479,896)
Redemption fees - 59,359
-------------- --------------
Net increase in net assets resulting from
Fund share transactions $ 234,548,676 $ 71,575,703
-------------- --------------
Net increase in net assets $ 361,558,124 $ 131,761,014
NET ASSETS:
Beginning of year 397,163,609 265,402,595
-------------- --------------
End of year $ 758,721,733 $ 397,163,609
-------------- --------------
Undistributed (distributions in excess of) net
investment income $ (13,267) $ 852,111
-------------- --------------
The accompanying notes are an integral part of these financial statements. 29
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 6,148,223 $226,935,583 3,768,602 $105,916,751
Reinvestment of distributions 1,156,767 42,258,432 732,314 20,634,985
Less shares repurchased (2,587,913) (91,520,848) (2,772,335) (77,021,963)
---------- ------------ ---------- ------------
Net increase 4,717,077 $177,673,167 1,728,581 $ 49,529,773
========== ============ ========== ============
CLASS B
Shares sold 645,008 $ 21,438,992 774,498 $ 19,732,791
Reinvestment of distributions 193,529 6,263,342 175,821 4,483,106
Less shares repurchased (775,735) (24,046,265) (1,097,916) (27,980,601)
---------- ------------ ---------- ------------
Net increase (decrease) 62,802 $ 3,656,069 (147,597) $ (3,764,704)
========== ============ ========== ============
CLASS C
Shares sold 1,053,493 $ 34,208,147 859,501 $ 22,156,930
Reinvestment of distributions 277,734 8,973,733 210,174 5,342,957
Less shares repurchased (670,408) (20,868,493) (832,205) (21,050,652)
---------- ------------ ---------- ------------
Net increase 660,819 $ 22,313,387 237,470 $ 6,449,235
========== ============ ========== ============
CLASS R
Shares sold 677,073 $ 25,369,925 36,879 $ 1,092,750
Reinvestment of distributions 65,804 2,346,661 3,705 102,803
Less shares repurchased (77,756) (2,957,149) (6,309) (175,697)
---------- ------------ ---------- ------------
Net increase 665,121 $ 24,759,437 34,275 $ 1,019,856
========== ============ ========== ============
CLASS Y
Shares sold 360,067 $ 12,764,225 629,621 $ 18,829,678
Reinvestment of distributions 140,307 5,456,997 123,758 3,703,489
Less shares repurchased (312,820) (12,074,606) (145,668) (4,250,983)
---------- ------------ ---------- ------------
Net increase 187,554 $ 6,146,616 607,711 $ 18,282,184
========== ============ ========== ============
30 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/07 11/30/06 11/30/05 11/30/04 11/30/03
CLASS A
Net asset value, beginning of period $ 29.06 $ 23.64 $ 17.88 $ 14.47 $ 10.11
-------- -------- -------- -------- --------
Increase from investment operations:
Net investment income $ 0.05 $ 0.15 $ 0.19 $ 0.10 $ 0.07
Net realized and unrealized gain on investments and foreign
currency transactions 13.40 8.45 6.22 3.35 4.29
-------- -------- -------- -------- --------
Net increase from investment operations $ 13.45 $ 8.60 $ 6.41 $ 3.45 $ 4.36
-------- -------- -------- -------- --------
Distributions to shareowners:
Net investment income $ (0.07) $ (0.11) $ - $ (0.04) $ -
Net realized gain (4.15) (3.07) (0.65) - -
-------- -------- -------- -------- --------
Total distributions $ (4.22) $ (3.18) $ (0.65) $ (0.04) $ -
-------- -------- -------- -------- --------
Redemption fee $ - $ 0.00(a) $ 0.00(a) $ - $ -
-------- -------- -------- -------- --------
Net increase in net asset value $ 9.23 $ 5.42 $ 5.76 $ 3.41 $ 4.36
-------- -------- -------- -------- --------
Net asset value, end of period $ 38.29 $ 29.06 $ 23.64 $ 17.88 $ 14.47
======== ======== ======== ======== ========
Total return* 47.03% 36.84% 35.82% 23.86% 43.13%
Ratio of net expenses to average net assets+ 1.79% 1.90% 2.15% 2.17% 2.65%
Ratio of net investment income to average net assets+ 0.17% 0.49% 0.87% 0.61% 0.51%
Portfolio turnover rate 45% 42% 69% 69% 88%
Net assets, end of period (in thousands) $497,008 $240,097 $154,442 $146,503 $121,974
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.79% 1.90% 2.23% 2.24% 2.65%
Net investment income 0.17% 0.49% 0.79% 0.54% 0.51%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.78% 1.89% 2.15% 2.17% 2.64%
Net investment income 0.18% 0.50% 0.87% 0.61% 0.52%
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 31
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/07 11/30/06 11/30/05 11/30/04 11/30/03
CLASS B
Net asset value, beginning of period $ 26.19 $ 21.62 $ 16.52 $ 13.46 $ 9.47
------- -------- -------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.19) $ (0.09) $ (0.00)(a) $ (0.01) $ (0.08)
Net realized and unrealized gain on investments and foreign
currency transactions 11.99 7.73 5.75 3.07 4.07
------- -------- -------- ------- -------
Net increase from investment operations $ 11.80 $ 7.64 $ 5.75 $ 3.06 $ 3.99
------- -------- -------- ------- -------
Distributions to shareowners:
Net investment income $ - $ 0.00(a) $ - $ - $ -
Net realized gain (4.15) (3.07) (0.65) - -
------- -------- -------- ------- -------
Total distributions $ (4.15) $ (3.07) $ (0.65) $ - $ -
------- -------- -------- ------- -------
Redemption fee $ - $ 0.00(a) $ 0.00(a) $ - $ -
------- -------- -------- ------- -------
Net increase in net asset value $ 7.65 $ 4.57 $ 5.10 $ 3.06 $ 3.99
------- -------- -------- ------- -------
Net asset value, end of period $ 33.84 $ 26.19 $ 21.62 $ 16.52 $ 13.46
======= ======== ======== ======= =======
Total return* 45.78% 35.72% 34.78% 22.73% 42.13%
Ratio of net expenses to average net assets+ 2.65% 2.74% 2.94% 2.89% 3.37%
Ratio of net investment income (loss) to average net assets+ (0.67)% (0.34)% 0.04% (0.10)% (0.26)%
Portfolio turnover rate 45% 42% 69% 69% 88%
Net assets, end of period (in thousands) $64,562 $ 48,312 $ 43,085 $36,352 $38,615
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.65% 2.74% 2.96% 2.95% 3.37%
Net investment income (loss) (0.67)% (0.34)% 0.02% (0.16)% (0.26)%
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.63% 2.71% 2.94% 2.89% 3.37%
Net investment income (loss) (0.65)% (0.31)% 0.04% (0.10)% (0.26)%
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
32 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/07 11/30/06 11/30/05 11/30/04 11/30/03
CLASS C
Net asset value, beginning of period $ 26.12 $ 21.58 $ 16.47 $ 13.39 $ 9.42
------- ------- -------- -------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.17) $ (0.06) $ 0.02 $ 0.00(a) $ (0.14)
Net realized and unrealized gain on investments and foreign
currency transactions 11.98 7.69 5.74 3.08 4.11
------- ------- -------- -------- -------
Net increase from investment operations $ 11.81 $ 7.63 $ 5.76 $ 3.08 $ 3.97
------- ------- -------- -------- -------
Distributions to shareowners:
Net investment income $ - $ (0.02) $ - $ - $ -
Net realized gain (4.15) (3.07) (0.65) - -
------- ------- -------- -------- -------
Total distributions $ (4.15) $ (3.09) $ (0.65) $ - $ -
------- ------- -------- -------- -------
Redemption fee $ - $ - $ 0.00(a) $ - $ -
------- ------- -------- -------- -------
Net increase in net asset value $ 7.66 $ 4.54 $ 5.11 $ 3.08 $ 3.97
------- ------- -------- -------- -------
Net asset value, end of period $ 33.78 $ 26.12 $ 21.58 $ 16.47 $ 13.39
======= ======= ======== ======== =======
Total return* 45.94% 35.75% 34.94% 23.00% 42.14%
Ratio of net expenses to average net assets+ 2.57% 2.65% 2.80% 2.78% 3.32%
Ratio of net investment income (loss) to average net assets+ (0.59)% (0.27)% 0.15% (0.01)% (0.18)%
Portfolio turnover rate 45% 42% 69% 69% 88%
Net assets, end of period (in thousands) $99,966 $60,039 $ 44,468 $ 36,579 $25,632
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.57% 2.65% 2.82% 2.86% 3.32%
Net investment income (loss) (0.59)% (0.27)% 0.13% (0.08)% (0.18)%
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 2.56% 2.64% 2.80% 2.78% 3.32%
Net investment income (loss) (0.58)% (0.26)% 0.15% (0.01)% (0.18)%
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 33
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year 4/1/03 (a)
Ended Ended Ended Ended to
11/30/07 11/30/06 11/30/05 11/30/04 11/30/03
CLASS
Net asset value, beginning of period $ 28.52 $ 23.37 $ 17.72 $ 14.51 $ 9.57
------- -------- ------- ------- ---------
Increase from investment operations:
Net investment income $ 0.09 $ 0.10 $ 0.12 $ 0.11 $ 0.02
Net realized and unrealized gain on investments and foreign
currency transactions 13.00 8.26 6.18 3.25 4.93
------- -------- ------- ------- ---------
Net increase from investment operations $ 13.09 $ 8.36 $ 6.30 $ 3.36 $ 4.95
------- -------- ------- ------- ---------
Distributions to shareowners:
Net investment income $ (0.14) $ (0.14) $ - $ (0.15) $ (0.01)
Net realized gain (4.15) (3.07) (0.65) - -
------- -------- ------- ------- ---------
Total distributions $ (4.29) $ (3.21) $ (0.65) $ (0.15) $ (0.01)
------- -------- ------- ------- ---------
Redemption fee $ - $ 0.00(b) $ - $ - $ -
------- -------- ------- ------- ---------
Net increase in net asset value $ 8.80 $ 5.15 $ 6.30 $ 3.21 $ 4.94
------- -------- ------- ------- ---------
Net asset value, end of period $ 37.32 $ 28.52 $ 23.37 $ 17.72 $ 14.51
======= ======== ======= ======= =========
Total return* 46.75% 36.30% 35.53% 23.35% 51.74%(c)
Ratio of net expenses to average net assets+ 2.06% 2.52% 2.37% 2.61% 2.13%**
Ratio of net investment income (loss) to average net assets+ (0.26)% (0.21)% 0.53% 0.13% 0.56%**
Portfolio turnover rate 45% 42% 69% 69% 88%(c)
Net assets, end of period (in thousands) $26,316 $ 1,142 $ 135 $ 59 $ 2
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.06% 2.26% 2.58% 2.70% 2.13%**
Net investment income (loss) (0.26)% (0.06)% 0.32% 0.04% 0.56%**
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 2.06% 2.51% 2.37% 2.61% 2.13%**
Net investment income (loss) (0.26)% (0.45)% 0.53% 0.13% 0.56%**
(a) Class R shares were first publicly offered on April 1, 2003.
(b) Amount rounds to less than one cent per share.
(c) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
34 The accompanying notes are an integral part of these financial statements.
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/07 11/30/06 11/30/05 11/30/04 11/30/03
CLASS Y
Net asset value, beginning of period $ 30.95 $ 25.04 $ 18.78 $ 15.19 $ 10.51
------- -------- -------- ------- -------
Increase from investment operations:
Net investment income $ 0.25 $ 0.34 $ 0.16 $ 0.28 $ 0.19
Net realized and unrealized gain on investments and foreign
currency transactions 14.26 8.92 6.75 3.47 4.50
------- -------- -------- ------- -------
Net increase from investment operations $ 14.51 $ 9.26 $ 6.91 $ 3.75 $ 4.69
======= ======== ======== ======= =======
Distributions to shareowners:
Net investment income $ (0.21) $ (0.28) $ - $ (0.16) $ (0.01)
Net realized gain (4.15) (3.07) (0.65) - -
------- -------- -------- ------- -------
Total distributions $ (4.36) $ (3.35) $ (0.65) $ (0.16) $ (0.01)
------- -------- -------- ------- -------
Redemption fee $ - $ 0.00(a) $ 0.00(a) $ - $ -
------- -------- -------- ------- -------
Net increase in net asset value $ 10.15 $ 5.91 $ 6.26 $ 3.59 $ 4.68
------- -------- -------- ------- -------
Net asset value, end of period $ 41.10 $ 30.95 $ 25.04 $ 18.78 $ 15.19
======= ======== ======== ======= =======
Total return* 47.75% 37.60% 36.77% 24.86% 44.63%
Ratio of net expenses to average net assets+ 1.32% 1.33% 1.40% 1.30% 1.60%
Ratio of net investment income to average net assets+ 0.68% 1.02% 1.66% 1.46% 1.52%
Portfolio turnover rate 45% 42% 69% 69% 88%
Net assets, end of period (in thousands) $70,870 $ 47,573 $ 23,273 $54,440 $59,444
Ratios with no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 1.32% 1.33% 1.40% 1.37% 1.60%
Net investment income 0.68% 1.02% 1.66% 1.39% 1.52%
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 1.32% 1.33% 1.40% 1.30% 1.60%
Net investment income 0.68% 1.02% 1.66% 1.46% 1.52%
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 35
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Emerging Markets Fund (the Fund) is a Delaware statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is long-term
growth of capital.
The Fund offers five classes of shares - Class A, Class B, Class C, Class R, and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has equal rights to voting,
redemptions, dividends and liquidation, except that the rates of transfer agent
and distribution expenses may differ among classes. Class A, Class B, Class C
and Class R shareowners have exclusive voting rights with respect to the
distribution plan for each class. There is no distribution plan for Class Y
shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting year.
Actual results could differ from those estimates.
The Fund's investments in emerging markets or countries with limited or
developing markets may subject the Fund to a greater degree of risk than in a
developed market. Risks associated with these developing markets include
political, social or economic factors and may affect the price of the Fund's
investments and income generated by these investments, as well as the Fund's
ability to repatriate such amounts. 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 Fund's
prospectuses contain information regarding the Fund's principal risks. Please
refer to those documents when considering the Fund's risks.
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:
36
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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. At November 30, 2007, there were no securities fair
valued. 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
are 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.
37
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/07 (continued)
- --------------------------------------------------------------------------------
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, if any,
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.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain
38
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
countries. During the year ended November 30, 2007, the Fund paid $24,213
in such taxes.
In determining the daily net asset value, the Fund estimates the reserve
for such taxes, if any, associated with investments in certain countries.
The estimated reserve for the capital gains is based on the net unrealized
appreciation on certain portfolio securities, the holding period of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. As of November 30, 2007, the Fund had $410,526 in
reserve related to capital gains.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
At November 30, 2007, the Fund has reclassified $141,921 to decrease
undistributed net investment income and $141,921 to increase accumulated
net realized gain on investments and foreign currency transactions to
reflect permanent book/tax differences. The reclassification has no impact
on the net assets of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
The Fund has elected to defer approximately $15,420 of currency losses
recognized between November 1, 2007 and November 30, 2007 to its fiscal
year ending November 30, 2008.
At November 30, 2007, the Fund had a net capital loss carryforward of
$921,161 which will expire in 2008, if not utilized. Utilization of these
losses could be subject to limitations imposed by the Internal Revenue
Code.
The tax character of distributions paid during the years ended November 30,
2007 and November 30, 2006 was as follows:
39
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/07 (continued)
- --------------------------------------------------------------------------------
- ------------------------------------------------------------
2007 2006
- ------------------------------------------------------------
Distributions paid from:
Ordinary income $ 3,041,924 $ 1,362,420
Long-term capital gain 73,466,115 38,496,664
----------- -----------
Total $76,508,039 $39,859,084
=========== ===========
- ------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2007:
- ------------------------------------------------------------
2007
- ------------------------------------------------------------
Undistributed ordinary income $ -
Undistributed long-term gain 7,978,064
Capital loss carryforward limited
from merger (921,161)
Current year Post October currency loss (15,420)
Unrealized appreciation 269,425,748
------------
Total $276,467,231
============
- ------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales and the mark to
market on forward currency contracts.
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 $156,486 in underwriting commissions on
the sale of Class A shares during the year ended November 30, 2007.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y shares are
40
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
not subject to a distribution plan. Shareowners of each class share all
expenses and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services, which are allocated
based on the number of accounts in each class and the ratable allocation of
related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, Class C, Class R and Class Y shares can bear
different transfer agent and distribution expense rates.
G. Securities Lending
The Fund lends securities in its portfolio to certain brokers-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
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
which is required to be at least 102%, at all times, of the fair value of
the securities loaned. The amount of the collateral is required to be
adjusted daily to reflect any price fluctuation in the value of the loaned
securities. The Fund has the right under the lending agreements to recover
the securities on loan from the borrower on demand. The Fund invests cash
collateral in the Securities Lending Investment Fund, which is sponsored by
Brown Brothers Harriman & Co., the Fund's custodian.
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 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
41
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/07 (continued)
- --------------------------------------------------------------------------------
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 an annual rate of
1.15% of the Fund's average daily net assets.
PIM has agreed to limit ordinary operating expenses to the extent required to
reduce Fund expenses to 1.95%, 2.85%, 2.85% and 2.20% of the average daily net
assets attributable to Class A, Class B, Class C and Class R shares,
respectively. Class Y shares do not have an expense limitation. These expense
limitations are in effect through April 1, 2010 for Class A shares and through
April 1, 2008 for Class B, Class C and Class R 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. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $24,005 in management fees,
administrative costs and certain others services payable to PIM at November 30,
2007.
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" reflected on the Statement of
Assets and Liabilities is $115,787 in transfer agent fees payable to PIMSS at
November 30, 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. Currently under the Class A Plan, PFD is
reimbursed for distribution expenses in an amount up to 0.25% of the average
daily net assets attributable to Class A shares in reimbursement of its actual
expenditures to finance activities primarily intended to result in the sale of
Class A shares. Pursuant to the Class B Plan and the Class C Plan, the Fund pays
PFD 1.00% of the average daily net assets attributable to each class of shares.
The fee consists of a 0.25% service fee and a 0.75%
42
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Pursuant to the Class R Plan, the Fund pays PFD 0.50% of the average
daily net assets attributable to Class R shares as compensation for distribution
services. Included in "Due to affiliates" reflected on the Statement of Assets
and Liabilities is $8,150 in distribution fees payable to PFD at November 30,
2007.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holdings shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares help by such plans.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Class B shares that are redeemed within five years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%. There
are no CDSCs for class R shares. Proceeds from the CDSCs are paid to PFD. For
the year ended November 30, 2007, CDSCs in the amount of $88,577 were paid to
PFD.
5. Directed Brokerage and Expense Offset Arrangements
The Fund has entered into directed brokerage arrangements with brokers with whom
PIM places trades on behalf of the Fund under which the brokers provide services
to the Fund in addition to trade execution. These services may include payments
of certain expenses on behalf of the Fund. However, for the year ended November
30, 2007, the Fund's expenses were not reduced under these arrangements. In
addition, the Fund has entered into certain expense offset arrangements with
PIMSS resulting in a reduction in the Fund's total expenses, due to interest
earned on cash held by PIMSS. For the year ended November 30, 2007, the Fund's
expenses were reduced by $45,533 under such arrangements.
43
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/07 (continued)
- --------------------------------------------------------------------------------
6. Forward Foreign Currency Contracts
At November 30, 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 November 30, 2007,
the Fund had no outstanding portfolio hedges. The Fund's gross forward currency
settlement contracts receivable and payable were $1,051,359 and $1,053,512,
respectively, resulting in a net payable of $2,153.
7. Line of Credit
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 year ended
November 30, 2007, there were 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 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 May 31, 2008. At this time, management is evaluating the implications
of FIN
44
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
48 and any impact in the financial statements has not yet been determined.
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.
ADDITIONAL INFORMATION (unaudited)
For the fiscal year ended November 30, 2007, certain dividends paid by the Fund
may be subject to a maximum tax rate of 15%, as provided for by the Jobs and
Growth Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to
designate up to the maximum amount of such dividends allowable under the Act, as
taxed at a maximum rate of 15%. Complete information will be computed and
reported in conjunction with your 2007 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 0%.
45
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of
Pioneer Emerging Markets Fund:
We have audited the accompanying statement of assets and liabilities of Pioneer
Emerging Markets Fund (the "Fund"), including the schedule of investments, as of
November 30, 2007, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of November 30, 2007, by correspondence with the custodian
and brokers or by other appropriate auditing procedures when replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Emerging Markets Fund at November 30, 2007, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and financial highlights for each of the
periods indicated therein, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young, LLP
Boston, Massachusetts
January 16, 2008
46
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT
- --------------------------------------------------------------------------------
Pioneer Investment Management, Inc. (PIM) serves as the Fund's investment
adviser pursuant to an investment advisory agreement between PIM and the Fund.
The Trustees of the Fund, as required by law, determine annually whether to
continue the investment advisory agreement for the Fund.
In connection with their most recent consideration of the investment advisory
agreement for the Fund, the Trustees received and reviewed a substantial amount
of information provided by PIM in response to requests of the independent
Trustees and their independent legal counsel. The independent Trustees met on a
number of occasions with PIM and also separately with their independent legal
counsel to evaluate and discuss the information provided to them by PIM. At a
meeting held on November 13, 2007, based on their evaluation of the information
provided by PIM, the Trustees, including the independent Trustees voting
separately, unanimously approved the continuation of the investment advisory
agreement for another year.
In considering the continuation of the investment advisory agreement, the
Trustees considered various factors that they determined were relevant,
including the factors described below. The Trustees did not identify any single
factor as the controlling factor in determining to approve the continuation of
the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services provided
by PIM to the Fund, taking into account the investment objective and strategy of
the Fund and the information related to the Fund provided to the Trustees at
each quarterly meeting. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund and its research process. The Trustees considered the resources of PIM and
the personnel of PIM who provide investment management services to the Fund.
They also considered PIM's compliance and legal resources and personnel.
In addition, the Trustees considered the other services that PIM provides to the
Fund under the investment advisory agreement and that, as administrator, PIM is
responsible for the administration of the Fund's business and other affairs. It
was noted that PIM supervises and monitors the performance of the Fund's service
providers and provides the Fund with personnel (including officers) as are
necessary
47
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (continued)
- --------------------------------------------------------------------------------
for the Fund's operations. The Trustees considered the fees paid to PIM for the
provision of such services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services provided by PIM to the Fund were satisfactory and
consistent with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
average performance of its peer group of funds as classified by Morningstar,
Inc. (Morningstar), an independent provider of investment company data, and with
the performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the first quintile of its Morningstar
category for the one and three year periods ended June 30, 2007 and in the
second quintile of its Morningstar category for the five and ten year periods
ended June 30, 2007. (In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) The Trustees concluded that the
investment performance of the Fund was satisfactory.
Management Fee and Expenses
The Trustees considered information on the fees and expenses of the Fund in
comparison to the management fees of its peer group of funds as classified by
Morningstar and the expense ratios of a peer group of funds selected on the
basis of criteria determined by the independent Trustees for this purposes using
data provided by Strategic Insight Mutual Fund Research and Consulting, LLC
(Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2007 was in the third quintile relative to the management fees
paid by other funds in its peer group Morningstar category for the comparable
period. The Trustees also considered that the Fund's expense ratio for the
twelve months ended June 30, 2007 was in the third quintile relative to its
Strategic Insight peer group for the comparable period. It was noted that PIM
was not
48
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
managing any accounts with an investment objective and strategies that were
similar to the Fund.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of services provided, taking
into account the fees charged by other advisers for managing comparable mutual
funds with similar strategies. The Trustees also concluded that the Fund's
expense ratio was reasonable, taking into account the size of the Fund, the
quality of services provided by PIM, the investment performance of the Fund and
the contractual expense limitation agreed to by PIM with respect to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
recognized that PIM should be entitled to earn a reasonable level of profit for
the services provided to the Fund. The Trustees concluded that PIM's
profitability with respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered the economies of scale with respect to the management of
the Fund, whether the Fund had appropriately benefited from any economies of
scale, and whether there was potential for realization of any further economies
of scale.
The Trustees considered that, although the Fund pays a management fee at a fixed
rate as a percentage of the Fund's net assets, without any breakpoints, the
management fee rate paid by the Fund for the twelve months ended June 30, 2007
was in the third quintile relative to the management fees paid by other funds in
its peer group Morningstar category for the comparable period. The Trustees
49
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (continued)
- --------------------------------------------------------------------------------
concluded that, at current and reasonable foreseeable asset levels, breakpoints
in the management fee were not currently necessary.
Other Benefits
The Trustees considered the other benefits to PIM and its affiliates from their
relationships with the Fund. The Trustees considered that affiliates of PIM
serve as the Fund's transfer agent and distributor. The Trustees considered the
receipt of sales loads and payments under Rule 12b-1 plans in respect of the
Fund and the benefits to PIM and its affiliates from the use of "soft"
commission dollars generated by the Fund to pay for research and brokerage
services. The Trustees further considered the intangible benefits to PIM and its
affiliates by virtue of PIM's relationship with the Fund and the other Pioneer
funds. The Trustees concluded that the receipt of these benefits was reasonable
in the context of the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
continuation of the investment advisory agreement for the Fund.
50
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's affairs.
The officers of the Fund are responsible for the Fund's operations. The Fund's
Trustees and officers are listed below, together with their principal
occupations during the past five years. Trustees who are interested persons of
the Fund within the meaning of the 1940 Act are referred to as Interested
Trustees. Trustees who are not interested persons of the Fund are referred to as
Independent Trustees. Each of the Trustees (except Mr. Kingsbury, Mr. West and
Mr. Bock) serves as a Trustee of each of the 76 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer Funds").
Mr. Kingsbury serves as Trustee of 33 of the 76 Pioneer Funds, Mr. West serves
as Trustee of 32 of the 76 Pioneer Funds, and Mr. Bock serves as Trustee of 75
of the 76 Pioneer Funds. The address for all Trustees and all officers of the
Fund is 60 State Street, Boston, Massachusetts 02109.
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.pioneerfunds.com and on the SEC's web site at http://www.sec.gov.
51
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
John F. Cogan, Jr. (81)* Chairman of the Trustee since 1994.
Board, Trustee and Serves until a succes-
President sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Daniel K. Kingsbury (49)* Trustee and Executive Trustee since March
Vice President 2007. Serves until a
successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
John F. Cogan, Jr. (81)* Deputy Chairman and a Director of Pioneer Global Asset None
Management S.p.A. ("PGAM"); Non-Executive Chairman
and a Director of Pioneer Investment Management USA
Inc. ("PIM-USA"); Chairman and a Director of Pioneer;
Chairman and Director of Pioneer Institutional Asset
Management, Inc. (since 2006); Director of Pioneer
Alternative Investment Management Limited (Dublin);
President and a Director of Pioneer Alternative Investment
Management (Bermuda) Limited and affiliated funds; Direc-
tor of PIOGLOBAL Real Estate Investment Fund (Russia)
(until June 2006); Director of Nano-C, Inc. (since 2003);
Director of Cole Management Inc. (since 2004); Director of
Fiduciary Counseling, Inc.; President and Director of
Pioneer Funds Distributor, Inc. ("PFD") (until May 2006);
President of all of the Pioneer Funds; and Of Counsel,
Wilmer Cutler Pickering Hale and Dorr LLP
- ----------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (49)* Director, CEO and President of Pioneer Investment None
Management USA Inc.; Pioneer Investment Management,
Inc. and Pioneer Institutional Asset Management, Inc.
(since March 2007); Executive Vice President of all of the
Pioneer Funds (since March 2007); Director of Pioneer
Global Asset Management S.p.A. (since March 2007);
Head of New Markets Division, Pioneer Global Asset
Management S.p.A. (2000 - 2007)
- ----------------------------------------------------------------------------------------------------------------
52
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
David R. Bock (63) Trustee Trustee since 2005.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 1997.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
David R. Bock (63) Executive Vice President and Chief Financial Officer, I-trax, Director of The Enterprise
Inc. (publicly traded health care services company) (2004 Social Investment
- present); Partner, Federal City Capital Advisors (boutique Company (privately-held
merchant bank) (1997 to 2004); and Executive Vice affordable housing
President and Chief Financial Officer, Pedestal Inc. finance company); and
(internet-based mortgage trading company) (2000 - 2002) Director of New York
Mortgage Trust (publicly
traded mortgage REIT)
- -----------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) President, Bush International, LLC (international financial Director of Brady Corpora-
advisory firm) tion (industrial identifica-
tion and specialty coated
material products
manufacturer); Director of
Briggs & Stratton Co.
(engine manufacturer);
Director of UAL Corpora-
tion (airline holding
company); Director of
Mantech International
Corporation (national
security, defense, and
intelligence technology
firm): and Member, Board
of Governors, Investment
Company Institute
- -----------------------------------------------------------------------------------------------------------------
53
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Margaret B.W. Graham (60) Trustee Trustee since 1994.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2006.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 1994.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Stephen K. West (79) Trustee Trustee since 1994.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 1994.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Margaret B.W. Graham (60) Founding Director, Vice-President and Corporate Secretary, None
The Winthrop Group, Inc. (consulting firm); and Desautels
Faculty of Management, McGill University
- -------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Private investor (2004 - present); and Senior Executive Director of Quadriserv
Vice President, The Bank of New York (financial and securi- Inc. (technology products
ties services) (1986 - 2004) for securities lending
industry)
- -------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) President and Chief Executive Officer, Newbury, Piret & Director of New America
Company, Inc. (investment banking firm) High Income Fund, Inc.
(closed-end investment
company)
- -------------------------------------------------------------------------------------------------------------------
Stephen K. West (79) Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss
Helvetia Fund, Inc.
(closed-end investment
company)
- -------------------------------------------------------------------------------------------------------------------
John Winthrop (71) President, John Winthrop & Co., Inc. (private None
investment firm)
- -------------------------------------------------------------------------------------------------------------------
54
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Dorothy E. Bourassa (59) Secretary Since 2003. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Christopher J. Kelley (42) Assistant Secretary Since 2003. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2000. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Mark E. Bradley (48) Assistant Treasurer Since 2004. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Treasurer Since 2000. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Gary Sullivan (49) Assistant Treasurer Since 2002. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Dorothy E. Bourassa (59) Secretary of PIM-USA; Senior Vice President - Legal of None
Pioneer; Secretary/Clerk of most of PIM-USA's subsidiar-
ies; and Secretary of all of the Pioneer Funds since
September 2003 (Assistant Secretary from November
2000 to September 2003)
- --------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (42) Vice President and Senior Counsel of Pioneer since July None
2002 and Assistant Secretary of all of the Pioneer Funds
since September 2003; Vice President and Senior Counsel
of BISYS Fund Services, Inc. (April 2001 to June 2002);
Senior Vice President and Deputy General Counsel of
Funds Distributor, Inc. (July 2000 to April 2001)
- --------------------------------------------------------------------------------------------------------------
Vincent Nave (62) Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Treasurer of all of
the Pioneer Funds
- --------------------------------------------------------------------------------------------------------------
Mark E. Bradley (48) Deputy Treasurer of Pioneer since 2004 and Assistant None
Treasurer of all of the Pioneer Funds since November
2004; Treasurer and Senior Vice President, CDC IXIS
Asset Management Services from 2002 to 2003
- --------------------------------------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Vice President - Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
- --------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Fund Accounting Manager - Fund Accounting, Administra- None
tion and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
- --------------------------------------------------------------------------------------------------------------
55
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service
Name and Age With the Fund and Term of Office
Katherine Kim Sullivan (33) Assistant Treasurer Since 2003. Serves
at the discretion of
the Board
- --------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Since January 2007.
Officer Serves at the
discretion of the Board
- --------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Katherine Kim Sullivan (33) Fund Administration Manager - Fund Accounting, None;
Administration and Controllership Services since June
2003 and Assistant Treasurer of all of the Pioneer Funds
since September 2003; Assistant Vice President - Mutual
Fund Operations of State Street Corporation from June
2002 to June 2003 (formerly Deutsche Bank Asset
Management)
- --------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Officer of Pioneer since December 2006 None;
and of all the Pioneer Funds since January 2007; Vice
President and Compliance Officer, MFS Investment
Management (August 2005 to December 2006) Consult-
ant, Fidelity Investments (February 2005 to July 2005);
Independent Consultant (July 1997 to February 2005)
- --------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are
officers or directors of the Fund's investment adviser and certain of its
affiliates.
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly
owned by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. Pioneer, the fund's investment adviser, provides
investment management and financial services to mutual funds, institutional and
other clients.
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HOW TO CONTACT PIONEER
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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.
Audit Fees
Fees for audit services provided to the Fund, including fees
associated with the annual filing of its Form N-1A, totaled
approximately $37,450 in 2007 and $36,010 in 2006.
(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.
Audit-Related Fees and Other Fees
There were no fees for audit-related or other services
provided to the Fund during the fiscal years ended
November 30, 2007 and 2006.
(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.
Tax Fees
Fees for tax compliance services, primarily for tax returns,
totaled approximately $7,820 and $7,515 in 2007 and 2006,
respectively.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
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.
Non-Audit Services
Beginning with non-audit service contracts entered into on
or after May 6, 2003, the effective date of the new SEC pre-
approval rules, the Fund's audit committee is required to
pre-approve services to affiliates defined by SEC rules to the
extent that the services are determined to have a direct
impact on the operations or financial reporting of the Fund.
For the years ended November 30, 2007 and 2006, there
were no services provided to an affiliate that required the
Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal 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.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $7,820 in 2007
and $7,515 in 2006.
(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.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the 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 Emerging Markets Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date January 29, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date January 29, 2008
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date January 29, 2008
* Print the name and title of each signing officer under his or her signature.