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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07318
Pioneer International Value Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2008 through May 31, 2009
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer International Value Fund
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Semiannual Report | May 31, 2009
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PIIFX
Class B PBIFX
Class C PCITX
Class Y INVYX
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 23
Notes to Financial Statements 31
Trustees, Officers and Service Providers 39
Pioneer International Value Fund | Semiannual Report | 5/31/09 1
President's Letter
Dear Shareowner,
Stock and bond markets around the globe have been experiencing one of their
most tumultuous periods in history. Investors have witnessed volatility of a
magnitude that many have never before seen. Distance often provides the best
vantage point for perspective. Still, we believe that the benefits of basic
investment principles that have stood the test of time -- even in the midst of
market turmoil -- cannot be underestimated.
First, invest for the long term. The founder of Pioneer Investments, Philip L.
Carret, began his investment career during the 1920s. One lesson he learned is
that while great prosperity affords an advantageous time for selling stocks,
extreme economic slumps can create opportunities for purchase. Indeed, many of
our portfolio managers, who follow the value-conscious investing approach of
our founder, are looking at recent market conditions as an opportunity to buy
companies whose shares we believe have been unjustifiably beaten down by
indiscriminate selling, but that we have identified as having strong prospects
over time. While investors may be facing a sustained market downturn, we
continue to believe that patience, along with staying invested in the market,
are important considerations for long-term investors.
A second principle is to stay diversified across different types of
investments. The global scope of the current market weakness poses challenges
for this basic investment axiom. But the turbulence makes now a good time to
reassess your portfolio and make sure that your investments continue to meet
your needs. We believe you should 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.
As the investment markets sort through the continuing crisis in the financial
industry, we are staying focused on the fundamentals and risk management. With
more than 80 years of experience behind us, we have learned how to navigate
turbulent markets. At Pioneer Investments, risk management has always been a
critical part of our culture -- not just during periods of extraordinary
volatility. Our investment process is based on fundamental research,
quantitative analysis and active portfolio management. This three-pillared
process, which we apply to each of our portfolios, is supported by an
integrated team approach and is designed to carefully balance risk and reward.
While we see potential chances for making money in many corners of the market,
it takes
2 Pioneer International Value Fund | Semiannual Report | 5/31/09
research and experience to separate solid investment opportunities from
speculation.
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. Thank you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA Inc.
Any information in this 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.
Pioneer International Value Fund | Semiannual Report | 5/31/09 3
Portfolio Management Discussion | 5/31/09
With the global financial markets regaining their footing this spring,
international stocks turned in gratifying performance for the first half of
Pioneer International Value Fund's fiscal year through May 31, 2009. Much
uncertainty remains, but the gains reflected budding hopes that an economic
recovery will generate increased global demand and boost corporate profits. In
the follow interview, Andrea Salvatori, a member of Pioneer's international
investment team in Dublin, Ireland, discusses his strategies for managing the
Fund through a very challenging but rewarding market.
Q Andrea, how did the Fund perform for the six months ended May 31, 2009?
A Despite the turbulence in international markets during the first few months
of the reporting period, the Fund delivered strong absolute returns. The
Fund's Class A shares posted a return of 18.10% at net asset value for the
six months ended May 31, 2009, compared with a 15.57% return over the same
period for the Fund's benchmark, the Morgan Stanley Capital International
(MSCI) Europe, Australia, Far East (EAFE) Index; while the Fund's former
benchmark, the MSCI All County World Free ex-U.S. Index, returned 22.20%.
Over the same six-month period, the average return of the 337 mutual funds
in Lipper's International Large Cap Core category was 15.84%.
Q What factors contributed to the Fund's strong showing versus the MSCI EAFE
Index and its Lipper peers over the six months ended May 31, 2009?
A Given the extreme price volatility, we think effective stocking picking
played a role in the Fund's favorable results. When the reporting period
began last November, credit and liquidity concerns and recession fears were
taking a toll on investor confidence, sparking a global flight to quality.
Fortunately, in the months leading up to the steep market decline, we had
taken steps to protect the Fund from market volatility, because we believed
that global growth would soon deteriorate. The strategy included limiting
the Fund's exposure to investments in the financials sector and the
emerging markets, as well as cyclical stocks in Asia that were more
vulnerable in a slower-growth environment. We maintained that defensive
positioning of the Fund into the early months of the six-month reporting
period. During this time, two of the Fund's better-performing investments
were Eutelsat Communications, which serves cable and satellite markets, and
the health care equipment provider, Synthes.
4 Pioneer International Value Fund | Semiannual Report | 5/31/09
However, by the middle of February 2009, with foreign equities selling at
attractive prices and the announcement of more well-defined government
initiatives, including the U.S. Treasury's plan to handle toxic mortgage
assets, our outlook for the capital markets improved. Our strategy for the
Fund took on a more opportunistic bent, as we increased the portfolio's
exposure to cyclical stocks, particularly in the emerging markets, by
adding to key positions in PetroChina and Yanzhou Coal Mining. We also
increased the Fund's export-related stocks in Japanese firms, such as Canon
and Nintendo. In Europe, we bought Gea Group, a small industrial company
that manufactures food equipment.
In April 2009, we sold a few Fund holdings that we believed had
deteriorating fundamentals, such as the communications provider Nokia. We
also tendered shares of the video game distributor EIDOC -- which was being
acquired by a Japanese company -- at a nice profit. With the proceeds from
those sales, we increased positions in Petrobras and Rio Tinto.
From a sector perspective, our decision to maintain the Fund's emphasis on
the energy sector, while limiting investments in the basic materials and
financials sectors throughout the period, also proved advantageous. In our
estimation, the energy industry had the best relative potential of the
three sectors for sustainability of earnings, cash flow and dividends.
Fortunately, this proved to be the case during the period.
Q Given developments in the capital markets over the six-month reporting period
ended May 31, 2009, how did the Fund's positioning in financial stocks
fare?
A The Fund's financial holdings fared very well. Our efforts to limit the
Fund's exposure to the sector early on in the period proved beneficial and
contributed significantly to the Fund's strong showing versus the MSCI EAFE
Index and its Lipper peers. In the early months of the period, with the
global capital markets under great duress, the Fund had an underweight
position in the financials sector. However, when the credit markets began
showing signs of stabilization in February 2009, we increased the Fund's
allocation to financial stocks, bringing the portfolio's weighting more in
line with the benchmark index.
In late March 2009, global equity markets began to rally, and financial
stocks, which had precipitated the market's decline a year earlier, began a
recovery of sorts. The Fund's investment in Credit Suisse was particularly
rewarding, as the stock was a top contributor for the six-month period.
Insurance stocks, however, struggled, and the Fund's investments in Swiss
Reinsurance proved disappointing. Unexpected losses in February and the
resulting capital shortfall triggered a sharp decline in the company's
stock
Pioneer International Value Fund | Semiannual Report | 5/31/09 5
price. While the capital injection by Warren Buffett was a symbolic
testament to the viability and success of this leading global insurer,
shareholders continued to be disappointed by management's misleading
statements. We held off trimming the position until May and June, when the
stock price rebounded along with other financially-related stocks.
Q Were there any other holdings that detracted from the Fund's performance
during the six months ended May 31, 2009?
A The liquidity crunch has hit the renewable energy landscape as well. The
Fund's investments there have not been immune to the delay in orders,
including Clipper Windpower, a small-cap company with a unique market
position due to its technology and North American wind market focus.
Lastly, the healthcare equipment company Synthes has been affected by the
recent market rotation away from defensive stocks to cyclical, or
economically sensitive, equities. We think the company was also impacted by
fundamental concerns about the reimbursement debate taking place in the
U.S. health care market.
Q On June 12, 2009, Pioneer International Equity Fund was reorganized into
Pioneer International Value Fund. How are you managing the influx of new
assets?
A The philosophy and strategy of Pioneer International Value Fund remains the
same. Our approach is to combine in-depth, top-down analysis of the world's
economic prospects with rigorous bottom-up fundamental research. We believe
that this process helps enable us to select stocks of well-managed
companies that we believe are undervalued relative to their peers and may
outperform in the long term. We will be fine-tuning the Fund's portfolio
during the second half of the fiscal year, paring back the number of
holdings to approximately 75 stocks -- companies that in our view represent
the best global investment ideas in the developed and emerging markets.
Q What is your outlook?
A Despite some initial momentum in the global equity markets this spring, we
remain cautious and question the rally's staying power at this point. With
the global economy still mired in recession, we believe that the rally was
more reflective of investors' collective sigh of relief that the dire
scenarios put forth during the market's darkest days never came to pass.
The pace of economic decline has slowed in the United States, but foreign
markets, particularly the Eurozone and Japan, with their export-driven
growth, remain mixed given the decline in global trade. The widespread
intervention of governments and monetary authorities around the world is a
concern and will have repercussions for years to come, as will the
deregulated markets that precipitated the crisis.
6 Pioneer International Value Fund | Semiannual Report | 5/31/09
We may see some retrenchment before a bona fide recovery gets underway, as
investors digest earnings announcements and assess prospects for economic
growth. Furthermore, while the emerging markets are feeling the impact of
the global credit crisis, they were not at the epicenter of the financial
meltdown. So we think Asian stocks may reap the benefits of low interest
rates without the debt burdens that are dogging Western economies. We don't
believe that there will be a full decoupling of Asia from the Western
world, but we feel there will be a "gentle" divergence and that the
monetary easing we have seen in the developed countries will likely help
Asian stocks disproportionately.
Note to Shareowners: On August 25, 2008, the MSCI EAFE Index replaced the
MSCI All Country World Free ex-U.S. Index as the Fund's benchmark. We will
continue to provide performance comparisons between the Fund and the former
benchmark for up to one year from the date of the change. Please see pages
10-13 for more details.
Please refer to the Schedule of Investments on pages 16-22 for a full listing
of Fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest a substantial amount of its assets in issuers located in a
limited number of countries and therefore is susceptible to adverse economic,
political or regulatory developments affecting those countries. At times, the
Fund's investments may represent industries or industry sectors that are
interrelated or have common risks, making it more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
or sectors.
Past performance is no guarantee of future results, and there is no guarantee
that market forecasts discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes.
Pioneer International Value Fund | Semiannual Report | 5/31/09 7
Portfolio Summary | 5/31/09
Sector Distribution
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(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 22.6%
Industrials 17.1%
Energy 10.5%
Health Care 9.9%
Materials 9.0%
Consumer Discretionary 8.3%
Consumer Staples 7.1%
Information Technology 6.1%
Telecommunication Services 4.9%
Utilities 4.5%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Japan 20.3%
United Kingdom 17.7%
France 15.8%
Switzerland 8.4%
Germany 7.2%
United States 6.5%
Spain 4.7%
Ireland 4.5%
Australia 3.1%
Norway 2.5%
Brazil 2.1%
Singapore 1.9%
Netherlands 1.5%
People's Republic of China 1.2%
Sweden 1.2%
Taiwan 1.0%
Other (individually less than 1%) 0.4%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Ryanair Holdings Plc 4.47%
- --------------------------------------------------------------------------------
2. Eutelsat Communications SA 4.09
- --------------------------------------------------------------------------------
3. CS Group, Inc. 3.94
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4. Carrefour Supermarch 3.57
- --------------------------------------------------------------------------------
5. BHP Billiton, Ltd. 3.09
- --------------------------------------------------------------------------------
6. BNP Paribas SA 2.96
- --------------------------------------------------------------------------------
7. Repsol SA 2.88
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8. BP Amoco Plc 2.77
- --------------------------------------------------------------------------------
9. HSBC Holding Plc 2.74
- --------------------------------------------------------------------------------
10. Societe Generale SA 2.72
- --------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
8 Pioneer International Value Fund | Semiannual Report | 5/31/09
Prices and Distributions | 5/31/09
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 5/31/09 11/30/08
A $16.55 $14.15
- --------------------------------------------------------------------------------
B $15.02 $12.77
- --------------------------------------------------------------------------------
C $14.86 $12.64
- --------------------------------------------------------------------------------
Class 5/31/09 4/16/09
Y $16.57 $14.11
- --------------------------------------------------------------------------------
Distributions per Share: 12/1/08-5/31/09
- --------------------------------------------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $0.1431 $ -- $ --
- --------------------------------------------------------------------------------
B $ -- $ -- $ --
- --------------------------------------------------------------------------------
C $ -- $ -- $ --
- --------------------------------------------------------------------------------
Y $ -- $ -- $ --
- --------------------------------------------------------------------------------
Pioneer International Value Fund | Semiannual Report | 5/31/09 9
Performance Update | 5/31/09 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Europe,
Australasia and Far East Index (EAFE) and the MSCI All Country World ex-USA
Index.
Average Annual Total Returns
(As of May 31, 2009)
- --------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- --------------------------------------------------------------------------------
10 Years -0.23% -0.82%
5 Years 2.66 1.45
1 Year -36.00 -39.67
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2009)
- --------------------------------------------------------------------------------
Gross Net
1.90% 1.70%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International MSCI EAFE MSCI AC World
Value Fund Index ex-USA Index
--------------------- --------- -------------
5/99 9,425 10,000 10,000
11,626 11,743 11,849
5/01 8,397 9,754 9,788
7,718 8,845 9,034
5/03 6,479 7,789 8,058
8,076 10,359 10,731
5/05 9,049 11,938 12,596
11,847 15,371 16,494
5/07 14,866 19,580 21,264
14,391 19,186 21,911
5/09 9,210 12,231 14,122
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 4/1/12 for Class A shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI All Country World ex-USA Index measures the performance of developed
and emerging market stock markets. MSCI EAFE Index is a commonly used measure
of international stocks. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in the indices.
10 Pioneer International Value Fund | Semiannual Report | 5/31/09
Performance Update | 5/31/09 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East
Index (EAFE) and the MSCI All Country World ex-USA Index.
Average Annual Total Returns
(As of May 31, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years -1.22% -1.22%
5 Years 1.73 1.73
1 Year -36.57 -39.11
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2009)
- --------------------------------------------------------------------------------
Gross Net
2.76% 2.60%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International MSCI EAFE MSCI AC World
Value Fund Index ex-USA Index
--------------------- --------- -------------
5/99 10,000 10,000 10,000
12,243 11,743 11,849
5/01 8,743 9,754 9,788
7,957 8,845 9,034
5/03 6,600 7,789 8,058
8,115 10,359 10,731
5/05 9,002 11,938 12,596
11,679 15,371 16,494
5/07 14,527 19,580 21,264
13,939 19,186 21,911
5/09 8,842 12,231 14,122
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 net expense ratio reflects contractual expense limitations currently in
effect through 4/1/10 for Class B shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI All Country World ex-USA Index measures the performance of developed
and emerging market stock markets. MSCI EAFE Index is a commonly used measure
of international stocks. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in the indices.
Pioneer International Value Fund | Semiannual Report | 5/31/09 11
Performance Update | 5/31/09 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East
Index (EAFE) and the MSCI All Country World ex-USA Index.
Average Annual Total Returns
(As of May 31, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years -1.25% -1.25%
5 Years 1.83 1.83
1 Year -36.63 -36.63
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2009)
- --------------------------------------------------------------------------------
Gross Net
2.57% 2.57%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International MSCI EAFE MSCI AC World
Value Fund Index ex-USA Index
--------------------- --------- -------------
5/99 10,000 10,000 10,000
12,191 11,743 11,849
5/01 8,718 9,754 9,788
7,897 8,845 9,034
5/03 6,556 7,789 8,058
8,051 10,359 10,731
5/05 8,949 11,938 12,596
11,618 15,371 16,494
5/07 14,483 19,580 21,264
13,908 19,186 21,911
5/09 8,814 12,231 14,122
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 net expense ratio reflects contractual expense limitations currently in
effect through 4/1/10 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 performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The MSCI All Country World ex-USA Index measures the performance of developed
and emerging market stock markets. MSCI EAFE Index is a commonly used measure
of international stocks. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in the indices.
12 Pioneer International Value Fund | Semiannual Report | 5/31/09
Performance Update | 5/31/09 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer International Value Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East
Index (EAFE) and the MSCI All Country World ex-USA Index.
Average Annual Total Returns
(As of May 31, 2009)
- --------------------------------------------------------------------------------
If If
Period Held Redeemed
- --------------------------------------------------------------------------------
10 Years -0.22% -0.22%
5 Years 2.69 2.69
1 Year -35.92 -35.92
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2009)
- --------------------------------------------------------------------------------
Gross Net
1.12% 1.12%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International MSCI EAFE MSCI AC World
Value Fund Index ex-USA Index
--------------------- --------- -------------
5/99 10,000 10,000 10,000
12,332 11,743 11,849
5/01 8,907 9,754 9,788
8,187 8,845 9,034
5/03 6,872 7,789 8,058
8,567 10,359 10,731
5/05 9,599 11,938 12,596
12,567 15,371 16,494
5/07 15,770 19,580 21,264
15,265 19,186 21,911
5/09 9,782 12,231 14,122
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 shown 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 for Class Y shares prior to their inception would have been higher
than the performance shown. 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 All Country World ex-USA Index measures the performance of developed
and emerging market stock markets. MSCI EAFE Index is a commonly used measure
of international stocks. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. You cannot invest directly in the indices.
Pioneer International Value Fund | Semiannual Report | 5/31/09 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments and
redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer International Value Fund
Based on actual returns from December 1, 2008 through May 31, 2009.
Share Class A B C Y
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 12/1/08**
- --------------------------------------------------------------------------------------------
Ending Account $1,181.00 $1,176.20 $1,175.60 $1,190.40
Value (after expenses)
On 5/31/09
- --------------------------------------------------------------------------------------------
Expenses Paid $ 9.24 $ 14.11 $ 14.10 $ 1.55
During Period*
- --------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.70%, 2.60%,
2.60% and 1.12% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 182/365 (46/365 for Class Y shares) (to reflect the partial
year period).
** 4/16/09 for Class Y shares.
14 Pioneer International Value Fund | Semiannual Report | 5/31/09
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer International Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from December 1, 2008 through May 31, 2009.
Share Class A B C Y
Beginning Account Value $1,000.00 $1,000.00 $1,000.00 $1,000.00
On 12/1/08**
- --------------------------------------------------------------------------------------------
Ending Account $1,016.45 $1,011.97 $1,011.97 $1,004.89
Value (after expenses)
On 5/31/09
- --------------------------------------------------------------------------------------------
Expenses Paid $ 8.55 $ 13.04 $ 13.04 $ 1.41
During Period*
- --------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.70%, 2.60%,
2.60% and 1.12% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 182/365 (46/365 for Class Y shares) (to reflect the partial
year period).
** 4/16/09 for Class Y shares.
Pioneer International Value Fund | Semiannual Report | 5/31/09 15
Schedule of Investments | 5/31/09 (unaudited)
Shares Value
COMMON STOCKS -- 91.5%
ENERGY -- 9.6%
Coal & Consumable Fuels -- 0.6%
527,900 Yanzhou Coal Mining Co., Ltd.* $ 666,031
- -------- -------------------------------------------- ------------
Integrated Oil & Gas -- 9.0%
66,446 BG Group Plc $ 1,212,446
338,772 BP Amoco Plc 2,802,225
15,486 Petrobras Brasileiro SA (A.D.R.)* 541,545
129,661 Repsol SA 2,909,819
93,083 Royal Dutch Shell Plc 2,499,621
------------
$ 9,965,656
------------
Total Energy $ 10,631,687
- -------- -------------------------------------------- ------------
MATERIALS -- 8.3%
Diversified Chemical -- 1.4%
33,406 Akzo Nobel NV $ 1,552,854
600 UBE Industries, Ltd. 1,438
------------
$ 1,554,292
- -------- ---------------- ------------
Diversified Metals & Mining -- 6.2%
110,512 BHP Billiton, Ltd. $ 3,120,445
45,701 Rio Tinto Plc 2,070,072
101,624 Vale SA (A.D.R.) 1,649,358
------------
$ 6,839,875
- -------- ---------------- ------------
Fertilizers & Agricultural Chemicals -- 0.7%
22,489 Yara International ASA $ 744,693
- -------- -------------------------------------------- ------------
Industrial Gases -- 0.0%
200 Taiyo Nippon Sanso Corp. $ 1,713
------------
Total Materials $ 9,140,573
- -------- -------------------------------------------- ------------
CAPITAL GOODS -- 7.7%
Construction & Engineering -- 0.0%
400 China Railway Group, Ltd.* $ 327
- -------- -------------------------------------------- ------------
Construction & Farm Machinery & Heavy Trucks -- 0.0%
5 Daewoo Heavy Industries & Machinery, Ltd.* $ 82
- -------- -------------------------------------------- ------------
Electrical Component & Equipment -- 0.7%
64,100 Sumitomo Electric Industries, Ltd. $ 731,477
- -------- -------------------------------------------- ------------
Heavy Electrical Equipment -- 1.8%
50,656 Abb, Ltd. $ 831,632
194,000 Mitsubishi Electric Corp. 1,130,981
------------
$ 1,962,613
- -------- ---------------- ------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer International Value Fund | Semiannual Report | 5/31/09
Shares Value
Industrial Machinery -- 3.5%
106,929 Gea Group AG $ 1,672,198
194,100 Kawasaki Heavy Industries, Ltd. 436,389
64,700 Kurita Water Industries, Ltd. 1,796,023
------------
$ 3,904,610
- -------- --------------------- ------------
Trading Companies & Distributors -- 1.7%
145,100 Itochu Corp. $ 1,056,198
900 Marubeni Corp. 4,096
82,900 Sumitomo Corp. 832,249
------------
$ 1,892,543
------------
Total Capital Goods $ 8,491,652
- -------- -------------------------------------- ------------
COMMERCIAL SERVICES & SUPPLIES -- 2.6%
Environmental & Facilities Services -- 2.6%
62,410 Suez Environnement SA $ 1,132,655
440,876 Tomra Systems ASA 1,746,877
------------
$ 2,879,532
------------
Total Commercial Services & Supplies $ 2,879,532
- -------- -------------------------------------- ------------
TRANSPORTATION -- 5.3%
Airlines -- 4.1%
874,343 Ryanair Holdings Plc* $ 4,510,903
- -------- -------------------------------------- ------------
Marine -- 0.2%
49,700 Kawasaki Kisen Kaisha, Ltd. $ 226,309
- -------- -------------------------------------- ------------
Railroads -- 1.0%
19,100 East Japan Railway Co. $ 1,142,350
------------
Total Transportation $ 5,879,562
- -------- -------------------------------------- ------------
AUTOMOBILES & COMPONENTS -- 1.2%
Automobile Manufacturers -- 1.2%
21,900 Honda Motor Co., Ltd. $ 636,547
700 Isuzu Motors, Ltd. 1,216
16,700 Toyota Motor Co. 676,972
------------
$ 1,314,735
------------
Total Automobiles & Components $ 1,314,735
- -------- -------------------------------------- ------------
CONSUMER DURABLES & APPAREL -- 2.6%
Apparel, Accessories & Luxury Goods -- 0.2%
9,381 Cie Financiere Richemont AG $ 205,026
- -------- -------------------------------------- ------------
Homebuilding -- 2.4%
444,000 Sekisui Chemical Co., Ltd. $ 2,715,028
------------
Total Consumer Durables & Apparel $ 2,920,054
- -------- -------------------------------------- ------------
MEDIA -- 3.7%
Cable & Satellite -- 3.7%
162,827 Eutelsat Communications SA $ 4,132,485
------------
Total Media $ 4,132,485
- -------- -------------------------------------- ------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/09 17
Schedule of Investments | 5/31/09 (unaudited) (continued)
Shares Value
RETAILING -- 0.0%
Department Stores -- 0.0%
300 New World Department Store China, Ltd. $ 221
------------
Total Retailing $ 221
--- ---------------------------------------- ------------
FOOD & DRUG RETAILING -- 3.3%
Hypermarkets & Supercenters -- 3.3%
80,729 Carrefour Supermarch $ 3,608,856
------------
Total Food & Drug Retailing $ 3,608,856
------ ---------------------------------------- ------------
FOOD, BEVERAGE & TOBACCO -- 3.3%
Brewers -- 1.0%
84,100 Kirin Holdings Co., Ltd.* $ 1,062,148
---------------------------------------- ------------
Packaged Foods & Meats -- 1.3%
61,773 Unilever Plc $ 1,450,217
------ ---------------------------------------- ------------
Tobacco -- 1.0%
41,061 Imperial Tobacco Group Plc $ 1,063,699
------------
Total Food, Beverage & Tobacco $ 3,576,064
------ ---------------------------------------- ------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.0%
Household Products -- 0.0%
800 Kao Corp. $ 17,653
------------
Total Household & Personal Products $ 17,653
------ ---------------------------------------- ------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.8%
Health Care Equipment -- 3.7%
29,058 Medtronic, Inc.* $ 998,142
17,905 Synthes, Inc. 1,836,769
26,951 Zimmer Holdings, Inc.* 1,200,667
------------
$ 4,035,578
------ ---------------------- ------------
Health Care Services -- 1.1%
30,165 Fresenius Medical Care AG $ 1,265,642
------------
Total Health Care Equipment & Services $ 5,301,220
------ ---------------------------------------- ------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 4.2%
Pharmaceuticals -- 4.2%
57,066 Bristol-Myers Squibb Co. $ 1,136,755
14,571 Novartis AG 580,339
12,828 Roche Holdings AG 1,749,669
30,600 Takeda Chemical Industries, Ltd. 1,215,421
------------
$ 4,682,184
------------
Total Pharmaceuticals & Biotechnology $ 4,682,184
------ ---------------------------------------- ------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer International Value Fund | Semiannual Report | 5/31/09
Shares Value
BANKS -- 12.8%
Diversified Banks -- 12.8%
175,575 Banco Santander Central Hispano SA $ 1,879,518
43,082 BNP Paribas SA 2,985,736
241,738 Development Bank of Singapore, Ltd. 1,989,532
305,677 HSBC Holding Plc 2,771,630
80 Mitsubishi UFJ Financial Group, Inc. 506
47,210 Societe Generale SA 2,749,650
44,200 Sumitomo Mitsui Financial Group, Inc. 1,713,591
------------
$ 14,090,163
------------
Total Banks $ 14,090,163
- ------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.6%
Diversified Capital Markets -- 3.6%
88,518 CS Group AG $ 3,979,806
- ------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.0%
700 Daiwa Securities Group, Inc. $ 4,428
- ------------------------------------------------------------------------------
Multi-Sector Holding -- 0.0%
821 Reinet Investments SCA* $ 9,911
------------
Total Diversified Financials $ 3,994,145
- ------------------------------------------------------------------------------
INSURANCE -- 3.4%
Multi-Line Insurance -- 2.4%
26,486 Allianz AG $ 2,606,113
- ------------------------------------------------------------------------------
Reinsurance -- 1.0%
33,869 Swiss Reinsurance, Ltd. $ 1,103,928
------------
Total Insurance $ 3,710,041
- ------------------------------------------------------------------------------
REAL ESTATE -- 0.9%
Diversified Real Estate Activities -- 0.9%
60,901 Mitsui Fudosan Co. $ 1,019,990
------------
Total Real Estate $ 1,019,990
- ------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 3.7%
Application Software -- 1.0%
131,195 GameLoft SA* $ 541,478
492,000 PetroChina Co., Ltd. 566,930
------------
$ 1,108,408
- ------------------------------------------------------------------------------
Home Entertainment Software -- 2.7%
59,104 Electronic Arts, Inc.* $ 1,358,801
5,900 Nintendo Corp., Ltd. 1,594,796
------------
$ 2,953,597
------------
Total Software & Services $ 4,062,005
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/09 19
Schedule of Investments | 5/31/09 (unaudited) (continued)
Shares Value
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.9%
Electronic Manufacturing Services -- 0.9%
138,783 Hon Hai Precision Industry Co., Ltd. (G.D.R.)* $ 973,592
- ------------------------------------------------------------------------------
Office Electronics -- 1.0%
32,700 Canon, Inc.* $ 1,088,461
------------
Total Technology Hardware & Equipment $ 2,062,053
- ------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.4%
Integrated Telecommunication Services -- 2.3%
33,600 Nippon Telegraph & Telephone Corp. $ 1,404,219
117,571 Tele2 Ab (B Shares) 1,185,301
------------
$ 2,589,520
- ------------------------------------------------------------------------------
Wireless Telecommunication Services -- 2.1%
1,239,323 Vodafone Group Plc $ 2,324,108
------------
Total Telecommunication Services $ 4,913,628
- ------------------------------------------------------------------------------
UTILITIES -- 4.2%
Electric Utilities -- 1.9%
47,832 E.On AG $ 1,699,776
17,980 Fortum Corp. 439,109
------------
$ 2,138,885
- ------------------------------------------------------------------------------
Independent Power Producer & Energy Traders -- 1.1%
323,224 Clipper Windpower Plc* $ 751,115
100,373 International Power Plc 444,636
------------
$ 1,195,751
- ------------------------------------------------------------------------------
Multi-Utilities -- 1.2%
20,126 Gaz De France SA $ 791,110
48,780 National Grid Plc 472,828
------------
$ 1,263,938
------------
Total Utilities $ 4,598,574
- ------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $108,689,368) $101,027,077
- ------------------------------------------------------------------------------
RIGHTS/WARRANTS -- 0.0%
ENERGY -- 0.0%
Integrated Oil & Gas -- 0.0%
93,083 Royal Dutch Shell Rights, Exp. 6/2/09* $ --
- ------------------------------------------------------------------------------
Total Energy $ --
- ------------------------------------------------------------------------------
BANKS -- 0.0%
Diversified Banks -- 0.0%
43,082 BNP Paribas Rights, Exp. 6/8/09* $ --
47,210 Societe Generale Rights, Exp. 6/20/09* --
- ------------------------------------------------------------------------------
Total Banks $ --
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer International Value Fund | Semiannual Report | 5/31/09
Shares Value
TOTAL RIGHTS/WARRANTS
(Cost $0) $ --
- ------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 91.5%
(Cost $110,905,779) (a) $101,027,077
- ------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 8.5% $ 9,390,881
- ------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $110,417,958
================================================================================
(A.D.R.) American Depositary Receipt
(G.D.R.) Global Depositary Receipt
* Non-income producing security.
(a) At May 31, 2009, the net unrealized loss on investments based on cost
for federal income tax purposes of $111,621,645 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $ 5,286,911
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (15,881,479)
------------
Net unrealized loss $(10,594,568)
============
(b) Distributions of investments by country of issue, as a percentage of
total investment in securities (excluding temporary cash investments),
is as follows:
Japan 20.3%
United Kingdom 17.7
France 15.8
Switzerland 8.4
Germany 7.2
United States 6.5
Spain 4.7
Ireland 4.5
Australia 3.1
Norway 2.5
Brazil 2.1
Singapore 1.9
Netherlands 1.5
People's Republic of China 1.2
Sweden 1.2
Taiwan 1.0
Other (individually less than 1%) 0.4
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended May 31, 2009 aggregated $38,098,625 and $14,768,913,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/09 21
Schedule of Investments | 5/31/09 (unaudited) (continued)
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
Level 1 -- quoted prices in active markets for identical securities
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of May 31, 2009, in valuing
the Fund's assets:
Investments
Valuation Inputs in Securities
Level 1 -- Quoted Prices $ 6,209,502
Level 2 -- Other Significant Observable Inputs 94,817,575
Level 3 -- Significant Unobservable Inputs --
- --------------------------------------------------------------------------------
Total $ 101,027,077
================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer International Value Fund | Semiannual Report | 5/31/09
Statement of Assets and Liabilities | 5/31/09 (unaudited)
ASSETS:
Investment in securities (cost $110,905,779) $101,027,077
Cash 8,718,951
Foreign currencies, at value (cost $8,330) 7,751
Receivables --
Fund shares sold 148,752
Dividends and foreign taxes withheld 594,731
Due from Pioneer Investment Management, Inc. 3,094
Other 35,848
- -------------------------------------------------------------------------------------
Total assets $110,536,204
- -------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 17,083
Due to affiliates 14,691
Accrued expenses 86,472
- -------------------------------------------------------------------------------------
Total liabilities $ 118,246
- -------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $152,007,465
Undistributed net investment income 811,777
Accumulated net realized loss on investments and foreign currency
transactions (32,536,821)
Net unrealized loss on investments (9,878,702)
Net unrealized gain on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies 14,239
- -------------------------------------------------------------------------------------
Total net assets $110,417,958
=====================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $58,956,091/3,562,469 shares) $ 16.55
Class B (based on $5,896,225/392,689 shares) $ 15.02
Class C (based on $5,746,656/386,694 shares) $ 14.86
Class Y (based on $39,818,986/2,403,327 shares) $ 16.57
MAXIMUM OFFERING PRICE:
Class A ($16.55 [divided by] 94.25%) $ 17.56
=====================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/09 23
Statement of Operations (unaudited)
For the Six Months Ended 5/31/09
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $256,886) $ 1,444,569
- ----------------------------------------------------------------------------------------------
Total investment income $ 1,444,569
- ----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 285,969
Transfer agent fees
Class A 138,142
Class B 27,719
Class C 15,172
Distribution fees
Class A 63,184
Class B 26,624
Class C 24,727
Shareholder communications expense 103,809
Administrative reimbursements 18,576
Custodian fees 9,724
Registration fees 32,737
Professional fees 36,588
Printing expense 12,852
Fees and expenses of nonaffiliated trustees 3,531
Miscellaneous 12,899
- ----------------------------------------------------------------------------------------------
Total expenses $ 812,253
Less fees waived and expenses reimbursed by
Pioneer Investment Management, Inc. (216,029)
Less fees paid indirectly (238)
- ----------------------------------------------------------------------------------------------
Net expenses $ 595,986
- ----------------------------------------------------------------------------------------------
Net investment income $ 848,583
- ----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (5,056,798)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 110,846 $(4,945,952)
- ----------------------------------------------------------------------------------------------
Change in net unrealized gain (loss) on:
Investments $ 19,920,143
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (148,009) $19,772,134
- ----------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $14,826,182
- ----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $15,674,765
==============================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer International Value Fund | Semiannual Report | 5/31/09
Statements of Changes in Net Assets
For the Six Months Ended 5/31/09 and the Year Ended 11/30/08
Six Months
Ended
5/31/09 Year Ended
(unaudited) 11/30/08
FROM OPERATIONS:
Net investment income $ 848,583 $ 1,105,420
Net realized loss on investments and foreign currency
transactions (4,945,952) (7,590,314)
Change in net unrealized gain (loss) on investments and foreign
currency transactions 19,772,134 (64,966,304)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ 15,674,765 $ (71,451,198)
- --------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.14 and $0.19 per share, respectively) $ (533,236) $ (898,147)
Class B ($0.00 and $0.06 per share, respectively) -- (46,117)
Class C ($0.00 and $0.10 per share, respectively) -- (68,577)
- --------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (533,236) $ (1,012,841)
- --------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 37,887,286 $ 17,362,351
Reinvestment of distributions 470,420 894,876
Cost of shares repurchased (8,168,666) (49,017,569)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 30,189,040 $ (30,760,342)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 45,330,569 $(103,224,381)
NET ASSETS:
Beginning of period 65,087,389 168,311,770
- --------------------------------------------------------------------------------------------------
End of period $110,417,958 $ 65,087,389
- --------------------------------------------------------------------------------------------------
Undistributed net investment income $ 811,777 $ 496,430
- --------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/09 25
Statements of Changes in Net Assets (continued)
'09 Shares '09 Amount '08 Shares '08 Amount
(unaudited) (unaudited)
Class A
Shares sold 159,599 $ 2,269,390 496,898 $ 12,043,033
Reinvestment of distributions 31,937 470,420 28,873 790,743
Less shares repurchased (426,242) (5,832,227) (1,468,027) (33,613,994)
- -----------------------------------------------------------------------------------------------------
Net decrease (234,706) $(3,092,417) (942,256) $(20,780,218)
=====================================================================================================
Class B
Shares sold 33,423 $ 1,042,535 126,055 $ 2,758,718
Reinvestment of distributions -- -- 1,731 43,149
Less shares repurchased (108,878) (1,328,395) (387,436) (8,128,926)
- -----------------------------------------------------------------------------------------------------
Net decrease (75,455) $ (285,860) (259,650) $ (5,327,059)
=====================================================================================================
Class C
Shares sold 46,187 $ 636,239 119,874 $ 2,560,600
Reinvestment of distributions -- -- 2,471 60,984
Less shares repurchased (85,580) (997,886) (348,494) (7,274,649)
- -----------------------------------------------------------------------------------------------------
Net decrease (39,393) $ (361,647) (226,149) $ (4,653,065)
=====================================================================================================
Class Y*
Shares sold 2,404,045 $33,939,122 -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased (718) (10,158) -- --
- -----------------------------------------------------------------------------------------------------
Net increase 2,403,327 $33,928,964 -- $ --
=====================================================================================================
* Class Y shares were first publicly offered on April 16, 2009.
The accompanying notes are an integral part of these financial statements.
26 Pioneer International Value Fund | Semiannual Report | 5/31/09
Financial Highlights
Six Months
Ended
5/31/09 Year Ended
(unaudited) 11/30/08
Class A
Net asset value, beginning of period $ 14.15 $ 28.12
- -------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.15 $ 0.27
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 2.39 (14.05)
- -------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.54 $ (13.78)
Distributions to shareowners:
Net investment income (0.14) (0.19)
- -------------------------------------------------------------------------------------------------
Redemption fee $ -- $ --
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.40 $ (13.97)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.55 $ 14.15
=================================================================================================
Total return* 18.10% (49.33)%
Ratio of net expenses to average net assets+ 1.70%** 1.71%
Ratio of net investment income to average net assets+ 2.05%** 1.07%
Portfolio turnover rate 43%** 135%
Net assets, end of period (in thousands) $ 58,956 $ 53,725
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 2.43%** 1.90%
Net investment income 1.32%** 0.88%
Ratios with waiver of fees and assumption of expenses by the Adviser
and reduction for fees paid indirectly:
Net expenses 1.70%** 1.70%
Net investment income 2.05%** 1.08%
=================================================================================================
Year Ended Year Ended Year Ended Year Ended
11/30/07 11/30/06 11/30/05 11/30/04
Class A
Net asset value, beginning of period $ 23.98 $ 19.08 $ 16.76 $ 13.72
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.22 $ 0.12 $ 0.12 $ 0.04
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 4.02 4.84 2.20 3.00
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.24 $ 4.96 $ 2.32 $ 3.04
Distributions to shareowners:
Net investment income (0.10) (0.06) -- --
- -----------------------------------------------------------------------------------------------------------------------------
Redemption fee $ -- $ -- $ --(a) $ --
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 4.14 $ 4.90 $ 2.32 $ 3.04
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 28.12 $ 23.98 $ 19.08 $ 16.76
=============================================================================================================================
Total return* 17.73% 26.07% 13.84% 22.16%
Ratio of net expenses to average net assets+ 1.68% 1.71% 1.70% 1.82%
Ratio of net investment income to average net assets+ 0.76% 0.52% 0.61% 0.28%
Portfolio turnover rate 81% 98% 111% 122%
Net assets, end of period (in thousands) $133,264 $142,645 $128,426 $125,880
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 1.68% 1.79% 1.88% 1.99%
Net investment income 0.76% 0.44% 0.43% 0.11%
Ratios with waiver of fees and assumption of expenses by the Adviser
and reduction for fees paid indirectly:
Net expenses 1.66% 1.70% 1.70% 1.82%
Net investment income 0.78% 0.53% 0.61% 0.28%
=============================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges.
Total return would be reduced if sales charges were taken into account.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than one cent per share.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/09 27
Financial Highlights (continued)
Six Months
Ended
5/31/09 Year Ended
(unaudited) 11/30/08
Class B
Net asset value, beginning of period $ 12.77 $ 25.50
- -------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.09 $ 0.09
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 2.16 (12.76)
- -------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.25 $ (12.67)
Distributions to shareowners:
Net investment income -- (0.06)
- -------------------------------------------------------------------------------------------------
Redemption fee $ -- $ --
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.25 $ (12.73)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.02 $ 12.77
=================================================================================================
Total return* 17.62% (49.80)%
Ratio of net expenses to average net assets+ 2.60%** 2.61%
Ratio of net investment income (loss) to average net assets+ 1.06%** 0.14%
Portfolio turnover rate 43%** 135%
Net assets, end of period (in thousands) $ 5,896 $ 5,978
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 3.42%** 2.76%
Net investment income (loss) 0.25%** (0.01)%
Ratios with waiver of fees and assumption of expenses by the Adviser
and reduction for fees paid indirectly:
Net expenses 2.60%** 2.60%
Net investment income (loss) 1.06%** 0.15%
=================================================================================================
Year Ended Year Ended Year Ended Year Ended
11/30/07 11/30/06 11/30/05 11/30/04
Class B
Net asset value, beginning of period $ 21.86 $ 17.49 $ 15.49 $ 12.86
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.02) $ (0.07) $ (0.04) $ (0.15)
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 3.66 4.44 2.04 2.78
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.64 $ 4.37 $ 2.00 $ 2.63
Distributions to shareowners:
Net investment income -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Redemption fee $ -- $ --(a) $ --(a) $ --
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.64 $ 4.37 $ 2.00 $ 2.63
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 25.50 $ 21.86 $ 17.49 $ 15.49
=============================================================================================================================
Total return* 16.65% 24.99% 12.91% 20.45%
Ratio of net expenses to average net assets+ 2.55% 2.62% 2.57% 3.15%
Ratio of net investment income (loss) to average net assets+ (0.12)% (0.41)% (0.25)% (1.04)%
Portfolio turnover rate 81% 98% 111% 122%
Net assets, end of period (in thousands) $ 18,562 $ 15,282 $ 14,205 $ 14,051
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 2.55% 2.76% 2.96% 3.14%
Net investment income (loss) (0.12)% (0.55)% (0.64)% (1.03)%
Ratios with waiver of fees and assumption of expenses by the Adviser
and reduction for fees paid indirectly:
Net expenses 2.52% 2.60% 2.56% 3.15%
Net investment income (loss) (0.09)% (0.39)% (0.24)% (1.04)%
=============================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges.
Total return would be reduced if sales charges were taken into account.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than one cent per share.
** Annualized.
The accompanying notes are an integral part of these financial statements.
28 Pioneer International Value Fund | Semiannual Report | 5/31/09
Six Months
Ended
5/31/09 Year Ended
(unaudited) 11/30/08
Class C
Net asset value, beginning of period $ 12.64 $ 25.28
- -------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.08 $ 0.08
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 2.14 (12.62)
- -------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.22 $ (12.54)
Distributions to shareowners:
Net investment income -- (0.10)
- -------------------------------------------------------------------------------------------------
Redemption fee $ -- $ --
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.22 $ (12.64)
- -------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.86 $ 12.64
=================================================================================================
Total return* 17.56% (49.79)%
Ratio of net expenses to average net assets+ 2.60%** 2.57%
Ratio of net investment income (loss) to average net assets+ 1.11%** 0.22%
Portfolio turnover rate 43%** 135%
Net assets, end of period (in thousands) $ 5,747 $ 5,384
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 3.03%** 2.57%
Net investment income (loss) 0.68%** 0.22%
Ratios with waiver of fees and assumption of expenses by the Adviser
and reduction for fees paid indirectly:
Net expenses 2.60%** 2.56%
Net investment income (loss) 1.11%** 0.23%
=================================================================================================
Year Ended Year Ended Year Ended Year Ended
11/30/07 11/30/06 11/30/05 11/30/04
Class C
Net asset value, beginning of period $ 21.64 $ 17.30 $ 15.32 $ 12.71
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ (0.06) $ (0.04) $ (0.12)
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 3.65 4.40 2.02 2.73
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.64 $ 4.34 $ 1.98 $ 2.61
Distributions to shareowners:
Net investment income -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Redemption fee $ -- $ --(a) $ --(a) $ --
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.64 $ 4.34 $ 1.98 $ 2.61
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 25.28 $ 21.64 $ 17.30 $ 15.32
=============================================================================================================================
Total return* 16.82% 25.09% 12.92% 20.54%
Ratio of net expenses to average net assets+ 2.45% 2.54% 2.57% 3.12%
Ratio of net investment income (loss) to average net assets+ 0.00%(b) (0.35)% (0.26)% (1.00)%
Portfolio turnover rate 81% 98% 111% 122%
Net assets, end of period (in thousands) $ 16,486 $ 11,030 $ 8,826 $ 6,872
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 2.45% 2.54% 2.79% 3.12%
Net investment income (loss) 0.00%(b) (0.35)% (0.48)% (1.00)%
Ratios with waiver of fees and assumption of expenses by the Adviser
and reduction for fees paid indirectly:
Net expenses 2.44% 2.54% 2.57% 3.12%
Net investment income (loss) 0.01% (0.33)% (0.26)% (1.00)%
=============================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges.
Total return would be reduced if sales charges were taken into account.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than one cent per share.
(b) Amount rounds to less than 0.01%.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/09 29
Financial Highlights (continued)
4/16/09 (a)
to
5/31/09
(unaudited)
Class Y
Net asset value, beginning of period $ 14.11
- -----------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.11
Net realized and unrealized gain on investments and foreign
currency transactions 2.35
- -----------------------------------------------------------------------------------
Net increase from investment operations $ 2.46
Distributions to shareowners:
Net investment income --
- -----------------------------------------------------------------------------------
Net increase in net asset value $ 2.46
- -----------------------------------------------------------------------------------
Net asset value, end of period $ 16.57
===================================================================================
Total return* 19.04%(b)
Ratio of net expenses to average net assets+ 1.12%**
Ratio of net investment income to average net assets+ 8.31%**
Portfolio turnover rate 43%**
Net assets, end of period (in thousands) $ 39,819
Ratios with no waiver of fees and assumption of expenses by the Adviser
and no reduction for fees paid indirectly:
Net expenses 1.12%**
Net investment income 8.31%**
Ratios with waiver of fees and assumption of expenses by the Adviser
and reduction for fees paid indirectly:
Net expenses 1.12%**
Net investment income 8.31%**
===================================================================================
(a) Class Y shares were first publicly offered on April 16, 2009.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
30 Pioneer International Value Fund | Semiannual Report | 5/31/09
Notes to Financial Statements | 5/31/09 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer International Value Fund (the Fund) is the sole portfolio comprising
Pioneer Series Trust VIII, 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 four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Class R shares were first publicly offered on April 1, 2003
and ceased operations on February 1, 2007. Class Y shares were first publicly
offered on April 16, 2009. Each class of shares represents an interest in the
same portfolio of investments of the Fund and has identical rights (based on
relative net asset values) to assets and liquidation proceeds. Share classes
can bear different class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of
different dividends by each class. The Amended and Restated Declaration of
Trust of the Fund gives the Board the flexibility to specify either per share
voting or dollar-weighted voting when submitting matters for shareholder
approval. Under per share voting, each share of a class of the Fund is entitled
to one vote. Under dollar-weighted voting, a shareholder's voting power is
determined not by the number of shares owned, but by the dollar value of the
shares on the record date. Share classes have exclusive voting rights with
respect to matters affecting only that class, including with respect to the
distribution plan for that class. There is no distribution plan for Class Y
shares. Class B shares convert to Class A shares eight years after the date of
purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting year. Actual results could differ from those estimates.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest a substantial amount of its assets in issuers located in a
limited number of countries and therefore is susceptible to adverse economic,
political or regulatory developments affecting those countries. At times, the
Fund's investments may represent industries or industry sectors that are
Pioneer International Value Fund | Semiannual Report | 5/31/09 31
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 unaudited information regarding
the Fund's principal risks. Please refer to those documents when considering
the Fund's principal 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:
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 prices and/or quotations are not readily
available are valued using fair value methods pursuant to procedures adopted
by the Board of Trustees ("management appraised").
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 May 31, 2009 there were no securities that were
management appraised. 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. Interest income is recorded on the accrual
basis. Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes and
are reported net of foreign taxes on capital gains at the applicable country
rates.
32 Pioneer International Value Fund | Semiannual Report | 5/31/09
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollars actually received. Further, the
effects of changes in foreign currency exchange rates on investments are not
segregated in the Statement of Operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date 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. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During
the year ended November 30, 2008, the Fund paid no 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 taxes for 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
Pioneer International Value Fund | Semiannual Report | 5/31/09 33
other such factors. As of November 30, 2008, the Fund had $2,314 in tax
reserves 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 source 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.
The tax character of current year distributions paid will be determined at
the end of the current taxable year. The tax character of distributions paid
during the year ended November 30, 2008 was as follows:
2008
Distributions paid from:
Ordinary income $1,012,841
-----------------------------------------------------------------------------
Total $1,012,841
=============================================================================
The following shows the components of accumulated losses on a federal income
tax basis at November 30, 2008:
2008
Distributable earnings:
Undistributed ordinary income $ 496,430
Capital loss carryforward (24,861,512)
Post-October loss deferred (2,013,491)
Unrealized depreciation (30,352,463)
-----------------------------------------------------------------------------
Total $ (56,731,036)
=============================================================================
The difference between book-basis and tax-basis unrealized depreciation is
attributable to the tax deferral of losses on wash sales.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit),
earned approximately $3,613 in underwriting commissions on the sale of
Class A shares during the six months ended May 31, 2009.
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.
34 Pioneer International Value Fund | Semiannual Report | 5/31/09
Distribution fees are calculated based on the average daily net assets
attributable to Class A, Class B and Class C shares of the Fund, respectively
(see Note 4). Class Y shares are not subject to a distribution plan.
Shareowners of each class participate in 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 and at the same time except that Class A, Class
B, Class C and Class Y shares can bear different transfer agent and
distribution expense rates.
G. Security Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a securities loan transaction,
the Fund typically receives cash collateral from the borrower equal to at
least the value of the securities loaned, which is invested in temporary cash
investments. Credit Suisse, New York Branch, as the Fund's securities lending
agent, manages the Fund's securities lending collateral. The income earned on
the investment of collateral is shared with the borrower and the lending
agent in payment of any rebate due to the borrower with respect to the
securities loan, and in compensation for the lending agent's services to the
Fund. The Fund also continues to receive payments in lieu of dividends and
interest 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 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 agreement, to terminate the loan and recover
the securities from the borrower with prior notice. The Fund will be required
to return the cash collateral to the borrower and could suffer a loss if the
value of the collateral, as invested, has declined.
H. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be at least equal to or in excess of the value of the repurchase
agreement. The collateral for all repurchase agreements is held in
safekeeping in the customer-only account of the Fund's custodian or
subcustodians. The Fund's investment adviser, Pioneer Investment Management,
Inc. (PIM), is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
Pioneer International Value Fund | Semiannual Report | 5/31/09 35
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.85% of
the Fund's average net assets up to $500 million and 0.75% of the excess over
$500 million. For the six months ended May 31, 2009, the effective management
fee (net of waivers and/or assumptions of expense) was equivalent to 0.65% of
the Fund's average net assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit
the Fund's expenses to 1.70%, 2.60% and 2.60%, of the average daily net assets
attributable to Class A, Class B and Class C shares, respectively. These
expense limitations are in effect through April 1, 2012 for Class A and through
April 1, 2010 for Class B and Class C shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. Included in "Due to affiliates" reflected on
the Statement of Assets and Liabilities is $8,000 in management fees,
administrative costs and certain other fees payable to PIM at May 31, 2009.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimbursed PIMSS for out-of-pocket expenses related to
shareholder communications activities such as proxy and statement mailings,
outgoing phone calls and omnibus relationship contracts. For the six months
ended May 31, 2009, such out of pocket expenses by class of shares were as
follows:
Shareholder Communications:
Class A $ 97,006
Class B 2,769
Class C 4,034
- --------------------------------------------------------------------------------
Total $103,809
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $4,551 in transfer agent fees and shareholder communications
expense payable to PIMSS at May 31, 2009.
4. Distribution and Service Plans
The Fund adopted a Distribution Plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940 with respect to its Class A, Class B and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services
36 Pioneer International Value Fund | Semiannual Report | 5/31/09
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund pays PFD 1.00% of the average
daily net assets attributable to Class B and Class C shares. The fee for Class B
and Class C shares consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance services
or distribution services with regard to Class B and Class C shares. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$2,140 in distribution fees payable to PFD at May 31, 2009.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within 18 months of
purchase (within 12 months for purchases made on or after April 1, 2009). Class
B shares redeemed within five years of purchase are subject to a CDSC at
declining rates beginning at 4.00%, based on the lower of cost or market value
of shares being redeemed. Shares purchased as part of an exchange or acquired
as a result of a reorganization of another fund into the Fund remain subject to
any contingent deferred sales charge that applied to the shares you originally
purchased. Redemptions of Class C shares within one year of purchase are
subject to a CDSC of 1.00%, based on the lower of cost or market value of
shares being redeemed. Proceeds from the CDSCs are paid to PFD. For the six
months ended May 31, 2009, CDSCs in the amount of $6,020 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses, due to interest earned
on cash held by PIMSS. For the six months ended May 31, 2008, the Fund's
expenses were reduced by $238 under such arrangements.
6. Forward Foreign Currency Contracts
During the six months ended May 31, 2009, 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 or take 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. The average number of contracts open during the six
months ended May 31, 2009 was 699,827. At May 31, 2009, the Fund had no
outstanding portfolio hedges or forward currency settlement contracts.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a $165 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 $165 million or the limits
set
Pioneer International Value Fund | Semiannual Report | 5/31/09 37
for borrowing by the Fund's prospectus and the 1940 Act. Interest on collective
borrowings is payable as follows: if the London Interbank Offered Rate (LIBOR)
on the related borrowing date is greater than or equal to the Federal Funds
Rate on such date, the loan bears interest at the LIBOR rate plus 1.25% on an
annualized basis, or if the LIBOR rate on the related borrowing date is less
than the Federal Funds Rate on such date, the loan bears interest at the
Federal Funds Rate plus 1.25% on an annualized basis. The Funds pay an annual
commitment fee for this facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the six months ended May 31, 2009, the Fund had no borrowings
under this agreement.
8. Additional Disclosures about Derivative Instruments and Hedging
Activities
The effect of derivative instruments on the Statement of Operations for the six
months ended May 31, 2009 was as follows:
Derivatives Not
Accounted for as Location of Gain Realized Gain or
Hedging Instruments or (Loss) On Derivatives (Loss) on Derivatives
Under Statement 133 Recognized in Income Recognized in Income
Foreign Exchange Contracts Net realized gain on $168,108
forward foreign currency
contracts and other assets
and liabilities denominated in
foreign currencies
38 Pioneer International Value Fund | Semiannual Report | 5/31/09
Trustees, Officers and Service Providers
Trustees
John F. Cogan, Jr., Chairman
David R. Bock
Mary K. Bush
Benjamin M. Friedman
Margaret B.W. Graham
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
Officers
John F. Cogan, Jr., President
Daniel K. Kingsbury, Executive
Vice President
Mark E. Bradley, Treasurer
Dorothy E. Bourassa, Secretary
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the 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 pioneerinvestments.com. This information is also available on
the Securities and Exchange Commission's web site at http://www.sec.gov.
Pioneer International Value Fund | Semiannual Report | 5/31/09 39
This page for your notes.
40 Pioneer International Value Fund | Semiannual Report | 5/31/09
This page for your notes.
Pioneer International Value Fund | Semiannual Report | 5/31/09 41
This page for your notes.
42 Pioneer International Value Fund | Semiannual Report | 5/31/09
This page for your notes.
Pioneer International Value Fund | Semiannual Report | 5/31/09 43
This page for your notes.
44 Pioneer International Value Fund | Semiannual Report | 5/31/09
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
- --------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
- --------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
This report must be accompanied by a prospectus.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
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) International Value Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date July 29, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date July 29, 2009
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date July 29, 2009
* Print the name and title of each signing officer under his or her signature.