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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 Series Trust VIII
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2012 through November 30, 2013
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer International
Value Fund
--------------------------------------------------------------------------------
Annual Report | November 30, 2013
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIIFX
Class B PBIFX
Class C PCITX
Class Y INVYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 25
Notes to Financial Statements 33
Report of Independent Registered Public Accounting Firm 44
Approval of Investment Advisory Agreement 46
Trustees, Officers and Service Providers 51
Pioneer International Value Fund | Annual Report | 11/30/13 1
President's Letter
Dear Shareowner,
When we look at the U.S. economy heading into 2014, we continue to see slow, but
steady, growth. Employment has also been rising steadily, but only modestly.
Consumer incomes, savings, wealth, and debt-servicing capacity have been solid
buttresses for the recovering housing and auto industries. Industrial activity
is growing only modestly, but current corporate profits are generally solid and
balance sheets appear able to support needed capital spending and dividend*
payouts. The scaled-back "fiscal cliff" tax increases and spending cuts have
meaningfully cut the budget deficit without driving the economy into recession.
In addition, we feel that continuing slack in labor markets and capacity
utilization offers the potential for continuing growth without bottlenecks and
rising inflation.
After observing the strengthening economic trends, the Federal Reserve (the Fed)
hinted that it might begin scaling back its "QE" quantitative easing program
later in 2013 and could terminate its bond purchases altogether sometime in
2014. In September, however, the Fed surprised many market participants by
deciding not to start scaling back QE yet, but announced later in the year that
it would, in fact, begin tapering QE. The Fed has also said that short-term
interest rates are likely to remain near zero for some time to come, given that
inflation remains subdued and unemployment remains too high.
The U.S. government's partial shutdown in October rattled the markets to a
degree, but did not immediately have a significant negative impact on the
economy or capital markets. As the year drew to a close, leaders in Washington
reached a bipartisan budget agreement that establishes top-line government
spending levels for the next two fiscal years, a move which should help to
diffuse the threat of another shutdown. That certainly was welcome news for
investors who had grown weary of the uncertainty caused by the constant,
politically motived bickering over the nation's fiscal policies.
There are certainly risks and uncertainties that continue to plague the global
economy as we head into the new year. The European economy remains weak, though
it is beginning to show signs of stabilization, and a number of countries in the
emerging markets have experienced difficulties. Still, a potential ending of the
European recession, continuing economic improvement in Japan in response to the
new government's easing policies, and a "soft landing" of 7% growth in China
could very well result in an improving global outlook in 2014.
* Dividends are not guaranteed.
2 Pioneer International Value Fund | Annual Report | 11/30/13
There are also geopolitical worries abroad and the aforementioned political
fights at home, and while most of the widely recognized risks we've outlined may
already be "priced into" the market, we believe investors should continue to
expect market volatility.
The Fed's aggressive monetary policies and fears about economic growth had
helped drive long-term Treasury yields to unsustainably low levels; the return
to more normal levels has resulted in disappointing returns for bond investors
during much of 2013, but the stock market has delivered double-digit returns to
equity investors who were willing to brave the "wall of worry".
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in global equity and bond markets, using in-depth research to identify
undervalued individual securities, and using thoughtful risk management to
construct portfolios which seek to balance potential risks and reward in an
ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we 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 shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. 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 | Annual Report | 11/30/13 3
Portfolio Management Discussion | 11/30/13
In the follow interview, Madelynn Matlock discusses the market environment for
international equities and the factors that influenced the performance of
Pioneer International Value Fund during the 12-month period ended November 30,
2013. Ms. Matlock, a senior vice president and portfolio manager at Pioneer,
Marco Pirondini, Head of Equities, U.S., and a portfolio manager at Pioneer, and
Andrea Salvatore, Head of Global Emerging Markets & Latin American Equities and
a portfolio manager based in Pioneer's London office, are responsible for the
day-to-day management of the Fund.
Q International stocks rallied considerably during the reporting period. What
factors contributed to the strong performance of the asset class during the
12-month period ended November 30, 2013?
A International equities posted strong gains during the period, helped in
large measure by accommodative central bank policies around the globe that
injected massive amounts of liquidity into the capital markets. Further
stabilization of the European sovereign-debt situation and new leadership in
Japan committed to pro-growth reforms also contributed to positive investor
sentiment. Consequently, international stocks staged a solid rally across a
range of sectors, countries, and higher-risk investments during the 12-month
period.
Q How did the Fund perform in that environment during the 12-month period
ended November 30, 2013?
A Pioneer International Value Fund's Class A shares returned 22.50% at net
asset value during the 12-month period ended November 30, 2013, while the
Fund's benchmark, the Morgan Stanley Capital International (MSCI) Europe,
Australasia, Far East (EAFE) ND Index(1) (the MSCI EAFE Index), returned
24.84%. During the same period, the average return of the 361 mutual funds
in Lipper's International Multi-Cap Core Funds category was 22.18%, and the
average return of the 780 mutual funds in Morningstar's Foreign Large Blend
Funds category was 21.69%.
(1) The MSCI information may only be used for your internal use, may not be
reproduced or redisseminated in any form and may not be used as a basis for
or a component of any financial instruments or products or indices. None of
the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an "as
is" basis and the user of this information assumes the entire risk of any
use made of this information. MSCI, each of its affiliates and each other
person involved in or related to compiling, computing or creating any MSCI
information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer International Value Fund | Annual Report | 11/30/13
Q What were the main reasons for the Fund's underperformance relative to the
benchmark MSCI EAFE Index during the 12-month period ended November 30,
2013?
A The Fund's underperformance relative to the MSCI EAFE Index during the
12-month period was attributable to stock selection. Not investing in
Softbank, a Japanese telecommunications and Internet company, was one
investment decision, in particular, that hurt the Fund's relative
performance.
Softbank has various partnerships with foreign subsidiaries of major
Internet and telecom companies in Japan and the U.S., such as Yahoo Japan
and Sprint. During the 12-month period, Softbank's stock price advanced on
news of its purchase of Sprint. In addition, the company is a major investor
in AliBaba, the privately held Chinese web-commerce company which explored
making an initial public offering over the past several months of the
period. Our decision not to invest the Fund's portfolio in Softbank was
based on our belief that the stock was overvalued. That decision, however,
turned out to be a drag on the Fund's benchmark-relative performance.
Other individual portfolio holdings that detracted from the Fund's
benchmark-relative results during the period included Saipem, the Italian
oil services company, which turned in disappointing results. The company's
announcement of new earnings guidance reflected lower expectations for 2013
given escalating commercial difficulties in Algeria and operational and
technical issues in Canada and Mexico. In addition, the portfolio's holding
of Samsung Electronics (Korea) hurt performance as the company lost market
share due to a devaluation of the Japanese yen, which made Japanese products
more attractive on a pricing basis. Consequently, Samsung's profitability
suffered. Both Saipem and Samsung were sold from the portfolio during the
second half of the 12-month period.
Q Which of your investment strategies or individual Fund holdings aided
benchmark-relative performance during the 12-month period ended November 30,
2013?
A Early in the reporting period, we increased the Fund's exposure to Japan,
since our outlook for growth in that country improved with the election of
Prime Minister Shinzo Abe in November 2012. The decision proved
Pioneer International Value Fund | Annual Report | 11/30/13 5
rewarding, as Japanese equities were the top performers during the
12-month period ended November 30, 2013, and the Fund's investments
there were a considerable performance driver.
New economic reforms aimed at spurring both consumers and businesses to
spend, and at helping the country move out of its multi-year disinflationary
cycle were warmly received by investors. The prime minister appointed a new
governor of the Bank of Japan, who immediately took steps to ease monetary
policy in order to stimulate growth, which ultimately, as we noted
previously, produced a major devaluation of the yen. A weaker yen relative
to other currencies helps to make Japanese products more affordable in
foreign markets, thus increasing business for Japanese exporters.
We took a two-pronged approach to investing the Fund's assets in Japan.
First, we invested in Japanese export companies that derive a large
percentage of their sales and corporate profits from outside of Japan as
well as businesses that seemed poised to become more competitive because of
the declining yen. Two of the Fund's holdings -- Daikin Industries, a global
leader in air conditioning systems, and Bridgestone, the world's largest
tire and rubber company -- benefited from the weaker yen and stronger sales
in foreign markets. Second, since we anticipated that the country's
pro-growth policies would push interest rates down and lead investors to
sell their yen positions, we hedged a portion of the Fund's Japanese
holdings from a declining yen in an attempt to protect those gains when they
are converted back into the relatively stronger U.S. dollar. We accomplished
the hedging of the yen by selling a portion of the portfolio's
yen-denominated exposures forward by two or three months to offset the
effects of any decline in the yen's value. The strategy was applied
intermittently throughout the Fund's fiscal year depending on market
conditions.
Other factors that had a positive effect on the Fund's relative performance
during the period included our decision to increase the portfolio's exposure
to the European Union (EU), which was done early in the period in order to
bring the weighting more in line with the MSCI EAFE Index. While the region
still faces challenges, we are feeling increasingly reassured about the
survival of the EU as both a political and economic union, given efforts by
the European Central Bank (ECB) to help address the problems of its
struggling member nations in recent years.
6 Pioneer International Value Fund | Annual Report | 11/30/13
We also focused on a handful of stocks in the financials sector that we
considered to be undervalued. Many of the newer portfolio holdings in the
sector proved to be top contributors to the Fund's relative performance
during the 12-month period, including the insurance and investment
management company AXA Group (France), and Banco Bilbao Vizcaya Argentaria
(Spain).
Finally, we reduced the total number of holdings in the portfolio during the
period. In today's complex investing environment, we think it will be more
effective to allocate the Fund's assets across a more limited number of
holdings in which we have strong convictions, rather than holding a larger
number of smaller positions. The Fund's above-benchmark weightings in
Allianz Global Investors (Luxembourg) and Sekisui Chemical (Japan) exemplify
this approach.
We also trimmed the portfolio's investments in the emerging markets early in
the 12-month period, which turned out to be advantageous given the U.S.
Federal Reserve's (the Fed's) hints this past May and June, and its
late-year confirmation that it would begin "tapering" the stimulus program
known as quantitative easing (QE) if economic conditions in the U.S.
continued to improve. For some time, the Fed's accommodative monetary policy
and other types of government-stimulated consumption around the world have
been driving investors into stocks and other "risk assets." Investments in
emerging economies, which are perceived as carrying more risk than developed
countries, rallied on the back of the stronger demand but fell prey in
recent months to investor concerns about the Fed's drawing down of QE. Thus,
our decision to trim the portfolio's exposure to the emerging markets asset
class was beneficial for relative performance.
Q What is your outlook for international stocks as we come to the end of 2013,
and how do you plan to invest the Fund's assets going forward?
A While the Fed will begin scaling back its stimulus program in January 2014,
we believe that the other major central banks -- the ECB, the Bank of
England, and the Bank of Japan -- will continue to inject liquidity, thus
helping to support asset prices and providing a floor for any slowing of
growth in those regions.
Pioneer International Value Fund | Annual Report | 11/30/13 7
European equities will need to see better corporate earnings growth in order
to continue rallying in 2014. Gross domestic product (GDP) forecasts in
Europe remain weak, at best, and so we plan to continue focusing on the
countries that appear to be, in our opinion, fairly immune to the region's
fiscal problems, such as Germany, the United Kingdom, and Switzerland. We
also expect to maintain a strong portfolio exposure to Japanese stocks, as
we believe many companies there are becoming more efficient and are making
more profitable use of their corporate assets. In fact, we believe the
potential of those companies is only just beginning to be realized.
From a sector-allocation perspective, health care, particularly in the
developed economies, will remain a focus for us, as aging populations should
help to keep demand for services strong. We also are seeing signs of
positive fundamentals in the industrials and information technology sectors,
where new technologies and products have been contributing to the organic
growth of many companies.
8 Pioneer International Value Fund | Annual Report | 11/30/13
Please refer to the Schedule of Investments on pages 18-24 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 within
a specific region, and is, therefore, more susceptible to adverse developments
affecting those regions.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise.
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.
These risks may increase share price volatility.
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 opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
Pioneer International Value Fund | Annual Report | 11/30/13 9
Portfolio Summary | 11/30/13
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 19.8%
Industrials 17.8%
Consumer Discretionary 12.8%
Consumer Staples 10.9%
Health Care 9.3%
Telecommunication Services 8.5%
Energy 6.3%
Information Technology 6.2%
Materials 5.6%
Utilities 2.8%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Japan 26.6%
United Kingdom 18.6%
Germany 10.4%
France 8.9%
Switzerland 8.7%
Netherlands 5.0%
Sweden 3.7%
Spain 2.9%
Ireland 2.5%
United States 2.1%
Hong Kong 2.0%
Italy 1.6%
Taiwan, Province Of China 1.3%
China 1.2%
Singapore 1.1%
Other (individually less than 1%) 3.4%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. Vodafone Group Plc (A.D.R.) 2.92%
--------------------------------------------------------------------------------
2. AstraZeneca Plc 2.12
--------------------------------------------------------------------------------
3. Novartis AG 2.10
--------------------------------------------------------------------------------
4. Vodafone Group Plc 1.98
--------------------------------------------------------------------------------
5. Murata Manufacturing Co., Ltd. 1.92
--------------------------------------------------------------------------------
6. Hitachi, Ltd. 1.92
--------------------------------------------------------------------------------
7. Sekisui Chemical Co, Ltd. 1.83
--------------------------------------------------------------------------------
8. Koninklijke Philips NV 1.79
--------------------------------------------------------------------------------
9. Banco Bilbao Vizcaya Argentaria SA 1.78
--------------------------------------------------------------------------------
10. Sumitomo Mitsui Financial Group, Inc. 1.76
--------------------------------------------------------------------------------
* 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.
10 Pioneer International Value Fund | Annual Report | 11/30/13
Prices and Distributions | 11/30/13
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 11/30/13 11/30/12
--------------------------------------------------------------------------------
A $22.49 $18.67
--------------------------------------------------------------------------------
B $20.30 $16.85
--------------------------------------------------------------------------------
C $19.91 $16.57
--------------------------------------------------------------------------------
Y $22.56 $18.73
--------------------------------------------------------------------------------
Distributions per Share: 12/1/12-11/30/13
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3237 $ -- $ --
--------------------------------------------------------------------------------
B $0.1339 $ -- $ --
--------------------------------------------------------------------------------
C $0.1807 $ -- $ --
--------------------------------------------------------------------------------
Y $0.4076 $ -- $ --
--------------------------------------------------------------------------------
Index Definition
--------------------------------------------------------------------------------
The MSCI EAFE ND Index is an unmanaged, 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. It
is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 12-15.
Pioneer International Value Fund | Annual Report | 11/30/13 11
Performance Update | 11/30/13 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer International Value Fund at public
offering price during the periods shown, compared to that of the Morgan Stanley
Capital International (MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of November 30, 2013)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
10 Years 5.81% 5.18%
5 Years 10.95 9.65
1 Year 22.50 15.45
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.82% 1.45%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International
Value Fund MSCI EAFE ND Index
11/30/2003 $ 9,425 $ 10,000
11/30/2004 $ 11,511 $ 12,964
11/30/2005 $ 13,104 $ 14,064
11/30/2006 $ 16,521 $ 18,030
11/30/2007 $ 19,450 $ 21,149
11/30/2008 $ 9,855 $ 11,042
11/30/2009 $ 13,474 $ 15,206
11/30/2010 $ 13,212 $ 15,375
11/30/2011 $ 12,837 $ 14,742
11/30/2012 $ 13,527 $ 16,600
11/30/2013 $ 16,571 $ 20,723
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through April 1, 2015, 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.
12 Pioneer International Value Fund | Annual Report | 11/30/13
Performance Update | 11/30/13 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class B shares of Pioneer International Value Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of November 30, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 4.82% 4.82%
5 Years 9.98 9.98
1 Year 21.40 17.40
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
3.24% 2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International
Value Fund MSCI EAFE ND Index
11/30/2003 $ 10,000 $ 10,000
11/30/2004 $ 12,045 $ 12,964
11/30/2005 $ 13,600 $ 14,064
11/30/2006 $ 16,998 $ 18,030
11/30/2007 $ 19,829 $ 21,149
11/30/2008 $ 9,955 $ 11,042
11/30/2009 $ 13,494 $ 15,206
11/30/2010 $ 13,112 $ 15,375
11/30/2011 $ 12,622 $ 14,742
11/30/2012 $ 13,193 $ 16,600
11/30/2013 $ 16,017 $ 20,723
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"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). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
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 April 1, 2015, 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 taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
Pioneer International Value Fund | Annual Report | 11/30/13 13
Performance Update | 11/30/13 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer International Value Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of November 30, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 4.85% 4.85%
5 Years 9.97 9.97
1 Year 21.43 21.43
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2013)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.63% 2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International
Value Fund MSCI EAFE ND Index
11/30/2003 $ 10,000 $ 10,000
11/30/2004 $ 12,054 $ 12,964
11/30/2005 $ 13,611 $ 14,064
11/30/2006 $ 17,026 $ 18,030
11/30/2007 $ 19,890 $ 21,149
11/30/2008 $ 9,986 $ 11,042
11/30/2009 $ 13,525 $ 15,206
11/30/2010 $ 13,146 $ 15,375
11/30/2011 $ 12,659 $ 14,742
11/30/2012 $ 13,226 $ 16,600
11/30/2013 $ 16,060 $ 20,723
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). 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 April 1, 2015, 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.
14 Pioneer International Value Fund | Annual Report | 11/30/13
Performance Update | 11/30/13 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer International Value Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of November 30, 2013)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 6.02% 6.02%
5 Years 11.40 11.40
1 Year 23.02 23.02
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2013)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.01%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer International
Value Fund MSCI EAFE ND Index
11/30/2003 $ 5,000,000 $ 5,000,000
11/30/2004 $ 6,107,872 $ 6,482,069
11/30/2005 $ 6,953,353 $ 7,032,218
11/30/2006 $ 8,766,355 $ 9,014,971
11/30/2007 $ 10,320,639 $ 10,574,533
11/30/2008 $ 5,229,358 $ 5,520,781
11/30/2009 $ 7,172,062 $ 7,602,957
11/30/2010 $ 7,063,562 $ 7,687,663
11/30/2011 $ 6,894,437 $ 7,371,103
11/30/2012 $ 7,293,640 $ 8,300,231
11/30/2013 $ 8,972,653 $ 10,361,606
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted. The performance data quoted represents past
performance, which is no guarantee of future results.
Investment return and principal value will fluctuate, and shares, when redeemed,
may be worth more or less than their original cost.
Class Y shares were first publicly offered on April 16, 2009. Performance shown
for periods prior to the inception of Class Y shares on April 16, 2009, 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. For the period beginning
April 16, 2009, the actual performance of Class Y shares is reflected. 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.
Pioneer International Value Fund | Annual Report | 11/30/13 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer International Value Fund
Based on actual returns from June 1, 2013 through November 30, 2013.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 6/1/13
--------------------------------------------------------------------------------
Ending Account $1,090.15 $1,085.58 $1,085.55 $1,092.54
Value (after expenses)
on 11/30/13
--------------------------------------------------------------------------------
Expenses Paid $ 7.60 $ 12.29 $ 12.29 $ 5.46
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.45%,
2.35%, 2.35% and 1.04% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 183/365 (to reflect the one-half year period).
16 Pioneer International Value Fund | Annual Report | 11/30/13
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 June 1, 2013 through November 30, 2013.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 6/1/13
--------------------------------------------------------------------------------
Ending Account $1,017.80 $1,013.29 $1,013.29 $1,019.85
Value (after expenses)
on 11/30/13
--------------------------------------------------------------------------------
Expenses Paid $ 7.33 $ 11.86 $ 11.86 $ 5.27
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.45%,
2.35%, 2.35% and 1.04% for Class A, Class B, Class C and Class Y shares,
respectively, multiplied by the average account value over the period,
multiplied by 183/365 (to reflect the one-half year period).
Pioneer International Value Fund | Annual Report | 11/30/13 17
Schedule of Investments | 11/30/13
---------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------
COMMON STOCKS -- 95.6%
ENERGY -- 6.1%
Integrated Oil & Gas -- 3.7%
268,400 BG Group Plc $ 5,471,048
68,300 Eni S.p.A. 1,642,160
79,500 Total SA 4,810,112
-------------
$ 11,923,320
---------------------------------------------------------------------------------
Oil & Gas Exploration
& Production -- 2.4%
1,904,300 CNOOC, Ltd. $ 3,898,394
69,200 Gulfport Energy Corp.* 4,043,356
-------------
$ 7,941,750
-------------
Total Energy $ 19,865,070
---------------------------------------------------------------------------------
MATERIALS -- 5.5%
Commodity Chemicals -- 1.6%
408,300 Kuraray Co., Ltd. $ 5,081,166
---------------------------------------------------------------------------------
Diversified Chemicals -- 2.5%
46,300 BASF SE $ 4,941,994
1,430,400 Incitec Pivot, Ltd. 3,375,416
-------------
$ 8,317,410
---------------------------------------------------------------------------------
Fertilizers & Agricultural
Chemicals -- 1.4%
11,400 Syngenta AG $ 4,467,651
-------------
Total Materials $ 17,866,227
---------------------------------------------------------------------------------
CAPITAL GOODS -- 16.2%
Aerospace & Defense -- 1.2%
195,800 Rolls-Royce Holdings Plc $ 3,947,998
16,838,800 Rolls-Royce Holdings Plc* 27,555
-------------
$ 3,975,553
---------------------------------------------------------------------------------
Building Products -- 1.4%
71,500 Daikin Industries, Ltd. $ 4,528,609
---------------------------------------------------------------------------------
Electrical Components
& Equipment -- 3.0%
819,100 Hitachi, Ltd. $ 6,026,582
63,160 OSRAM Licht AG* 3,734,493
-------------
$ 9,761,075
---------------------------------------------------------------------------------
Heavy Electrical Equipment -- 1.6%
203,100 ABB, Ltd. $ 5,191,590
---------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer International Value Fund | Annual Report | 11/30/13
---------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------
Industrial Conglomerates -- 3.6%
390,700 Keppel Corp., Ltd. $ 3,523,242
157,800 Koninklijke Philips NV 5,632,220
20,300 Siemens AG 2,681,078
-------------
$ 11,836,540
---------------------------------------------------------------------------------
Construction & Farm Machinery
& Heavy Trucks -- 1.2%
90,600 Komatsu, Ltd. $ 1,886,715
115,000 Kubota Corp. 1,970,076
-------------
$ 3,856,791
---------------------------------------------------------------------------------
Industrial Machinery -- 2.9%
112,500 GEA Group AG $ 5,240,152
80,600 Makita Corp. 4,027,682
-------------
$ 9,267,834
---------------------------------------------------------------------------------
Trading Companies &
Distributors -- 1.3%
327,100 ITOCHU Corp. $ 4,131,785
-------------
Total Capital Goods $ 52,549,777
---------------------------------------------------------------------------------
COMMERCIAL SERVICES
& SUPPLIES -- 1.1%
Security & Alarm Services -- 1.1%
575,100 Prosegur Cia de Seguridad SA $ 3,648,051
-------------
Total Commercial Services & Supplies $ 3,648,051
---------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 6.2%
Auto Parts & Equipment -- 0.7%
402,900 GKN Plc $ 2,498,530
---------------------------------------------------------------------------------
Tires & Rubber -- 3.2%
134,800 Bridgestone Corp. $ 4,943,580
50,000 Cie Generale des Etablissements Michelin 5,414,777
-------------
$ 10,358,357
---------------------------------------------------------------------------------
Automobile Manufacturers -- 2.3%
50,800 Daimler AG $ 4,208,004
75,400 Honda Motor Co., Ltd. 3,192,578
-------------
$ 7,400,582
-------------
Total Automobiles & Components $ 20,257,469
---------------------------------------------------------------------------------
CONSUMER DURABLES &
APPAREL -- 4.5%
Homebuilding -- 2.3%
489,200 Sekisui Chemical Co., Ltd. $ 5,742,034
120,800 West Holdings Corp. 1,707,657
-------------
$ 7,449,691
---------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Annual Report | 11/30/13 19
Schedule of Investments | 11/30/13 (continued)
---------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------
Household Appliances -- 1.1%
152,500 Electrolux AB $ 3,704,810
---------------------------------------------------------------------------------
Apparel, Accessories & Luxury
Goods -- 1.1%
34,499 Cie Financiere Richemont SA $ 3,492,227
-------------
Total Consumer Durables & Apparel $ 14,646,728
---------------------------------------------------------------------------------
CONSUMER SERVICES -- 0.6%
Restaurants -- 0.6%
203,200 Domino's Pizza Group Plc $ 1,824,296
-------------
Total Consumer Services $ 1,824,296
---------------------------------------------------------------------------------
RETAILING -- 1.1%
Apparel Retail -- 1.1%
84,200 Hennes & Mauritz AB $ 3,563,717
-------------
Total Retailing $ 3,563,717
---------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 4.6%
Drug Retail -- 1.1%
79,300 Sundrug Co., Ltd. $ 3,576,372
---------------------------------------------------------------------------------
Food Retail -- 3.5%
31,500 Casino Guichard Perrachon SA $ 3,513,992
201,000 Koninklijke Ahold NV 3,658,129
719,100 Tesco Plc 4,093,448
-------------
$ 11,265,569
-------------
Total Food & Staples Retailing $ 14,841,941
---------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 3.5%
Distillers & Vintners -- 1.2%
125,600 Diageo Plc $ 4,003,369
---------------------------------------------------------------------------------
Packaged Foods & Meats -- 2.3%
63,800 Danone $ 4,624,710
45,400 Green Mountain Coffee Roasters, Inc.* 3,059,052
-------------
$ 7,683,762
-------------
Total Food, Beverage & Tobacco $ 11,687,131
---------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL
PRODUCTS -- 2.5%
Household Products -- 2.5%
45,700 Henkel AG & Co. KGaA $ 4,519,544
58,700 Unicharm Corp. 3,717,925
-------------
$ 8,237,469
-------------
Total Household & Personal Products $ 8,237,469
---------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer International Value Fund | Annual Report | 11/30/13
---------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT &
SERVICES -- 0.5%
Health Care Services -- 0.5%
12,400 Fresenius SE & Co. KGaA $ 1,754,828
-------------
Total Health Care Equipment
& Services $ 1,754,828
---------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY
& LIFE SCIENCES -- 8.5%
Pharmaceuticals -- 7.9%
116,000 AstraZeneca Plc $ 6,649,522
83,400 Novartis AG 6,580,026
18,906 Roche Holding AG 5,257,814
102,200 Shire Plc 4,631,046
60,600 Teva Pharmaceutical Industries,
Ltd. (A.D.R.) 2,470,056
-------------
$ 25,588,464
---------------------------------------------------------------------------------
Life Sciences Tools & Services -- 0.6%
29,600 Gerresheimer AG $ 1,994,899
-------------
Total Pharmaceuticals,
Biotechnology & Life Sciences $ 27,583,363
---------------------------------------------------------------------------------
BANKS -- 10.9%
Diversified Banks -- 10.9%
467,162 Banco Bilbao Vizcaya Argentaria SA $ 5,577,680
587,625 Barclays Plc 2,603,617
71,800 BNP Paribas SA 5,373,466
231,500 HSBC Holdings Plc 2,585,890
1,506,400 Intesa Sanpaolo S.p.A. 3,617,033
495,100 Mitsubishi UFJ Financial Group, Inc. 3,190,571
341,000 Nordea Bank AB 4,399,016
111,200 Standard Chartered Plc 2,634,629
111,700 Sumitomo Mitsui Financial Group, Inc. 5,533,621
-------------
$ 35,515,523
-------------
Total Banks $ 35,515,523
---------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 0.7%
Diversified Capital Markets -- 0.7%
79,905 Credit Suisse Group AG $ 2,370,132
-------------
Total Diversified Financials $ 2,370,132
---------------------------------------------------------------------------------
INSURANCE -- 4.5%
Insurance Brokers -- 0.8%
31,000 Aon Plc* $ 2,530,840
---------------------------------------------------------------------------------
Life & Health Insurance -- 1.2%
281,000 T&D Holdings, Inc. $ 3,721,658
---------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Annual Report | 11/30/13 21
Schedule of Investments | 11/30/13 (continued)
---------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------
Multi-line Insurance -- 2.5%
21,400 Allianz SE* $ 3,706,017
171,200 AXA SA 4,482,479
-------------
$ 8,188,496
-------------
Total Insurance $ 14,440,994
---------------------------------------------------------------------------------
REAL ESTATE -- 2.1%
Diversified REIT -- 1.1%
45,100 Wereldhave NV $ 3,440,810
---------------------------------------------------------------------------------
Diversified Real Estate Activities -- 1.0%
389,800 Wharf Holdings, Ltd. $ 3,239,944
-------------
Total Real Estate $ 6,680,754
---------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.2%
IT Consulting & Other Services -- 1.2%
857,000 Fujitsu, Ltd. $ 3,996,262
-------------
Total Software & Services $ 3,996,262
---------------------------------------------------------------------------------
TECHNOLOGY HARDWARE
& EQUIPMENT -- 3.5%
Electronic Components -- 3.5%
200,400 Hoya Corp. $ 5,413,770
70,000 Murata Manufacturing Co., Ltd. 6,030,853
-------------
$ 11,444,623
-------------
Total Technology Hardware & Equipment $ 11,444,623
---------------------------------------------------------------------------------
SEMICONDUCTORS &
SEMICONDUCTOR EQUIPMENT -- 1.3%
Semiconductors -- 1.3%
1,152,800 Taiwan Semiconductor
Manufacturing Co., Ltd. $ 4,082,662
-------------
Total Semiconductors &
Semiconductor Equipment $ 4,082,662
---------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 8.2%
Alternative Carriers -- 1.0%
76,000 Ziggo NV $ 3,251,141
---------------------------------------------------------------------------------
Integrated Telecommunication
Services -- 1.6%
106,400 Nippon Telegraph & Telephone Corp. $ 5,345,687
---------------------------------------------------------------------------------
Wireless Telecommunication
Services -- 5.6%
382,900 Advanced Info Service PCL $ 2,723,482
1,680,100 Vodafone Group Plc 6,228,775
247,100 Vodafone Group Plc (A.D.R.) 9,164,938
-------------
$ 18,117,195
-------------
Total Telecommunication Services $ 26,714,023
---------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer International Value Fund | Annual Report | 11/30/13
---------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------
UTILITIES -- 2.3%
Electric Utilities -- 1.3%
197,900 SSE Plc $ 4,296,906
---------------------------------------------------------------------------------
Water Utilities -- 1.0%
3,333,400 Guangdong Investment, Ltd. $ 3,081,955
-------------
Total Utilities $ 7,378,861
---------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $266,334,126) $ 310,949,901
---------------------------------------------------------------------------------
EXCHANGE TRADED FUND -- 1.0%
65,000 iShares Core MSCI Emerging Markets ETF* $ 3,272,750
---------------------------------------------------------------------------------
TOTAL EXCHANGE TRADED FUND
(Cost $3,311,126) $ 3,272,750
---------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 96.7%
(Cost $269,645,252) (a) $ 314,222,651
---------------------------------------------------------------------------------
WRITTEN PUT OPTION -- (0.1)%
(400) Green Mountain Coffee Roasters, Inc.,
12/21/13 at $72.50 $ (241,000)
---------------------------------------------------------------------------------
TOTAL WRITTEN PUT OPTION
(Premiums received $(245,400)) $ (241,000)
---------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 3.4% $ 11,077,591
---------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 325,059,242
=================================================================================
(A.D.R.) American Depositary Receipt
REIT Real Estate Investment Trust.
* Non-income producing security.
(a) At November 30, 2013, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $270,472,834 was as
follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost $ 48,467,604
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value (4,717,787)
-------------
Net unrealized appreciation $ 43,749,817
=============
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Annual Report | 11/30/13 23
Schedule of Investments | 11/30/13 (continued)
(b) Distributions of investments by country of issue (excluding temporary
cash investments) as a percentage of total investment in securities,
is as follows:
Japan 26.6%
United Kingdom 18.6
Germany 10.4
France 8.9
Switzerland 8.7
Netherlands 5.0
Sweden 3.7
Spain 2.9
Ireland 2.5
United States 2.1
Hong Kong 2.0
Italy 1.6
Taiwan, Province Of China 1.3
China 1.2
Singapore 1.1
Other (individually less than 1%) 3.4%
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for the
year ended November 30, 2013 aggregated $314,735,845 and $363,046,499
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (Including quoted prices
for similar securities, interest rates, prepayment speeds,
credit risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (Including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services) are categorized as
Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of November 30, 2013, in
valuing the Fund's investments:
-------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------------
Common Stocks (U.S.) $ 18,737,403 $ -- $ -- $ 18,737,403
Common Stocks (Foreign)* 2,558,295 289,654,103 -- 292,212,398
Exchange Traded Fund 3,272,750 -- -- 3,272,750
-------------------------------------------------------------------------------------------
Total $ 24,327,548 $289,654,103 $ -- $314,222,651
===========================================================================================
Other Financial Instruments
Net unrealized depreciation
on forward foreign
currency contracts $ -- $ 817,429 $ -- $ 817,429
Written put option (241,000) -- -- (241,000)
-------------------------------------------------------------------------------------------
Total Other Financial
Instruments $ (241,000) $ 817,429 $ -- $ 576,429
-------------------------------------------------------------------------------------------
* Level 2 securities are valued by independent pricing services using fair value
factors.
During the year ended November 30, 2013, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
24 Pioneer International Value Fund | Annual Report | 11/30/13
Statement of Assets and Liabilities | 11/30/13
ASSETS:
Investment in securities (cost $269,645,252) $ 314,222,651
Cash 8,062,771
Foreign currencies, at value (cost $471,357) 471,380
Receivables --
Fund shares sold 564,150
Dividends and foreign taxes withheld 1,469,600
Interest 9,983
Net unrealized appreciation on forward foreign currency contracts 817,429
Prepaid expenses 34,370
----------------------------------------------------------------------------------------
Total assets $ 325,652,334
========================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 131,558
Dividends 10
Written options (premiums received $245,400) 241,000
Due to affiliates 97,312
Accrued expenses 123,212
----------------------------------------------------------------------------------------
Total liabilities $ 593,092
========================================================================================
NET ASSETS:
Paid-in capital $ 419,975,450
Undistributed net investment income 6,967,103
Accumulated net realized loss on investments and foreign
currency transactions (147,289,888)
Net unrealized appreciation on investments 44,577,399
Net unrealized appreciation on written options 4,400
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 824,778
----------------------------------------------------------------------------------------
Total net assets $ 325,059,242
========================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $86,602,299/3,850,252 shares) $ 22.49
Class B (based on $3,108,405/153,102 shares) $ 20.30
Class C (based on $10,825,665/543,803 shares) $ 19.91
Class Y (based on $224,522,873/9,950,742 shares) $ 22.56
MAXIMUM OFFERING PRICE:
Class A ($22.49 (divided by) 94.25%) $ 23.86
----------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Annual Report | 11/30/13 25
Statement of Operations
For the Year Ended 11/30/13
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $665,217) $ 8,801,239
Interest 70,602
----------------------------------------------------------------------------------------------
Total investment income $ 8,871,841
==============================================================================================
EXPENSES:
Management fees $ 2,773,261
Transfer agent fees and expenses
Class A 284,207
Class B 37,196
Class C 34,363
Class Y 1,185
Distribution fees
Class A 205,224
Class B 34,471
Class C 104,320
Shareholder communications expense 251,341
Administrative reimbursement 109,299
Custodian fees 79,041
Registration fees 72,916
Professional fees 84,880
Printing expense 25,301
Fees and expenses of nonaffiliated Trustees 9,269
Miscellaneous 39,040
----------------------------------------------------------------------------------------------
Total expenses $ 4,145,314
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (236,849)
==============================================================================================
Net expenses $ 3,908,465
----------------------------------------------------------------------------------------------
Net investment income $ 4,963,376
----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, WRITTEN
OPTIONS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 31,047,479
Written options 217,615
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 2,291,864 $33,556,958
----------------------------------------------------------------------------------------------
Change in net unrealized appreciation on:
Investments $ 28,008,886
Written options 4,400
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (77,083) $27,936,203
----------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $61,493,161
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $66,456,537
==============================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer International Value Fund | Annual Report | 11/30/13
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------
Year Ended Year Ended
11/30/13 11/30/12
----------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 4,963,376 $ 6,267,874
Net realized gain (loss) on investments, written options
and foreign currency transactions 33,556,958 (17,252,353)
Change in net unrealized appreciation (depreciation)
on investments, written options and foreign currency
transactions 27,936,203 25,349,945
----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 66,456,537 $ 14,365,466
----------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.32 and $0.26 per share, respectively) $ (1,303,856) $ (1,153,019)
Class B ($0.13 and $0.05 per share, respectively) (31,192) (16,573)
Class C ($0.18 and $0.11 per share, respectively) (106,135) (3,694,097)
Class Y ($0.41 and $0.35 per share, respectively) (4,720,129) (69,164)
----------------------------------------------------------------------------------------
Total distributions to shareowners $ (6,161,312) $ (4,932,853)
----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 25,441,277 $ 31,603,581
Reinvestment of distributions 4,183,759 1,186,965
Cost of shares repurchased (70,825,484) (21,649,744)
----------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ (41,200,448) $ 11,140,802
----------------------------------------------------------------------------------------
Net increase in net assets $ 19,094,777 $ 20,573,415
NET ASSETS:
Beginning of year 305,964,465 285,391,050
----------------------------------------------------------------------------------------
End of year $ 325,059,242 $305,964,465
----------------------------------------------------------------------------------------
Undistributed net investment income $ 6,967,103 $ 5,217,788
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Annual Report | 11/30/13 27
Statements of Changes in Net Assets (continued)
-----------------------------------------------------------------------------------------------
'13 Shares '13 Amount '12 Shares '12 Amount
-----------------------------------------------------------------------------------------------
Class A
Shares sold 403,715 $ 8,332,086 384,887 $ 7,279,520
Reinvestment of distributions 64,674 1,235,232 63,931 1,086,007
Less shares repurchased (677,810) (13,923,598) (812,504) (14,677,741)
-----------------------------------------------------------------------------------------------
Net decrease (209,421) $ (4,356,280) (363,686) $ (6,312,214)
===============================================================================================
Class B
Shares sold or exchanged 9,005 $ 172,833 10,253 $ 197,712
Reinvestment of distributions 1,756 30,472 1,037 16,029
Less shares repurchased (98,308) (1,818,162) (141,006) (2,460,510)
-----------------------------------------------------------------------------------------------
Net decrease (87,547) $ (1,614,857) (129,716) $ (2,246,769)
===============================================================================================
Class C
Shares sold 87,071 $ 1,610,139 91,403 $ 1,514,124
Reinvestment of distributions 5,859 99,898 4,303 65,386
Less shares repurchased (147,362) (2,701,419) (156,539) (2,525,626)
-----------------------------------------------------------------------------------------------
Net decrease (54,432) $ (991,382) (60,833) $ (946,116)
===============================================================================================
Class Y
Shares sold 745,049 $ 15,326,219 1,172,775 $ 22,612,225
Reinvestment of distributions 147,625 2,818,157 1,151 19,543
Less shares repurchased (2,484,552) (52,382,305) (110,613) (1,985,867)
-----------------------------------------------------------------------------------------------
Net increase
(decrease) (1,591,878) $ (34,237,929) 1,063,313 $ 20,645,901
===============================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer International Value Fund | Annual Report | 11/30/13
Financial Highlights
-------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/13 11/30/12 11/30/11 11/30/10 11/30/09
-------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 18.67 $ 17.99 $ 18.72 $ 19.16 $ 14.15
-------------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.27 $ 0.36 $ 0.37 $ 0.24 $ 0.14
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 3.87 0.58 (0.88) (0.61) 5.01
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.14 $ 0.94 $ (0.51) $ (0.37) $ 5.15
-------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.32) (0.26) (0.22) (0.07) (0.14)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.82 $ 0.68 $ (0.73) $ (0.44) $ 5.01
-------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 22.49 $ 18.67 $ 17.99 $ 18.72 $ 19.16
=========================================================================================================================
Total return* 22.50% 5.38% (2.84)% (1.94)% 36.72%
Ratio of net expenses to average net assets 1.45% 1.45% 1.45% 1.45% 1.52%
Ratio of net investment income to average net assets 1.26% 1.89% 1.80% 1.18% 0.97%
Portfolio turnover rate 101% 61% 66% 66% 54%
Net assets, end of period (in thousands) $86,602 $75,784 $79,559 $89,145 $106,263
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 1.69% 1.82% 1.77% 1.76% 2.10%
Net investment income 1.02% 1.53% 1.48% 0.86% 0.39%
=========================================================================================================================
* 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.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Annual Report | 11/30/13 29
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/13 11/30/12 11/30/11 11/30/10 11/30/09
-----------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $16.85 $16.17 $ 16.82 $ 17.31 $ 12.77
-----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.18 $ 0.30 $ 0.31 $ 0.09 $ (0.05)#
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 3.40 0.43 (0.94) (0.58) 4.59
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.58 $ 0.73 $ (0.63) $ (0.49) $ 4.54
-----------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.13) (0.05) (0.02) -- --
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.45 $ 0.68 $ (0.65) $ (0.49) $ 4.54
-----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $20.30 $16.85 $ 16.17 $ 16.82 $ 17.31
=======================================================================================================================
Total return* 21.40% 4.52% (3.74)% (2.83)% 35.55%
Ratio of net expenses to average net assets 2.35% 2.35% 2.35% 2.35% 2.40%
Ratio of net investment income (loss) to average net assets 0.35% 0.95% 0.85% 0.26% (0.06)%
Portfolio turnover rate 101% 61% 66% 66% 54%
Net assets, end of period (in thousands) $3,108 $4,054 $ 5,987 $ 9,790 $14,538
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 3.30% 3.24% 2.94% 2.88% 3.05%
Net investment income (loss) (0.60)% 0.06% 0.26% (0.27)% (0.71)%
=======================================================================================================================
* 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.
# The amount shown for a share outstanding does not correspond with the
aggregate gain on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
The accompanying notes are an integral part of these financial statements.
30 Pioneer International Value Fund | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/13 11/30/12 11/30/11 11/30/10 11/30/09
------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 16.57 $15.97 $ 16.64 $ 17.12 $ 12.64
------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.08 $ 0.18 $ 0.19 $ 0.06 $ (0.05)#
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 3.44 0.53 $ (0.80) $ (0.54) $ 4.53
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.52 $ 0.71 $ (0.61) $ (0.48) $ 4.48
------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.18) (0.11) (0.06) -- --
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.34 $ 0.60 $ (0.67) $ (0.48) $ 4.48
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 19.91 $16.57 $ 15.97 $ 16.64 $ 17.12
========================================================================================================================
Total return* 21.43% 4.48% (3.71)% (2.80)% 35.44%
Ratio of net expenses to average net assets 2.35% 2.35% 2.35% 2.35% 2.40%
Ratio of net investment income (loss) to average net assets 0.36% 0.99% 0.90% 0.26% (0.04)%
Portfolio turnover rate 101% 61% 66% 66% 54%
Net assets, end of period (in thousands) $10,826 $9,910 $10,523 $12,126 $14,839
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 2.41% 2.63% 2.52% 2.58% 2.74%
Net investment income (loss) 0.30% 0.71% 0.73% 0.02% (0.38)%
========================================================================================================================
* 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.
# The amount shown for a share outstanding does not correspond with the
aggregate gain on investments for the period due to the timing of sales and
repurchases of shares in relation to fluctuating market values of the
investments of the Fund.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Annual Report | 11/30/13 31
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------------
Year Year Year Year 4/16/09 (a)
Ended Ended Ended Ended to
11/30/13 11/30/12 11/30/11 11/30/10 11/30/09
-----------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 18.73 $ 18.07 $ 18.80 $ 19.22 $ 14.11
-----------------------------------------------------------------------------------------------------------------------
Increase from investment operations:
Net investment income $ 0.37 $ 0.41 $ 0.44 $ 0.30 $ 0.10
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 3.87 0.60 (0.87) (0.59) 5.01
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.24 $ 1.01 $ (0.43) $ (0.29) $ 5.11
-----------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.41) (0.35) (0.30) (0.13) --
-----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.83 $ 0.66 $ (0.73) $ (0.42) $ 5.11
-----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 22.56 $ 18.73 $ 18.07 $ 18.80 $ 19.22
=======================================================================================================================
Total return* 23.02% 5.79% (2.39)% (1.51)% 36.22%(b)
Ratio of net expenses to average net assets 1.04% 1.01% 1.01% 1.01% 1.01%**
Ratio of net investment income to average net assets 1.69% 2.35% 2.26% 1.63% 1.10%**
Portfolio turnover rate 101% 61% 66% 66% 54%(b)
Net assets, end of period (in thousands) $224,523 $216,217 $189,321 $195,147 $195,132
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 1.04% 1.01% 1.01% 1.01% 1.01%**
Net investment income 1.69% 2.35% 2.26% 1.63% 1.10%**
=======================================================================================================================
* 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.
(a) Class Y shares were first publicly offered on April 16, 2009.
(b) Not annualized.
** Annualized.
The accompanying notes are an integral part of these financial statements.
32 Pioneer International Value Fund | Annual Report | 11/30/13
Notes to Financial Statements | 11/30/13 (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. The Fund is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is long-term growth of
capital.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. The Fund had Class R shares that 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. Effective as of the close of business
on December 31, 2009, Class B shares are no longer offered to new or existing
shareholders, except that dividends and/or capital gain distributions may
continue to be reinvested in Class B shares, and shareholders may exchange their
Class B shares for Class B shares of other Pioneer funds, as permitted by
existing exchange privileges. Each class of shares represents an interest in the
same portfolio of investments of the Fund and has identical rights (based on
relative net asset values) to assets and liquidation proceeds. Share classes can
bear different rates of class-specific fees and expenses such as transfer agent
and distribution fees. Differences in class-specific fees and expenses will
result in differences in net investment income and, therefore, the payment of
different dividends from net investment income earned by each class. The Amended
and Restated Declaration of Trust of the Fund gives the Board the flexibility to
specify either per-share voting or dollar-weighted voting when submitting
matters for shareholder approval. Under per-share voting, each share of a class
of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares. Class B shares convert to Class A shares
approximately 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 period.
Actual results could differ from those estimates.
Pioneer International Value Fund | Annual Report | 11/30/13 33
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 that have traded on an exchange 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 available, generally are valued using the mean
between the last bid and asked prices. Short-term fixed income securities
with remaining maturities of sixty days or less generally are valued at
amortized cost. Shares of money market mutual funds are valued at such
funds' net asset value.
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
daily adjustments to the valuation of securities of non-U.S. issuers by
utilizing an independent pricing service that supplies an appropriate fair
value factor is appropriate for the Fund.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair value on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may include
credit ratings, the financial condition of the company, current market
conditions and comparable securities. The Fund may use fair value methods if
it is determined that a significant event has occurred after the close of
the exchange or market on which the security trades and prior to the
determination of the Fund's net asset value. Examples of a significant event
might include political or economic news, corporate restructurings, natural
disasters, terrorist activity or trading halts. Thus, the valuation of the
Fund's
34 Pioneer International Value Fund | Annual Report | 11/30/13
securities may differ significantly from exchange prices and such
differences could be material. PIM's fair valuation team is responsible for
monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
At November 30, 2013, there were no securities valued using fair value
methods (other than securities valued using prices supplied by independent
pricing services).
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund becomes aware of the ex-dividend data in
the exercise of reasonable diligence. Interest income, including interest on
income-bearing cash accounts, is recorded on the accrual basis. Dividend and
interest income are reported net of unrecoverable foreign taxes withheld at
the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the Statement of Operations from the
effects of changes in the market prices 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. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
are recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract 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).
Pioneer International Value Fund | Annual Report | 11/30/13 35
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 provision for federal income taxes is required.
As of November 30, 2013, the Fund did not accrue any interest and penalties
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
federal and state 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, 2013, the Fund paid no such taxes.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
November 30, 2013, the Fund reclassified $2,947,251 to increase
undistributed net investment income and $2,947,251 to increase accumulated
net realized loss on investments and foreign currency transactions to
reflect permanent book/tax differences. These adjustments have no impact on
net assets, or the results of operations.
During the year ended November 30, 2013, capital loss carryforward of
$30,094,381 was utilized to offset net realized gains by the Fund.
At November 30, 2013, the Fund had a net capital loss carryforward of
$146,690,135 of which the following amounts will expire between 2016 and
2017 if not utilized: $23,566,239 in 2016 and $123,123,896 in 2017.
The tax character of distributions paid during the years ended November 30,
2013 and November 30, 2012 were as follows:
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
Distribution paid from:
Ordinary income $6,161,312 $4,932,853
----------------------------------------------------------------------------
Total $6,161,312 $4,932,853
============================================================================
36 Pioneer International Value Fund | Annual Report | 11/30/13
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2013:
----------------------------------------------------------------------------
2013
----------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 8,012,270
Capital loss carryforward (146,690,135)
Unrealized appreciation 43,761,657
----------------------------------------------------------------------------
Total $ (94,916,208)
============================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales, the mark-to-
market of foreign currency contracts and adjustments relating to passive
foreign investment companies.
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 $13,950 in underwriting commissions on the sale of Class A shares
during the year ended November 30, 2013.
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 its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively (see Note 4). Class Y shares do not pay distribution fees. All
expenses and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time except that net
investment income dividends to Class A, Class B, Class C and Class Y shares
can reflect different transfer agent and distribution expense rates.
G. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. The Fund may invest a substantial amount of its assets
in issuers
Pioneer International Value Fund | Annual Report | 11/30/13 37
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 the Fund
more susceptible to any economic, political, or regulatory developments or
other risks affecting those industries and sectors. The Fund's prospectus
contains unaudited information regarding the Fund's principal risks. Please
refer to that document when considering the Fund's principal risks.
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 equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. PIM is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
I. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. Subsequent payments for futures contracts ("variation margin") are
paid or received by the Fund, depending on the daily fluctuation in the
value of the contracts, and are recorded by the Fund as unrealized gains or
losses. When the contract is closed, the Fund realizes a gain or loss equal
to the difference between the opening and closing value of the contract as
well as any fluctuation in foreign currency exchange rates where applicable.
The use of futures contracts involves, to varying degrees, elements of
market, interest rate, currency exchange rate and counterparty risks, which
may exceed the amounts recognized by the Fund. Changes in value of the
contracts may not directly correlate to the changes in value of the
underlying securities. During the year ended November 30, 2013 the Fund had
no outstanding futures contracts. There were no open futures contracts on
November 30, 2013.
38 Pioneer International Value Fund | Annual Report | 11/30/13
J. Option Writing
The Fund may write put and covered call options on portfolio securities in
order to attempt to hedge against changes in the value of portfolio
securities or to seek to increase total return. When an option is written,
the Fund receives a premium and becomes obligated to purchase or sell the
underlying security at a fixed price, upon the exercise of the option. When
the Fund writes an option, an amount equal to the premium received by the
Fund is recorded as a liability and is subsequently adjusted to the current
value of the option written. Premiums received from writing options that
expire unexercised are treated by the Fund on the expiration date as
realized gains from investments. The difference between the premium and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or, if the premium is less
than the amount paid for the closing purchase transaction, as a realized
loss. If a call option is exercised, the premium is added to the proceeds
from the sale of the underlying security in determining whether the Fund has
realized a gain or loss. The Fund as writer of an option bears the market
risk of an unfavorable change in the price of the security underlying the
written option.
The average value of contracts open during the year ended November 30, 2013
was $186,071. Written put option contracts outstanding at period end are
listed at the end of the Fund's schedule of investments.
The Fund held 400 written put option contracts that were open at November
30, 2013. If the put options were exercised at November 30, 2013, the
maximum amount the Fund would have been required to pay was $2,900,000.
Transactions in written put options for the year ended November 30, 2013 are
summarized as follows:
------------------------------------------------------------------------------------------
Number of Contracts Premiums Received
------------------------------------------------------------------------------------------
Options outstanding at beginning of period -- $ --
Options opened 800 513,307
Options exercised (400) (267,907)
Options closed -- --
Options expired -- --
------------------------------------------------------------------------------------------
Options outstanding at end of period 400 $ 245,400
==========================================================================================
K. Purchased Options
The Fund may purchase call and put options in order to attempt to hedge
against changes in the value of portfolio securities or to seek to increase
total return. Purchased call and put options entitle the Fund to buy and
sell a specified number of shares or units of a particular security,
currency or index at a specified price at a specific date or within a
specific period of time. Upon the purchase of a call or put option, the
premium paid by the Fund is
Pioneer International Value Fund | Annual Report | 11/30/13 39
included in the Statement of Assets and Liabilities as an investment. All
premiums are marked-to-market daily, and any unrealized gains or losses are
recorded in the Fund's financial statements. As the purchaser of an index
option, the Fund has the right to receive a cash payment equal to any
depreciation in the value of the index below the strike price of the option
(in the case of a put) or equal to any appreciation in the value of the
index over the strike price of the option (in the case of a call) as of the
valuation date of the option. Premiums paid for purchased calls and put
options which have expired are treated as realized losses on investments in
the Statement of Operations. Upon the exercise or closing of a purchased put
option, the premium is offset against the proceeds on the sale of the
underlying security or financial instrument in order to determine the
realized gain or loss on investments. Upon the exercise or closing of a
purchased call option, the premium is added to the cost of the security or
financial instrument. The risk associated with purchasing options is limited
to the premium originally paid. During the year ended November 30, 2013, the
Fund had no purchased options.
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 daily net assets up to $500 million and 0.75% of the excess
over $500 million. For the year ended November 30, 2013, the effective
management fee (excluding waivers and/or assumptions of expenses) was equivalent
to 0.85% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.45%, 2.35% and 2.35%, of the average daily
net assets attributable to Class A, Class B and Class C shares, respectively.
Fees waived and expenses reimbursed during the year ended November 30, 2013 are
reflected on the Statement of Operations. Class Y shares do not have an expense
limitation. These expense limitations are in effect through April 1, 2015. There
can be no assurance that PIM will extend the expense limitation agreement for a
class of shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$35,246 in management fees, administrative costs and certain other
reimbursements payable to PIM at November 30, 2013.
40 Pioneer International Value Fund | Annual Report | 11/30/13
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 reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the year ended November 30, 2013, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 95,282
Class B 8,551
Class C 10,507
Class Y 137,001
--------------------------------------------------------------------------------
Total $251,341
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $58,170 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at November 30, 2013.
4. Distribution Plan
The Fund has 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
and/or account maintenance services or distribution services with regard to
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class 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 $3,896 in distribution fees payable to PFD at November 30, 2013.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Class B shares redeemed within five years of
purchase are subject to a CDSC at declining rates beginning at 4.00%, based on
the lower of cost or market value of shares being redeemed. Redemptions of Class
C shares within 12 months of purchase are subject to a CDSC of 1.00%, based on
the lower of cost or market value of shares being
Pioneer International Value Fund | Annual Report | 11/30/13 41
redeemed. Shares purchased as part of an exchange remain subject to any
CDSC that applied to the original purchase of those shares. There is no CDSC for
Class Y shares. Proceeds from the CDSCs are paid to PFD. For the year ended
November 30, 2013, CDSCs in the amount of $2,584 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses, due to interest earned
on cash held by PIMSS. For the year ended November 30, 2013, the Fund's expenses
were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At November 30, 2013, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the year ended November 30, 2013 was $13,482,002.
Open forward foreign currency contracts at November 30, 2013 were as follows:
----------------------------------------------------------------------------------------------------
Net
Net In Unrealized
Contracts Exchange Settlement Appreciation
Currency to Deliver For Date Value (Depreciation)
----------------------------------------------------------------------------------------------------
JPY (Japanese Yen) (2,200,000,000) $(22,305,667) 1/31/14 $ (21,488,329) $ 817,339
JPY (Japanese Yen) (5,215,832) (50,837) 12/3/13 (50,923) (87)
JPY (Japanese Yen) (5,771,743) (56,255) 12/3/13 (56,351) (96)
JPY (Japanese Yen) (1,448,507) (14,177) 12/2/13 (14,142) 35
JPY (Japanese Yen) (2,540,459) (25,041) 12/2/13 (24,803) 238
----------------------------------------------------------------------------------------------------
Total $ 817,429
====================================================================================================
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility is in the amount of $215 million. Under such facility, depending
on the type of loan, interest on borrowings is payable at the London Interbank
Offered Rate (LIBOR) plus 0.90% on an annualized basis, or the Alternate Base
Rate, which is the greater of (a) the facility's administrative agent's daily
announced prime rate on the borrowing date, (b) 2% plus the Federal Funds Rate
on the borrowing date and (c) 2% plus the overnight Euro dollar rate on the
borrowing date. The Funds pay an annual commitment fee to participate in
42 Pioneer International Value Fund | Annual Report | 11/30/13
a credit facility. The commitment fee is allocated among participating Funds
based on an allocation schedule set forth in the credit agreement. For the year
ended November 30, 2013, the Fund had no outstanding borrowings.
8. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of November 30, 2013 were as follows:
---------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2013 Liabilities Derivatives 2013
Hedging Instruments ----------------------------- -----------------------------
Under Accounting Statement of Statement of
Standards Codification Assets and Liabilities Assets and Liabilities
(ASC) 815 Location Value Location Value
---------------------------------------------------------------------------------------------
Forward foreign Unrealized Unrealized
currency contracts appreciation on depreciation on
forward foreign forward foreign
currency currency
contracts $817,429 contracts $ --
Written options Unrealized Unrealized
appreciation on depreciation on
written options 4,400 written options --
---------------------------------------------------------------------------------------------
Total $821,829 $ --
=============================================================================================
The effect of derivative instruments on the Statement of Operations for the year
ended November 30, 2013 was as follows:
------------------------------------------------------------------------------------------------------
Derivatives Not Realized Change in
Accounted for as Gain or Unrealized
Hedging Instruments (Loss) on Gain or (Loss)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
------------------------------------------------------------------------------------------------------
Forward foreign Change in net unrealized appreciation $(94,609)
currency contracts (depreciation) on forward foreign
currency contracts and other assets
and liabilities denominated in
foreign currencies
Forward foreign Net realized gain (loss) on forward $2,734,405
currency contracts foreign currency contracts and
other assets and liabilities
denominated in foreign currencies
Written options Change in net unrealized appreciation
(depreciation) on written options 4,400
Written options Net realized gain (loss) on
written options 217,615
Pioneer International Value Fund | Annual Report | 11/30/13 43
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VIII and the Shareowners of
Pioneer International Value Fund
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
International Value Fund (the "Fund") (the sole portfolio comprising Pioneer
Series Trust VIII), including the schedule of investments, as of November 30,
2013, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of November 30, 2013, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer International Value Fund at November 30, 2013, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
January 24, 2014
44 Pioneer International Value Fund | Annual Report | 11/30/13
Additional Information (unaudited)
For the fiscal year ending November 30, 2013, the Fund has elected to pass
through foreign tax credits of $658,776.
Pioneer International Value Fund | Annual Report | 11/30/13 45
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer International Value Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in March 2013 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
In July 2013, the Trustees approved the format of the contract review materials
and submitted their formal request to PIM to furnish information necessary to
evaluate the terms of the investment advisory agreement. The contract review
materials were provided to the Trustees in July 2013 and September 2013. After
reviewing and discussing the materials, the Trustees submitted a request for
additional information to PIM, and materials were provided in response to this
request. Meetings of the Independent Trustees of the Fund were held in July,
September, and November, 2013 to review and discuss the contract review
materials. In addition, the Trustees took into account the information related
to the Fund provided to the Trustees at each regularly scheduled meeting.
At a meeting held on November 12, 2013, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile. The Trustees did not identify any single
factor as the controlling factor in determining to approve the renewal of the
agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund and its research process. The Trustees considered the resources of PIM and
the personnel of PIM who provide investment management services to the Fund.
They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered
46 Pioneer International Value Fund | Annual Report | 11/30/13
the non-investment resources and personnel of PIM involved in PIM's services
to the Fund, including PIM's compliance and legal resources and personnel. The
Trustees noted the substantial attention and high priority given by PIM's senior
management to the Pioneer fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees review the Fund's performance on a regular basis, based on analysis
and data prepared by PIM for this purpose and discuss performance issues with
PIM on an ongoing basis. For purposes of their contract renewal deliberations,
the Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the second quintile of its Morningstar
category for the one year period ended June 30, 2013 and in the fourth quintile
of its Morningstar category for the three, five and ten year periods ended June
30, 2013. The Trustees noted the discussions held throughout the year regarding
the Fund's performance and confirmed that those discussions were factored into
the Trustees' deliberations concerning the renewal of the advisory agreement.
They indicated that they were satisfied with the discussions with PIM with
respect to the Fund's performance.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight Mutual Fund Research
and Consulting, LLC (Strategic Insight), an independent third party.
Pioneer International Value Fund | Annual Report | 11/30/13 47
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2013 was in the third quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoint in the management fee schedule and the
reduced fee rate above a certain asset level.
The Trustees considered that the expense ratio of the Fund's Class A shares for
the twelve months ended June 30, 2013 was in the fourth quintile relative to its
Morningstar peer group and in the third quintile relative to its Strategic
Insight peer group, in each case for the comparable period. They also considered
that the expense ratio of the Fund's Class Y shares for the twelve months ended
June 30, 2013 was in the third quintile relative to its Morningstar peer group
and in the second quintile relative to its Strategic Insight peer group, in each
case for the comparable period. The Trustees noted that the Fund's expense ratio
was approximately nine basis points higher than the median expense ratio of the
Fund's Morningstar peer group, and approximately the same as the median expense
ratio of the Fund's Strategic Insight peer group. The Trustees noted that PIM
was waiving fees and/or reimbursing expenses in order to limit the ordinary
operating expenses of the Fund. The Trustees noted the Fund's high number of
small accounts. The Trustees considered the impact of transfer agency,
sub-transfer agency, and other non-management fee expenses on the expense ratios
of the Fund, and noted the impact of expenses relating to small accounts and
omnibus accounts on transfer and sub-transfer agency expenses generally. The
Trustees noted that they separately review the Fund's transfer agency,
sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by PIM and PIM's affiliate,
Pioneer Institutional Asset Management, Inc. (together with PIM, "Pioneer") to
institutional and other clients, including publicly offered European funds
sponsored by affiliates of Pioneer, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered PIM's costs in providing
services to the Fund and Pioneer's costs in providing services to the other
clients and considered the differences in management fees and profit margins for
Fund and non-Fund services. In evaluating the fees associated with Pioneer's
client accounts, the Trustees took into account the respective demands,
resources and complexity associated with the Fund and client accounts. The
Trustees noted that, in some instances, the fee rates for those clients were
lower than the management fee for the Fund and considered that, under the
investment advisory agreement with the Fund, PIM performs additional services
for the Fund that it does not provide to those other clients or services that
are broader in scope, including oversight of the Fund's other service providers
and activities related to compliance and the extensive regulatory and tax
regimes to which the Fund is subject. The Trustees also
48 Pioneer International Value Fund | Annual Report | 11/30/13
considered the different entrepreneurial risks associated with PIM's
management of the Fund and Pioneer's management of the other client
accounts. The Trustees concluded that the management fee payable by the
Fund to PIM was reasonable in relation to the nature and quality of the services
provided by PIM.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that PIM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoint in the management fee schedule. The Trustees recognize that
economies of scale are difficult to identify and quantify, rarely identifiable
on a fund-by-fund basis, and that, among other factors that may be relevant, are
the following: fee levels, expense subsidization, investment by PIM in research
and analytical capabilities and PIM's commitment and resource allocation to the
Fund. The Trustees noted that profitability also may be an indicator of the
availability of any economies of scale, although profitability may vary for
other reasons particularly, for example during the recent difficult periods for
financial markets, as the level of services was maintained notwithstanding a
significant decline in PIM's fee revenues from the Fund. Accordingly, the
Trustees concluded that economies of scale, if any, were being appropriately
shared with the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. The Trustees
considered the intangible benefits to PIM by virtue of its
Pioneer International Value Fund | Annual Report | 11/30/13 49
relationship with the Fund and the other Pioneer funds. The Trustees concluded
that the receipt of these benefits was reasonable in the context of the overall
relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
50 Pioneer International Value Fund | Annual Report | 11/30/13
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy voting policies and procedures of the Funds are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Funds voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to share-
owners at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and Officers are listed on the following pages, together
with their principal occupations during at least the past five years. Trustees
who are interested persons of the Fund within the meaning of the 1940 Act are
referred to as Interested Trustees. Trustees who are not interested persons of
the Fund are referred to as Independent Trustees. Each of the Trustees, except
Mr. West, serves as a trustee of each of the 54 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer Funds").
Mr. West serves as a Trustee of 49 Pioneer funds. The address for all Trustees
and all officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer International Value Fund | Annual Report | 11/30/13 51
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (63) Trustee since 2006. Chairman (2008 - present) and Chief Executive Director, Broadridge
Chairman of the Board and Serves until a Officer (2008-2012), Quadriserv, Inc. (technology Financial Solutions, Inc.
Trustee successor trustee is products for securities lending industry) (2008 - (investor communications and
elected or earlier present); private investor (2004 - 2008); and securities processing
retirement or Senior Executive Vice President, The Bank of New provider for financial
removal. York (financial and securities services) (1986 - services industry) (2009 -
2004) present); Director,
Quadriserv, Inc. (2005 -
present); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (69) Trustee since 2005. Managing Partner, Federal City Capital Advisors Director of Enterprise
Trustee Serves until a (corporate advisory services company) (1997 - Community Investment, Inc.
successor trustee is 2004 and 2008 - present); Interim Chief Executive (privately-held affordable
elected or earlier Officer, Oxford Analytica, Inc. (privately held housing finance company) (1985
retirement or research and consulting company) (2010); - 2010); Director of Oxford
removal. Executive Vice President and Chief Financial Analytica, Inc. (2008 -
Officer, I-trax, Inc. (publicly traded health care present); Director of The
services company) (2004 - 2007); and Executive Swiss Helvetia Fund, Inc.
Vice President and Chief Financial Officer, (closed-end fund) (2010 -
Pedestal Inc. (internet-based mortgage trading present); and Director of New
company) (2000 - 2002) York Mortgage Trust (publicly
traded mortgage REIT) (2004 -
2009, 2012 - present)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (69) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee is Mellon Institutional Funds
elected or earlier Master Portfolio (oversaw 17
retirement or portfolios in fund complex)
removal. (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer International Value Fund | Annual Report | 11/30/13
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (66) Trustee since 1992. Founding Director, Vice President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee is firm) (1982-present); Desautels Faculty of
elected or earlier Management, McGill University (1999 - present);
retirement or and Manager of Research Operations and
removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (65) Trustee since 1992. President and Chief Executive Officer, Newbury, Director of New America High
Trustee Serves until a Piret & Company, Inc. (investment banking firm) Income Fund, Inc. (closed-end
successor trustee is (1981 - present) investment company) (2004 -
elected or earlier present); and member, Board of
retirement or Governors, Investment Company
removal. Institute (2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (85) Trustee since 1993. Senior Counsel, Sullivan & Cromwell LLP (law firm) Director, The Swiss Helvetia
Trustee Serves until a (1998 - present); and Partner, Sullivan & Cromwell Fund, Inc. (closed-end
successor trustee is LLP (prior to 1998) investment company) (1995 -
elected or earlier 2012); and Director, Invesco,
retirement or Ltd. (formerly AMVESCAP, PLC)
removal. (investment manager)
(1997-2005)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer International Value Fund | Annual Report | 11/30/13 53
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (55)* Trustee since 2007. Director, CEO and President of PIM-USA (since None
Trustee and Executive Serves until a February 2007); Director and President of Pioneer
Vice President+ successor trustee is and Pioneer Institutional Asset Management, Inc.
elected or earlier (since February 2007); Executive Vice President of
retirement or all of the Pioneer Funds (since March 2007);
removal. Director of PGAM (2007 - 2010); Head of New Europe
Division, PGAM (2000 - 2005); Head of New Markets
Division, PGAM (2005 - 2007)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Kingsbury is an Interested Trustee because he is an officer or director
of the Fund's investment adviser and certain of its affiliates.
+ Mr. Kingsbury became President and Chief Executive Officer of the Fund
effective January 1, 2014.
54 Pioneer International Value Fund | Annual Report | 11/30/13
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (87)** Since 1992. Serves President of all the Pioneer Funds; Non-Executive None
President and Chief at the discretion Chairman and a director of Pioneer Investment
Executive Officer of the of the Board. Management USA Inc. ("PIM-USA") (until November
Fund*** 2013); Chairman and a director of Pioneer; Chairman
and Director of Pioneer Institutional Asset
Management, Inc. (until November 2013); Director of
Pioneer Alternative Investment Management Limited
(Dublin) (until October 2011); President and a
director of Pioneer Alternative Investment
Management (Bermuda) Limited and affiliated funds
(until November 2013); Deputy Chairman and a
director of Pioneer Global Asset Management S.p.A.
("PGAM") (until April 2010); Director of Nano-C,
Inc. (since 2003); Director of Cole Management Inc.
(2004 - 2011); Director of Fiduciary Counseling,
Inc. (until December 2011); Trustee of all of the
Pioneer Funds (until November 2013); and Retired
Partner, Wilmer Cutler Pickering Hale and Dorr LLP
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (48) Since 2003. Serves Vice President and Associate General Counsel of None
Secretary at the discretion Pioneer since January 2008 and Secretary of all of
of the Board. the Pioneer Funds since June 2010; Assistant
Secretary of the Pioneer Funds from September 2003
to May 2010; and Vice President and Senior Counsel
of Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (52) Since 2010. Serves Fund Governance Director of Pioneer since December None
Assistant Secretary at the discretion 2006 and Assistant Secretary of all the Pioneer
of the Board. Funds since June 2010; Manager - Fund Governance of
Pioneer from December 2003 to November 2006; and
Senior Paralegal of Pioneer from January 2000 to
November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (50) Since 2010. Serves Counsel of Pioneer since June 2007 and Assistant None
Assistant Secretary at the discretion Secretary of all the Pioneer Funds since June 2010;
of the Board. and Vice President and Counsel at State Street Bank
from October 2004 to June 2007
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (53) Since 2008. Serves Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief at the discretion Treasurer of all of the Pioneer Funds since March
Financial and Accounting of the Board. 2008; Deputy Treasurer of Pioneer from March 2004
Officer of the Fund to February 2008; and Assistant Treasurer of all of
the Pioneer Funds from March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
** Mr. Cogan resigned as a Trustee of the Pioneer Funds effective November 12,
2013.
*** Mr. Cogan resigned as President and Chief Executive Officer of the Fund
effective January 1, 2014.
Pioneer International Value Fund | Annual Report | 11/30/13 55
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (48) Since 2000. Serves Assistant Vice President - Fund Treasury of None
Assistant Treasurer at the discretion Pioneer; and Assistant Treasurer of all of the
of the Board. Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (55) Since 2002. Serves Fund Accounting Manager - Fund Treasury of Pioneer; None
Assistant Treasurer at the discretion and Assistant Treasurer of all of the Pioneer Funds
of the Board.
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (33) Since 2009. Serves Fund Administration Manager - Fund Treasury of None
Assistant Treasurer at the discretion Pioneer since November 2008; Assistant Treasurer of
of the Board. all of the Pioneer Funds since January 2009; and
Client Service Manager - Institutional Investor
Services at State Street Bank from March 2003 to
March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (61) Since 2010. Serves Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer at the discretion Pioneer Funds since March 2010; Director of Adviser
of the Board. and Portfolio Compliance at Pioneer since October
2005; and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003 to
October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (42) Since 2006. Serves Director--Transfer Agency Compliance of Pioneer and None
Anti-Money Laundering at the discretion Anti-Money Laundering Officer of all the Pioneer
Officer of the Board. Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
56 Pioneer International Value Fund | Annual Report | 11/30/13
This page for your notes.
Pioneer International Value Fund | Annual Report | 11/30/13 57
This page for your notes.
58 Pioneer International Value Fund | Annual Report | 11/30/13
This page for your notes.
Pioneer International Value Fund | Annual Report | 11/30/13 59
This page for your notes.
60 Pioneer International Value Fund | Annual Report | 11/30/13
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
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: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at 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.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 19448-07-0114
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Pioneer Series Trust VIII:
Fees for audit services provided to the Trust, including
fees associated with the annual filing of its Form N-
1A, totaled approximately $38,568 in 2013 and
approximately $42,062 in 2012.
(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.
Pioneer Series Trust VIII:
Audit-Related Fees
There were no fees for audit-related or other services
provided to the Fund during the fiscal years ended
November 30, 2013 and 2012.
(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.
Pioneer Series Trust VIII:
Fees for tax compliance services, primarily for tax
returns, totaled $8,131 in 2013 and $8,290 in 2012.
(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.
Pioneer Series Trust VIII:
Other Fees
There were no fees for audit-related or other services
provided to the Fund during the fiscal years ended
November 30, 2013 and 2012.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Fund's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Fund. For the
years ended November 30, 2013 and 2012, there were
no services provided to an affiliate that required the
Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and
affiliates, as previously defined, totaled approximately
$8,131 in 2013 and $8,290 in 2012.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust VIII
By (Signature and Title)* /s/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date January 29, 2014
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/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date January 29, 2014
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date January 29, 2014
* Print the name and title of each signing officer under his or her signature.