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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, 2014 through November 30, 2015
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
Equity Fund
(Formerly Pioneer International Value Fund)*
--------------------------------------------------------------------------------
Annual Report | November 30, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIIFX
Class C PCITX
Class Y INVYX
* Effective November 1, 2015, the Fund was renamed
Pioneer International Equity Fund
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 24
Notes to Financial Statements 31
Report of Independent Registered Public Accounting Firm 42
Approval of Investment Advisory Agreement 44
Trustees, Officers and Service Providers 49
Pioneer International Equity Fund | Annual Report | 11/30/15 1
President's Letter
Dear Shareholder,
Over the past several years, many investors experienced positive returns across
most major asset classes. However, 2015 was a tale of two markets, with
favorable market conditions in the first half of the year, followed by an abrupt
slowdown and increased volatility beginning in August. The global markets were
challenged by significant economic cross-currents in different geographic
regions and industrial sectors. While the U.S. economy gradually improved,
growth slowed in China. Emerging markets struggled following a decline in
commodity prices, especially oil. While lower energy prices are good for the
consumer, there were ripple effects throughout the global economy.
Against this backdrop, the Standard & Poor's 500 Index rose by just 1.4% in
2015, international equity markets were essentially flat, and emerging market
equities fell sharply. Across U.S. fixed-income sectors, U.S. government and
investment-grade corporate bonds were fairly flat for the year, while high-yield
bonds, as measured by the Bank of America Merrill Lynch Master II High Yield
Index, posted a -4.9% total return.
Entering 2016, we see the possibility of a cyclical upswing, against an overall
economic backdrop that remains fragile and points towards structurally lower
growth. As always in a Presidential election year, political rhetoric has the
potential to impact U.S. sectors such as health care in 2016. Economies around
the world in both developed and emerging markets are experiencing deep
structural change. Geopolitical instability on many fronts, the rising risk of
policy mistakes, and market liquidity issues all increase the possibility of
sharp swings in asset values. In this environment, financial markets remain
vulnerable to unusual levels of volatility. While divergences among regions and
industries is an important theme, we are generally optimistic about the outlook
for the U.S. economy, which we expect will see modest growth.
Throughout Pioneer's history, we have believed in the importance of active
management. In periods of market volatility, we believe that the value of active
management is even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. Our ongoing goal is to
produce compelling returns consistent with the stated objectives of our
investment products, and with our shareowners' expectations. We believe our
shareowners can benefit from the experience and tenure of our investment teams
as well as the insights generated from our extensive research process.
2 Pioneer International Equity Fund | Annual Report | 11/30/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
December 31, 2015
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. Past performance is no
guarantee of future results.
Pioneer International Equity Fund | Annual Report | 11/30/15 3
Portfolio Management Discussion | 11/30/15
In the follow interview, Madelynn Matlock discusses the market environment for
international equities and the factors that influenced the performance of
Pioneer International Equity Fund* during the 12-month period ended November 30,
2015. Ms. Matlock, a senior vice president and a portfolio manager at Pioneer,
and Marco Pirondini, Executive Vice President, Head of Equities, U.S., and a
portfolio manager at Pioneer, are responsible for the day-to-day management of
the Fund.
Q How did Pioneer International Equity Fund perform for during the 12-month
period ended November 30, 2015?
A Pioneer International Equity Fund's Class A shares returned -1.69% at net
asset value during the 12-month period ended November 30, 2015, while the
Fund's benchmark, the Morgan Stanley Capital International (MSCI) Europe,
Australasia, Far East (EAFE) ND Index1 (the MSCI Index) returned -2.94%.
During the same period, the average return of the 410 mutual funds in
Lipper's International Multi-Cap Core Funds category was -3.32%, and the
average return of the 791 mutual funds in Morningstar's Foreign Large Blend
Funds category was -3.26%.
Q How would you characterize the investment environment for international
equities during the 12-month period ended November 30, 2015?
A The global economy faced several headwinds during the 12-month reporting
period, all of which led to considerable volatility in international equity
markets. Geopolitical tensions in the Middle East, Greece's standoff with
its creditors, China's slowing economy, and the destabilizing influence of
the dramatic decline in commodity prices were among the factors
contributing to a stagnating global economic growth picture and the
resulting uncertainty and market volatility.
(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 Equity Fund | Annual Report | 11/30/15
Against that backdrop, U.S. stocks outperformed international stocks during
the 12-month period (the Standard & Poor's 500 Index returned 2.76% for the
12 months ended November 30, 2015, while the MSCI World Ex-U.S. Index, a
measure of non-U.S. developed markets, returned -4.55%). The emerging
markets were the biggest laggards during the period, as the MSCI Emerging
Markets ND Index returned -16.99%. Elsewhere in international equity
markets, the Pacific Rim, with relatively strong performance from Japan,
posted slightly positive returns, while Europe struggled (the (MSCI Pacific
Index and MSCI Europe Index returned 0.15% and -4.06%, respectively, during
the period).
From a sector perspective, information technology, consumer staples, and
health care were the top performers during the period, while energy and
utilities stocks turned in negative performance, reflecting the sharp
decline in oil prices and slowing consumer demand.
While international equity markets faced many challenges during the period,
we saw the 12 months as a time to uncover new investment opportunities. In
our experience, investors generally tend to lose sight of positive
long-term fundamentals during periods of uncertainty and heightened market
volatility, and often sell indiscriminately. When that happens, such
sell-offs can bring stock prices more in line with what we are willing to
pay based on their long-term value. China's surprise currency devaluation
in August 2015, and the historic sell-off in global equities that ensued,
was, in our view, an opportune time to uncover stocks that had become more
reasonably priced, or even compellingly cheap.
Q Which of your investment strategies contributed to the Fund's
outperformance relative to the benchmark MSCI EAFE ND Index during the
12-month period ended November 30, 2015?
A Positive stock selection was the main driver of the Fund's performance
relative to the benchmark during the period. In addition, the Fund's
relative results benefitted from some incremental return from sector
weightings and regional allocations.
From a sector allocation perspective, our decisions to overweight the
portfolio in the outperforming information technology sector and to
underweight the struggling energy sector aided benchmark-relative returns.
Within the financials sector, our emphasis on owning insurance companies
and real estate-focused companies, while limiting investments in banks, was
also beneficial for the Fund's benchmark-relative performance.
Pioneer International Equity Fund | Annual Report | 11/30/15 5
As for regional/country allocations, the portfolio's greater-than-benchmark
exposure to Japan was a positive factor in the Fund's relative returns, as
the Japanese stock market turned in reasonably solid performance during the
period. We have been encouraged by Japan's aggressive monetary policies and
shareholder-friendly market reforms, which are helping to improve company
profitability and support equity prices in the country.
With regard to individual stock selections, positive benchmark-relative
returns for the 12-month period derived largely from the Fund's positions
in lesser-known, more mid-sized companies. For example, the Fund's shares
of Sundrug, a drugstore chain, benefited from an easing of drug-dispensing
regulations in Japan as well as the waning of the one-time shock caused by
an increase in the country's value-added tax. We continue to believe
Sundrug is in a good position to benefit from its retail network
capabilities. Another strong performer in the portfolio during the period
was Gerresheimer, a German manufacturer of packaging products for
medication and drug delivery devices made of special-purpose glass and
plastics, such as insulin pens and asthma inhalers. Gerresheimer saw both
strong organic growth and corresponding revenue growth during the 12-month
period. In addition, the Fund's investment in Murata, a manufacturer of
electronics used to enable wireless communications for smartphones and
other products, was a beneficiary of the growth in global smartphone usage.
Murata's stock price also rose on news of the company's decision to expand
its reach into the so-called "Internet of Things" -- connecting
thermostats, appliances, and other devices to computers and smartphones.
Q Which of your investment strategies detracted the most from the Fund's
performance during the 12-month period ended November 30, 2015?
A Exposure to the energy sector represented the largest drag on the Fund's
performance during the period. Energy was the poorest-performing market
sector over the 12 months, as the sharp decline in oil prices and the
refusal of the OPEC (Organization of the Petroleum Exporting Countries)
cartel to cut production to bolster prices created a ripple effect
throughout the global economy. Oil exploration-and-production companies,
which have reduced capital spending given the supply/demand imbalance, felt
the greatest impact.
While the Fund held a lower-than-benchmark weighting in energy during the
period, any exposure to the sector proved to be a headwind for absolute
returns. One portfolio position in energy that detracted from the Fund's
6 Pioneer International Equity Fund | Annual Report | 11/30/15
performance during the period was Canadian firm Encana, which not only
struggled due to the impact of falling oil revenues, but also was hurt by
management's ill-timed offer to buy an oil producer in the Texas shale
area.
In health care, the Fund's position in Fagron, a pharmaceutical compounding
company dedicated to creating customized medications, also detracted from
returns. We purchased the shares of Fagron last spring, but the company
soon ran into unforeseen contract problems with a recently acquired firm,
which adversely affected Fagron's earnings for the third quarter of 2015.
We sold the Fund's shares after news of the troubled negotiations surfaced.
Finally, a holding in Japanese industrial conglomerate Hitachi hurt the
Fund's returns during the period. Hitachi saw weaker-than-expected revenue
growth due to cutbacks in capital expenditures in the manufacturing sector
worldwide. However, we remain confident in management's ability to promote
corporate growth opportunities for Hitachi. We still held shares of both
Hitachi and Encana in the Fund's portfolio as of period end.
Q Did the Fund have any derivatives exposure during the 12-month period ended
November 30, 2015, and did the exposure have an effect on performance?
A Yes. We invested in currency forwards and futures contracts during the
period. In addition, we used total return swaps in an attempt to hedge the
difference between the performance of Japan's Nikkei 400 Index, which was
introduced in 2014, and the TOPIX (Tokyo Stock Price Index) Index. The use
of derivatives, particularly the hedge, which favored the relative
outperformance of the Nikkei 400, was slightly accretive for the Fund's
performance during the reporting period.
Q What is your outlook as we enter 2016?
A Our near-term view is guarded, as we see some risks in the global
landscape. Chief among our concerns are geopolitical tensions in the Middle
East, acts of terrorism, and the dramatic decline in commodity
Pioneer International Equity Fund | Annual Report | 11/30/15 7
prices, which has added to economic and political instability in countries
that depend on commodity-based revenue - particularly Brazil. However, we
also see reasons to be optimistic.
The European economy appears to have bottomed, and the European Central
Bank's quantitative easing program seems to be moving the region towards a
recovery path. The Japanese economy has seen a slower pace of growth,
mainly due to decreased exports to China. Yet, we also see continued growth
in consumer spending, supported by increases in real wages, as well as a
sustained recovery in corporate earnings of Japanese companies. Both
Japanese and European markets have benefited from the U.S. economic
recovery, which has received support from improving employment figures and
income levels. In the emerging markets, we continue to see weakness in
Latin America, offset by pockets of strength in Asia. We believe the
emerging markets may be getting close to hitting a bottom in terms of
relative performance, but we expect market volatility to remain high.
Regardless of market conditions, we will continue to abide by our research-
driven investment approach, which is rooted in evaluating and choosing
stocks that we believe have good return potential -- and then not
overpaying for that potential. We evaluate every company's return on
invested capital compared with what they must pay for that capital, and we
favor owning companies that are either adding value on a consistent basis,
or which have the potential to improve their returns over time.
We also seek to take advantage of long-running secular trends that may lead
to higher returns in the future, and try to avoid what we consider negative
trends that might drag on the performance of even well-managed companies.
Aging populations, slower population growth, carbon-limiting strategies,
the sharing (or access) economy, and increased travel demand in developed
countries are examples of secular trends that we think are creating new
investments opportunities for the Fund.
* Note to Shareholders: Effective November 1, 2015, Pioneer International
Value Fund was renamed Pioneer International Equity Fund. In addition,
Andrea Salvatori is no longer a portfolio manager on the Fund.
8 Pioneer International Equity Fund | Annual Report | 11/30/15
Please refer to the Schedule of Investments on pages 17-23 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.
To the extent the Fund invests in issuers located within specific countries or
regions, the Fund may be particularly affected by adverse markets, rates, and
events, which may occur in those countries and 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.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
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. Past performance is no
guarantee of future results.
Pioneer International Equity Fund | Annual Report | 11/30/15 9
Portfolio Summary | 11/30/15
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 25.2%
Consumer Discretionary 12.4%
Industrials 11.5%
Consumer Staples 11.1%
Health Care 10.9%
Information Technology 9.8%
Materials 7.8%
Telecommunication Services 4.9%
Energy 3.3%
Utilities 3.1%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Japan 29.8%
United Kingdom 12.1%
France 11.3%
Switzerland 9.9%
Germany 8.0%
Spain 5.8%
Ireland 5.8%
Australia 4.0%
Sweden 3.7%
Netherlands 2.3%
Canada 1.8%
Jersey Channel Islands 1.3%
Curacao 1.2%
Taiwan 1.1%
Italy 1.0%
Other (individually less than 1%) 0.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. AXA SA 2.06%
--------------------------------------------------------------------------------
2. Novartis AG 2.03
--------------------------------------------------------------------------------
3. Kuraray Co., Ltd. 2.02
--------------------------------------------------------------------------------
4. Vonovia SE 2.01
--------------------------------------------------------------------------------
5. Keyence Corp. 1.85
--------------------------------------------------------------------------------
6. Zurich Insurance Group AG 1.81
--------------------------------------------------------------------------------
7. Sundrug Co., Ltd. 1.79
--------------------------------------------------------------------------------
8. Hitachi, Ltd. 1.79
--------------------------------------------------------------------------------
9. Siemens AG 1.73
--------------------------------------------------------------------------------
10. Danone SA 1.70
--------------------------------------------------------------------------------
* 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 securities listed.
10 Pioneer International Equity Fund | Annual Report | 11/30/15
Prices and Distributions | 11/30/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 11/30/15 11/30/14
--------------------------------------------------------------------------------
A $20.74 $22.34
--------------------------------------------------------------------------------
C $18.13 $19.69
--------------------------------------------------------------------------------
Y $20.81 $22.41
--------------------------------------------------------------------------------
Distributions per Share: 12/1/14-11/30/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $1.2250 $ -- $ --
--------------------------------------------------------------------------------
C $1.0635 $ -- $ --
--------------------------------------------------------------------------------
Y $1.3086 $ -- $ --
--------------------------------------------------------------------------------
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 12-14.
Pioneer International Equity Fund | Annual Report | 11/30/15 11
Performance Update | 11/30/15 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 Equity 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, 2015)
--------------------------------------------------------------------------------
Net Public MSCI
Asset Offering EAFE
Value Price ND
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 Years 2.36% 1.76% 3.64%
5 Years 4.60 3.37 5.52
1 Year -1.69 -7.33 -2.94
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.70% 1.45%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International MSCI EAFE
Equity Fund ND Index
11/05 $ 9,425 $10,000
11/06 $11,885 $12,820
11/07 $13,992 $15,037
11/08 $ 7,090 $ 7,851
11/09 $ 9,693 $10,812
11/10 $ 9,504 $10,932
11/11 $ 9,234 $10,482
11/12 $ 9,731 $11,803
11/13 $11,921 $14,734
11/14 $12,105 $14,732
11/15 $11,901 $14,299
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 the contractual expense limitation currently in
effect through April 1, 2016, for Class A shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The 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 Equity Fund | Annual Report | 11/30/15
Performance Update | 11/30/15 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 Equity 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, 2015)
--------------------------------------------------------------------------------
MSCI
EAFE
If If ND
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 1.46% 1.46% 3.64%
5 Years 3.67 3.67 5.52
1 Year -2.58 -2.58 -2.94
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.44% 2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International MSCI EAFE
Equity Fund ND Index
11/05 $10,000 $10,000
11/06 $12,509 $12,820
11/07 $14,613 $15,037
11/08 $ 7,337 $ 7,851
11/09 $ 9,937 $10,812
11/10 $ 9,658 $10,932
11/11 $ 9,300 $10,482
11/12 $ 9,717 $11,803
11/13 $11,799 $14,734
11/14 $11,870 $14,732
11/15 $11,564 $14,299
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). "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 the contractual expense limitation currently in
effect through April 1, 2016, for Class C shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The 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 Equity Fund | Annual Report | 11/30/15 13
Performance Update | 11/30/15 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 Equity 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, 2015)
--------------------------------------------------------------------------------
Net MSCI
Asset EAFE
Value ND
Period (NAV) Index
--------------------------------------------------------------------------------
10 Years 2.65% 3.64%
5 Years 5.03 5.52
1 Year -1.29 -2.94
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.06%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer International MSCI EAFE
Equity Fund ND Index
11/05 $5,000,000 $5,000,000
11/06 $6,303,689 $6,409,765
11/07 $7,421,340 $7,518,634
11/08 $3,760,314 $3,925,348
11/09 $5,157,269 $5,405,804
11/10 $5,079,249 $5,466,031
11/11 $4,957,635 $5,240,953
11/12 $5,244,693 $5,901,575
11/13 $6,452,033 $7,367,240
11/14 $6,577,084 $7,366,124
11/15 $6,492,116 $7,149,389
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.
14 Pioneer International Equity Fund | Annual Report | 11/30/15
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 Equity Fund
Based on actual returns from June 1, 2015, through November 30, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 6/1/15
--------------------------------------------------------------------------------
Ending Account $ 926.67 $ 922.63 $ 928.60
Value (after expenses)
on 11/30/15
--------------------------------------------------------------------------------
Expenses Paid $ 7.00 $ 11.33 $ 5.03
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.45%,
2.35% and 1.04% for class A, C and 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 Equity Fund | Annual Report | 11/30/15 15
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 Equity Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from June 1, 2015, through November 30, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 6/1/15
--------------------------------------------------------------------------------
Ending Account $1,017.80 $1,013.29 $1,019.85
Value (after expenses)
on 11/30/15
--------------------------------------------------------------------------------
Expenses Paid $ 7.33 $ 11.86 $ 5.27
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.45%,
2.35% and 1.04% for class A, C and 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 Equity Fund | Annual Report | 11/30/15
Schedule of Investments | 11/30/15
---------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------
COMMON STOCKS -- 96.1%
ENERGY -- 3.3%
Oil & Gas Equipment & Services -- 1.2%
26,200 Schlumberger, Ltd. $ 2,021,330
---------------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.0%
35,000 TOTAL SA $ 1,737,161
---------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.1%
230,000 Encana Corp. $ 1,915,303
-------------
Total Energy $ 5,673,794
---------------------------------------------------------------------------------------
MATERIALS -- 7.6%
Commodity Chemicals -- 2.5%
265,000 Kuraray Co., Ltd. $ 3,376,346
27,100 Methanex Corp. 1,064,639
-------------
$ 4,440,985
---------------------------------------------------------------------------------------
Diversified Chemicals -- 1.2%
755,300 Incitec Pivot, Ltd. $ 2,059,546
---------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 1.4%
6,700 Syngenta AG $ 2,470,756
---------------------------------------------------------------------------------------
Specialty Chemicals -- 1.2%
47,500 Croda International Plc $ 2,051,351
---------------------------------------------------------------------------------------
Paper Packaging -- 1.3%
223,600 Amcor, Ltd. $ 2,182,874
-------------
Total Materials $ 13,205,512
---------------------------------------------------------------------------------------
CAPITAL GOODS -- 11.1%
Building Products -- 2.9%
35,400 Daikin Industries, Ltd. $ 2,490,457
100,800 Kingspan Group Plc 2,652,742
-------------
$ 5,143,199
---------------------------------------------------------------------------------------
Electrical Components & Equipment -- 2.9%
128,200 ABB, Ltd. $ 2,429,444
41,200 Schneider Electric SE 2,609,359
-------------
$ 5,038,803
---------------------------------------------------------------------------------------
Heavy Electrical Equipment -- 1.6%
248,000 Mitsubishi Electric Corp. $ 2,749,161
---------------------------------------------------------------------------------------
Industrial Conglomerates -- 1.7%
27,900 Siemens AG $ 2,891,869
---------------------------------------------------------------------------------------
Agricultural & Farm Machinery -- 1.2%
121,000 Kubota Corp. $ 2,021,185
---------------------------------------------------------------------------------------
Industrial Machinery -- 0.8%
133,400 Fujitec Co., Ltd. $ 1,431,708
-------------
Total Capital Goods $ 19,275,925
---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/15 17
Schedule of Investments | 11/30/15 (continued)
---------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 2.7%
Auto Parts & Equipment -- 1.5%
91,700 NGK Spark Plug Co., Ltd. $ 2,501,717
---------------------------------------------------------------------------------------
Tires & Rubber -- 1.2%
60,100 Bridgestone Corp. $ 2,141,399
-------------
Total Automobiles & Components $ 4,643,116
---------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 2.9%
Consumer Electronics -- 0.9%
137,900 Panasonic Corp. $ 1,567,297
---------------------------------------------------------------------------------------
Homebuilding -- 2.0%
1,009,127 Cairn Homes Plc $ 1,192,035
79,200 Persimmon Plc 2,283,817
-------------
$ 3,475,852
-------------
Total Consumer Durables & Apparel $ 5,043,149
---------------------------------------------------------------------------------------
CONSUMER SERVICES -- 3.9%
Hotels, Resorts & Cruise Lines -- 1.6%
52,400 Carnival Plc $ 2,734,021
---------------------------------------------------------------------------------------
Restaurants -- 2.3%
77,408 Domino's Pizza Group Plc $ 1,224,424
40,300 Whitbread Plc 2,759,896
-------------
$ 3,984,320
-------------
Total Consumer Services $ 6,718,341
---------------------------------------------------------------------------------------
MEDIA -- 1.3%
Advertising -- 1.3%
35,100 Publicis Groupe SA $ 2,213,698
-------------
Total Media $ 2,213,698
---------------------------------------------------------------------------------------
RETAILING -- 1.3%
Apparel Retail -- 1.3%
61,100 Hennes & Mauritz AB $ 2,265,953
-------------
Total Retailing $ 2,265,953
---------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.8%
Drug Retail -- 1.7%
46,400 Sundrug Co., Ltd. $ 2,992,647
---------------------------------------------------------------------------------------
Hypermarkets & Super Centers -- 1.1%
291,200 Distribuidora Internacional de Alimentacion SA $ 1,840,199
-------------
Total Food & Staples Retailing $ 4,832,846
---------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 5.2%
Soft Drinks -- 2.1%
164,100 Britvic Plc $ 1,772,955
46,000 Suntory Beverage & Food, Ltd. 1,797,316
-------------
$ 3,570,271
---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer International Equity Fund | Annual Report | 11/30/15
---------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------
Packaged Foods & Meats -- 3.1%
40,600 Danone SA $ 2,842,913
32,800 Kerry Group Plc 2,625,296
-------------
$ 5,468,209
-------------
Total Food, Beverage & Tobacco $ 9,038,480
---------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.8%
Household Products -- 1.5%
27,300 Henkel AG & Co. KGaA $ 2,620,600
---------------------------------------------------------------------------------------
Personal Products -- 1.3%
50,500 Unilever NV $ 2,214,371
-------------
Total Household & Personal Products $ 4,834,971
---------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.1%
Health Care Supplies -- 1.6%
67,600 Hoya Corp. $ 2,743,367
---------------------------------------------------------------------------------------
Health Care Distributors -- 0.2%
33,400 Fagron N.V. $ 353,099
---------------------------------------------------------------------------------------
Health Care Services -- 1.3%
31,200 Fresenius SE & Co. KGaA $ 2,290,389
-------------
Total Health Care Equipment & Services $ 5,386,855
---------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES -- 7.4%
Pharmaceuticals -- 6.1%
168,900 Astellas Pharma, Inc. $ 2,380,671
39,700 Novartis AG 3,390,767
10,306 Roche Holding AG 2,758,345
31,200 Shire Plc 2,171,134
-------------
$ 10,700,917
---------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 1.3%
28,700 Gerresheimer AG $ 2,241,216
-------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 12,942,133
---------------------------------------------------------------------------------------
BANKS -- 7.5%
Diversified Banks -- 7.5%
292,223 Banco Bilbao Vizcaya Argentaria SA $ 2,424,633
680,500 Barclays Plc 2,286,947
46,300 BNP Paribas SA 2,743,096
144,400 Nordea Bank AB 1,599,842
47,100 Sumitomo Mitsui Financial Group, Inc. 1,799,061
101,700 Swedbank AB 2,251,545
-------------
$ 13,105,124
-------------
Total Banks $ 13,105,124
---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/15 19
Schedule of Investments | 11/30/15 (continued)
---------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.4%
Diversified Capital Markets -- 1.4%
130,000 UBS Group AG $ 2,493,338
-------------
Total Diversified Financials $ 2,493,338
---------------------------------------------------------------------------------------
INSURANCE -- 5.8%
Insurance Brokers -- 1.0%
18,900 Aon Plc $ 1,790,586
---------------------------------------------------------------------------------------
Life & Health Insurance -- 1.1%
21,200 Japan Post Holdings Co., Ltd. $ 328,433
214,650 Poste Italiane S.p.A. 1,598,481
-------------
$ 1,926,914
---------------------------------------------------------------------------------------
Multi-line Insurance -- 3.7%
127,300 AXA SA $ 3,440,921
11,500 Zurich Insurance Group AG 3,027,749
-------------
$ 6,468,670
-------------
Total Insurance $ 10,186,170
---------------------------------------------------------------------------------------
REAL ESTATE -- 9.4%
Diversified REIT -- 3.7%
1,665,215 Hibernia Real Estate Investment Trust plc $ 2,420,296
507,700 Hibernia Real Estate Investment Trust plc 746,572
132,500 Merlin Properties Socimi SA 1,647,550
29,972 Wereldhave NV 1,675,841
-------------
$ 6,490,259
---------------------------------------------------------------------------------------
Industrial REIT -- 1.4%
560,600 Goodman Group $ 2,487,468
---------------------------------------------------------------------------------------
Retail REIT -- 1.0%
38,600 Klepierre $ 1,751,794
---------------------------------------------------------------------------------------
Diversified Real Estate Activities -- 1.3%
91,000 Mitsui Fudosan Co., Ltd. $ 2,297,861
---------------------------------------------------------------------------------------
Real Estate Operating Companies -- 2.0%
108,399 Vonovia SE $ 3,360,322
-------------
Total Real Estate $ 16,387,704
---------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 8.4%
Electronic Equipment Manufacturers -- 4.3%
506,100 Hitachi, Ltd. $ 2,990,780
5,700 Keyence Corp. 3,093,014
681,000 PAX Global Technology, Ltd. 840,580
512,000 Wasion Group Holdings, Ltd. 583,966
-------------
$ 7,508,340
---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer International Equity Fund | Annual Report | 11/30/15
---------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------
Electronic Components -- 4.1%
78,700 Alps Electric Co., Ltd. $ 2,478,278
12,000 Murata Manufacturing Co., Ltd. 1,865,099
210,600 Yaskawa Electric Corp. 2,783,156
-------------
$ 7,126,533
-------------
Total Technology Hardware & Equipment $ 14,634,873
---------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.0%
Semiconductors -- 1.0%
417,000 Taiwan Semiconductor Manufacturing Co., Ltd. $ 1,791,146
-------------
Total Semiconductors & Semiconductor Equipment $ 1,791,146
---------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.7%
Integrated Telecommunication Services -- 2.9%
149,341 Euskaltel SA $ 1,847,887
46,500 Nippon Telegraph & Telephone Corp. 1,728,199
86,400 Orange SA 1,492,662
-------------
$ 5,068,748
---------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 1.8%
91,800 KDDI Corp. $ 2,282,508
265,818 Vodafone Group Plc 897,603
-------------
$ 3,180,111
-------------
Total Telecommunication Services $ 8,248,859
---------------------------------------------------------------------------------------
UTILITIES -- 2.5%
Electric Utilities -- 1.8%
8,000 Red Electrica Corp SA $ 686,204
112,600 SSE Plc 2,431,391
-------------
$ 3,117,595
---------------------------------------------------------------------------------------
Gas Utilities -- 0.7%
59,000 Gas Natural SDG SA $ 1,273,528
-------------
Total Utilities $ 4,391,123
---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $164,251,407) $ 167,313,110
---------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 96.1%
(Cost $164,251,407) (a) (b) $ 167,313,110
---------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 3.9% $ 6,797,328
---------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 174,110,438
=======================================================================================
REIT Real Estate Investment Trust.
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/15 21
Schedule of Investments | 11/30/15 (continued)
(a) At November 30, 2015, the net unrealized appreciation (depreciation) on
investments based on cost for federal income tax purposes of
$165,912,010 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 24,682,205
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (23,281,105)
------------
Net unrealized appreciation $ 1,401,100
============
(b) Distributions of investments by country of domicile (excluding temporary
cash investments) as a percentage of total investment in securities, is
as follows:
Japan 29.8%
United Kingdom 12.1
France 11.3
Switzerland 9.9
Germany 8.0
Spain 5.8
Ireland 5.8
Australia 4.0
Sweden 3.7
Netherlands 2.3
Canada 1.8
Jersey Channel Islands 1.3
Curacao 1.2
Taiwan 1.1
Italy 1.0
Other (individually less than 1%) 0.9
---
100%
===
Purchases and sales of securities (excluding temporary cash investments) for the
year ended November 30, 2015, aggregated to $86,827,019 and $106,050,618,
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.
The accompanying notes are an integral part of these financial statements.
22 Pioneer International Equity Fund | Annual Report | 11/30/15
The following is a summary of the inputs used as of November 30, 2015, in
valuing the Fund's investments:
-------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------
Common Stocks*
Energy
Oil & Gas Equipment
& Services $ 2,021,330 $ -- $ -- $ 2,021,330
Oil & Gas Exploration
& Production 1,915,303 -- -- 1,915,303
Materials
Commodity Chemicals 1,064,639 3,376,346 -- 4,440,985
Insurance
Insurance Brokers 1,790,586 -- -- 1,790,586
All Other
Common Stocks* -- 157,144,906 157,144,906
-------------------------------------------------------------------------------------
Total $ 6,791,858 $160,521,252 $ -- $167,313,110
=====================================================================================
* Level 2 securities are valued using inputs/data furnished by independent
pricing services using fair value factors.
During the year ended November 30, 2015, there were no transfers between Levels
1, 2 and 3.
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of November 30, 2015:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Assets:
Foreign currencies,
at value $ -- $107,383 $ -- $107,383
--------------------------------------------------------------------------------
Total $ -- $107,383 $ -- $107,383
================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/15 23
Statement of Assets and Liabilities | 11/30/15
ASSETS:
Investment in securities (cost $164,251,407) $ 167,313,110
Cash 5,914,264
Foreign currencies, at value (cost $108,741) 107,383
Receivables --
Fund shares sold 52,629
Dividends and foreign taxes withheld 1,029,282
Interest 7,768
Due from Pioneer Investment Management, Inc. 8,038
Other assets 32,822
----------------------------------------------------------------------------------------
Total assets $ 174,465,296
========================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 176,078
Distributions 129
Trustee fees 1,170
Due to affiliates 66,300
Due to broker 40
Accrued expenses 111,141
----------------------------------------------------------------------------------------
Total liabilities $ 354,858
========================================================================================
NET ASSETS:
Paid-in capital $ 279,910,285
Undistributed net investment income 1,372,098
Accumulated net realized loss on investments, futures contracts,
swap contracts and foreign currency transactions (110,106,626)
Net unrealized appreciation on investments 3,061,703
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (127,022)
----------------------------------------------------------------------------------------
Total net assets $ 174,110,438
========================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $77,173,282/3,721,201 shares) $ 20.74
Class C (based on $11,980,550/660,771 shares) $ 18.13
Class Y (based on $84,956,606/4,082,838 shares) $ 20.81
MAXIMUM OFFERING PRICE:
Class A ($20.74 (divided by) 94.25%) $ 22.01
========================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer International Equity Fund | Annual Report | 11/30/15
Statement of Operations
For the Year Ended 11/30/15
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $326,235) $ 4,059,502
----------------------------------------------------------------------------------------
Total investment income $ 4,059,502
----------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,574,820
Transfer agent fees
Class A 238,737
Class C 29,891
Class Y 632
Distribution fees
Class A 203,149
Class C 114,927
Shareholder communications expense 114,850
Administrative expense 71,870
Custodian fees 58,785
Registration fees 59,324
Professional fees 71,271
Printing expense 36,692
Fees and expenses of nonaffiliated Trustees 7,299
Miscellaneous 46,367
----------------------------------------------------------------------------------------
Total expenses $ 2,628,614
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (216,796)
----------------------------------------------------------------------------------------
Net expenses $ 2,411,818
----------------------------------------------------------------------------------------
Net investment income $ 1,647,684
----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, SWAP CONTRACTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 4,911,654
Futures contracts (3,519,046)
Swap contracts 2,645,111
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (633,317) $ 3,404,402
----------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $(8,432,105)
Futures contracts 973,106
Swap contracts (427,999)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (14,963) $(7,901,961)
----------------------------------------------------------------------------------------
Net realized and unrealized loss on investments, futures
contracts, swap contracts and foreign
currency transactions $(4,497,559)
----------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(2,849,875)
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/15 25
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------
Year Ended Year Ended
11/30/15 11/30/14
-------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,647,684 $ 9,120,807
Net realized gain on investments, futures contracts, swap
contracts, and foreign currency transactions 3,404,402 36,572,326
Change in net unrealized appreciation (depreciation)
on investments, futures contracts, swap contracts,
and foreign currency transactions (7,901,961) (34,569,935)
-------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (2,849,875) $ 11,123,198
-------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($1.23 and $0.50 per share, respectively) $ (4,545,498) $ (1,912,284)
Class B* ($0.00 and $0.28 per share, respectively) -- (41,082)
Class C ($1.06 and $0.34 per share, respectively) (607,330) (190,074)
Class Y ($1.31 and $0.59 per share, respectively) (5,990,875) (5,869,819)
-------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (11,143,703) $ (8,013,259)
-------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 25,367,243 $ 21,441,174
Reinvestment of distributions 5,077,422 4,707,605
Cost of shares repurchased (39,313,012) (157,345,597)
-------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (8,868,347) $ (131,196,818)
-------------------------------------------------------------------------------------------------
Net decrease in net assets $ (22,861,925) $ (128,086,879)
NET ASSETS:
Beginning of year 196,972,363 325,059,242
-------------------------------------------------------------------------------------------------
End of year $ 174,110,438 $ 196,972,363
-------------------------------------------------------------------------------------------------
Undistributed net investment income $ 1,372,098 $ 10,379,884
=================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
26 Pioneer International Equity Fund | Annual Report | 11/30/15
-----------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
11/30/15 11/30/15 11/30/14 11/30/14
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------
Class A
Shares sold 648,928 $ 14,153,053 418,347 $ 9,403,427
Reinvestment of distributions 208,185 4,326,091 80,981 1,812,361
Less shares repurchased (875,128) (18,854,104) (610,364) (13,731,684)
-----------------------------------------------------------------------------------------------
Net decrease (18,015) $ (374,960) (111,036) $ (2,515,896)
===============================================================================================
Class B*
Shares sold or exchanged -- $ -- 6,745 $ 140,554
Reinvestment of distributions -- -- 1,987 40,465
Less shares repurchased -- -- (161,834) (3,250,196)
-----------------------------------------------------------------------------------------------
Net decrease -- $ -- (153,102) $ (3,069,177)
===============================================================================================
Class C
Shares sold 239,041 $ 4,562,598 128,228 $ 2,556,183
Reinvestment of distributions 30,987 567,691 8,833 175,685
Less shares repurchased (160,897) (3,055,375) (129,224) (2,565,734)
-----------------------------------------------------------------------------------------------
Net increase 109,131 $ 2,074,914 7,837 $ 166,134
===============================================================================================
Class Y
Shares sold 312,314 $ 6,651,592 414,758 $ 9,341,010
Reinvestment of distributions 8,837 183,640 119,763 2,679,094
Less shares repurchased (814,642) (17,403,533) (5,908,934) (137,797,983)
-----------------------------------------------------------------------------------------------
Net decrease (493,491) $ (10,568,301) (5,374,413) $ (125,777,879)
===============================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/15 27
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/15 11/30/14 11/30/13 11/30/12 11/30/11
--------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 22.34 $ 22.49 $ 18.67 $ 17.99 $ 18.72
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.16(a) $ 0.63 $ 0.27 $ 0.36 $ 0.37
Net realized and unrealized gain (loss) on investments (0.53) (0.28) 3.87 0.58 (0.88)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.37) $ 0.35 $ 4.14 $ 0.94 $ (0.51)
--------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (1.23) $ (0.50) $ (0.32) $ (0.26) $ (0.22)
--------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.23) $ (0.50) $ (0.32) $ (0.26) $ (0.22)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.60) $ (0.15) $ 3.82 $ 0.68 $ (0.73)
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.74 $ 22.34 $ 22.49 $ 18.67 $ 17.99
==========================================================================================================================
Total return* (1.69)% 1.55% 22.50% 5.38% (2.84)%
Ratio of net expenses to average net assets (b) 1.45% 1.46% 1.45% 1.45% 1.45%
Ratio of net investment income (loss) to average net assets 0.73% 2.72% 1.26% 1.89% 1.80%
Portfolio turnover rate 49% 100% 101% 61% 66%
Net assets, end of period (in thousands) $77,173 $83,544 $86,602 $75,784 $79,559
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses plus interest expense (b) 1.71% 1.70% 1.69% 1.82% 1.77%
Net investment income (loss) 0.47% 2.48% 1.02% 1.53% 1.48%
==========================================================================================================================
* 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.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Includes interest expense of 0.00%, 0.01%, 0.00%, 0.00%, and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
28 Pioneer International Equity Fund | Annual Report | 11/30/15
-------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/15 11/30/14 11/30/13 11/30/12 11/30/11
-------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 19.69 $ 19.91 $ 16.57 $ 15.97 $ 16.64
-------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.04)(a) $ 0.35 $ 0.08 $ 0.18 $ 0.19
Net realized and unrealized gain (loss) on investments (0.46) (0.23) 3.44 0.53 (0.80)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.50) $ 0.12 $ 3.52 $ 0.71 $ (0.61)
-------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (1.06) $ (0.34) $ (0.18) $ (0.11) $ (0.06)
-------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.06) $ (0.34) $ (0.18) $ (0.11) $ (0.06)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.56) $ (0.22) $ 3.34 $ 0.60 $ (0.67)
-------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.13 $ 19.69 $ 19.91 $ 16.57 $ 15.97
=========================================================================================================================
Total return* (2.58)% 0.60% 21.43% 4.48% (3.71)%
Ratio of net expenses to average net assets (b) 2.35% 2.36% 2.35% 2.35% 2.35%
Ratio of net investment income (loss) to average net assets (0.20)% 1.78% 0.36% 0.99% 0.90%
Portfolio turnover rate 49% 100% 101% 61% 66%
Net assets, end of period (in thousands) $11,981 $10,865 $10,826 $ 9,910 $10,523
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses plus interest expense (b) 2.42% 2.44% 2.41% 2.63% 2.52%
Net investment income (loss) (0.27)% 1.70% 0.30% 0.71% 0.73%
=========================================================================================================================
* 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.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Includes interest expense of 0.00%, 0.01%, 0.00%, 0.00%, and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/15 29
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/15 11/30/14 11/30/13 11/30/12 11/30/11
--------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 22.41 $ 22.56 $ 18.73 $ 18.07 $ 18.80
--------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.25(a) $ 1.29 $ 0.37 $ 0.41 $ 0.44
Net realized and unrealized gain (loss) on investments (0.54) (0.85) 3.87 0.60 (0.87)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.29) $ 0.44 $ 4.24 $ 1.01 $ (0.43)
--------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (1.31) $ (0.59) $ (0.41) $ (0.35) $ (0.30)
--------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.31) $ (0.59) $ (0.41) $ (0.35) $ (0.30)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.60) $ (0.15) $ 3.83 $ 0.66 $ (0.73)
--------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.81 $ 22.41 $ 22.56 $ 18.73 $ 18.07
==========================================================================================================================
Total return* (1.29)% 1.94% 23.02% 5.79% (2.39)%
Ratio of net expenses to average net assets (b) 1.04% 1.06% 1.04% 1.01% 1.01%
Ratio of net investment income (loss) to average net assets 1.16% 3.89% 1.69% 2.35% 2.26%
Portfolio turnover rate 49% 100% 101% 61% 66%
Net assets, end of period (in thousands) $84,957 $102,563 $224,523 $216,217 $189,321
==========================================================================================================================
* 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.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Includes interest expense of 0.00%, 0.01%, 0.00%, 0.00%, and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
30 Pioneer International Equity Fund | Annual Report | 11/30/15
Notes to Financial Statements | 11/30/15
1. Organization and Significant Accounting Policies
Pioneer International Equity Fund (formerly 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 offered three classes of shares designated as Class A, Class C and
Class Y shares. Class B shares were converted to Class A shares as of the close
of business on November 10, 2014. 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 of Trustees 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.
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.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
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.
Pioneer International Equity Fund | Annual Report | 11/30/15 31
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
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 or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The principal exchanges and markets for non-U.S. equity 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 Fund uses a fair
value model developed by an independent pricing service to value non-U.S.
equity securities. On a daily basis, the pricing service recommends
changes, based on a proprietary model, to the closing market prices of each
non-U.S. security held by the Fund to reflect the security's fair value at
the time the Fund determines its net asset value. The Fund applies these
recommendations in accordance with procedures approved by the Board of
Trustees.
Swap contracts, including interest rate swaps, caps and floors (other than
centrally cleared swap contracts) are valued at the dealer quotations
obtained from reputable International Swap Dealer association members.
Centrally cleared swaps are valued at the daily settlement price provided
by the central clearing counterparty.
Futures contracts are generally valued at the closing settlement price
established by the exchange on which they are traded.
Forward foreign currency exchange contracts are valued daily using the
foreign exchange rate or, for longer term forward contract positions, the
spot currency rate, in each case provided by a third party pricing service.
Contracts whose forward settlement date falls between two quoted days are
valued by interpolation.
Shares of open-end registered investment companies (including money market
mutual funds) are valued at such funds' net asset value. Repurchase
agreements are valued at par. Cash may include overnight time deposits at
approved financial institutions.
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
32 Pioneer International Equity Fund | Annual Report | 11/30/15
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 values 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 securities may differ significantly from exchange prices and
such differences could be material.
At November 30, 2015, there were no securities valued using fair value
methods (other than securities valued using prices supplied by independent
pricing services or broker-dealers).
B. Investment Income and Transactions
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.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. 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
Pioneer International Equity Fund | Annual Report | 11/30/15 33
investments are not segregated in the Statement of Operations from the
effects of changes in the market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
D. 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).
E. 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 net 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, 2015, the Fund did not accrue any interest or
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 meeting the requirements of the Internal Revenue Code, the
Fund may 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, 2015, 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.
34 Pioneer International Equity Fund | Annual Report | 11/30/15
At November 30, 2015, the Fund reclassified $488,233 to increase
undistributed net investment income and $488,233 to increase accumulated
net realized loss on investments, futures contracts, swap contracts and
foreign currency transactions to reflect permanent book/tax differences.
These adjustments have no impact on net assets or the results of
operations.
At November 30, 2015, the Fund had a net capital loss carryforward of
$109,242,908, which will expire in 2017 if not utilized.
During the year ended November 30, 2015, a capital loss carryforward of
$2,596,038 was utilized to offset net realized gains by the Fund.
The tax character of distributions paid during the years ended November 30,
2015, and November 30, 2014, was as follows:
---------------------------------------------------------------------------
2015 2014
---------------------------------------------------------------------------
Distribution paid from:
Ordinary income $11,143,703 $8,013,259
---------------------------------------------------------------------------
Total $11,143,703 $8,013,259
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 2,168,983
Capital loss carryforward (109,242,908)
Net unrealized appreciation 1,274,078
---------------------------------------------------------------------------
Total $(105,799,847)
===========================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales and adjustments
relating to PFICs.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $13,180 in underwriting commissions on the sale of
Class A shares during the year ended November 30, 2015.
G. 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.
Pioneer International Equity Fund | Annual Report | 11/30/15 35
Distribution fees are calculated based on the average daily net asset value
attributable to Class A 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 Fund's transfer agent, 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 C and Class Y shares can
reflect different transfer agent and distribution expense rates.
H. 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 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.
I. Repurchase Agreements
Repurchase agreements are arrangements under which the Fund purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Fund at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Fund. The securities purchased serve as
the Fund's collateral for the obligation of the counterparty to repurchase
the securities. The value of the 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. The Fund's investment adviser, PIM is responsible for determining
that the value of the collateral remains at least equal to the repurchase
price. In the event of a default by the counterparty, the Fund is entitled
to sell the securities, but the Fund may not be able to sell them for the
price at which they were purchased, thus causing a loss to the Fund.
Additionally, if the counterparty becomes insolvent, there is some risk
that the Fund will not have a right to the securities, or the immediate
right to sell the securities. As of and for the year ended November 30,
2015, the Fund had no open repurchase agreements.
36 Pioneer International Equity Fund | Annual Report | 11/30/15
J. 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. Futures contracts are subject to market risk, interest rate
risk and currency exchange rate risk. Changes in value of the contracts may
not directly correlate to the changes in value of the underlying
securities. With futures, there is minimal counterparty credit risk to the
Fund since futures are exchange-traded and the exchange's clearinghouse, as
counterparty to all exchange-traded futures, guarantees the futures against
default. The average value of contracts open during the year ended November
30, 2015 was $(6,976,290). At November 30, 2015, the Fund had no open
futures contracts.
K. Total Return Swap Agreements
The Fund may enter into a total return swap contracts to attempt to manage
and/or gain exposure to a security or market. Pursuant to a total return
swap contracts, the Fund negotiates with a counterparty to exchange a
periodic stream of payments. One party makes payments based on the total
return of a reference asset (such as a security or a basket of securities
or securities index), and in return receives fixed or floating rate
interest payments. The total return of the reference asset typically
includes appreciation or depreciation on the reference asset, plus any
interest or dividend payments. To the extent that the total return of the
reference asset exceeds or falls short of the offsetting interest rate
obligation, the Fund will receive a payment from or make a payment to the
counterparty.
Total return swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made are recorded as realized
gains or losses in the Statement of Operations. Total return swap contracts
are subject to counterparty risk and unanticipated movements in value of
exchange rates, interest rates, securities or the index.
Pioneer International Equity Fund | Annual Report | 11/30/15 37
The average value of swap contracts open during the year ended November 30,
2015 was $199,082. At November 30, 2015, the Fund had no open total return
swap contracts.
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, 2015, 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 contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.45% and 2.35%, of the average daily net
assets attributable to Class A and Class C shares, respectively. These expense
limitations are in effect through April 1, 2017. There can be no assurance that
PIM will extend the expense limitation agreement for a class of shares beyond
the date referred to above. Fees waived and expenses reimbursed during the year
ended November 30, 2015 are reflected on the Statement of Operations. Class Y
shares do not have an expense limitation.
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
$20,858 in management fees, administrative costs and certain other
reimbursements payable to PIM at November 30, 2015.
3. Transfer Agent
Prior to November 2, 2015, Pioneer Investment Management Shareholder Services,
Inc. (PIMSS), a wholly owned indirect subsidiary of UniCredit, provided
substantially all transfer agent and shareowner services to the Fund at
negotiated rates.
Effective November 2, 2015, Boston Financial Data Services serves as the
transfer agent to the Fund at negotiated rates.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings, outgoing phone calls and omnibus
relationship contracts. For the year ended November 30, 2015, such out-of-pocket
expenses by class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $101,950
Class C 12,900
--------------------------------------------------------------------------------
Total $114,850
--------------------------------------------------------------------------------
38 Pioneer International Equity Fund | Annual Report | 11/30/15
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $41,150 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at November 30, 2015.
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 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 C shares. The fee for 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 C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $4,292 in distribution fees payable to
PFD at November 30, 215.
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. 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 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, 2015, CDSCs in the amount of $16,058 were paid to PFD.
5. Expense Offset Arrangements
The Fund entered into certain expense offset arrangements with PIMSS. For the
year ended November 30, 2015, the Fund's expenses were not reduced under such
arrangements.
6. Forward Foreign Currency Contracts
During the year ended November 30, 2015, 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, 2015, was $(423,061). There are no open forward foreign currency contracts
at November 30, 2015.
Pioneer International Equity Fund | Annual Report | 11/30/15 39
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 in effect until June 9, 2015, was in the amount of $215 million.
As of June 9, 2015, the facility is in the amount of $240 million. Under such
facility, depending on the type of loan, interest on borrowings is payable at
the London Interbank Offered Rate (LIBOR) plus 0.85% 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
Eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in 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, 2015, the Fund had no borrowings
under the credit facility.
8. Additional Disclosures about Derivative Instruments and Hedging Activities
The Fund's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
40 Pioneer International Equity Fund | Annual Report | 11/30/15
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at November 30, 2015, was as follows:
------------------------------------------------------------------------------------------
Foreign
Statement of Interest Credit Exchange Commodity
Operations Rate Risk Risk Rate Risk Equity Risk Risk
------------------------------------------------------------------------------------------
Net realized gain
(loss) on:
Swap contracts $ -- $ -- $ -- $ 2,539,566 $ --
Futures contracts -- -- -- (3,519,046) --
Forward foreign
currency contracts* -- -- 18,231 -- --
------------------------------------------------------------------------------------------
Total Value $ -- $ -- $18,231 $ (979,480) $ --
==========================================================================================
Change in net unrealized
appreciation
(depreciation) on:
Swap contracts $ -- $ -- $ -- $ (427,999) $ --
Futures contracts -- -- -- 973,106 --
Forward foreign
currency contracts* -- -- 778 -- --
------------------------------------------------------------------------------------------
Total Value $ -- $ -- $ 778 $ 545,107 $ --
==========================================================================================
* Included in the amount shown on the Statement of Operations as forward
foreign currency contracts and other assets and liabilities denominated in
foreign currencies.
Pioneer International Equity Fund | Annual Report | 11/30/15 41
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Pioneer Series Trust VIII and the Shareowners of
Pioneer International Equity Fund (formerly, Pioneer International Value Fund):
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer International Equity Fund (formerly,
Pioneer International Value Fund), as of November 30, 2015, and the related
statement of operations for the year then ended and the statements of changes in
net assets and the financial highlights for each of the two years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for the years ended November 30, 2013, 2012,
and 2011 were audited by other auditors. Those auditors expressed an unqualified
opinion on those financial statements and financial highlights in their report
dated January 24, 2014.
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. The Fund
is not required to have, nor were we engaged to perform, an audit of its
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, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of November 30, 2015, by correspondence with the
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. 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 Equity Fund as of November 30, 2015, the results of its
operations for the year then ended and the changes in its net assets and the
financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 21, 2016
42 Pioneer International Equity Fund | Annual Report | 11/30/15
Additional Information (unaudited)
PIM, the Fund's investment adviser, is currently an indirect, wholly owned
subsidiary of UniCredit. On November 11, 2015, UniCredit announced that it
signed a binding master agreement with Banco Santander and affiliates of Warburg
Pincus and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as previously announced by UniCredit, will establish a holding
company, with the name Pioneer Investments, to be owned by UniCredit (50%) and
the Private Equity Firms (50% between them). The holding company will control
Pioneer's U.S. operations, including the Adviser. The holding company also will
own 66.7% of Pioneer's and SAM's combined operations outside the U.S., while
Banco Santander will own directly the remaining 33.3% stake. The closing of the
Transaction is expected to happen in 2016, subject to certain regulatory and
other approvals.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's current investment advisory agreement with PIM to terminate.
Accordingly, the Fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, the Fund's new
investment advisory agreement will be submitted to the shareholders of the Fund
for their approval.
Pioneer International Equity Fund | Annual Report | 11/30/15 43
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer International Equity Fund (formerly, 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 January 2015 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings in connection with the review of the Fund's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2015,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, 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 approving the
renewal of the investment advisory agreement, the Trustees
44 Pioneer International Equity Fund | Annual Report | 11/30/15
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the 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 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 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
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
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
Pioneer International Equity Fund | Annual Report | 11/30/15 45
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. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year 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 most recent fiscal year was
in the fourth quintile relative to its Morningstar peer group and in the fourth
quintile relative its Strategic Insight peer group, in each case for the
comparable period. The Trustees considered that the expense ratio of the Fund's
Class Y shares for the most recent fiscal year was in the fourth quintile
relative to its Morningstar peer group and in the fourth quintile relative its
Strategic Insight peer group, in each case for the comparable period. 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
relatively small asset size compared to most of the other funds in its peer
groups, and that the Fund has not been able to take advantage of the economies
of scale afforded by greater asset size. 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 considered that such non-management fee operating
expenses generally are spread over a smaller asset base than the other funds in
the peer group, which results in these fees being significantly higher as a
percentage of assets. 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 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
46 Pioneer International Equity Fund | Annual Report | 11/30/15
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 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
to the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
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, 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 including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
Pioneer International Equity Fund | Annual Report | 11/30/15 47
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. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its relationship with the Funds were
reasonable and their consideration of the advisory agreement between the Fund
and PIM and the fees thereunder were unaffected by Pioneer's possible receipt of
any such intangible benefits.
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.
48 Pioneer International Equity Fund | Annual Report | 11/30/15
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at 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 below, 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 serves as a trustee of
each of the 50 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "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 Equity Fund | Annual Report | 11/30/15 49
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 (65) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge Financial
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Solutions, Inc. (investor
and Trustee successor trustee Executive Officer (2008 - 2012), Quadriserv, communications and securities
is elected or Inc. (technology products for securities lending processing provider for
earlier retirement industry); and Senior Executive Vice President, financial services industry)
or removal. The Bank of New York (financial and securities (2009 - present); Director,
services) (1986 - 2004) Quadriserv, Inc. (2005 -
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2005. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - Trust (publicly-traded
successor trustee 2004 and 2008 - present); Interim Chief mortgage REIT) (2004 - 2009,
is elected or Executive Officer, Oxford Analytica, Inc. 2012 - present); Director of
earlier retirement (privately-held research and consulting company) The Swiss Helvetia Fund, Inc.
or removal. (2010); Executive Vice President and Chief (closed-end fund) (2010 -
Financial Officer, I-trax, Inc. (publicly traded present); Director of Oxford
health care services company) (2004 - 2007); and Analytica, Inc. (2008 -
Executive Vice President and Chief Financial present); and Director of
Officer, Pedestal Inc. (internet-based mortgage Enterprise Community
trading company) (2000 - 2002); Private Investment, Inc.
consultant (1995-1997), Managing Director, (privately-held affordable
Lehman Brothers (investment banking firm) housing finance company) (1985
(1992-1995); and Executive, The World Bank - 2010)
(1979-1992)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) 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 Mellon Institutional Funds
is elected or Master Portfolio (oversaw 17
earlier retirement portfolios in fund complex)
or removal. (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
50 Pioneer International Equity Fund | Annual Report | 11/30/15
------------------------------------------------------------------------------------------------------------------------------------
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 (68) Trustee since 1992. Founding Director, Vice President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee firm) (1982 - present); Desautels Faculty of
is elected or Management, McGill University (1999 - present);
earlier retirement and Manager of Research Operations and
or removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (67) 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.
successor trustee (1981 - present) (closed-end investment
is elected or company) (2004 - present);
earlier retirement and Member, Board of
or removal. Governors, Investment
Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee (financial and investment company services)
is elected or (1969 - 2012); Director, BNY International
earlier retirement Financing Corp. (financial services) (2002 -
or removal. 2012); and Director, Mellon Overseas Investment
Corp. (financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer International Equity Fund | Annual Report | 11/30/15 51
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (57)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a 2008) and Chief Investment Officer, U.S. (since
successor trustee is 2010) of PIM-USA; Executive Vice President of
elected or earlier Pioneer (since 2008); Executive Vice President
retirement or of Pioneer Institutional Asset Management, Inc.
removal. (since 2009); and Portfolio Manager of Pioneer
(since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
52 Pioneer International Equity Fund | Annual Report | 11/30/15
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine Monchak (59)** Advisory Trustee Chief Investment Officer, 1199 SEIU Funds Trustee of Pioneer
Advisory Trustee since 2014. (healthcare workers union pension funds) (2001 - closed-end investment
present); Vice President - International companies (5 portfolios)
Investments Group, American International Group, (Sept. 2015 - present)
Inc. (insurance company) (1993 - 2001); Vice
President Corporate Finance and Treasury Group,
Citibank, N.A.(1980 - 1986 and 1990 - 1993);
Vice President - Asset/Liability Management
Group, Federal Farm Funding Corporation
(government-sponsored issuer of debt securities)
(1988 - 1990); Mortgage Strategies Group,
Shearson Lehman Hutton, Inc. (investment bank)
(1987 - 1988); and Mortgage Strategies Group,
Drexel Burnham Lambert, Ltd. (investment bank)
(1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
Pioneer International Equity Fund | Annual Report | 11/30/15 53
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves Chair, Director, CEO and President of Pioneer Trustee of Pioneer closed-end
President and Chief at the discretion of Investment Management-USA (since September investment companies (5
Executive Officer the Board. 2014); Chair, Director, CEO and President of portfolios) (Sept. 2015 -
Pioneer Investment Management, Inc. (since present)
September 2014); Chair, Director, CEO and
President of Pioneer Funds Distributor, Inc.
(since September 2014); Chair, Director, CEO
and President of Pioneer Institutional Asset
Management, Inc. (since September 2014); and
Chair, Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc. (since
September 2014); Managing Director, Morgan
Stanley Investment Management (2010 - 2013);
and Director of Institutional Business, CEO of
International, Eaton Vance Management (2005 -
2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2003. Serves Vice President and Associate General Counsel of None
Secretary and Chief at the discretion of Pioneer since January 2008; Secretary and Chief
Legal Officer the Board. Legal Officer of all of the Pioneer Funds since
June 2010; Assistant Secretary of all 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 (54) Since 2010. Serves Fund Governance Director of Pioneer since None
Assistant Secretary at the discretion of December 2006 and Assistant Secretary of all
the Board. the Pioneer 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 (53) Since 2010. Serves Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary at the discretion of Assistant Secretary of all the Pioneer Funds
the Board. since June 2010; and Counsel of Pioneer from
June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
54 Pioneer International Equity Fund | Annual Report | 11/30/15
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (56) Since 2008. Serves Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief at the discretion of Treasurer of all of the Pioneer Funds since
Financial the Board. March 2008; Deputy Treasurer of Pioneer from
and Accounting Officer March 2004 to February 2008; and Assistant
Treasurer of all of the Pioneer Funds from
March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2000. Serves Director - Fund Treasury of Pioneer; and None
Assistant Treasurer at the discretion of Assistant Treasurer of all of the Pioneer Funds
the Board.
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2002. Serves Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer at the discretion of Pioneer; and Assistant Treasurer of all of the
the Board. Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (36) Since 2009. Serves Fund Administration Manager - Fund Treasury of None
Assistant Treasurer at the discretion of Pioneer since November 2008; Assistant
the Board. Treasurer of 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 (63) Since 2010. Serves Chief Compliance Officer of Pioneer and of all None
Chief Compliance Officer at the discretion of the Pioneer Funds since March 2010; Chief
the Board. Compliance Officer of Pioneer Institutional
Asset Management, Inc. since January 2012;
Chief Compliance Officer of Vanderbilt Capital
Advisors, LLC since July 2012: Director of
Adviser 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 (44) Since 2006. Serves Director - Transfer Agency Compliance of None
Anti-Money Laundering at the discretion of Pioneer and Anti-Money Laundering Officer of
Officer the Board. all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer International Equity Fund | Annual Report | 11/30/15 55
This page for your notes.
56 Pioneer International Equity Fund | Annual Report | 11/30/15
This page for your notes.
Pioneer International Equity Fund | Annual Report | 11/30/15 57
This page for your notes.
58 Pioneer International Equity Fund | Annual Report | 11/30/15
This page for your notes.
Pioneer International Equity Fund | Annual Report | 11/30/15 59
This page for your notes.
60 Pioneer International Equity Fund | Annual Report | 11/30/15
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:
--------------------------------------------------------------------------------
Pioneer Funds
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) 2016 Pioneer Investments 19448-09-0116
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:
The audit fees for the Fund were $31,289
payable to Deloitte & Touche LLP for the year ended
November 30, 2015 and $31,030 for the year ended November 30, 2015.
(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.
There were no audit-related services in 2015 or 2014.
(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:
The tax fees for the Fund were $7,100
payable to Deloitte & Touche LLP for the year ended
November 30, 2015 and $7,100 for the year ended November 30, 2014.
(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.
There were no other fees in 2015 or 2014.
(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 2015 and 2014, 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 were $7,100
payable to Deloitte & Touche LLP for the year ended
November 30, 2015 and $7,100 for the year ended November 30, 2014.
(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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 29, 2016
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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 29, 2016
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date January 29, 2016
* Print the name and title of each signing officer under his or her signature.