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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 811-06151
Pioneer Europe Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2003 through April 30, 2004
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
PIONEER
----------
EUROPE
FUND
Semiannual
Report
4/30/04
[LOGO] PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 8
Schedule of Investments 12
Financial Statements 18
Notes to Financial Statements 27
Trustees, Officers and Service Providers 34
The Pioneer Family of Mutual Funds 35
Programs and Services for Pioneer Shareowners 36
Pioneer Europe Fund
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 4/30/04
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
Last year's stock market rally carried over into early 2004 but ran out of steam
as investors reassessed the dramatic rise in stock valuations. The
technology-rich NASDAQ Composite Index, having risen the fastest, was the first
to feel pressure; the Dow Jones Industrial Average and Standard & Poor's 500
soon gave up some gains as well. Heading into April, these major indicators were
little changed from year-end levels but well ahead of where they stood a year
ago.
In general terms, smaller companies outperformed large companies and emerging
markets outpaced developed countries, as both benefited from weakness in the
U.S. dollar. Corporate bonds, here and overseas, recorded strong gains. U.S.
Treasury issues also performed well, as the Federal Reserve Board signaled that
it was in no hurry to raise interest rates, given the mixed economic data it was
seeing.
Those mixed economic reports were also responsible for the stock market's
sluggishness. While corporate profits expanded at a healthy rate, unemployment
remained high and consumer confidence dropped sharply in February. Increased
productivity, a company's ability to produce more goods or services for each
hour worked, was a major factor in the disappointing pace of job creation.
However, jobs data improved markedly in March when the government reported U.S.
employers added over 300,000 jobs, the largest figure in years; at the same
time, January and February numbers were revised upward. Payroll expansion
reached into most sectors, while employment held steady in manufacturing after a
long period of declines. The markets reacted positively to the jobs report. We
believe that renewed hiring means companies are optimistic about the outlook for
profits in the months ahead. In fact, many businesses are building up
inventories in expectation of increased product demand.
The key drivers of the expansion, low interest rates and reduced federal income
taxes, remain in place. Consequently, we think the U.S. economy retains
impressive growth potential through the rest of this year. An expanding economy
could have implications for the way your portfolio is balanced, so an
appointment with your professional financial advisor may well be in order.
More growth choices from Pioneer
When you talk to your adviser, ask to hear about the Pioneer Oak Ridge and
Pioneer Papp Funds. These six additions to our product lineup are designed to
broaden your opportunities to pursue growth. Please consider each fund's
investment objectives, risks, charges and expenses carefully before investing.
The prospectus contains this and other information about each fund and should be
read carefully before you invest or send money. To obtain a prospectus and for
other information on any Pioneer fund, call 1-800-225-6292 or visit our website
at www.pioneerfunds.com.
Respectfully,
/s/ Osbert M. Hood
- -----------------------------------
Osbert M. Hood, President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer Europe Fund
PORTFOLIO SUMMARY 4/30/04
Portfolio Diversification
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(As a percentage of total investment portfolio)
[REPRESENTATION OF PIE CHART]
International Common Stocks 98.9%
Preferred International Stocks 1.1%
Geographical Distribution
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(As a percentage of equity holdings)
[REPRESENTATION OF LINE CHART]
United Kingdom 29.7%
France 21.2%
Switzerland 12.8%
Germany 11.1%
Netherlands 7.4%
Italy 5.9%
Spain 3.6%
Ireland 3.0%
Sweden 2.7%
Finland 1.6%
Belgium 1.0%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Vodafone Group Plc 4.67%
2. BP Amoco Plc 4.49
3. Total SA 3.14
4. Nestle SA (Registered Shares) 2.97
5. Eni S.p.A. 2.94
6. AstraZeneca Plc 2.94
7. BNP Paribas SA 2.81
8. HSBC Holding Plc 2.75
9. Zurich Financial Services 2.56
10. Royal Bank of Scotland Group Plc. 2.45
*This list excludes money market and derivative investments. Fund holdings will
vary for other periods.
2
Pioneer Europe Fund
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PERFORMANCE UPDATE 4/30/04 CLASS A SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 4/30/04 10/31/03
$25.21 $22.66
Net
Distributions per Share Investment Short-Term Long-Term
(11/1/03 - 4/30/04) Income Capital Gains Capital Gains
$0.0927 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Fund at public offering price, compared to
that of the Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of April 30, 2004)
Net Asset Public Offering
Period Value Price*
10 Years 6.62 5.99
5 Years -3.13 -4.27
1 Year 28.06 20.67
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period.
[REPRESENTATION OF MOUNTAIN CHART]
Value of $10,000 Investment+
Pioneer Europe MSCI Europe
Date Fund* Index
"4/94" 9,425 10,000
9,983 10,309
"10/95" 11,492 11,672
13,538 13,709
"10/97" 17,369 17,272
19,888 21,256
"10/99" 21,680 23,919
23,160 24,143
"10/01" 16,159 18,628
13,719 16,040
16,025 19,917
"4/04" 17,894 22,481
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For
performance data that is current to the most recent month-end, please call
1-800-225-6292 or visit our website www.pioneerfunds.com.
+ The Morgan Stanley Capital International (MSCI) Europe Index is a
capitalization-weighted index of the 15 European country indexes included in
the MSCI EAFE (Europe, Australasia, Far East) Index. These countries are:
Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy,
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United
Kingdom. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Index.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
3
Pioneer Europe Fund
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PERFORMANCE UPDATE 4/30/04 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/04 10/31/03
$23.16 $20.85
Net
Distributions per Share Investment Short-Term Long-Term
(11/1/03 - 4/30/04) Income Capital Gains Capital Gains
$ - $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Fund, compared to that of the Morgan Stanley
Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of April 30, 2004)
If If
Period Held Redeemed*
10 Years 5.69% 5.69%
5 Years -4.06 -4.25
1 Year 26.70 22.70
All returns reflect reinvestment of
distributions at net asset value.
* Reflects deduction of the maximum
applicable contingent deferred sales
charge (CDSC) at the end of the period.
The maximum CDSC of 4% declines to zero over six years.
[REPRESENTATION OF MOUNTAIN CHART]
Value of $10,000 Investment+
Pioneer Europe MSCI Europe
Date Fund* Index
"4/94" 10,000 10,000
10,539 10,309
"10/95" 12,060 11,672
14,089 13,709
"10/97" 17,493 17,272
20,367 21,256
"10/99" 22,021 23,919
23,322 24,143
"10/01" 16,106 18,628
13,545 16,040
15,655 19,917
"4/04" 17,390 22,481
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For
performance data that is current to the most recent month-end, please call
1-800-225-6292 or visit our website www.pioneerfunds.com.
+ The Morgan Stanley Capital International (MSCI) Europe Index is a
capitalization-weighted index of the 15 European country indexes included in
the MSCI EAFE (Europe, Australasia, Far East) Index. These countries are:
Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy,
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United
Kingdom. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Index.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
4
Pioneer Europe Fund
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PERFORMANCE UPDATE 4/30/04 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
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Net Asset Value
per Share 4/30/04 10/31/03
$23.10 $20.79
Net
Distributions per Share Investment Short-Term Long-Term
(11/1/03 - 4/30/04) Income Capital Gains Capital Gains
$ - $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Fund at public offering price, compared to
that of the Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of April 30, 2004)
If If
Period Held Redeemed*
Life-of-Class
(1/31/96) 4.27% 4.27%
5 Years -4.03 -4.03
1 Year 26.78 26.78
All returns reflect reinvestment of distributions at net asset value.
* The performance of Class C shares does not reflect the 1% front-end sales
charge in effect prior to February 1, 2004. If you paid a 1% sales charge,
your returns would be lower than those shown above. Class C shares held for
less than 1 year are subject to a 1% contingent deferred sales charge.
[REPRESENTATION OF MOUNTAIN CHART]
Value of $10,000 Investment+
Pioneer Europe MSCI Europe
Date Fund* Index
"1/96" 10,000 10,000
11,391 11,232
"10/97" 14,520 14,151
16,509 17,414
"10/99" 17,862 19,596
18,921 19,780
"10/01" 13,077 15,262
10,992 13,141
12,710 16,317
"4/04" 14,122 18,418
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For
performance data that is current to the most recent month-end, please call
1-800-225-6292 or visit our website www.pioneerfunds.com.
+ The Morgan Stanley Capital International (MSCI) Europe Index is a
capitalization-weighted index of the 15 European country indexes included in
the MSCI EAFE (Europe, Australasia, Far East) Index. These countries are:
Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy,
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United
Kingdom. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Index.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
5
Pioneer Europe Fund
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PERFORMANCE UPDATE 4/30/04 CLASS R SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/04 10/31/03
$25.11 $22.67
Net
Distributions per Share Investment Short-Term Long-Term
(11/1/03 - 4/30/04) Income Capital Gains Capital Gains
$0.2025 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Fund, compared to that of the Morgan Stanley
Capital International (MSCI) Europe Index.
Average Annual Total Returns+
(As of April 30, 2004)
If If
Period Held Redeemed*
10 Years 6.15 6.15
5 Years -3.50 -3.50
1 Year 28.11 28.11
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of 1% CDSC. Shares sold within 18 months of purchase may be
subject to CDSC.
[REPRESENTATION OF MOUNTAIN CHART]
Value of $10,000 Investment+
Pioneer Europe MSCI Europe
Date Fund* Index
"4/94" 10,000 10,000
10,560 10,309
"10/95" 12,095 11,672
"10/97" 18,106 17,272
20,624 21,256
"10/99" 22,374 23,919
23,780 24,143
"10/01" 16,506 18,628
13,945 16,040
16,263 19,917
"4/04" 18,160 22,481
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For
performance data that is current to the most recent month-end, please call
1-800-225-6292 or visit our website www.pioneerfunds.com.
+ The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of
Class A shares, reduced to reflect the higher distribution and service fees
of Class R shares. For the period after April 1, 2003, the actual performance
of Class R shares is reflected, which performance may be influenced by the
smaller asset size of Class R shares compared to Class A shares.
++ The Morgan Stanley Capital International (MSCI) Europe Index is a
capitalization-weighted index of the 15 European country indexes included in
the MSCI EAFE (Europe, Australasia, Far East) Index. These countries are:
Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy,
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United
Kingdom. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Index.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
6
Pioneer Europe Fund
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PERFORMANCE UPDATE 4/30/04 CLASS Y SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 4/30/04 10/31/03
$25.94 $23.40
Net
Distributions per Share Investment Short-Term Long-Term
(11/1/03 - 4/30/04) Income Capital Gains Capital Gains
$0.2739 $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Fund, compared to that of the Morgan Stanley
Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of April 30, 2004)
If If
Period Held Redeemed*
Life-of-Class
(7/2/98) -3.71% -3.71%
5 Years -2.54 -2.54
1 Year 28.96 28.96
[REPRESENTATION OF MOUNTAIN CHART]
Value of $10,000 Investment+
Pioneer Europe MSCI Europe
Date Fund* Index
"7/98" 10,000 10,000
8,458 9,064
9,269 10,199
"10/00" 9,950 10,295
6,973 7,943
"10/02" 5,960 6,840
7,015 8,494
"4/04" 7,860 9,587
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares,
when redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For
performance data that is current to the most recent month-end, please call
1-800-225-6292 or visit our website www.pioneerfunds.com.
+ Index comparison begins July 31, 1998. The Morgan Stanley Capital
International (MSCI) Europe Index is a capitalization-weighted index of the 15
European country indexes included in the MSCI EAFE (Europe, Australasia, Far
East) Index. These countries are: Austria, Belgium, Denmark, Finland, France,
Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect any
fees, expenses or sales charges. You cannot invest directly in the Index.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
7
Pioneer Europe Fund
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PORTFOLIO MANAGEMENT DISCUSSION 4/30/04
- --------------------------------------------------------------------------------
European stocks continued their rally during the six months ended April 30,
2004, which constituted the first half of Pioneer Europe Fund's fiscal year.
During this time, we saw signs of renewed interest in and a rotation back toward
higher-quality investments. However, the pace of economic recovery is being
tempered by higher oil prices and expectations of rising interest rates. In the
following interview, Stan Pearson, a member of the Fund's portfolio management
team, discusses the overarching factors facing investors during the reporting
period and his continuing efforts to position the Fund for positive growth.
Q: How did the Fund perform during the six months ended April 30, 2004?
A: Reflecting a notable improvement in business confidence and economic growth
across Europe, the Fund performed well in absolute terms. For the six months
ended April 30, 2004, the Fund's Class A, B and C shares returned 11.67%,
11.08% and 11.11% at net asset value, respectively. The Fund's investments in
cyclical sectors, such as automobiles and capital goods, performed well in
November and December, while January saw a rally in its technology holdings.
In March and April, investors shifted their focus away from the more cyclical
areas of the stock market toward the utilities, energy and telecom sectors,
which benefited the Fund.
One of the more positive contributors to performance was the Fund's
investment in Zurich Financial (Switzerland), which we purchased during the
reporting period. This company, which is benefiting from an improving outlook
for the insurance sector, had an attractive valuation at the time of purchase
and outperformed both the sector and the broader equity market. In the energy
sector, we sold investments in Royal Dutch Petroleum (Holland) and Shell
Transport & Trading (United Kingdom) and reinvested the proceeds in BP Amoco
(United Kingdom) - a decision that proved successful. BP Amoco is benefiting
from its substantial production growth thanks to past investments.
Furthermore, the company is carrying a lot of cash, which it may use to
increase returns to its shareholders through dividends or share buy-back
programs. Additionally the company may reinvest the proceeds from the high
price of oil. Elsewhere in the sector, oil and gas producer Eni (Italy)
outperformed thanks to its attractive valuation and exposure to rising oil
prices.
8
Pioneer Europe Fund
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Investments in food giant Nestle (Switzerland) appreciated strongly as a
result of market share growth and rising profit margins. Finally, European
small-sized companies outperformed during the six months. The portfolio
benefited from such small-capitalization holdings as medical equipment
manufacturer Getinge (Sweden), pharmaceutical distributor Celesio (Germany)
and Depfa Bank (Germany), which specializes in low-risk loans to the German
government and other public sector institutions.
Q: How did the Fund's performance compare to its benchmark?
A: On a relative basis, the Fund underperformed its benchmark, the Morgan
Stanley Capital International (MSCI) Europe Index, which posted a return of
12.87% for the six months ended April 30. Several factors contributed to the
modest underperformance. First, mobile phone and network manufacturer Nokia
(Finland) surprised the market with two profit warnings and disappointing
results. Secondly, unlike the benchmark, the Fund didn't own pharmaceutical
Aventis, which rose sharply after a takeover bid from Sanofi. The Fund did
hold Sanofi (France), but investors penalized the company for its decision to
bid for Aventis. We think that this situation is temporary and will hold onto
Sanofi, because we believe the merger will create appreciation potential.
Elsewhere in the pharmaceutical sector, investments in GlaxoSmithKline
(United Kingdom) underperformed when the company released disappointing first
quarter results. The company was recovering in the final months of the
reporting period. Finally, while our decision to overweight investments in
the capital goods sector proved successful, our stock selection was a bit
disappointing. Swedish engineering companies Sandvik, Atlas Copco and SKF had
absolute positive performance, but underperformed other companies in the
capital goods sector that rallied more strongly on optimism about
restructuring programs.
Q: Is the higher cost of oil having an impact on the recovery?
A: We're watching the situation closely, because European stocks could react
negatively if oil prices continue to climb sharply, which, in turn, could
weaken European economic growth and consumer confidence. In early May, oil
prices hit a 13-year high. If this trend continues, oil-sensitive industries,
such as chemicals, airlines,
9
Pioneer Europe Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/04 (continued)
- --------------------------------------------------------------------------------
leisure and autos, could suffer disproportionately. However, we don't think
oil prices will stay at these levels. We think we're seeing more of a
short-term spike.
Q: Given current market conditions in European markets, how are you positioning
the portfolio?
A: We continue to overweight investments in the capital goods sector. We think
this sector will benefit from increasing levels of capital expenditure as
global demand increases and companies become more confident. Schneider
Electric (Germany), ACS (Spain) and Saint Gobain (France) exemplify our
strategy.
We're limiting positions in the technology hardware and software sector,
because we believe stock prices of many of these companies are inflated and
already reflecting future growth. In the telecommunications sector, we've
uncovered interesting companies but prefer operators with a high level of
exposure to the European mobile market, which continues to generate
attractive growth. The imminent rollout of third-generation mobile technology
across Europe may prove successful and has not been discounted in today's
share prices. The portfolio's prominent holdings in the sector include
Belgacom (Belgium) and Vodafone (United Kingdom) - the Fund's largest holding
on April 30.
In the pharmaceutical sector, we think a host of high-quality companies are
trading at attractive valuations. We'll continue to hold Sanofi, which should
enjoy synergies through its merger with Aventis, in addition to a
well-diversified drug portfolio and an improved presence in the critical U.S.
market. Other holdings include Roche Holdings (Switzerland) and AstraZeneca
(United Kingdom). Both of these pharmaceuticals offer a selection of high
potential new treatments in the late stage of development, which should
positively impact future sales and earnings growth potential.
Q: Could you update us on the euro?
A: Certainly. After two years of appreciation versus the U.S. dollar, it is
probable that we are entering into a period of greater stability in the
exchange rate. We believe there is room for some further moderate
appreciation of the euro versus the dollar. European companies have coped
well with the challenges presented by a stronger
10
Pioneer Europe Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
currency - cutting costs or hedging currency exposure without suffering
dramatic effects on earnings.
Q: Do European equities still represent an attractive investment strategy?
A: Absolutely. Many European companies have successfully restructured over
recent years, reducing debt and increasing cash flow. The companies are
currently flush with a substantial amount of cash, which we anticipate will
be used in the coming months to purchase attractively priced companies or to
increase their capital expenditure in their own businesses. In some cases,
companies may use the cash to raise dividends or initiate share buy-back
programs. All of these actions bode well for the near- and medium-term
outlook for European stock prices.
Q: What is your outlook?
A: We think European equities are poised to continue to perform well versus
other asset classes. The global economic recovery is well underway, led by
the strong U.S. economy. The European economy continues to demonstrate a less
robust pace of economic growth, but stock price valuations in Europe's equity
markets remain attractive and fully reflect the moderate pace of growth in
the region. A relatively high level of dividend yield and a low cost of
borrowing also support the favorable valuations.
The early phase of the recovery has clearly favored low-quality, highly
leveraged companies rebounding from multi-year lows. The rebound of
low-quality companies was closely linked to improvements in credit conditions
and a reassessment of risk tolerance by investors - common in the early
phases of a recovery. We believe that 2004 is likely to be a year of
transition towards a greater focus on higher-quality companies with strong
cash flow, solid balance sheets and attractive dividends, such as those
constituting your portfolio.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
11
Pioneer Europe Fund
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SCHEDULE OF INVESTMENTS 4/30/04 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
PREFERRED STOCK - 1.1%
Automobiles & Components - 1.1%
Automobile Manufacturers - 1.1%
3,163 Porsche AG Designs $ 1,960,453
------------
TOTAL PREFERRED STOCK
(Cost $896,977) $ 1,960,453
------------
COMMON STOCKS - 97.5%
Energy - 10.4%
Integrated Oil & Gas - 7.3%
910,422 BP Amoco Plc $ 7,883,421
254,326 Eni S.p.A. 5,165,909
------------
$ 13,049,330
------------
Oil & Gas Refining Marketing & Transportation - 3.1%
29,819 Total SA $ 5,510,477
------------
Total Energy $ 18,559,807
------------
Materials - 6.1%
Commodity Chemicals - 1.4%
47,994 BASF India, Ltd. $ 2,473,941
------------
Construction Materials - 3.0%
130,583 CRH Plc $ 2,783,792
30,340 Lafarge SA 2,525,402
------------
$ 5,309,194
------------
Diversified Metals & Mining - 1.7%
71,110 Rio Tinto Plc $ 1,559,710
44,206 Sandvik AB 1,438,229
------------
$ 2,997,939
------------
Total Materials $ 10,781,074
------------
Capital Goods - 6.7%
Aerospace & Defense - 1.4%
382,852 Bae Systems $ 1,423,204
40,025 European Aeronautic Defence 1,011,449
------------
$ 2,434,653
------------
Construction & Engineering - 2.7%
47,379 ACS, Actividades de Construccion y Servicios, SA $ 2,299,814
47,875 Compagnie de Saint Gobain 2,415,057
------------
$ 4,714,871
------------
The accompanying notes are an integral part of these financial statements.
12
Pioneer Europe Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Electrical Components & Equipment - 1.4%
37,410 Schneider Electric SA $ 2,517,991
------------
Industrial Machinery - 1.2%
24,497 Atlas Copco AB $ 859,544
39,227 SKF AB 1,345,571
------------
$ 2,205,115
------------
Total Capital Goods $ 11,872,630
------------
Commercial Services & Supplies - 1.2%
Diversified Commercial Services - 1.2%
103,268 TNT Post Group NV $ 2,224,985
------------
Total Commercial Services & Supplies $ 2,224,985
------------
Automobiles & Components - 1.0%
Auto Parts & Equipment - 1.0%
38,323 Compagnie Generale
des Etablissements Michelin* $ 1,791,841
------------
Total Automobiles & Components $ 1,791,841
------------
Hotels, Restaurants & Leisure - 1.6%
Restaurants - 1.6%
215,395 Compass Group Plc $ 1,356,801
109,160 GUS Plc 1,512,748
------------
$ 2,869,549
------------
Total Hotels, Restaurants & Leisure $ 2,869,549
------------
Media - 3.7%
Advertising - 0.7%
38,641 Publicis SA $ 1,156,961
------------
Publishing - 3.0%
144,944 Elsevier NV $ 2,034,502
97,585 Vivendi Universal* 2,453,159
31,391 VNU NV 877,478
------------
$ 5,365,139
------------
Total Media $ 6,522,100
------------
Retailing - 1.1%
Department Stores - 0.6%
24,172 Metro AG $ 1,070,846
------------
The accompanying notes are an integral part of these financial statements.
13
Pioneer Europe Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Specialty Stores - 0.5%
318,840 MFI Furniture Group Plc * $ 889,643
------------
Total Retailing $ 1,960,489
------------
Food & Drug Retailing - 4.7%
Food Retail - 4.7%
168,822 Koninklijke Ahold NV * $ 1,306,146
20,624 Nestle SA (Registered Shares) 5,211,210
406,019 Tesco Plc 1,802,904
------------
$ 8,320,260
------------
Total Food & Drug Retailing $ 8,320,260
------------
Food, Beverage & Tobacco - 1.6%
Tobacco - 1.6%
190,829 British American Tobacco Plc $ 2,898,480
------------
Total Food, Beverage & Tobacco $ 2,898,480
------------
Health Care Equipment & Services - 1.4%
Health Care Distributors - 0.7%
22,546 Celesio AG $ 1,255,874
------------
Health Care Equipment - 0.7%
101,017 Getinge AB (B Shares) $ 1,163,851
------------
Total Health Care Equipment & Services $ 2,419,725
------------
Pharmaceuticals & Biotechnology - 9.9%
Pharmaceuticals - 9.9%
110,039 AstraZeneca Plc $ 5,162,502
173,668 GlaxoSmithKline Plc 3,599,273
41,068 Novartis AG 1,828,619
35,418 Roche Holdings AG 3,710,691
36,515 Sanofi-Synthelabo SA 2,317,807
19,002 Schering AG 997,928
------------
$ 17,616,820
------------
Total Pharmaceuticals & Biotechnology $ 17,616,820
------------
Banks - 14.7%
Diversified Banks - 14.7%
107,889 Allied Irish Banks Plc $ 1,554,436
132,799 Banco Bilbao Vizcaya Argentaria SA 1,751,105
402,316 Barclays Plc 3,633,601
The accompanying notes are an integral part of these financial statements.
14
Pioneer Europe Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Diversified Banks (continued)
82,101 BNP Paribas SA $ 4,926,249
103,789 Credit Agricole SA* 2,558,155
50,406 CS Group* 1,774,558
5,744 Depfa Bank Plc 859,844
336,915 HSBC Holding Plc 4,830,408
142,662 Royal Bank of Scotland Group Plc 4,293,251
------------
$ 26,181,607
------------
Total Banks $ 26,181,607
------------
Diversified Financials - 8.5%
Diversified Financial Services - 8.5%
15,601 Deutsche Bank AG $ 1,284,563
42,125 Deutsche Boerse AG 2,314,693
30,007 Euronext* 872,213
80,286 ING Groep NV 1,719,244
40,959 Societe Generale AG* 3,409,293
18,488 Swiss Re 1,214,873
60,478 UBS AG 4,293,234
------------
$ 15,108,113
------------
Total Diversified Financials $ 15,108,113
------------
Insurance - 5.6%
Life & Health Insurance - 0.8%
51,755 Assicurazioni Generali $ 1,365,517
------------
Multi-Line Insurance - 4.1%
132,978 AXA SA* $ 2,798,219
28,397 Zurich Financial Services* 4,484,543
------------
$ 7,282,762
------------
Reinsurance - 0.7%
38,718 Hannover Rueckversicheru* $ 1,328,983
------------
Total Insurance $ 9,977,262
------------
Software & Services - 0.6%
IT Consulting & Other Services - 0.6%
17,038 Atos Origin* $ 986,609
------------
Total Software & Services $ 986,609
------------
The accompanying notes are an integral part of these financial statements.
15
Pioneer Europe Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Technology Hardware & Equipment - 5.7%
Semiconductors - 1.6%
104,786 Philips Electronics NV $ 2,851,292
------------
Communications Equipment - 1.6%
201,179 Nokia Oyj $ 2,828,661
------------
Computer Hardware - 0.7%
475,118 Dixons Group Plc $ 1,310,944
------------
Electronic Equipment & Instruments - 1.8%
44,490 Siemens AG $ 3,210,330
------------
Total Technology Hardware & Equipment $ 10,201,227
------------
Telecommunication Services - 10.0%
Alternate Carriers - 1.0%
72,184 France Telecom $ 1,740,263
------------
Integrated Telecommunication Services - 4.4%
56,514 Belgacom SA* $ 1,712,406
238,014 Telecom Italia Mobile S.p.A.* 1,351,173
758,367 Telecom Italia S.p.A.* 2,425,051
155,440 Telefonica SA 2,310,281
------------
$ 7,798,911
------------
Wireless Telecommunication Services - 4.6%
3,362,002 Vodafone Group Plc $ 8,187,710
------------
Total Telecommunication Services $ 17,726,884
------------
Utilities - 3.0%
Electric Utilities - 3.0%
54,676 E.On AG $ 3,621,196
234,287 National Grid Transco Plc 1,780,111
------------
$ 5,401,307
------------
Total Utilities $ 5,401,307
------------
TOTAL COMMON STOCKS
(Cost $146,159,843) $173,420,769
------------
The accompanying notes are an integral part of these financial statements.
16
Pioneer Europe Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
RIGHTS/WARRANTS - 0.0%
Diversified Financials - 0.0%
Diversified Financial Services - 0.0%
80,286 ING Groep NV Rights, 5/18/04 $ 47,116
------------
TOTAL RIGHTS/WARRANTS
(Cost $0) $ 47,116
------------
TOTAL INVESTMENT IN SECURITIES - 98.6%
(Cost $147,056,820)(a)(b)(c) $175,428,338
------------
OTHER ASSETS AND LIABILITIES - 1.4% $ 2,421,045
------------
TOTAL NET ASSETS - 100.0% $177,849,383
============
* Non-income producing security.
(a) Distribution of investments by country of issue, as a percentage of total
equity holdings is as follows:
United Kingdom 29.7%
France 21.2
Switzerland 12.8
Germany 11.1
Netherlands 7.4
Italy 5.9
Spain 3.6
Ireland 3.0
Sweden 2.7
Finland 1.6
Belgium 1.0
-----
Total 100.0%
=====
(b) At April 30, 2004, the net unrealized gain on investments based on cost for
federal income tax purposes of $149,727,594 was as follows:
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $27,897,544
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (2,196,800)
-----------
Net unrealized gain $25,700,744
===========
(c) At October 31, 2003, the Fund had a net capital loss carryforward of
$70,123,211 of which the following amounts will expire between 2008 and
2011, if not utilized:
$5,276,444 in 2008
$27,419,760 in 2009
$23,790,437 in 2010
$13,636,570 in 2011
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2004 aggregated $54,160,905 and $70,086,045,
respectively.
The accompanying notes are an integral part of these financial statements.
17
Pioneer Europe Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 4/30/04 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (cost $147,056,820) $175,428,338
Cash 1,918,159
Receivables -
Fund shares sold 22,049
Dividends, interest and foreign taxes withheld 1,123,744
Other 2,492
-------------
Total assets $178,494,782
-------------
LIABILITIES:
Payables -
Fund shares repurchased $ 206,101
Due to affiliates 327,435
Accrued expenses 111,863
-------------
Total liabilities $ 645,399
-------------
NET ASSETS:
Paid-in capital $213,572,073
Accumulated net investment loss (39,717)
Accumulated net realized loss on investments and foreign
currency transactions (64,076,557)
Net unrealized gain on investments 28,371,518
Net unrealized gain on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 22,066
-------------
Total net assets $177,849,383
=============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $117,806,859/4,673,532 shares) $ 25.21
=============
Class B (based on $46,064,613/1,988,974 shares) $ 23.16
=============
Class C (based on $11,833,552/512,256 shares) $ 23.10
=============
Class R (based on $20,612/821 shares) $ 25.11
=============
Class Y (based on $2,123,747/81,868 shares) $ 25.94
=============
MAXIMUM OFFERING PRICE:
Class A ($25.21 [divided by] 94.25%) $ 26.75
=============
Class C ($23.10 [divided by] 99.00%) $ 23.33
=============
The accompanying notes are an integral part of these financial statements.
18
Pioneer Europe Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/04
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $266,475) $ 1,906,723
Interest 25,493
-----------
Total investment income $ 1,932,216
-----------
EXPENSES:
Management fees $ 925,104
Transfer agent fees
Class A 288,232
Class B 177,515
Class C 46,184
Class R 8
Class Y 134
Distribution fees
Class A 151,614
Class B 243,751
Class C 63,864
Class R 15
Administrative fees 24,572
Custodian fees 34,171
Registration fees 59,436
Professional fees 33,670
Printing (77,946)
Fees and expenses of nonaffiliated trustees 3,094
Miscellaneous 1,469
-----------
Total expenses $ 1,974,887
Less fees paid indirectly (3,373)
-----------
Net expenses $ 1,971,514
-----------
Net investment loss $ (39,298)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 8,883,256
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (165,828) $ 8,717,428
----------- -----------
Change in net unrealized gain (loss) on:
Investments $11,093,748
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (32,768) $11,060,980
----------- -----------
Net gain on investments and foreign currency
transactions $19,778,408
-----------
Net increase in net assets resulting from operations $19,739,110
===========
The accompanying notes are an integral part of these financial statements.
19
Pioneer Europe Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/04 and the Year Ended 10/31/03
Six Months
Ended
4/30/04 Year Ended
(unaudited) 10/31/03
FROM OPERATIONS:
Net investment income (loss) $ (39,298) $ 717,207
Net realized gain (loss) on investments and foreign
currency transactions 8,717,428 (13,169,625)
Change in net unrealized gain on investments and
foreign currency transactions 11,060,980 39,615,457
------------ -------------
Net increase in net assets resulting from operations $ 19,739,110 $ 27,163,039
------------ -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.09 and $0.00 per share, respectively) $ (450,083) $ -
Class R ($0.20 and $0.00 per share, respectively) (6) -
Class Y ($0.27 and $0.00 per share, respectively) (22,571) -
------------- -------------
Total distributions to shareowners $ (472,660) $ -
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 18,236,619 $189,080,988
Reinvestment of distributions 436,176 -
Cost of shares repurchased (32,579,834) (226,348,321)
------------- -------------
Net decrease in net assets resulting from fund
share transactions $(13,907,039) $(37,267,333)
------------- -------------
Net increase (decrease) in net assets $ 5,359,411 $(10,104,294)
NET ASSETS:
Beginning of period 172,489,972 182,594,266
------------- -------------
End of period (including accumulated net invest-
ment income (loss) of $(39,717) and $472,241
respectively) $177,849,383 $172,489,972
============= =============
The accompanying notes are an integral part of these financial statements.
20
Pioneer Europe Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/04 and the Year Ended 10/31/03
'04 Shares '04 Amount
(unaudited) (unaudited) '03 Shares '03 Amount
CLASS A
Shares sold 510,325 $12,791,593 8,641,097 $167,590,556
Reinvestment of distributions 16,745 416,114 - -
Less shares repurchased (802,842) (20,089,244) (9,673,429) (190,142,083)
-------- ----------- ---------- ------------
Net decrease (275,772) $(6,881,537) (1,032,332) $(22,551,527)
======== =========== ========== ============
CLASS B
Shares sold 86,936 $ 2,047,108 185,386 $ 3,518,231
Less shares repurchased (321,670) (7,507,070) (844,268) (15,582,369)
-------- ----------- ---------- ------------
Net decrease (234,734) $(5,459,962) (658,882) $(12,064,138)
======== =========== ========== ============
CLASS C
Shares sold 140,942 $ 3,267,395 943,312 $ 17,383,577
Less shares repurchased (196,285) (4,573,978) (1,063,578) (19,709,696)
-------- ----------- ---------- ------------
Net decrease (55,343) $(1,306,583) (120,266) $ (2,326,119)
======== =========== ========== ============
CLASS R*
Shares sold 793 $ 20,459 28 $ 500
Less shares repurchased - - - -
-------- ----------- ---------- ------------
Net increase 793 $ 20,459 28 $ 500
======== =========== ========== ============
CLASS Y
Shares sold 4,171 $ 110,064 30,059 $ 588,124
Reinvestment of distributions 787 20,062 - -
Less shares repurchased (15,825) (409,542) (46,183) (914,173)
-------- ----------- ---------- ------------
Net decrease (10,867) $ (279,416) (16,124) $ (326,049)
======== =========== ========== ============
*Class R shares were first publicly offered on April 1, 2003.
The accompanying notes are an integral part of these financial statements.
21
Pioneer Europe Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months Ended
4/30/04 Year Ended
CLASS A (unaudited) 10/31/03
Net asset value, beginning of period $ 22.66 $ 19.40
--------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.14 $ 0.17
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.50 3.09
--------- --------
Net increase (decrease) from investment operations $ 2.64 $ 3.26
Distributions to shareowners:
Net investment income (0.09) -
Net realized gain - -
--------- --------
Net increase (decrease) in net asset value $ 2.55 $ 3.26
--------- --------
Net asset value, end of period $ 25.21 $ 22.66
========= ========
Total return* 11.67% 16.80%
Ratio of net expenses to average net assets+ 1.81%**(b) 1.98%
Ratio of net investment income (loss) to average net assets+ 0.29%**(b) 0.76%
Portfolio turnover rate 60%** 53%
Net assets, end of period (in thousands) $ 117,807 $112,160
Ratios with no waiver of management fees by PIM and no
reduction for fees paid indirectly:
Net expenses 1.81%**(b) 1.98%
Net investment income (loss) 0.29%**(b) 0.76%
Ratios with waiver of management fees by PIM and reduction for fees paid
indirectly:
Net expenses 1.81%**(b) 1.98%
Net investment income (loss) 0.29%**(b) 0.76%
Pioneer Europe Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
CLASS A 10/31/02 10/31/01 10/31/00 10/31/99
Net asset value, beginning of period $ 22.85 $ 32.75 $ 31.71 $ 29.87
-------- -------- --------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.06 $ 0.07 $ (0.15) $ 0.12
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (3.51) (9.97) 2.30 2.54
-------- -------- --------- --------
Net increase (decrease) from investment operations $ (3.45) $ (9.90) $ 2.15 $ 2.66
Distributions to shareowners:
Net investment income - - (0.00)(a) (0.09)
Net realized gain - - (1.11) (0.73)
-------- -------- --------- --------
Net increase (decrease) in net asset value $ (3.45) $ (9.90) $ 1.04 $ 1.84
-------- -------- --------- --------
Net asset value, end of period $ 19.40 $ 22.85 $ 32.75 $ 31.71
======== ======== ========= ========
Total return* (15.10)% (30.23)% 6.83% 9.01%
Ratio of net expenses to average net assets+ 1.89% 1.76% 1.54% 1.63%
Ratio of net investment income (loss) to average net assets+ 0.14% (0.07)% (0.39)% 0.29%
Portfolio turnover rate 38% 116% 46% 60%
Net assets, end of period (in thousands) $116,051 $167,568 $ 314,781 $268,446
Ratios with no waiver of management fees by PIM and no
reduction for fees paid indirectly:
Net expenses 1.89% 1.76% 1.54% 1.63%
Net investment income (loss) 0.14% (0.07)% (0.39)% 0.29%
Ratios with waiver of management fees by PIM and reduction for fees paid
indirectly:
Net expenses 1.89% 1.74% 1.52% 1.62%
Net investment income (loss) 0.14% (0.05)% (0.37)% 0.30%
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized
+ Ratios with no reduction for fees paid indirectly.
(b) In the absence of the negative printing fees in the statement of operations,
which relates to a change in estimate for printing fees in the period ended
October 31, 2003, the gross expense ratio and net investment income ratio to
average net assets would have been 1.90% and 0.20%, respectively.
The accompanying notes are an integral part of these financial statements.
22
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Pioneer Europe Fund
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/04 Year Ended
CLASS B (unaudited) 10/31/03
Net asset value, beginning of period $ 20.85 $ 18.04
----------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.08) $ (0.06)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.39 2.87
----------- -------
Net increase (decrease) from investment operations $ 2.31 $ 2.81
Distributions to shareowners:
Net realized gain - -
----------- -------
Net increase (decrease) in net asset value $ 2.31 $ 2.81
----------- -------
Net asset value, end of period $ 23.16 $ 20.85
=========== =======
Total return* 11.08% 15.58%
Ratio of net expenses to average net assets+ 2.81%**(a) 3.02%
Ratio of net investment loss to average net assets+ (0.74)%**(a) (0.31)%
Portfolio turnover rate 60%** 53%
Net assets, end of period (in thousands) $ 46,065 $46,358
Ratios with no waiver of management fees by PIM and no
reduction for fees paid indirectly:
Net expenses 2.81%**(a) 3.02%
Net investment loss (0.74)%**(a) (0.31)%
Ratios with waiver of management fees by PIM and reduction for fees paid
indirectly:
Net expenses 2.81%**(a) 3.01%
Net investment loss (0.74)%**(a) (0.30)%
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Pioneer Europe Fund
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
CLASS B 10/31/02 10/31/01 10/31/00 10/31/99
Net asset value, beginning of period $ 21.45 $ 31.06 $ 30.38 $ 28.79
--------- --------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.40) $ (0.38) $ (0.40) $ (0.18)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (3.01) (9.23) 2.19 2.50
--------- --------- ------- -------
Net increase (decrease) from investment operations $ (3.41) $ (9.61) $ 1.79 $ 2.32
Distributions to shareowners:
Net realized gain - - (1.11) (0.73)
--------- --------- ------- -------
Net increase (decrease) in net asset value $ (3.41) $ (9.61) $ 0.68 $ 1.59
--------- --------- ------- -------
Net asset value, end of period $ 18.04 $ 21.45 $ 31.06 $ 30.38
========= ========= ======= =======
Total return* (15.90)% (30.94)% 5.90% 8.12%
Ratio of net expenses to average net assets+ 2.81% 2.64% 2.37% 2.48%
Ratio of net investment loss to average net assets+ (0.78)% (0.94)% (1.21)% (0.52)%
Portfolio turnover rate 38% 116% 46% 60%
Net assets, end of period (in thousands) $ 52,009 $ 83,075 $150,436 $129,336
Ratios with no waiver of management fees by PIM and no
reduction for fees paid indirectly:
Net expenses 2.81% 2.64% 2.37% 2.48%
Net investment loss (0.78)% (0.94)% (1.21)% (0.52)%
Ratios with waiver of management fees by PIM and reduction for fees paid
indirectly:
Net expenses 2.81% 2.63% 2.36% 2.47%
Net investment loss (0.78)% (0.93)% (1.20)% (0.51)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized
+ Ratios with no reduction for fees paid indirectly.
(a) In the absence of the negative printing fees in the statement of operations,
which relates to a change in estimate for printing fees in the period ended
October 31, 2003, the gross expense ratio and net investment income ratio to
average net assets would have been 2.90% and (0.83)%, respectively.
The accompanying notes are an integral part of these financial statements.
23
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Pioneer Europe Fund
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/04 Year Ended
CLASS C (unaudited) 10/31/03
Net asset value, beginning of period $ 20.79 $ 17.98
----------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.09) $ (0.05)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.40 2.86
----------- -------
Net increase (decrease) from investment operations $ 2.31 $ 2.81
Distributions to shareowners:
Net realized gain - -
----------- -------
Net increase (decrease) in net asset value $ 2.31 $ 2.81
----------- -------
Net asset value, end of period $ 23.10 $ 20.79
=========== =======
Total return* 11.11% 15.63%
Ratio of net expenses to average net assets+ 2.81%**(a) 2.97%
Ratio of net investment loss to average net assets+ (0.76)%**(a) (0.24)%
Portfolio turnover rate 60%** 53%
Net assets, end of period (in thousands) $ 11,834 $11,801
Ratios with no waiver of management fees by PIM and no
reduction for fees paid indirectly:
Net expenses 2.81%**(a) 2.97%
Net investment loss (0.76)%**(a) (0.24)%
Ratios with waiver of management fees by PIM and reduction for fees paid
indirectly:
Net expenses 2.81%**(a) 2.96%
Net investment loss (0.76)%**(a) (0.23)%
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Pioneer Europe Fund
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
CLASS C 10/31/02 10/31/01 10/31/00 10/31/99
Net asset value, beginning of period $ 21.39 $ 30.95 $ 30.27 $ 28.67
--------- --------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.45) $ (0.44) $ (0.39) $ (0.13)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (2.96) (9.12) 2.18 2.46
--------- --------- ------- -------
Net increase (decrease) from investment operations $ (3.41) $ (9.56) $ 1.79 $ 2.33
Distributions to shareowners:
Net realized gain - - (1.11) (0.73)
--------- --------- ------- -------
Net increase (decrease) in net asset value $ (3.41) $ (9.56) $ 0.68 $ 1.60
--------- --------- ------- -------
Net asset value, end of period $ 17.98 $ 21.39 $ 30.95 $ 30.27
========= ========= ======= =======
Total return* (15.94)% (30.89)% 5.93% 8.19%
Ratio of net expenses to average net assets+ 2.82% 2.60% 2.34% 2.42%
Ratio of net investment loss to average net assets+ (0.80)% (0.93)% (1.19)% (0.44)%
Portfolio turnover rate 38% 116% 46% 60%
Net assets, end of period (in thousands) $ 12,391 $ 21,503 $46,544 $43,559
Ratios with no waiver of management fees by PIM and no
reduction for fees paid indirectly:
Net expenses 2.82% 2.60% 2.34% 2.42%
Net investment loss (0.80)% (0.93)% (1.19)% (0.44)%
Ratios with waiver of management fees by PIM and reduction for fees paid
indirectly:
Net expenses 2.82% 2.58% 2.33% 2.40%
Net investment loss (0.80)% (0.91)% (1.18)% (0.42)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized
+ Ratios with no reduction for fees paid indirectly.
(a) In the absence of the negative printing fees in the statement of operations,
which relates to a change in estimate for printing fees in the period ended
October 31, 2003, the gross expense ratio and net investment income ratio to
average net assets would have been 2.90% and (0.85)%, respectively.
The accompanying notes are an integral part of these financial statements.
24
Pioneer Europe Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended 4/1/03 (a)
4/30/04 to
(unaudited) 10/31/03
CLASS R
Net asset value, beginning of period $ 22.67 $ 17.92
-------- -------
Increase from investment operations:
Net investment income $ 0.22 $ 0.18
Net realized and unrealized gain on investments and
foreign currency transactions 2.42 4.57
-------- -------
Net increase from investment operations $ 2.64 $ 4.75
Distributions to shareowners:
Net investment income (0.20) -
-------- -------
Net increase in net asset value $ 2.44 $ 4.75
-------- -------
Net asset value, end of period $ 25.11 $ 22.67
======== =======
Total return* 11.66% 26.51%
Ratio of net expenses to average net assets+ 1.70%**(b) 1.75%**
Ratio of net investment income to average net assets+ 2.02%**(b) 1.46%**
Portfolio turnover rate 60%** 53%
Net assets, end of period (in thousands) $ 21 $ 1
Ratios with waiver of management fees by PIM and reduction
for fees paid indirectly:
Net expenses 1.70%**(b) 1.75**
Net investment income 2.02%**(b) 1.46%**
(a) Class R shares were first publicly offered on April 1, 2003.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of distributions, and the complete redemption of the
investment at net asset value at the end of the period. Total return would
be reduced if sales charges were taken into account.
** Annualized
+ Ratio with no reduction for fees paid indirectly.
(b) In the absence of the negative printing fees in the statement of operations,
which relates to a change in estimate for printing fees in the period ended
October 31, 2003, the gross expense ratio and net investment income ratio to
average net assets would have been 1.79% and 1.93%, respectively.
The accompanying notes are an integral part of these financial statements.
25
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Pioneer Europe Fund
- --------------------------------------------------------------------------------
Six Months Ended
4/30/04 Year Ended
CLASS Y (unaudited) 10/31/03
Net asset value, beginning of period $ 23.40 $ 19.88
--------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.41 $ 0.33
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.40 3.19
--------- --------
Net increase (decrease) from investment operations $ 2.81 $ 3.52
Distributions to shareowners:
Net investment income (0.27) -
Net realized gain - -
--------- --------
Net increase (decrease) in net asset value $ 2.54 $ 3.52
--------- --------
Net asset value, end of period $ 25.94 $ 23.40
========= ========
Total return* 12.04% 17.71%
Ratio of net expenses to average net assets+ 1.10%**(c) 1.20%
Ratio of net investment income (loss) to average net assets+ 0.98%**(c) 1.52%
Portfolio turnover rate 60%** 53%
Net assets, end of period (in thousands) $ 2,124 $ 2,170
Ratios with no waiver of management fees by PIM and no
reduction for fees paid indirectly:
Net expenses 1.10%**(c) 1.20%
Net investment income (loss) 0.98%**(c) 1.52%
Ratios with waiver of management fees by PIM and reduction for fees paid
indirectly:
Net expenses 1.10%**(c) 1.20%
Net investment income 0.98%**(c) 1.52%
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Pioneer Europe Fund
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
CLASS Y 10/31/02 10/31/01 10/31/00 (a) 10/31/99
Net asset value, beginning of period $ 23.26 $ 33.19 $ 31.97 $ 29.90
--------- --------- --------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.11 $ (0.25) $ - $ 0.35
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (3.49) (9.68) 2.33 2.49
--------- --------- --------- -------
Net increase (decrease) from investment operations $ (3.38) $ (9.93) $ 2.33 $ 2.84
Distributions to shareowners:
Net investment income - - (0.00)(b) (0.04)
Net realized gain - - (1.11) (0.73)
--------- --------- --------- -------
Net increase (decrease) in net asset value $ (3.38) $ (9.93) $ 1.22 $ 2.07
--------- --------- --------- -------
Net asset value, end of period $ 19.88 $ 23.26 $ 33.19 $ 31.97
========= ========= ========= =======
Total return* (14.53)% (29.92)% 7.35% 9.59%
Ratio of net expenses to average net assets+ 1.19% 1.20% 1.08% 1.12%
Ratio of net investment income (loss) to average net assets+ 0.87% 0.53% (0.01)% 0.90%
Portfolio turnover rate 38% 116% 46% 60%
Net assets, end of period (in thousands) $ 2,164 $ 1,834 $ 2,953 $ 6,252
Ratios with no waiver of management fees by PIM and no
reduction for fees paid indirectly:
Net expenses 1.19% 1.20% 1.08% 1.12%
Net investment income (loss) 0.87% 0.53% (0.01)% 0.90%
Ratios with waiver of management fees by PIM and reduction for fees paid
indirectly:
Net expenses 1.16% 1.19% 1.07% 1.12%
Net investment income 0.90% 0.54% 0.00% 0.90%
(a) The per share data presented above is based upon the average shares
outstanding for the year presented. (b) Amount rounds to less than one cent
per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of distributions, and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized
+ Ratio with no reduction for fees paid indirectly.
(c) In the absence of the negative printing fees in the statement of operations,
which relates to a change in estimate for printing fees in the period ended
October 31, 2003, the gross expense ratio and net investment income ratio to
average net assets would have been 1.19% and 0.89%, respectively.
The accompanying notes are an integral part of these financial statements.
26
Pioneer Europe Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/04 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Europe Fund (the Fund) is a Massachusetts business trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to seek long-term
growth of capital.
The Fund offers five classes of shares - Class A, Class B, Class C, Class R and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has equal rights to voting,
redemptions, dividends and liquidation, except that the level of transfer agent
and distribution fees may differ among classes. Class A, Class B, Class C and
Class R shareowners have exclusive voting rights with respect to the
distribution plan for each class. There is no distribution plan for Class Y
shares.
The Fund's financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America that require the
management of the Fund to, among other things, make estimates and assumptions
that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of income, expenses and gains and losses on investments
during the reporting periods. Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently
followed by the Fund, which are in conformity with those generally accepted in
the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value is
computed once daily, on each day the New York Stock Exchange is open, as of
the close of regular trading on the Exchange. In computing the net asset
value, securities are valued at the last sale price on the principal
exchange where they are traded. Securities that have not traded on the date
of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of, the Board
of Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the New York Stock Exchange. The
values of such securities used in computing the net
27
Pioneer Europe Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
asset value of the Fund's shares are determined as of such times. The Fund
also may use the fair value of a security, including a non-U.S. security,
when the closing market price on the primary exchange where the security is
traded no longer accurately reflects the value of the security. As of April
30, 2004 there were no securities fair valued. 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 from foreign securities are reported net of unrecoverable foreign
taxes withheld at the applicable country rates. Temporary cash investments
are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollars actually received. Further,
the effects of changes in foreign currency exchange rates on investments are
not segregated in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or
28
Pioneer Europe Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
losses are recorded in the Fund's financial statements. The Fund records
realized gains and losses at the time a portfolio hedge is offset by entry
into a closing transaction or extinguished by delivery of the currency.
Risks may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of the contract and from
unanticipated movements in the value of foreign currencies relative to the
U.S. dollar. As of April 30, 2004, the Fund had no outstanding portfolio or
settlement hedges.
D. Futures Contracts
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices and currency rates or to seek to increase
total return. 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. The use of futures
contracts involves, to varying degrees, elements of market and counterparty
risks which may exceed the amounts recognized by the Fund. Changes in value
of the contracts may not directly correlate to the changes in value of the
underlying securities. These risks may decrease the effectiveness of the
Fund's hedging strategies and potentially result in a loss. As of April 30,
2004, the Fund had no open futures contracts.
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 taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The amount and characterization of distributions to shareowners for
financial reporting purposes is determined in accordance with federal income
tax rules. Therefore, the source of the Fund's distributions may be shown in
the accompanying financial statements as
29
Pioneer Europe Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
either from or in excess of net investment income or net realized gain on
investment transactions, or from paid-in capital, depending on the type of
book/tax differences that may exist.
The tax character of current year distributions paid will be determined at
the end of the current fiscal year. No distributions were paid by the Fund
for the fiscal year ended October 31, 2003.
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2003:
- -------------------------------------------------------------------------------
2003
-------------
Undistributed ordinary income $ 472,241
Capital loss carryforward (70,123,211)
Unrealized appreciation 14,661,830
-------------
Total $(54,989,140)
=============
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
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 UniCredito Italiano S.p.A.
(UniCredito Italiano), earned $8,606 in underwriting commissions on the sale
of Fund shares during the six months ended April 30, 2004.
G. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y shares are not subject to a distribution
plan. Shareowners of each class share all expenses and fees paid to the
transfer agent, Pioneer Investment Management Shareholder Services, Inc.
(PIMSS), for its services, which are allocated based on the number of
accounts in each class and the ratable allocation of related out-of-pocket
expenses (see Note 3). Income, common expenses and realized and unrealized
gains and losses are calculated at the Fund level and allocated daily to
each class of shares based on the respective percentage of adjusted net
assets at the beginning of the day.
30
Pioneer Europe Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time and in the same amount,
except that Class A, Class B, Class C, Class Y and Class R shares can bear
different transfer agent and distribution fees.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned indirect subsidiary of
UniCredito Italiano. Management fees are calculated daily at the annual rate of
1.00% of the Fund's average daily net assets up to $300 million; 0.85% of the
next $200 million; and 0.75% of the excess over $500 million.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At April 30, 2004, $157,026 was payable to PIM
related to management fees, administrative fees and certain other services, and
is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $94,320 in transfer agent
fees payable to PIMSS at April 30, 2004.
4. Distribution and Service Plans
The Fund adopted Plans of Distribution with respect to Class A, Class B, Class
C, and Class R shares (Class A Plan, Class B Plan, Class C Plan and Class R
Plan) in accordance with Rule 12b-1 of the Investment Company Act of 1940.
Pursuant to the Class A Plan, the Fund pays PFD a service fee of up to 0.25% of
the average daily net assets attributable to Class A shares in reimbursement of
its actual expenditures to finance activities primarily intended to result in
the sale of Class A shares. Pursuant to the Class B Plan and the Class C Plan,
the Fund pays PFD 1.00% of the average daily net assets attributable to each
class of shares. The fee consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and
31
Pioneer Europe Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Class C shares. Pursuant to the Class R Plan, the Fund pays PFD 0.50% of the
average daily net assets attributable to Class R shares for distribution
services. Included in due to affiliates is $76,089 in distribution fees payable
to PFD at April 30, 2004. The Fund also has adopted a separate service plan for
Class R shares (Service Plan). The Service Plan authorizes the Fund to pay
securities dealers, plan administrators or other service organizations that
agree to provide certain services to retirement plans or plan participants
holding shares of the Fund a service fee of up to 0.25% of the Fund's average
daily net assets attributable to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within one year of purchase. Class B shares that are redeemed within six years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Redemptions of Class R shares within 18 months of purchase may be subject to a
CDSC of 1.00%. Proceeds from the CDSCs are paid to PFD. For the six months ended
April 30, 2004, CDSCs in the amount of $46,323 were paid to PFD.
Effective November 1, 2003, the Fund charges a 2.0% redemption fee on shares
(except Class B and Class C shares) sold within 30 days of purchase. The Fund
plans to implement this fee for Class B and Class C shares as soon as the Fund
can implement operational changes. The fee does not apply to certain types of
transactions as described in the Fund's prospectus. For the six months ended
April 30, 2004, the Fund collected $791 in redemption fees, which are included
in the Fund's capital account.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses, due to interest earned on
cash held by PIMSS. For the six months ended April 30, 2004, the Fund's expenses
were reduced by $3,373 under such arrangements.
32
Pioneer Europe Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. Line of Credit Facility
The Fund, along with certain other Funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $50 million committed, unsecured revolving
line of credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of $50 million or the limits set
by its prospectus for borrowings. Interest on collective borrowings is payable
at the Federal Funds Rate plus 1/2% on an annualized basis. The Funds pay an
annual commitment fee for this facility. The commitment fee is allocated among
such Funds based on their respective borrowing limits. For the six months ended
April 30, 2004, the Fund had no borrowings under this agreement.
7. Tax Information
For the six months ended April 30, 2004, the Fund has elected to pass through
foreign taxes credits of $266,475.
33
Pioneer Europe Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
Mary K. Bush Osbert M. Hood, Executive
Richard H. Egdahl, M.D. Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Osbert M. Hood Dorothy E. Bourassa, Secretary
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). This information
is also available at pioneerfunds.com and on the Securities and Exchange
Commission's web site at http://www.sec.gov.
34
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
Please consider a fund's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about a fund and should be read carefully before you invest or send money. To
obtain a prospectus and for other information on any Pioneer fund, contact your
advisor, call 1-800-225-6292 or visit our web site at www.pioneerfunds.com.
U.S. Equity
Pioneer Fund
Pioneer Balanced Fund
Pioneer Equity Income Fund
Pioneer Growth Shares
Pioneer Mid Cap Growth Fund
Pioneer Mid Cap Value Fund
Pioneer Oak Ridge Large Cap
Growth Fund
Pioneer Oak Ridge Small Cap
Growth Fund
Pioneer Papp America-Pacific
Rim Fund
Pioneer Papp Small and Mid Cap
Growth Fund
Pioneer Papp Stock Fund
Pioneer Papp Strategic
Growth Fund
Pioneer Real Estate Shares
Pioneer Research Fund*
Pioneer Small Cap Value Fund
Pioneer Small Company Fund
Pioneer Value Fund
International/Global Equity
Pioneer Emerging Markets Fund
Pioneer Europe Select Fund
Pioneer Europe Fund
Pioneer International Equity Fund
Pioneer International Value Fund
Fixed Income
Pioneer America Income Trust
Pioneer Bond Fund
Pioneer Global High Yield Fund
Pioneer High Yield Fund
Pioneer Strategic Income Fund
Pioneer Tax Free Income Fund
Money Market
Pioneer Cash Reserves Fund**
* Name change effective December 11, 2003. Formerly known as Pioneer Core
Equity Fund.
** An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
35
- --------------------------------------------------------------------------------
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
- --------------------------------------------------------------------------------
Your investment professional can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-8O0-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 10-digit account number, your three-digit fund number and your four-digit
personal identification number at hand.
6-Month Reinstatement Privilege (for Class A and Class B Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 6 months of your
redemption. You have the choice of investing in any Pioneer fund provided the
account has the exact same registration and meets the fund's minimum investment
requirement. Reinstated accounts may only purchase Class A fund shares.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need to
do is authorize a set amount of money to be moved out of your bank account into
the Pioneer fund of your choice. Investomatic also allows you to change the
dollar amount, frequency and investment date right over the phone. By putting
aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing Pioneer
to deduct from participating employees' paychecks. You specify the dollar amount
you want to invest into the Pioneer fund(s) of your choice.
36
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds you
wish to invest in. You choose the amounts and dates for Pioneer to sell shares
of your original fund and use the proceeds to buy shares of the other funds you
have chosen. Over time, your investment will be shifted out of the original
fund. (Automatic Exchange is available for originating accounts with a balance
of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals.
You decide the frequency and the day of the month. Pioneer will send the
proceeds by check to the address you designate, or electronically to your bank
account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available for accounts with a value of $10,000 or
more.)
37
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@piog.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
Please consider [the/a/each] fund's investment objectives, risks, charges and
expenses carefully before investing. The prospectus contains this and other
information about [the/a/each] fund and should be read carefully before you
invest or send money. To obtain a prospectus and for other information on any
Pioneer fund, call 1-800-225-6292 or visit our website www.pioneerfunds.com.
(LOGO) PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street 15901-00-0604
Boston, Massachusetts 02109 (C)2004 Pioneer Funds Distributor, Inc.
www.pioneerfunds.com Underwriter of Pioneer mutual funds,
Member SIPC
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognizes 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 recognizes that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
N/A
ITEMS 5-6. [RESERVED]
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. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation of
these controls and procedures as of a date within 90 days prior to the filing
date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Europe Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date June 30, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date June 30, 2004
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date June 30, 2004
* Print the name and title of each signing officer under his or her signature.