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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 811-21823
Pioneer Series Trust V
(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: August 31
Date of reporting period: September 1, 2006 through August 31, 2007
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
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PIONEER
-------
GLOBAL
SELECT EQUITY
FUND
GLOSX
Ticker Symbol
Annual
Report
8/31/07
[LOGO]PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 22
Notes to Financial Statements 29
Report of Independent Registered Public Accounting Firm 36
Trustees, Officers and Service Providers 37
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
were particularly useful guides during the past year, when an otherwise healthy
long-term bull market was buffeted by problems in the mortgage and banking
industries.
Since mid-year, issues tied to poor underwriting practices in the subprime
sector of the mortgage industry, and to problems with risk management by banks
and hedge funds, have resulted in increased market volatility and rising
concern about risks to U.S. economic growth.
Even against this backdrop, the long-term performance of major asset classes
remained positive. In the 12 months ending August 31, 2007, equity investors
were generally rewarded as, despite a late-July decline, the Standard & Poor's
500 Index returned 15%, the Dow Jones Industrial Average returned 20%, and the
NASDAQ Composite Index returned 19%. International developed and emerging
markets equities performed well also, with the MSCI EAFE Developed Market Index
returning 19% and the MSCI Emerging Markets Index returning 44% over the
12-month period. The U.S. bond market, as measured by the Lehman Aggregate Bond
Index, returned 5% in the 12 months ending August 31, 2007. The U.S. high-yield
bond market, as measured by the Merrill Lynch High Yield Bond Master II Index,
returned 7% for the same period, reflecting its higher coupon yield.
U.S. economic growth has slowed in the past year, but this was due as much to
the natural maturation of the cyclical expansion, as U.S. factories approached
full utilization and the labor market approached full employment, as it was to
rising commodity prices and short-term interest rates. This slowdown was,
therefore, not entirely unwelcome, as it reduced the threat of higher
inflation. More recently, however, there has been increasing concern that
falling home prices and/or banks' unwillingness to lend pose a larger and more
imminent threat to the economy.
In Europe, solid GDP growth driven by a positive operating environment for
European companies, especially exporters, has driven unemployment lower and
supported growing consumption. Japanese economic growth also continues to make
progress, and the country's deflationary problems are gradually receding.
Economic growth in emerging market countries remains faster than in the
developed world as they persist in "catching up," led by China, which continues
its rise as a world economic power.
2
Letter
The U.S. Federal Reserve and the world's other central banks have pursued
policies aimed at producing low and stable inflation, believed to be the best
backdrop for steady economic growth and low average unemployment over the long
term. Keeping inflation low is also an important support for stock and bond
valuations, and so central bank policies have also been "investor friendly."
The central banks have responded to this past summer's liquidity squeeze in the
inter-bank and commercial paper markets by acting as the "lenders of last
resort" to limit the risk of problems spreading to the broader economy. Looking
forward, the economic outlook and equity valuations appear generally positive,
although the current environment is plagued by fears that subprime mortgage
problems will result in a systemic liquidity/credit crunch. While falling risk
tolerances may depress asset prices in the short term, valuations look
reasonable if credit market problems do not spread to the broader economy.
Sudden swings in the markets are always to be expected. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to your particular risk
tolerance and investment objective.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Global Select Equity Fund
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PORTFOLIO MANAGEMENT DISCUSSION 8/31/07
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In the following interview, portfolio manager Piergaetano Iaccarino discusses
the factors that influenced performance for the 12-month fiscal period ended
August 31, 2007.
Q: How did the Fund perform over the 12-month period ended August 31, 2007?
A: The Fund's total return from September 1, 2006 through August 31, 2007 was
14.58% (Class A shares at net asset value) versus 17.54% for the MSCI
World Index. The global environment for equities was generally positive
for the 12-month period, and this was reflected in the Fund's
performance.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most
recent month-end performance results. Current performance may be lower or
higher than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: Can you review the Fund's overall investment approach?
A: We look at mid- and large-capitalization stocks in more than 30 countries
and from that universe build a somewhat concentrated portfolio of less
than 50 stocks. Each stock that we hold will generally be overweighted by
at least one percent versus the MSCI World Index. In selecting securities
for the portfolio, we look for "growth at a reasonable price," so there
is a strong value component to our analysis. We try to find companies
that not only are benefiting from operating efficiencies as reflected in
things like increased market share and revenues, but that also use their
capital efficiently. In particular, we look for strong free cash flow,
because this gives a company the flexibility to do things like make share
buybacks, reinvest in the business, make acquisitions, and raise
dividends. Finally, we try to assess not only the potential price gains
for each stock, but also the potential for a decline in price if things
go wrong and favor those stocks with the highest upside relative to their
downside.
4
Pioneer Global Select Equity Fund
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Q: Could you characterize the global equity markets over the period?
A: Global equity markets in the aggregate enjoyed strong positive returns over
the period, despite periods of significant volatility. Markets declined
sharply during the final week of February 2007. The drop began with a
sharp decline in Chinese equities, based on rumors that the government
would seek to tighten stock market investment rules and introduce a
capital gains tax. The release of some weaker-than-expected U.S. economic
data and evidence of mounting problems in the subprime U.S. mortgage
market further added to a sense of unease among investors. As equity
markets weakened, the Japanese yen rose strongly against the U.S. Dollar,
which suggested that the broad-based decline in equities was partially
due to the unwinding of so called "carry trades" funded through borrowing
at low Japanese interest rates.
As the second half of the fiscal period progressed, merger-and-acquisition
activity helped restore a better tone to the equity markets, with most
sectors experiencing some activity. In particular, there were significant
deals announced in the banking, utilities and materials sectors. On the
economic front, conditions in the United States remained consistent with
growth that had been below trend, while European economic activity
remained generally solid. In June 2007, global markets weakened, as
stronger inflation and housing market data in the United States pushed
interest rate expectations and bond yields higher. In addition, problems
related to subprime mortgage exposure emerged at the hedge fund units of
Bear Stearns and UBS, which added to risk aversion among investors. In
July and August 2007, the full extent of the sub-prime issue began to come
to light. It became clear that, due to rising defaults, the leading
subprime lenders would not be able to meet their obligations to the Wall
Street firms that repackage these loans and sell them to investors
globally. The resulting credit crunch and heightened awareness of the
global distribution of risk caused markets to drop sharply. As August
progressed, equities began to make up some of the lost ground.
European equities outperformed both U.S. and Japanese equities in the 12
months ended August 31, 2007, helped in part by the strength of the euro
relative to the U.S. Dollar. From a sector
5
Pioneer Global Select Equity Fund
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PORTFOLIO MANAGEMENT DISCUSSION 8/31/07 (continued)
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perspective, the strongest areas in the global equity markets were
materials, industrials and energy stocks, while the weakest returns were
in the financials and consumer discretionary sectors.
Q: What strategies or holdings helped and hurt performance over the fiscal
period?
A: Our sector allocation proved unrewarding on the whole, but stock selection
was a larger factor in the Fund's somewhat lagging performance relative
to the benchmark during the fiscal period.
Our holdings in the financial sector, particularly among insurance
companies, were among the leading detractors from the Fund's relative
performance. We emphasized insurers during the fiscal year, and the
leading underperformers among those holdings were AIG and MBIA, both of
whom suffered from concerns over the impact of the subprime crisis on
their bond insurance businesses. Among diversified financials, our
holdings in Citigroup and Merrill Lynch were also penalized by market
concerns over subprime loans, as well as over future bond issuance and
trading volumes.
In healthcare, we were modestly underweight on average for the fiscal
period but overweight in pharmaceuticals companies. The pharmaceutical
segment was weaker than the wider market, and this negative effect was
compounded by the underperformance of our holdings, led by UK firm
AstraZeneca. AstraZeneca's stock faltered in late 2006 after the company
cancelled further development of a new stroke drug and lost patent
protection on an ulcer drug in Europe. Bristol-Myers Squibb was the only
positive contributor among pharmaceuticals in the fiscal period, as the
patent on its leading blood-thinning drug Plavix was upheld by a U.S.
court.
Stock selection was also weak in the consumer discretionary
sector during the fiscal period, where holdings in consumer durables such
as Japanese companies Sekisui Chemical and Daito Trust Construction, fell
strongly. Among retailers, Office Depot also acted as a drag on returns.
The Fund benefited from positive stock selection in the telecommunications
sector during the fiscal period, led by positions in Vodafone and Verizon.
Vodafone rose sharply in the fiscal period, thanks to its
better-than-expected profits guidance, which
6
Pioneer Global Select Equity Fund
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accompanied its full-year results in May. In the automobile sector, our
holdings of Porsche advanced very strongly over the year, easily
offsetting the negative relative returns from our position in Toyota.
We deemphasized materials overall during the fiscal period, but our stock
selection within the sector proved very successful. BASF, a German
chemicals company, was the most successful stock pick in this area. Its
second quarter results beat expectations, helped by higher prices and the
contributions of acquisitions. The company is also in the midst of a large
share buyback program. Mining company Rio Tinto also rose sharply amid
merger rumors and continuing buoyant demand for metals from emerging
markets.
Q: What is your outlook and how is it reflected in the Fund?
A: Looking ahead, global economic and company fundamentals remain supportive
for equities. In general, global economic growth outside of the United
States appears to be maintaining solid forward momentum, most notably in
Europe and Asia. In the United States, the adjustment in housing and
problems in the subprime mortgage sector are likely to remain headwinds
for the economy, suggesting below-trend growth may persist. While equity
valuations versus fixed-income are no longer as compelling following the
recent increase in bond yields, particularly in the United States,
current levels continue to justify an overall preference for equities in
our view.
Going forward, we will remain focused on identifying individual stocks
that are reasonably priced and where we have high levels of conviction
about the share price upside.
Investing in foreign and/or emerging markets securities involves certain risks,
including risks relating to interest rates, currency exchange rates, economic,
and political conditions. Investments in mid-sized companies may offer the
potential for higher returns, but are also subject to greater short-term price
fluctuations than larger, more established companies. The Fund is
non-diversified and invests in a limited number of securities and, as a result,
the Fund's performance may be more volatile than the performance of funds
holding more securities. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have
7
Pioneer Global Select Equity Fund
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PORTFOLIO MANAGEMENT DISCUSSION 8/31/07 (continued)
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common risks, making it more susceptible to any economic, political, or
regulatory developments or other risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
8
Pioneer Global Select Equity Fund
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PORTFOLIO SUMMARY 8/31/07
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Sector Distribution
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(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 22.0%
Information Technology 16.7%
Consumer Discretionary 12.2%
Energy 9.3%
Health Care 8.8%
Industrials 7.9%
Consumer Staples 7.8%
Materials 6.2%
Telecommunication Services 4.8%
Utilities 4.3%
Geographical Distribution
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(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United States 44.0%
Germany 11.4%
United Kingdom 10.9%
Japan 10.4%
France 7.5%
Switzerland 4.5%
Spain 2.4%
Australia 2.2%
Netherlands 1.6%
Bermuda 1.6%
Canada 1.6%
South Korea 1.3%
Singapore 0.6%
10 Largest Holdings
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(As a percentage of equity holdings)*
1. Microsoft Corp. 3.95%
2. Cisco Systems, Inc. 3.31
3. United Technologies Corp. 3.25
4. ConocoPhillips 3.21
5. Siemens 2.97
6. Citigroup, Inc. 2.76
7. Rio Tinto Plc 2.51
8. Toyota Motor Co. 2.50
9. Bristol-Myers Squibb Co. 2.50
10. Canon, Inc. 2.47
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any
security listed.
9
Pioneer Global Select Equity Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 8/31/07 8/31/06
----- ------- -------
A $12.53 $11.18
B $12.37 $11.10
C $12.39 $11.10
Distributions Per Share
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9/1/06 - 8/31/07
----------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
----- --------- ------------- -------------
A $ 0.0509 $0.2070 $ -
B $ 0.0089 $0.2070 $ -
C $ - $0.2070 $ -
10
Pioneer Global Select Equity Fund
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PERFORMANCE UPDATE 8/31/07 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Select Equity Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) World Index.
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Average Annual Total Returns
(As of August 31, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(12/15/05) 15.59% 11.66%
1 Year 14.58 8.01
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Expense Ratio
(Per prospectus dated January 1, 2007)
Gross Net
11.05% 1.30%
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[THE FOLLOWING DATA WAS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global
Select Equity Fund MSCI World Index
12/05 $ 9,425 $10,000
8/06 $10,547 $10,989
8/07 $12,085 $12,916
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class A Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. 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 an Index.
11
Pioneer Global Select Equity Fund
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PERFORMANCE UPDATE 8/31/07 CLASS B SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) World Index.
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Average Annual Total Returns
(As of August 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(12/15/05) 14.50% 12.36%
1 Year 13.55 9.55
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Expense Ratio
(Per prospectus dated January 1, 2007)
Gross Net
11.40% 2.20%
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[THE FOLLOWING DATA WAS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global
Select Equity Fund MSCI World Index
12/05 $10,000 $10,000
8/06 $11,111 $10,989
8/07 $12,217 $12,916
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus for details.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/08 for Class B Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. 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 an Index.
12
Pioneer Global Select Equity Fund
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PERFORMANCE UPDATE 8/31/07 CLASS C SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Global Select Equity Fund, compared to that of the
Morgan Stanley Capital International (MSCI) World Index.
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Average Annual Total Returns
(As of August 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(12/15/05) 14.56% 14.56%
1 Year 13.65 12.65
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Expense Ratio
(Per prospectus dated January 1, 2007)
Gross Net
10.98% 2.20%
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[THE FOLLOWING DATA WAS REPRESENTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Global
Select Equity Fund MSCI World Index
12/05 $10,000 $10,000
8/06 $11,111 $10,989
8/07 $12,628 $12,916
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/08 for Class C Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The 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.
The Morgan Stanley Capital International (MSCI) World Index measures the
performance of stock markets in the developed world. 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 an Index.
13
Pioneer Global Select Equity Fund
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COMPARING ONGOING FUND EXPENSES
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As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments and
redemption fees.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Global Select Equity Fund
Based on actual returns from March 1, 2007 through August 31, 2007
Share Class A B C
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Beginning Account Value On 3/1/07 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after expenses) $1,049.36 $1,043.85 $1,045.54
On 8/31/07
Expenses Paid During Period* $ 6.72 $ 11.33 $ 11.34
* Expenses are equal to the Fund's annualized expense ratio of 1.30%, 2.20%
and 2.20% for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the one half year period).
14
Pioneer Global Select Equity Fund
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Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Global Select Equity Fund
Based on a hypothetical 5% return before expenses, reflecting the period from
March 1, 2007 through August 31, 2007
Share Class A B C
- ----------------------------------------------------------------------------
Beginning Account Value On 3/1/07 $1,000.00 $1,000.00 $1,000.00
Ending Account Value (after expenses) $1,018.65 $1,014.12 $1,014.12
On 8/31/07
Expenses Paid During Period* $ 6.61 $ 11.17 $ 11.17
* Expenses are equal to the Fund's annualized expense ratio of 1.30%, 2.20%
and 2.20% for Class A, Class B and Class C shares, respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the one half year period).
15
Pioneer Global Select Equity Fund
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SCHEDULE OF INVESTMENTS 8/31/07
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Shares Value
PREFERRED STOCK - 1.2%
Automobiles & Components - 1.2%
Automobile Manufacturers - 1.2%
30 Porsche AG $ 53,642
----------
TOTAL PREFERRED STOCK
(Cost $34,373) $ 53,642
----------
COMMON STOCKS - 90.7%
Energy - 8.5%
Integrated Oil & Gas - 8.5%
1,634 ConocoPhillips $ 133,808
1,030 Occidental Petroleum Corp. 58,391
2,804 Repsol SA 101,406
1,254 Total SA 94,199
----------
$ 387,804
----------
Total Energy $ 387,804
----------
Materials - 5.7%
Diversified Chemical - 1.9%
645 BASF AG $ 85,408
----------
Diversified Metals & Mining - 2.3%
1,518 Rio Tinto Plc $ 104,637
----------
Fertilizers & Agricultural Chemicals - 1.5%
1,463 Agrium, Inc.* $ 66,625
----------
Total Materials $ 256,670
----------
Capital Goods - 7.3%
Aerospace & Defense - 3.0%
1,818 United Technologies Corp. $ 135,677
----------
Industrial Conglomerates - 2.7%
985 Siemens $ 124,078
----------
Industrial Machinery - 1.6%
996 Flowserve Corp. $ 71,124
----------
Total Capital Goods $ 330,879
----------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Automobiles & Components - 2.3%
Automobile Manufacturers - 2.3%
1,800 Toyota Motor Co.* $ 104,394
----------
Total Automobiles & Components $ 104,394
----------
Consumer Durables & Apparel - 3.2%
Apparel, Accessories & Luxury Goods - 1.7%
1,327 Adidas-Salomon AG $ 78,125
----------
Homebuilding - 1.5%
9,000 Sekisui Chemical Co., Ltd.* $ 66,747
----------
Total Consumer Durables & Apparel $ 144,872
----------
Media - 1.5%
Broadcasting & Cable TV - 1.5%
2,999 Eutelsat Communications $ 69,153
----------
Total Media $ 69,153
----------
Retailing - 3.0%
Apparel Retail - 1.7%
1,013 Abercrombie & Fitch Co. $ 79,723
----------
Specialty Stores - 1.3%
2,371 Office Depot, Inc.* $ 57,971
----------
Total Retailing $ 137,694
----------
Food & Drug Retailing - 3.5%
Drug Retail - 1.5%
1,785 CVS Corp. $ 67,509
----------
Hypermarkets & Supercenters - 2.0%
2,098 Wal-Mart Stores, Inc. $ 91,536
----------
Total Food & Drug Retailing $ 159,045
----------
Food, Beverage & Tobacco - 1.7%
Tobacco - 1.7%
14 Japan Tobacco, Inc.* $ 78,093
----------
Total Food, Beverage & Tobacco $ 78,093
----------
Household & Personal Products - 1.9%
Household Products - 1.9%
1,326 Procter & Gamble Co. $ 86,601
----------
Total Household & Personal Products $ 86,601
----------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Pharmaceuticals & Biotechnology - 8.1%
Biotechnology - 1.5%
1,751 Vertex Pharmaceuticals, Inc.* $ 68,219
----------
Pharmaceuticals - 6.6%
1,852 Astrazeneca Plc $ 91,410
3,579 Bristol-Myers Squibb Co. 104,328
590 Roche Holdings AG 102,753
----------
$ 298,491
----------
Total Pharmaceuticals & Biotechnology $ 366,710
----------
Banks - 7.5%
Diversified Banks - 7.5%
756 BNP Paribas SA $ 79,982
2,000 Development Bank of Singapore, Ltd. 26,136
7,947 Royal Bank of Scotland Group Plc 92,263
6,000 Sumitomo Trust Bank* 49,608
4,070 Westpac Banking Corp. 90,484
----------
$ 338,473
----------
Total Banks $ 338,473
----------
Diversified Financials - 5.9%
Diversified Capital Markets - 1.9%
1,294 CS Group $ 84,830
----------
Investment Banking & Brokerage - 1.5%
905 Merrill Lynch & Co., Inc. $ 66,699
----------
Diversified Financial Services - 2.5%
2,461 Citigroup, Inc. $ 115,372
----------
Total Diversified Financials $ 266,901
----------
Insurance - 6.2%
Multi-Line Insurance - 4.2%
273 Allianz AG $ 58,558
928 American International Group, Inc. 61,248
1,750 AXA 70,327
----------
$ 190,133
----------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Property & Casualty Insurance - 2.0%
1,492 MBIA, Inc. $ 89,520
----------
Total Insurance $ 279,653
----------
Real Estate - 0.7%
Real Estate Management & Development - 0.7%
1,000 Sumitomo Realty & Development $ 32,780
----------
Total Real Estate $ 32,780
----------
Software & Services - 5.9%
Home Entertainment Software - 0.8%
2,383 Take-Two Interactive Software, Inc.* $ 38,080
----------
IT Consulting & Other Services - 1.5%
1,619 Accenture, Ltd. $ 66,719
----------
Systems Software - 3.6%
5,731 Microsoft Corp. $ 164,652
----------
Total Software & Services $ 269,451
----------
Technology Hardware & Equipment - 6.5%
Communications Equipment - 3.0%
4,330 Cisco Systems, Inc.* $ 138,214
----------
Electronic Equipment & Instruments - 1.2%
174 Samsung Electronics (144A)* $ 54,719
----------
Office Electronics - 2.3%
1,800 Canon, Inc. $ 102,954
----------
Total Technology Hardware & Equipment $ 295,887
----------
Semiconductors - 2.9%
Semiconductor Equipment - 1.5%
2,247 ASM Lithography Holding N.V.* $ 66,821
----------
Semiconductors - 1.4%
22,151 ARM Holdings Plc $ 65,916
----------
Total Semiconductors $ 132,737
----------
Telecommunication Services - 4.4%
Integrated Telecommunication Services - 2.2%
2,380 Verizon Communications, Inc. $ 99,674
----------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Wireless Telecommunication Services - 2.2%
31,230 Vodafone Group Plc $ 101,023
----------
Total Telecommunication Services $ 200,697
----------
Utilities - 4.0%
Electric Utilities - 4.0%
464 E.On AG $ 77,898
1,456 Exelon Corp. 102,896
----------
$ 180,794
----------
Total Utilities $ 180,794
----------
TOTAL COMMON STOCKS
(Cost $3,967,911) $4,119,288
----------
TOTAL INVESTMENT IN SECURITIES - 91.9%
(Cost $4,002,284) (a)(b) $4,172,930
----------
OTHER ASSETS AND LIABILITIES - 8.1% $ 369,361
----------
TOTAL NET ASSETS - 100.0% $4,542,291
==========
* Non-income producing security.
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At August 31, 2007, the
value of these securities amounted to $54,719 or 1.2% of total net assets.
(a) Distributions of investments by country of issue (excluding temporary cash
investments) as a percentage of total investment in equity securities, is
as follows:
United States 44.0%
Germany 11.4
United Kingdom 10.9
Japan 10.4
France 7.5
Switzerland 4.5
Spain 2.4
Australia 2.2
Netherlands 1.6
Bermuda 1.6
Canada 1.6
South Korea 1.3
Singapore 0.6
-----
100.0%
=====
20 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
(b) At August 31, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $4,010,059 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $275,498
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (112,627)
--------
Net unrealized gain $162,871
========
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2007 aggregated $4,437,856 and $2,237,526, respectively.
The accompanying notes are an integral part of these financial statements. 21
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 8/31/07
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (cost $4,002,284) $4,172,930
Cash 358,380
Receivables -
Investment securities sold 55,437
Fund shares sold 10,707
Dividends and foreign taxes withheld 11,030
Due from Pioneer Investment Management, Inc. 39,785
Other 4,350
----------
Total assets $4,652,619
----------
LIABILITIES:
Payables -
Investment securities purchased $ 65,338
Fund shares repurchased 230
Due to affiliates 2,144
Accrued expenses 42,616
----------
Total liabilities $ 110,328
----------
NET ASSETS:
Paid-in capital $4,140,541
Undistributed net investment income 20,292
Accumulated net realized gain on investments 210,664
Net unrealized gain on investments 170,646
Net unrealized gain on other assets and liabilities
denominated in foreign currencies 148
----------
Total net assets $4,542,291
==========
NET ASSET VALUE PER SHARE:
(No Par value, Unlimited number of shares authorized)
Class A (based on $2,562,097/204,395 shares) $ 12.53
==========
Class B (based on $1,200,049/96,974 shares) $ 12.37
==========
Class C (based on $780,145/62,964 shares) $ 12.39
==========
MAXIMUM OFFERING PRICE:
Class A ($12.53 [divided by] 94.25%) $ 13.29
==========
22 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 8/31/07
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $4,969) $ 66,415
Interest 9,210
Income from securities loaned, net 611
--------
Total investment income $ 76,236
----------
EXPENSES:
Management fees $ 24,465
Transfer agent fees and expenses
Class A 3,061
Class B 2,132
Class C 1,274
Distribution fees
Class A 3,310
Class B 8,749
Class C 6,237
Administrative reimbursements 729
Custodian fees 28,431
Registration fees 54,400
Professional fees 35,512
Printing expense 18,511
Fees and expenses of nonaffiliated trustees 6,599
Miscellaneous 16,001
--------
Total expenses $ 209,411
Less management fees waived and
expenses reimbursed by Pioneer Investment
Management, Inc. (153,523)
----------
Net expenses $ 55,888
----------
Net investment income $ 20,348
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $215,765
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (44) $ 215,721
-------- ----------
Change in net unrealized gain on:
Investments $ 86,626
Other assets and liabilities denominated in
foreign currencies 140 $ 86,766
-------- ----------
Net gain on investments and foreign currency
transactions $ 302,487
----------
Net increase in net assets resulting from operations $ 322,835
==========
The accompanying notes are an integral part of these financial statements. 23
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Year Ended 8/31/07 and the Period from 12/15/05
(Commencement of Operations) to 8/31/06, respectively
Year Ended 12/15/05 to
8/31/07 8/31/06
FROM OPERATIONS:
Net investment income $ 20,348 $ 7,598
Net realized gain on investments and foreign currency
transactions 215,721 38,444
Change in net unrealized gain on investments and
foreign currency transactions 86,766 84,028
---------- ----------
Net increase in net assets resulting from
operations $ 322,835 $ 130,070
---------- ----------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.05 and $0.00 per share, respectively) $ (6,410) $ -
Class B ($0.01 and $0.00 per share, respectively) (608) -
Net realized gain:
Class A ($.21 and $0.00 per share, respectively) (22,527) -
Class B ($.21 and $0.00 per share, respectively) (14,640) -
Class C ($.21 and $0.00 per share, respectively) (8,901) -
---------- ----------
Total distributions to shareowners $ (53,086) -
---------- ----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $3,298,932 $ 819,540
Reinvestment of distributions 27,346 -
Redemption fees - 288
Cost of shares repurchased (880,425) (123,209)
---------- ----------
Net increase in net assets resulting from
Fund share transactions $2,445,853 $ 696,619
---------- ----------
Net increase in net assets $2,715,602 $ 826,689
NET ASSETS:
Beginning of period 1,826,689 1,000,000
---------- ----------
End of period $4,542,291 $1,826,689
========== ==========
Undistributed net investment income $ 20,292 $ 7,006
========== ==========
24 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 178,967 $2,193,127 52,303 $569,499
Reinvestment of distributions 1,633 18,925 - -
Less shares repurchased (50,627) (619,401) (11,215) (120,171)
------- ---------- ------- --------
Net increase 129,973 $1,592,651 41,088 $449,328
======= ========== ======= ========
CLASS B
Shares sold 64,811 $ 780,723 16,299 $175,190
Reinvestment of distributions 568 6,507 - -
Less shares repurchased (17,856) (210,349) (181) (1,964)
------- ---------- ------- --------
Net increase 47,523 $ 576,881 16,118 $173,226
======= ========== ======= ========
CLASS C
Shares sold 26,968 $ 325,082 6,870 $ 74,851
Reinvestment of distributions 168 1,914 - -
Less shares repurchased (4,276) (50,675) (99) (1,074)
------- ---------- ------- --------
Net increase 22,860 $ 276,321 6,771 $ 73,777
======= ========== ======= ========
The accompanying notes are an integral part of these financial statements. 25
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended 12/15/05 (a)
8/31/07 to 8/31/06
CLASS A
Net asset value, beginning of period $ 11.18 $ 10.00
------- --------
Increase from investment operations:
Net investment income $ 0.08 $ 0.07
Net realized and unrealized gain on investments
and foreign currency transactions 1.53 1.11
------- --------
Net increase from investment operations $ 1.61 $ 1.18
Distribution to shareowners:
Net investment income (0.05) -
Net realized gain (0.21) -
------- --------
Net increase in net asset value $ 1.35 $ 1.18
------- --------
Net asset value, end of period $ 12.53 $ 11.18
======= =======
Total return* 14.58% 11.80%(b)
Ratio of net expenses to average net assets+ 1.30% 1.30%**
Ratio of net investment income to average
net assets+ 1.05% 1.42%**
Portfolio turnover rate 74% 35%(b)
Net assets, end of period (in thousands) $ 2,562 $ 832
Ratios with no waiver of management fees and
assumption of expenses by PIM
Net expenses 6.11% 11.05%**
Net investment loss (3.76)% (8.33)%**
(a) Class A shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the 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.
26 T he accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended 12/15/05 (a)
8/31/07 to 8/31/06
CLASS B
Net asset value, beginning of period $ 11.10 $ 10.00
------- --------
Increase from investment operations:
Net investment income $ 0.00(c) $ 0.03
Net realized and unrealized gain on investments
and foreign currency transactions 1.49 1.07
------- --------
Net increase from investment operations $ 1.49 $ 1.10
Distribution to shareowners:
Net investment income (0.01) -
Net realized gain (0.21) -
------- --------
Net increase in net asset value $ 1.27 $ 1.10
------- --------
Net asset value, end of period $ 12.37 $ 11.10
======= ========
Total return* 13.55% 11.00%(b)
Ratio of net expenses to average net assets+ 2.20% 2.20%**
Ratio of net investment income to average
net assets+ 0.12% 0.45%**
Portfolio turnover rate 74% 35%(b)
Net assets, end of period (in thousands) $ 1,200 $ 549
Ratios with no waiver of management fees and
assumption of expenses by PIM
Net expenses 6.84% 11.40%**
Net investment loss (4.52)% (8.75)%**
(a) Class B shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
(c) Amount rounds to less than $0.01 per share.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the 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.
The accompanying notes are an integral part of these financial statements. 27
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended 12/15/05 (a)
8/31/07 to 8/31/06
CLASS C
Net asset value, beginning of period $ 11.10 $ 10.00
------- --------
Increase from investment operations:
Net investment income $ 0.01 $ 0.03
Net realized and unrealized gain on investments
and foreign currency transactions 1.49 1.07
------- --------
Net increase from investment operations $ 1.50 $ 1.10
Distribution to shareowners:
Net realized gain (0.21) -
------- --------
Net increase in net asset value $ 1.29 $ 1.10
------- --------
Net asset value, end of period $ 12.39 $ 11.10
======= ========
Total return* 13.65% 11.00%(b)
Ratio of net expenses to average net assets+ 2.20% 2.20%**
Ratio of net investment income to average
net assets+ 0.12% 0.45%**
Portfolio turnover rate 74% 35%(b)
Net assets, end of period (in thousands) $ 780 $ 445
Ratios with no waiver of management fees and
assumption of expenses by PIM
Net expenses 6.70% 10.98%**
Net investment loss (4.38)% (8.33)%**
(a) Class C shares were first publicly offered on December 15, 2005.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the 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.
28 The accompanying notes are an integral part of these financial statements.
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Global Select Equity Fund (the Fund), is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory business trust
registered under the Investment Company Act of 1940 as an open-end management
investment company. The Fund is non-diversified. The Fund was organized on
October 12, 2005, and commenced operations on December 15, 2005. Prior to
October 12, 2005, the Fund had no operations other than those relating to
organizational matters and the initial capitalization of the Fund by Pioneer
Funds Distributor, Inc. (PFD). The fund's investment objective is to seek
long-term capital growth.
The Fund offers three classes of shares - Class A, Class B and Class C 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 each class of shares can bear different transfer agent
and distribution fees and has exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B and Class C
shareowners, respectively.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. Information regarding the Fund's principal risk is
contained in the Fund's prospectus(es). Please refer to those documents when
considering the Fund's risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting periods.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which are
29
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
consistent with those policies generally accepted in the investment company
industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities are valued using the last sale
price on the principal exchange where they are traded. Securities that have
not traded on the date of valuation, or securities for which sale prices
are not generally reported, are valued using the mean between the last bid
and asked prices. Securities for which market quotations are not readily
available are valued at their fair values as determined by, or under the
direction of, the Board of Trustees. The Fund invests primarily in
securities of non-U.S. issuers. The principal exchanges and markets for
such securities have closing times prior to the close of the NYSE. However,
the value of these securities may be influenced by changes in global
markets occurring after the closing times of the local exchanges and
markets up to the time the Fund determines its net asset value.
Consequently, the Board of Trustees of the Fund has determined that the use
of daily fair valuations as provided by a pricing service is appropriate
for the Fund. The Fund may also take into consideration other significant
events in determining the fair value of these securities. Thus, the Fund's
securities valuations may differ from prices reported by the various local
exchanges and markets. Temporary cash investments are valued at cost which
approximates market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as Fund becomes aware of the ex-dividend data
in exercise of reasonable diligence. Interest income, including interest on
income bearing cash accounts, is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
30
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
B. 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 amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as 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.
At August 31, 2007, the Fund reclassified $44 to decrease undistributed net
investment income and $44 to increase accumulated net realized gain on
investments to reflect permanent book/tax differences. The reclassification
has no impact on the net asset value of the Fund and is designed to present
the Fund's capital accounts on a tax basis.
There were no distributions paid by the Fund during the period ended August
31, 2006. The tax character of distributions paid during the year ended
August 31, 2007 was as follows:
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $53,086
-------
Total $53,086
=======
- --------------------------------------------------------------------------------
31
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2007.
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 85,596
Undistributed long-term gain 153,135
Unrealized appreciation 163,019
--------
Total $401,750
========
- --------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. 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 $1,997 in underwriting commissions on the
sale of Class A shares during the year ended August 31, 2007.
D. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates. Net realized gains and losses on foreign currency
transactions, if any, represent, among other things, the net realized gains
and losses on foreign currency contracts, disposition of foreign currencies
and the difference between the amount of income accrued and the U.S.
dollars actually received. Further, the effects of changes in foreign
currency exchange rates on investments are not segregated in the statement
of operations from the effects of changes in market price of those
securities but are included with the net realized and unrealized gain or
loss on investments.
E. 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
32
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
specific investment transactions (settlement hedges) or portfolio positions
(portfolio hedges). All contracts are marked to market daily at the
applicable exchange rates, and any resulting unrealized gains or losses are
recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a portfolio hedge is offset by entry into a
closing transaction or extinguished by delivery of the currency. Risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar.
At August 31, 2007, the Fund had no outstanding portfolio hedges.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredito Italiano, manages the Fund's portfolio. Management fees are
calculated daily at the annual rate of 0.75% of the Fund's average daily net
assets up to $500 million; 0.70% of the next $500 million and 0.65% of the
excess over $1 billion. For the year ended August 31, 2007, the net management
fee was equivalent to 0.75% of the average daily net assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit the
Fund's expenses to 1.30%, 2.20% and 2.20% of the average daily net assets
attributable to Class A, Class B and Class C shares, respectively. These expense
limitations are in effect through January 1, 2009 for Class A and through
January 1, 2008 for Class B and Class C shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At August 31, 2007, $89 was payable to PIM
related to management fees, administrative costs and certain other services and
is included in due to affiliates.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (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 $1,984 in transfer agent fees payable to PIMSS at August 31,
2007.
33
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
4. Distribution Plans and Service Plans
The Fund adopted a Plan of Distribution in accordance with Rule 12b-1 of the
Investment Company Act of 1940. 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 Class C
shares. Included in due to affiliates is $71 in distribution fees payable to PFD
at August 31, 2007
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within 18 months of
purchase. Class B shares that are redeemed within five years of purchase are
subject to a CDSC at declining rates beginning at 4.00% based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%. Proceeds from the
CDSCs are paid to PFD. For the year ended August 31, 2007, CDSCs in the amount
of $237 were paid to PFD.
5. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the applicable tax
authority. Tax positions deemed to not meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the reporting period in which
they are realized. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of no
later than February 29, 2008. At this time, management is evaluating the
implications of
34
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FIN 48 and any impact in the financial statements has not yet been determined.
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of SFAS
157 will have on the Fund's financial statement disclosures.
35
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Trustees of Pioneer Series Trust V and Shareholders of Pioneer Global
Select Equity Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Global Select Equity Fund (the Fund)
(one of the portfolios constituting Pioneer Series Trust V) as of August 31,
2007, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2007, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Global Select Equity Fund at August 31, 2007, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/Ernst & Young LLP
Boston, Massachusetts
October 12, 2007
36
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's affairs.
The officers of the Fund are responsible for the Fund's operations. The Fund's
Trustees and officers are listed below, together with their principal
occupations during the past five years. Trustees who are interested persons of
the Fund within the meaning of the 1940 Act are referred to as Interested
Trustees. Trustees who are not interested persons of the Fund are referred to as
Independent Trustees. Each of the Trustees (except Mr. Kingsbury, Mr. West and
Mr. Bock) serves as a Trustee of each of the 82 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer Funds").
Mr. Kingsbury serves as Trustee of 34 of the 82 Pioneer Funds, Mr. West serves
as Trustee of 33 of the 82 Pioneer Funds, and Mr. Bock serves as Trustee of 81
of the 82 Pioneer Funds. The address for all Interested Trustees and all
officers of the fund is 60 State Street, Boston, Massachusetts 02109.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.pioneerfunds.com and on the SEC's web site at http://www.sec.gov.
37
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Other Directorships
Name and Age With the Fund and Term of Office Past Five Years Held by this Trustee
John F. Cogan, Jr. (81)* Chairman of the Trustee since 2005. Deputy Chairman and a Director of None
Board, Trustee and Serves until a Pioneer Global Asset Management S.p.A.
President successor trustee ("PGAM"); Non-Executive Chairman and a
is elected or Director of Pioneer Investment
earlier retirement Management USA Inc. ("PIM-USA");
or removal. Chairman and a Director of Pioneer;
Chairman and Director of Pioneer
Institutional Asset Management, Inc.
(since 2006); Director of Pioneer
Alternative Investment Management
Limited (Dublin); President and a
Director of Pioneer Alternative
Investment Management (Bermuda) Limited
and affiliated funds; Direc- tor of
PIOGLOBAL Real Estate Investment Fund
(Russia) (until June 2006); Director of
Nano-C, Inc. (since 2003); Director of
Cole Management Inc. (since 2004);
Director of Fiduciary Counseling, Inc.;
President and Director of Pioneer Funds
Distributor, Inc. ("PFD") (until May
2006); President of all of the Pioneer
Funds; and Of Counsel, Wilmer Cutler
Pickering Hale and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (49)* Trustee and Executive Trustee since Director, CEO and President of Pioneer None
Vice President March 2007. Serves Investment Management USA Inc.; Pioneer
until a successor Investment Management, Inc. and Pioneer
trustee is elected Institutional Asset Management, Inc.
or earlier (since March 2007); Executive Vice
retirement or President of all of the Pioneer Funds
removal. (since March 2007); Director of Pioneer
Global Asset Management S.p.A. (since
March 2007); Head of New Markets
Division, Pioneer Global Asset
Management S.p.A. (2000 - 2007)
- ------------------------------------------------------------------------------------------------------------------------------------
38
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Position Held Length of Service
Name, Age and Address With the Fund and Term of Office
David R. Bock (63) Trustee Trustee since 2005.
3050 K Street NW, Serves until a succes-
Washington, DC 20007 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 2005.
3509 Woodbine Street Serves until a succes-
Chevy Chase, MD 20815 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Margaret B.W. Graham (60) Trustee Trustee since 2005.
1001 Sherbrooke Street West, Serves until a succes-
Montreal, Quebec, Canada sor trustee is elected
H3A 1G5 or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Other Directorships
Name, Age and Address Principal Occupation During Past Five Years Held by this Trustee
David R. Bock (63) Executive Vice President and Chief Financial Officer, I-trax, Director of The Enterprise
3050 K Street NW, Inc. (publicly traded health care services company) (2004 Social Investment
Washington, DC 20007 - present); Partner, Federal City Capital Advisors (boutique Company (privately-held
merchant bank) (1997 to 2004); and Executive Vice affordable housing
President and Chief Financial Officer, Pedestal Inc. finance company); and
(internet-based mortgage trading company) (2000 - 2002) Director of New York
Mortgage Trust (publicly
traded mortgage REIT)
- --------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) President, Bush International, LLC (international financial Director of Brady Corpora-
3509 Woodbine Street advisory firm) tion (industrial identifica-
Chevy Chase, MD 20815 tion and specialty coated
material products
manufacturer); Director of
Briggs & Stratton Co.
(engine manufacturer);
Director of UAL Corpora-
tion (airline holding
company); and Director of
Mantech International
Corporation (national
security, defense, and
intelligence technology
firm)
- --------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (60) Founding Director, Vice-President and Corporate Secretary, None
1001 Sherbrooke Street West, The Winthrop Group, Inc. (consulting firm); and Desautels
Montreal, Quebec, Canada Faculty of Management, McGill University
H3A 1G5
- ------------------------------------------------------------------------------------------------------------------------------------
39
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Position Held Length of Service
Name, Age and Address With the Fund and Term of Office
Thomas J. Perna (56) Trustee Trustee since 2006.
89 Robbins Avenue, Serves until a succes-
Berkeley Heights, NJ 07922 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 2005.
200 State Street, 12th Floor, Serves until a succes-
Boston, MA 02109 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Stephen K. West (78) Trustee Trustee since 2005.
125 Broad Street, Serves until a succes-
New York, NY 10004 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 2005.
One North Adgers Wharf, Serves until a succes-
Charleston, SC 29401 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Other Directorships
Name, Age and Address Principal Occupation During Past Five Years Held by this Trustee
Thomas J. Perna (56) Private investor (2004 - present); and Senior Executive Director of Quadriserv
89 Robbins Avenue, Vice President, The Bank of New York (financial and securi- Inc. (technology products
Berkeley Heights, NJ 07922 ties services) (1986 - 2004) for securities lending
industry)
- -------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) President and Chief Executive Officer, Newbury, Piret & Director of New America
200 State Street, 12th Floor, Company, Inc. (investment banking firm) High Income Fund, Inc.
Boston, MA 02109 (closed-end investment
company)
- -------------------------------------------------------------------------------------------------------------------------
Stephen K. West (78) Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss
125 Broad Street, Helvetia Fund, Inc.
New York, NY 10004 (closed-end investment
company)
- -------------------------------------------------------------------------------------------------------------------------
John Winthrop (71) President, John Winthrop & Co., Inc. (private investment None
One North Adgers Wharf, firm)
Charleston, SC 29401
- -------------------------------------------------------------------------------------------------------------------------
40
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age With the Fund and Term of Office
Dorothy E. Bourassa (59) Secretary Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Christopher J. Kelley (42) Assistant Secretary Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Mark E. Bradley (47) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Gary Sullivan (49) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Dorothy E. Bourassa (59) Secretary of PIM-USA; Senior Vice President - Legal of None
Pioneer; Secretary/Clerk of most of PIM-USA's subsidiar-
ies; and Secretary of all of the Pioneer Funds since
September 2003 (Assistant Secretary from November
2000 to September 2003)
- -------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (42) Vice President and Senior Counsel of Pioneer since July None
2002; Vice President and Senior Counsel of BISYS Fund
Services, Inc. (April 2001 to June 2002); Senior Vice
President and Deputy General Counsel of Funds Distribu-
tor, Inc. (July 2000 to April 2001), and Assistant Secretary
of all of the Pioneer Funds since September 2003
- -------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (62) Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Treasurer of all of
the Pioneer Funds
- -------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (47) Deputy Treasurer of Pioneer since 2004; Treasurer and None
Senior Vice President, CDC IXIS Asset Management
Services from 2002 to 2003; and Assistant Treasurer of
all of the Pioneer Funds since November 2004
- -------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Vice President - Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
- -------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Fund Accounting Manager - Fund Accounting, Administra- None
tion and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
- -------------------------------------------------------------------------------------------------------------------------------
41
Pioneer Global Select Equity Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Other
Directorships
Position Held Length of Service Principal Occupation Held by this
Name and Age With the Fund and Term of Office During Past Five Years Officer
Katherine Kim Sullivan (33) Assistant Treasurer Since 2005. Serves at Fund Administration Manager - Fund None
the discretion of the Accounting, Administration and
Board Controllership Services since June 2003;
Assistant Vice President - Mutual Fund
Operations of State Street Corporation
from June 2002 to June 2003 (formerly
Deutsche Bank Asset Management); and
Assistant Treasurer of all of the
Pioneer Funds since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Since January 2007. Chief Compliance Officer of Pioneer None
Officer Serves at the discre- since December 2006 and of all the
tion of the Board Pioneer Funds since January 2007; Vice
President and Compliance Officer, MFS
Investment Management (August 2005 to
December 2006); Consultant, Fidelity
Investments (February 2005 to July
2005); Independent Consultant (July
1997 to February 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers
or directors of the fund's investment adviser and certain of its affiliates.
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly
owned by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. Pioneer, the fund's investment adviser, provides
investment management and financial services to mutual funds, institutional and
other clients.
42
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
43
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
44
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PIONEER
-------
HIGH INCOME
MUNICIPAL
FUND
PIMAX
Ticker Symbol
Annual
Report
8/31/07
[LOGO] PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 13
Schedule of Investments 15
Financial Statements 20
Notes to Financial Statements 27
Report of Independent Registered Public Accounting Firm 33
Trustees, Officers and Service Providers 34
President's
Dear Shareowner,
- --------------------------------------------------------------------------------
Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
were particularly useful guides during the past year, when an otherwise healthy
long-term bull market was buffeted by problems in the mortgage and banking
industries.
Since mid-year, issues tied to poor underwriting practices in the subprime
sector of the mortgage industry, and to problems with risk management by banks
and hedge funds, have resulted in increased market volatility and rising
concern about risks to U.S. economic growth.
Even against this backdrop, the long-term performance of major asset classes
remained positive. In the 12 months ending August 31, 2007, equity investors
were generally rewarded as, despite a late-July decline, the Standard & Poor's
500 Index returned 15%, the Dow Jones Industrial Average returned 20%, and the
NASDAQ Composite Index returned 19%. International developed and emerging
markets equities performed well also, with the MSCI EAFE Developed Market Index
returning 19% and the MSCI Emerging Markets Index returning 44% over the
12-month period. The U.S. bond market, as measured by the Lehman Aggregate Bond
Index, returned 5% in the 12 months ending August 31, 2007. The U.S. high-yield
bond market, as measured by the Merrill Lynch High Yield Bond Master II Index,
returned 7% for the same period, reflecting its higher coupon yield.
U.S. economic growth has slowed in the past year, but this was due as much to
the natural maturation of the cyclical expansion, as U.S. factories approached
full utilization and the labor market approached full employment, as it was to
rising commodity prices and short-term interest rates. This slowdown was,
therefore, not entirely unwelcome, as it reduced the threat of higher
inflation. More recently, however, there has been increasing concern that
falling home prices and/or banks' unwillingness to lend pose a larger and more
imminent threat to the economy.
In Europe, solid GDP growth driven by a positive operating environment for
European companies, especially exporters, has driven unemployment lower and
supported growing consumption. Japanese economic growth also continues to make
progress, and the country's deflationary problems are gradually receding.
Economic growth in emerging market countries remains faster than in the
developed world as they persist in "catching up," led by China, which continues
its rise as a world economic power.
2
Letter
The U.S. Federal Reserve and the world's other central banks have pursued
policies aimed at producing low and stable inflation, believed to be the best
backdrop for steady economic growth and low average unemployment over the long
term. Keeping inflation low is also an important support for stock and bond
valuations, and so central bank policies have also been "investor friendly."
The central banks have responded to this past summer's liquidity squeeze in the
inter-bank and commercial paper markets by acting as the "lenders of last
resort" to limit the risk of problems spreading to the broader economy. Looking
forward, the economic outlook and equity valuations appear generally positive,
although the current environment is plagued by fears that subprime mortgage
problems will result in a systemic liquidity/credit crunch. While falling risk
tolerances may depress asset prices in the short term, valuations look
reasonable if credit market problems do not spread to the broader economy.
Sudden swings in the markets are always to be expected. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to your particular risk
tolerance and investment objective.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 8/31/07
- --------------------------------------------------------------------------------
During a time of substantial market volatility, shareholders in Pioneer High
Income Municipal Fund were rewarded with a relatively high level of tax-free
income. In the following interview, portfolio manager Timothy Pynchon discusses
the factors that affected the municipal bond market and the Fund over the
semiannual period.
Q: How did the Fund perform during the period ending August 31, 2007?
A: For the six-month period ended August 31, 2007, Pioneer High Income
Municipal Fund's Class A shares produced a total return of -2.49% at net
asset value. The Fund's benchmark, the Lehman Brothers High Yield Municipal
Bond Index, returned -1.89% for the same period, and the average return of
the 95 funds in the Lipper High Yield Municipal Debt Funds category was
-3.31% for the six-month period ended August 31, 2007. Lipper is an
independent monitor of mutual fund performance. The Fund's Class A shares
generated a 30-day SEC tax-free yield of 5.54%, based on the maximum income
tax rate of 35%. At the end of the period, the Fund had 38 issues in 21
states, and the average credit quality of the portfolio was BB.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: What was the investment backdrop like during the six months?
A: The period can be divided into two distinct parts. For the first five
months, high-yield municipal securities posted solid gains against a
backdrop of relatively strong economic growth and relatively low interest
rates. Investor demand was robust, as new types of investors, such as hedge
funds, sought the higher tax-advantaged yields that below-investment-grade
municipal bonds can provide. In August it became apparent that the subprime
mortgage problem that had overshadowed the financial markets for several
months was worse than originally thought. (Subprime mortgages are loans to
less
4
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
creditworthy buyers.) As some home owners defaulted on their mortgages, the
lower-quality securities that were backed by those mortgages sold off, and
investors lost confidence in the riskiest assets, which had been market
leaders for more than a year.
The volatility from subprime mortgage issues affected most of the
fixed-income markets. Bond yields rose dramatically, and prices declined in
a way that we had not seen in several years. In some cases bond yields rose
80 to 120 basis points. (A basis point equals 0.01%.) The fixed-income
market was in disarray for about three weeks, before it began to firm up
and become more orderly. At the end of the period, the high-yield municipal
bond market had been re-priced to levels that appeared appropriate for
risky and non-rated assets.
Q: How did you manage the Fund in this environment?
A: We had no exposure to subprime mortgages during the period; however, the
subprime mortgage problem affected virtually all fixed-income assets. While
some of our positions lost value, we viewed the market volatility as an
opportunity and positioned the Fund to deliver what we believe will be a
strong total return in the future. As yields rose and prices declined, we
sought to add yield and raise the credit quality of the portfolio. We
traded some of the portfolio's non-rated credits for BBB-rated tobacco
bonds, which we purchased at deep discounts and which we believe should
benefit from capital appreciation. (Tobacco bonds are backed by tobacco
companies' payments to states as part of the Master Settlement Agreement in
which states agreed to drop their lawsuits against tobacco companies in
return for a series of payments.)
We kept the portfolio diversified among a variety of economic sectors. Some
of the best yields were in the health care area, which was the biggest
position in the portfolio. Health care is a large and growing part of the
economy and encompasses several areas, such as hospitals, nursing homes and
continuing care retirement communities, among others. The education,
housing, transportation and water and sewer sectors were also represented
in the portfolio. In selecting securities, we favored revenue bonds whose
interest and principal are paid from the revenues derived from the
particular asset the bond was issued to finance. Because longer-term yields
were higher than shorter-term yields, we emphasized
5
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 8/31/07 (continued)
- --------------------------------------------------------------------------------
bonds with relatively long maturities. About 27% of the portfolio's
securities had maturities in the six to ten-year range, and about 57% had
maturities of more than 10 years at the end of the fiscal period.
Q: What influenced the Fund's performance?
A: The impact of the subprime mortgage problem on the municipal bond market
was unusual and broad. As investors grew concerned about a credit crunch,
they traded out of lower quality high-yielding assets into high quality
assets, such as Treasury securities. Because investors sought quality above
everything else, demand for high-yielding municipal bonds, like the ones
held by the portfolio, declined, and their prices went down. Even though
the yields on the securities rose, the price erosion had a negative effect
on the Fund's total return.
Q: What is your outlook for the next six months?
A: We are positive in our assessment for the high-yield municipal bond market
over the next several months. As investors seek higher tax-advantaged
yields, we expect demand for high-yield, lower-rated bonds to rise. During
the recent market volatility, we restructured the portfolio, which we
believe is poised to deliver a relatively high total return over the next
several months.
Investments in high-yield or lower-rated securities are subject to
greater-than-average risk. The Fund may invest in securities of issuers that
are in default or that are in bankruptcy.
A portion of the income may be subject to state, federal, and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax. The
fund is not diversified, which means that it can invest a higher percentage of
its assets in any one issuer than a diversified fund. Being non-diversified may
magnify the fund's losses from adverse events affecting a particular issuer. By
investing primarily in municipal securities, the portfolio is more susceptible
to adverse economic, political or regulatory developments than is a portfolio
that invests more broadly. Investments in the Fund are subject to possible loss
due to financial failure of underlying securities and their inability to meet
their debt obligations.
6
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise. Investments in the
Fund are subject to possible loss due to the financial failure of issuers of
underlying securities and their inability to meet their debt obligations. At
times, the Fund's investments may represent industries or industry sectors that
are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is not guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
7
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 8/31/07
- --------------------------------------------------------------------------------
Portfolio Quality
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINT MATERIAL]
AAA 0.6%
AA 0.6%
BBB 19.8%
BB & Lower 79.0%
Maturity Distribution
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINT MATERIAL]
0-1 Years 1.7%
1-3 Years 6.2%
3-6 Years 8.2%
6-8 Years 26.2%
8-10 Years 1.1%
10+ Years 56.6%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)*
1. Willacy County Texas Local Government, 6.88%, 9/1/28 7.70%
2. James City County VA Economic Development Authority
Residential Care Facility, 5.4%, 7/1/27 6.35
3. Michigan Public Educational Facilities Authority Revenue,
5.88%, 6/1/37 5.99
4. Tobacco Settlement Financing Corp., 5.0%, 6/1/47 5.27
5. Golden State Tobacco Security Corp., California, 5.75%, 6/1/47 5.08
6. Non-Profit Preferred Funding Various States, Floating Rate
Note, 9/15/37 4.92
7. Michigan Tobacco Settlement Financing, 6.0%, 6/1/48 4.81
8. Otero County New Mexico Jail Project Revenue, 6.0%, 4/1/28 4.77
9. Atoka County Oklahoma Healthcare, 6.63%, 10/1/37 4.37
10. Tobacco Settlement Financing Corp., 5.0%, 6/1/41 4.33
* This list excludes temporary cash and derivative instruments. Fund holdings
will vary for other periods. The holdings listed should not be considered
recommendations to buy or sell any security listed.
8
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 8/31/07 10/17/06
----- ------- --------
A $9.72 $10.00
C $9.71 $10.00
Y $9.69 $10.00
Distributions Per Share
- --------------------------------------------------------------------------------
10/17/06 - 8/31/07
------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ---------- ------------- -------------
A $0.4343 $ - $ -
C $0.3548 $ - $ -
Y $0.4316 $ - $ -
- --------------------------------------------------------------------------------
INDEX DEFINITION
- --------------------------------------------------------------------------------
The Lehman Brothers High Yield Municipal Bond Index measures the performance of
the high-yield municipal bond market. 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 an Index.
The index defined here pertains to the "Value of $10,000 Investment" charts
shown on pages 10-12.
9
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 8/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment in Pioneer High Income Municipal Fund at public offering price,
compared to that of the Lehman Brothers High Yield Municipal Bond Index.
- ---------------------------------------------------------------
Average Annual Total Returns
(As of August 31, 2007)
Net Public
Asset Offering
Period Value Price (POP)
Life-of-Class
(10/17/06) 1.45% -3.10%
- ---------------------------------------------------------------
Expense Ratio*
(Per prospectus dated October 13, 2006)
Gross Net
1.25% 0.90%
- ---------------------------------------------------------------
* Some expenses are based on estimated amounts for the current fiscal year.
[THE DATA IS A REPRESENTATION OF A LINE CHART IN THE PRINT MATETRIAL]
Pioneer Lehman Brothers
High Income High Yield Municipal
Municipal Fund Bond Index
10/06 $9,550 $10,000
8/07 9,662 9,733
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.5% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class A Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
10
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 8/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer High Income Municipal Fund, compared to that of the
Lehman Brothers High Yield Municipal Bond Index.
- -----------------------------------------------------------
Average Annual Total Returns
(As of August 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(10/17/06) 0.56% -0.41%
- -----------------------------------------------------------
Expense Ratio*
(Per prospectus dated October 13, 2006)
Gross Net
2.15% 1.80%
- -----------------------------------------------------------
* Some expenses are based on estimated amounts for the current fiscal year.
[THE DATA IS A REPRESENTATION OF A LINE CHART IN THE PRINT MATETRIAL]
Pioneer Lehman Brothers
High Income High Yield Municipal
Municipal Fund Bond Index
10/06 $10,000 $10,000
8/07 9,929 9,733
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through 1/1/08 for Class C Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
11
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 8/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer High Income Municipal Fund, compared to that of the
Lehman Brothers High Yield Municipal Bond Index.
- -----------------------------------------------------------
Average Annual Total Returns
(As of August 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(10/17/06) 1.12% 1.12%
- -----------------------------------------------------------
Expense Ratio*
(Per prospectus dated October 13, 2006)
Gross Net
0.65% 0.65%
- -----------------------------------------------------------
* Some expenses are based on estimated amounts for the current fiscal year.
[THE DATA IS A REPRESENTATION OF A LINE CHART IN THE PRINT MATETRIAL]
Pioneer Lehman Brothers
High Income High Yield Municipal
Municipal Fund Bond Index
10/06 $10,000 $10,000
8/07 10,081 9,733
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
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.
12
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on actual returns from March 1, 2007 through August 31, 2007.
Share Class A C Y
- -------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 3/1/07
Ending Account Value $ 975.01 $ 970.66 $ 971.84
On 8/31/07
Expenses Paid $ 4.48 $ 8.94 $ 6.11
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%
and 1.23% for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the half year period).
13
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer High Income Municipal Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from March 1, 2007 through August 31, 2007.
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account Value $1,000.00 $1,000.00 $1,000.00
On 3/1/07
Expenses Paid $ 4.58 $ 9.15
On 8/31/07
Expenses Paid $ 4.58 $ 9.15 $ 6.26
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 0.90%, 1.80%
and 1.23% for Class A, Class C and Class Y shares, respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the half year period).
14
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07
- --------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount (unaudited) (unaudited) Value
COLLATERALIZED DEBT OBLIGATION - 4.7%
No State - 4.7%
$ 1,175,000 12.50 NR/NR Non-Profit Preferred Funding, Various
States, Floating Rate Note, 9/15/37 $ 1,128,153
-----------
$ 1,128,153
-----------
TOTAL COLLATERALIZED DEBT
OBLIGATIONS
(Cost $1,172,200) $ 1,128,153
-----------
MUNICIPAL BONDS - 90.3%
Arizona - 0.6%
140,000 5.01 NR/Aaa Downtown Phoenix Hotel Corp., Floating
Rate Note, 7/1/40 $ 144,092
-----------
$ 144,092
-----------
California - 5.9%
150,000 BBB/Baa3 Golden State Tobacco Security Corp.,
California, 5.125%, 6/1/47 $ 132,650
1,200,000 BBB/Baa3 Golden State Tobacco Security Corp.,
California, 5.75%, 6/1/47 1,165,236
130,000 B-/NR Valley Health Systems CA Certificates
of Participation, 6.875%, 5/15/23 130,043
-----------
$ 1,427,929
-----------
Colorado - 4.1%
1,000,000 NR/NR Madre Metropolitan District No. 2
Colorado, 5.5%, 12/1/36 $ 862,760
130,000 CCC/B3 Northwest Parkway Public Highway
Authority Co., 7.125%, 6/15/41 136,497
-----------
$ 999,257
-----------
Florida - 2.0%
475,000 NR/NR Madison County Florida Revenue,
6.0%, 7/1/25 $ 479,589
-----------
$ 479,589
-----------
Illinois - 3.1%
755,000 NR/B2 Illinois Health Facilities Authority
Revenue, 6.7%, 3/1/14 $ 753,037
-----------
$ 753,037
-----------
Louisiana - 2.3%
560,000 NR/NR Louisiana Public Facilities Authority
Revenue, 6.25%, 10/1/11 $ 561,859
-----------
$ 561,859
-----------
The accompanying notes are an integral part of these financial statements. 15
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount (unaudited) (unaudited) Value
Massachusetts - 0.6%
$ 140,000 5.66 NR/Aa3 Massachusetts State Housing,
Floating Rate Note, 12/1/45 (144A) $ 141,903
-----------
$ 141,903
-----------
Michigan - 10.9%
160,000 NR/NR Doctor Charles Drew Academy,
5.7%, 11/1/36 $ 152,021
1,450,000 NR/NR Michigan Public Educational Facilities
Authority Revenue, 5.875%, 6/1/37 1,375,282
1,100,000 BBB/NR Michigan Tobacco Settlement
Financing, 6.0%, 6/1/48 1,103,905
-----------
$ 2,631,208
-----------
Missouri - 4.2%
150,000 NR/NR Kansas City Industrial Development
Authority, 5.875%, 1/1/37 (144A) $ 141,888
860,000 NR/CAA2 St. Louis MO Industrial Development
Revenue, 7.25%, 12/15/35 865,435
-----------
$ 1,007,323
-----------
Montana - 0.6%
215,000 NR/NR Hardin Montana Tax Increment,
0.0%, 9/1/31 $ 138,791
-----------
$ 138,791
-----------
New Jersey - 10.8%
1,000,000 NR/NR New Jersey Economic Development
Authority, 5.25%, 11/15/36 $ 911,190
230,000 NR/NR New Jersey Economic Development
Authority, 5.875%, 1/1/37 224,761
500,000 BB/Ba2 New Jersey Health Care Facilities,
5.125%, 7/1/14 476,800
1,150,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/41 994,635
-----------
$ 2,607,386
-----------
New Mexico - 4.5%
1,150,000 NR/NR Otero County New Mexico Jail Project
Revenue, 6.0%, 4/1/28 $ 1,095,180
-----------
$ 1,095,180
-----------
16 The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount (unaudited) (unaudited) Value
Nevada - 2.8%
$ 250,000 B/NR Clark County Industrial Development
Revenue, 5.5%, 10/1/30 $ 237,255
430,000 NR/NR Director State NV Department
Business, 7.375%, 1/1/40 432,176
-----------
$ 669,431
-----------
New York - 0.6%
135,000 CCC+/CAA1 New York City, NY, Industrial,
6.9%, 8/1/24 $ 134,984
-----------
$ 134,984
-----------
Ohio - 0.4%
100,000 B/NR Belmont County Ohio Health Systems,
5.7%, 1/1/13 $ 97,044
-----------
$ 97,044
-----------
Oklahoma - 4.7%
1,000,000 NR/NR Atoka County Oklahoma Healthcare,
6.625%, 10/1/37 $ 1,002,480
125,000 BB/NR Jackson County Oklahoma Memorail
Hospital, 7.3%, 8/1/15 125,609
-----------
$ 1,128,089
-----------
Pennsylvania - 1.6%
135,000 B/NR Columbia County Pennsylvania
Hospital, 5.85%, 6/1/24 $ 120,469
350,000 NR/NR Delaware County Pennsylvania
Industrial Development,
9.0%, 8/1/31 271,905
-----------
$ 392,374
-----------
Texas - 13.2%
150,000 NR/NR Gulf Coast Waste Disposal Authority,
Texas Revenue, 7.0%, 12/1/36 $ 155,576
635,000 NR/NR Maverick County Texas Public Facilities,
6.25%, 2/1/24 620,954
520,000 NR/NR Maverick County Texas Public Facilities,
6.375%, 2/1/29 508,394
135,000 NR/NR Willacy County Texas Local
Government, 6.0%, 3/1/09 137,622
1,750,000 NR/NR Willacy County Texas Local
Government, 6.875%, 9/1/28 1,766,380
-----------
$ 3,188,926
-----------
The accompanying notes are an integral part of these financial statements. 17
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Floating S&P/Moody's
Principal Rate (c) Ratings
Amount (unaudited) (unaudited) Value
Virginia - 11.0%
$1,590,000 NR/NR James City County VA Economic
Development Authority Residential
Care Facility, 5.4%, 7/1/27 $ 1,457,680
1,400,000 BBB/Baa3 Tobacco Settlement Financing Corp.,
5.0%, 6/1/47 1,209,371
-----------
$ 2,667,051
-----------
Washington - 4.0%
1,000,000 AAA/AAA Washington State Housing Finance,
5.625%, 1/1/38 $ 957,210
-----------
$ 957,210
-----------
Wisconsin - 2.4%
600,000 NR/NR Aztalan Wisconsin Exempt Facilities
Revenue, 7.5%, 5/1/18 $ 587,538
-----------
$ 587,538
-----------
TOTAL MUNICIPAL BONDS
(Cost $22,126,117) $21,810,201
-----------
Shares
TAX EXEMPT MONEY MARKET MUTUAL FUND - 0.0%
7,719 3.78 Blackrock Liquidity Funds MuniFund
Portfolio $ 7,719
-----------
TOTAL TAX EXEMPT MONEY MARKET
MUTUAL FUND
(Cost $7,719) $ 7,719
-----------
TOTAL INVESTMENT IN SECURITIES - 95.0%
(Cost $23,306,036) (a)(b) $22,946,073
-----------
OTHER ASSETS AND LIABILITIES - 5.0% $ 1,214,962
-----------
TOTAL NET ASSETS - 100.0% $24,161,035
===========
(a) The concentration of investments by type of obligation/market sector is as
follows:
Insured 0.6%
Revenue Bonds:
Health Revenue 30.9
Special Revenue 4.3
Various Revenues 57.7
Transportation Revenue 0.6
Water & Sewer 3.6
Housing 1.6
Education Revenue 0.7
-----
100.0%
=====
18 The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(b) At August 31, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $23,329,413 was as follows:
Aggregate gross unrealized gain for all investments in which there
is an excess of value over tax cost $ 207,943
Aggregate gross unrealized loss for all investments in which there
is an excess of tax cost over value (591,283)
----------
Net unrealized loss $ (383,340)
==========
(c) Debt obligation initially issued at one coupon which converts to a higher
coupon at a specified date. The rate shown is the rate at period end.
NR Not rated by either S&P or Moody's.
Purchases and sales of securities (excluding temporary cash investments) for the
period ended August 31, 2007 aggregated $37,612,208 and $13,690,196,
respectively.
The accompanying notes are an integral part of these financial statements. 19
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 8/31/07
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (cost $23,306,036) $22,946,073
Cash 30,905
Receivables -
Investment securities sold 2,377,372
Fund shares sold 525,350
Interest 370,777
Due from Pioneer Investment Management, Inc. 8,028
Other 28,058
-----------
Total assets $26,286,563
-----------
LIABILITIES:
Payables -
Investment securities purchased $ 1,964,510
Fund shares repurchased 24,312
Dividends 83,862
Due to affiliates 558
Accrued expenses 52,286
-----------
Total liabilities $ 2,125,528
-----------
NET ASSETS:
Paid-in capital $25,122,587
Undistributed net investment income 24,440
Accumulated net realized loss on investments (626,029)
Net unrealized loss on investments (359,963)
-----------
Total net assets $24,161,035
===========
NET ASSET VALUE PER SHARE:
(No Par value, Unlimited number of shares authorized)
Class A (based on $16,636,807/1,710,980 shares) $ 9.72
===========
Class C (based on $6,444,721/663,549 shares) $ 9.71
===========
Class Y (based on $1,079,507/111,454 shares) $ 9.69
===========
MAXIMUM OFFERING PRICE:
Class A ($9.72 [divided by] 95.5%) $ 10.18
===========
20 The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Period from 10/17/06 (Commencement of Operations) to 8/31/07
INVESTMENT INCOME:
Interest $ 559,584
----------
EXPENSES:
Management fees $45,234
Transfer agent fees and expenses
Class A 799
Class C 590
Class Y 35
Distribution fees
Class A 14,462
Class C 22,792
Administrative reimbursements 2,036
Custodian fees 10,005
Registration fees 10,260
Professional fees 51,622
Printing expense 14,124
Fees and expenses of nonaffiliated trustees 7,254
Miscellaneous 6,518
-------
Total expenses $ 185,731
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. (80,613)
----------
Net expenses $ 105,118
----------
Net investment income $ 454,466
----------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $ (625,733)
----------
Change in net unrealized loss on investments $ (359,963)
----------
Net loss on investments $ (985,696)
----------
Net decrease in net assets resulting from operations $ (531,230)
==========
The accompanying notes are an integral part of these financial statements. 21
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Period from 10/17/06 (Commencement of Operations) to 8/31/07
10/17/06 to
8/31/07
FROM OPERATIONS:
Net investment income $ 454,466
Net realized loss on investments (625,733)
Change in net unrealized loss on investments (359,963)
-----------
Net decrease in net assets resulting from operations $ (531,230)
-----------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.43 per share) $ (295,762)
Class C ($0.35 per share) (93,993)
Class Y ($0.43 per share) (43,821)
-----------
Total distributions to shareowners $ (433,576)
-----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $22,715,434
Reinvestment of distributions 46,713
Cost of shares repurchased (636,306)
-----------
Net increase in net assets resulting from
Fund share transactions $22,125,841
-----------
Net increase in net assets $21,161,035
NET ASSETS:
Beginning of period (initial capitalization - 300,000 shares) 3,000,000
-----------
End of period $24,161,035
===========
Undistributed net investment income $ 24,440
===========
22 The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
'07 Shares '07 Amount
CLASS A*
Shares sold 1,665,425 $16,880,297
Reinvestment of distributions 3,627 36,350
Less shares repurchased (58,072) (581,249)
--------- -----------
Net increase 1,610,980 $16,335,398
========= ===========
CLASS C*
Shares sold 568,175 $ 5,720,137
Reinvestment of distributions 970 9,698
Less shares repurchased (5,596) (55,057)
--------- -----------
Net increase 563,549 $ 5,674,778
========= ===========
CLASS Y*
Shares sold 11,386 $ 115,000
Reinvestment of distributions 68 665
--------- -----------
Net increase 11,454 $ 115,665
========= ===========
* Class A, C and Y shares were first publicly offered on October 17, 2006.
The accompanying notes are an integral part of these financial statements. 23
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
(Commencement
of Operations)
to 8/31/07
CLASS A
Net asset value, beginning of period $ 10.00
-------
Increase from investment operations:
Net investment income $ 0.44
Net realized and unrealized loss on investments (0.29)
-------
Net increase in net assets from investment operations $ 0.15
Distributions to shareowners:
Net investment income (0.43)
-------
Net decrease in net asset value $ (0.28)
-------
Net asset value, end of period $ 9.72
=======
Total return* 1.45%***
Ratio of net expenses to average net assets 0.90%**
Ratio of net investment income to average net assets 5.31%**
Portfolio turnover rate 130%***
Net assets, end of period (in thousands) $16,637
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 1.77%**
Net investment income 4.44%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 0.90%**
Net investment income 5.31%**
(a) Class A shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account
** Annualized.
*** Not Annualized.
24 The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
(Commencement
of Operations
to 8/31/07)
CLASS C
Net asset value, beginning of period $10.00
------
Increase from investment operations:
Net investment income $ 0.36
Net realized and unrealized loss on investments (0.30)
------
Net increase in net assets from investment operations $ 0.06
Distributions to shareowners:
Net investment income (0.35)
------
Net decrease in net asset value $(0.29)
------
Net asset value, end of period $ 9.71
======
Total return* 0.56%***
Ratio of net expenses to average net assets 1.80%**
Ratio of net investment income to average net assets 4.35%**
Portfolio turnover rate 130%***
Net assets, end of period (in thousands) $6,445
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 2.72%**
Net investment income 3.43%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.80%**
Net investment income 4.35%**
(a) Class C shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period and no sales
charges. Total return would be reduced if sales charges were taken into
account
** Annualized.
*** Not Annualized.
The accompanying notes are an integral part of these financial statements. 25
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
(Commencement
of Operations
to 8/31/07)
CLASS Y
Net asset value, beginning of period $10.00
------
Increase from investment operations:
Net investment income $ 0.42
Net realized and unrealized loss on investments (0.30)
------
Net increase in net assets from investment operations $ 0.12
Distributions to shareowners:
Net investment income (0.43)
------
Net decrease in net asset value $(0.31)
------
Net asset value, end of period $ 9.69
======
Total return* 1.12%***
Ratio of net expenses to average net assets 1.23%**
Ratio of net investment income to average net assets 4.70%**
Portfolio turnover rate 130%***
Net assets, end of period (in thousands) $1,080
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 2.11%**
Net investment income 3.82%**
Ratios with waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.23%**
Net investment income 4.70%**
(a) Class Y shares were first publicly offered on October 17, 2006.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
*** Not Annualized.
26 The accompanying notes are an integral part of these financial statements.
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer High Income Municipal Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust registered under
the Investment Company Act of 1940 as an open-end management investment
company. The Fund is non-diversified. The Fund commenced operations on October
17, 2006. The investment objective of the Fund is to maximize total return
through a combination of income that is exempt from regular federal income tax
and capital appreciation.
The Fund offers three classes of shares designated as Class A, Class C, and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidations, except that each class of shares can
bear different transfer agent and distribution fees and has exclusive voting
rights with respect to the distribution plans that have been adopted by Class A
and Class C shareowners, respectively. There is no distribution plan for Class
Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses, and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. More detailed descriptions of the Fund's principal
risks are contained in the Fund's prospectuses. Please refer to those documents
when considering the Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which, are consistent with
those policies generally accepted in the investment company industry:
27
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. Securities
are valued at prices supplied by independent pricing services, which
consider such factors as Treasury spreads, yields, maturities and ratings.
Valuations may be supplemented by dealers and other sources, as required.
Securities for which there are no other readily available market quotations
are valued at their fair values as determined by, or under the direction of
the Board of Trustees. At August 31, 2007 there were no securities fair
valued. Temporary cash investments are valued at cost which approximates
market value.
Discount and premium on debt securities are accreted or amortized,
respectively, daily into interest income on a yield-to-maturity basis with
a corresponding increase or decrease in the cost basis of the security.
Interest income is recorded on the accrual basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. 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, exempt interest income, and net realized capital
gains, if any, to its shareowners. Therefore, no federal tax provision is
required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as 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 Fund has elected to defer approximately $626,029 of capital losses
recognized between November 1, 2006 and August 31, 2007 to its fiscal year
ending August 31, 2008.
28
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Fund has reclassified $3,254 to decrease paid-in capital, $296 to
increase accumulated net realized loss on investments and $3,550 to
increase undistributed net investment income to reflect permanent book/tax
differences. The reclassification has no impact on the net asset value of
the Fund and is designed to present the Fund's capital accounts on a tax
basis.
The tax character of distributions paid during the year ended August 31,
2007 was as follows:
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $433,538
Ordinary income 38
--------
Total $433,576
========
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2007.
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Undistributed tax-exempt income $ 131,679
Current year dividend payable (83,862)
Current year post-october loss deferral (626,029)
Unrealized depreciation (383,340)
---------
Total $(961,552)
=========
- --------------------------------------------------------------------------------
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax basis adjustments on partnerships and the tax
treatment of premium and amortization.
C. 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 $11,099 in underwriting commissions on the
sale of Class A shares during the period ended August 31, 2007.
29
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares 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.
The Fund declares, as daily dividends, substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. 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 C, and Class Y shares can bear different
transfer agent and distribution fees.
2. Management Agreement
Pioneer Investment Management, Inc., (PIM), a wholly owned indirect subsidiary
of UniCredito Italiano, manages the Fund's portfolio. Management fees are
calculated daily at the annual rate of 0.50% of the Fund's average daily net
assets up to $500 million; 0.475% of the next $500 million; and 0.45% of the
excess over $1 billion. For the year ended August 31, 2007, the net management
fee was equivalent to 0.50% of average daily net assets.
PIM has agreed not to impose all or a portion of its management fee and to
assume other operating expenses (excluding taxes, commissions, interest and
extraordinary expenses) of the Fund to the extent necessary to limit expenses
to 0.90% and 1.80% of the average daily net assets attributable to Class A
shares and Class C shares, respectively. The Class A limitation is in effect
through January 1, 2009 and the Class C limitation is in effect through January
1, 2008.
30
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 August 31, 2007, $342 was payable to PIM
related to management fees, administrative costs 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 shareholder services to the Fund at
negotiated rates. Included in due to affiliates is $0 in transfer agent fees
payable from PIMSS at August 31, 2007.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan
and Class C 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 C Plan,
the Fund pays PFD 1.00% of the average daily net assets attributable to Class C
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 C shares. Included in due to
affiliates is $216 in distribution fees payable to PFD at August 31, 2007.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to
PFD. There is no CDSC for Class Y shares. For the period ended August 31, 2007,
no CDSCs were paid to PFD.
31
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned
on cash held by PIMSS. For the period ended August 31, 2007, the Fund's
expenses were not reduced under such arrangements.
6. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the applicable tax
authority. Tax positions deemed to not meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the reporting period in which
they are realized. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of no
later than February 29, 2008. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
been determined.
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of
SFAS 157 will have on the Fund's financial statement disclosures.
32
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Trustees of Pioneer Series Trust V and
Shareholders of Pioneer High Income Municipal Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer High Income Municipal Fund (the Fund)
(one of the portfolios constituting Pioneer Series Trust V) as of August 31,
2007, and the related statement of operations, the statement of changes in net
assets, and the financial highlights for the period from October 17, 2006
(Commencement of Operations) to August 31, 2007. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of August 31, 2007, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer High Income Municipal Fund at August 31, 2007, the results of its
operations, the changes in its net assets, and the financial highlights for the
period from October 17, 2006 (Commencement of Operations) to August 31, 2007,
in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 12, 2007
33
Pioneer High Income Municipal Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's
affairs. The officers of the Fund are responsible for the Fund's operations.
The Fund's Trustees and officers are listed below, together with their
principal occupations during the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees (except Mr.
Kingsbury, Mr. West and Mr. Bock) serves as a Trustee of each of the 82 U.S.
registered investment portfolios for which Pioneer serves as investment adviser
(the "Pioneer Funds"). Mr. Kingsbury serves as Trustee of 34 of the 82 Pioneer
Funds, Mr. West serves as Trustee of 33 of the 82 Pioneer Funds, and Mr. Bock
serves as Trustee of 81 of the 82 Pioneer Funds. The address for all Interested
Trustees and all officers of the fund is 60 State Street, Boston, Massachusetts
02109.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Trust voted proxies relating to portfolio securities during
the most recent 12 months ended June 30, is publicly available to shareowners
at www.pioneerinvestments.com. This information is also available on our web
site and on the Securities and Exchange Commission's web site at
http://www.sec.gov.
34
Pioneer High Income Municipal Fund
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Other Directorships
Name and Age With the Fund and Term of Office Past Five Years Held by this Trustee
John F. Cogan, Jr. (81)* Chairman of the Trustee since 2005. Deputy Chairman and a Director None
Board, Trustee and Serves until a of Pioneer Global Asset
President successor trustee is Management S.p.A. ("PGAM");
elected or earlier Non-Executive Chairman and a
retirement or removal. Director of Pioneer Investment
Management USA Inc.
("PIM-USA"); Chairman and a
Director of Pioneer; Chairman
and Director of Pioneer
Institutional Asset
Management, Inc. (since 2006);
Director of Pioneer
Alternative Investment
Management Limited (Dublin);
President and a Director of
Pioneer Alternative Investment
Management (Bermuda) Limited
and affiliated funds; Director
of PIOGLOBAL Real Estate
Investment Fund (Russia)
(until June 2006); Director of
Nano-C, Inc. (since 2003);
Director of Cole Management
Inc. (since 2004); Director of
Fiduciary Counseling, Inc.;
President and Director of
Pioneer Funds Distributor,
Inc. ("PFD") (until May 2006);
President of all of the
Pioneer Funds; and Of Counsel,
Wilmer Cutler Pickering Hale
and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (49)* Trustee and Executive Trustee since March Director, CEO and President of None
Vice President 2007. Serves until a Pioneer Investment Management
successor trustee is USA Inc.; Pioneer Investment
elected or earlier Management, Inc. and Pioneer
retirement or removal. Institutional Asset
Management, Inc. (since March
2007); Executive Vice
President of all of the
Pioneer Funds (since March
2007); Director of Pioneer
Global Asset Management S.p.A.
(since March 2007); Head of
New Markets Division, Pioneer
Global Asset Management S.p.A.
(2000 - 2007)
- ------------------------------------------------------------------------------------------------------------------------------------
35
Pioneer High Income Municipal Fund
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Other Directorships
Name, Age and Address With the Fund and Term of Office Past Five Years Held by this Trustee
David R. Bock (63) Trustee Trustee since 2005. Executive Vice President and Director of The Enterprise
3050 K Street NW, Serves until a Chief Financial Officer, Social Investment
Washington, DC 20007 successor trustee is I-trax, Inc. (publicly traded Company (privately-held
elected or earlier health care services company) affordable housing
retirement or removal. (2004 - present); Partner, finance company); and
Federal City Capital Advisors Director of New York
(boutique merchant bank) (1997 Mortgage Trust (publicly
to 2004); and Executive Vice traded mortgage REIT)
President and Chief Financial
Officer, Pedestal Inc.
(internet-based mortgage
trading company) (2000 - 2002)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 2005. President, Bush International, Director of Brady
3509 Woodbine Street Serves until a LLC (international financial Corporation (industrial
Chevy Chase, MD 20815 successor trustee is advisory firm) identification and
elected or earlier specialty coated material
retirement or removal. products manufacturer);
Director of Briggs &
Stratton Co. (engine
manufacturer); Director of
UAL Corporation (airline
holding company); and
Director of Mantech
International Corporation
(national security,
defense, and intelligence
technology firm)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (60) Trustee Trustee since 2005. Founding Director, None
1001 Sherbrooke Street West, Serves until a Vice-President and Corporate
Montreal, Quebec, Canada successor trustee is Secretary, The Winthrop Group,
H3A 1G5 elected or earlier Inc. (consulting firm); and
retirement or removal. Desautels Faculty of
Management, McGill University
- ------------------------------------------------------------------------------------------------------------------------------------
36
Pioneer High Income Municipal Fund
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Other Directorships
Name, Age and Address With the Fund and Term of Office Past Five Years Held by this Trustee
Thomas J. Perna (56) Trustee Trustee since 2006. Private investor (2004 - Director of Quadriserv
89 Robbins Avenue, Serves until a present); and Senior Executive Inc. (technology products
Berkeley Heights, NJ 07922 successor trustee is Vice President, The Bank of for securities lending
elected or earlier New York (financial and industry)
retirement or removal. securities services) (1986 -
2004)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 2005. President and Chief Executive Director of New America
200 State Street, 12th Floor, Serves until a Officer, Newbury, Piret & High Income Fund, Inc.
Boston, MA 02109 successor trustee is Company, Inc. (investment (closed-end investment
elected or earlier banking firm) company)
retirement or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (78) Trustee Trustee since 2005. Senior Counsel, Sullivan & Director, The Swiss
125 Broad Street, Serves until a Cromwell (law firm) Helvetia Fund, Inc.
New York, NY 10004 successor trustee is (closed-end investment
elected or earlier company)
retirement or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 2005. President, John Winthrop & None
One North Adgers Wharf, Serves until a Co., Inc. (private investment
Charleston, SC 29401 successor trustee is firm)
elected or earlier
retirement or removal.
- ------------------------------------------------------------------------------------------------------------------------------------
37
Pioneer High Income Municipal Fund
- ------------------------------------------------------------------------------------------------------------------------------------
FUND OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Other Directorships
Name and Age With the Fund and Term of Office Past Five Years Held by this Officer
Dorothy E. Bourassa (59) Secretary Since 2005. Serves at Secretary of PIM-USA; Senior None
the discretion of the Vice President - Legal of
Board Pioneer; Secretary/Clerk of
most of PIM-USA's
subsidiaries; and Secretary of
all of the Pioneer Funds since
September 2003 (Assistant
Secretary from November 2000
to September 2003)
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (42) Assistant Secretary Since 2005. Serves at Vice President and Senior None
the discretion of the Counsel of Pioneer since July
Board 2002; Vice President and
Senior Counsel of BISYS Fund
Services, Inc. (April 2001 to
June 2002); Senior Vice
President and Deputy General
Counsel of Funds Distributor,
Inc. (July 2000 to April
2001), and Assistant Secretary
of all of the Pioneer Funds
since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2005. Serves at Vice President - Fund None
the discretion of the Accounting, Administration and
Board Controllership Services of
Pioneer; and Treasurer of all
of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (47) Assistant Treasurer Since 2005. Serves at Deputy Treasurer of Pioneer None
the discretion of the since 2004; Treasurer and
Board Senior Vice President, CDC
IXIS Asset Management Services
from 2002 to 2003; and
Assistant Treasurer of all of
the Pioneer Funds since
November 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Treasurer Since 2005. Serves at Assistant Vice President - None
the discretion of the Fund Accounting,
Board Administration and
Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Assistant Treasurer Since 2005. Serves at Fund Accounting Manager - Fund None
the discretion of the Accounting, Administration and
Board Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
38
Pioneer High Income Municipal Fund
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation During Other Directorships
Name and Age With the Fund and Term of Office Past Five Years Held by this Officer
Katherine Kim Sullivan (33) Assistant Treasurer Since 2005. Serves at Fund Administration Manager - None
the discretion of the Fund Accounting,
Board Administration and
Controllership Services since
June 2003; Assistant Vice
President - Mutual Fund
Operations of State Street
Corporation from June 2002 to
June 2003 (formerly Deutsche
Bank Asset Management); and
Assistant Treasurer of all of
the Pioneer Funds since
September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Since January 2007. Chief Compliance Officer of None
Officer Serves at the Pioneer since December 2006
discretion of the Board and of all the Pioneer Funds
since January 2007; Vice
President and Compliance
Officer, MFS Investment
Management (August 2005 to
December 2006); Consultant,
Fidelity Investments (February
2005 to July 2005);
Independent Consultant (July
1997 to February 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers or directors of the fund's investment adviser
and certain of its affiliates.
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly owned by UniCredito Italiano S.p.A. ("UniCredito
Italiano"), one of the largest banking groups in Italy. Pioneer, the fund's investment adviser, provides investment management and
financial services to mutual funds, institutional and other clients.
39
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42
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43
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44
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the
Commission's web site at http://www.sec.gov. The filed form may also be viewed
and copied at the Commission's Public Reference Room in Washington, DC.
Information regarding the operations of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
- --------------------------------------------------------------------------------
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PIONEER
-------
OAK RIDGE
ALL CAP
GROWTH
FUND
ORACX
Ticker Symbol
Annual
Report
8/31/07
[LOGO]PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 21
Notes to Financial Statements 27
Report of Independent Registered Public Accounting Firm 33
Trustees, Officers and Service Providers 34
President's
Dear Shareowner,
- --------------------------------------------------------------------------------
Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
were particularly useful guides during the past year, when an otherwise healthy
long-term bull market was buffeted by problems in the mortgage and banking
industries.
Since mid-year, issues tied to poor underwriting practices in the subprime
sector of the mortgage industry, and to problems with risk management by banks
and hedge funds, have resulted in increased market volatility and rising concern
about risks to U.S. economic growth.
Even against this backdrop, the long-term performance of major asset classes
remained positive. In the 12 months ending August 31, 2007, equity investors
were generally rewarded as, despite a late-July decline, the Standard & Poor's
500 Index returned 15%, the Dow Jones Industrial Average returned 20%, and the
NASDAQ Composite Index returned 19%. International developed and emerging
markets equities performed well also, with the MSCI EAFE Developed Market Index
returning 19% and the MSCI Emerging Markets Index returning 44% over the
12-month period. The U.S. bond market, as measured by the Lehman Aggregate Bond
Index, returned 5% in the 12 months ending August 31, 2007. The U.S. high-yield
bond market, as measured by the Merrill Lynch High Yield Bond Master II Index,
returned 7% for the same period, reflecting its higher coupon yield.
U.S. economic growth has slowed in the past year, but this was due as much to
the natural maturation of the cyclical expansion, as U.S. factories approached
full utilization and the labor market approached full employment, as it was to
rising commodity prices and short-term interest rates. This slowdown was,
therefore, not entirely unwelcome, as it reduced the threat of higher inflation.
More recently, however, there has been increasing concern that falling home
prices and/or banks' unwillingness to lend pose a larger and more imminent
threat to the economy.
In Europe, solid GDP growth driven by a positive operating environment for
European companies, especially exporters, has driven unemployment lower and
supported growing consumption. Japanese economic growth also continues to make
progress, and the country's deflationary problems are gradually receding.
Economic growth in emerging market countries remains faster than in the
developed world as they persist in "catching up," led by China, which continues
its rise as a world economic power.
2
Letter
The U.S. Federal Reserve and the world's other central banks have pursued
policies aimed at producing low and stable inflation, believed to be the best
backdrop for steady economic growth and low average unemployment over the long
term. Keeping inflation low is also an important support for stock and bond
valuations, and so central bank policies have also been "investor friendly." The
central banks have responded to this past summer's liquidity squeeze in the
inter-bank and commercial paper markets by acting as the "lenders of last
resort" to limit the risk of problems spreading to the broader economy. Looking
forward, the economic outlook and equity valuations appear generally positive,
although the current environment is plagued by fears that subprime mortgage
problems will result in a systemic liquidity/credit crunch. While falling risk
tolerances may depress asset prices in the short term, valuations look
reasonable if credit market problems do not spread to the broader economy.
Sudden swings in the markets are always to be expected. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to your particular risk
tolerance and investment objective.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 8/31/07
- --------------------------------------------------------------------------------
In the following interview, Robert McVicker, Pioneer Oak Ridge All Cap Growth
Fund's Lead Portfolio Manager, discusses the factors that influenced performance
during the period from the Fund's inception date of October 17, 2006 through
August 31, 2007.
Q: How did the U.S. stock market perform during the reporting period, and how
did this affect the performance of the Fund?
A: Stocks delivered strong overall returns during this interval, masking the
fact that the period was made up of two distinct parts. In the first part -
covering the span from the Fund's inception through the end of June 2007 -
individual stock performance was largely driven by the surge in merger and
acquisition activity led by private equity firms, which purchase public
companies at a premium in order to take them private. This phenomenon led
to strong performance not just for companies that were acquired, but also
for those seen as being likely acquisition targets. Since private equity
firms tend to focus on companies that are ripe for restructuring - rather
than those with the strongest fundamentals - lower-quality companies
generally outperformed during this period. Given that our investment style
focuses on superior companies with rising market share, a history of
consistent earnings growth, and reasonable valuations, most of the stocks
held in the Fund's portfolio did not benefit from takeover speculation
during this acquisition-fueled rally. Even so, Class A shares of the Fund
slightly outperformed the Fund's benchmark, the Russell 3000 Growth Index,
from the Fund's inception through the end of June 2007.
The second part, beginning in mid-July, saw investors' focus beginning to
turn to the U.S. housing market, the problems in the sub-prime mortgage
area, and the downturn of the global credit markets. The resulting increase
in investors' risk aversion made it more difficult and expensive for
private equity firms to borrow money to finance leveraged buyouts. A
notable outcome of this shift was the beginning of a period of greater
investor interest in higher-quality growth companies such as those held in
the Fund. This enabled the Fund to extend its lead in terms of relative
performance during the summer months. During the full period, the Class A
shares of the Fund returned 11.90%, outpacing the 10.48% return of the
benchmark, the Russell 3000 Growth Index.
4
Pioneer Oak Ridge All Cap Growth Fund
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Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: What factors helped and hurt performance during the reporting period?
A: The Fund's performance was helped by the strength of our stock selection in
the information technology, consumer discretionary, and industrials
sectors. The primary area of underperformance was materials.
With respect to individual stocks, the top contributor was Seattle-based
Aquantive, an internet marketing company that received a takeover bid from
Microsoft in mid-May at a substantial premium. Its shares, which stood at
$35.87 on May 17, closed at $63.79 the following day. Eventually, Aquantive
was acquired by Microsoft a few months later. Making the second-largest
contribution was Gamestop, a retailer that sells new and used video games
and consoles. Gamestop has benefited as consumers have upgraded their games
following the release of improved systems such as the PS3, Wii, and Xbox
360. The company has executed its business plan very well, and we believe
more upside is ahead. Precision Castparts also was a strong performer for
the Fund. A manufacturer of highly engineered industrial parts, the company
has benefited from strong demand for cost efficient new planes like the
Boeing 787, new airplane orders from emerging markets like China, and the
need for replacements in aging fleets. Rounding out the list of leading
contributors was Dade Behring, a maker of diagnostic lab equipment that was
acquired by Siemens at a 30% premium in the final month of the reporting
period; and Apple Computer, which has enjoyed strong sales across all of
its product lines. We discuss the latter in greater detail below.
The Fund's worst performer was Caremark Rx, now known as CVS Caremark
following its merger with CVS. We believed this merger failed to
appropriately value Caremark given its long track record
5
Pioneer Oak Ridge All Cap Growth Fund
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PORTFOLIO MANAGEMENT DISCUSSION 8/31/07 (continued)
- --------------------------------------------------------------------------------
of effective execution and strong market performance. Given our concerns
regarding the earnings outlook for the combined company, we elected to sell
the stock in January. The second-largest detractor was Palomar Medical
Technologies, a developer of laser-based hair removal systems. Although we
believe the company's longer-term earnings prospects from joint ventures
with Gillette and Johnson & Johnson are attractive, we elected to sell the
stock based on our concerns about the likely slowing of Palomar's sales and
profits. Also in the health care sector, Genentech underperformed due to
investor worries about increased competition for several of its drugs.
However, due to Genentech's outstanding pipeline of new drugs and our
expectation that its leading cancer drug, Avastin, will continue to drive
strong earnings growth, we decided to maintain the Fund's position as of
the end of the reporting period.
Q: In what areas have you been finding opportunities?
A: The underperformance of higher-quality stocks throughout much of the past
year afforded us the opportunity to purchase attractively-valued shares in
the types of companies we favor. For instance, we added two technology
companies - Adobe Systems and Apple - during pullbacks in the broader
market. We believe Adobe will benefit from the introduction of the new
Creative Suite 3 (CS3) product targeted to advertising firms. Adobe
purchased the software company Macromedia in 2005, and CS3 is the first
product release from the merged company. CS3 allows customers to create
print and video media for the Internet and is Adobe's largest product
launch ever. Apple, meanwhile, may be best known for its success in selling
the iPod and iPhone, but it is also enjoying success selling its Mac
computers. The Mac is especially popular with advertisers and design
professionals, and we believe its sales will benefit further from the Adobe
upgrade cycle. Since Apple has only a 4% to 5% market share in computers,
even a small increase in this percentage would have a large impact on the
company's earnings. We purchased Apple early in 2007, and the stock has
already performed well for the Fund.
We recently invested in Celgene, a biotechnology company with a very
promising cancer drug called Revlimid. The drug has proven to be effective
at fighting blood cancers, and there is evidence that it may work in
treating solid tumors as well. We believe
6
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Revlimid has tremendous potential, which could result in rapid earnings
growth for Celgene.
IntercontinentalExchange, which operates an Internet-based global
electronic marketplace for trading futures and commodities, is another new
investment for the Fund. We initiated a position during the March
correction in the broader market, giving us the opportunity to purchase
shares at about a 20% discount from their previous highs. The company is a
proven leader in the nascent over-the-counter (OTC) market for electronic
trading of numerous commodities, including oil and natural gas. This market
is expanding rapidly and we believe Intercontinental will be the main
beneficiary among the exchanges.
Q: What is your outlook for growth stocks?
A: We expect that the overall market environment will continue to be
characterized by worries about how the disruptions in the housing and
credit markets will affect consumer spending and the U.S. economy as a
whole. While we also believe overall corporate earnings growth will
continue to slow, we expect continued strength in corporate spending will
allow the U.S. economy to avoid a recession. On balance, we are cautiously
optimistic based on positive corporate earnings prospects, the reasonable
valuation level of the broader market, and our outlook for Federal Reserve
policy.
In our view, these factors point to a backdrop of slowing top-line sales
and decreasing profit margins. In this environment, companies that can
consistently deliver strong earnings growth likely will be harder to find -
and thus be awarded higher valuations. We therefore believe the stage is
set for higher-quality growth companies that exhibit superior sales and
earnings growth to outperform the overall market, which could be beneficial
for the Fund.
The Fund invests in a limited number of securities and, as a result, the Fund's
performance may be more volatile than the performance of other funds holding
more securities. At times, the Fund's investments may represent industries or
industry sectors that are interrelated or have common risks, making it more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors.
7
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 8/31/07 (continued)
- --------------------------------------------------------------------------------
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.
8
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 8/31/07
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED
MATERIAL]
U.S. Common Stocks 91.9%
Temporary Cash Investment 4.8%
Depositary Receipts for International Stocks 3.3%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED
MATERIAL]
Information Technology 28.2%
Health Care 20.4%
Industrials 16.7%
Consumer Discretionary 13.5%
Financials 7.5%
Consumer Staples 6.6%
Energy 4.0%
Telecommunication Services 1.7%
Materials 1.4%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total equity holdings)*
1. Cisco Systems, Inc. 3.73%
2. Google, Inc. 3.54
3. Apple, Inc. 3.25
4. Gamestop Corp. 3.03
5. Precision Castparts Corp. 2.96
6. Dade Behring Holdings, Inc. 2.89
7. Procter & Gamble Co. 2.64
8. General Electric Co. 2.62
9. Thermo Fisher Scientific, Inc. 2.55
10. Danaher Corp. 2.44
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
9
Pioneer Oak Ridge All Cap Growth Fund
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PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 8/31/07 10/17/06
- ----- ------- --------
A $11.19 $10.00
C $11.11 $10.00
Y $11.19 $10.00
Distributions Per Share
- --------------------------------------------------------------------------------
10/17/06 - 8/31/07
------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ----- ---------- ------------- -------------
A $ - $ - $ -
C $ - $ - $ -
Y $ - $ - $ -
- --------------------------------------------------------------------------------
INDEX DEFINITIONS
- --------------------------------------------------------------------------------
The Russell 3000 Growth Index measures the performance of large-cap U.S. growth
stocks. Index returns assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an index.
The index defined here pertains to the "Value of $10,000 Investment" charts on
pages 11-13.
10
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 8/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Oak Ridge All Cap Growth Fund at public offering
price, compared to that of the Russell 3000 Growth Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of August 31, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(10/17/06) 11.90% 5.47%
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated October 13, 2006)
Gross Net
1.35% 1.25%
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Oak Ridge Russell 3000
All Cap Growth Fund Growth Index
10/06 $ 9,425 $10,000
8/07 $10,507 $11,048
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
POP returns reflect deduction of maximum 5.75% sales charge. NAV results
represent the percent change in net asset value per share. Returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
11
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 8/31/07 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Oak Ridge All Cap Growth Fund, compared to that of
the Russell 3000 Growth Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of August 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(10/17/06) 11.10% 10.10%
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated October 13, 2006)
Gross Net
2.25% 2.15%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Oak Ridge Russell 3000
All Cap Growth Fund Growth Index
10/06 $10,000 $10,000
8/07 $10,966 $11,048
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/08 for Class C Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 8/31/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Oak Ridge All Cap Growth Fund, compared to that of
the Russell 3000 Growth Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of August 31, 2007)
If If
Period Held Redeemed
Life-of-Class
(10/17/06) 11.90% 11.90%
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated October 13, 2006)
Gross Net
0.90% 0.90%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Pioneer Oak Ridge Russell 3000
All Cap Growth Fund Growth Index
10/06 $10,000 $10,000
8/07 $11,168 $11,048
Call 1-800-225-6292 or www.pioneerinvestments.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. Class Y shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends, and capital gains. Other share classes are
available for which performance and expenses will differ.
Some expenses are based on estimated amounts for the current fiscal year.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
13
Pioneer Oak Ridge All Cap Growth Fund
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COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Oak Ridge Large Cap Growth Fund
Based on actual returns from March 1, 2007 through August 31, 2007
Actual
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value On 3/1/07
Ending Account $1,085.35 $1,080.74 $1,088.52
Value On 8/31/07
Expenses Paid $ 6.57 $ 11.28 $ 6.58
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%,
and 1.25%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the half year period).
14
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Oak Ridge Large Cap Growth Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2007 through August 31, 2007
Hypothetical
Share Class A C Y
- --------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value On 3/1/07
Ending Account $1,018.90 $1,014.37 $1,018.90
Value On 8/31/07
Expenses Paid $ 6.36 $ 10.92 $ 6.36
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.15%
and 1.25%, for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
184/365 (to reflect the half year period).
15
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 91.7%
Energy - 3.6%
Oil & Gas Exploration & Production - 3.6%
975 Southwestern Energy Co.* $ 36,260
710 XTO Energy, Inc. 38,596
----------
$ 74,856
----------
Total Energy $ 74,856
----------
Materials - 1.3%
Specialty Chemicals - 1.3%
655 Ecolab, Inc. $ 27,287
----------
Total Materials $ 27,287
----------
Capital Goods - 11.1%
Aerospace & Defense - 4.7%
425 Boeing Co. $ 41,098
430 Precision Castparts Corp. 56,033
----------
$ 97,131
----------
Industrial Conglomerates - 2.4%
1,275 General Electric Co. $ 49,559
----------
Industrial Machinery - 4.0%
595 Danaher Corp. $ 46,208
915 Idex Corp. 35,200
----------
$ 81,408
----------
Total Capital Goods $ 228,098
----------
Commercial Services & Supplies - 4.2%
Environmental & Facilities Services - 4.2%
910 Stericycle, Inc.* $ 45,409
1,375 Waste Connections, Inc.* 41,828
----------
$ 87,237
----------
Total Commercial Services & Supplies $ 87,237
----------
Consumer Services - 1.7%
Hotels, Resorts & Cruise Lines - 1.7%
805 Marriott International, Inc. $ 35,758
----------
Total Consumer Services $ 35,758
----------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Media - 2.8%
Broadcasting & Cable TV - 1.4%
1,130 Comcast Corp.* $ 29,482
----------
Movies & Entertainment - 1.4%
1,400 News Corp., Inc. $ 28,322
----------
Total Media $ 57,804
----------
Retailing - 7.8%
Automotive Retail - 1.6%
910 O'Reilly Automotive, Inc.* $ 32,341
----------
Computer & Electronics Retail - 2.8%
1,145 Gamestop Corp.* $ 57,410
----------
General Merchandise Stores - 1.5%
490 Target Corp. $ 32,306
----------
Specialty Stores - 1.9%
1,665 Staples, Inc. $ 39,544
----------
Total Retailing $ 161,601
----------
Food, Beverage & Tobacco - 2.0%
Soft Drinks - 2.0%
615 PepsiCo, Inc. $ 41,838
----------
Total Food, Beverage & Tobacco $ 41,838
----------
Household & Personal Products - 4.1%
Household Products - 4.1%
750 Church & Dwight Co., Inc. $ 33,698
765 Procter & Gamble Co. 49,962
----------
$ 83,660
----------
Total Household & Personal Products $ 83,660
----------
Health Care Equipment & Services - 9.6%
Health Care Distributors - 1.6%
575 Henry Schein, Inc.* $ 33,459
----------
Health Care Equipment - 4.5%
725 Dade Behring Holdings, Inc. $ 54,745
490 Zimmer Holdings, Inc.* 38,382
----------
$ 93,127
----------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Health Care Services - 1.6%
660 American Healthways, Inc.*(b) $ 32,868
----------
Managed Health Care - 1.9%
490 Wellpoint, Inc.* $ 39,489
----------
Total Health Care Equipment & Services $ 198,943
----------
Pharmaceuticals & Biotechnology - 9.1%
Biotechnology - 3.3%
550 Celgene Corp.* $ 35,316
430 Genentech, Inc.* 32,168
----------
$ 67,484
----------
Life Sciences Tools & Services - 2.3%
890 Thermo Fisher Scientific, Inc.* $ 48,265
----------
Pharmaceuticals - 3.5%
750 Abbott Laboratories $ 38,933
635 Novartis AG (A.D.R.) 33,433
----------
$ 72,366
----------
Total Pharmaceuticals & Biotechnology $ 188,115
----------
Diversified Financials - 6.9%
Asset Management & Custody Banks - 1.5%
280 Affiliated Managers Group, Inc.*(b) $ 31,710
----------
Consumer Finance - 2.0%
700 American Express Co. $ 41,034
----------
Investment Banking & Brokerage - 1.6%
1,615 Charles Schwab Corp. $ 31,977
----------
Specialized Finance - 1.8%
255 IntercontinentalExchange, Inc.*(b) $ 37,197
----------
Total Diversified Financials $ 141,918
----------
Software & Services - 13.3%
Application Software - 5.0%
930 Adobe Systems, Inc.* $ 39,758
890 Amdocs, Ltd.* 31,417
975 Ansys, Inc.* 32,302
----------
$ 103,477
----------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Internet Software & Services - 4.8%
130 Google, Inc.* $ 66,983
950 J2 Global Communications, Inc.* 32,300
----------
$ 99,283
----------
IT Consulting & Other Services - 1.7%
480 Cognizant Tech Solutions Corp.* $ 35,285
----------
Systems Software - 1.8%
1,290 Microsoft Corp. $ 37,062
----------
Total Software & Services $ 275,107
----------
Technology Hardware & Equipment - 9.4%
Communications Equipment - 6.4%
2,210 Cisco Systems, Inc.* $ 70,543
1,070 Corning, Inc.* 25,006
945 Qualcomm, Inc. 37,690
----------
$ 133,239
----------
Computer Hardware - 3.0%
445 Apple, Inc.* $ 61,624
----------
Total Technology Hardware & Equipment $ 194,863
----------
Semiconductors - 3.2%
815 Microchip Technology $ 31,394
990 Texas Instruments, Inc. 33,898
----------
$ 65,292
----------
Total Semiconductors $ 65,292
----------
Telecommunication Services - 1.5%
Wireless Telecommunication Services - 1.5%
1,150 Metro PCS Communications, Inc.* $ 31,384
----------
Total Telecommunication Services $ 31,384
----------
TOTAL COMMON STOCKS
(Cost $1,713,674) $1,893,761
----------
TEMPORARY CASH INVESTMENT - 4.7%
Security Lending Collateral - 4.7%
96,176 Securities Lending Investment Fund, 5.33% $ 96,176
----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $96,176) $ 96,176
----------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
TOTAL INVESTMENT IN SECURITIES - 96.4%
(Cost $1,809,850) (a) $1,989,937
----------
OTHER ASSETS AND LIABILITIES - 3.6% $ 73,989
----------
TOTAL NET ASSETS - 100.0% $2,063,926
==========
* Non-income producing security.
(A.D.R.) American Depositary Receipt.
(a) At August 31, 2007, the net unrealized gain on investments based on
cost for federal income tax purposes of $1,820,883 was as follows
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $198,416
Aggregate gross unrealized loss for all investments in which there is
can excess of tax cost over value (29,362)
--------
Net unrealized gain $169,054
========
(b) At August 31, 2007, the following securities were out on loan:
Shares Security Value
267 Affiliated Managers Group, Inc.* $30,238
609 American Healthways, Inc.* 30,328
243 IntercontinentalExchange, Inc.* 35,447
-------
$96,013
=======
Purchases and sales of securities (excluding temporary cash investments) for
respectively.
20 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 8/31/07
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$96,013) (cost $1,809,850) $1,989,937
Cash 229,681
Receivables -
Investment securities sold 7,355
Fund shares sold 2,355
Dividends 625
Due from Pioneer Investment Management, Inc. 8,769
Other 26,554
----------
Total assets $2,265,276
----------
LIABILITIES:
Payables -
Investment securities purchased $ 57,799
Upon return of securities loaned 96,176
Due to affiliates 512
Accrued expenses 46,863
----------
Total liabilities $ 201,350
----------
NET ASSETS:
Paid-in capital $1,894,872
Accumulated net realized loss on investments (11,033)
Net unrealized gain on investments 180,087
----------
Total net assets $2,063,926
==========
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $1,062,819/94,966 shares) $ 11.19
==========
Class C (based on $618,132/55,647 shares) $ 11.11
==========
Class Y (based on $382,975/34,220 shares) $ 11.19
==========
MAXIMUM OFFERING PRICE:
Class A ($11.19 [divided by] 94.25%) $ 11.87
==========
The accompanying notes are an integral part of these financial statements. 21
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Period from 10/17/06 (Commencement of Operations) to 8/31/07
INVESTMENT INCOME:
Dividends $8,526
Interest 5,063
Income from securities loaned, net 20
------
Total investment income $ 13,609
--------
EXPENSES:
Management fees $9,953
Transfer agent fees and expenses
Class A 986
Class C 364
Class Y 183
Distribution fees
Class A 710
Class C 4,578
Administrative reimbursements 296
Custodian fees 16,428
Registration fees 11,604
Professional fees 50,658
Printing expense 13,911
Fees and expenses of nonaffiliated trustees 6,516
Miscellaneous 3,040
------
Total expenses $119,227
Less management fees waived and
expenses reimbursed by Pioneer Investment
Management, Inc. (98,431)
--------
Net expenses $ 20,796
--------
Net investment loss $ (7,187)
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (5,284)
--------
Change in net unrealized gain on investments: $180,087
--------
Net gain on investments $174,803
--------
Net increase in net assets resulting from operations $167,616
========
22 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Period from 10/17/06 (Commencement of Operations) to 8/31/07
10/17/06
to
8/31/07
FROM OPERATIONS:
Net investment loss $ (7,187)
Net realized loss on investments (5,284)
Change in net unrealized gain on investments 180,087
----------
Net increase in net assets resulting from operations $ 167,616
----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $1,129,905
Cost of shares repurchased (233,595)
----------
Net increase in net assets resulting from
Fund share transactions $ 896,310
----------
Net increase in net assets $1,063,926
NET ASSETS:
Beginning of period (initial capitalization - 100,000 shares) 1,000,000
----------
End of period $2,063,926
==========
Accumulated net investment loss $ -
==========
'07 Shares '07 Amount
CLASS A*
Shares sold 68,773 $734,945
Less shares repurchased (7,140) (77,562)
------ --------
Net increase 61,633 $657,383
====== ========
CLASS C*
Shares sold 36,449 $384,800
Less shares repurchased (14,135) (156,033)
------- --------
Net increase 22,314 $228,767
====== ========
CLASS Y*
Shares sold 887 $ 10,160
------- --------
Net increase 887 $ 10,160
====== ========
* Class A, Class C, and Class Y shares were first publicly offered on October
17, 2006.
The accompanying notes are an integral part of these financial statements. 23
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
to
8/31/07
CLASS A
Net asset value, beginning of period $10.00
------
Increase (decrease) from investment operations:
Net investment loss $(0.01)
Net realized and unrealized gain on investments 1.20
------
Net increase in net assets from investment operations $ 1.19
------
Net asset value, end of period $11.19
======
Total return* 11.90%(b)
Ratio of net expenses to average net assets+ 1.25%**
Ratio of net investment loss to average net assets+ (0.22)%**
Portfolio turnover rate 41%(b)
Net assets, end of period (in thousands) $1,063
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 8.72%**
Net investment loss (7.69)%**
(a) Class A shares were first publicly offered on October 17, 2006.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
24 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
10/17/06 (a)
to
8/31/07
CLASS C
Net asset value, beginning of period $10.00
------
Increase (decrease) from investment operations:
Net investment loss $(0.09)
Net realized and unrealized gain on investments 1.20
------
Net increase in net assets from investment operations $ 1.11
------
Net asset value, end of period $11.11
======
Total return* 11.10%(b)
Ratio of net expenses to average net assets+ 2.15%**
Ratio of net investment loss to average net assets+ (1.13)%**
Portfolio turnover rate 41%(b)
Net assets, end of period (in thousands) $ 618
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 9.61%**
Net investment loss (8.59)%**
(a) Class C shares were first publicly offered on October 17, 2006.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 25
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------
10/17/06 (a)
to
8/31/07
CLASS Y
Net asset value, beginning of period $ 10.00
--------
Increase (decrease) from investment operations:
Net investment loss $ (0.02)
Net realized and unrealized gain on investments 1.21
--------
Net increase in net assets from investment operations $ 1.19
--------
Net asset value, end of period $ 11.19
========
Total return* 11.90%(b)
Ratio of net expenses to average net assets+ 1.25%**
Ratio of net investment loss to average net assets+ (0.25)%**
Portfolio turnover rate 41%(b)
Net assets, end of period (in thousands) $ 383
Ratios with no waiver of management fees and assumption
of expenses by PIM
Net expenses 8.41%**
Net investment loss (7.41)%**
(a) Class Y shares were first publicly offered on October 17, 2006.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
26 The accompanying notes are an integral part of these financial statements.
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Oak Ridge All Cap Growth Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is capital
appreciation.
The Fund offers three classes of shares - Class A, Class C and Class Y shares.
Class A, Class C and Class Y shares were first publicly offered on October 17,
2006. 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 and Class C shareowners have exclusive voting
rights with respect to the distribution plan for each class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. Information regarding the Fund's principal risks are
contained in the Fund's prospectus. Please refer to those documents when
considering the Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular
27
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
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 NYSE. The values of such securities used in
computing the net 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 principal exchange
where the security is traded no longer reflects the value of the security.
At August 31, 2007, there were no securities fair valued. Temporary cash
investments are valued at cost which approximates market value
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in exercise of reasonable diligence. Dividend and interest income is
recorded on the accrual basis, net of unrecoverable foreign taxes withheld
at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. 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 amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as either from or in excess
of net investment income or net
28
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
realized gain on investment transactions, or from paid-in capital,
depending on the type of book/tax differences that may exist.
The Fund has reclassified $7,187 to decrease accumulated net investment
loss, $5,749 to decrease accumulated net realized loss on investments and
$1,438 to decrease paid-in capital to reflect permanent book/tax
differences. The reclassification has no impact on the net asset value of
the Fund and is designed to present the Fund's capital accounts on a tax
basis.
There were no distributions paid during the period ended August 31, 2007.
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2007.
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Unrealized appreciation $169,054
--------
Total $169,054
========
- --------------------------------------------------------------------------------
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. 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 approximately $966 in underwriting
commissions on the sale of Class A shares for the period ended August 31,
2007.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, and Class C shares of the Fund, respectively (see
Note 4). Class Y shares 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
29
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
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.
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, on the same day, and in
the same amount, except that Class A, Class C, and Class Y shares bear
different transfer agent and distribution fees.
E. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
fair value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The loans are secured by
collateral of at least 102%, at all times, of the fair value of the
securities loaned. The amount of the collateral will be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The
Fund has the right under the lending agreements to recover the securities
from the borrower on demand. The Fund invests cash collateral in the
Securities Lending Investment Fund, which is sponsored by Brown Brothers
Harriman & Co., the Fund's custodian.
2. Management Agreement
PIM, a wholly owned subsidiary of UniCredito Italino, manages the Fund's
portfolio. PIM receives a basic fee that is calculated at the annual rate of
0.75% of the Fund's average daily net assets up to $500 million; and 0.70% on
assets over $500 million. The management fees were equivalent to 0.75% of the
average daily net assets for the period.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Fund expenses to 1.25% and 2.15% of the average daily
net assets attributable to Class A and Class C shares, respectively. These
expense limitations are in effect through
30
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
January 1, 2009 for Class A shares and through January 1, 2008 for Class C
shares. There is no expense limitation in effect for Class Y shares.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. On August 31, 2007, $41 was payable to PIM
related to management fees, administrative costs 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 $447 in transfer agent fees
payable to PIMSS at August 31, 2007.
4. Distribution and Service Plan
The Fund adopted a Plan of Distribution for Class A and Class C shares (Class A
Plan, and Class C Plan) in accordance with Rule 12b-1 under 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 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 C
shares. Included in due to affiliates is $24 in distribution fees payable to PFD
at August 31, 2007.
In addition, redemptions of Class A and Class C shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
redemptions of certain net asset value purchases of Class A shares within 18
months of purchase. Redemptions of Class C shares within one year of purchase
are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to PFD. For the
period ended August 31, 2007, no CDSCs were paid to PFD.
31
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
5. Expense Offset Arrangements
The Fund has entered into an expense offset arrangement with PIMSS resulting in
a reduction in the Fund's total expenses due to interest earned on cash held by
PIMSS. For the period ended August 31, 2007, the Fund's expenses were not
reduced under such arrangement.
6. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the applicable tax
authority. Tax positions deemed to not meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the reporting period in which
they are realized. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of no
later than February 29, 2008. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
been determined.
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the impact the adoption of SFAS
157 will have on the Fund's financial statement disclosures.
32
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Trustees of Pioneer Series Trust V and Shareholders of Pioneer Oak Ridge
All Cap Growth Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Oak Ridge All Cap Growth Fund (the Fund)
(one of the portfolios constituting Pioneer Series Trust V) as of August 31,
2007, and the related statement of operations, the statement of changes in net
assets, and the financial highlights for the period from October 17, 2006
(Commencement of Operations) to August 31, 2007. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2007, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Oak Ridge All Cap Growth Fund at August 31, 2007, the results of its
operations, the changes in its net assets, and the financial highlights for the
period from October 17 (Commencement of Operations) to August 31, 2007, in
conformity with U.S. generally accepted accounting principles.
/s/Ernst + Young LLP
Boston, Massachusetts
October 12, 2007
33
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's affairs.
The officers of the Fund are responsible for the Fund's operations. The Fund's
Trustees and officers are listed below, together with their principal
occupations during the past five years. Trustees who are interested persons of
the Fund within the meaning of the 1940 Act are referred to as Interested
Trustees. Trustees who are not interested persons of the Fund are referred to as
Independent Trustees. Each of the Trustees (except Mr. Kingsbury, Mr. West and
Mr. Bock) serves as a Trustee of each of the 82 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer Funds").
Mr. Kingsbury serves as Trustee of 34 of the 82 Pioneer Funds, Mr. West serves
as Trustee of 33 of the 82 Pioneer Funds, and Mr. Bock serves as Trustee of 81
of the 82 Pioneer Funds. The address for all Interested Trustees and all
officers of the fund is 60 State Street, Boston, Massachusetts 02109.
34
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age With the Fund and Term of Office
John F. Cogan, Jr. (81)* Chairman of the Trustee since 2005.
Board, Trustee and Serves until a succes-
President sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Daniel K. Kingsbury (49)* Trustee and Executive Trustee since March
Vice President 2007. Serves until a
successor trustee is
elected or earlier
retirement or removal.
- --------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Trustee
John F. Cogan, Jr. (81)* Deputy Chairman and a Director of Pioneer Global Asset None
Management S.p.A. ("PGAM"); Non-Executive Chairman
and a Director of Pioneer Investment Management USA
Inc. ("PIM-USA"); Chairman and a Director of Pioneer;
Chairman and Director of Pioneer Institutional Asset
Management, Inc. (since 2006); Director of Pioneer
Alternative Investment Management Limited (Dublin);
President and a Director of Pioneer Alternative Investment
Management (Bermuda) Limited and affiliated funds; Direc-
tor of PIOGLOBAL Real Estate Investment Fund (Russia)
(until June 2006); Director of Nano-C, Inc. (since 2003);
Director of Cole Management Inc. (since 2004); Director of
Fiduciary Counseling, Inc.; President and Director of
Pioneer Funds Distributor, Inc. ("PFD") (until May 2006);
President of all of the Pioneer Funds; and Of Counsel,
Wilmer Cutler Pickering Hale and Dorr LLP
- -------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (49)* Director, CEO and President of Pioneer Investment None
Management USA Inc.; Pioneer Investment Management,
Inc. and Pioneer Institutional Asset Management, Inc.
(since March 2007); Executive Vice President of all of the
Pioneer Funds (since March 2007); Director of Pioneer
Global Asset Management S.p.A. (since March 2007);
Head of New Markets Division, Pioneer Global Asset
Management S.p.A. (2000 - 2007)
- -------------------------------------------------------------------------------------------------------------------------------
35
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Position Held Length of Service
Name, Age and Address With the Fund and Term of Office
David R. Bock (63) Trustee Trustee since 2005.
3050 K Street NW, Serves until a succes-
Washington, DC 20007 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 2005.
3509 Woodbine Street Serves until a succes-
Chevy Chase, MD 20815 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Margaret B.W. Graham (60) Trustee Trustee since 2005.
1001 Sherbrooke Street Serves until a succes-
West, Montreal, Quebec, sor trustee is elected
Canada or earlier retirement or
H3A 1G5 removal.
- --------------------------------------------------------------------------------
Other Directorships
Name, Age and Address Principal Occupation During Past Five Years Held by this Trustee
David R. Bock (63) Executive Vice President and Chief Financial Officer, I-trax, Director of The Enterprise
3050 K Street NW, Inc. (publicly traded health care services company) (2004 Social Investment
Washington, DC 20007 - present); Partner, Federal City Capital Advisors (boutique Company (privately-held
merchant bank) (1997 to 2004); and Executive Vice affordable housing
President and Chief Financial Officer, Pedestal Inc. finance company); and
(internet-based mortgage trading company) (2000 - 2002) Director of New York
Mortgage Trust (publicly
traded mortgage REIT)
- -------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) President, Bush International, LLC (international financial Director of Brady Corpora-
3509 Woodbine Street advisory firm) tion (industrial identifica-
Chevy Chase, MD 20815 tion and specialty coated
material products
manufacturer); Director of
Briggs & Stratton Co.
(engine manufacturer);
Director of UAL Corpora-
tion (airline holding
company); and Director of
Mantech International
Corporation (national
security, defense,
and intelligence tech-
nology firm)
- -------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (60) Founding Director, Vice-President and Corporate Secretary, None
1001 Sherbrooke Street The Winthrop Group, Inc. (consulting firm); and Desautels
West, Montreal, Quebec, Faculty of Management, McGill University
Canada
H3A 1G5
- -------------------------------------------------------------------------------------------------------------------------------
36
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Position Held Length of Service
Name, Age and Address With the Fund and Term of Office
Thomas J. Perna (56) Trustee Trustee since 2006.
89 Robbins Avenue, Serves until a succes-
Berkeley Heights, NJ 07922 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 2005.
200 State Street, 12th Serves until a succes-
Floor, Boston, MA 02109 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Stephen K. West (78) Trustee Trustee since 2005.
125 Broad Street, Serves until a succes-
New York, NY 10004 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 2005.
One North Adgers Wharf, Serves until a succes-
Charleston, SC 29401 sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Pioneer Oak Ridge All Cap Growth Fund
Other Directorships
Name, Age and Address Principal Occupation During Past Five Years Held by this Trustee
Thomas J. Perna (56) Private investor (2004 - present); and Senior Executive Director of Quadriserv
89 Robbins Avenue, Vice President, The Bank of New York (financial and securi- Inc. (technology products
Berkeley Heights, NJ 07922 ties services) (1986 - 2004) for securities lending
industry)
- -------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) President and Chief Executive Officer, Newbury, Piret & Director of New America
200 State Street, 12th Company, Inc. (investment banking firm) High Income Fund, Inc.
Floor, Boston, MA 02109 (closed-end investment
company)
- -------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (78) Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss
125 Broad Street, Helvetia Fund, Inc.
New York, NY 10004 (closed-end investment
company)
- -------------------------------------------------------------------------------------------------------------------------------
John Winthrop (71) President, John Winthrop & Co., Inc. (private None
One North Adgers Wharf, investment firm)
Charleston, SC 29401
- -------------------------------------------------------------------------------------------------------------------------------
37
Pioneer Oak Ridge All Cap Growth Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Position Held Length of Service
Name and Age With the Fund and Term of Office
Dorothy E. Bourassa (59) Secretary Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Christopher J. Kelley (42) Assistant Secretary Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Mark E. Bradley (47) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Gary Sullivan (49) Assistant Treasurer Since 2005. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Other Directorships
Name and Age Principal Occupation During Past Five Years Held by this Officer
Dorothy E. Bourassa (59) Secretary of PIM-USA; Senior Vice President - Legal of None
Pioneer; Secretary/Clerk of most of PIM-USA's subsidiar-
ies; and Secretary of all of the Pioneer Funds since
September 2003 (Assistant Secretary from November
2000 to September 2003)
- -------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (42) Vice President and Senior Counsel of Pioneer since July None
2002; Vice President and Senior Counsel of BISYS Fund
Services, Inc. (April 2001 to June 2002); Senior Vice
President and Deputy General Counsel of Funds Distribu-
tor, Inc. (July 2000 to April 2001), and Assistant Secretary
of all of the Pioneer Funds since September 2003
- -------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (62) Vice President - Fund Accounting, Administration and None
Controllership Services of Pioneer; and Treasurer of all of
the Pioneer Funds
- -------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (47) Deputy Treasurer of Pioneer since 2004; Treasurer and None
Senior Vice President, CDC IXIS Asset Management
Services from 2002 to 2003; and Assistant Treasurer of
all of the Pioneer Funds since November 2004
- -------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Vice President - Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
- -------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Fund Accounting Manager - Fund Accounting, Administra- None
tion and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
- -------------------------------------------------------------------------------------------------------------------------------
38
- --------------------------------------------------------------------------------
Pioneer Oak Ridge All Cap Growth Fund
Other
Directorships
Position Held Length of Service Principal Occupation Held by this
Name and Age With the Fund and Term of Office During Past Five Years Officer
Katherine Kim Sullivan (33) Assistant Treasurer Since 2005. Serves at Fund Administration Manager - Fund None
the discretion of the Accounting, Administration and
Board Controllership Services since June 2003;
Assistant Vice President - Mutual Fund
Operations of State Street Corporation
from June 2002 to June 2003 (formerly
Deutsche Bank Asset Management); and
Assistant Treasurer of all of the
Pioneer Funds since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Since January 2007. Chief Compliance Officer of Pioneer None
Officer Serves at the discre- since December 2006 and of all the
tion of the Board Pioneer Funds since January 2007; Vice
President and Compliance Officer, MFS
Investment Management (August 2005 to
December 2006); Consultant, Fidelity
Investments (February 2005 to July
2005); Independent Consultant (July
1997 to February 2005)
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers
or directors of the fund's investment adviser and certain of its affiliates.
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly
owned by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. Pioneer, the fund's investment adviser, provides
investment management and financial services to mutual funds, institutional and
other clients.
39
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
40
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
41
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
42
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
43
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
44
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PIONEER
-----------------------
SELECT
RESEARCH
GROWTH
FUND
SRSGX
Ticker Symbol
Annual
Report
8/31/07
[LOGO] PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 11
Schedule of Investments 13
Financial Statements 19
Notes to Financial Statements 23
Report of Independent Registered Public Accounting Firm 28
Trustees, Officers and Service Providers 29
President's
Dear Shareowner,
- --------------------------------------------------------------------------------
Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
were particularly useful guides during the past year, when an otherwise healthy
long-term bull market was buffeted by problems in the mortgage and banking
industries.
Since mid-year, issues tied to poor underwriting practices in the subprime
sector of the mortgage industry, and to problems with risk management by banks
and hedge funds, have resulted in increased market volatility and rising
concern about risks to U.S. economic growth.
Even against this backdrop, the long-term performance of major asset classes
remained positive. In the 12 months ending August 31, 2007, equity investors
were generally rewarded as, despite a late-July decline, the Standard & Poor's
500 Index returned 15%, the Dow Jones Industrial Average returned 20%, and the
NASDAQ Composite Index returned 19%. International developed and emerging
markets equities performed well also, with the MSCI EAFE Developed Market Index
returning 19% and the MSCI Emerging Markets Index returning 44% over the
12-month period. The U.S. bond market, as measured by the Lehman Aggregate Bond
Index, returned 5% in the 12 months ending August 31, 2007. The U.S. high-yield
bond market, as measured by the Merrill Lynch High Yield Bond Master II Index,
returned 7% for the same period, reflecting its higher coupon yield.
U.S. economic growth has slowed in the past year, but this was due as much to
the natural maturation of the cyclical expansion, as U.S. factories approached
full utilization and the labor market approached full employment, as it was to
rising commodity prices and short-term interest rates. This slowdown was,
therefore, not entirely unwelcome, as it reduced the threat of higher
inflation. More recently, however, there has been increasing concern that
falling home prices and/or banks' unwillingness to lend pose a larger and more
imminent threat to the economy.
In Europe, solid GDP growth driven by a positive operating environment for
European companies, especially exporters, has driven unemployment lower and
supported growing consumption. Japanese economic growth also continues to make
progress, and the country's deflationary problems are gradually receding.
Economic growth in emerging market countries remains faster than in the
developed world as they persist in "catching up," led by China, which continues
its rise as a world economic power.
2
Letter
The U.S. Federal Reserve and the world's other central banks have pursued
policies aimed at producing low and stable inflation, believed to be the best
backdrop for steady economic growth and low average unemployment over the long
term. Keeping inflation low is also an important support for stock and bond
valuations, and so central bank policies have also been "investor friendly."
The central banks have responded to this past summer's liquidity squeeze in the
inter-bank and commercial paper markets by acting as the "lenders of last
resort" to limit the risk of problems spreading to the broader economy. Looking
forward, the economic outlook and equity valuations appear generally positive,
although the current environment is plagued by fears that subprime mortgage
problems will result in a systemic liquidity/credit crunch. While falling risk
tolerances may depress asset prices in the short term, valuations look
reasonable if credit market problems do not spread to the broader economy.
Sudden swings in the markets are always to be expected. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to your particular risk
tolerance and investment objective.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 8/31/07
- --------------------------------------------------------------------------------
The domestic equity market trended upward throughout the first 10 months of the
fiscal year ending August 31, 2007, but then reversed course in July 2007 and
became increasingly volatile over the final two months of the period. This
dramatic shift in the investment environment was brought on by fears about the
subprime mortgage industry and the potential impacts the industry's problems
might have on the larger economy. In the following interview, members of the
team responsible for managing Pioneer Select Research Growth Fund review the 12
months ending August 31, 2007. Diego Franzin, Ashesh Savla and John Peckham,
CFA, discuss the factors that affected Fund performance during the 12 months.
Mr. Franzin is Head of Pioneer's U.S. Quantitative Research & Management Group,
Mr. Savla, is a Quantitative Analyst at Pioneer, and Mr. Peckham is Pioneer's
Head of U.S. Equity Research.
Q: How did the Fund perform during the 12 months ending August 31, 2007?
A: Pioneer Select Research Growth Fund performed very well for the period,
outpacing both its index and its competitive funds' peer group average. For
the 12 months ending August 31, 2007, the Fund's Class A shares had a total
return of 20.69%, at net asset value. During the same fiscal year, the
benchmark Russell 1000 Growth Index returned 17.70%, and the average return
of the 727 funds in Lipper's Large Cap Growth Fund category was 16.96%.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: What were the principal factors that influenced the Fund's performance
during the 12 months?
A: The Fund did well relative to its benchmark both when stocks rose during
the 10 months -- from August 31, 2006 through June 30, 2007 -- and when the
market became more volatile during July and August 2007. Stock selection
was the key driver, consistent with
4
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the Fund's distinctive discipline. We typically maintain investments in 50
different companies selected from the 100 stocks in the Pioneer Research
Fund portfolio. Sector weightings are equal to those of the Russell 1000
Growth Index, but we choose individual holdings from among all eligible
stocks, whether part of the growth or value universe. In this process, we
rank stocks based on our research into the superior characteristics of
companies in 17 different sectors and industries. We believe the advantage
of this process lies in its combination of both quantitative and
qualitative research techniques. For example, when purely quantitative
mutual funds in general struggled late in the fiscal year, this Fund
enjoyed its best period relative to the Russell 1000 Growth Index.
Q: What types of investments had the greatest influence on performance?
A: Our selections in the health care, information technology and industrials
sectors had the greatest positive impacts on results relative to the
Russell 1000 Growth Index. On the negative side, our picks in the
materials, financials and consumer staples sectors modestly underperformed
the results in the same sectors in the Russell benchmark.
In health care, the leading performers were pharmaceutical company Schering
Plough and biotechnology leader Amgen. In addition, the fact that we did
not own any shares of Johnson & Johnson - a major part of the Russell index
- helped relative performance when that company performed poorly. Schering
Plough gained in value as investors became more optimistic about its
development pipeline of potential new drug products. We owned Amgen early
in the year, when it performed very well, and then sold it before its stock
price fell because of problems with an important anemia drug. Among our
technology holdings, the top performers were Cisco Systems and Freescale
Semiconductor. Cisco was the beneficiary of the continued expansion of
corporate spending on information technology networks, while Freescale was
bought out at a premium price by private equity investors. In the
industrials sector, leading performers were equipment manufacturer Terex
and railroad corporation Norfolk Southern. Terex, whose products include
trucks and other heavy equipment used by industrial and utility
corporations, performed well in the latter
5
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 8/31/07 (continued)
- --------------------------------------------------------------------------------
stages of the current business cycle, while Norfolk Southern's earnings
grew from strong demand for rail transportation services.
In our materials selections, we did not own enough commodities companies -
especially steel and other mining and minerals companies - during a period
in which they performed very well. At the same time, we had too large a
position in weak-performing Dow Chemical. Nevertheless, we did have an
investment in Freeport McMoran Copper and Gold, a stellar performer for the
period. In the financials sector, we had a large position in brokerage and
investment banking leader Merrill Lynch, whose share price was affected by
concerns about the health of corporate financing in the wake of the
subprime mortgage crisis. In the consumer staples area, a notable
underperformer was Church & Dwight, producer of a variety of personal care
consumer products. We have maintained our position in the company as we
believe that its fundamentals have remained sound, despite the
underperformance.
Q: What is your investment outlook?
A: We remain optimistic about prospects in the market for several reasons: the
economy has remained in its growth trajectory; both interest rates and
inflation remain low by historical measures; and stock valuations appear
reasonable. While the slump in the housing industry has been a drag on the
economy, we do not believe it will pull the economy into a recession.
Overall, we think the market continues to afford good opportunities for
stock investing.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. The Fund invests in a limited number of
securities and, as a result, the Fund's performance may be more volatile than
the performance of other funds holding more securities. At times, the Fund's
investments may represent industries or industry sectors that are interrelated
or have common risks, making it more susceptible to any economic, political, or
regulatory developments or other risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund
6
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
management as of the date of this report. These opinions 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.
7
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 8/31/07
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 91.0%
Temporary Cash Investment 6.0%
Depositary Receipts for International Stocks 3.0%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Information Technology 27.6%
Health Care 16.4%
Consumer Discretionary 13.0%
Industrials 12.6%
Consumer Staples 9.2%
Energy 7.9%
Financials 7.5%
Materials 3.2%
Utilities 1.6%
Telecommunication Services 1.0%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Cisco Systems, Inc. 5.22%
2. Microsoft Corp. 4.54
3. Hewlett-Packard Co. 3.41
4. Oracle Corp. 3.26
5. Target Corp. 3.03
6. 3M Co. 2.62
7. United Technologies Corp. 2.62
8. Franklin Resources, Inc. 2.55
9. Schering-Plough Corp. 2.47
10. Medtronic, Inc. 2.41
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any
securities listed.
8
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 8/31/07 8/31/06
- ------- --------- --------
A $12.25 $10.18
Distributions Per Share
- --------------------------------------------------------------------------------
9/1/06 - 8/31/07
-----------------------------------------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ---------------- --------------- --------------
A $0.0328 $ - $ -
9
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 8/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Select Research Growth Fund at public offering
price, compared to that of the Russell 1000 Growth Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of August 31, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(12/15/05) 13.00% 9.15%
1 Year 20.69 14.10
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 1, 2007)
Gross Net
21.63% 1.25%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer Select Russell 1000
Research Growth Fund Growth Index
12/05 9425 10000
8/06 9779 10022
8/07 11838 11796
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class A Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000[RegTM] Growth Index measures the performance of large-cap U.S.
growth stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in an Index.
10
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Select Research Growth Fund
Based on actual returns from March 1, 2007 through August 31, 2007
Share Class A
- --------------------------------------------------------------------------------
Beginning Account Value On 3/1/07 $1,000.00
Ending Account Value On 8/31/07 $1,093.40
Expenses Paid During Period* $ 6.60
* Expenses are equal to the Fund's annualized expense ratio of 1.25% for
Class A shares, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
11
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Select Research Growth Fund
Based on a hypothetical 5% return per year before expenses, reflect ing the
period from March 1, 2007 through August 31, 2007
Share Class A
- --------------------------------------------------------------------------------
Beginning Account Value On 3/1/07 $1,000.00
Ending Account Value On 8/31/07 $1,018.90
Expenses Paid During Period* $ 6.36
* Expenses are equal to the Fund's annualized expense ratio of 1.25% for
Class A shares multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
12
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 99.6%
Energy - 7.8%
Integrated Oil & Gas - 3.8%
158 ConocoPhillips $ 12,939
197 USX-Marathon Group, Inc. 10,616
--------
$ 23,555
--------
Oil & Gas Equipment & Services - 2.3%
241 Weatherford International, Inc.* $ 14,070
--------
Oil & Gas Exploration & Production - 1.7%
134 Apache Corp. $ 10,369
--------
Total Energy $ 47,994
--------
Materials - 3.2%
Diversified Chemical - 1.0%
144 Dow Chemical Co. $ 6,139
--------
Diversified Metals & Mining - 1.4%
100 Freeport-McMoRan Copper & Gold, Inc. (Class B) $ 8,742
--------
Steel - 0.8%
90 Nucor Corp. $ 4,761
--------
Total Materials $ 19,642
--------
Capital Goods - 8.8%
Aerospace & Defense - 4.1%
115 Northrop Grumman Corp. $ 9,067
214 United Technologies Corp. 15,971
--------
$ 25,038
--------
Electrical Component & Equipment - 1.1%
116 Thomas & Betts Corp.* $ 6,425
--------
Industrial Conglomerates - 2.6%
176 3M Co. $ 16,014
--------
Industrial Machinery - 1.0%
142 Crane Co. $ 6,360
--------
Total Capital Goods $ 53,837
--------
The accompanying notes are an integral part of these financial statements. 13
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Transportation - 3.8%
Air Freight & Couriers - 2.8%
148 C.H. Robinson Worldwide, Inc. $ 7,258
128 United Parcel Service 9,710
--------
$ 16,968
--------
Railroads - 1.0%
115 Canadian National Railway Co. $ 6,055
--------
Total Transportation $ 23,023
--------
Automobiles & Components - 1.5%
Auto Parts & Equipment - 1.5%
106 BorgWarner, Inc. $ 8,957
--------
Total Automobiles & Components $ 8,957
--------
Consumer Durables & Apparel - 1.4%
Apparel, Accessories & Luxury Goods - 1.4%
191 Coach, Inc.* $ 8,505
--------
Total Consumer Durables & Apparel $ 8,505
--------
Consumer Services - 2.0%
Restaurants - 2.0%
249 McDonald's Corp. $ 12,263
--------
Total Consumer Services $ 12,263
--------
Media - 1.4%
Movies & Entertainment - 1.4%
220 Viacom, Inc. (Class B)* $ 8,681
--------
Total Media $ 8,681
--------
Retailing - 6.7%
Apparel Retail - 1.8%
140 Abercrombie & Fitch Co. $ 11,018
--------
Department Stores - 1.9%
167 J.C. Penney Co., Inc. $ 11,483
--------
General Merchandise Stores - 3.0%
280 Target Corp. $ 18,460
--------
Total Retailing $ 40,961
--------
14 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Food & Drug Retailing - 3.6%
Drug Retail - 3.6%
307 CVS Corp. $ 11,611
238 Walgreen Co. 10,727
--------
$ 22,338
--------
Total Food & Drug Retailing $ 22,338
--------
Food, Beverage & Tobacco - 2.0%
Tobacco - 2.0%
165 Loews Corp Carolina Group (b) $ 12,560
--------
Total Food, Beverage & Tobacco $ 12,560
--------
Household & Personal Products - 3.4%
Household Products - 1.8%
248 Church & Dwight Co., Inc. $ 11,143
--------
Personal Products - 1.6%
236 Estee Lauder Co. $ 9,815
--------
Total Household & Personal Products $ 20,958
--------
Health Care Equipment & Services - 6.8%
Health Care Equipment - 4.4%
278 Medtronic, Inc. $ 14,690
184 Stryker Corp. 12,291
--------
$ 26,981
--------
Health Care Services - 2.4%
169 Medco Health Solutions, Inc.* $ 14,441
--------
Total Health Care Equipment & Services $ 41,422
--------
Pharmaceuticals & Biotechnology - 9.6%
Biotechnology - 0.8%
223 Cubist Pharmaceuticals, Inc.*(b) $ 5,102
--------
Life Sciences Tools & Services - 2.0%
227 Thermo Fisher Scientific, Inc.* $ 12,310
--------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Pharmaceuticals - 6.8%
440 Bristol-Myers Squibb Co. $ 12,826
502 Schering-Plough Corp. 15,070
316 Teva Pharmaceutical Industries, Ltd. 13,588
--------
$ 41,484
--------
Total Pharmaceuticals & Biotechnology $ 58,896
--------
Banks - 0.8%
Diversified Banks - 0.4%
49 Wachovia Corp. $ 2,400
--------
Regional Banks - 0.4%
39 PNC Bank Corp. $ 2,744
--------
Total Banks $ 5,144
--------
Diversified Financials - 5.8%
Asset Management & Custody Banks - 2.5%
118 Franklin Resources, Inc. $ 15,549
--------
Consumer Finance - 1.8%
323 The First Marblehead Corp. (b) $ 10,817
--------
Investment Banking & Brokerage - 1.5%
122 Merrill Lynch & Co., Inc. $ 8,991
--------
Total Diversified Financials $ 35,357
--------
Insurance - 0.9%
Multi-Line Insurance - 0.9%
80 American International Group, Inc. $ 5,280
--------
Total Insurance $ 5,280
--------
Software & Services - 10.9%
Application Software - 2.2%
380 Citrix Systems, Inc.* $ 13,813
--------
Systems Software - 8.7%
230 Macrovision Corp.* $ 5,458
965 Microsoft Corp. 27,725
980 Oracle Corp.* 19,874
--------
$ 53,057
--------
Total Software & Services $ 66,870
--------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Technology Hardware & Equipment - 12.1%
Communications Equipment - 7.1%
998 Cisco Systems, Inc.* $ 31,857
506 Corning, Inc.* 11,825
--------
$ 43,682
--------
Computer Hardware - 5.0%
422 Hewlett-Packard Co. $ 20,825
1,778 Sun Microsystems, Inc.* 9,530
--------
$ 30,355
--------
Total Technology Hardware & Equipment $ 74,037
--------
Semiconductors - 4.5%
Semiconductors - 4.5%
504 Intel Corp. $ 12,979
427 Texas Instruments, Inc. 14,620
--------
$ 27,599
--------
Total Semiconductors $ 27,599
--------
Telecommunication Services - 1.0%
Integrated Telecommunication Services - 1.0%
141 Verizon Communications, Inc. $ 5,905
--------
Total Telecommunication Services $ 5,905
--------
Utilities - 1.6%
Independent Power Producer & Energy Traders - 1.6%
262 NRG Energy, Inc.*(b) $ 9,980
--------
Total Utilities $ 9,980
--------
TOTAL COMMON STOCKS
(Cost $544,183) $610,209
--------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
TEMPORARY CASH INVESTMENT - 6.3%
Security Lending Collateral - 6.3%
38,538 Securities Lending Investment Fund, 5.33% $ 38,538
--------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $38,538) $ 38,538
--------
TOTAL INVESTMENT IN SECURITIES - 105.9%
(Cost $582,721)(a) $648,747
--------
OTHER ASSETS AND LIABILITIES - (5.9)% $(36,120)
--------
TOTAL NET ASSETS - 100.0% $612,627
========
* Non-income producing security.
(a) At August 31, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $582,721 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $75,879
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (9,853)
-------
Net unrealized gain $66,026
=======
(b) At August 31, 2007, the following securities were out on loan:
Shares Description Value
221 Cubist Pharmaceuticals, Inc.* $ 5,056
320 The First Marblehead Corp. 10,717
163 Loews Corp Carolina Group 12,408
259 NRG Energy, Inc.* 9,865
-------
Total $38,046
=======
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2007 aggregated $538,422 and $540,164, respectively.
18 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 8/31/07
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (including securities
loaned of $38,046) ($582,721) $648,747
Cash 35,016
Receivables -
Dividends, interest and foreign taxes withheld 746
Other 3,813
--------
Total assets $688,322
--------
LIABILITIES:
Payables -
Upon return of securities loaned $ 38,538
Due to affiliates 248
Accrued expenses 36,909
--------
Total liabilities $ 75,695
--------
NET ASSETS:
Paid-in capital $500,000
Accumulated net realized gain on investments 46,601
Net unrealized gain on investments 66,026
--------
Total net assets $612,627
========
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $612,627/50,000 shares) $ 12.25
========
MAXIMUM OFFERING PRICE:
Class A ($12.25 [divided by] 94.25%) $ 13.00
========
The accompanying notes are an integral part of these financial statements. 19
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 8/31/07
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $17) $6,593
Interest 1,072
Income from securities loaned, net 9
------
Total investment income $ 7,674
---------
EXPENSES:
Management fees $4,298
Transfer agent fees and expenses 19
Administrative reimbursements 129
Custodian fees 12,238
Registration fees 4,650
Professional fees 36,184
Printing expense 12,276
Fees and expenses of nonaffiliated trustees 7,001
Miscellaneous 525
------
Total expenses $ 77,320
Less management fees waived and
expenses reimbursed by Pioneer Investment
Management, Inc. (70,157)
---------
Net expenses $ 7,163
---------
Net investment income $ 511
---------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 46,434
---------
Change in net unrealized gain on investments $ 58,207
---------
Net gain on investments $104,641
---------
Net increase in net assets resulting from operations $105,152
========
20 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Year Ended 8/31/07 and the Period from 12/15/05
(Commencement of Operations) to 8/31/06, respectively
12/15/05
Year Ended to
8/31/07 8/31/06
FROM OPERATIONS:
Net investment income $ 511 $ 1,056
Net realized gain on investments 46,434 240
Change in net unrealized gain on investments 58,207 7,819
--------- ---------
Net increase in net assets resulting from
operations $ 105,152 $ 9,115
--------- ---------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.03 and $0.00 per share, respectively) $ (1,640) $ -
--------- ---------
Total distributions to shareowners $ (1,640) $ -
--------- ---------
Net increase in net assets $ 103,512 $ 9,115
--------- ---------
NET ASSETS:
Beginning of period (initial capitalization - 50,000
shares) $ 509,115 $ 500,000
--------- ---------
End of period $ 612,627 $ 509,115
========= =========
Undistributed net investment income $ - $ 1,056
========= =========
The accompanying notes are an integral part of these financial statements. 21
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
12/15/05 (a)
Year Ended to
8/31/07 8/31/06
CLASS A
Net asset value, beginning of period $ 10.18 $ 10.00
--------- ---------
Increase from investment operations:
Net investment income $ 0.01 $ 0.02
Net realized and unrealized gain on investments 2.09 0.16
--------- ---------
Net increase from investment operations $ 2.10 $ 0.18
Distributions to shareowners:
Net investment income (0.03) -
--------- ---------
Net increase in net asset value $ 2.07 $ 0.18
--------- ---------
Net asset value, end of period $ 12.25 $ 10.18
========= =========
Total return* 20.69% 1.80%(b)
Ratio of net expenses to average net assets 1.25% 1.25%**
Ratio of net investment income to average net assets 0.09% 0.30%**
Portfolio turnover rate 95% 73%(b)
Net assets, end of period (in thousands) $ 613 $ 509
Ratios with no waiver of management fees and
assumption of expenses by PIM
Net expenses 13.49% 21.63%**
Net investment loss (12.15)% (20.08)%**
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of the period.
** Annualized.
22 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Select Research Growth Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund was organized on October 12, 2005, and commenced
operations on December 15, 2005. Prior to December 15, 2005, the Fund had no
operations other than those relating to organizational matters and the initial
capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD). To date, no
shares have been offered to the public. The Fund shares outstanding at August
31, 2007, are owned by PFD. The Fund's investment objective is long-term capital
growth.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. Information regarding the Fund's principal investment
risks is contained in the Fund's prospectus. Please refer to that document when
considering the Fund's investment risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities are valued at the last sale price
on the principal exchange where they are traded. Securities that have not
traded on the date of
23
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
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 NYSE. The values of such
securities used in computing the net 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
principal exchange where the security is traded no longer reflects the
value of the security. As of August 31, 2007, there were no securities fair
valued. Temporary cash investments are valued at cost which approximates
market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country
rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. 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 amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as 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.
24
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
At August 31, 2007, the Fund reclassified $73 to decrease distributions in
excess of net investment income and $73 to decrease accumulated net
realized gain on investments. The reclassification has no impact on the net
asset value of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
The tax character of distributions paid during the year ended August 31,
2007 was as follows. There were no distributions paid during the period
ended August 31, 2006.
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Ordinary income $ 1,640
Long term capital gain -
--------
Total $ 1,640
========
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2007:
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 38,811
Undistributed long-term gain 7,790
Unrealized appreciation 66,026
--------
Total $112,627
========
- --------------------------------------------------------------------------------
C. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
fair value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The loans are secured by
collateral of at least 102%, at all times, of the fair value of the
securities loaned. The amount of the collateral will be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The
Fund has the right under the
25
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
lending agreements to recover the securities from the borrower on demand.
The Fund invests cash collateral in the Securities Lending Investment Fund,
which is sponsored by Brown Brothers Harriman & Co., the Fund's custodian.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of
UniCredito Italiano, manages the Fund's portfolio. Management fees are
calculated daily at the annual rate of 0.75% of the Fund's average daily net
assets up to $1 billion and 0.70% on assets over $1 billion. For the year ended
August 31, 2007, the net management fee was equivalent to 0.75% of the average
daily net assets.
Through January 1, 2009, PIM has agreed not to impose its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit
Class A expenses to 1.25% of the average daily net assets attributable to Class
A shares.
In addition, under the management and administration agreements, certain other
services, including accounting, regulatory reporting and insurance, are paid by
the Fund. At August 31, 2007, $231 was payable to PIM related to management
fees, administrative costs and certain other services and is included in due to
affiliates.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (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 $17 in transfer agent fees payable to PIMSS at August 31, 2007.
4. Distribution Plan
The Fund adopted a Plan of Distribution in accordance with Rule 12b-1 of the
Investment Company Act of 1940. 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. There were no distribution fees payable to PFD at
August 31, 2007.
26
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the applicable tax
authority. Tax positions deemed to not meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the reporting period in which
they are realized. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of no
later than February 29, 2008. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
been determined.
In addition, in September 2006, Statement of Financial Accounting Standards No.
157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal
years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
27
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Trustees of Pioneer Series Trust V and
Shareholders of Pioneer Select Research Growth Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Select Research Growth Fund (the Fund)
(one of the portfolios constituting Pioneer Series Trust V) as of August 31,
2007, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of August 31, 2007, by correspondence with the custodian and
brokers. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Select Research Growth Fund at August 31, 2007, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 12, 2007
28
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The fund's Board of Trustees provides broad supervision over the fund's affairs.
The officers of the fund are responsible for the fund's operations. The fund's
Trustees and officers are listed below, together with their principal
occupations during the past five years. Trustees who are interested persons of
the fund within the meaning of the 1940 Act are referred to as Interested
Trustees. Trustees who are not interested persons of the fund are referred to as
Independent Trustees. Each of the Trustees (except Mr. Kingsbury, Mr. West and
Mr. Bock) serves as a Trustee of each of the 82 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer Funds").
Mr. Kingsbury serves as Trustee of 34 of the 82 Pioneer Funds, Mr. West serves
as Trustee of 33 of the 82 Pioneer Funds, and Mr. Bock serves as Trustee of 81
of the 82 Pioneer Funds. The address for all Interested Trustees and all
officers of the fund is 60 State Street, Boston, Massachusetts 02109.
29
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Trustee
John F. Cogan, Jr. (81)* Chairman of the Trustee since 2005. Deputy Chairman and a Director of None
Board, Trustee and Serves until a Pioneer Global Asset Management S.p.A.
President successor trustee ("PGAM"); Non-Executive Chairman and a
is elected or earlier Director of Pioneer Investment
retirement or removal. Management USA Inc. ("PIM-USA");
Chairman and a Director of Pioneer;
Chairman and Director of Pioneer
Institutional Asset Management, Inc.
(since 2006); Director of Pioneer
Alternative Investment Management
Limited (Dublin); President and a
Director of Pioneer Alternative
Investment Management (Bermuda)
Limited and affiliated funds; Director
of PIOGLOBAL Real Estate Investment
Fund (Russia) (until June 2006);
Director of Nano-C, Inc. (since 2003);
Director of Cole Management Inc.
(since 2004); Director of Fiduciary
Counseling, Inc.; President and
Director of Pioneer Funds Distributor,
Inc. ("PFD") (until May 2006);
President of all of the Pioneer Funds;
and Of Counsel, Wilmer Cutler
Pickering Hale and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (49)* Trustee and Executive Trustee since March Director, CEO and President of Pioneer None
Vice President 2007. Serves until a Investment Management USA Inc.;
successor trustee is Pioneer Investment Management, Inc.
elected or earlier and Pioneer Institutional Asset
retirement or removal. Management, Inc. (since March 2007);
Executive Vice President of all of the
Pioneer Funds (since March 2007);
Director of Pioneer Global Asset
Management S.p.A. (since March 2007);
Head of New Markets Division, Pioneer
Global Asset Management S.p.A. (2000 -
2007)
- ------------------------------------------------------------------------------------------------------------------------------------
30
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Positions Held Length of Service Principal Occupation Other Directorships
Address With the Fund and Term of Office During Past Five Years Held by this Trustee
David R. Bock (63) Trustee Trustee since 2005. Executive Vice President and Chief Director of The
3050 K Street NW, Serves until a Financial Officer, I-trax, Inc. Enterprise Social
Washington, DC 20007 successor trustee (publicly traded health care services Investment Company
is elected or earlier company) (2004 - present); Partner, (privately-held
retirement or Federal City Capital Advisors (boutique affordable housing
removal. merchant bank) (1997 to 2004); and finance company); and
Executive Vice President and Chief Director of New York
Financial Officer, Pedestal Inc. Mortgage Trust
(internet-based mortgage trading (publicly traded
company) (2000 - 2002) mortgage REIT)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 2005. President, Bush International, LLC Director of Brady
3509 Woodbine Street Serves until a (international financial advisory firm) Corporation
Chevy Chase, MD 20815 successor trustee (industrial
is elected or earlier identification and
retirement or specialty coated
removal. material products
manufacturer);
Director of Briggs &
Stratton Co. (engine
manufacturer);
Director of UAL
Corporation (airline
holding company); and
Director of Mantech
International
Corporation (national
security, defense,
and intelligence
technology firm)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (60) Trustee Trustee since 2005. Founding Director, Vice-President and None
1001 Sherbrooke Street West, Serves until a Corporate Secretary, The Winthrop
Montreal, Quebec, Canada successor trustee Group, Inc. (consulting firm); and
H3A 1G5 is elected or earlier Desautels Faculty of Management, McGill
retirement or University
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
31
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Name, Age and Positions Held Length of Service Principal Occupation Other Directorships
Address With the Fund and Term of Office During Past Five Years Held by this Trustee
Thomas J. Perna (56) Trustee Trustee since 2006. Private investor (2004 - present); and Director of
89 Robbins Avenue, Serves until a successor Senior Executive Vice President, The Quadriserv Inc.
Berkeley Heights, NJ 07922 trustee is elected or Bank of New York (financial and (technology products
earlier retirement or securities services) (1986 - 2004) for securities
removal. lending industry)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 2005. President and Chief Executive Officer, Director of New
200 State Street, 12th Floor, Serves until a successor Newbury, Piret & Company, Inc. America High Income
Boston, MA 02109 trustee is elected or (investment banking firm) Fund, Inc.
earlier retirement or (closed-end
removal. investment company)
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (78) Trustee Trustee since 2005. Senior Counsel, Sullivan & Cromwell Director, The Swiss
125 Broad Street, Serves until a successor (law firm) Helvetia Fund, Inc.
New York, NY 10004 trustee is elected or (closed-end
earlier retirement or investment company)
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 2005. President, John Winthrop & Co., Inc. None
One North Adgers Wharf Serves until a successor (private investment firm)
Charleston, SC 29401 trustee is elected or
earlier retirement or
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
32
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Officer
Dorothy E. Bourassa (59) Secretary Since 2005. Serves at Secretary of PIM-USA; Senior Vice None
the discretion of the President - Legal of Pioneer;
Board Secretary/Clerk of most of PIM-USA's
subsidiaries; and Secretary of all
of the Pioneer Funds since September
2003 (Assistant Secretary from
November 2000 to September 2003)
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (42) Assistant Secretary Since 2005. Serves at Vice President and Senior Counsel of None
the discretion of the Pioneer since July 2002; Vice
Board President and Senior Counsel of
BISYS Fund Services, Inc. (April
2001 to June 2002); Senior Vice
President and Deputy General Counsel
of Funds Distributor, Inc. (July
2000 to April 2001), and Assistant
Secretary of all of the Pioneer
Funds since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2005. Serves at Vice President - Fund Accounting, None
the discretion of the Administration and Controllership
Board Services of Pioneer; and Treasurer
of all of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (47) Assistant Treasurer Since 2005. Serves at Deputy Treasurer of Pioneer since None
the discretion of the 2004; Treasurer and Senior Vice
Board President, CDC IXIS Asset Management
Services from 2002 to 2003; and
Assistant Treasurer of all of the
Pioneer Funds since November 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Treasurer Since 2005. Serves at Assistant Vice President - Fund None
the discretion of the Accounting, Administration and
Board Controllership Services of Pioneer;
and Assistant Treasurer of all of
the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Assistant Treasurer Since 2005. Serves at Fund Accounting Manager - Fund None
the discretion of the Accounting, Administration and
Board Controllership Services of Pioneer;
and Assistant Treasurer of all of
the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
33
Pioneer Select Research Growth Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Officer
Katherine Kim Sullivan (33) Assistant Treasurer Since 2005. Serves at Fund Administration Manager - Fund None
the discretion of the Accounting, Administration and
Board Controllership Services since June
2003; Assistant Vice President -
Mutual Fund Operations of State
Street Corporation from June 2002 to
June 2003 (formerly Deutsche Bank
Asset Management); and Assistant
Treasurer of all of the Pioneer
Funds since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Since January 2007. Chief Compliance Officer of Pioneer None
Officer Serves at the since December 2006 and of all the
discretion of the Pioneer Funds since January 2007;
Board Vice President and Compliance
Officer, MFS Investment Management
(August 2005 to December 2006);
Consultant, Fidelity Investments
(February 2005 to July 2005);
Independent Consultant (July 1997 to
February 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are
officers or directors of the fund's investment adviser and certain of its
affiliates.
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly
owned by UniCredito Italiano S.p.A. ("UniCredito Italiano"), one of the largest
banking groups in Italy. Pioneer, the fund's investment adviser, provides
investment management and financial services to mutual funds, institutional and
other clients.
34
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
35
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
36
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PIONEER
-------
SELECT
RESEARCH
VALUE FUND
SERSX
Ticker Symbol
Annual
Report
8/31/07
[LOGO]PIONEER
INVESTMENTS(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 7
Prices and Distributions 8
Performance Update 9
Comparing Ongoing Fund Expenses 10
Schedule of Investments 12
Financial Statements 17
Notes to Financial Statements 21
Report of Independent Registered Public Accounting Firm 26
Trustees, Officers and Service Providers 27
President's
Dear Shareowner,
- --------------------------------------------------------------------------------
Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
were particularly useful guides during the past year, when an otherwise healthy
long-term bull market was buffeted by problems in the mortgage and banking
industries.
Since mid-year, issues tied to poor underwriting practices in the subprime
sector of the mortgage industry, and to problems with risk management by banks
and hedge funds, have resulted in increased market volatility and rising
concern about risks to U.S. economic growth.
Even against this backdrop, the long-term performance of major asset classes
remained positive. In the 12 months ending August 31, 2007, equity investors
were generally rewarded as, despite a late-July decline, the Standard & Poor's
500 Index returned 15%, the Dow Jones Industrial Average returned 20%, and the
NASDAQ Composite Index returned 19%. International developed and emerging
markets equities performed well also, with the MSCI EAFE Developed Market Index
returning 19% and the MSCI Emerging Markets Index returning 44% over the
12-month period. The U.S. bond market, as measured by the Lehman Aggregate Bond
Index, returned 5% in the 12 months ending August 31, 2007. The U.S. high-yield
bond market, as measured by the Merrill Lynch High Yield Bond Master II Index,
returned 7% for the same period, reflecting its higher coupon yield.
U.S. economic growth has slowed in the past year, but this was due as much to
the natural maturation of the cyclical expansion, as U.S. factories approached
full utilization and the labor market approached full employment, as it was to
rising commodity prices and short-term interest rates. This slowdown was,
therefore, not entirely unwelcome, as it reduced the threat of higher
inflation. More recently, however, there has been increasing concern that
falling home prices and/or banks' unwillingness to lend pose a larger and more
imminent threat to the economy.
In Europe, solid GDP growth driven by a positive operating environment for
European companies, especially exporters, has driven unemployment lower and
supported growing consumption. Japanese economic growth also continues to make
progress, and the country's deflationary problems are gradually receding.
Economic growth in emerging market countries remains faster than in the
developed world as they persist in "catching up," led by China, which continues
its rise as a world economic power.
2
Letter
The U.S. Federal Reserve and the world's other central banks have pursued
policies aimed at producing low and stable inflation, believed to be the best
backdrop for steady economic growth and low average unemployment over the long
term. Keeping inflation low is also an important support for stock and bond
valuations, and so central bank policies have also been "investor friendly."
The central banks have responded to this past summer's liquidity squeeze in the
inter-bank and commercial paper markets by acting as the "lenders of last
resort" to limit the risk of problems spreading to the broader economy. Looking
forward, the economic outlook and equity valuations appear generally positive,
although the current environment is plagued by fears that subprime mortgage
problems will result in a systemic liquidity/credit crunch. While falling risk
tolerances may depress asset prices in the short term, valuations look
reasonable if credit market problems do not spread to the broader economy.
Sudden swings in the markets are always to be expected. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to your particular risk
tolerance and investment objective.
Respectfully,
/s/Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 8/31/07
- --------------------------------------------------------------------------------
The domestic equity market generally moved upward for the first 10 months of
the past fiscal year before reversing direction in July 2007 and becoming
increasingly volatile over the final two months of the period that ended on
August 31, 2007. The late-period market turmoil was brought on by fears about
the subprime mortgage industry and its potential impacts on the larger economy.
In the following interview, members of the team responsible for managing
Pioneer Select Research Value Fund review the 12 months ending August 31, 2007.
Diego Franzin, Ashesh Savla and John Peckham, CFA, discuss the factors that
affected Fund performance. Mr. Franzin is Head of Pioneer's U.S. Quantitative
Research & Management Group, Mr. Savla, is a Quantitative Analyst at Pioneer,
and Mr. Peckham is Pioneer's Head of U.S. Equity Research.
Q: How did the Fund perform during the 12 months ending August 31, 2007?
A: The Fund did very well. For the 12 months ending August 31, 2007, Pioneer
Select Research Value Fund's Class A shares had a total return of 16.24%,
at net asset value. During the same fiscal year, the benchmark Russell
1000 Value Index returned 12.85%, and the average return of the 497 funds
in Lipper's Large Cap Value Fund category was 13.54%.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most
recent month-end performance results. Current performance may be lower or
higher than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: What were the principal factors that influenced the Fund's performance
during the 12 months?
A: The Fund did well relative to its benchmark both when stocks rose during
the 10 months - from August 31, 2006 through June 30, 2007 - and when the
market became more volatile during July and August 2007. Stock selection
was the key driver, consistent with the Fund's distinctive discipline. We
typically maintain investments in 50 different companies selected from
the 100 stocks in the
4
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Pioneer Research Fund portfolio. Sector weightings are equal to those of
the Russell 1000 Value Index, but we choose individual holdings from among
all eligible stocks, whether part of the growth or value universe. In this
process, we rank stocks based on our research into the superior
characteristics of companies in 17 different sectors and industries. We
believe the advantage of this process lies in its combination of both
quantitative and qualitative research techniques. For example, when purely
quantitative mutual funds in general struggled late in the fiscal year,
this Fund enjoyed its best period relative to the Russell 1000 Value
Index.
Q: What types of investments had the greatest influence on performance?
A: Our selections in nine of the 10 market sectors outperformed the comparable
group in the Russell 1000 Value Index. The top performing sectors in the
Fund, relative to the benchmark, were health care, energy and financials.
The top individual contributor was a health care company, Bristol-Myers
Squibb. This global pharmaceutical company has an excellent pipeline of
new drugs under development. In addition, the company came to be viewed as
an attractive potential acquisition by a larger corporation. Also helping
relative performance in the health care sector was our decision to avoid
owning shares of Pfizer, another pharmaceutical company that performed
poorly. In energy, three holdings in particular had outstanding
performance. Marathon Oil's share price rose because of its strong
position in the U.S. refining industry during a period of rising
profitability for oil refiners. Weatherford International, an oil field
services company, benefited from its leadership in new technologies that
help oil companies increase their yields from individual wells. Finally,
Chevron - a company whose stock we had purchased at a very attractive
price - outperformed as it exceeded earnings expectations. In the
financials sector, the leading performer was asset manager Franklin
Resources, which gained as its mutual funds attracted a healthy flow of
new investments.
The only sector that underperformed relative to the benchmark index was
materials. In that area, the problem was that we did not own enough
commodities companies - especially steel and other
5
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 8/31/07 (continued)
- --------------------------------------------------------------------------------
mining and minerals companies - during a period in which they performed
very well.
Q: What is your investment outlook?
A: We remain optimistic about prospects in the market for several reasons: the
economy has remained in its growth trajectory; both interest rates and
inflation remain low by historical measures; and stock valuations appear
reasonable. While the slump in the housing industry has been a drag on
the economy, we do not believe it will pull the economy into a recession.
Overall, we think the market continues to afford good opportunities for
stock investing.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. The Fund invests in a limited number of
securities and, as a result, the Fund's performance may be more volatile than
the performance of other funds holding more securities. At times, the Fund's
investments may represent industries or industry sectors that are interrelated
or have common risks, making it more susceptible to any economic, political, or
regulatory developments or other risks affecting those industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions 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.
6
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 8/31/07
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 93.0%
Temporary Cash Investment 5.0%
Depositary Receipts for International Stocks 2.0%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
Financials 31.4%
Energy 13.8%
Industrials 10.7%
Consumer Staples 8.4%
Consumer Discretionary 8.0%
Health Care 6.7%
Telecommunication Services 6.6%
Utilities 6.5%
Information Technology 4.0%
Materials 3.9%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Citigroup, Inc. 4.68%
2. Chevron Corp. 4.16
3. Procter & Gamble Co. 3.98
4. Verizon Communications, Inc. 3.90
5. ConocoPhillips 3.73
6. Wachovia Corp. 3.36
7. Time Warner Telecom 2.68
8. Merrill Lynch & Co., Inc. 2.65
9. Altria Group, Inc. 2.56
10. United Technologies Corp. 2.48
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
7
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 8/31/07 8/31/06
----- ------- -------
A $11.99 $10.69
Distributions Per Share
- --------------------------------------------------------------------------------
9/1/06 - 8/31/07
----------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- -------------- ------------- -------------
A $0.1207 $0.2846 $ -
8
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 8/31/07 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Select Research Value Fund at public offering price,
compared to that of the Russell 1000 Value Index.
- --------------------------------------------------------------------
Average Annual Total Returns
(As of August 31, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
Life-of-Class
(12/15/05) 13.55% 9.69%
1 Year 16.24 9.58
- --------------------------------------------------------------------
Expense Ratio
(Per prospectus dated January 1, 2007)
Gross Net
19.33% 1.25%
- --------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A LINE CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Select Russell 1000
Research Value Fund Value Index
12/05 $9,425 $10,000
8/06 $10,181 $11,098
8/07 $11,835 $12,524
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through 1/1/09 for Class A Shares. There can be no assurance that
Pioneer will extend the expense limitations beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Russell 1000(R) Value Index measures the performance of large-cap U.S.
value stocks. Index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot invest
directly in the Index.
9
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Select Research Value Fund
Based on actual returns from March 1, 2007 through August 31, 2007
Share Class A
- --------------------------------------------------------------------------------
Beginning Account Value On 3/1/07 $1,000.00
Ending Account Value On 8/31/07 $1,060.10
Expenses Paid During Period* $ 6.49
* Expenses are equal to the Fund's annualized expense ratio of 1.25% for Class
A shares, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
10
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Select Research Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from March 1, 2007 through August 31, 2007
Share Class A
- --------------------------------------------------------------------------------
Beginning Account Value On 3/1/07 $1,000.00
Ending Account Value On 8/31/07 $1,018.90
Expenses Paid During Period* $ 6.36
* Expenses are equal to the Fund's annualized expense ratio of 1.25% for Class
A shares, multiplied by the average account value over the period,
multiplied by 184/365 (to reflect the one-half year period).
11
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 99.3%
Energy - 13.7%
Integrated Oil & Gas - 9.6%
282 Chevron Corp. $ 24,748
271 ConocoPhillips 22,192
198 USX-Marathon Group, Inc. 10,670
--------
$ 57,610
--------
Oil & Gas Equipment & Services - 1.9%
189 Weatherford International, Inc.* $ 11,034
--------
Oil & Gas Exploration & Production - 2.2%
172 Apache Corp. $ 13,309
--------
Total Energy $ 81,953
--------
Materials - 3.9%
Diversified Chemical - 3.1%
284 Dow Chemical Co. $ 12,107
85 PPG Industries, Inc. 6,235
--------
$ 18,342
--------
Steel - 0.8%
94 Nucor Corp. $ 4,973
--------
Total Materials $ 23,315
--------
Capital Goods - 9.0%
Aerospace & Defense - 4.9%
183 Northrop Grumman Corp. $ 14,428
198 United Technologies Corp. 14,776
--------
$ 29,204
--------
Electrical Component & Equipment - 1.0%
113 Thomas & Betts Corp.* $ 6,259
--------
Industrial Conglomerates - 3.1%
157 3M Co. $ 14,285
97 Tyco International, Ltd. 4,284
--------
$ 18,569
--------
Total Capital Goods $ 54,032
--------
12 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Transportation - 1.6%
Air Freight & Couriers - 1.6%
113 C.H. Robinson Worldwide, Inc. $ 5,542
54 United Parcel Service 4,096
--------
$ 9,638
--------
Total Transportation $ 9,638
--------
Consumer Durables & Apparel - 2.1%
Leisure Products - 2.1%
278 Hasbro, Inc. $ 7,842
229 Mattel, Inc.* 4,953
--------
$ 12,795
--------
Total Consumer Durables & Apparel $ 12,795
--------
Consumer Services - 2.1%
Restaurants - 2.1%
260 McDonald's Corp. $ 12,805
--------
Total Consumer Services $ 12,805
--------
Media - 2.4%
Movies & Entertainment - 2.4%
428 The Walt Disney Co. $ 14,381
--------
Total Media $ 14,381
--------
Retailing - 1.3%
Department Stores - 1.3%
111 J.C. Penney Co., Inc. $ 7,632
--------
Total Retailing $ 7,632
--------
Food & Drug Retailing - 1.8%
Drug Retail - 1.8%
245 Walgreen Co. $ 11,042
--------
Total Food & Drug Retailing $ 11,042
--------
Food, Beverage & Tobacco - 2.6%
Tobacco - 2.6%
220 Altria Group, Inc. $ 15,270
--------
Total Food, Beverage & Tobacco $ 15,270
--------
The accompanying notes are an integral part of these financial statements. 13
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Household & Personal Products - 4.0%
Household Products - 4.0%
363 Procter & Gamble Co. $ 23,708
--------
Total Household & Personal Products $ 23,708
--------
Health Care Equipment & Services - 1.2%
Health Care Equipment - 1.2%
149 Edwards Lifesciences Group* $ 7,197
--------
Total Health Care Equipment & Services $ 7,197
--------
Pharmaceuticals & Biotechnology - 5.5%
Pharmaceuticals - 5.5%
393 Bristol-Myers Squibb Co. $ 11,456
251 Merck & Co., Inc. 12,593
298 Schering-Plough Corp. 8,946
--------
$ 32,995
--------
Total Pharmaceuticals & Biotechnology $ 32,995
--------
Banks - 9.7%
Diversified Banks - 3.3%
408 Wachovia Corp. $ 19,984
--------
Regional Banks - 6.4%
399 First Horizon National Corp. (b) $ 12,241
203 PNC Bank Corp. 14,284
166 Zions Bancorporation 11,720
--------
$ 38,245
--------
Total Banks $ 58,229
--------
Diversified Financials - 12.2%
Asset Management & Custody Banks - 2.2%
101 Franklin Resources, Inc. $ 13,309
--------
Consumer Finance - 1.7%
308 The First Marblehead Corp. (b) $ 10,315
--------
Investment Banking & Brokerage - 3.6%
144 Lazard, Ltd. $ 5,773
214 Merrill Lynch & Co., Inc. 15,772
--------
$ 21,545
--------
14 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Diversified Financial Services - 4.7%
595 Citigroup, Inc. $ 27,894
--------
Total Diversified Financials $ 73,063
--------
Insurance - 9.3%
Life & Health Insurance - 2.4%
226 MetLife, Inc. $ 14,475
--------
Multi-Line Insurance - 2.3%
155 Hartford Financial Services Group, Inc. $ 13,781
--------
Property & Casualty Insurance - 4.6%
168 Exel, Ltd. $ 12,802
289 The Traveler Companies, Inc. 14,605
--------
$ 27,407
--------
Total Insurance $ 55,663
--------
Software & Services - 1.9%
Systems Software - 1.9%
404 Microsoft Corp. $ 11,607
--------
Total Software & Services $ 11,607
--------
Technology Hardware & Equipment - 2.1%
Communications Equipment - 2.1%
391 Cisco Systems, Inc.* $ 12,481
--------
Total Technology Hardware & Equipment $ 12,481
--------
Telecommunication Services - 6.5%
Alternative Carriers - 2.6%
726 Time Warner Telecom* $ 15,936
--------
Integrated Telecommunication Services - 3.9%
554 Verizon Communications, Inc. $ 23,202
--------
Total Telecommunication Services $ 39,138
--------
Utilities - 6.4%
Gas Utilities - 2.0%
234 Questar Corp. $ 11,693
--------
Independent Power Producer & Energy Traders - 1.4%
223 NRG Energy, Inc.*(b) $ 8,494
--------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Multi-Utilities - 3.0%
145 NSTAR $ 4,752
159 Public Service Enterprise Group, Inc. 13,513
--------
$ 18,265
--------
Total Utilities $ 38,452
--------
TOTAL COMMON STOCKS
(Cost $535,084) $595,396
--------
TEMPORARY CASH INVESTMENT - 5.2%
Security Lending Collateral - 5.2%
31,006 Securities Lending Investment Fund, 5.33% $ 31,006
--------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $31,006) $ 31,006
--------
TOTAL INVESTMENT IN SECURITIES - 104.5%
(Cost $566,090)(a) $626,402
--------
OTHER ASSETS AND LIABILITIES - (4.5)% $(26,702)
--------
TOTAL NET ASSETS - 100.0% $599,700
========
* Non-income producing security.
(a) At August 31, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $566,139 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $ 70,933
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (10,670)
--------
Net unrealized gain $ 60,263
========
(b) At August 31, 2007, the following securities were out on loan:
Shares Description Value
395 First Horizon National Corp. $12,119
305 The First Marblehead Corp. 10,214
221 NRG Energy, Inc.* 8,418
-------
Total $30,751
=======
Purchases and sales of securities (excluding temporary cash investments) for
the year ended August 31, 2007 aggregated $508,305 and $523,830, respectively.
16 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 8/31/07
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value (including securities
loaned of $30,751) (cost $566,090) $626,402
Cash 30,912
Receivables -
Dividends 1,097
Due from Pioneer Investment Management, Inc. 6,640
Other 3,858
--------
Total assets $668,909
--------
LIABILITIES:
Payables -
Upon return of securities loaned $ 31,006
Due to affiliates 26
Accrued expenses 38,177
--------
Total liabilities $ 69,209
--------
NET ASSETS:
Paid-in capital $500,000
Undistributed net investment income 4,316
Accumulated net realized gain on investments 35,072
Net unrealized gain on investments 60,312
--------
Total net assets $599,700
========
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $599,700/50,000 shares) $ 11.99
========
MAXIMUM OFFERING PRICE:
Class A ($11.99 [divided by] 94.25%) $ 12.72
========
The accompanying notes are an integral part of these financial statements. 17
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 8/31/07
INVESTMENT INCOME:
Dividends $12,368
Interest 823
Income from securities loaned, net 10
-------
Total investment income $13,201
-------
EXPENSES:
Management fees $ 4,377
Transfer agent fees and expenses 19
Administrative reimbursements 131
Custodian fees 12,130
Registration fees 4,417
Professional fees 35,994
Printing expense 11,428
Fees and expenses of nonaffiliated trustees 7,503
Miscellaneous 1,899
-------
Total expenses $77,898
Less management fees waived and
expenses reimbursed by Pioneer Investment
Management, Inc. (70,604)
-------
Net expenses $ 7,294
-------
Net investment income $ 5,907
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $35,072
-------
Change in net unrealized gain on investments $44,481
-------
Net gain on investments $79,553
-------
Net increase in net assets resulting from operations $85,460
=======
18 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Year Ended 8/31/07 and for the Period from 12/15/05
(Commencement of Operations) to 8/31/06, respectively
12/15/05
Year Ended to
8/31/07 8/31/06
FROM OPERATIONS:
Net investment income $ 5,907 $ 4,446
Net realized gain on investments 35,072 14,228
Change in net unrealized gain on investments 44,481 15,831
-------- --------
Net increase in net assets resulting from
operations $ 85,460 $ 34,505
-------- --------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.12 and $0.00 per share, respectively) $ (6,035) $ -
-------- --------
Net realized gain:
Class A ($0.28 and $0.00 per share, respectively) $(14,230) $ -
-------- --------
Total distributions to shareowners $(20,265) $ -
-------- --------
Net increase in net assets $ 65,195 $ 34,505
-------- --------
NET ASSETS:
Beginning of period (initial capitalization - 50,000
shares) $534,505 $500,000
-------- --------
End of period $599,700 $534,505
======== ========
Undistributed net investment income $ 4,316 $ 4,446
======== ========
The accompanying notes are an integral part of these financial statements. 19
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
12/15/05 (a)
Year Ended to
8/31/07 8/31/06
CLASS A
Net asset value, beginning of period $ 10.69 $ 10.00
------- -------
Increase from investment operations:
Net investment income $ 0.12 $ 0.09
Net realized and unrealized gain on investments 1.58 0.60
------- -------
Net increase in net assets from investment
operations $ 1.70 $ 0.69
Distributions to shareowners:
Net investment income (0.12) -
Net realized gain (0.28) -
------- -------
Net increase in net asset value $ 1.30 $ 0.69
------- -------
Net asset value, end of period $ 11.99 $ 10.69
======= =======
Total return* 16.24% 6.90%(b)
Ratio of net expenses to average net assets 1.25% 1.25%**
Ratio of net investment income to average net assets 1.01% 1.21%**
Portfolio turnover rate 88% 66%(b)
Net assets, end of period (in thousands) $ 600 $ 535
Ratios with no waiver of management fees and
assumption of expenses by PIM
Net expenses 13.35% 19.33%**
Net investment loss (11.09)% (16.87)%**
(a) The Fund commenced operations on December 15, 2005.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
20 The accompanying notes are an integral part of these financial statements.
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Select Research Value Fund (the Fund) is one of five portfolios
comprising Pioneer Series Trust V, a Delaware statutory trust registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund was organized on October 12, 2005, and commenced
operations on December 15, 2005. Prior to December 15, 2005, the Fund had no
operations other than those relating to organizational matters and the initial
capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD). To date, no
shares have been offered to the public. The Fund shares outstanding at August
31, 2007, are owned by PFD. The Fund's investment objective is to seek long-term
capital growth.
Investing in small and mid-sized companies may offer the potential for higher
returns, but are also subject to greater short-term price fluctuations than
larger, more established companies. Information regarding the Fund's principal
investment risks is contained in the Fund's prospectus. Please refer to that
document when considering the Fund's investment risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities are valued 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,
21
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
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 NYSE. The values of such
securities used in computing the net 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
principal exchange where the security is traded no longer reflects the
value of the security. As of August 31, 2007, there were no securities fair
valued. Temporary cash investments are valued at cost which approximates
market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis,
net of unrecoverable foreign taxes withheld at the applicable country
rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. 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 amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as 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.
At August 31, 2007, the Fund reclassified $2 to decrease undistributed net
investment income and $2 to increase accumulated
22
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
net realized gain on investments. The reclassification has no impact on the
net asset value of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
The tax character of distributions paid during the year ended August 31,
2007 was as follows. There were no distributions paid during the period
ended August 31, 2006.
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Ordinary Income $20,265
Long-term capital gain -
-------
Total $20,265
=======
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2007:
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Undistributed ordinary income $20,911
Undistributed long-term gain 18,526
Unrealized appreciation 60,263
-------
Total $99,700
=======
- --------------------------------------------------------------------------------
The difference between book basis and tax basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
C. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
fair value of the loaned securities that may occur during the term of the
loan will be for the account of the Fund. The loans are secured by
collateral of at least 102%, at all times, of the fair value of the
securities loaned. The amount of the collateral will be adjusted daily to
reflect any price fluctuation in the value of the loaned securities. The
Fund has the right under the
23
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 8/31/07 (continued)
- --------------------------------------------------------------------------------
lending agreements to recover the securities from the borrower on demand.
The Fund invests cash collateral in the Securities Lending Investment Fund,
which is sponsored by Brown Brothers Harriman & Co., the Fund's custodian.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary
of UniCredito Italiano, manages the Fund's portfolio. Management fees are
calculated daily at the annual rate of 0.75% of the Fund's average daily net
assets up to $1 billion and 0.70% of the excess over $1 billion. For the year
ended August 31, 2007, the management fee was equal to 0.75% of the Fund's
average daily net assets.
Through January 1, 2009, PIM has agreed not to impose all or a portion of its
management fee and to assume other operating expenses of the Fund to the extent
necessary to limit Class A expenses to 1.25% of the average daily net assets
attributable to Class A shares.
In addition, under the management and administration agreements, certain other
services, including accounting, regulatory reporting and insurance, are paid by
the Fund. There were no management fees, administrative costs or other services
payable at August 31, 2007.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (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 $26 in transfer agent fees payable to PIMSS at
August 31, 2007.
4. Distribution Plan
The Fund adopted a Plan of Distribution in accordance with Rule 12b-1 of the
Investment Company Act of 1940. The Fund will pay 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. There were no distribution
fees payable to PFD at August 31, 2007.
24
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
5. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the applicable tax
authority. Tax positions deemed to not meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the reporting period in which
they are realized. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of no
later than February 29, 2008. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
been determined.
In addition, in September 2006, Statement of Financial Accounting Standards No.
157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal
years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
25
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Trustees of Pioneer Series Trust V and
Shareholders of Pioneer Select Research Value Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Select Research Value Fund (the Fund)
(one of the portfolios constituting Pioneer Series Trust V) as of August 31,
2007, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of August 31, 2007, by correspondence with
the custodian and brokers. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Select Research Value Fund at August 31, 2007, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
October 12, 2007
26
Pioneer Select Research Value Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The fund's Board of Trustees provides broad supervision over the fund's
affairs. The officers of the fund are responsible for the fund's operations.
The fund's Trustees and officers are listed below, together with their
principal occupations during the past five years. Trustees who are interested
persons of the fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the fund are
referred to as Independent Trustees. Each of the Trustees (except Mr.
Kingsbury, Mr. West and Mr. Bock) serves as a Trustee of each of the 82 U.S.
registered investment portfolios for which Pioneer serves as investment adviser
(the "Pioneer Funds"). Mr. Kingsbury serves as Trustee of 34 of the 82 Pioneer
Funds, Mr. West serves as Trustee of 33 of the 82 Pioneer Funds, and Mr. Bock
serves as Trustee of 81 of the 82 Pioneer Funds. The address for all Interested
Trustees and all officers of the fund is 60 State Street, Boston, Massachusetts
02109.
27
Pioneer Select Research Value Fund
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service and Principal Occupation During Other Directorships
Name and Age With the Fund Term of Office Past Five Years Held by this Trustee
John F. Cogan, Jr. (81)* Chairman of the Trustee since 2005. Deputy Chairman and a Director None
Board, Trustee and Serves until a succes- of Pioneer Global Asset
President sor trustee is elected Management S.p.A. ("PGAM");
or earlier retirement or Non-Executive Chairman and a
removal. Director of Pioneer Investment
Management USA Inc.
("PIM-USA"); Chairman and a
Director of Pioneer; Chairman
and Director of Pioneer
Institutional Asset
Management, Inc. (since 2006);
Director of Pioneer
Alternative Investment
Management Limited (Dublin);
President and a Director of
Pioneer Alternative Investment
Management (Bermuda) Limited
and affiliated funds; Direc-
tor of PIOGLOBAL Real Estate
Investment Fund (Russia)
(until June 2006); Director of
Nano-C, Inc. (since 2003);
Director of Cole Management
Inc. (since 2004); Director of
Fiduciary Counseling, Inc.;
President and Director of
Pioneer Funds Distributor,
Inc. ("PFD") (until May 2006);
President of all of the
Pioneer Funds; and Of Counsel,
Wilmer Cutler Pickering Hale
and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (49)* Trustee and Executive Trustee since March Director, CEO and President of None
Vice President 2007. Serves until a Pioneer Investment Management
successor trustee is USA Inc.; Pioneer Investment
elected or earlier Management, Inc. and Pioneer
retirement or removal. Institutional Asset
Management, Inc. (since March
2007); Executive Vice
President of all of the
Pioneer Funds (since March
2007); Director of Pioneer
Global Asset Management S.p.A.
(since March 2007); Head of
New Markets Division, Pioneer
Global Asset Management S.p.A.
(2000 - 2007)
- ------------------------------------------------------------------------------------------------------------------------------------
28
Pioneer Select Research Value Fund
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service and Principal Occupation During Other Directorships
Name, Age and Address With the Fund Term of Office Past Five Years Held by this Trustee
David R. Bock (63) Trustee Trustee since 2005. Executive Vice President and Director of The Enterprise
3050 K Street NW, Serves until a succes- Chief Financial Officer, Social Investment
Washington, DC 20007 sor trustee is elected I-trax, Inc. (publicly traded Company (privately-held
or earlier retirement or health care services company) affordable housing
removal. (2004 - present); Partner, finance company); and
Federal City Capital Advisors Director of New York
(boutique merchant bank) (1997 Mortgage Trust (publicly
to 2004); and Executive Vice traded mortgage REIT)
President and Chief Financial
Officer, Pedestal Inc.
(internet-based mortgage
trading company) (2000 - 2002)
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 2005. President, Bush International, Director of Brady
3509 Woodbine Street Serves until a succes- LLC (international financial Corpora- tion (industrial
Chevy Chase, MD 20815 sor trustee is elected advisory firm) identifica- tion and
or earlier retirement or specialty coated material
removal. products manufacturer);
Director of Briggs &
Stratton Co. (engine
manufacturer); Director
of UAL Corpora- tion
(airline holding
company); and Director of
Mantech International
Corporation (national
security, defense, and
intelligence technology
firm)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (60) Trustee Trustee since 2005. Founding Director, None
1001 Sherbrooke Street West, Serves until a succes- Vice-President and Corporate
Montreal, Quebec, Canada sor trustee is elected Secretary, The Winthrop Group,
H3A 1G5 or earlier retirement or Inc. (consulting firm); and
removal. Desautels Faculty of
Management, McGill University
- ------------------------------------------------------------------------------------------------------------------------------------
29
Pioneer Select Research Value Fund
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Term of Office and Principal Occupation During Other Directorships
Name, Age and Address With the Fund Length of Service Past Five Years Held by this Trustee
Thomas J. Perna (56) Trustee Trustee since 2006. Private investor (2004 - Director of Quadriserv
89 Robbins Avenue, Serves until a succes- present); and Senior Executive Inc. (technology products
Berkeley Heights, NJ 07922 sor trustee is elected Vice President, The Bank of for securities lending
or earlier retirement or New York (financial and industry)
removal. securi- ties services) (1986 -
2004)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 2005. President and Chief Executive Director of New America
200 State Street, 12th Floor, Serves until a succes- Officer, Newbury, Piret & High Income Fund, Inc.
Boston, MA 02109 sor trustee is elected Company, Inc. (investment (closed-end investment
or earlier retirement or banking firm) company)
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (78) Trustee Trustee since 2005. Senior Counsel, Sullivan & Director, The Swiss
125 Broad Street, New York, Serves until a succes- Cromwell (law firm) Helvetia Fund, Inc.
NY 10004 sor trustee is elected (closed-end investment
or earlier retirement or company)
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 2005. President, John Winthrop & None
One North Adgers Wharf, Serves until a succes- Co., Inc. (private investment
Charleston, SC 29401 sor trustee is elected firm)
or earlier retirement or
removal.
- ------------------------------------------------------------------------------------------------------------------------------------
30
Pioneer Select Research Value Fund
- ------------------------------------------------------------------------------------------------------------------------------------
FUND OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service and Principal Occupation During Other Directorships
Name and Age With the Fund Term of Office Past Five Years Held by this Officer
Dorothy E. Bourassa (59) Secretary Since 2005. Serves at Secretary of PIM-USA; Senior None
the discretion of the Vice President - Legal of
Board Pioneer; Secretary/Clerk of
most of PIM-USA's subsidiar-
ies; and Secretary of all of
the Pioneer Funds since
September 2003 (Assistant
Secretary from November 2000
to September 2003)
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (42) Assistant Secretary Since 2005. Serves at Vice President and Senior None
the discretion of the Counsel of Pioneer since July
Board 2002; Vice President and
Senior Counsel of BISYS Fund
Services, Inc. (April 2001 to
June 2002); Senior Vice
President and Deputy General
Counsel of Funds Distribu-
tor, Inc. (July 2000 to April
2001), and Assistant Secretary
of all of the Pioneer Funds
since September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2005. Serves at Vice President - Fund None
the discretion of the Accounting, Administration and
Board Controllership Services of
Pioneer; and Treasurer of all
of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (47) Assistant Treasurer Since 2005. Serves at Deputy Treasurer of Pioneer None
the discretion of the since 2004; Treasurer and
Board Senior Vice President, CDC
IXIS Asset Management Services
from 2002 to 2003; and
Assistant Treasurer of all of
the Pioneer Funds since
November 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Treasurer Since 2005. Serves at Assistant Vice President - None
the discretion of the Fund Accounting,
Board Administration and
Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Assistant Treasurer Since 2005. Serves at Fund Accounting Manager - Fund None
the discretion of the Accounting, Administra- tion
Board and Controllership Services of
Pioneer; and Assistant
Treasurer of all of the
Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
31
Pioneer Select Research Value Fund
- ------------------------------------------------------------------------------------------------------------------------------------
FUND OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service and Principal Occupation During Other Directorships
Name and Age With the Fund Term of Office Past Five Years Held by this Officer
Katherine Kim Sullivan (33) Assistant Treasurer Since 2005. Serves at Fund Administration Manager - None
the discretion of the Fund Accounting,
Board Administration and
Controllership Services since
June 2003; Assistant Vice
President - Mutual Fund
Operations of State Street
Corporation from June 2002 to
June 2003 (formerly Deutsche
Bank Asset Management); and
Assistant Treasurer of all of
the Pioneer Funds since
September 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Since January 2007. Chief Compliance Officer of None
Officer Serves at the discre- Pioneer since December 2006
tion of the Board and of all the Pioneer Funds
since January 2007; Vice
President and Compliance
Officer, MFS Investment
Management (August 2005 to
December 2006); Consultant,
Fidelity Investments (February
2005 to July 2005);
Independent Consultant (July
1997 to February 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers or directors of the fund's investment adviser
and certain of its affiliates.
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly owned by UniCredito Italiano S.p.A. ("UniCredito
Italiano"), one of the largest banking groups in Italy. Pioneer, the fund's investment adviser, provides investment management and
financial services to mutual funds, institutional and other clients.
32
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Series, including fees associated
with the filings of its Form N-1A, totaled approximately $144,650 in 2007
and approximately $70,875 in 2006.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no audit-related services in 2007 or 2006.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax returns, totaled
$39,100 in 2007 and $22,545 in 2006.
(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.
All Other Fees
There were no other services provided to the Fund during the fiscal years
ended August 31, 2007 and 2006.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered into on or after
May 6, 2003, the effective date of the new SEC pre-approval rules,
the Fund's audit committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the services are
determined to have a direct impact on the operations or financial
reporting of the Fund. For the years ended August 31, 2007 and 2006,
there were no services provided to an affiliate that required the Fund's
audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as previously
defined, totaled approximately $39,100 in 2007 and $22,545 in 2006.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has considered
whether the provision of non-audit services that were rendered to
the Affiliates (as defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust V
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date october 29, 2007
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 October 29, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date October 29, 2007
* Print the name and title of each signing officer under his or her signature.