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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 811-10111
Pioneer Europe Select
(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, 2002 through August 31, 2003
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
PIONEER
-----------------------
EUROPE
SELECT
FUND
Annual
Report
8/31/03
[LOGO] PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter from the President 1
Portfolio Summary 3
Performance Update 4
Portfolio Management Discussion 7
Schedule of Investments 11
Financial Statements 15
Notes to Financial Statements 22
Report of Independent Auditors 28
Trustees, Officers and Service Providers 29
Retirement Plans from Pioneer 36
Pioneer Europe Select Fund
================================================================================
LETTER FROM THE PRESIDENT 8/31/03
================================================================================
Dear Shareowners,
- --------------------------------------------------------------------------------
The quick collapse of the regime of Saddam Hussein led, over the following
months, to an easing of investor concerns about international tensions. Both
U.S. and international investors began to focus on increasing evidence that the
global economies soon could rise from their slumps. Stock markets in the United
States and in Europe began a broad-based rally in early March, and prices
continued to climb through the end of August. Growing investor confidence also
led to strong returns on to have the opportunity to lead Pioneer as it continues
corporate bonds. However, returns on investments in U.S. and European government
bonds have slowed.
Encouraging factors are not hard for investors to find. After a succession of
interest rate cuts by the Federal Reserve, short-term rates are lower than most
of us have ever seen. At the same time, the recent tax cuts will mean higher
incomes for many consumers, especially for those who will also benefit from tax
reductions on stock dividends and capital gains. Meanwhile, corporations have
been able to take advantage of low borrowing costs, which remain low by
historical standards even after recent increases in interest rates.
One possible lesson to be learned from market declines and recoveries is the
importance of staying invested. Those who stayed invested through challenging
market conditions have benefited from the recent rallies, while those who
remained on the sidelines have had to play catch-up. If the protracted slump
caused you to avoid investing, this may be an ideal time to contact your
financial advisor for guidance on resuming your investment program. This
guidance should include advice on the right balance for you among stocks, bonds
and short-term investments.
- --------------------------------------------------------------------------------
Pioneer's new president Osbert Hood was recently named Chief Executive Officer
and President of Pioneer Investments USA. Mr. Hood, formerly Pioneer's Chief
Operating Officer and a key member of the senior management committee, joined
Pioneer in 2000 from John Hancock Financial Services, where he had held senior
financial positions. "I am excited and honored to grow," Mr. Hood said. "As CEO
I look forward to furthering Pioneer's strategic goals, including developing new
products that can meet the wider needs of investors and the advisers who serve
them."
- --------------------------------------------------------------------------------
1
Pioneer Europe Select Fund
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LETTER FROM THE PRESIDENT 8/31/03 (continued)
================================================================================
Our style focuses on companies, not forecasts
Investing always carries risk, of course. Many investors try to time their
decisions according to economic and business trends. This strategy, in itself,
carries its own risks. Pioneer's portfolio managers and analysts seek to avoid
those risks. They do not try to estimate when market trends will change. Rather,
they assemble portfolios based on fundamental research. Since our founding in
1928, we have employed a value-focused investment style that entails intensive
analysis of financial reports, visits to companies and detailed discussions with
corporate managers. When we discover potential that is not fully appreciated in
market prices, we consider a stock or bond for inclusion in our portfolios. This
commitment to independent research, supported by the global resources of our
parent organization, UniCredito Italiano, is a major reason for our success.
I join everyone at Pioneer in extending our appreciation for your continued
confidence in our products and services.
Respectfully,
/s/ OSBERT M. HOOD
Osbert M. Hood
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
2
Pioneer Europe Select Fund
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PORTFOLIO SUMMARY 8/31/03
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Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[DATA BELOW IS REPRESENTED BY A CHART IN THE ORIGINAL REPORT]
Financials 17.5%
Consumer Discretionary 15.0%
Consumer Staples 14.9%
Industrials 12.6%
Energy 11.7%
Health Care 10.7%
Telecommunication Services 7.9%
Materials 6.0%
Information Technology 3.7%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[DATA BELOW IS REPRESENTED BY A CHART IN THE ORIGINAL REPORT]
United Kingdom 26.7%
France 19.3%
Germany 17.6%
Netherlands 12.9%
Ireland 6.2%
Switzerland 4.6%
Finland 3.7%
Italy 3.6%
Portugal 2.7%
Spain 2.7%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Royal Dutch Petroleum Co. 5.66%
2. Vodafone Group Plc 5.25
3. Nestle SA (Registered Shares) 4.55
4. BNP Paribas SA 4.37
5. Porsche AG Designs 4.33
6. Diageo Plc 4.20
7. Barclays Plc 4.14
8. TNT Post Group NV 3.87
9. Nokia Oyj 3.70
10. CRH Plc 3.62
*This list excludes money market investments. Fund holdings will vary for other
periods.
3
Pioneer Europe Select Fund
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PERFORMANCE UPDATE 8/31/03 CLASS A SHARES
================================================================================
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 8/31/03 8/31/02
$8.68 $7.91
Net
Distributions per Share Investment Short-Term Long-Term
(9/1/02 - 8/31/03) Income Capital Gains Capital Gains
$ - $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Fund at public offering price, compared
to that of the Morgan Stanley Capital International (MSCI) Europe Index.
- --------------------------------------------
Average Annual Total Returns
(As of August 31, 2003)
Net Asset Public Offering
Period Value Price*
Life-of-Class
(12/29/00) -4.73% -6.82%
1-Year 9.73% 3.46%
- --------------------------------------------
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of the maximum 5.75% sales charge at the beginning of
the period.
[DATA BELOW IS REPRESENTED BY A CHART IN THE ORIGINAL REPORT]
Growth of $10,000
Date Value MSCI Europe
12/31/2000 $9,425 $10,000
8/31/2002 $7,546 $6,789
8/31/2003 $8,281 $7,169
+ MSCI Europe Index is a capitalization-weighted index of the 15 European
country indexes included in the MSCI EAFE (Europe, Australasia, Far East)
Index. These countries are: Austria, Belgium, Denmark, Finland, France,
Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect
any fees, expenses or sales charges. You cannot invest directly in the
Index.
Past performance does not guarantee future results. Returns and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost. The performance table and graph do not reflect
the deduction of taxes that a shareowner would pay on Fund distributions or
redemption of Fund shares.
4
Pioneer Europe Select Fund
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PERFORMANCE UPDATE 8/31/03 CLASS B SHARES
================================================================================
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 8/31/03 8/31/02
$8.62 $7.94
Net
Distributions per Share Investment Short-Term Long-Term
(9/1/02 - 8/31/03) Income Capital Gains Capital Gains
$ - $ - $ -
Investment Returns
- -------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Fund, compared to that of the Morgan
Stanley Capital International (MSCI) Europe Index.
- ----------------------------------------
Average Annual Total Returns
(As of August 31, 2003)
If If
Period Held Redeemed*
Life-of-Class
(12/29/00) -5.41% -6.48%
1-Year 8.57% 4.57%
- ----------------------------------------
All returns reflect reinvestment of distributions.
* Reflects deduction of the maximum applicable contingent deferred sales
charge (CDSC) at the end of the period. The maximum CDSC of 4% declines to
zero over six years.
[DATA BELOW IS REPRESENTED BY A CHART IN THE ORIGINAL REPORT]
Growth of $10,000
Date Value MSCI Europe
12/31/2000 $10,000 $10,000
8/31/2002 $7,940 $6,789
8/31/2003 $8,361 $7,169
+ MSCI Europe Index is a capitalization-weighted index of the 15 European
country indexes included in the MSCI EAFE (Europe, Australasia, Far East)
Index. These countries are: Austria, Belgium, Denmark, Finland, France,
Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect
any fees, expenses or sales charges. You cannot invest directly in the
Index.
Past performance does not guarantee future results. Returns and principal
values fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost. The performance table and graph do not reflect
the deduction of taxes that a shareowner would pay on Fund distributions or
redemption of Fund shares.
5
Pioneer Europe Select Fund
================================================================================
PERFORMANCE UPDATE 8/31/03 CLASS C SHARES
================================================================================
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 8/31/03 8/31/02
$8.69 $7.96
Net
Distributions per Share Investment Short-Term Long-Term
(9/1/02 - 8/31/03) Income Capital Gains Capital Gains
$ - $ - $ -
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Fund at public offering price, compared
to that of the Morgan Stanley Capital International (MSCI) Europe Index.
- -----------------------------------------------
Average Annual Total Returns
(As of August 31, 2003)
Net Asset Public Offering
Period Value Price/CDSC*
Life-of-Class
(12/29/00) -5.12% -5.48%
1-Year 9.17% 8.08%
- -----------------------------------------------
All returns reflect reinvestment of distributions
* Reflects deduction of the 1% sales charge at the beginning of the period.
The 1% contingent deferred sales charge (CDSC) applies to investments sold
within one year of purchase.
[DATA BELOW IS REPRESENTED BY A CHART IN THE ORIGINAL REPORT]
Growth of $10,000
Date Value MSCI Europe
12/31/2000 $9,900 $10,000
8/31/2002 $7,881 $6,789
8/31/2003 $8,604 $7,169
+ MSCI Europe Index is a capitalization-weighted index of the 15 European
country indexes included in the MSCI EAFE (Europe, Australasia, Far East)
Index. These countries are: Austria, Belgium, Denmark, Finland, France,
Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom. Index returns are calculated monthly,
assume reinvestment of dividends and, unlike Fund returns, do not reflect
any fees, expenses or sales charges. You cannot invest directly in the
Index.
Past performance does not guarantee future results. Returns and principal
value fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost. The performance table and graph do not reflect
the deduction of taxes that a shareowner would pay on Fund distributions or
redemption of Fund shares.
6
Pioneer Europe Select Fund
================================================================================
PORTFOLIO MANAGEMENT DISCUSSION 8/31/03
================================================================================
As the U.S. dollar declined in relation to European currencies, the value of
U.S. investments in the euro and euro-linked currencies rose, helping U.S.
investors achieve positive results for the 12 months that ended August 31, 2003.
In local currencies, European equity markets fell sharply during the first half
of the period, but then rose dramatically in the second half as uncertainties
about geopolitical tensions receded and the economic outlook began to improve.
In the following interview, Andrew Arbuthnott discusses the events and factors
that affected your Fund's performance during the 12 months that ended August 31,
2003. Mr. Arbuthnott is a member of the team at Pioneer Investment Management in
Dublin Ireland, that is responsible for the Fund's day-to-day management.
Q: How did the Fund perform during the 12 months that ended August 31, 2003?
A: The Fund performed well, surpassing the performance of the European market
benchmark. Pioneer Europe Select Fund's Class A shares had a total return
of 9.73%, while Class B shares returned 8.57% and Class C shares had a
return of 9.17%, all at net asset value. During the same period, the MSCI
Europe Index returned 9.10%.
Q: What was the investment environment like during the period?
A: For the full 12 months, the most influential factor affecting the Fund's
performance was currency. The euro, for example, gained 11.50% in value
against the U.S. dollar for the full 12 months, with most of those currency
gains coming early in the 12-month period. This helped the performance of
any U.S. investment made in the euro or a euro-linked currency.
The story of the European markets was - to use a soccer phrase - "a game of
two halves." The first half, from September 1, 2002, through the end of
February 2003, proved very difficult. Stocks throughout Europe declined
both as a result of the political and military uncertainties leading up to
the conflict in Iraq and because of pessimistic forecasts about the health
of the global economy. The second half provided a completely different
backdrop. The fall of the regime in Iraq brought an easing of the
geopolitical uncertainties. At the same time, evidence began to accumulate
that the global economy was in better condition than
7
Pioneer Europe Select Fund
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PORTFOLIO MANAGEMENT DISCUSSION 8/31/03 (continued)
================================================================================
earlier believed and that the world was not about to enter a period of
deflation or recession. Meanwhile, central banks had lowered interest
rates, creating more positive conditions for investment and consumer
spending. As a result, stock prices shot up. From the second week of March
through the end of the fiscal period on August 31, 2003, the European
markets gained about 30% in local currencies.
The best performing sectors during the 12 months were technology,
transportation, retail, health care services and telecommunications.
Lagging were: food, beverage and tobacco companies; food and consumer
staples retailers; energy stocks; automobile companies; and
pharmaceuticals.
By country, the stronger performing markets included Spain, where growth
was vigorous, and Sweden, Finland and Denmark, which are home to
significant technology and capital goods companies. The worst performing
nations were the Netherlands, Belgium, the United Kingdom and Germany.
Q: What types of investments had the greatest positive impact on Fund
performance?
A: Our capital goods holdings performed particularly well. Saint Gobain, a
diversified French industrial group, gained 35% in U.S. dollar terms. The
company was helped both by good operating results and a decline in worries
about the company's asbestos liabilities. Grupo Dragados, a Spanish
construction company, did even better, appreciating 43% for the 12 months.
This company benefited from strong growth in the Spanish economy as well as
from the announcement late in the period that it would merge with another
Spanish construction company, ACS. CRH, a building materials company based
in Ireland, and Wolseley, a distributor of heating and plumbing products in
the United Kingdom, also supported Fund performance.
Our banking investments helped performance. Dublin's Anglo-Irish Bank,
which rose 46%, posted strong results as the Irish economy continued to
grow. In addition, the bank successfully gained corporate banking business
in the United Kingdom. The British banking company Barclays also helped
Fund performance. We established a position in January, when the stock of
Barclays was selling at a very attractive price with a dividend yield of
more than 6%. Among
8
Pioneer Europe Select Fund
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================================================================================
our other financial services investments, Deutsche Boerse, the operator of
the German stock exchange, did very well. Even though German stocks
underperformed, the exchange's business in bond futures helped sustain
earnings.
Fresenius Medical Care, a German health care services company that operates
dialysis clinics throughout the world, turned in exceptionally strong
performance, appreciating 81% for the 12 months. It had begun the period
with an artificially depressed stock price because of exaggerated fears
about its potential asbestos-related liability. As those fears receded
because of a favorable claims settlement, the stock staged a comeback.
In technology, the Fund's leading performers included Nokia, the
Finnish-based producer of telecommunications equipment that appreciated as
investors gained confidence in telecom, and Indra, a Spanish information
technology services firm, which showed strong earnings gains.
Q: What types of investments produced disappointing results?
A: Ahold, the Dutch-based food retailer, fell sharply, hurt by the controversy
over the financial reporting for its operations in the United States, which
resulted in a restatement of corporate earnings. Munich Re, a German
insurer, also suffered a major decline, hurt by the falling German stock
market.
While we sold our positions in Ahold in February and in Munich Re in
January, we have maintained our holding in the French pharmaceutical
company Aventis, another company that detracted from performance. Concerns
about challenges to its drug patents hampered Aventis' performance, as did
disappointments in the development of new pharmaceuticals. However, we
believe the company remains attractively priced and we have kept our
investment.
Other poor performers included Schering, a German pharmaceutical company,
and Porsche, the German luxury automobile firm, whose introduction of a new
sports utility vehicle was not as successful as had been hoped.
9
Pioneer Europe Select Fund
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PORTFOLIO MANAGEMENT DISCUSSION 8/31/03 (continued)
================================================================================
Q: What is your investment outlook?
A: We are finding many stocks with attractive valuations and high dividend
yields in Europe while we wait for confirmation that economic growth is
gaining momentum. The economic landscape across Europe continues to pose
challenges, and we do not anticipate a rapid recovery from the current
slump, which has found major countries like Germany, Italy and the
Netherlands in recession.
However, we are beginning to see some signs of improvement. Economies such
as Spain and Ireland are continuing to expand; leading economic indicators
are beginning to suggest an increase in growth in other countries. While
economic growth in Europe was flat for the first half of 2003, we expect to
see an improvement in the second half. At the same time, we are seeing
signs of reform in countries such as Germany, where government regulations
have imposed high costs on corporations, discouraging investments. We
expect that both the economies and the equity markets of Europe will follow
the lead of the United States and begin to show consistent growth after a
stronger momentum has been established in the United States.
We intend to continue to focus on our long-term discipline and generally
keep a focused portfolio of no more than 30 different holdings. We take a
long-term perspective when we invest in companies, focusing on fundamentals
such as strong balance sheets, the ability to generate cash flow and
healthy growth potential. We normally do not have high turnover in the
portfolio, believing that patient investing in fundamentally sound
corporations will result in good performance.
With that discipline, we are finding some attractive opportunities to
invest at inexpensive prices in high quality companies, many paying
dividend yields of 4% or higher.
A fund with a non-diversified portfolio may experience greater volatility
than a fund with a diversified portfolio.
Any information in this shareholder report regarding market or economic
trends or the factors influencing the Fund's historical or future
performance are statements of the opinion of Fund management as of the date
of this report. These statements should not be relied upon for any other
purposes. Past performance is no guarantee of future results, and there is
no guarantee that market forecasts discussed will be realized.
10
Pioneer Europe Select Fund
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SCHEDULE OF INVESTMENTS 8/31/03
================================================================================
Shares Value
PREFERRED STOCK - 4.2%
Automobiles & Components - 4.2%
Automobile Manufacturers - 4.2%
176 Porsche AG Designs $ 75,069
----------
TOTAL PREFERRED STOCK
(Cost $69,891) $ 75,069
----------
COMMON STOCKS - 93.4%
Energy - 11.4%
Integrated Oil & Gas - 5.9%
9,904 BG Group Plc $ 42,759
4,106 ENI S.p.A. 62,335
----------
$ 105,094
----------
Oil & Gas Refining, Marketing & Transportation - 5.5%
2,195 Royal Dutch Petroleum Co. $ 98,087
----------
Total Energy $ 203,181
----------
Materials - 5.8%
Construction Materials - 3.5%
3,288 CRH Plc $ 62,712
----------
Specialty Chemicals - 2.3%
280 L'Air Liquide SA $ 40,261
----------
Total Materials $ 102,973
----------
Capital Goods - 8.5%
Construction & Engineering - 5.7%
2,308 Grupo Dragados SA $ 46,811
1,376 Compagnie de Saint Gobain SA 53,835
----------
$ 100,646
----------
Electrical Components & Equipment - 2.8%
917 Schneider Electric SA $ 49,576
----------
Total Capital Goods $ 150,222
----------
Commercial Services & Supplies - 3.8%
Diversified Commercial Services - 3.8%
3,589 TNT Post Group NV $ 67,072
----------
Total Commercial Services & Supplies $ 67,072
----------
The accompanying notes are an integral part of these financial statements. 11
Pioneer Europe Select Fund
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SCHEDULE OF INVESTMENTS 8/31/03 (continued)
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Shares Value
Automobiles & Components - 2.7%
Automobile Manufacturers - 2.7%
1,230 Bayerische Motoren Werke AG $ 48,664
----------
Total Automobiles & Components $ 48,664
----------
Hotels, Restaurants & Leisure - 1.7%
Restaurants - 1.7%
5,529 Compass Group Plc $ 30,901
----------
Total Hotels, Restaurants & Leisure $ 30,901
----------
Media - 3.3%
Publishing - 3.3%
5,258 Elsevier NV $ 58,032
----------
Total Media $ 58,032
----------
Retailing - 2.7%
Home Improvement Retail - 2.7%
4,162 Wolseley $ 47,354
----------
Total Retailing $ 47,354
----------
Food & Drug Retailing - 7.3%
Food Retail - 7.3%
362 Nestle SA (Registered Shares) $ 78,887
14,881 Tesco Plc 50,899
----------
$ 129,786
----------
Total Food & Drug Retailing $ 129,786
----------
Food, Beverage & Tobacco - 7.2%
Distillers & Vintners - 4.1%
6,786 Diageo Plc $ 72,712
----------
Tobacco - 3.1%
5,505 British American Tobacco Plc $ 55,772
----------
Total Food, Beverage & Tobacco $ 128,484
----------
Health Care Equipment & Supplies - 3.9%
Health Care Distributors - 2.0%
709 Fresenius Medical Care AG $ 36,164
----------
Health Care Equipment - 1.9%
800 Celesio AG $ 32,698
----------
Total Health Care Equipment & Supplies $ 68,862
----------
12 The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Fund
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================================================================================
Shares Value
Pharmaceuticals & Biotechnology - 6.6%
Pharmaceuticals - 6.6%
1,192 Aventis SA $ 57,971
1,457 Schering AG 59,214
----------
$ 117,185
----------
Total Pharmaceuticals & Biotechnology $ 117,185
----------
Banks - 10.9%
Diversified Banks - 10.9%
4,570 Anglo Irish Bank Corp. $ 45,264
9,886 Barclays Plc 71,724
1,518 BNP Paribas SA 75,727
----------
$ 192,715
----------
Total Banks $ 192,715
----------
Diversified Financials - 6.2%
Diversified Financial Services - 6.2%
1,086 Deutsche Boerse AG $ 52,672
862 Societe Generale SA 57,235
----------
$ 109,907
----------
Total Diversified Financials $ 109,907
----------
Technology Hardware & Development - 3.6%
Communications Equipment - 3.6%
3,905 Nokia Oyj $ 64,048
----------
Total Technology Hardware & Development $ 64,048
----------
Telecommunication Services - 7.8%
Integrated Telecommunication Services - 2.7%
6,512 Portugal Telecom SGPS, SA $ 47,104
----------
Wireless Telecommunication Services - 5.1%
49,539 Vodafone Group Plc $ 90,879
----------
Total Telecommunication Services $ 137,983
----------
TOTAL COMMON STOCKS
(Cost $1,513,090) $1,657,369
----------
TOTAL INVESTMENT IN SECURITIES - 97.6%
(Cost $1,582,981) (a)(b)(c)(d) $1,732,438
----------
OTHER ASSETS AND LIABILITIES - 2.4% $ 42,667
----------
TOTAL NET ASSETS - 100.0% $1,775,105
----------
The accompanying notes are an integral part of these financial statements. 13
Pioneer Europe Select Fund
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SCHEDULE OF INVESTMENTS 8/31/03 (continued)
================================================================================
(a) At August 31, 2003, the net unrealized gain on investments
based on cost for federal income tax purposes of $1,597,767
was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $162,131
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (27,460)
--------
Net unrealized gain $134,671
--------
(b) Distribution of investments by country of issue, as a percentage of total
equity holdings, is as follows:
United Kingdom 26.7%
France 19.3
Germany 17.6
Netherlands 12.9
Ireland 6.2
Switzerland 4.6
Finland 3.7
Italy 3.6
Portugal 2.7
Spain 2.7
-----
100.0%
-----
(c) At August 31, 2003, the Fund had a capital loss carryforward of $86,278,
which will expire between 2009 and 2011 if not utilized.
(d) The Fund has elected to defer approximately $45,439 of capital losses
recognized between November 1, 2002 and August 31, 2003 to its fiscal year
ending August 31, 2004.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended August 31, 2003 aggregated $1,418,081 and $842,530, respectively.
14 The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Fund
================================================================================
STATEMENT OF ASSETS AND LIABILITIES 8/31/03
================================================================================
ASSETS:
Investment in securities, at value (cost $1,582,981) $ 1,732,438
Cash 24,621
Foreign currencies, at value (cost $23,250) 23,025
Receivables -
Investment securities sold 32,598
Fund shares sold 2,039
Dividends, interest and foreign taxes withheld 7,004
Due from Pioneer Investment Management, Inc. 38,576
Prepaid expenses 3,506
Other 2,044
-----------
Total assets $ 1,865,851
-----------
LIABILITIES:
Payables -
Investment securities purchased $ 41,643
Fund shares repurchased 10,566
Forward foreign currency settlement hedge contracts - net 146
Due to affiliates 6,072
Accrued expenses 32,319
-----------
Total liabilities $ 90,746
-----------
NET ASSETS:
Paid-in capital $ 1,748,185
Accumulated undistributed net investment income 24,612
Accumulated net realized loss on investments and foreign
currency transactions (146,503)
Net unrealized gain on investments 149,457
Net unrealized loss on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (646)
-----------
Total net assets $ 1,775,105
-----------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $913,559/105,203 shares) $ 8.68
-----------
Class B (based on $457,490/53,099 shares) $ 8.62
-----------
Class C (based on $404,056/46,518 shares) $ 8.69
-----------
MAXIMUM OFFERING PRICE:
Class A ($8.68 [divided by] 94.25%) $ 9.21
-----------
Class C ($8.69 [divided by] 99.00%) $ 8.78
-----------
The accompanying notes are an integral part of these financial statements. 15
Pioneer Europe Select Fund
================================================================================
STATEMENT OF OPERATIONS
================================================================================
For the Year Ended 8/31/03
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $5,217) $ 35,125
Interest 430
---------
Total investment income $ 35,555
--------
EXPENSES:
Management fees $ 13,238
Transfer agent fees
Class A 6,462
Class B 4,156
Class C 1,945
Distribution fees
Class A 1,742
Class B 3,425
Class C 2,841
Administrative fees 37,661
Custodian fees 42,714
Registration fees 56,194
Professional fees 24,794
Printing 12,050
Fees and expenses of nonaffiliated trustees 8,505
Miscellaneous 5,669
---------
Total expenses $221,396
--------
Less management fees waived and expenses reim-
bursed by Pioneer Investment Management, Inc. (194,146)
--------
Net expenses $ 27,250
--------
Net investment income $ 8,305
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ (53,676)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 16,689 $(36,987)
--------- --------
Change in net unrealized gain (loss) from:
Investments $ 177,048
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (799) $176,249
--------- --------
Net gain on investments and foreign currency transactions $139,262
--------
Net increase in net assets resulting from operations $147,567
--------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Fund
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
For the Years Ended 8/31/03 and 8/31/02, respectively
Year Year
Ended Ended
8/31/03 8/31/02
FROM OPERATIONS:
Net investment income (loss) $ 8,305 $ (862)
Net realized loss on investments and foreign currency
transactions (36,987) (27,510)
Change in net unrealized gain (loss) on investments and
foreign currency transactions 176,249 3,562
----------- -----------
Net increase (decrease) in net assets resulting
from operations $ 147,567 $ (24,810)
----------- -----------
DISTRIBUTIONS TO SHAREOWNERS
Net investment income:
Class A ($0.00 and $0.10 per share, respectively) $ -- $ (3,031)
----------- -----------
Total distributions to shareowners $ -- $ (3,031)
----------- -----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 1,275,823 $ 892,428
Reinvestment of distributions -- 2,039
Cost of shares repurchased (710,875) (332,946)
----------- -----------
Net increase in net assets resulting from fund share
transactions $ 564,948 $ 561,521
----------- -----------
Net increase in net assets $ 712,515 $ 533,680
NET ASSETS:
Beginning of year 1,062,590 528,910
----------- -----------
End of year (including accumulated undistributed net
investment income (loss) of $24,612 and ($382),
respectively) $ 1,775,105 $ 1,062,590
----------- -----------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Europe Select Fund
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS (continued)
================================================================================
For the Years Ended 8/31/03 and 8/31/02, respectively
'03 Shares '03 Amount '02 Shares '02 Amount
CLASS A
Shares sold 103,178 $ 816,563 56,171 $ 459,354
Reinvestment of distributions -- -- 251 2,039
Less shares repurchased (69,582) (551,452) (17,477) (140,779)
--------- --------- --------- ---------
Net increase 33,596 $ 265,111 38,945 $ 320,614
--------- --------- --------- ---------
CLASS B
Shares sold 27,825 $ 225,223 24,177 $ 197,694
Less shares repurchased (11,896) (91,084) (6,456) (54,062)
--------- --------- --------- ---------
Net increase 15,929 $ 134,139 17,721 $ 143,632
--------- --------- --------- ---------
CLASS C
Shares sold 30,317 $ 234,037 29,595 $ 235,380
Less shares repurchased (8,980) (68,339) (17,268) (138,105)
--------- --------- --------- ---------
Net increase 21,337 $ 165,698 12,327 $ 97,275
--------- --------- --------- ---------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Fund
================================================================================
FINANCIAL HIGHLIGHTS 8/31/03
================================================================================
Year Year 12/29/00
Ended Ended to
8/31/03 8/31/02 8/31/01
CLASS A (a)
Net asset value, beginning of period $ 7.91 $ 8.15 $ 10.00
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.07 $ 0.04 $ 0.05
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.70 (0.18) (1.90)
------- ------- -------
Net increase (decrease) from investment
operations $ 0.77 $ (0.14) $ (1.85)
Distributions to shareowners:
Net investment income -- (0.10) --
------- ------- -------
Net increase (decrease) in net asset value $ 0.77 $ (0.24) $ (1.85)
------- ------- -------
Net asset value, end of period $ 8.68 $ 7.91 $ 8.15
------- ------- -------
Total return* 9.73% (1.76)% (18.50)%
Ratio of net expenses to average net assets+ 1.62% 1.75% 1.76%**
Ratio of net investment income to average
net assets+ 1.02% 0.17% 0.92%**
Portfolio turnover rate 67% 68% 135%**
Net assets, end of period (in thousands) $ 914 $ 567 $ 266
Ratios with no waiver of management fees and
assumption of expenses by PIM and no
reduction for fees paid indirectly:
Total expenses 16.15% 31.21% 39.42%**
Net investment loss (13.51)% (29.29)% (36.74)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 1.62% 1.75% 1.75%**
Net investment income 1.02% 0.17% 0.93%**
(a) Class A shares were first publicly offered on January 2, 2001.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 19
Pioneer Europe Select Fund
================================================================================
FINANCIAL HIGHLIGHTS 8/31/03 (continued)
================================================================================
Year Year 12/29/00
Ended Ended to
8/31/03 8/31/02 8/31/01
CLASS B (a)
Net asset value, beginning of period $ 7.94 $ 8.13 $ 10.00
------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ (0.05) $ 0.02
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.69 (0.14) (1.89)
------- ------- -------
Net increase (decrease) in net asset value $ 0.68 $ (0.19) $ (1.87)
------- ------- -------
Net asset value, end of period $ 8.62 $ 7.94 $ 8.13
------- ------- -------
Total return* 8.57% (2.34)% (18.70)%
Ratio of net expenses to average net assets+ 2.78% 2.33% 2.34%**
Ratio of net investment income (loss) to average
net assets+ (0.10)% (0.52)% 0.29%**
Portfolio turnover rate 67% 68% 135%**
Net assets, end of period (in thousands) $ 457 $ 295 $ 158
Ratios with no waiver of management fees and
assumption of expenses by PIM and no
reduction for fees paid indirectly:
Total expenses 17.41% 31.81% 40.08%**
Net investment loss (14.73)% (30.00)% (37.45)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 2.78% 2.33% 2.33%**
Net investment income (loss) (0.10)% (0.52)% 0.30%**
(a) Class B shares were first publicly offered on January 2, 2001.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
20 The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Fund
================================================================================
================================================================================
Year Year 12/29/00
Ended Ended to
8/31/03 8/31/02 8/31/01
CLASS C (a)
Net asset value, beginning of period $ 7.96 $ 8.14 $ 10.00
------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.03 $ (0.04) $ 0.02
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.70 (0.14) (1.88)
------- ------- -------
Net increase (decrease) in net asset value $ 0.73 $ (0.18) $ (1.86)
------- ------- -------
Net asset value, end of period $ 8.69 $ 7.96 $ 8.14
------- ------- -------
Total return* 9.17% (2.21)% (18.60)%
Ratio of net expenses to average net assets+ 2.27% 2.22% 2.08%**
Ratio of net investment income (loss) to average
net assets+ 0.54% (0.35)% 0.45%**
Portfolio turnover rate 67% 68% 135%**
Net assets, end of period (in thousands) $ 404 $ 201 $ 105
Ratios with no waiver of management fees and
assumption of expenses by PIM and no
reduction for fees paid indirectly:
Total expenses 17.02% 31.70% 40.11%**
Net investment loss (14.21)% (29.83)% (37.58)%**
Ratios with waiver of management fees and
assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 2.27% 2.22% 2.07%**
Net investment income (loss) 0.54% (0.35)% 0.46%**
(a) Class C shares were first publicly offered on January 2, 2001.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 21
Pioneer Europe Select Fund
================================================================================
NOTES TO FINANCIAL STATEMENTS 8/31/03
================================================================================
1. Organization and Significant Accounting Policies
Pioneer Europe Select Fund (the Fund) is a Delaware business trust registered
under the Investment Company Act of 1940 as a non-diversified, open-end
management investment company. The Fund was organized on August 25, 2000 and
commenced operations on December 29, 2000. Prior to December 29, 2000, 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
investment objective of the Fund is to seek capital growth by investing
primarily in European equity securities.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
Fund shares were first publicly offered on January 2, 2001. Shares of Class A,
Class B and Class C each represent an interest in the same portfolio of
investments of the Fund and have 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.
The Fund's financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America that require the
management of the Fund to, among other things, make estimates and assumptions
that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of income, expenses, gains and losses on investments during
the reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies, consistently followed
by the Fund, which are in conformity with those generally accepted in the
investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value is
computed once daily, on each day the New York Stock Exchange is open, as of
the close of regular trading on the Exchange. In computing the net asset
value, securities are valued at the last sale price on the principal exchange
where they are traded. Securities that have not traded on the date of
valuation, or
22
Pioneer Europe Select Fund
================================================================================
================================================================================
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 in good faith by, or under the direction of, the Board of
Trustees. Trading in foreign securities is substantially completed each day
at various times prior to the close of the New York Stock Exchange. The
values of such securities used in computing the net asset value of the Fund's
shares are generally determined as of such times. Dividend income is recorded
on the ex-dividend date, except that certain dividends where the ex-dividend
date may have passed are recorded as soon as the Fund becomes aware of the
ex-dividend data in the exercise of reasonable diligence. Interest income,
including interest on income bearing cash accounts, is recorded on the
accrual basis. Dividend and interest income are reported net of unrecoverable
foreign taxes withheld at the applicable country rates. Temporary cash
investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
Investing in the securities of European issuers involves unique risks
compared to investing in securities of U.S. issuers. These risks are more
pronounced to the extent that the Fund invests a significant portion of its
investments in one European region. 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.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency translations 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
23
Pioneer Europe Select Fund
================================================================================
NOTES TO FINANCIAL STATEMENTS 8/31/03 (continued)
================================================================================
currency exchange rates on investments are not segregated in the statement of
operations from the effects of changes in market prices of those securities
but are included with the net realized and unrealized gain or loss on
investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates and
any resulting unrealized gains or 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, 2003, the Fund had no outstanding portfolio hedges. The Fund's
gross forward currency settlement contracts payable and receivable were
$3,930 and $3,784, respectively, resulting in a net payable of $146.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investments 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 characterization of distributions to shareowners for financial reporting
purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as 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 Europe Select Fund
================================================================================
================================================================================
For the year ending August 31, 2003, the Fund reclassified $16,689 to
increase accumulated net realized loss on investments and foreign currency
transactions and $16,689 to increase accumulated undistributed net investment
income. The reclassification has no impact on the net assets of the Fund and
presents the Fund's capital accounts on a tax basis.
The tax character of distributions during the years ended August 31, 2003 and
2002 were as follows:
- ---------------------------------------------
2003 2002
- ---------------------------------------------
Distributions paid from:
Ordinary income $ - $3,031
Long-term capital gain - -
--- ------
Total $ - $3,031
--- ------
- ---------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2003.
- --------------------------------------------
2003
- --------------------------------------------
Undistributed ordinary income $24,466
Unrealized appreciation 134,025
Capital loss carryforward (86,278)
-------
Total $72,213
-------
- --------------------------------------------
The difference between book-basis and tax-basis unrealized appre ciation is
attributable to the tax deferral of losses on wash sales.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. PFD,
the principal underwriter for the Fund and a wholly owned indirect subsidiary
of UniCredito Italiano S.p.A. (UniCredito Italiano), earned $853 in
underwriting commissions on the sale of Fund shares during the year ended
August 31, 2003.
F. Class Allocations and Distributions
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Shareowners of each class share all expenses and fees paid to
the transfer agent, Pioneer Investment
25
Pioneer Europe Select Fund
================================================================================
NOTES TO FINANCIAL STATEMENTS 8/31/03 (continued)
================================================================================
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 their
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, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser,
manages the Fund's portfolio, and is a wholly owned indirect subsidiary of
UniCredito Italiano. Management fees are calculated daily at the annual rate of
1.00% of the Fund's average daily net assets up to $300 million; 0.85% of the
next $200 million; and 0.75% of the excess over $500 million.
PIM has agreed not to impose all or portion of its management fee and to assume
other operating expenses of the Fund to the extent necessary to limit Class A
expenses to 1.75% of the average daily net assets attributable to Class A
shares. Effective June 16, 2003, PIM has further 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. This additional waiver/subsidy is
voluntary and may be revised or terminated at any time by PIM. The portion of
the Fund-wide expenses attributable to Class B and Class C shares will be
reduced only to the extent that such expenses are reduced for Class A 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, 2003 $3,133 was payable to PIM
related to management fees, administrative fees and certain other services and
is included in due to affiliates.
26
Pioneer Europe Select Fund
================================================================================
================================================================================
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 $2,129 in transfer agent fees
payable to PIMSS at August 31, 2003.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B 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 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 $810 in
distribution fees payable to PFD at August 31, 2003.
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 one year of purchase.
Class B shares that are redeemed within six years of purchase are subject to a
CDSC at declining rates beginning at 4.00%, based on the lower of cost or market
value of shares being redeemed. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to
PFD. For the year ended August 31, 2003, CDSCs in the amount of $139 were paid
to PFD.
5. Directed Brokerage and Expense Offsets
The Fund has entered into certain directed brokerage and expense offset
arrangements which may result in a reduction in the Fund's total expenses. For
the year ended August 31, 2003, the Fund's expenses were not reduced under such
arrangements.
27
Pioneer Europe Select Fund
================================================================================
REPORT OF INDEPENDENT AUDITORS
================================================================================
To the Board of Trustees and Shareowners
of Pioneer Europe Select Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Europe Select Fund (the "Fund") as of
August 31, 2003, 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 two years in the
period then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit. The financial highlights for the period ended August 31, 2001 were
audited by other auditors who have ceased operations and whose report, dated
October 5, 2001, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with auditing standards generally accepted
in the 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. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of August 31, 2003, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. 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 Europe Select Fund at August 31, 2003, 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 two years in
the period then ended in conformity with accounting principles generally
accepted in the United States.
/s/ ERNST & YOUNG LLP
Boston, Massachusetts
October 6, 2003
28
Pioneer Europe Select Fund
================================================================================
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
================================================================================
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Auditors
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr 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 Investment Company Act of 1940 are referred
to as Interested Trustees. Trustees who are not interested persons of the Fund
are referred to as Independent Trustees. Each of the Trustees serves as a
trustee of each of the 50 U.S. registered investment portfolios for which
Pioneer Investment Management, Inc. ("PIM") serves as investment adviser (the
"Pioneer Funds"). The address for all Interested Trustees and all officers of
the Fund is 60 State Street, Boston, Massachusetts 02109.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request, without
charge, by calling 1-800-225-6292.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). This information
is also available at pioneerfunds.com.
29
================================================================================
INTERESTED TRUSTEES
================================================================================
Name and Age Position Held With the Fund Term of Office/Length of Serivce
John F. Cogan, Jr. (77)* Chairman of the Board, Trustee since September, 2000.
Trustee and President Serves until retirement or removal.
*Mr. Cogan is an Interested Trustee because he is an officer or director of the
Trust's investment adviser and certain of its affiliates.
- --------------------------------------------------------------------------------------------
Osbert Hood (51)** Trustee and Trustee since June, 2003.
Executive Vice President Serves until retirement or removal.
**Mr. Hood was elected Trustee and Executive Vice President on June 3, 2003. He
is an Interested Trustee because he is an officer or director of the Fund's
investment adviser and certain of its affiliates.
================================================================================
INDEPENDENT TRUSTEES
================================================================================
Name, Age and Address Position Held With the Fund Term of Office/Length of Service
Mary K. Bush (55) Trustee Trustee since September, 2000.
3509 Woodbine Street, Serves until retirement or removal.
Chevy Chase, MD 20815
- ------------------------------------------------------------------------------------------------
Richard H. Egdahl, M.D. (76) Trustee Trustee since September, 2000.
Boston University Healthcare Serves until retirement or removal.
Entrepreneurship Program,
53 Bay State Road,
Boston, MA 02215
- ------------------------------------------------------------------------------------------------
30
======================================================================================================
======================================================================================================
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
Deputy Chairman and a Director of Pioneer Global Asset Director of Harbor Global Company,
Management S.p.A. ("PGAM"); Non-Executive Chairman Ltd.
and a Director of Pioneer Investment Management USA
Inc. ("PIM-USA"); Chairman and a Director of Pioneer;
President and a Director of Pioneer Alternative Investment
Management (Bermuda) Limited, Pioneer Alternative
Investment Management Limited (Dublin) and affiliated
funds; President and a Director of Pioneer Funds
Distributor, Inc. ("PFD"); President of all of the Pioneer
Funds; and Of Counsel (since 2000, partner prior to
2000), Hale and Dorr LLP (counsel to PIM-USA and the
Pioneer Funds)
- ------------------------------------------------------------------------------------------------------
President and Chief Executive Officer, PIM-USA since May, None
2003 (Director since January, 2001); President and
Director of Pioneer since May, 2003; Chairman and
Director of Pioneer Investment Management Shareholder
Services, Inc. "PIMSS" since May, 2003; Executive Vice
President of all of the Pioneer Funds since June, 2003;
Executive Vice President and Chief Operating Officer of
PIM-USA, November 2000-May 2003; Executive Vice
President, Chief Financial Officer and Treasurer, John
Hancock Advisers, LLC, Boston, MA, November
1999-November 2000; Senior Vice President and Chief
Financial Officer, John Hancock Advisers, LLC, April
1997-November 1999
======================================================================================================
======================================================================================================
Principal Occupation During Past Five Years Other Directorships Held by this Trustee
President, Bush International (international financial Director and/or Trustee of Brady
advisory firm) Corporation (industrial identification
and specialty coated material products
manufacturer), Mortgage Guaranty
Insurance Corporation, R.J. Reynolds
Tobacco Holdings, Inc. (tobacco) and
Student Loan Marketing Association
(secondary marketing of student loans)
- ------------------------------------------------------------------------------------------------------
Alexander Graham Bell Professor of Health Care None
Entrepreneurship, Boston University; Professor
of Management, Boston University School of
Management; Professor of Public Health, Boston
University School of Public Health; Professor of Surgery,
Boston University School of Medicine; and University
Professor, Boston University
- ------------------------------------------------------------------------------------------------------
31
=================================================================================================
INDEPENDENT TRUSTEES
=================================================================================================
Name, Age and Address Position Held With the Fund Term of Office/Length of Service
Margaret B.W. Graham (56) Trustee Trustee since September, 2000.
1001 Sherbrooke Street West, Serves until retirement or removal.
Montreal, Quebec, Canada
- -------------------------------------------------------------------------------------------------
Marguerite A. Piret (55) Trustee Trustee since September, 2000.
One Boston Place, 28th Floor, Serves until retirement or removal.
Boston, MA 02108
- -------------------------------------------------------------------------------------------------
Stephen K. West (75) Trustee Trustee since September, 2000.
125 Broad Street, Serves until retirement or removal.
New York, NY 10004
- -------------------------------------------------------------------------------------------------
John Winthrop (67) Trustee Trustee since September, 2000.
One North Adgers Wharf, Serves until retirement or removal.
Charleston, SC 29401
===================================================================================================
FUND OFFICERS
===================================================================================================
Name and Age Position Held With the Fund Term of Office/Length of Service
Dorothy E. Bourassa (55) Secretary Since September, 2003.
Serves at the discretion of Board.
- -------------------------------------------------------------------------------------------------
David C. Phelan (46) Assistant Secretary Since September 2003
Serves at the discretion of the Board.
- -------------------------------------------------------------------------------------------------
Christopher J. Kelly (38) Assistant Secretary Since September 2003
Serves at the discretion of the Board.
- -------------------------------------------------------------------------------------------------
Vincent Nave (58) Treasurer Since November, 2000.
Serves at the discretion of Board.
- -------------------------------------------------------------------------------------------------
Luis I. Presutti (38) Assistant Treasurer Since November, 2000.
Serves at the discretion of Board.
- -------------------------------------------------------------------------------------------------
Gary Sullivan (45) Assistant Treasurer Since May, 2002.
Serves at the discretion of Board.
- -------------------------------------------------------------------------------------------------
32
===========================================================================================
===========================================================================================
Principal Occupation During Past Five Years Other Directorships Held by this
Trustee
Founding Director, The Winthrop Group, Inc. (consulting None
firm); Professor of Management, Faculty of Management,
McGill University
- -------------------------------------------------------------------------------------------
President and Chief Executive Officer, Newbury, Piret & None
Company, Inc. (investment banking firm)
- -------------------------------------------------------------------------------------------
Senior Counsel, Sullivan & Cromwell (law firm) Director, The Swiss Helvetia
Fund, Inc. (closed-end investment
company) and AMVESCAP PLC
(investment managers)
- -------------------------------------------------------------------------------------------
President, John Winthrop & Co., Inc. None
(private investment firm)
=================================================================================================
=================================================================================================
Principal Occupation During Past Five Years Other Directorships Held by this
Trustee
Secretary of PIM-USA: Senior Vice President-Legal of None
Pioneer; and Secretary/Clerk of most of PIM-USA's
subsidiaries since October 2000; Assistant Secretary from
November 2000 to September 2003; Secretary of all of the
Pioneer Funds since September 2003; and Senior Counsel,
Assistant Vice President and Director of Compliance of PIM-
USA from April 1998 through October 2000
- -------------------------------------------------------------------------------------------------
Partner, Hale and Dorr LLP. Assistant Secretary of all of
Pioneer Funds since September 2003
- -------------------------------------------------------------------------------------------------
Assistant Vice President and Senior Counsel of Pioneer
since July 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; Vice President and
Associate General Counsel from July 1996 to July 2000);
Assistant Secretary of all the Pioneer Funds since
September 2003
- -------------------------------------------------------------------------------------------------
Vice President-Fund Accounting, Administration and Custody None
Services of Pioneer (Manager from September 1996 to
February 1999); and Treasurer of all of the Pioneer Funds
(Assistant Treasurer from June 1999 to November 2000)
- -------------------------------------------------------------------------------------------------
Assistant Vice President-Fund Accounting, Administration None
and Custody Services of Pioneer (Fund Accounting Manager
from 1994 to 1999); and Assistant Treasurer of all of the
Pioneer Funds since November 2000
- -------------------------------------------------------------------------------------------------
Fund Accounting Manager-Fund Accounting, Administration None
and Custody Services of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds since May 2002
- -------------------------------------------------------------------------------------------------
33
===============================================================================================
FUND OFFICERS
===============================================================================================
Name and Age Position Held With the Fund Term of Office/Length of Service
Katherine Kim Sullivan (29) Assistant Treasurer Since September, 2003.
Serves at the discretion of Board.
- -----------------------------------------------------------------------------------------------
34
===========================================================================================
Principal Occupation During Past Five Years Other Directorships Held by this
Officer
===========================================================================================
Fund Administration Manager - Fund Accounting, None
Administration and Custody Services since June 2003;
Assistant Vice President - Mutual Fund Operations of
State Street Corporation from June 2002 to June 2003
(formerly Deustche Bank Asset Management); Pioneer
Fund Accounting, Administration and Custody Services
(Fund Accounting Manager from August 1999 to May 2002,
Fund Accounting Supervisor from 1997 to July 1999);
Assistant Treasurer of all of the Pioneer Funds since
September 2003.
- -------------------------------------------------------------------------------------------
35
================================================================================
RETIREMENT PLANS FROM PIONEER
================================================================================
Pioneer has a long history of helping people work toward their retirement goals,
offering plans suited to the individual investor and businesses of all sizes.
For more information on Pioneer retirement plans, contact your investment
professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Accounts (IRAs)
Traditional IRA*
For anyone under age 701/2 earning income. Individuals can contribute up to
$3,000 annually. Earnings are tax-deferred, and contributions may be
tax-deductible.
Roth IRA*
Available to single individuals earning less than $110,000 in income annually,
and married couples with joint income less than $160,000. Contributions of up to
$3,000 a year are not tax-deductible, but all earnings are tax-free for
qualified withdrawals. Distributions are tax and penalty-free if certain
conditions are met.
Employer-Sponsored Plans
Uni-K Plan*
A 401(k) plan designed specifically for any business that employs only owners
and their spouses. Participants can make salary deferral contributions up to
$11,000 per year. In addition, each year the business may contribute up to 25%
of pay.
401(k) Plan*
Allows employees to make pre-tax contributions through payroll deduction, up to
$11,000 per year. Employers' contributions are discretionary. The 401(k) offers
companies maximum flexibility.
SIMPLE IRA Plan*
The Savings Incentive Match PLan for Employees (SIMPLE) is designed for
employers with 100 or fewer eligible employees. Employees can decide whether to
contribute. Employers must contribute.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
36
================================================================================
================================================================================
403(b) Plan*
Also known as a Tax-Sheltered Account (TSA), this plan lets employees of public
schools, non-profit hospitals and other tax-exempt organizations make pre-tax
contributions through payroll deduction.
SEP-IRA
The Simplified Employee Pension (SEP) plan lets self-employed people and
small-business owners make tax-deductible contributions of up to 25% of income,
while maintaining complete contribution flexibility each year.
Profit Sharing Plan
Companies can decide each year whether - and how much - to contribute to
participants, up to 25% of each participant's pay. Can include vesting schedules
that are not available with a SEP-IRA.
Age-Based Profit Sharing Plan
Employer contributions are flexible, but are based on a formula using age and
salary. Each year, a business can contribute up to 25% of the total eligible
payroll.
Money Purchase Pension Plan (MPP)
Allows employer contributions, up to 25% of pay annually. Companies must
contribute a fixed percentage of pay each year.
Defined Benefit Pension Plan
Requires a business to contribute enough each year to fund a specific future
benefit. Most beneficial to older employees who need to accumulate assets
rapidly.
* Special Catch-Up Provisions are available to individuals age 50 and older to
contribute additional amounts to their retirement accounts. For more
information, call our Retirement Plans Information line at 1-800-622-0176.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
37
================================================================================
HOW TO CONTACT PIONEER
================================================================================
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our Internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus.
[LOGO] PIONEER
Investment(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, Massachusetts 02109
www.pioneerfunds.com
14207-00-1003
(C) 2003 Pioneer Funds Distributor, Inc.
Underwriter of Pioneer mutual funds, Member SIPC
C Printed on Recycled Paper
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.
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.
(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.
(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.
(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.
(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.
(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.
(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.
(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.
(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.
Not applicable; to be answered on annual submissions after December 15, 2003.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation of
these controls and procedures as of a date within 90 days prior to the filing
date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or in
other factors that could significantly affect these controls subsequent to the
date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
Filed herewith.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Europe Select FUnd
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date October 31, 2003
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 31, 2003
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date October 31, 2003
* Print the name and title of each signing officer under his or her signature.