Exhibit (17)(h)
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PIONEER
-------
FUND
PIODX
Ticker Symbol
Annual
Report
12/31/07
[LOGO] PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 27
Notes to Financial Statements 37
Report of Independent Registered Public Accounting Firm 45
Approval of Investment Advisory Agreement 46
Trustees, Officers and Service Providers 50
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 in the second half of 2007, when an otherwise
healthy long-term bull market was buffeted by problems in the financial
services industry and the emergence of worries about a slowing economy.
After an extended period of steady growth with sustained low unemployment and
low inflation, the U.S. economy ran into difficulty as 2007 drew to a close.
Problems in the financial system tied to poor practices in the mortgage
financing industry and the end of home price appreciation forced investors and
bankers to mark down the value of assets on their balance sheets by over one
hundred billion dollars. A late-summer credit crunch forced central banks in
the United States and Europe to act in the role of "lender of last resort" to
keep credit markets functioning. As the repercussions of the credit crunch and
falling home prices were felt in the real economy, unemployment rose and
consumer confidence fell. Inflation concerns moved to the back burner for the
Federal Reserve, which lowered interest rates, first gradually, then more
rapidly, as concern grew that falling home prices and disruptions in financial
markets posed a significant threat to economic growth.
Even against this "wall of worry" backdrop, the performance of major asset
classes in 2007 was generally positive. Despite several interim setbacks and
poor performance near year-end, the Standard & Poor's 500 Index increased 5% in
2007, the Dow Jones Industrial Average increased 9%, and the NASDAQ Composite
Index increased 10%. International developed and emerging markets equities
performed even better, reflecting both a weakening U.S. dollar, which boosts
returns for U.S. dollar-based investors, and solid local currency returns. The
MSCI EAFE Developed Market Index rose 12%, and the MSCI Emerging Markets Index
rose 40% over the same period. The U.S. bond market, as measured by the Lehman
Aggregate Bond Index, rose 7%, while the U.S. high-yield bond market, as
measured by the Merrill Lynch High Yield Bond Master II Index, rose 2%, as
higher-coupon yields could not compensate for falling bond prices as credit
spreads (differences between yields of higher- and lower-quality bonds) widened
during the second half of 2007.
2
Letter
Looking forward, a growing number of economists are concerned about a recession.
As always, though, emotions can get ahead of reality. Higher mortgage defaults,
a spreading of weakness to other consumer sectors or to employment, and the
possibility of a liquidity/ credit crunch represent risks to the economy.
Conversely, economic growth in the rest of the world remains relatively
positive, and a weak U.S. dollar has significantly benefited U.S. companies
competing in the global marketplace. While falling risk tolerances may continue
to depress asset prices in the short term, equity and corporate bond valuations
look reasonable unless the U.S. economy falls into a severe recession.
Sudden swings in the markets are always to be expected. The history of the
stock market demonstrates that sharp market downturns are frequently followed
by strong recoveries, but they are also difficult to time. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage you to
work closely with your financial advisor to find the mix of stocks, bonds and
money market assets that is best 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 Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/07
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In the following interview, John Carey, portfolio manager of the Pioneer Fund,
discusses the factors that influenced performance during the 12-month period
ended December 31, 2007.
Q: The last few months of the year were fraught with concerns about sub-prime
mortgages and the weakening U. S. dollar. How did the Fund navigate its
way through those storms and end the year?
A: Pioneer Fund showed a total return at net asset value of 4.71% on the Class
A shares for the year ended December 31, 2007. By comparison, the Fund's
benchmark, the Standard & Poor's 500 (the S&P 500), an unmanaged index of
the general stock market, rose by 5.49% over the same period, and the
average return of the 835 funds in the Lipper Analytical Services
large-cap core category was 5.73%.
Our underperformance for the year was due to a shortfall in the second
half, which saw a return of -3.07% at net asset value for Pioneer Fund
Class A shares, compared with returns of -1.28% for the S&P 500 and -1.13%
for the average large-cap core fund in the Lipper universe. The second
half was a rocky period for the markets after the positive first half. The
main reason for the turnaround in market performance appeared to be the
credit crisis that intensified over the summer months and was precipitated
by a fall in house prices. As news emerged about the exposures of many
financial institutions to "sub-prime" mortgage debt and the complicated
financial instruments based on mortgages, investors became concerned, and
many stocks fell sharply.
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.
As we write, the turmoil that started in the U. S. housing and financial
sectors has spread into other areas of our economy and also to other
countries. As investors lose confidence in the kinds
4
Pioneer Fund
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of "structured finance" products and "securitized loan" packages that
facilitated so much of the growth in credit availability over the past few
years, they may adopt very different strategies in the years ahead, with
uncertain consequences for the economy. Some commentators even suggest that
we are just at the beginning of what could be a protracted period of
difficulty for the financial markets. Nonetheless, we believe that our
patient, research-driven approach continues to make sense with respect to
the long-term outlook. We also think that there may be some potentially
quite compelling investment opportunities over the coming months as anxious
investors sell many shares quite indiscriminately.
Q: Please discuss performance in the second half in more detail, specifically
which holdings had the greatest positive and negative effects on
performance relative to the benchmark S&P 500 Index.
A: Investors responded to the market turmoil in the second half of the year in
a variety of ways. Some investors gravitated toward "growth" stocks - that
is, companies perceived to have better-than-average chances of achieving
higher earnings in the future. Other investors, alarmed by the possibility
of inflation, bought gold-mining and other natural-resources stocks. Still
others took refuge in consumer-staples and utilities stocks. The cross
currents during the widespread portfolio re-positioning created challenging
conditions for many of our investments.
Overall, the Fund underperformed the S&P 500 by somewhat less than 2% in
the six months ended December 31. Contributing to the underperformance were
the Fund's underweight in the top-performing energy sector, its overweight
and our weak stock selection in the poorly-performing consumer
discretionary sector, and our lack of investment in several of the leading
performers in the consumer-staples and information-technology sectors.
McGraw-Hill, its Standard & Poor's business hit hard by the slowdown in
issuance of new debt requiring its ratings, was the principal culprit in
consumer discretionary. In addition, our not owning the exemplary
performers Procter & Gamble in consumer staples and Apple and Google in
information technology also held the Fund's returns back relative to the
index.
5
Pioneer Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/07 (continued)
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On the positive side, we were correctly quite underweight in the dismal
financials sector, and we had some very strong individual stock performers
in the industrials and materials sectors: Deere in industrials, and Rio
Tinto in materials. The former benefited from increased demand for farm
equipment in the robust agricultural industry, and the latter was the
recipient of a take-over bid from one of its big competitors in mining,
BHP Billiton.
Q: What changes did you make to the portfolio in the last six months of the
period?
A: The Fund initiated seven positions and eliminated eleven during the last
six months of the period. Recognizing the difficulty of issues facing
some of our companies, we used the opportunities presented by overall
stock-market weakness to "upgrade" the portfolio. In other instances, we
took profits as some stocks approached the target prices we had set for
them. New purchases included several new names in the mining industry:
Freeport McMoRan Copper & Gold, Teck Cominco, and Xstrata. While the
focus of Freeport is revealed in its name, Teck Cominco and Xstrata are
both quite diversified in the metals they produce. All three have, we
believe, good long-term opportunities to expand their production and
profits. Canadian National Railway is also a commodities "play": it
transports forest products, grain, coal, and fertilizers in its modern
fleet of locomotives and railcars. Despite its name, Coach is not a
railcar, but rather a designer, producer, and marketer of fine-quality,
premium-priced leather goods. The Fund took advantage of a depressed
stock price to pick up shares of that very successful company. Finally,
we added shares of Corning, the manufacturer of fiberoptic cable and
liquid-crystal display glass; and we received shares of Banco Bilbao
Vizcaya Argentaria, or BBVA, in exchange for our shares of Compass
Bancshares as a result of a merger between the two companies.
On the other side of the ledger, the Fund not only lost Compass Bancshares
to a merger, but we also sold ALLTEL and Biomet in acquisition deals. In
the cases of all of the other liquidations - Pioneer Natural Resources (no
relation to Pioneer Investments!), Novartis, First Horizon National,
Washington Mutual, Bank of America, Federated Investors, Merrill-Lynch,
and State Street - we either felt the share prices reflected reasonably
full value or we thought your money could be better invested elsewhere.
6
Pioneer Fund
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Q: With all the uneasiness in the markets since the middle of summer, what is
your outlook for large-cap core stocks in the year ahead?
A: It seems appropriate to be cautious at the moment, in light of the state of
our economy and the diminished earnings prospects for numerous companies.
Whereas few economists were predicting recession as recently as a few
months ago, some now are; and whereas a so-called "soft landing" was the
most common prediction a year ago, more prevalent today is concern over a
rather sharper kind of drop. As always, we shall do our best to protect
the portfolio against the worst ravages of the market by staying
diversified across industries and focusing on companies we think have
good balance sheets and prospects for earnings growth. Our commitment for
the portfolio is always to be substantially fully invested, since we
never know when the market might resume an upward trajectory, but we aim
to moderate risk by doing our own research and developing what we believe
is a good understanding of the companies whose securities we purchase.
February 13, 2008, is Pioneer Fund's 80th birthday. It has been quite an
exciting life so far! Through everything the managers of the Fund have
always endeavored to remember that our first duty is to you, the
shareholders of the Fund, who have entrusted your hard-earned money to our
care. We hope in the years ahead to continue to enjoy, and merit, your
support.
Thank you as ever for your faithful support.
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.
7
Pioneer Fund
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PORTFOLIO SUMMARY 12/31/07
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 88.2%
Depositary Receipts for International Stocks 4.4%
Temporary Cash Investments 4.1%
International Common Stocks 3.3%
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]
Industrials 17.0%
Information Technology 15.9%
Consumer Staples 12.5%
Consumer Discretionary 12.4%
Health Care 12.3%
Financials 10.3%
Energy 7.6%
Materials 7.4%
Telecommunication Services 3.5%
Utilities 1.1%
10 Largest Holdings
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(as a percentage of equity holdings)*
1. Chevron Corp. 3.23%
2. AT&T Corp. 2.76
3. Deere & Co. 2.45
4. Rio Tinto Plc 2.26
5. PACCAR, Inc. 2.18
6. Norfolk Southern Corp. 2.05
7. Nokia Corp. (A.D.R.) 2.04
8. John Wiley & Sons, Inc. 2.00
9. Exxon Mobil Corp. 1.92
10. Johnson Controls, Inc. 1.86
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
8
Pioneer Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 12/31/07 12/31/06
----- -------- --------
A $46.32 $48.10
B $45.11 $46.98
C $44.55 $46.44
R $46.37 $48.16
Y $46.45 $48.23
Class 12/31/07 4/30/07
- ------- ---------- --------
Z $46.41 $50.61
Distributions Per Share
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1/1/07 - 12/31/07
-----------------
Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- -------------
A $0.4083 $ - $3.5716
B $ - $ - $3.5716
C $0.0565 $ - $3.5716
R $0.3474 $ - $3.5716
Y $0.6077 $ - $3.5716
4/30/07* - 12/31/07
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Net Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ------ ------------- -------------
Z $0.4716 $ - $3.5716
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INDEX DEFINITIONS
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The Standard & Poor's 500 (S&P) Index is a commonly used measure of the broad
U.S. stock market. 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 10-15.
* Class Z shares were first publicly offered on April 30, 2007.
9
Pioneer Fund
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PERFORMANCE UPDATE 12/31/07 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 Fund at public offering price, compared to that of
the Standard & Poor's 500 Index.
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Average Annual Total Returns
(As of December 31, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
10 Years 6.67% 6.04%
5 Years 12.51 11.18
1 Year 4.71 -1.31
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Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
1.11% 1.11%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Standard & Poor's
Pioneer Fund 500 Index
------------ ----------------
12/97 $ 9,425 $ 10,000
12,167 12,860
12/99 14,058 15,565
14,075 14,148
12/01 12,508 12,468
9,974 9,713
12/03 12,426 12,498
13,871 13,857
12/05 14,758 14,537
17,176 16,831
12/07 17,984 17,755
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 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 Fund
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PERFORMANCE UPDATE 12/31/07 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 Fund, compared to that of the Standard & Poor's 500
Index.
- --------------------------------------------------------
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 5.74% 5.74%
5 Years 11.51 11.51
1 Year 3.76 -0.08
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Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
1.97% 1.97%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Standard & Poor's
Pioneer Fund 500 Index
------------ ----------------
12/97 $ 10,000 $ 10,000
12,791 12,860
12/99 14,652 15,565
14,541 14,148
12/01 12,815 12,468
10,129 9,713
12/03 12,503 12,498
13,838 13,857
12/05 14,584 14,537
16,835 16,831
12/07 17,468 17,755
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). Effective December 1, 2004, the period during which a CDSC is applied
to withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus
for details. Note: Shares purchased prior to December 1, 2004 remain subject to
the CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
11
Pioneer Fund
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PERFORMANCE UPDATE 12/31/07 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 Fund, compared to that of the Standard & Poor's 500
Index.
- -------------------------------------------------------
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 5.82% 5.82%
5 Years 11.63 11.63
1 Year 3.88 3.88
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Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
1.89% 1.89%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Standard & Poor's
Pioneer Fund 500 Index
------------ ----------------
12/97 $ 10,000 $ 10,000
12,793 12,860
12/99 14,662 15,565
14,556 14,148
12/01 12,833 12,468
10,154 9,713
12/03 12,548 12,498
13,896 13,857
12/05 14,667 14,537
16,944 16,831
12/07 17,601 17,755
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). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The 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 Fund
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PERFORMANCE UPDATE 12/31/07 CLASS R 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 Fund, compared to that of the Standard & Poor's 500
Index.
- -------------------------------------------------------
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 6.34% 6.34%
5 Years 12.38 12.38
1 Year 4.56 4.56
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Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
1.26% 1.26%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Standard & Poor's
Pioneer Fund 500 Index
------------ ----------------
12/97 $ 10,000 $ 10,000
12,844 12,860
12/99 14,767 15,565
14,710 14,148
12/01 13,008 12,468
10,320 9,713
12/03 12,836 12,498
14,323 13,857
12/05 15,222 14,537
17,692 16,831
12/07 18,497 17,755
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.
The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of
Class A shares, reduced to reflect the higher distribution and service fees of
Class R shares. For the period after April 1, 2003, the actual performance of
Class R shares is reflected. Class R shares are not subject to sales charges
and are available for limited groups of eligible investors, including
institutional investors. All results are historical and assume the reinvestment
of dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
13
Pioneer Fund
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PERFORMANCE UPDATE 12/31/07 CLASS Y SHARES
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Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Fund, compared to that of the Standard & Poor's 500
Index.
- -------------------------------------------------------
Average Annual Total Returns
(As of December 31, 2007)
If If
Period Held Redeemed
10 Years 7.06% 7.06%
5 Years 12.99 12.99
1 Year 5.11 5.11
- -------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
0.70% 0.70%
- -------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Standard & Poor's
Pioneer Fund 500 Index
------------ ----------------
12/97 $ 10,000 $ 10,000
12,909 12,860
12/99 14,953 15,565
15,027 14,148
12/01 13,412 12,468
10,740 9,713
12/03 13,440 12,498
15,072 13,857
12/05 16,102 14,537
18,819 16,831
12/07 19,780 17,755
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.
Performance for periods prior to the inception of Class Y shares reflects the
NAV performance of the Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class
Y shares, the performance shown for Class Y shares prior to their inception May
6, 1999 would have been higher. Class Y shares are not subject to sales charges
and are available for limited groups of eligible investors, including
institutional investors. All results are historical and assume the reinvestment
of dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
14
Pioneer Fund
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PERFORMANCE UPDATE 12/31/07 CLASS Z SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Fund, compared to that of the Standard & Poor's 500
Index.
- ---------------------------------------------------------------
Average Annual Total Returns
(As of December 31, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
10 Years 6.45% 6.45%
5 Years 12.32 12.32
1 Year 4.88 4.88
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
0.85% 0.85%
- ---------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Standard & Poor's
Pioneer Fund 500 Index
------------ ----------------
12/97 $ 10,000 $ 10,000
12,877 12,860
12/99 14,841 15,565
14,821 14,148
12/01 13,139 12,468
10,450 9,713
12/03 12,986 12,498
14,461 13,857
12/05 15,347 14,537
17,818 16,831
12/07 18,687 17,755
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.
Performance for periods prior to the inception of Class Z shares reflects the
NAV performance of the Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class
Z shares, the performance shown for Class Z shares prior to their inception
April 30, 2007 would have been higher. Class Z shares are not subject to sales
charges and are available for limited groups of eligible investors, including
institutional investors. All results are historical and assume the reinvestment
of dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through 5/1/10 for Class Z Shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
15
Pioneer 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 Fund
Based on actual returns from July 1, 2007 through December 31, 2007.
Share Class A B C R Y Z
- -----------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 7/1/07
Ending Account $ 969.36 $ 965.03 $ 965.79 $ 968.78 $ 971.35 $1,032.39
On 12/31/07
Expenses Paid $ 5.36 $ 9.76 $ 9.27 $ 6.10 $ 3.48 $ 3.59
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.08%, 1.97%,
1.87%, 1.23%, 0.70% and 0.70% for Class A, Class B, Class C, Class R, Class
Y and Class Z shares, respectively, multiplied by the average account value
over the period, multiplied by 184/365 (to reflect the one-half year
period).
16
Pioneer 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 Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from July 1, 2007 through December 31, 2007
Share Class A B C R Y Z
- -----------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 7/1/07
Ending Account $1,009.88 $1,007.64 $1,007.89 $1,009.50 $1,010.84 $1,010.84
On 12/31/07
Expenses Paid $ 5.50 $ 10.01 $ 9.50 $ 6.26 $ 3.57 $ 3.57
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.08%, 1.97%,
1.87%, 1.23%, 0.70% and 0.70% for Class A, Class B, Class C, Class R, Class
Y and Class Z shares, respectively, multiplied by the average account value
over the period, multiplied by 184/365 (to reflect the one-half year
period).
17
Pioneer Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 99.1%
Energy - 7.6%
Integrated Oil & Gas - 5.1%
2,584,691 Chevron Corp. $ 241,229,211
1,533,850 Exxon Mobil Corp. 143,706,407
--------------
$ 384,935,618
--------------
Oil & Gas Equipment & Services - 0.9%
944,400 Weatherford International, Inc.* $ 64,785,840
--------------
Oil & Gas Exploration & Production - 1.6%
1,125,502 Apache Corp. $ 121,036,485
--------------
Total Energy $ 570,757,943
--------------
Materials - 7.3%
Aluminum - 1.4%
2,806,824 Alcoa, Inc. $ 102,589,417
--------------
Diversified Chemical - 1.3%
1,276,700 Dow Chemical Co. (b) $ 50,327,514
1,090,474 E.I. du Pont de Nemours & Co. 48,078,999
--------------
$ 98,406,513
--------------
Diversified Metals & Mining - 3.1%
250,000 Freeport-McMoRan Copper & Gold, Inc. (Class B) $ 25,610,000
1,600,000 Rio Tinto Plc 168,868,033
600,000 Teck Cominco, Ltd. (Class B) 21,426,000
250,000 Xstrata Plc* 17,616,887
--------------
$ 233,520,920
--------------
Industrial Gases - 1.0%
507,700 Air Products & Chemicals, Inc. $ 50,074,451
300,000 Praxair, Inc. 26,613,000
--------------
$ 76,687,451
--------------
Specialty Chemicals - 0.5%
787,300 Ecolab, Inc. $ 40,317,633
--------------
Total Materials $ 551,521,934
--------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Capital Goods - 12.3%
Aerospace & Defense - 3.2%
1,254,200 General Dynamics Corp. $ 111,611,258
1,669,200 United Technologies Corp. 127,760,568
--------------
$ 239,371,826
--------------
Construction & Farm Machinery & Heavy Trucks - 5.9%
1,367,500 Caterpillar, Inc. $ 99,225,800
1,966,400 Deere & Co. 183,111,168
2,996,250 PACCAR, Inc. 163,235,700
--------------
$ 445,572,668
--------------
Electrical Component & Equipment - 1.3%
1,120,600 Emerson Electric Co. (b) $ 63,493,196
554,100 Rockwell International Corp. 38,210,736
--------------
$ 101,703,932
--------------
Industrial Conglomerates - 1.5%
665,200 3M Co. $ 56,089,664
1,532,300 General Electric Co. 56,802,361
--------------
$ 112,892,025
--------------
Industrial Machinery - 0.4%
379,950 Parker Hannifin Corp. $ 28,614,035
--------------
Total Capital Goods $ 928,154,486
--------------
Transportation - 4.5%
Airlines - 0.9%
1,736,200 Delta Air Lines, Inc.*(b) $ 25,852,018
3,538,600 Southwest Airlines Co. 43,170,920
--------------
$ 69,022,938
--------------
Railroads - 3.6%
766,500 Burlington Northern, Inc. $ 63,795,795
1,200,000 Canadian National Railway Co. (b) 56,316,000
3,043,600 Norfolk Southern Corp. 153,519,184
--------------
$ 273,630,979
--------------
Total Transportation $ 342,653,917
--------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Automobiles & Components - 2.5%
Auto Parts & Equipment - 1.9%
3,858,000 Johnson Controls, Inc. $ 139,042,320
--------------
Automobile Manufacturers - 0.6%
6,953,191 Ford Motor Corp.*(b) $ 46,794,975
--------------
Total Automobiles & Components $ 185,837,295
--------------
Consumer Durables & Apparel - 0.7%
Apparel, Accessories & Luxury Goods - 0.7%
1,400,000 Coach, Inc.* $ 42,812,000
403,800 Liz Claiborne, Inc. (b) 8,217,330
--------------
$ 51,029,330
--------------
Total Consumer Durables & Apparel $ 51,029,330
--------------
Media - 4.8%
Movies & Entertainment - 0.5%
1,079,200 The Walt Disney Co. $ 34,836,576
--------------
Publishing - 4.3%
948,000 Gannett Co. $ 36,972,000
3,494,400 John Wiley & Sons, Inc.+ 149,700,096
3,121,800 McGraw-Hill Co., Inc. 136,766,058
--------------
$ 323,438,154
--------------
Total Media $ 358,274,730
--------------
Retailing - 4.4%
Department Stores - 1.7%
1,428,200 J.C. Penney Co., Inc. $ 62,826,518
1,680,100 Nordstrom, Inc. (b) 61,710,073
--------------
$ 124,536,591
--------------
General Merchandise Stores - 1.5%
2,284,700 Target Corp. $ 114,235,000
--------------
Home Improvement Retail - 0.6%
2,015,200 Lowe's Companies, Inc. $ 45,583,824
--------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Specialty Stores - 0.6%
600,300 Barnes & Noble, Inc. (b) $ 20,680,335
1,100,000 Staples, Inc. 25,377,000
--------------
$ 46,057,335
--------------
Total Retailing $ 330,412,750
--------------
Food & Drug Retailing - 2.8%
Drug Retail - 2.1%
1,213,800 CVS Corp. $ 48,248,550
2,854,500 Walgreen Co. 108,699,360
--------------
$ 156,947,910
--------------
Food Distributors - 0.7%
1,732,400 Sysco Corp. $ 54,068,204
--------------
Total Food & Drug Retailing $ 211,016,114
--------------
Food, Beverage & Tobacco - 7.5%
Packaged Foods & Meats - 5.0%
1,716,000 Campbell Soup Co. $ 61,312,680
910,600 General Mills, Inc. 51,904,200
1,506,750 H.J. Heinz Co., Inc. 70,335,090
1,925,000 Hershey Foods Corp. (b) 75,845,000
676,500 Kellogg Co. 35,468,895
2,500,000 Kraft Foods, Inc. 81,575,000
--------------
$ 376,440,865
--------------
Soft Drinks - 2.5%
1,000,000 Coca-Cola Co. $ 61,370,000
1,648,890 PepsiCo, Inc. 125,150,751
--------------
$ 186,520,751
--------------
Total Food, Beverage & Tobacco $ 562,961,616
--------------
Household & Personal Products - 2.1%
Household Products - 1.8%
303,300 Clorox Co. $ 19,766,061
1,434,200 Colgate-Palmolive Co. 111,810,232
--------------
$ 131,576,293
--------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Personal Products - 0.3%
581,300 Estee Lauder Co. $ 25,350,493
--------------
Total Household & Personal Products $ 156,926,786
--------------
Health Care Equipment & Services - 5.1%
Health Care Equipment - 5.1%
1,540,300 Becton, Dickinson & Co. $ 128,738,274
952,600 C. R. Bard, Inc. 90,306,480
1,073,100 Medtronic, Inc. 53,944,737
1,512,100 St. Jude Medical, Inc.* 61,451,744
800,000 Zimmer Holdings, Inc.* 52,920,000
--------------
$ 387,361,235
--------------
Total Health Care Equipment & Services $ 387,361,235
--------------
Pharmaceuticals & Biotechnology - 7.1%
Pharmaceuticals - 7.1%
1,599,700 Abbott Laboratories $ 89,823,155
1,103,000 Barr Laboratorie, Inc.* 58,569,300
1,099,300 Eli Lilly & Co. 58,691,627
975,403 Merck & Co., Inc. 56,680,668
3,000,000 Pfizer, Inc. 68,190,000
389,800 Roche Holdings AG 67,259,068
3,792,800 Schering-Plough Corp. 101,040,192
750,000 Teva Pharmaceutical Industries, Ltd. (b) 34,860,000
--------------
$ 535,114,010
--------------
Total Pharmaceuticals & Biotechnology $ 535,114,010
--------------
Banks - 4.7%
Diversified Banks - 2.6%
451,239 Banco Bilbao Vizcaya (A.D.R.) (b) $ 10,942,546
2,480,307 U.S. Bancorp 78,724,944
838,828 Wachovia Corp. (b) 31,900,629
2,455,400 Wells Fargo & Co. 74,128,526
--------------
$ 195,696,645
--------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Regional Banks - 2.1%
2,664,648 National City Corp. $ 43,860,106
1,155,300 SunTrust Banks, Inc. 72,194,697
939,500 Zions Bancorporation 43,865,255
--------------
$ 159,920,058
--------------
Total Banks $ 355,616,703
--------------
Diversified Financials - 1.4%
Asset Management & Custody Banks - 0.6%
785,728 T. Rowe Price Associates, Inc. $ 47,835,121
--------------
Consumer Finance - 0.8%
1,126,500 American Express Co. $ 58,600,530
--------------
Total Diversified Financials $ 106,435,651
--------------
Insurance - 4.0%
Life & Health Insurance - 0.9%
1,100,900 MetLife, Inc. $ 67,837,458
--------------
Multi-Line Insurance - 0.8%
701,100 Hartford Financial Services Group, Inc. $ 61,128,909
--------------
Property & Casualty Insurance - 2.3%
2,348,400 Chubb Corp. $ 128,175,672
860,900 Safeco Corp. 47,934,912
--------------
$ 176,110,584
--------------
Total Insurance $ 305,076,951
--------------
Software & Services - 3.7%
Application Software - 0.7%
1,240,400 Adobe Systems, Inc.* $ 53,002,292
--------------
Data Processing & Outsourced Services - 1.7%
1,159,200 Automatic Data Processing, Inc. $ 51,619,176
552,800 DST Systems, Inc.*(b) 45,633,640
551,250 Fiserv, Inc.* 30,588,863
--------------
$ 127,841,679
--------------
Systems Software - 1.3%
2,686,400 Microsoft Corp. $ 95,635,840
--------------
Total Software & Services $ 276,479,811
--------------
The accompanying notes are an integral part of these financial statements. 23
Pioneer Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
- --------------------------------------------------------------------------------
Shares Value
Technology Hardware & Equipment - 8.7%
Communications Equipment - 4.0%
1,850,000 Cisco Systems, Inc.* $ 50,079,500
1,200,000 Corning, Inc. 28,788,000
4,358,561 Motorola, Inc. 69,911,318
3,978,600 Nokia Corp. (A.D.R.) (b) 152,738,454
--------------
$ 301,517,272
--------------
Computer Hardware - 3.2%
2,297,400 Dell, Inc.* $ 56,309,274
2,726,211 Hewlett-Packard Co. 137,619,131
2,764,600 Sun Microsystems, Inc.* 50,122,198
--------------
$ 244,050,603
--------------
Computer Storage & Peripherals - 0.4%
1,520,500 EMC Corp.* $ 28,174,865
--------------
$ 28,174,865
--------------
Office Electronics - 1.1%
1,865,850 Canon, Inc. (A.D.R.) $ 85,511,906
--------------
Total Technology Hardware & Equipment $ 659,254,646
--------------
Semiconductors - 3.3%
Semiconductor Equipment - 0.6%
2,496,500 Applied Materials, Inc. $ 44,337,840
--------------
Semiconductors - 2.7%
3,711,300 Intel Corp. $ 98,943,258
3,253,500 Texas Instruments, Inc. 108,666,900
--------------
$ 207,610,158
--------------
Total Semiconductors $ 251,947,998
--------------
Telecommunication Services - 3.5%
Integrated Telecommunication Services - 3.5%
4,966,567 AT&T Corp. $ 206,410,525
1,026,306 Verizon Communications, Inc. 44,839,309
1,029,109 Windstream Corp. 13,398,999
--------------
$ 264,648,833
--------------
Total Telecommunication Services $ 264,648,833
--------------
24 The accompanying notes are an integral part of these financial statements.
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Utilities - 1.1%
Electric Utilities - 0.6%
1,112,400 Southern Co. $ 43,105,500
--------------
Multi-Utilities - 0.5%
754,100 Consolidated Edison, Inc. $ 36,837,784
--------------
Total Utilities $ 79,943,284
--------------
TOTAL COMMON STOCKS
(Cost $4,203,346,410) $7,471,426,023
--------------
TEMPORARY CASH INVESTMENTS - 4.2%
Principal
Amount
Repurchase Agreement - 0.5%
40,070,000 J.P. Morgan Chase & Co., 4.0%, dated 12/31/07,
repurchase price of $40,070,000 plus accrued
interest on 1/2/08 collateralized by the following: $ 40,070,000
--------------
$39,787,689, U.S. Treasury Bill,
0.0%, 6/19/08
$1,069,921, Tennessee Valley Authority,
7.125%, 5/1/30
$279,709, Tennessee Valley Authority,
6.79%, 5/23/12
Shares
Time Deposits - 3.7%
128,855,076 Dresdner Bank AG $ 128,855,076
66,972,425 Royal Bank of Canada $ 66,972,425
59,659,900 Rabobank Nederland N.V. $ 59,659,900
21,422,156 Bank of Montreal $ 21,422,156
--------------
$ 276,909,557
--------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $316,979,557) $ 316,979,557
--------------
TOTAL INVESTMENT IN SECURITIES - 103.3%
(Cost $4,520,325,967) (a) $7,788,405,580
--------------
OTHER ASSETS AND LIABILITIES - (3.3)% $ (247,445,167)
--------------
TOTAL NET ASSETS - 100.0% $7,540,960,413
==============
The accompanying notes are an integral part of these financial statements. 25
Pioneer Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/07 (continued)
- --------------------------------------------------------------------------------
* Non-income producing security.
+ Investment held by the Fund representing 5% or more of voting stock of
such company.
(A.D.R.) American Depositary Receipt
(a) At December 31, 2007, the net unrealized gain on investments based on
cost for federal income tax purposes of $4,529,966,048 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $3,423,912,209
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (165,472,677)
--------------
Net unrealized gain $3,258,439,532
==============
(b) At December 31, 2007, the following securities were out on loan:
Shares Security Market Value
83,600 Banco Bilbao Vizcaya (A.D.R.) $ 2,027,300
71,900 Barnes & Noble, Inc. 2,476,955
941,988 Canadian National Railway Co. 44,207,497
199,200 DST Systems, Inc.* 16,443,960
1,499,900 Delta Air Lines, Inc.* 22,333,511
348,200 Dow Chemical Co. 13,726,044
275,000 Emerson Electric Co. 15,581,500
3,131,908 Ford Motor Corp.* 21,077,741
400,000 Hershey Foods Corp. 15,760,000
362,665 Liz Claiborne, Inc. 7,380,233
348,700 Nokia Corp. (A.D.R.) 13,386,593
1,002,600 Nordstrom, Inc. 36,825,498
637,000 Teva Pharmaceutical Industries, Ltd. 29,607,760
450,000 Wachovia Corp. 17,113,500
------------
Total $257,948,092
============
Purchase and sales of securities (excluding temporary cash investments) for the
year ended December 31, 2007 aggregated $755,163,387 and $1,486,768,501,
respectively.
26 The accompanying notes are an integral part of these financial statements.
Pioneer Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 12/31/07
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities of unaffiliated issuers, at value
(including securities loaned of $257,948,092)
(cost $4,512,578,367) $7,638,705,484
Investment in securities of affiliated issuers, at value
(cost $7,747,600) 149,700,096
--------------
Total investment in securities, at value
(cost $4,520,325,967) $7,788,405,580
Cash 13,502,361
Receivables -
Investment securities sold 12,831,978
Fund shares sold 8,757,833
Dividends, interest and foreign taxes withheld 14,493,643
Other 185,720
--------------
Total assets $7,838,177,115
--------------
LIABILITIES:
Payables -
Investment securities purchased $ 12,761,915
Fund shares repurchased 5,428,807
Upon return of securities loaned 276,909,557
Due to affiliates 1,639,672
Accrued expenses 476,751
--------------
Total liabilities $ 297,216,702
--------------
NET ASSETS:
Paid-in capital $4,150,251,597
Accumulated net realized gain on investments 122,626,852
Net unrealized gain on investments 3,268,079,613
Net unrealized gain on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 2,351
--------------
Total net assets $7,540,960,413
==============
NET ASSET VALUE PER SHARE:
(No par value, Unlimited number of shares authorized)
Class A ($6,299,615,201/135,994,035 shares) $ 46.32
==============
Class B ($296,490,633/6,572,500 shares) $ 45.11
==============
Class C ($296,094,388/6,646,965 shares) $ 44.55
==============
Class R ($161,311,080/3,478,832 shares) $ 46.37
==============
Class Y ($487,357,408/10,492,335 shares) $ 46.45
==============
Class Z ($91,703/1,976 shares) $ 46.41
==============
MAXIMUM OFFERING PRICE:
Class A ($46.32 [divided by] 94.25%) $ 49.15
==============
The accompanying notes are an integral part of these financial statements. 27
Pioneer Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 12/31/07
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of
$1,142,629) and including income from affiliated
issuers of $1,502,592) $ 149,882,864
Interest 924,006
Income from securities loaned, net 626,234
-------------
Total investment income $ 151,433,104
-------------
EXPENSES:
Management fees
Basic Fee $ 47,725,178
Performance Adjustment 3,440,679
Transfer agent fees and expenses
Class A 11,716,733
Class B 1,109,402
Class C 613,844
Class R 50,407
Class Y 67,610
Class Z 16
Distribution fees
Class A 15,652,735
Class B 3,582,740
Class C 3,141,038
Class R 732,455
Administrative fees 1,794,139
Custodian fees 224,697
Registration fees 156,647
Professional fees 194,449
Interest expense 191
Printing expense 370,201
Fees and expenses of nonaffiliated trustees 141,901
Miscellaneous 244,581
-------------
Total expenses $ 90,959,643
Less fees paid indirectly (743,000)
-------------
Net expenses $ 90,216,643
-------------
Net investment income $ 61,216,461
-------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on:
Investments $ 603,234,063
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 26,448 $ 603,260,511
------------- -------------
Change in net unrealized gain (loss) on:
Investments $(288,056,397)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 1,203 $(288,055,194)
------------- -------------
Net gain on investments $ 315,205,317
-------------
Net increase in net assets resulting from operations $ 376,421,778
=============
28 The accompanying notes are an integral part of these financial statements.
Pioneer Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 12/31/07 and 12/31/06, respectively
Year Ended Year Ended
12/31/07 12/31/06
FROM OPERATIONS:
Net investment income $ 61,216,461 $ 64,340,929
Net realized gain on investments and foreign
currency transactions 603,260,511 369,780,416
Change in net unrealized gain (loss) on investments
and foreign currency transactions (288,055,194) 708,733,918
---------------- ----------------
Net increase in net assets resulting from operations $ 376,421,778 $ 1,142,855,263
---------------- ----------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.41 and $0.43 per share, respectively) $ (54,679,851) $ (54,613,099)
Class B ($0.00 and $0.01 per share, respectively) - (103,030)
Class C ($0.06 and $0.09 per share, respectively) (374,134) (595,850)
Investor Class ($0.00 and $0.53 per share,
respectively) - (5,809,416)
Class R ($0.35 and $0.38 per share, respectively) (1,050,005) (672,565)
Class Y ($0.61 and $0.62 per share, respectively) (5,680,764) (4,313,591)
Class Z ($0.47 and $0.00 per share, respectively) (932) -
Net realized gain:
Class A ($3.57 and $2.83 per share, respectively) (454,506,280) (346,665,165)
Class B ($3.57 and $2.83 per share, respectively) (22,503,839) (23,621,865)
Class C ($3.57 and $2.83 per share, respectively) (22,180,345) (17,913,199)
Investor Class ($0.00 and $2.83 per share,
respectively) - (29,273,755)
Class R ($3.57 and $2.83 per share, respectively) (11,330,183) (5,698,047)
Class Y ($3.57 and $2.83 per share, respectively) (34,284,341) (21,483,021)
Class Z ($3.57 and $0.00 per share, respectively) (7,057) -
---------------- ----------------
Total distributions to shareowners $ (606,597,731) $ (510,762,603)
---------------- ----------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 846,660,776 $ 872,557,510
Reinvestment of distributions 545,172,182 450,743,693
Cost of shares repurchased (1,523,672,524) (1,305,955,987)
---------------- ----------------
Net increase (decrease) in net assets resulting
from Fund share transactions $ (131,839,566) $ 17,345,216
---------------- ----------------
Net increase (decrease) in net assets $ (362,015,519) $ 649,437,876
NET ASSETS:
Beginning of year 7,902,975,932 7,253,538,056
---------------- ----------------
End of year $ 7,540,960,413 $ 7,902,975,932
================ ================
Distributions in excess of net investment income $ - $ -
================ ================
The accompanying notes are an integral part of these financial statements. 29
Pioneer Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 10,311,922 $ 515,097,783 12,263,526 $ 575,796,730
Conversion of Investor Class
shares to Class A shares - - 10,918,476 523,322,574
Reinvestment of distributions 10,133,411 465,855,072 7,596,525 358,158,051
Less shares repurchased (23,353,347) (1,177,249,539) (19,639,233) (922,039,359)
----------- ---------------- ----------- --------------
Net increase (decrease) (2,908,014) $ (196,296,684) 11,139,294 $ 535,237,996
=========== ================ =========== ==============
CLASS B
Shares sold 527,816 $ 25,527,228 736,274 $ 33,815,613
Reinvestment of distributions 429,811 19,045,228 432,374 19,883,830
Less shares repurchased (3,018,531) (147,248,151) (3,508,258) (160,196,570)
----------- ---------------- ----------- --------------
Net decrease (2,060,904) $ (102,675,695) (2,339,610) $ (106,497,127)
=========== ================ =========== ==============
CLASS C
Shares sold 1,087,496 $ 51,404,697 1,140,653 $ 51,943,174
Reinvestment of distributions 315,373 13,826,369 252,716 11,504,548
Less shares repurchased (1,428,783) (68,898,510) (1,556,071) (70,354,257)
----------- ---------------- ----------- --------------
Net decrease (25,914) $ (3,667,444) (162,702) $ (6,906,535)
=========== ================ =========== ==============
INVESTOR CLASS
Shares sold - $ - 3,185 $ 164,560
Reinvestment of distributions - - 698,081 32,900,373
Conversion of Investor Class
shares to Class A shares - - (10,921,762) (523,322,574)
Less shares repurchased - - (1,485,328) (69,346,663)
----------- ---------------- ----------- --------------
Net decrease - $ - (11,705,824) $ (559,604,304)
=========== ================ =========== ==============
CLASS R
Shares sold 1,587,110 $ 79,939,482 1,102,187 $ 51,798,096
Reinvestment of distributions 265,657 12,201,241 133,342 6,296,607
Less shares repurchased (542,531) (27,436,367) (223,402) (10,582,891)
----------- ---------------- ----------- --------------
Net increase 1,310,236 $ 64,704,356 1,012,127 $ 47,511,812
=========== ================ =========== ==============
CLASS Y
Shares sold 3,472,708 $ 174,591,582 3,343,263 $ 159,039,337
Reinvestment of distributions 740,778 34,244,272 465,151 22,000,284
Less shares repurchased (2,043,668) (102,839,957) (1,564,467) (73,436,247)
----------- ---------------- ----------- --------------
Net increase 2,169,818 $ 105,995,897 2,243,947 $ 107,603,374
=========== ================ =========== ==============
CLASS Z*
Shares sold 1,976 $ 100,004
----------- ----------------
Net increase 1,976 $ 100,004
=========== ================
* Class Z shares were first publicly offered on April 30, 2007.
30 The accompanying notes are an integral part of these financial statements.
Pioneer Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/07 12/31/06 12/31/05 12/31/04 12/31/03
CLASS A
Net asset value, beginning of period $ 48.10 $ 44.21 $ 42.06 $ 38.00 $ 30.76
---------- ---------- ---------- ---------- ----------
Increase from investment operations:
Net investment income $ 0.41 $ 0.43 $ 0.37 $ 0.35 $ 0.28
Net realized and unrealized gain on investments 1.79 6.72 2.31 4.05 7.24
---------- ---------- ---------- ---------- ----------
Net increase from investment operations $ 2.20 $ 7.15 $ 2.68 $ 4.40 $ 7.52
Distributions to shareowners:
Net investment income (0.41) (0.43) (0.39) (0.34) (0.28)
Net realized gain (3.57) (2.83) (0.14) - -
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset value $ (1.78) $ 3.89 $ 2.15 $ 4.06 $ 7.24
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 46.32 $ 48.10 $ 44.21 $ 42.06 $ 38.00
========== ========== ========== ========== ==========
Total return* 4.71% 16.39% 6.40% 11.64% 24.58%
Ratio of net expenses to average net assets+ 1.09% 1.11% 1.08% 1.06% 1.09%
Ratio of net investment income to average net assets+ 0.81% 0.90% 0.88% 0.90% 0.86%
Portfolio turnover rate 10% 9% 13% 14% 6%
Net assets, end of period (in thousands) $6,299,615 $6,681,712 $5,648,986 $5,626,270 $5,370,888
Ratios with reductions for fees paid indirectly:
Net expenses 1.08% 1.10% 1.08% 1.06% 1.09%
Net investment income 0.82% 0.91% 0.88% 0.90% 0.86%
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 31
Pioneer Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/07 12/31/06 12/31/05 12/31/04 12/31/03
CLASS B
Net asset value, beginning of period $ 46.98 $ 43.21 $ 41.15 $ 37.18 $ 30.14
-------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.04) $ 0.03 $ (0.02) $ 0.01 $ (0.02)
Net realized and unrealized gain on investments 1.74 6.58 2.24 3.96 7.08
-------- -------- -------- -------- - -------
Net increase from investment operations $ 1.70 $ 6.61 $ 2.22 $ 3.97 $ 7.06
Distributions to shareowners:
Net investment income - (0.01) (0.02) - (0.02)
Net realized gain (3.57) (2.83) (0.14) - -
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ (1.87) $ 3.77 $ 2.06 $ 3.97 $ 7.04
-------- -------- -------- -------- --------
Net asset value, end of period $ 45.11 $ 46.98 $ 43.21 $ 41.15 $ 37.18
======== ======== ======== ======== ========
Total return* 3.76% 15.43% 5.39% 10.68% 23.44%
Ratio of net expenses to average net assets+ 1.99% 1.97% 2.01% 1.93% 2.00%
Ratio of net investment income (loss) to average net assets+ (0.10)% 0.04% (0.05)% 0.02% (0.05)%
Portfolio turnover rate 10% 9% 13% 14% 6%
Net assets, end of period (in thousands) $296,491 $405,566 $474,139 $538,786 $555,669
Ratios with reduction for fees paid indirectly:
Net expenses 1.97% 1.96% 2.01% 1.93% 2.00%
Net investment income (loss) (0.08)% 0.05% (0.05)% 0.02% (0.05)%
* 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.
+ Ratio with no reduction for fees paid indirectly.
32 The accompanying notes are an integral part of these financial statements.
Pioneer Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/07 12/31/06 12/31/05 12/31/04 12/31/03
CLASS C
Net asset value, beginning of period $ 46.44 $ 42.78 $ 40.73 $ 36.84 $ 29.84
-------- -------- -------- -------- --------
Increase from investment operations:
Net investment income $ 0.02 $ 0.06 $ 0.04 $ 0.04 $ 0.02
Net realized and unrealized gain on investments 1.72 6.52 2.22 3.91 7.01
-------- -------- -------- -------- --------
Net increase from investment operations $ 1.74 $ 6.58 $ 2.26 $ 3.95 $ 7.03
Distributions to shareowners:
Net investment income (0.06) (0.09) (0.07) (0.06) (0.03)
Net realized gain (3.57) (2.83) (0.14) - -
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ (1.89) $ 3.66 $ 2.05 $ 3.89 $ 7.00
-------- -------- -------- -------- --------
Net asset value, end of period $ 44.55 $ 46.44 $ 42.78 $ 40.73 $ 36.84
======== ======== ======== ======== ========
Total return* 3.88% 15.52% 5.55% 10.74% 23.58%
Ratio of net expenses to average net assets+ 1.88% 1.89% 1.87% 1.84% 1.89%
Ratio of net investment income to average net assets+ 0.02% 0.12% 0.09% 0.11% 0.05%
Portfolio turnover rate 10% 9% 13% 14% 6%
Net assets, end of period (in thousands) $296,094 $309,868 $292,453 $313,420 $292,526
Ratios with reduction for fees paid indirectly:
Net expenses 1.87% 1.88% 1.87% 1.84% 1.89%
Net investment income 0.03% 0.13% 0.09% 0.11% 0.05%
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 33
Pioneer Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended 4/1/03(a) to
12/31/07 12/31/06 12/31/05 12/31/04 12/31/03
CLASS R
Net asset value, beginning of period $ 48.16 $ 44.27 $ 42.11 $ 38.06 $ 29.24
-------- -------- ------- ------- --------
Increase from investment operations:
Net investment income $ 0.33 $ 0.34 $ 0.30 $ 0.29 $ 0.21
Net realized and unrealized gain on investments 1.80 6.76 2.33 4.09 8.84
-------- -------- ------- ------- --------
Net increase from investment operations $ 2.13 $ 7.10 $ 2.63 $ 4.38 $ 9.05
Distributions to shareowners:
Net investment income (0.35) (0.38) (0.33) (0.33) (0.23)
Net realized gain (3.57) (2.83) (0.14) - -
-------- -------- ------- ------- --------
Net increase (decrease) in net asset value $ (1.79) $ 3.89 $ 2.16 $ 4.05 $ 8.82
-------- -------- ------- ------- --------
Net asset value, end of period $ 46.37 $ 48.16 $ 44.27 $ 42.11 $ 38.06
======== ======== ======= ======= ========
Total return* 4.56% 16.23% 6.28% 11.58% 31.02%(b)
Ratio of net expenses to average net assets+ 1.23% 1.26% 1.21% 1.14% 1.06%**
Ratio of net investment income to average net assets+ 0.68% 0.75% 0.75% 0.89% 0.65%**
Portfolio turnover rate 10% 9% 13% 14% 6%
Net assets, end of period (in thousands) $161,311 $104,439 $51,194 $16,525 $ 3,055
Ratios with reduction for fees paid indirectly:
Net expenses 1.23% 1.26% 1.21% 1.14% 1.06%**
Net investment income 0.68% 0.75% 0.75% 0.89% 0.65%**
(a) Class R shares were first publicly offered on April 1, 2003.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
34 The accompanying notes are an integral part of these financial statements.
Pioneer Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/07 12/31/06 12/31/05 12/31/04 12/31/03
CLASS Y
Net asset value, beginning of period $ 48.23 $ 44.31 $ 42.16 $ 38.09 $ 30.82
-------- -------- -------- -------- --------
Increase from investment operations:
Net investment income $ 0.60 $ 0.60 $ 0.58 $ 0.52 $ 0.41
Net realized and unrealized gain on investments 1.80 6.77 2.28 4.06 7.28
-------- -------- -------- -------- --------
Net increase from investment operations $ 2.40 $ 7.37 $ 2.86 $ 4.58 $ 7.69
Distributions to shareowners:
Net investment income (0.61) (0.62) (0.57) (0.51) (0.42)
Net realized gain (3.57) (2.83) (0.14) - -
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ (1.78) $ 3.92 $ 2.15 $ 4.07 $ 7.27
-------- -------- -------- -------- --------
Net asset value, end of period $ 46.45 $ 48.23 $ 44.31 $ 42.16 $ 38.09
======== ======== ======== ======== ========
Total return* 5.11% 16.88% 6.83% 12.15% 25.14%
Ratio of net expenses to average net assets+ 0.70% 0.70% 0.65% 0.61% 0.61%
Ratio of net investment income to average net assets+ 1.21% 1.31% 1.31% 1.34% 1.31%
Portfolio turnover rate 10% 9% 13% 14% 6%
Net assets, end of period (in thousands) $487,357 $401,391 $269,333 $155,647 $139,210
Ratios with reduction for fees paid indirectly:
Net expenses 0.70% 0.70% 0.65% 0.61% 0.61%
Net investment income 1.21% 1.31% 1.31% 1.34% 1.31%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at each end of each period.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 35
Pioneer Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
4/30/07 to
12/31/07 (a)
CLASS Z
Net asset value, beginning of period $ 50.61
---------
Increase (decrease) from investment operations:
Net investment income $ 0.42
Net realized and unrealized loss on investments (0.58)
---------
Net decrease from investment operations $ (0.16)
Distributions to shareowners:
Net investment income (0.47)
Net realized gain (3.57)
---------
Net decrease in net asset value $ (4.20)
---------
Net asset value, end of period $ 46.41
=========
Total return* (0.70)%(b)
Ratio of net expenses to average net assets+ 0.70%**
Ratio of net investment income to average net assets+ 1.25%**
Portfolio turnover rate 10%
Net assets, end of period (in thousands) $ 92
Ratios with reduction for fees paid indirectly:
Net expenses 0.70%**
Net investment income 1.25%**
(a) Class Z shares were first publicly offered on April 30, 2007.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
** Not Annualized.
+ Ratio with no reduction for fees paid indirectly.
36 The accompanying notes are an integral part of these financial statements.
Pioneer Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Fund (the Fund) is 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 to provide reasonable income
and capital growth.
The Fund offers six classes of shares designated as Class A, Class B, Class C,
Class R, Class Y and Class Z shares. Class R shares were first publicly offered
on April 1, 2003. Class Z shares were first publicly offered on April 30, 2007.
As planned on December 10, 2006, Investor Class shares converted to Class A
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 have exclusive voting rights with respect to
the distribution plans that have been adopted by Class A, Class B, Class C and
Class R shareowners, respectively. There is no distribution plan for Class Y
shares and Class Z 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 year. 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. The Fund's prospectus contains information regarding
the fund's principal risks. 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:
37
Pioneer Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07 (continued)
- --------------------------------------------------------------------------------
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 (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,
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 may also 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
December 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 the
exercise of reasonable diligence. Interest income is recorded on the accrual
basis. Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign
38
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 on those securities
but are included with the net realized and unrealized gain or loss on
investments.
C. 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. Tax
years prior to 2004 are closed (not subject to examination by tax
authorities) due to the expiration of statute of limitations; all other tax
years are open.
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 from or in excess of net investment
income or as from net realized gain on investment transactions, or as from
paid-in capital, depending on the type of book/tax differences that may
exist.
At December 31, 2007, the Fund has reclassified $569,225 to increase
distributions in excess of net investment income and $569,225 to decrease
accumulated net realized gain on investments. 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 paid during the years ended December 31,
2007 and December 31, 2006 was as follows:
- -----------------------------------------------------------------------------
2007 2006
- -----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 61,242,909 $ 76,235,865
Long-term capital gain 545,354,822 434,526,738
------------ ------------
Total $606,597,731 $510,762,603
============ ============
- -----------------------------------------------------------------------------
39
Pioneer Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07 (continued)
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2007:
- --------------------------------------------------
2007
- --------------------------------------------------
Undistributed long-term gain $ 132,266,933
Unrealized appreciation 3,258,441,883
--------------
Total $3,390,708,816
==============
- --------------------------------------------------
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
D. 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 $1,093,676 in underwriting commissions on the
sale of Class A shares during the year ended December 31, 2007.
E. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on their respective percentage of adjusted net assets at the beginning
of the day. Distribution fees are calculated based on the average daily net
asset value attributable to Class A, Class B, Class C, and Class R shares of
the Fund, respectively (see Note 4). Class Y and Class Z shares are not
subject to a distribution plan. Shareowners of each class participate in 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). Distributions to shareowners are
recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, Class C, and
40
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Class R shares can bear different transfer agent and distribution expense
rates.
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or other
institutional investors. When entering into a loan, the Fund receives
collateral, 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 which is required to be at
least 102%, at all times, of the fair value of the securities loaned. The
amount of the collateral is required to 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 various Time
Deposits, which is sponsored by Brown Brothers Harriman & Co., the Fund's
custodian.
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest received
from counterparties, is required to be at least equal to or in excess of the
value of the repurchase agreement at the time of purchase. The collateral for
all repurchase agreements is held in safekeeping in the customer-only account
of the Fund's custodian, or subcustodians. The Fund's investment adviser,
Pioneer Investment Management, Inc. (PIM), is responsible for determining
that the value of the collateral remains at least equal to the repurchase
price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. PIM receives a basic fee that is equal to 0.60% of the Fund's
average daily net assets up to $7.5 billion, 0.575% on the next $2.5 billion and
0.550% on the excess over $10 billion. The basic fee is subject to a performance
adjustment up to a maximum of -0.10% based on the Fund's investment performance
as compared with the Standard and Poor's 500 Index over a rolling
41
Pioneer Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/07 (continued)
- --------------------------------------------------------------------------------
36-month period. In addition, the fee is further limited to a maximum annualized
rate adjustment of +0.10%. For year ended December 31, 2007, the aggregate
performance adjustment resulted in an increase to the basic fee of $3,440,679.
For the year ended December 31, 2007, the net management fee was equivalent to
0.64% of the Fund's average daily net assets.
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. Included in "Due to Affiliates" reflected on
the Statement of Assets and Liabilities is $337,358 in management fees,
administrative costs and certain other services payable to PIM at December 31,
2007.
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" reflected on the Statement of
Assets and Liabilities is $1,070,593 in transfer agent fees payable to PIMSS at
December 31, 2007.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution with respect to Class A, Class B, Class
C, and Class R shares in accordance with Rule 12b-1 of the Investment Company
Act of 1940. Currently under the Class A Plan, PFD is reimbursed for
distribution expenses in an amount up to 0.25% of the average daily net assets
attributable to 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. Pursuant to the Class R Plan, the Fund pays PFD 0.50% of the average
daily net assets attributable to Class R shares for distribution services.
Included in "Due to Affiliates" reflected on the Statement of Assets and
Liabilities is $231,721 in distribution fees payable to PFD at December 31,
2007. The Fund also has adopted a separate service plan for Class R shares
(Service Plan). The Service Plan authorizes the Fund to pay securities dealers,
plan administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding
42
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
shares of the Fund a service fee of up to 0.25% of the Fund's average daily net
assets attributable to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class R, Class Y and
Class Z 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%. There is no CDSC for Class R, Class Y or Class Z shares. Proceeds from
the CDSCs are paid to PFD. For year ended December 31, 2007, CDSCs in the amount
of $508,713 were paid to PFD.
5. Commission Recapture and Expense Offset Arrangements
Effective July 15, 2005, the Fund has entered into commission recapture
arrangements with brokers with whom PIM places trades on behalf of the Fund
where they provide services to the Fund in addition to trade execution. These
services included payments of certain expenses on behalf of the Fund. For the
year ended December 31, 2007, the Fund's custody expenses were reduced by
$81,859 under this agreement. In addition, the Fund has entered into certain
expense offset arrangements with PIMSS that may result in reduction in the
Fund's transfer agent fees and expenses due to interest earned on cash held by
PIMSS. For the year ended December 31, 2007, the Fund's expenses were reduced by
$661,141 under these arrangements.
6. Line of Credit
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $200 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $200 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
is payable at the Federal Funds Rate plus 1/2% on an annualized basis. The Funds
pay an annual commitment fee for this facility. The commitment fee is allocated
among such Funds based on their respective borrowing limits.
43
Pioneer Fund
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NOTES TO FINANCIAL STATEMENTS 12/31/07 (continued)
- --------------------------------------------------------------------------------
For the year ended December 31, 2007, the average daily amount of borrowing
outstanding for the one day the Fund utilized the line of credit was $120,000.
The related weighted average annualized interest rate for the period was 5.81%,
and the total interest expense on such borrowings was $191. As of December 31,
2007, there were no borrowings outstanding.
7. Affiliated Companies
The Fund's investments in certain companies may exceed 5% of the outstanding
voting stock. Such companies are deemed affiliates of the Fund for financial
reporting purposes. The following summarizes transactions with affiliates of
the Fund for the year ended December 31, 2007:
- -----------------------------------------------------------------------------------------
Beginning Ending
Balance Purchases Sales Dividend Balance
Affiliates (shares) (shares) (shares) Income (shares) Value
- -----------------------------------------------------------------------------------------
John Wiley
and Sons 3,494,400 - - $1,502,592 3,494,400 $149,700,096
- -----------------------------------------------------------------------------------------
8. New Pronouncements
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.
44
Pioneer Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareowners of Pioneer Fund:
We have audited the accompanying statement of assets and liabilities of Pioneer
Fund (the "Fund"), including the schedule of investments, as of December 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 December 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 Fund at December 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 financial highlights for each of the periods indicated
therein, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 19, 2008
45
Pioneer Fund
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APPROVAL OF INVESTMENT ADVISORY AGREEMENT
- --------------------------------------------------------------------------------
Pioneer Investment Management, Inc. (PIM) serves as the Fund's investment
adviser pursuant to an investment advisory agreement between PIM and the Fund.
The Trustees of the Fund, as required by law, determine annually whether to
continue the investment advisory agreement for the Fund.
In connection with their most recent consideration of the investment advisory
agreement for the Fund, the Trustees received and reviewed a substantial amount
of information provided by PIM in response to requests of the independent
Trustees and their independent legal counsel. The independent Trustees met on a
number of occasions with PIM and also separately with their independent legal
counsel to evaluate and discuss the information provided to them by PIM. At a
meeting held on November 13, 2007, based on their evaluation of the information
provided by PIM, the Trustees, including the independent Trustees voting
separately, unanimously approved the continuation of the investment advisory
agreement for another year.
In considering the continuation of the investment advisory agreement, the
Trustees considered various factors that they determined were relevant,
including the factors described below. The Trustees did not identify any single
factor as the controlling factor in determining to approve the continuation of
the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services provided
by PIM to the Fund, taking into account the investment objective and strategy of
the Fund and the information related to the Fund provided to the Trustees at
each quarterly meeting. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund and its research process. The Trustees considered the resources of PIM and
the personnel of PIM who provide investment management services to the Fund.
They also considered PIM's compliance and legal resources and personnel.
In addition, the Trustees considered the other services that PIM provides to the
Fund under the investment advisory agreement and that, as administrator, PIM is
responsible for the administration of the Fund's business and other affairs. It
was noted that PIM supervises and monitors the performance of the Fund's service
providers and provides the Fund with personnel (including officers) as are
necessary
46
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
for the Fund's operations. The Trustees considered the fees paid to PIM for the
provision of such services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services provided by PIM to the Fund were satisfactory and
consistent with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
average performance of its peer group of funds as classified by Morningstar,
Inc. (Morningstar), an independent provider of investment company data, and with
the performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the second quintile of its Morningstar
category for the one year period ended June 30, 2007, in the first quintile of
its Morningstar category for the three and ten year periods ended June 30, 2007,
and in the third quintile of its Morningstar category for the five year period
ended June 30, 2007. (In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile.) The Trustees concluded that the
investment performance of the Fund was satisfactory.
Management Fee and Expenses
The Trustees considered information on the fees and expenses of the Fund in
comparison to the management fees of its peer group of funds as classified by
Morningstar and the expense ratios of a peer group of funds selected on the
basis of criteria determined by the independent Trustees for this purpose using
data provided by Strategic Insight Mutual Fund Research and Consulting, LLC
(Strategic Insight), an independent third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2007 was in the second quintile relative to the management fees
paid by other funds in its peer group Morningstar category for the comparable
period. The Trustees also considered that the Fund's expense ratio for the
twelve months ended June 30, 2007 was in the fifth quintile relative to its
Strategic Insight peer group. The Trustees noted the performance fee adjustment
of four basis points in 2006 because of the Fund's first quintile
47
Pioneer Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (continued)
- --------------------------------------------------------------------------------
performance for that period. The Trustees also noted that the Fund had reached
the previously negotiated breakpoint for assets in excess of $7.5 billion and
that the management fee rate, at current asset levels, would be lower going
forward. The Trustees considered the impact of the Fund's transfer agency
expenses on its expense ratio and agreed with management that a larger minimum
account size might disadvantage smaller investors, which would be a competitive
disadvantage and would work to discourage new investors in the Fund.
The Trustees also reviewed management fees charged by PIM to its separate
account clients with a similar investment strategy as the Fund. The Trustees
noted that in some instances the fee rates for those separate accounts were
lower than the management fees for the Fund and considered that, under the
investment advisory agreement with the Fund, PIM performs additional services
for the Fund that it does not provide to those other clients, including
oversight of the Fund's other service providers, regulatory compliance and other
services.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of services provided, taking
into account the fees charged by other advisers for managing comparable mutual
funds with similar strategies. The Trustees also concluded that the Fund's
expense ratio was reasonable, taking into account the size of the Fund, the
quality of services provided by PIM and the investment performance of the Fund.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with respect to the Fund in
comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
recognized that PIM should be entitled to earn a reasonable level of profit for
the services provided to the Fund. The Trustees concluded
48
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
that PIM's profitability with respect to the management of the Fund was not
unreasonable.
Economies of Scale
The Trustees considered the economies of scale with respect to the management of
the Fund, whether the Fund had appropriately benefited from any economies of
scale, and whether there was potential for realization of any further economies
of scale. The Trustees concluded that, because of the breakpoints in the
management fee schedule and the reduced fee rates above certain asset levels,
any perceived or potential economies of scale would be shared between PIM and
the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered that affiliates of PIM serve as the Fund's
transfer agent and distributor. The Trustees considered the receipt by PIM and
its affiliates of sales loads and payments under Rule 12b-1 plans in respect of
the Fund and the other Pioneer funds and the benefits to PIM and its affiliates
from the use of "soft" commission dollars generated by the Fund to pay for
research and brokerage services. The Trustees further considered the intangible
benefits to PIM by virtue of its relationship with the Fund and the other
Pioneer funds. The Trustees concluded that the receipt of these benefits was
reasonable in the context of the overall relationship between PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the independent Trustees, concluded that the terms of
the investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, were fair and reasonable and voted to approve the proposed
continuation of the investment advisory agreement for the Fund.
49
Pioneer 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 Board of Trustees provides broad supervision over the Fund's affairs. The
officers of the Fund are responsible for the Fund's operations. The 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. Bock) serves as a trustee of each of the 77 U.S.
registered investment portfolios for which Pioneer serves as investment adviser
(the "Pioneer Funds"). Mr. Bock serves as Trustee of 76 of the 77 Pioneer Funds.
The address for all 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). 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.pioneerinvestments.com and on the SEC's web site at http://www.sec.gov.
50
Pioneer Fund
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INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service and
Name and Age With the Fund Term of Office
John F. Cogan, Jr. (81)* Chairman of the Trustee since 1982.
Board, Trustee and Serves until a succes-
President sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years 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
*Mr. Cogan is an Interested Trustee because he is an officer or director of the Fund's investment adviser and
certain of its affiliates.
- -------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service and
Name and Age With the Fund Term of Office
David R. Bock (64) Trustee Trustee since 2005.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
David R. Bock (64) Executive Vice President and Chief Financial Officer, I-trax, Director of The Enterprise
Inc. (publicly traded health care services company) (2004 Social Investment
- 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)
- -------------------------------------------------------------------------------------------------------------
51
Pioneer Fund
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INDEPENDENT TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service and
Name and Age With the Fund Term of Office
Mary K. Bush (59) Trustee Trustee since 1997.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Margaret B.W. Graham (60) Trustee Trustee since 1990.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Thomas J. Perna (57) Trustee Trustee since 2006.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Mary K. Bush (59) President, Bush International, LLC (international financial Director of Brady Corpora-
advisory firm) tion (industrial identifica-
tion and specialty coated
material products
manufacturer); Director of
Briggs & Stratton Co.
(engine manufacturer);
Director of UAL Corpora-
tion (airline holding
company) Director of
Mantech International
Corporation (national
security, defense, and
intelligence technology
firm): and Member, Board
of Governors, Investment
Company Institute
- -----------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (60) Founding Director, Vice-President and Corporate Secretary, None
The Winthrop Group, Inc. (consulting firm); and Desautels
Faculty of Management, McGill University
- -----------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (57) Private investor (2004 - present); and Senior Executive Director of Quadriserv
Vice President, The Bank of New York (financial and securi- Inc. (technology products
ties services) (1986 - 2004) for securities lending
industry)
- -----------------------------------------------------------------------------------------------------------------------
52
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Positions Held Length of Service and
Name and Age With the Fund Term of Office
Marguerite A. Piret (59) Trustee Trustee since 1982.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 1985.
Serves until a succes-
sor trustee is elected
or earlier retirement or
removal.
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Trustee
Marguerite A. Piret (59) President and Chief Executive Officer, Newbury, Piret & Director of New America
Company, Inc. (investment banking firm) High Income Fund, Inc.
(closed-end investment
company)
- ------------------------------------------------------------------------------------------------------------------
John Winthrop (71) President, John Winthrop & Co., Inc. (private investment None
firm)
- ------------------------------------------------------------------------------------------------------------------
53
Pioneer Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service and
Name and Age With the Fund Term of Office
Daniel K. Kingsbury (49) Executive Vice Since March 2007.
President Serves at the discre-
tion of the Board
- --------------------------------------------------------------------------------
Dorothy E. Bourassa (60) Secretary Since 2000. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Christopher J. Kelley (43) Assistant Secretary Since 2003. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2000. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Mark E. Bradley (48) Assistant Treasurer Since 2004. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Treasurer Since 2000. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Officer
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)
- -------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (60) 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 (43) Associate General Counsel of Pioneer since January 2008 None
and Assistant Secretary of all of the Pioneer Funds since
September 2003; Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
- -------------------------------------------------------------------------------------------------------------------
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 (48) Deputy Treasurer of Pioneer since 2004 and Assistant None
Treasurer of all of the Pioneer Funds since November
2004; Treasurer and Senior Vice President, CDC IXIS
Asset Management Services from 2002 to 2003
- -------------------------------------------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------------------------------------------
54
Pioneer Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Positions Held Length of Service and
Name and Age With the Fund Term of Office
Gary Sullivan (49) Assistant Treasurer Since 2002. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Assistant Treasurer Since 2003. Serves at
the discretion of the
Board
- --------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Since January 2007.
Officer Serves at the discre-
tion of the Board
- --------------------------------------------------------------------------------
Other Directorships Held
Name and Age Principal Occupation During Past Five Years by this Officer
Gary Sullivan (49) Fund Accounting Manager - Fund Accounting, Administration None
and Controllership Services of Pioneer; and Assistant
Treasurer of all of the Pioneer Funds
- --------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Sullivan (34) Fund Administration Manager - Fund Accounting, Administration None
and Controllership Services since June 2003 and Assistant
Treasurer of all of the Pioneer Funds since September 2003;
Assistant Vice President - Mutual Fund Operations of State
Street Corporation from June 2002 to June 2003 (formerly
Deutsche Bank Asset Management)
- --------------------------------------------------------------------------------------------------------------------------------
Teri W. Anderholm (48) Chief Compliance Officer of Pioneer since December 2006 None
and of all the Pioneer Funds since January 2007l 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)
- --------------------------------------------------------------------------------------------------------------------------------
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.
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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.