OMB APPROVAL
OMB Number: 3235-0570
Expires: August 31, 2010
Estimated average burden
hours per response.....18.9
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08657
Pioneer Equity Income Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2007 through April 30, 2008
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PIONEER
-----------------------
EQUITY
INCOME
FUND
PEQIX
Ticker Symbol
Semiannual
Report
4/30/08
[LOGO]PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 28
Notes to Financial Statements 38
Approval of Investment Advisory Agreement 47
Trustees, Officers and Service Providers 51
President's
Dear Shareowner,
- --------------------------------------------------------------------------------
Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. They
are particularly useful guides to keep in mind today, at a time when markets
around the globe are being buffeted by problems in the financial and real
estate industries and by concerns about a slowing economy.
After an extended period of steady economic growth with sustained low
unemployment and low inflation, the U.S. economy ran into difficulty as 2007
drew to a close. Investors in subprime mortgages were forced to mark down the
value of their assets, imperiling leveraged balance sheets. The ensuing credit
crunch forced central banks in the United States and Europe to assume the role
of "lender of last resort" to keep credit markets functioning. Conditions
worsened in the first quarter of 2008, as falling prices, margin calls and
deleveraging continued, the auction-rate preferred market seized up. The U.S.
Federal Reserve expanded its lender-of-last-resort role to include lending to
primary dealers and continued to cut interest rates. By then, recession talk
was widespread as concern grew that falling home prices, rising unemployment,
sharply rising food and energy prices, and disruptions in financial markets
posed a significant threat to economic growth.
Markets reacted poorly to the developments leading up to the difficulties
surrounding Bear Stearns, with fixed-income credit spreads (the difference in
rates between corporate and U.S. government bonds) widening dramatically and
stock markets declining, wiping out the positive returns markets had delivered
in the preceding year. Treasury bond prices rose as the market underwent a
flight to quality. In the six weeks between the Bear Stearns problems and the
end of April, though, there were no further market crises, recession fears
faded in light of positive economic news, and stock markets rallied, recouping
some of their first-quarter losses, while Treasury bond prices fell back.
Over the six-month period ending April 30, 2008, the Dow Jones Industrial
Average fell 7%, the Standard & Poor's 500 Index fell 10% and the NASDAQ
Composite Index fell 16%. The MSCI EAFE Developed Market Index of international
stock markets fell 9%, and the MSCI Emerging Markets Index fell 10%. The U.S.
investment-grade bond market, as measured by the Lehman Brothers Aggregate Bond
Index, was a solid performer over the six months, rising 4%. The U.S.
2
Letter
high-yield bond market, as measured by the Merrill Lynch High Yield Bond Master
II Index, fell 1% as its higher-coupon yields could not offset a fall in bond
prices triggered by widening credit spreads.
Looking forward, the risk of a 2008 recession seems diminished, but substantial
risks remain in both financial markets and the real economy. On the other hand,
a weak U.S. dollar and substantial fiscal and monetary stimulus are potent
support for the economy. Markets remain volatile, and falling risk tolerances
and deleveraging may depress asset prices in the short term, but equity and
corporate bond valuations look attractive over a longer time horizon unless the
U.S. economy falls into a severe and protracted recession.
Sudden swings in the markets are always to be expected, but they are difficult
to time. Maintaining a long-term time horizon, being diversified, and paying
attention to asset allocation are important investment principles. 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 and to adhere to a strategic plan
rather than letting emotion drive investment decisions.
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 Equity Income Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/08
- --------------------------------------------------------------------------------
The difficulties that began with the subprime mortgage situation in the summer
of 2007 continued during the six months ended April 30, 2008, as a worsening of
the credit crunch and growing recession fears pulled the U.S. stock market down
to its largest quarterly decline in over five years in the first quarter of
2008. John Carey, manager of the Pioneer Equity Income Fund, provides an update
on the Fund and the factors that influenced performance during the six-month
period.
Q: Over the past several months, the U. S. economy has experienced rising
energy and food prices, slower GDP growth, a sluggish real estate market,
and continued repercussions from the subprime-mortgage situation. How did
Pioneer Equity Income Fund fare against that barrage of negative economic
news?
A: It was a difficult period for the stock market. In the six months ended
April 30, 2008, Pioneer Equity Income Fund Class A shares returned -6.90%
at net asset value, including reinvestment of income-dividend and
capital-gains distributions. On the same, total-return basis, our
benchmark index, the Russell 1000 Value Index, returned -9.83% over the
same period, and the Standard & Poor's 500 Index returned -9.63%.
Meanwhile the average fund in the Lipper Analytical Services
equity-income category returned -8.82% over the same period. While the
results for the Fund were better than those of the comparables, they were
still disappointing to us, just as, we are sure, they were to you.
However, the stock market does record setbacks from time to time, and the
key we have always found is to focus on longer-term values and stay
invested. Indeed, by the end of March the market had started to recover,
an occurrence that would have been very hard to anticipate had one been
listening only to the steady drumbeat of dire economic forecasts.
Q: Please discuss performance during the semiannual reporting period ended
April 30, 2008, in more detail, including sector exposures and individual
stock positions that helped or hurt results.
A: The biggest positive contributors to results for the six months ended April
30, 2008 were the Fund's stock selections in financial services,
industrials, information technology, and utilities. Also helping were an
underweight versus the benchmark Russell 1000 Value Index in financial
services, which did poorly; and overweights
4
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
versus the Russell Index in materials and utilities, which did well.
Detractors from results were the Fund's underweight and stock selection in
the top-performing energy sector, and our stock selection in health care.
The Fund benefited considerably by not owning two of the worst-performing,
large-cap financials, Citigroup and American International Group (AIG),
though it did, unfortunately, have positions in some of the troubled
regional banks and savings and loans, including National City, Wachovia,
and Washington Mutual. Recognizing the serious problems at all three of
the latter institutions, we did at least sell them from the Fund
completely before they had done as much damage as they might have. We also
held one financial that did extremely well: SAFECO rose impressively after
receiving a premium takeover bid from another insurance company.
The rest of the portfolio was sprinkled with other winners and losers.
Gorman-Rupp, the pump manufacturer, rode the strength in the industrials
sector; Equitable Resources and Questar, with their energy operations,
prospered as oil and natural gas prices rose; Compass Minerals, provider
of road salt and fertilizer ingredients, enjoyed record profits; and
Microchip Technology proved to be a stable refuge in the fast-changing
world of technology. On the negative side, bad news from Merck in regard
to one of its prescription anti-cholesterol drugs sent the shares into a
tailspin. Johnson Controls saw weakness in both its automotive interiors
business and its building controls division. Still, there were more
positive than negative contributors from a relative-performance
standpoint, and consequently the Fund did outperform its benchmark as well
as our peer Funds.
Q: Oftentimes a weak stock market presents investment opportunities. Did you
find some in the past six months, and, overall, can you discuss changes
you made to the portfolio?
A: In the half-year ended April 30, 2008, we added nine names to the portfolio
and eliminated 14. We did see opportunities in the market, but we also
concluded that some of the Fund's existing holdings had suffered
impairments in earnings power, both through their own deficient
management and because of forces in the economy. So we were sellers as
well as buyers of securities during the period. Among the stocks we
introduced to the Fund were: Nucor, a company that began with a single
"mini-mill" back
5
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/08 (continued)
- --------------------------------------------------------------------------------
in 1968 and is now perhaps the most important steel maker in the country;
Teck Cominco, a Canadian-based miner of zinc, copper, gold, coal, and
other minerals; VF, whose clothing brands include Wrangler and Lee blue
jeans and The North Face outdoor wear; Hershey, chocolate confectioner
extraordinaire; and Northern Trust, provider of fiduciary, asset custody,
and investment management services.
Aside from the sales we already mentioned in the financial sector, we sold
a number of stocks from the Fund for which we could no longer see
compelling prospects. Macy's, a struggling department store company,
Masco, a challenged manufacturer of plumbing supplies and hardware, and
Great Plains Energy, an electric utility with uncertain growth potential,
were three examples.
Q: With all the uneasiness in the markets since the middle of 2007, though
against the backdrop of the aggressive actions taken by the U. S. Federal
Reserve and the U. S. government in response to that uneasiness, what is
your outlook for the coming months?
A: By no means are we "out of the woods" yet in regard to the problems in the
financial sector and the housing industry. The effects of those problems,
plus the very high energy prices, on consumer spending continue to be
felt. At the same time, many American companies have substantial business
overseas, where economic growth has been strong of late. Actually,
corporate earnings so far this calendar year have been remarkably good
outside the financial sector. The recovery in the stock market from the
lows in the middle of March 2008 would seem to indicate that investors
have noticed. What one must also keep in mind is that the stock market
does not always respond so much to near-term economic news as it does to
potential developments six to twelve months in the future. That is why
the stock market is sometimes called a "discounting mechanism."
Nevertheless, the environment is not without its risks, and so we remain
"defensive" in our approach. For the coming months, we are especially
attracted to some of the sectors in which an investor can find successful
companies with self-financing capability and significant international as
well as domestic business. Certainly there are companies in information
technology, health care, and consumer staples that have those qualities.
On a longer-term
6
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
basis, we also still like many companies in the materials and industrials
sectors. Within the beleaguered financial sector, we believe there will be
good opportunities "as the coast clears" and we again have decent
visibility on the companies' operations.
We appreciate 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
the market forecast discussed will be realized.
7
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 4/30/08
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(as a percentage of total investment portfolio)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 92.4%
Temporary Cash Investments 7.6%
Sector Distribution
- --------------------------------------------------------------------------------
(as a percentage of equity holdings)
[THE FOLLOWING DATA IS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 19.5%
Utilities 14.1%
Materials 13.3%
Consumer Staples 13.1%
Consumer Discretionary 9.8%
Industrials 9.5%
Energy 7.8%
Health Care 5.8%
Telecommunication Services 4.8%
Information Technology 2.3%
10 Largest Holdings
- --------------------------------------------------------------------------------
(as a percentage of equity holdings)*
1. Questar Corp. 3.50%
2. Chevron Corp. 3.19
3. Alcoa, Inc. 2.83
4. Gorman-Rupp Co. 2.82
5. Dow Chemical Co. 2.61
6. Equitable Resources, Inc. 2.49
7. PACCAR, Inc. 2.47
8. Johnson Controls, Inc. 2.20
9. ConocoPhillips 2.16
10. H.J. Heinz Co., Inc. 2.00
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
Net Asset Value Per Share
- --------------------------------------------------------------------------------
Class 4/30/08 10/31/07
- ------- --------- ---------
A $28.66 $33.10
B $28.46 $32.88
C $28.34 $32.75
R $28.87 $33.34
Y $28.82 $33.28
Z $28.67 $33.12
Distributions Per Share
- --------------------------------------------------------------------------------
11/1/07 - 4/30/08
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.3832 $- $1.8091
B $0.2575 $- $1.8091
C $0.2742 $- $1.8091
R $0.3622 $- $1.8091
Y $0.4399 $- $1.8091
Z $0.4414 $- $1.8091
9
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/08 CLASS A SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price, compared
to that of the Russell 1000 Value Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
4/98 $ 9,425 $10,000
$10,579 $11,409
4/00 $10,025 $10,966
$11,372 $11,671
4/02 $10,842 $12,215
$ 9,033 $ 9,756
4/04 $11,184 $12,318
$12,829 $14,033
4/06 $14,819 $16,602
$17,968 $19,614
4/08 $16,618 $17,855
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of April 30, 2008)
Net Asset Public Offering
Period Value (NAV) Price (POP)
10 Years 5.84% 5.21%
5 Years 12.97 11.64
1 Year -7.51 -12.84
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
Gross Net
1.03% 1.03%
- --------------------------------------------------------------------------------
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.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
10
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/08 CLASS B SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
4/98 $10,000 $10,000
$11,145 $11,409
4/00 $10,478 $10,966
$11,790 $11,671
4/02 $11,152 $12,215
$ 9,217 $ 9,756
4/04 $11,317 $12,318
$12,866 $14,033
4/06 $14,733 $16,602
$17,709 $19,614
4/08 $16,241 $17,855
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of April 30, 2008)
If If
Period Held Redeemed
10 Years 4.97% 4.97%
5 Years 12.00 12.00
1 Year -8.29 -11.70
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
Gross Net
1.90% 1.90%
- --------------------------------------------------------------------------------
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.
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.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
11
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/08 CLASS C SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
4/98 $10,000 $10,000
$11,141 $11,409
4/00 $10,459 $10,966
$11,764 $11,671
4/02 $11,117 $12,215
$ 9,188 $ 9,756
4/04 $11,283 $12,318
$12,840 $14,033
4/06 $14,712 $16,602
$17,702 $19,614
4/08 $16,248 $17,855
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of April 30, 2008)
If If
Period Held Redeemed
10 Years 4.97% 4.97%
5 Years 12.08 12.08
1 Year -8.22 -8.22
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
Gross Net
1.82% 1.82%
- --------------------------------------------------------------------------------
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.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
12
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/08 CLASS R SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
4/98 $10,000 $10,000
$11,170 $11,409
4/00 $10,532 $10,966
$11,888 $11,671
4/02 $11,277 $12,215
$ 9,349 $ 9,756
4/04 $11,567 $12,318
$13,251 $14,033
4/06 $15,284 $16,602
$18,494 $19,614
4/08 $17,076 $17,855
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of April 30, 2008)
If If
Period Held Redeemed
10 Years 5.50% 5.50%
5 Years 12.80 12.80
1 Year -7.67 -7.67
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
Gross Net
1.38% 1.38%
- --------------------------------------------------------------------------------
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 R shares are not subject to sales charges and are available for limited
groups of eligible investors, including retirement plan investors.
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.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
13
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/08 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
4/98 $10,000 $10,000
$11,261 $11,409
4/00 $10,711 $10,966
$12,191 $11,671
4/02 $11,673 $12,215
$ 9,775 $ 9,756
4/04 $12,160 $12,318
$14,010 $14,033
4/06 $16,248 $16,602
$19,780 $19,614
4/08 $18,359 $17,855
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of April 30, 2008)
If If
Period Held Redeemed
10 Years 6.26% 6.26%
5 Years 13.43 13.43
1 Year -7.19 -7.19
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
Gross Net
0.66% 0.66%
- --------------------------------------------------------------------------------
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 Y shares for the period prior to the commencement of
operation of Class Y shares on July 2, 1998 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 on July 2, 1998
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.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
14
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/08 CLASS Z SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
[THE FOLLOWING DATA IS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Income Fund Russell 1000 Value Index
4/98 $10,000 $10,000
$11,226 $11,409
4/00 $10,639 $10,966
$12,068 $11,671
4/02 $11,505 $12,215
$ 9,585 $ 9,756
4/04 $11,869 $12,318
$13,614 $14,033
4/06 $15,725 $16,602
$19,067 $19,614
4/08 $17,692 $17,855
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of April 30, 2008)
If If
Period Held Redeemed
10 Years 5.87% 5.87%
5 Years 13.04 13.04
1 Year -7.21 -7.21
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2008)
Gross Net
0.78% 0.78%
- --------------------------------------------------------------------------------
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 July
6, 2007 would have been higher. Class Z shares are not subject to sales charges
and are available for limited groups of eligible 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.
The net expense ratio reflects contractual expense limitations currently in
effect through 3/1/10 for Class Z Shares. There can be no assurance that Pioneer
will extend the expense limitations beyond such time. Please see the prospectus
and financial statements for more information.
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in any index.
15
Pioneer Equity Income 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 Equity Income Fund
Based on actual returns from November 1, 2007 through April 30, 2008.
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 11/1/07
Ending Account $ 931.00 $ 927.10 $ 927.70 $ 930.00 $ 932.70 $ 932.70
Value On 4/30/08
Expenses Paid $ 5.23 $ 9.34 $ 8.87 $ 6.09 $ 3.51 $ 3.41
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.09%,
1.95%,1.85%, 1.27%, 0.73% and 0.71%, 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 182/366 (to reflect the
one-half year period).
16
Pioneer Equity Income 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 Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from November 1, 2007 through April 30, 2008.
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 11/1/07
Ending Account $1,019.44 $1,015.17 $1,015.66 $1,018.55 $1,021.23 $1,021.33
Value On 4/30/08
Expenses Paid $ 5.47 $ 9.77 $ 9.27 $ 6.37 $ 3.67 $ 3.57
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.09%, 1.95%,
1.85%, 1.27%, 0.73% and 0.71%, 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 182/366 (to reflect the
one-half year period).
17
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/08 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 99.9%
Energy - 7.7%
Integrated Oil & Gas - 6.7%
407,200 Chevron Corp. $ 39,152,280
307,560 ConocoPhillips 26,496,294
210,000 Royal Dutch Shell Plc (A.D.R.) 16,865,100
--------------
$ 82,513,674
--------------
Oil & Gas Storage & Transportation - 1.0%
520,000 Spectra Energy Corp. $ 12,844,000
--------------
Total Energy $ 95,357,674
--------------
Materials - 13.2%
Aluminum - 2.8%
1,000,000 Alcoa, Inc. $ 34,780,000
--------------
Diversified Chemical - 3.8%
800,000 Dow Chemical Co. $ 32,120,000
300,000 E.I. du Pont de Nemours & Co. 14,673,000
--------------
$ 46,793,000
--------------
Diversified Metals & Mining - 1.7%
220,000 Compass Minerals International, Inc. $ 13,860,000
150,000 Teck Cominco Ltd. (Class B) 6,550,500
--------------
$ 20,410,500
--------------
Forest Products - 0.9%
180,000 Weyerhaeuser Co. $ 11,498,400
--------------
Industrial Gases - 1.2%
150,000 Air Products & Chemicals, Inc. $ 14,764,500
--------------
Specialty Chemicals - 1.6%
900,000 Valspar Corp. $ 19,782,000
--------------
Steel - 1.2%
200,000 Nucor Corp. $ 15,100,000
--------------
Total Materials $ 163,128,400
--------------
Capital Goods - 8.8%
Aerospace & Defense - 1.0%
170,000 United Technologies Corp. $ 12,319,900
--------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Construction, Farm Machinery & Heavy Trucks - 2.5%
641,905 PACCAR, Inc. $ 30,374,945
--------------
Electrical Component & Equipment - 1.5%
350,000 Emerson Electric Co. $ 18,291,000
--------------
Industrial Machinery - 3.8%
988,195 Gorman-Rupp Co.+ (b) $ 34,616,471
350,000 The Timken Co. 12,652,500
--------------
$ 47,268,971
--------------
Total Capital Goods $ 108,254,816
--------------
Commercial Services & Supplies - 0.7%
Office Services & Supplies - 0.7%
240,000 Mine Safety Appliances Co. (b) $ 8,920,800
--------------
Total Commercial Services & Supplies $ 8,920,800
--------------
Automobiles & Components - 2.2%
Auto Parts & Equipment - 2.2%
766,800 Johnson Controls, Inc. $ 27,037,368
--------------
Total Automobiles & Components $ 27,037,368
--------------
Consumer Durables & Apparel - 1.2%
Apparel, Accessories & Luxury Goods - 1.2%
200,000 VF Corp. $ 14,876,000
--------------
Total Consumer Durables & Apparel $ 14,876,000
--------------
Consumer Services - 2.0%
Leisure Facilities - 1.5%
780,697 Cedar Fair, L.P. $ 18,408,835
--------------
Restaurants - 0.5%
100,000 McDonald's Corp. $ 5,958,000
--------------
Total Consumer Services $ 24,366,835
--------------
Media - 3.5%
Broadcasting & Cable TV - 0.9%
500,000 CBS Corp. (Class B) $ 11,535,000
--------------
Movies & Entertainment - 0.5%
300,000 Regal Entertainment Group (b) $ 5,688,000
--------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Publishing - 2.1%
150,000 McGraw-Hill Co., Inc. $ 6,148,500
1,000,000 New York Times Co. (b) 19,500,000
--------------
$ 25,648,500
--------------
Total Media $ 42,871,500
--------------
Retailing - 1.0%
Distributors - 1.0%
280,000 Genuine Parts Co. $ 11,888,800
--------------
Total Retailing $ 11,888,800
--------------
Food, Beverage & Tobacco - 10.5%
Packaged Foods & Meats - 9.4%
520,000 Campbell Soup Co. $ 18,096,000
80,000 ConAgra, Inc. (b) 1,884,800
265,000 General Mills, Inc. 16,006,000
522,550 H.J. Heinz Co., Inc. 24,575,527
320,000 Hershey Foods Corp. (b) 11,961,600
180,000 Kellogg Co. 9,210,600
650,000 Kraft Foods, Inc. 20,559,500
100,000 The J.M. Smucker Co. 4,988,000
100,000 William Wrigley Jr. Co. (b) 7,616,000
--------------
$ 114,898,027
--------------
Soft Drinks - 1.1%
100,000 Coca-Cola Co. $ 5,887,000
116,300 PepsiCo, Inc. 7,970,039
--------------
$ 13,857,039
--------------
Total Food, Beverage & Tobacco $ 128,755,066
--------------
Household & Personal Products - 2.6%
Household Products - 2.6%
188,800 Clorox Co. $ 10,006,400
306,000 Colgate-Palmolive Co. 21,634,200
--------------
$ 31,640,600
--------------
Total Household & Personal Products $ 31,640,600
--------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Pharmaceuticals & Biotechnology - 5.8%
Pharmaceuticals - 5.8%
306,600 Abbott Laboratories $ 16,173,150
240,000 Eli Lilly & Co. 11,553,600
619,700 Merck & Co., Inc. 23,573,388
1,000,000 Pfizer, Inc. 20,110,000
--------------
$ 71,410,138
--------------
Total Pharmaceuticals & Biotechnology $ 71,410,138
--------------
Banks - 7.0%
Diversified Banks - 3.0%
718,700 U.S. Bancorp $ 24,356,743
431,324 Wells Fargo & Co. 12,831,889
--------------
$ 37,188,632
--------------
Regional Banks - 4.0%
773,300 Regions Financial Corp. (b) $ 16,950,736
275,000 SunTrust Banks, Inc. 15,331,250
700,000 Whitney Holding Corp. (b) 16,387,000
--------------
$ 48,668,986
--------------
Total Banks $ 85,857,618
--------------
Diversified Financials - 2.0%
Asset Management & Custody Banks - 1.1%
100,000 Northern Trust Corp. $ 7,411,000
100,000 T. Rowe Price Associates, Inc. 5,856,000
--------------
$ 13,267,000
--------------
Diversified Financial Services - 0.9%
300,000 Bank of America Corp. $ 11,262,000
--------------
Total Diversified Financials $ 24,529,000
--------------
Insurance - 5.7%
Life & Health Insurance - 1.6%
351,484 Lincoln National Corp. $ 18,895,780
--------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Property & Casualty Insurance - 4.1%
410,200 Chubb Corp. $ 21,728,294
359,300 SAFECO Corp. 23,979,682
100,000 The Traveler Companies, Inc. 5,040,000
--------------
$ 50,747,976
--------------
Total Insurance $ 69,643,756
--------------
Real Estate - 4.9%
Diversified Real Estate Investment Trust - 1.0%
350,000 Liberty Property Trust $ 12,260,500
--------------
Residential Real Estate Investment Trust - 1.1%
330,000 Equity Residential Property Trust $ 13,701,600
--------------
Retail Real Estate Investment Trusts - 1.8%
225,000 Developers Diversified Realty Corp. (b) $ 9,663,750
300,000 Kimco Realty Corp. (b) 11,973,000
--------------
$ 21,636,750
--------------
Specialized Real Estate Investment Trust - 1.0%
300,000 Plum Creek Timber Co., Inc. (b) $ 12,252,000
--------------
Total Real Estate $ 59,850,850
--------------
Semiconductors - 2.2%
Semiconductor Equipment - 0.7%
500,000 Applied Materials, Inc. $ 9,330,000
--------------
Semiconductors - 1.5%
500,000 Microchip Technology, Inc. (b) $ 18,375,000
--------------
Total Semiconductors $ 27,705,000
--------------
Telecommunication Services - 4.8%
Integrated Telecommunication Services - 4.8%
532,500 AT&T Corp. $ 20,613,075
1,000,000 Citizens Communications Co. (Class B) 10,720,000
100,000 Embarq Corp. 4,157,000
339,584 Verizon Communications, Inc. 13,067,192
890,847 Windstream Corp. 10,458,544
--------------
$ 59,015,811
--------------
Total Telecommunication Services $ 59,015,811
--------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Utilities - 14.1%
Electric Utilities - 3.0%
740,000 Duke Energy Corp. $ 13,549,400
200,000 Edison International 10,434,000
340,000 Southern Co. 12,658,200
--------------
$ 36,641,600
--------------
Gas Utilities - 6.9%
326,500 AGL Resources, Inc. $ 11,101,000
460,000 Equitable Resources, Inc. 30,530,200
693,200 Questar Corp. 42,999,196
--------------
$ 84,630,396
--------------
Multi-Utilities - 4.2%
530,000 NSTAR $ 17,071,300
529,000 PG&E Corp. 21,160,000
314,600 Public Service Enterprise Group, Inc. 13,814,085
--------------
$ 52,045,385
--------------
Total Utilities $ 173,317,381
--------------
TOTAL COMMON STOCKS
(Cost $964,560,546) $1,228,427,413
--------------
Principal
Amount
TEMPORARY CASH INVESTMENTS - 8.2%
Repurchase Agreements - 0.2%
$ 575,000 Bank of America Corp., 1.98%, dated 4/30/08,
repurchase price of $575,000 plus accrued
interest on 5/1/08 collateralized by the
following:
$359,215 Federal National Mortgage
Association, 5.0%, 10/1/34
$27,156 Freddie Mac Giant, 5.0%, 4/1/38
$255,800 Federal National Mortgage
Association, 5.5%, 7/1/37 $ 575,000
The accompanying notes are an integral part of these financial statements. 23
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Repurchase Agreements - (continued)
$575,000 Barclays Plc, 1.98%, dated 4/30/08, repurchase
price of $575,000 plus accrued interest on
5/1/08 collateralized by the following:
$174,600 Freddie Mac Giant, 5.0 - 7.0%,
5/1/20 - 11/1/47
$46,885 Federal Home Loan Mortgage Corp.,
5.927 - 6.28%, 8/1/36 - 12/1/36
$60,322 Federal National Mortgage Association
(ARM), 4.777 - 6.432%, 8/1/35 - 11/1/37
$434,024 Federal National Mortgage Associa-
tion, 4.0 - 6.5%, 9/1/20 - 2/1/48 $ 575,000
575,000 Deutsche Bank AG, 2.0%, dated 4/30/08,
repurchase price of $575,000 plus accrued
interest on 5/1/08 collateralized by the
following:
$417,197 Freddie Mac Giant, 4.0 - 7.0%,
4/1/19 - 4/1/39
$51,746 Federal Home Loan Mortgage Corp.,
4.955 - 5.894%, 2/1/37 - 4/1/38
$126,213 Federal National Mortgage Association
(ARM), 4.414 - 6.308%, 8/1/12 - 6/1/36
$200,380 U.S Treasury Strip, 0.0%,
11/15/21 - 8/15/26 575,000
575,000 JP Morgan Chase & Co., 2.0%, dated 4/30/08,
repurchase price of $575,000 plus accrued
interest on 5/1/08 collateralized by
$611,124 Federal National Mortgage Associa-
tion, 4.5 - 7.0%, 1/1/21 - 2/1/38 575,000
--------------
$ 2,300,000
--------------
24 The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal
Amount Value
Security Lending Collateral - 8.0%
Certificates of Deposit:
$ 822,788 Banco Santander NY, 2.80%, 10/7/08 $ 823,142
914,209 Bank Bovespa NY, 2.86%, 5/6/08 914,227
2,285,524 Bank of America, 2.80%, 8/22/08 2,285,524
822,788 Bank of Scotland NY, 2.89%, 11/4/08 821,424
1,142,762 Bank of Scotland NY, 3.03%, 9/26/08 1,141,476
2,285,524 BNP Paribas NY, 2.88%, 7/23/08 2,285,524
365,684 BNP Paribas NY, 3.035%, 5/23/08 365,751
1,371,314 Calyon NY, 2.85%, 8/25/08 1,371,357
457,105 Calyon NY, 2.69%, 01/16/09 724,313
2,285,524 Citibank, 2.85%, 7/29/08 2,285,524
1,695,858 Dexia Bank NY, 3.37%, 09/29/08 1,691,946
196,555 Fortis, 3.11%, 09/30/08 196,174
457,105 Fortis, 3.14%, 06/30/08 456,851
2,285,524 NORDEA NY, 2.81%, 8/29/08 2,285,524
365,684 Rabobank Nederland NY, 2.37%, 8/29/08 365,521
1,142,762 Royal Bank of Canada NY, 2.57%, 7/15/08 1,142,762
882,212 Skandinavian Enskilda Bank NY, 2.70%, 7/17/08 882,231
265,121 Skandinavian Enskilda Bank NY, 3.18%, 09/22/08 264,773
457,105 Skandinavian Enskilda Bank NY, 3.06% 02/13/09 455,687
914,209 Svenska Bank NY, 2.70%, 7/17/08 914,229
457,105 Wachovia Bank, 2.82%, 6/9/08 2,102,682
--------------
$ 23,776,638
--------------
Commercial Paper:
246,111 Bank of America, 2.62%, 8/26/08 $ 699,368
456,865 Calyon, 2.71%, 5/8/08 456,865
685,657 CBA, 2.71%, 7/11/08 682,019
457,104 Deutsche Bank Financial, 2.55%, 7/9/08 454,888
365,683 Deutsche Bank Financial, 2.55%, 6/16/08 364,497
548,526 HSBC, 2.67%, 6/16/08 546,661
457,105 HSBC, 2.72%, 6/9/08 455,787
457,104 HSBC, 2.89% 7/21/08 454,153
457,105 Lloyds Bank, 2.60%, 6/6/08 455,921
1,142,762 Macquarie Bank, 2.87%, 6/26/08 1,137,429
The accompanying notes are an integral part of these financial statements. 25
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
Principal
Amount Value
Security Lending Collateral - (continued)
$ 457,105 Macquarie Bank, 2.87%, 6/9/08 $ 455,688
685,657 Natixis, 2.87%, 7/10/08 681,857
685,657 Natixis, 2.87%, 7/21/08 680,998
455,774 PARFIN, 2.70%, 6/9/08 455,774
457,105 RAB USA, 2.61%, 6/10/08 455,784
914,209 Royal Bank of Scotland, 2.66%, 10/21/08 901,205
438,821 Royal Bank of Scotland, 3.00%, 6/12/08 437,464
365,684 Societe Generale, 2.85%, 5/2/08 365,655
1,142,762 Societe Generale, 2.93%, 7/30/08 1,134,448
457,105 Societe Generale, 2.98%, 7/2/08 454,774
2,056,971 Unicredit Group, 2.89%, 7/17/08 2,043,670
457,104 Wachovia, 3.62%,10/28/08 455,597
365,165 WestPac, 2.72%, 7/10/08 363,218
457,104 WestPac, 2.72%, 7/7/08 454,808
685,657 WestPac, 2.77%, 7/9/08 682,043
--------------
$ 15,730,572
--------------
Tri-party Repurchase Agreements:
16,221,229 Barclay's Bank,1.96% 5/1/08 $ 16,221,229
13,713,141 Deutsche Bank, 1.97% 5/1/08 13,713,141
13,713,141 Lehman Brothers, 1.99% 5/1/08 13,713,141
13,713,141 Merrill Lynch, 1.95% 5/1/08 13,713,141
--------------
$ 57,360,653
--------------
Other:
1,599,866 ABS CFAT 2008-A A1 $ 1,599,866
--------------
Total Securities Lending Collateral $ 98,467,730
--------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $100,767,730) $ 100,767,730
--------------
TOTAL INVESTMENT IN SECURITIES - 108.1%
(Cost $1,065,328,276) (a) $1,329,195,143
--------------
OTHER ASSETS AND LIABILITIES - (8.1)% $ (99,393,477)
--------------
TOTAL NET ASSETS - 100.0% $1,229,801,666
==============
26 The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
* Non-income producing security.
+ Investment held by the Fund representing 5% or more of the voting stock of
such company.
(a) At April 30, 2008, the net unrealized gain on investments based on cost
for federal income tax purposes of $1,073,568,358 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $314,802,999
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (59,176,214)
------------
Net unrealized gain $255,626,785
============
(b) At April 30, 2008, the following securities were out on loan:
Shares Security Value
42,000 ConAgra, Inc. $ 989,520
23,800 Developers Diversified Realty Corp. 1,022,210
111,100 Gorman-Rupp Co. 3,891,833
190,000 Hershey Foods Corp. 7,102,200
26,300 Kimco Realty Corp. 1,049,633
461,400 Microchip Technology 16,956,450
110,000 Mine Safety Appliances Co. 4,088,700
990,000 New York Times Co. 19,305,000
88,200 Plum Creek Timber Co., Inc. 3,602,088
297,000 Regal Entertainment Group 5,631,120
723,000 Regions Financial Corp. 15,848,160
525,600 Whitney Holding Corp. 12,304,296
41,000 William Wrigley Jr. Co. 3,122,560
-----------
$94,913,770
===========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended April 30, 2008 aggregated $156,904,636 and $238,767,540,
respectively.
The accompanying notes are an integral part of these financial statements. 27
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 4/30/08 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities of unaffiliated issuers, at value
(cost $1,057,107,466) $1,294,578,672
Investment in securities of affiliated issuers, at value
(cost $7,906,480) 34,616,471
--------------
Total investment in securities, at value
(including securities loaned of $94,913,770)
(cost $1,065,328,276) $1,329,195,143
Cash 2,003,207
Receivables -
Fund shares sold 1,534,904
Dividends and interest 1,668,209
Other 104,160
--------------
Total assets $1,334,505,623
--------------
LIABILITIES:
Payables -
Investment securities purchased $ 4,376,616
Fund shares repurchased 1,520,514
Upon return of securities loaned 98,467,730
Due to affiliates 155,064
Accrued expenses 184,033
--------------
Total liabilities $ 104,703,957
--------------
NET ASSETS:
Paid-in capital $ 970,043,873
Undistributed net investment income 8,221,641
Accumulated net realized loss on investments (12,330,715)
Net unrealized gain on investments 263,866,867
--------------
Total net assets $1,229,801,666
==============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $903,867,784/31,538,373 shares) $ 28.66
==============
Class B (based on $105,645,173/3,712,480 shares) $ 28.46
==============
Class C (based on $132,465,114/4,674,886 shares) $ 28.34
==============
Class R (based on $77,499,365/2,684,145 shares) $ 28.87
==============
Class Y (based on $10,223,046/354,738 shares) $ 28.82
==============
Class Z (based on $101,184/3,529 shares) $ 28.67
==============
MAXIMUM OFFERING PRICE:
Class A ($28.66 [divided by] 94.25%) $ 30.41
==============
28 The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/08
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $5,400) $22,670,971
Interest 8,547
Income from securities loaned, net 290,576
-----------
Total investment income $ 22,970,094
-------------
EXPENSES:
Management fees $ 3,757,190
Transfer agent fees and expenses
Class A 746,498
Class B 156,747
Class C 115,198
Class R 30,053
Class Y 2,411
Class Z 11
Distribution fees
Class A 1,147,829
Class B 560,458
Class C 679,553
Class R 176,067
Administrative fees 140,895
Custodian fees 23,904
Registration fees 66,068
Professional fees 66,794
Printing expense 43,317
Fees and expenses of nonaffiliated trustees 13,325
Miscellaneous 123,858
-----------
Total expenses $ 7,850,176
Less fees paid indirectly (25,026)
-------------
Net expenses $ 7,825,150
-------------
Net investment income $ 15,144,944
-------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss on investments $ (12,330,041)
-------------
Change in net unrealized gain on investments $(106,915,275)
-------------
Net loss on investments $(119,245,316)
-------------
Net decrease in net assets resulting from operations $(104,100,372)
==============
The accompanying notes are an integral part of these financial statements. 29
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/08 and the Year Ended 10/31/07, respectively
Six Months
Ended
4/30/08 Year Ended
(unaudited) 10/31/07
FROM OPERATIONS:
Net investment income $ 15,144,944 $ 28,531,087
Net realized gain (loss) on investments (12,330,041) 78,019,956
Change in net unrealized gain (loss) on investments (106,915,275) 11,920,879
-------------- --------------
Net increase (decrease) in net assets resulting
from operations $ (104,100,372) $ 118,471,922
-------------- --------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.38 and $0.73 per share, respectively) $ (12,515,978) $ (22,068,606)
Class B ($0.26 and $0.44 per share, respectively) (1,023,765) (2,017,143)
Class C ($0.27 and $0.46 per share, respectively) (1,327,684) (2,214,658)
Class R ($0.36 and $0.67 per share, respectively) (892,161) (931,893)
Class Y ($0.44 and $0.84 per share, respectively) (149,366) (343,399)
Class Z ($0.44 and $0.22 per share, respectively) (1,434) (644)
Net realized gain:
Class A ($1.81 and $2.89 per share, respectively) (58,022,033) (73,275,075)
Class B ($1.81 and $2.89 per share, respectively) (7,250,041) (13,350,148)
Class C ($1.81 and $2.89 per share, respectively) (8,556,663) (12,274,923)
Class R ($1.81 and $2.89 per share, respectively) (3,902,964) (2,416,852)
Class Y ($1.81 and $2.89 per share, respectively) (569,956) (1,124,943)
Class Z ($1.81 and $0.00 per share, respectively) (5,293) -
-------------- --------------
Total distributions to shareowners $ (94,217,338) $ (130,018,284)
-------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 154,556,243 $ 534,233,460
Reinvestment of distributions 81,896,822 112,352,076
Cost of shares repurchased (243,221,541) (375,536,460)
-------------- --------------
Net increase (decrease) in net assets resulting
from Fund share transactions $ (6,768,476) $ 271,049,076
-------------- --------------
Net increase (decrease) in net assets $ (205,086,186) $ 259,502,714
NET ASSETS:
Beginning of period 1,434,887,852 1,175,385,138
-------------- --------------
End of period $1,229,801,666 $1,434,887,852
============== ==============
Undistributed net investment income, end of period $ 8,221,641 $ 8,987,085
============== ==============
30 The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
'08 Shares '08 Amount '07 Shares '07 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 3,663,401 $ 106,425,825 12,174,216 $ 403,915,364
Reinvestment of distributions 2,161,464 63,663,495 2,735,415 86,631,034
Less shares repurchased (6,425,763) (183,109,584) (7,845,064) (258,834,178)
---------- -------------- ---------- --------------
Net increase (decrease) (600,898) $ (13,020,264) 7,064,567 $ 231,712,220
=========== =============== =========== ===============
CLASS B
Shares sold 231,101 $ 6,588,622 794,316 $ 25,972,012
Reinvestment of distributions 225,433 6,605,695 396,433 12,397,850
Less shares repurchased (837,911) (23,680,673) (1,770,146) (57,964,408)
---------- -------------- ---------- --------------
Net decrease (381,377) $ (10,486,356) (579,397) $ (19,594,546)
=========== =============== =========== ===============
CLASS C
Shares sold 425,553 $ 12,147,587 1,459,263 $ 47,538,714
Reinvestment of distributions 229,724 6,700,442 311,971 9,732,776
Less shares repurchased (790,743) (22,330,023) (1,175,007) (38,341,256)
---------- -------------- ---------- --------------
Net increase (decrease) (135,466) $ (3,481,994) 596,227 $ 18,930,234
=========== =============== =========== ===============
CLASS R
Shares sold 835,182 $ 24,616,342 1,465,477 $ 49,096,702
Reinvestment of distributions 158,076 4,684,789 101,462 3,246,489
Less shares repurchased (326,118) (9,440,979) (324,793) (10,787,236)
---------- -------------- ---------- --------------
Net increase 667,140 $ 19,860,152 1,242,146 $ 41,555,955
=========== =============== =========== ===============
CLASS Y
Shares sold 166,071 $ 4,757,699 229,144 $ 7,610,668
Reinvestment of distributions 8,173 242,258 10,765 343,927
Less shares repurchased (164,197) (4,657,003) (279,975) (9,609,382)
---------- -------------- ---------- --------------
Net increase (decrease) 10,047 $ 342,954 (40,066) $ (1,654,787)
=========== =============== =========== ===============
CLASS Z
Shares sold 713 $ 20,168 2,926 $ 100,000
Reinvestment of distributions 5 143 - -
Less shares repurchased (115) (3,279) - -
---------- -------------- ---------- --------------
Net increase 603 $ 17,032 2,926 $ 100,000
=========== =============== =========== ===============
The accompanying notes are an integral part of these financial statements. 31
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/08 Year Ended
(unaudited) 10/31/07
CLASS A
Net asset value, beginning of period $ 33.10 $ 33.53
------- ----------
Net increase (decrease) from investment operations:
Net investment income $ 0.37 $ 0.69
Net realized and unrealized gain (loss) on investments (2.62) 2.50
------- ----------
Net increase (decrease) from investment operations $ (2.25) $ 3.19
Distributions to shareowners:
Net investment income (0.38) (0.73)
Net realized gain (1.81) (2.89)
------- ----------
Net increase (decrease) in net asset value $ (4.44) $ (0.43)
------- ----------
Net asset value, end of period $ 28.66 $ 33.10
======= ==========
Total return* (6.90)% 10.22%
Ratio of net expenses to average net assets+ 1.09%** 1.03%
Ratio of net investment income to average net assets+ 2.59%** 2.27%
Portfolio turnover rate 25%** 14%
Net assets, end of period (in thousands) $903,868 $1,063,910
Ratios with reduction for fees paid indirectly:
Net expenses 1.09%** 1.02%
Net investment income 2.59%** 2.28%
Year Ended Year Ended Year Ended Year Ended
10/31/06 10/31/05 10/31/04 10/31/03
CLASS A
Net asset value, beginning of period $ 29.23 $ 26.91 $ 23.57 $ 20.80
-------- -------- -------- --------
Net increase (decrease) from investment operations:
Net investment income $ 0.68 $ 0.61 $ 0.52 $ 0.47
Net realized and unrealized gain (loss) on investments 5.36 2.31 3.30 2.78
-------- -------- -------- --------
Net increase (decrease) from investment operations $ 6.04 $ 2.92 $ 3.82 $ 3.25
Distributions to shareowners:
Net investment income (0.66) (0.60) (0.48) (0.48)
Net realized gain (1.08) - - -
-------- -------- -------- --------
Net increase (decrease) in net asset value $ 4.30 $ 2.32 $ 3.34 $ 2.77
-------- -------- -------- --------
Net asset value, end of period $ 33.53 $ 29.23 $ 26.91 $ 23.57
======== ======== ======== ========
Total return* 21.61% 10.87% 16.33% 15.89%
Ratio of net expenses to average net assets+ 1.04% 1.06% 1.08% 1.17%
Ratio of net investment income to average net assets+ 2.27% 2.11% 2.07% 2.24%
Portfolio turnover rate 32% 14% 22% 15%
Net assets, end of period (in thousands) $840,640 $668,556 $600,835 $501,283
Ratios with reduction for fees paid indirectly:
Net expenses 1.03% 1.06% 1.08% 1.17%
Net investment income 2.28% 2.11% 2.07% 2.24%
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
32 The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/08 Year Ended
(unaudited) 10/31/07
CLASS B
Net asset value, beginning of period $ 32.88 $ 33.32
------- --------
Net increase (decrease) from investment operations:
Net investment income $ 0.27 $ 0.51
Net realized and unrealized gain (loss) on investments (2.62) 2.38
------- --------
Net increase (decrease) from investment operations $ (2.35) $ 2.89
Distributions to shareowners:
Net investment income (0.26) (0.44)
Net realized gain (1.81) (2.89)
------- --------
Net increase (decrease) in net asset value $ (4.42) $ (0.44)
------- --------
Net asset value, end of period $ 28.46 $ 32.88
======= ========
Total return* (7.29)% 9.30%
Ratio of net expenses to average net assets+ 1.96%** 1.90%
Ratio of net investment income to average net assets+ 1.73%** 1.42%
Portfolio turnover rate 25%** 14%
Net assets, end of period (in thousands) $105,645 $134,618
Ratios with reduction for fees paid indirectly:
Net expenses 1.95%** 1.89%
Net investment income 1.74%** 1.43%
Year Ended Year Ended Year Ended Year Ended
10/31/06 10/31/05 10/31/04 10/31/03
CLASS B
Net asset value, beginning of period $ 29.05 $ 26.75 $ 23.42 $ 20.67
-------- -------- -------- --------
Net increase (decrease) from investment operations:
Net investment income $ 0.47 $ 0.38 $ 0.35 $ 0.32
Net realized and unrealized gain (loss) on investments 5.26 2.26 3.23 2.73
-------- -------- -------- --------
Net increase (decrease) from investment operations $ 5.73 $ 2.64 $ 3.58 $ 3.05
Distributions to shareowners:
Net investment income (0.38) (0.34) (0.25) (0.30)
Net realized gain (1.08) - - -
-------- -------- -------- --------
Net increase (decrease) in net asset value $ 4.27 $ 2.30 $ 3.33 $ 2.75
-------- -------- -------- --------
Net asset value, end of period $ 33.32 $ 29.05 $ 26.75 $ 23.42
======== ======== ======== ========
Total return* 20.55% 9.89% 15.34% 14.90%
Ratio of net expenses to average net assets+ 1.91% 1.93% 1.95% 2.02%
Ratio of net investment income to average net assets+ 1.44% 1.24% 1.21% 1.41%
Portfolio turnover rate 32% 14% 22% 15%
Net assets, end of period (in thousands) $155,733 $157,889 $161,275 $170,283
Ratios with reduction for fees paid indirectly:
Net expenses 1.90% 1.93% 1.95% 2.02%
Net investment income 1.45% 1.24% 1.21% 1.41%
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 33
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/08 Year Ended
(unaudited) 10/31/07
CLASS C
Net asset value, beginning of period $ 32.75 $ 33.20
------- --------
Net increase (decrease) from investment operations:
Net investment income $ 0.26 $ 0.46
Net realized and unrealized gain (loss) on investments (2.59) 2.44
------- --------
Net increase (decrease) from investment operations $ (2.33) $ 2.90
Distributions to shareowners:
Net investment income (0.27) (0.46)
Net realized gain (1.81) (2.89)
------- --------
Net increase (decrease) in net asset value $ (4.41) $ (0.45)
------- --------
Net asset value, end of period $ 28.34 $ 32.75
======= ========
Total return* (7.23)% 9.37%
Ratio of net expenses to average net assets+ 1.85%** 1.82%
Ratio of net investment income to average net assets+ 1.83%** 1.48%
Portfolio turnover rate 25%** 14%
Net assets, end of period (in thousands) $132,465 $157,553
Ratios with reduction for fees paid indirectly:
Net expenses 1.85%** 1.81%
Net investment income 1.83%** 1.49%
Year Ended Year Ended Year Ended Year Ended
10/31/06 10/31/05 10/31/04 10/31/03
CLASS C
Net asset value, beginning of period $ 28.96 $ 26.68 $ 23.37 $ 20.63
-------- -------- -------- -------
Net increase (decrease) from investment operations:
Net investment income $ 0.45 $ 0.38 $ 0.29 $ 0.24
Net realized and unrealized gain (loss) on investments 5.29 2.28 3.29 2.81
-------- -------- -------- -------
Net increase (decrease) from investment operations $ 5.74 $ 2.66 $ 3.58 $ 3.05
Distributions to shareowners:
Net investment income (0.42) (0.38) (0.27) (0.31)
Net realized gain (1.08) - - -
-------- -------- -------- -------
Net increase (decrease) in net asset value $ 4.24 $ 2.28 $ 3.31 $ 2.74
-------- -------- -------- -------
Net asset value, end of period $ 33.20 $ 28.96 $ 26.68 $ 23.37
======== ======== ========= ========
Total return* 20.66% 9.98% 15.40% 14.93%
Ratio of net expenses to average net assets+ 1.83% 1.86% 1.89% 2.00%
Ratio of net investment income to average net assets+ 1.49% 1.31% 1.26% 1.36%
Portfolio turnover rate 32% 14% 22% 15%
Net assets, end of period (in thousands) $139,915 $121,479 $109,787 $82,979
Ratios with reduction for fees paid indirectly:
Net expenses 1.82% 1.86% 1.89% 2.00%
Net investment income 1.50% 1.31% 1.26% 1.36%
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
34 The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/08 Year Ended Year Ended
(unaudited) 10/31/07 10/31/06
CLASS R
Net asset value, beginning of period $ 33.34 $ 33.73 $ 29.39
------- ------- -------
Net increase (decrease) from investment operations:
Net investment income $ 0.34 $ 0.54 $ 0.51
Net realized and unrealized gain (loss) on investments (2.64) 2.63 5.51
------- ------- -------
Net increase (decrease) from investment operations $ (2.30) $ 3.17 $ 6.02
Distributions to shareowners:
Net investment income (0.36) (0.67) (0.60)
Net realized gain (1.81) (2.89) (1.08)
------- ------- -------
Net increase (decrease) in net asset value $ (4.47) $ (0.39) $ 4.34
------- ------- -------
Net asset value, end of period $ 28.87 $ 33.34 $ 33.73
======= ======== ========
Total return* (7.00)% 10.10% 21.41%
Ratio of net expenses to average net assets+ 1.27%** 1.20% 1.23%
Ratio of net investment income to average net assets+ 2.37%** 2.07% 2.00%
Portfolio turnover rate 25%** 14% 32%
Net assets, end of period (in thousands) $77,499 $67,239 $26,140
Ratios with reduction for fees paid indirectly:
Net expenses 1.27%** 1.19% 1.22%
Net investment income 2.37%** 2.08% 2.01%
4/1/03 (a)
Year Ended Year Ended to
10/31/05 10/31/04 10/31/03
CLASS R
Net asset value, beginning of period $ 27.08 $ 23.71 $ 19.97
------- ------- ---------
Net increase (decrease) from investment operations:
Net investment income $ 0.39 $ 0.44 $ 0.23
Net realized and unrealized gain (loss) on investments 2.48 3.38 3.73
------- ------- ---------
Net increase (decrease) from investment operations $ 2.87 $ 3.82 $ 3.96
Distributions to shareowners:
Net investment income (0.56) (0.45) (0.22)
Net realized gain - - -
------- ------- ---------
Net increase (decrease) in net asset value $ 2.31 $ 3.37 $ 3.74
------- ------- ---------
Net asset value, end of period $ 29.39 $ 27.08 $ 23.71
======= ======= =========
Total return* 10.64% 16.23% 19.87%(b)
Ratio of net expenses to average net assets+ 1.26% 1.17% 1.21%**
Ratio of net investment income to average net assets+ 1.86% 1.98% 0.97%**
Portfolio turnover rate 14% 22% 15%(b)
Net assets, end of period (in thousands) $10,213 $ 2,072 $ 1,098
Ratios with reduction for fees paid indirectly:
Net expenses 1.26% 1.17% 1.21%**
Net investment income 1.86% 1.98% 0.97%**
(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 year,
reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 35
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
4/30/08 Year Ended
(unaudited) 10/31/07
CLASS Y
Net asset value, beginning of period $ 33.28 $ 33.68
------- -------
Net increase (decrease) from investment operations:
Net investment income $ 0.41 $ 0.91
Net realized and unrealized gain (loss) on investments (2.62) 2.42
------- -------
Net increase (decrease) from investment operations $ (2.21) $ 3.33
Distributions to shareowners:
Net investment income (0.44) (0.84)
Net realized gain (1.81) (2.89)
------- -------
Net increase (decrease) in net asset value $ (4.46) $ (0.40)
------- -------
Net asset value, end of period $ 28.82 $ 33.28
======= ========
Total return* (6.73)% 10.66%
Ratio of net expenses to average net assets+ 0.73%** 0.66%
Ratio of net investment income to average net assets+ 2.93%** 2.66%
Portfolio turnover rate 25%** 14%
Net assets, end of period (in thousands) $10,223 $11,471
Ratios with reduction for fees paid indirectly:
Net expenses 0.73%** 0.66%
Net investment income 2.93%** 2.66%
Year Ended Year Ended Year Ended Year Ended
10/31/06 10/31/05 10/31/04 10/31/03
CLASS Y
Net asset value, beginning of period $ 29.35 $ 27.02 $ 23.65 $ 20.85
------- ------- ------- -------
Net increase (decrease) from investment operations:
Net investment income $ 0.73 $ 0.63 $ 0.67 $ 0.52
Net realized and unrealized gain (loss) on investments 5.45 2.41 3.29 2.85
------- ------- ------- -------
Net increase (decrease) from investment operations $ 6.18 $ 3.04 $ 3.96 $ 3.37
Distributions to shareowners:
Net investment income (0.77) (0.71) (0.59) (0.57)
Net realized gain (1.08) - - -
------- ------- ------- -------
Net increase (decrease) in net asset value $ 4.33 $ 2.33 $ 3.37 $ 2.80
------- ------- ------- -------
Net asset value, end of period $ 33.68 $ 29.35 $ 27.02 $ 23.65
======= ======= ======== ========
Total return* 22.10% 11.31% 16.88% 16.45%
Ratio of net expenses to average net assets+ 0.65% 0.66% 0.64% 0.71%
Ratio of net investment income to average net assets+ 2.61% 2.51% 2.43% 2.66%
Portfolio turnover rate 32% 14% 22% 15%
Net assets, end of period (in thousands) $12,956 $ 6,611 $ 4,119 $ 5,017
Ratios with reduction for fees paid indirectly:
Net expenses 0.65% 0.66% 0.64% 0.71%
Net investment income 2.61% 2.51% 2.43% 2.66%
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
36 The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended 7/6/07 (a)
4/30/08 to
(unaudited) 10/31/07
CLASS Z
Net asset value, beginning of period $ 33.12 $ 34.18
------- ---------
Net increase (decrease) from investment operations:
Net investment income $ 0.39 $ 0.24
Net realized and unrealized loss on investments (2.59) (1.08)
------- ---------
Net decrease from investment operations $ (2.20) $ (0.84)
Distributions to shareowners:
Net investment income (0.44) (0.22)
Net realized gain (1.81) -
------- ---------
Net decrease in net asset value $ (4.45) $ (1.06)
------- ---------
Net asset value, end of period $ 28.67 $ 33.12
======= =========
Total return* (6.73)% (2.46)%(b)
Ratio of net expenses to average net assets+ 0.71%** 0.67%**
Ratio of net investment income to average
net assets+ 2.97%** 2.26%**
Portfolio turnover rate 25%** 14%(b)
Net assets, end of period (in thousands) $ 101 $ 97
Ratios with reduction for fees paid indirectly:
Net expenses 0.71%** 0.67%**
Net investment income 2.97%** 2.26%**
(a) Class Z shares were first publicly offered on July 6, 2007.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 37
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/08 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Equity Income 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 current income and
long-term growth of capital from a portfolio consisting primarily of income
producing equity securities of U.S. corporations.
The Fund offers six classes of shares - Class A, Class B, Class C, Class R,
Class Y and Class Z shares. Class Z shares were first publicly offered on July
6, 2007. Each class of shares represents an interest in the same portfolio of
investments of the Fund and have equal rights to voting, redemptions, dividends
and 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
and Class Z shareowners.
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 during the reporting period.
Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political or regulatory developments or other risks affecting these
industries or sectors. The Fund's prospectuses contain information regarding
the Fund's principal risks. Please refer to those documents when considering
the Fund's investment 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:
38
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
of the Fund is computed once daily, on each day the New York Stock
Exchange (NYSE) is open, as of 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
April 30, 2008, 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. Dividend and interest income
is recorded on the accrual basis, net of unrecoverable foreign taxes
withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareowners. Therefore, no federal income tax provision is
required. Tax years prior to 2004 are
39
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
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.
The tax character of current year distributions will be determined at the
end of the fiscal year. The tax character of distributions paid during the
year ended October 31, 2007 was as follows:
- -----------------------------------------------------------------------------
2007
- -----------------------------------------------------------------------------
Distributions paid from:
Ordinary Income $ 30,337,537
Long-term capital gain 99,680,747
------------
Total $130,018,284
============
- -----------------------------------------------------------------------------
The following shows the components of distributable earnings on a
federal income tax basis at October 31, 2007:
- ------------------------------------------------------------------------------
2007
- -----------------------------------------------------------------------------
Undistributed ordinary income $ 747,003
Undistributed long-term gain 78,306,276
Unrealized appreciation 379,022,224
------------
Total $458,075,503
============
- -----------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax adjustments on partnerships, REIT holdings, and
preferred stocks.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit
40
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S.p.A. (UniCredit) earned approximately $154,267 in underwriting
commissions on the sale of Class A shares during the six months ended
April 30, 2008.
D. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at their Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day.
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. Class Y and Class Z shares are not subject to a
distribution plan (see Note 4). 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, Class R, Class Y and Class Z shares
can bear different transfer agent and distribution expense rates.
E. 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.
41
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
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 cash equivalent investments.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. PIM receives a basic fee that is calculated at the annual
rate of 0.60% of the Fund's average daily net assets up to $10 billion and
0.575% of the excess over $10 billion. For the six months ended April 30, 2008,
the net management fee was equivalent to 0.60% of the average daily net assets.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Class Z expenses to 0.85% of the average daily net
assets attributable to Class Z shares. This expense limitation is in effect
through March 1, 2011 for Class Z shares.
In addition, under the management and administrative 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 $21,130 in management fees,
administrative costs and certain other services payable to PIM at April 30,
2008.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
Included in "Due to Affiliates" reflected on the
42
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities is $118,971 in transfer agent fees payable
to PIMSS at April 30, 2008.
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 (Class A Plan, Class B Plan, Class C Plan, Class R Plan)
in accordance with Rule 12b-1 of the Investment Company Act of 1940. Pursuant
to the Plan, the Fund pays PFD 0.25% of the Fund's average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund pays PFD 1.00% of the average daily net
assets attributable to Class B and Class C shares. The fee for Class B and
Class C shares consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance services
or distribution services with regard to Class B and Class C shares. Pursuant to
the Plan, the Fund pays PFD 0.50% of the average daily net assets attributable
to Class R shares as compensation for distribution services. For the period
from November 1, 2007 through January 31, 2008, PFD was reimbursed under the
Plan of Distribution for distribution expenses in an amount of up to 0.25% of
the average daily net assets attributes to Class A shares. Included in due to
affiliates reflected on the Statement of Assets and Liabilities is $14,963 in
distribution fees payable to PFD at April 30, 2008.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay as compensation to
securities dealers, plan administrators or other service organizations that
agree to provide certain services to retirement plans or plan participants
holding shares of the Fund a service fee of up to 0.25% of the Fund's average
daily net assets attributable to Class R shares held by such plans in
reimbursement for actual expenditures.
In addition, redemptions of Class A, Class B and Class C shares may be subject
to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
redemptions of certain net asset value purchases of Class A shares within 18
months of purchases. Class B shares redeemed within five years of purchase are
subject to a CDSC at declining rates beginning at 4.00%, based on the lower
cost or market value of shares being redeemed. Redemptions of Class C
43
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
shares within one year of purchase are subject to a CDSC of 1.00%, based on the
lower of cost or market value of shares being redeemed. Proceeds from the CDSCs
are paid to PFD. For the six months ended April 30, 2008, CDSCs in the amount
of $110,694 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
six months ended April 30, 2008, expenses were not reduced under this
agreement. In addition, the Fund has entered into certain expense offset
arrangements with PIMSS resulting in a reduction in the Fund's total expenses
due to interest earned on cash held by PIMSS. For the six months ended April
30, 2008, the Fund's expenses were reduced by $25,026 under such arrangements.
6. Line Of Credit Facility
The Fund, along with certain others 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. For the six months
ended April 30, 2008, the Fund had no borrowings under this agreement.
44
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
7. Affiliated Companies
The Fund's investments in certain companies exceed 5% of the outstanding voting
stock of those companies. Such companies are deemed affiliates of the Fund for
financial reporting purposes. The following summarizes transactions with
affiliates of the Fund for the six months ended April 30, 2008:
- --------------------------------------------------------------------------------------------
Beginning Corporate Ending
Balance Purchases Actions Dividend Balance
Affiliates (shares) (shares) (shares) Income (shares) Value
- --------------------------------------------------------------------------------------------
Gorman-Rupp Co. 790,557 - 197,638 $197,639 988,195 $34,616,471
- --------------------------------------------------------------------------------------------
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.
In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures
about Derivative Instruments and Hedging Activities (SFAS 161), was issued and
is effective for fiscal years beginning after November 15, 2008. SFAS 161
requires enhanced disclosures about an entity's derivative and hedging
activities. Management is currently evaluating the impact the adoption of SFAS
161 will have on the Fund's financial statement disclosures.
ADDITIONAL INFORMATION (unaudited)
Effective January 1, 2008, the fund may invest up to 20% of its total assets in
equity and debt securities of non-U.S. corporate issuers and debt securities of
non-U.S. government issuers. The fund will not invest more than 5% of its total
assets in the securities of emerging markets issuers. Investing in non-U.S.
issuers may involve unique risks compared to investing in securities of U.S.
issuers. These risks are more pronounced for issuers in emerging markets or to
the extent the fund invests significantly in one region or country. These risks
may include:
45
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/08 (unaudited) (continued)
- --------------------------------------------------------------------------------
o Less information about non-U.S. issuers or markets may be available due to
less rigorous disclosure or accounting standards or regulatory practices
o Many non-U.S. markets are smaller, less liquid and more volatile. Pioneer
may not be able to sell the fund's portfolio securities at times, in amounts
and at prices it considers reasonable
o Adverse effect of currency exchange rates or controls on the value of the
fund's investments or its ability to convert non-U.S. currencies to U.S.
dollars
o The economies of non-U.S. countries may grow at slower rates than expected
or may experience a downturn or recession
o Economic, political and social developments may adversely affect the
securities markets
o Withholding and other non-U.S. taxes may decrease the fund's return
46
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
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
47
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (continued)
- --------------------------------------------------------------------------------
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 and five year periods ended June 30, 2007 and
in the first quintile of its Morningstar category for the three 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 second quintile relative to its
Strategic Insight peer group.
48
Pioneer Equity Income 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 that PIM's
profitability with respect to the management of the Fund was not unreasonable.
49
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
APPROVAL OF INVESTMENT ADVISORY AGREEMENT (continued)
- --------------------------------------------------------------------------------
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.
50
Pioneer Equity Income Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Daniel K. Kingsbury, Executive Vice President
Mary K. Bush Mark E. Bradley, Treasurer
Margaret B.W. Graham Dorothy E. Bourassa, Secretary
Daniel K. Kingsbury
Thomas J. Perna
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). 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. This information is also available
on the Securities and Exchange Commission's web site at http://www.sec.gov.
51
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
52
- --------------------------------------------------------------------------------
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
This report must be preceded or accompanied by a Prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the
Commission's web site at http://www.sec.gov. The filed form may also be viewed
and copied at the Commission's Public Reference Room in Washington, DC.
Information regarding the operations of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Equity Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date June 27, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date June 27, 2008
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date June 27, 2008
* Print the name and title of each signing officer under his or her signature.