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)
Terrence J. Cullen, Amundi Pioneer Asset 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, 2019
Date of reporting period: November 1, 2018 through October 31, 2019
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 STOCKHOLDERS.
Pioneer Equity
Income Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2019
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PEQIX
Class C PCEQX
Class K PEQKX
Class R PQIRX
Class Y PYEQX
Beginning in April 2021, as permitted by regulations adopted by the Securities
and Exchange Commission, paper copies of the Fund's shareholder reports like
this one will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Fund or from your financial intermediary, such
as a broker-dealer, bank or insurance company. Instead, the reports will be
made available on the Fund's website, and you will be notified by mail each
time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically by
contacting your financial intermediary or, if you invest directly with the
Fund, by calling 1-800-225-6292.
You may elect to receive all future reports in paper free of charge. If you
invest directly with the Fund, you can inform the Fund that you wish to
continue receiving paper copies of your shareholder reports by calling
1-800-225-6292. If you invest through a financial intermediary, you can contact
your financial intermediary to request that you continue to receive paper
copies of your shareholder reports. Your election to receive reports in paper
will apply to all funds held in your account if you invest through your
financial intermediary or all funds held within the Pioneer Fund complex if you
invest directly.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com/us
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 25
Notes to Financial Statements 34
Report of Independent Registered Public Accounting Firm 43
Additional Information 45
Approval of Investment Management Agreement 46
Trustees, Officers and Service Providers 51
Pioneer Equity Income Fund | Annual Report | 10/31/19 1
President's Letter
Since 1928, active portfolio management based on in-depth, fundamental
research, has been the foundation of Amundi Pioneer's investment approach. We
believe an active management investment strategy is a prudent approach to
investing, especially during periods of market volatility, which can result
from any number of risk factors, including slow U.S. economic growth, rising
interest rates, and geopolitical factors. Of course, in today's global economy,
risk factors extend well beyond U.S. borders. In fact, it's not unusual for
political and economic issues on the international front to cause or contribute
to volatility in U.S. markets.
At Amundi Pioneer, each security under consideration is researched by our team
of experienced investment professionals, who communicate directly with the
management teams of those companies. At the end of this research process, if we
have conviction in a company's business model and management team, and regard
the security as a potentially solid investment opportunity, an Amundi Pioneer
portfolio manager makes an active decision to invest in that security. The
portfolio resulting from these decisions represents an expression of his or her
convictions, and strives to balance overall risk and return opportunity.
As an example, the Standard & Poor's 500 Index -- the predominant benchmark for
many U.S. Large-Cap Core Equity funds -- has 500 stocks. An Amundi Pioneer
portfolio manager chooses to invest in only those companies that he or she
believes can offer the most attractive opportunities to pursue the fund's
investment objective, thus potentially benefiting the fund's shareowners. This
process results in a portfolio that does not own all 500 stocks, but a much
narrower universe.
The same active decision to invest in a company is also applied when we decide
to sell a security, due to changing fundamentals, valuation concerns, or market
risks. We apply this active decision-making across all of our equity,
fixed-income, and global portfolios.
Today, as investors, we have many options. It is our view that active
management can serve shareholders well, not only when markets are thriving, but
also during periods of market volatility and uncertainty, thus making it a
compelling investment choice. As you consider the many choices today, we
encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner.
2 Pioneer Equity Income Fund | Annual Report | 10/31/19
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S. Amundi Pioneer Asset Management
USA, Inc. October 31, 2019
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Equity Income Fund | Annual Report | 10/31/19 3
Portfolio Management Discussion | 10/31/19
In the following interview, John A. Carey discusses the market environment for
equities and the factors that affected the performance of Pioneer Equity Income
Fund during the 12-month period ended October 31, 2019. Mr. Carey, Managing
Director, Director of Equity Income, U.S., and a portfolio manager at Amundi
Pioneer Asset Management, Inc. (Amundi Pioneer), is responsible for the
day-to-day management of the Fund, along with Walter Hunnewell, Jr., a vice
president and a portfolio manager at Amundi Pioneer, and Sammi Truong, a vice
president and a portfolio manager at Amundi Pioneer.
Q How did the Fund perform over the 12-month period ended October 31, 2019?
A Pioneer Equity Income Fund's Class A shares returned 11.15% at net asset
value during the 12-month period ended October 31, 2019, while the Fund's
benchmark, the Russell 1000 Value Index, returned 11.21%. During the same
period, the average return of the 1,222 mutual funds in Morningstar's Large
Value Funds category was 9.63%.
Q How would you describe the market for equities during the 12-month period
ended October 31, 2019, particularly for the types of equities deemed
appropriate for the Fund?
A About a month into the period, the stock market took a steep dive.
Investors became concerned that what they believed to be excessive
interest-rate increases by the Federal Reserve (Fed) would slow the
domestic economy, perhaps even drive the economy into recession. After
soothing words from the Fed, however, and amidst hopefulness about a
potential resolution of trade tensions between the United States and China,
the stock market turned around near the end of 2018 and remained relatively
strong for the rest of the 12-month period. Growth stocks outperformed
value stocks, with total returns over the 12-month period of 17.10% for the
Russell 1000 Growth Index and 11.21% for the Fund's benchmark, the Russell
1000 Value Index (the Russell Index).
Declining interest rates over the course of the 12-month period made the
dividend yield* on the Russell Index attractive, as the current yield on
the 10-Year U.S. Treasury fell from 3.1% at the beginning of the period to
1.7% at the end. The dividend yield on the Russell Index also fell during
the 12-month period, from about 2.8% to 2.5%, as dividend increases by
index-constituent companies did not quite keep up with share-price
* Dividends are not guaranteed.
4 Pioneer Equity Income Fund | Annual Report | 10/31/19
advances; but, the yield on the Russell Index relative to that on the
10-Year Treasury went from being lower to being higher. That, along with
signs that the U.S. economy was continuing to grow, if more slowly,
supported share prices in the value sector of the market.
Q Could you please discuss the main factors in the fund's benchmark-relative
performance during the 12-month period ended October 31, 2019, and any
investments or strategies that significantly helped or detracted from
returns?
A The Fund's performance during the 12-month period was roughly flat against
that of the benchmark Russell Index. Sector-allocation results were neutral
to the Fund's benchmark-relative performance. With regard to stock
selection, likewise, very little stood out in comparison to the Russell
Index.
Individual portfolio positions that were noteworthy positive attributors
for the Fund versus the benchmark over the 12-month period included KLA
(information technology), Reliance Steel & Aluminum (materials), Xilinx
(information technology), and WEC Energy (utilities). Meanwhile, positions
in Nordstrom (consumer discretionary), Occidental Petroleum (energy), CBS
(communication services), and HP (information technology) were at the top
of the negative performance-attributors list versus the benchmark; however,
only Nordstrom had as much as a 1% negative effect on the Fund's relative
returns.
In the case of Nordstrom, the department-store company, the stock market
registered disappointment that an attempt by the Nordstrom family to take
the company private failed. Troubles throughout the "brick-and-mortar"
retailing sector also turned investors away from the name. We have retained
the Fund's shares of Nordstrom because we think that management's
initiatives in store re-design and online selling may yet prove worthwhile,
and because the shares, at their current price, do not appear to reflect a
fair value for the company. Occidental Petroleum's decline during the
12-month period also merits comment. The company's acquisition of Anadarko
Petroleum was very poorly received by investors, due both to the high price
that Occidental paid and to the debt-heavy way in which Occidental financed
the purchase. With troubled situations like Nordstrom and Occidental, we
choose to be patient for a time if we believe that core strengths of the
businesses remain intact, but we stay on high alert and will make changes
to the Fund's positions if we ultimately do not see improvement.
Pioneer Equity Income Fund | Annual Report | 10/31/19 5
On the positive side, the Fund's holdings in the semiconductor sub-sector
within information technology, particularly KLA and Xilinx, performed very
well over the 12-month period as the semiconductor industry stayed much
more profitable than investors had expected it would at such an advanced
stage of the economic cycle.
Q Could you highlight some of the more notable changes you made to the Fund's
portfolio during the 12-month period ended October 31, 2019?
A In the 12-month period, we added about two dozen positions to the portfolio
and eliminated about the same number. A sector in which we did some
significant repositioning was health care, where we boosted the Fund's
investments in health-care equipment and services and reduced the
allocations to pharmaceuticals, biotechnology, and life sciences. We judged
that the portfolio had too much exposure to potential controls on drug
prices and, at the same time, was underexposed to areas in health care
where investor sentiment had become quite negative. Accordingly, we scaled
back a number of the Fund's pharmaceutical positions and added five
positions in equipment and services: Becton Dickinson, AmerisourceBergen,
CVS Health, Anthem, and Humana. Another active area for the portfolio has
been financial services, where JPMorgan Chase and Comerica were new entries
in the second half of the 12-month period.
With respect to other changes, we continued to de-emphasize utilities
stocks during the 12-month period, due to the relatively rich prices of
stocks in that sector. We closed out a large position in American Electric
Power, which had performed well during the time the Fund held the shares.
Finally, we exited positions in several cyclical companies that appeared
vulnerable to slower economic growth, including General Motors (consumer
discretionary), International Paper (materials), TOTAL (energy), and Kroger
(consumer discretionary).
Q Did the Fund invest in any derivatives during the 12-month period ended
October 31, 2019?
A No, the Fund did not invest in derivatives during the 12-month period.
Q The Fund typically places emphasis on dividend-paying stocks. How would you
describe the environment for dividends during the 12-month period ended
October 31, 2019?
A As we mentioned earlier, dividend yields on the stocks in the Fund's
investment universe became more attractive during the 12-month period as
interest rates declined. Income-oriented investors were thus more inclined
to consider stocks along with or even instead of debt instruments.
6 Pioneer Equity Income Fund | Annual Report | 10/31/19
While growth stocks remained the primary focus of many investors,
dividend-paying value stocks found good support levels as the 12-month
period progressed.
Q What is your outlook for equities as we approach the end of 2019?
A The headlines we read are surely of concern, as political and economic
risks abound. For now, the U.S. economy is still expanding, but corporate
earnings have stalled. We are watching consumer-confidence numbers and
unemployment statistics especially closely. Housing and retail sales are
also potential indicators of where the economy may be trending. With
uncertainties particularly regarding international trade, companies have
exercised restraint in their capital spending. Noting that
price-to-earnings multiples for many stocks are above historical averages,
we are cautious on the stock market.
As always, we keep the portfolio substantially fully invested, but we are
paying even more attention than usual to financial strength and business
resilience. If, despite everything, the economy gets a "second wind" and
resumes good growth, we believe the Fund's portfolio is positioned to take
part in any subsequent rally, but we do find reassurance currently in the
potential contribution to total return from the dividends paid by the
companies in the portfolio.
Thank you, as ever, for your support.
Pioneer Equity Income Fund | Annual Report | 10/31/19 7
Please refer to the Schedule of Investments on pages 18--24 for a full listing
of Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political
conditions.
The Fund invests in REIT securities, the value of which can fall for a variety
of reasons, such as declines in rental income, fluctuating interest rates, poor
property management, environmental liabilities, uninsured damage, increased
competition, or changes in real estate tax laws.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political, or regulatory developments or other risks affecting
those industries and sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc. for
a prospectus or summary prospectus containing this information. Read it
carefully.
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 opinion as of the date of this report. Past performance is no
guarantee of future results.
8 Pioneer Equity Income Fund | Annual Report | 10/31/19
Portfolio Summary | 10/31/19
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 22.2%
Health Care 12.0%
Consumer Discretionary 10.3%
Consumer Staples 10.1%
Industrials 9.4%
Energy 8.0%
Materials 7.6%
Information Technology 7.3%
Utilities 5.2%
Communication Services 4.1%
Real Estate 3.8%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investments)*
1. Verizon Communications, Inc. 2.12%
---------------------------------------------------------------
2. AstraZeneca Plc (A.D.R.) 2.09
---------------------------------------------------------------
3. Bank of America Corp. 2.07
---------------------------------------------------------------
4. Gorman-Rupp Co. 1.91
---------------------------------------------------------------
5. Exxon Mobil Corp. 1.87
---------------------------------------------------------------
6. T Rowe Price Group, Inc. 1.83
---------------------------------------------------------------
7. WEC Energy Group , Inc. 1.80
---------------------------------------------------------------
8. Mondelez International, Inc. 1.74
---------------------------------------------------------------
9. Phillips 66 1.72
---------------------------------------------------------------
10. Chubb, Ltd. 1.67
---------------------------------------------------------------
* Excludes temporary cash investments and all derivative contracts except for
options purchased. The Fund is actively managed, and current holdings may
be different. The holdings listed should not be considered recommendations
to buy or sell any securities.
Pioneer Equity Income Fund | Annual Report | 10/31/19 9
Prices and Distributions | 10/31/19
Net Asset Value per Share
------------------------------------------------------------------
Class 10/31/19 10/31/18
A $35.59 $34.39
------------------------------------------------------------------
C $35.00 $33.80
------------------------------------------------------------------
K $35.65 $34.47
------------------------------------------------------------------
R $36.28 $34.98
------------------------------------------------------------------
Y $36.05 $34.82
------------------------------------------------------------------
Distributions per Share: 11/1/18--10/31/19
------------------------------------------------------------
------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
------------------------------------------------------------------------
A $0.7866 $ -- $1.5782
------------------------------------------------------------------------
C $0.4690 $ -- $1.5782
------------------------------------------------------------------------
K $0.9230 $ -- $1.5782
------------------------------------------------------------------------
R $0.6281 $ -- $1.5782
------------------------------------------------------------------------
Y $0.8797 $ -- $1.5782
------------------------------------------------------------------------
The Russell 1000 Value Index is an unmanaged index that 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. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11--15.
10 Pioneer Equity Income Fund | Annual Report | 10/31/19
Performance Update | 10/31/19 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Equity Income Fund at public
offering price during the periods shown, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of October 31, 2019)
-----------------------------------------------------------
Net Public Russell
Asset Offering 1000
Value Price Value
Period (NAV) (POP) Index
-----------------------------------------------------------
10 years 12.44% 11.78% 11.96%
5 years 9.05 7.76 7.61
1 year 11.15 4.76 11.21
-----------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019)
-----------------------------------------------------------
Gross
-----------------------------------------------------------
1.00%
-----------------------------------------------------------
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/09 $ 9,425 $10,000
10/10 $11,344 $11,571
10/11 $12,622 $12,283
10/12 $13,895 $14,358
10/13 $17,581 $18,420
10/14 $19,749 $21,452
10/15 $20,795 $21,565
10/16 $22,481 $22,939
10/17 $26,904 $27,018
10/18 $27,399 $27,838
10/19 $30,455 $30,959
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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. POP
returns reflect deduction of maximum 5.75% sales charge. NAV 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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Equity Income Fund | Annual Report | 10/31/19 11
Performance Update | 10/31/19 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2019)
--------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------
10 years 11.62% 11.62% 11.96%
5 years 8.24 8.24 7.61
1 year 10.27 10.27 11.21
--------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019)
--------------------------------------------------------------
Gross
--------------------------------------------------------------
1.72%
--------------------------------------------------------------
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/09 $10,000 $10,000
10/10 $11,946 $11,571
10/11 $13,194 $12,283
10/12 $14,416 $14,358
10/13 $18,107 $18,420
10/14 $20,204 $21,452
10/15 $21,110 $21,565
10/16 $22,659 $22,939
10/17 $26,912 $27,018
10/18 $27,220 $27,838
10/19 $30,015 $30,959
Call 1-800-225-6292 or visit www.amundipioneer.com/us for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. NAV 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.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer Equity Income Fund | Annual Report | 10/31/19
Performance Update | 10/31/19 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class K shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2019)
--------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------
10 years 12.74% 11.96%
5 years 9.44 7.61
1 year 11.53 11.21
--------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019)
--------------------------------------------------
Gross
--------------------------------------------------
0.66%
--------------------------------------------------
Value of $5 Million Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/09 $ 5,000,000 $ 5,000,000
10/10 $ 6,017,938 $ 5,785,318
10/11 $ 6,695,875 $ 6,141,727
10/12 $ 7,371,118 $ 7,179,104
10/13 $ 9,361,142 $ 9,210,004
10/14 $10,561,726 $10,725,752
10/15 $11,160,814 $10,782,528
10/16 $12,109,282 $11,469,461
10/17 $14,545,240 $13,508,829
10/18 $14,866,290 $13,918,817
10/19 $16,579,811 $15,479,543
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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 shown for Class K shares for the period prior to the
commencement of operations of Class K shares on December 20, 2012, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are
higher than those of Class K shares, the performance of Class K shares prior to
their inception on December 20, 2012, would have been higher than the
performance shown. For the period beginning December 20, 2012, the actual
performance of Class K shares is reflected. Class K 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.
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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Equity Income Fund | Annual Report | 10/31/19 13
Performance Update | 10/31/19 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2019)
------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
------------------------------------------------
10 years 12.06% 11.96%
5 years 8.63 7.61
1 year 10.71 11.21
------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019)
------------------------------------------------
Gross
------------------------------------------------
1.44%
------------------------------------------------
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/09 $10,000 $10,000
10/10 $12,002 $11,571
10/11 $13,317 $12,283
10/12 $14,617 $14,358
10/13 $18,437 $18,420
10/14 $20,640 $21,452
10/15 $21,651 $21,565
10/16 $23,325 $22,939
10/17 $27,800 $27,018
10/18 $28,195 $27,838
10/19 $31,215 $30,959
Call 1-800-225-6292 or visit www.amundipioneer.com/us 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 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.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Equity Income Fund | Annual Report | 10/31/19
Performance Update | 10/31/19 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2019)
--------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------
10 years 12.80% 11.96%
5 years 9.32 7.61
1 year 11.41 11.21
--------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2019)
--------------------------------------------------------
Gross
--------------------------------------------------------
0.76%
--------------------------------------------------------
Value of $5 Million Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/09 $ 5,000,000 $ 5,000,000
10/10 $ 6,048,985 $ 5,785,318
10/11 $ 6,758,730 $ 6,141,727
10/12 $ 7,466,132 $ 7,179,104
10/13 $ 9,480,092 $ 9,210,004
10/14 $10,681,699 $10,725,752
10/15 $11,275,637 $10,782,528
10/16 $12,222,630 $11,469,461
10/17 $14,666,095 $13,508,829
10/18 $14,972,452 $13,918,817
10/19 $16,680,905 $15,479,543
Call 1-800-225-6292 or visit www.amundipioneer.com/us for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results
are historical and assume the reinvestment of dividends and capital gains.
Other share classes are available for which performance and expenses will
differ.
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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Equity Income Fund | Annual Report | 10/31/19 15
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 / $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 May 1, 2019 through October 31, 2019.
------------------------------------------------------------------------------------------------
Share Class A C K R Y
------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/19
------------------------------------------------------------------------------------------------
Ending Account Value $1,030.60 $1,026.63 $1,032.69 $1,028.90 $1,031.96
(after expenses) on
10/31/19
------------------------------------------------------------------------------------------------
Expenses Paid $5.12 $9.09 $3.38 $7.11 $3.99
During Period*
------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.78%,
0.66% 1.39%, and 0.78%, for Class A, C, K, R and Y respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the partial year period).
16 Pioneer Equity Income Fund | Annual Report | 10/31/19
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 May 1, 2019 through October 31, 2019.
------------------------------------------------------------------------------------------------
Share Class A C K R Y
------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/19
------------------------------------------------------------------------------------------------
Ending Account Value $1,020.16 $1,016.23 $1,021.88 $1,018.20 $1,021.27
(after expenses) on
10/31/19
------------------------------------------------------------------------------------------------
Expenses Paid $5.09 $9.05 $3.36 $7.07 $3.97
During Period*
------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.78%,
0.66% 1.39%, and 0.78%, for Class A, C, K, R and Y respectively, multiplied
by the average account value over the period, multiplied by 184/365 (to
reflect the partial year period).
Pioneer Equity Income Fund | Annual Report | 10/31/19 17
Schedule of Investments | 10/31/19
------------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 98.0%
COMMON STOCKS -- 98.0% of Net Assets
Aerospace & Defense -- 1.2%
148,483 Raytheon Co. $ 31,509,577
---------------
Total Aerospace & Defense $ 31,509,577
------------------------------------------------------------------------------------------------------------
Air Freight & Logistics -- 0.4%
151,978 CH Robinson Worldwide, Inc. $ 11,495,616
---------------
Total Air Freight & Logistics $ 11,495,616
------------------------------------------------------------------------------------------------------------
Auto Components -- 1.2%
791,412 BorgWarner, Inc. $ 32,986,052
---------------
Total Auto Components $ 32,986,052
------------------------------------------------------------------------------------------------------------
Banks -- 8.7%
1,747,506 Bank of America Corp. $ 54,644,513
607,708 BB&T Corp. 32,238,910
292,368 Comerica, Inc. 19,126,715
1,815,583 Huntington Bancshares, Inc. 25,654,188
200,431 JPMorgan Chase & Co. 25,037,840
204,080 M&T Bank Corp. 31,944,642
275,957 PNC Financial Services Group, Inc. 40,482,892
---------------
Total Banks $ 229,129,700
------------------------------------------------------------------------------------------------------------
Beverages -- 0.4%
70,879 PepsiCo., Inc. $ 9,722,472
---------------
Total Beverages $ 9,722,472
------------------------------------------------------------------------------------------------------------
Capital Markets -- 6.2%
746,696 Bank of New York Mellon Corp. $ 34,908,038
591,789 Morgan Stanley 27,251,883
254,045 Northern Trust Corp. 25,323,206
425,669 State Street Corp. 28,123,951
417,259 T Rowe Price Group, Inc. 48,318,592
---------------
Total Capital Markets $ 163,925,670
------------------------------------------------------------------------------------------------------------
Chemicals -- 3.0%
271,994 Celanese Corp. $ 32,952,073
159,773 Corteva, Inc. 4,214,812
207,639 Dow, Inc. 10,483,693
190,431 DuPont de Nemours, Inc. 12,551,307
213,557 HB Fuller Co. 10,421,582
94,658 Johnson Matthey Plc (A.D.R.) 7,626,595
---------------
Total Chemicals $ 78,250,062
------------------------------------------------------------------------------------------------------------
Commercial Services & Supplies -- 0.9%
192,664 MSA Safety, Inc. $ 23,133,167
---------------
Total Commercial Services & Supplies $ 23,133,167
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Equity Income Fund | Annual Report | 10/31/19
------------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------------
Communications Equipment -- 1.1%
612,195 Cisco Systems, Inc. $ 29,085,384
---------------
Total Communications Equipment $ 29,085,384
------------------------------------------------------------------------------------------------------------
Consumer Discretionary -- 0.8%
483,765 Comcast Corp. $ 21,682,347
---------------
Total Consumer Discretionary $ 21,682,347
------------------------------------------------------------------------------------------------------------
Consumer Finance -- 0.8%
255,426 Discover Financial Services $ 20,500,491
---------------
Total Consumer Finance $ 20,500,491
------------------------------------------------------------------------------------------------------------
Distributors -- 0.9%
233,143 Genuine Parts Co. $ 23,915,809
---------------
Total Distributors $ 23,915,809
------------------------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 2.5%
243,789 BCE, Inc. $ 11,567,788
921,798 Verizon Communications, Inc. 55,741,125
---------------
Total Diversified Telecommunication Services $ 67,308,913
------------------------------------------------------------------------------------------------------------
Electric Utilities -- 1.5%
750,138 Alliant Energy Corp. $ 40,012,361
---------------
Total Electric Utilities $ 40,012,361
------------------------------------------------------------------------------------------------------------
Electrical Equipment -- 0.5%
194,000 Emerson Electric Co. $ 13,609,100
---------------
Total Electrical Equipment $ 13,609,100
------------------------------------------------------------------------------------------------------------
Electronic Equipment, Instruments & Components -- 0.7%
205,277 TE Connectivity, Ltd. $ 18,372,292
---------------
Total Electronic Equipment, Instruments & Components $ 18,372,292
------------------------------------------------------------------------------------------------------------
Equity Real Estate Investment Trusts (REITs) -- 3.8%
248,490 Alexandria Real Estate Equities, Inc. $ 39,447,788
170,333 Camden Property Trust 19,480,985
75,925 Prologis, Inc. 6,663,178
69,105 Simon Property Group, Inc. 10,412,741
294,253 SL Green Realty Corp. 24,599,551
---------------
Total Equity Real Estate Investment Trusts (REITs) $ 100,604,243
------------------------------------------------------------------------------------------------------------
Food & Staples Retailing -- 0.7%
152,659 Wal-Mart, Inc. $ 17,900,794
---------------
Total Food & Staples Retailing $ 17,900,794
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/19 19
Schedule of Investments | 10/31/19 (continued)
------------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------------
Food Products -- 8.2%
158,538 Bunge, Ltd. $ 8,561,052
38,000 Calavo Growers, Inc. 3,295,740
524,353 General Mills, Inc. 26,668,594
125,179 Hershey Co. 18,385,040
171,354 JM Smucker Co. 18,108,691
115,712 John B Sanfilippo & Son, Inc. 12,279,357
436,453 Kellogg Co. 27,727,859
308,086 Lamb Weston Holdings, Inc. 24,043,031
108,000 McCormick & Co., Inc., Class VTG 17,354,520
876,209 Mondelez International, Inc. 45,957,162
144,172 Nestle SA (A.D.R.) 15,449,472
---------------
Total Food Products $ 217,830,518
------------------------------------------------------------------------------------------------------------
Gas Utilities -- 0.4%
231,532 National Fuel Gas Co. $ 10,490,715
---------------
Total Gas Utilities $ 10,490,715
------------------------------------------------------------------------------------------------------------
Health Care Equipment & Supplies -- 2.9%
493,321 Abbott Laboratories $ 41,246,569
52,068 Becton Dickinson and Co. 13,329,408
513,278 Smith & Nephew Plc (A.D.R.) 22,183,875
---------------
Total Health Care Equipment & Supplies $ 76,759,852
------------------------------------------------------------------------------------------------------------
Health Care Providers & Services -- 3.0%
189,363 AmerisourceBergen Corp. $ 16,167,813
45,838 Anthem, Inc. 12,334,089
238,310 CVS Health Corp. 15,821,401
49,261 Humana, Inc. 14,492,586
185,080 Quest Diagnostics, Inc. 18,739,350
---------------
Total Health Care Providers & Services $ 77,555,239
------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure -- 2.5%
605,051 Cedar Fair LP $ 33,743,694
84,198 Cracker Barrel Old Country Store, Inc. 13,092,789
294,269 InterContinental Hotels Group Plc (A.D.R.) 17,829,759
---------------
Total Hotels, Restaurants & Leisure $ 64,666,242
------------------------------------------------------------------------------------------------------------
Household Products -- 0.8%
143,210 Clorox Co. $ 21,150,685
---------------
Total Household Products $ 21,150,685
------------------------------------------------------------------------------------------------------------
Industrial Conglomerates -- 1.0%
147,700 Honeywell International, Inc. $ 25,512,221
---------------
Total Industrial Conglomerates $ 25,512,221
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Annual Report | 10/31/19
------------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------------
Insurance -- 6.5%
289,141 Chubb, Ltd. $ 44,070,871
299,000 Fidelity National Financial, Inc. 13,706,160
218,531 First American Financial Corp. 13,500,845
520,972 Lincoln National Corp. 29,424,499
402,635 Progressive Corp. 28,063,659
953,399 Sun Life Financial , Inc. 42,788,547
---------------
Total Insurance $ 171,554,581
------------------------------------------------------------------------------------------------------------
IT Services -- 1.0%
47,539 Accenture Plc $ 8,814,681
200,000 Leidos Holdings, Inc. 17,246,000
---------------
Total IT Services $ 26,060,681
------------------------------------------------------------------------------------------------------------
Leisure Products -- 0.4%
100,367 Hasbro, Inc. $ 9,766,713
---------------
Total Leisure Products $ 9,766,713
------------------------------------------------------------------------------------------------------------
Machinery -- 2.2%
469,000 Komatsu, Ltd. (A.D.R.) $ 10,951,150
452,079 PACCAR, Inc. 34,385,129
253,696 Timken Co. 12,431,104
---------------
Total Machinery $ 57,767,383
------------------------------------------------------------------------------------------------------------
Media -- 0.7%
370,961 CBS Corp., Class B $ 13,369,434
142,350 Meredith Corp. 5,366,595
---------------
Total Media $ 18,736,029
------------------------------------------------------------------------------------------------------------
Metals & Mining -- 4.7%
156,894 BHP Group, Ltd. (A.D.R.) $ 7,673,685
285,804 Kaiser Aluminum Corp. 30,603,892
274,951 Materion Corp. 15,628,215
537,583 Nucor Corp. 28,948,845
334,678 Reliance Steel & Aluminum Co. 38,836,035
---------------
Total Metals & Mining $ 121,690,672
------------------------------------------------------------------------------------------------------------
Multiline Retail -- 2.7%
908,424 Nordstrom, Inc. $ 32,612,422
362,172 Target Corp. 38,719,808
---------------
Total Multiline Retail $ 71,332,230
------------------------------------------------------------------------------------------------------------
Multi-Utilities -- 3.3%
300,750 Ameren Corp. $ 23,368,275
254,285 CMS Energy Corp. 16,253,897
503,294 WEC Energy Group, Inc. 47,510,953
---------------
Total Multi-Utilities $ 87,133,125
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/19 21
Schedule of Investments | 10/31/19 (continued)
------------------------------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 8.0%
337,548 Chevron Corp. $ 39,202,825
384,986 ConocoPhillips 21,251,227
730,668 Exxon Mobil Corp. 49,371,237
554,275 Occidental Petroleum Corp. 22,448,137
387,117 Phillips 66 45,223,008
353,948 Valero Energy Corp. 34,325,877
---------------
Total Oil, Gas & Consumable Fuels $ 211,822,311
------------------------------------------------------------------------------------------------------------
Pharmaceuticals -- 6.1%
1,123,135 AstraZeneca Plc (A.D.R.) $ 55,067,309
336,714 Eli Lilly & Co. 38,368,561
485,458 Merck & Co., Inc. 42,069,790
468,750 Novo Nordisk AS (A.D.R.) 25,884,375
---------------
Total Pharmaceuticals $ 161,390,035
------------------------------------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment -- 3.7%
189,352 Analog Devices, Inc. $ 20,190,603
89,814 Cabot Microelectronics Corp. 13,572,692
214,000 KLA-Tencor Corp. 36,174,560
227,012 Texas Instruments, Inc. 26,785,146
---------------
Total Semiconductors & Semiconductor Equipment $ 96,723,001
------------------------------------------------------------------------------------------------------------
Specialty Retail -- 0.4%
50,014 Home Depot, Inc. $ 11,732,284
---------------
Total Specialty Retail $ 11,732,284
------------------------------------------------------------------------------------------------------------
Technology Hardware, Storage & Peripherals -- 0.8%
1,295,745 HP, Inc. $ 22,507,091
---------------
Total Technology Hardware, Storage & Peripherals $ 22,507,091
------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods -- 2.1%
277,906 Carter's, Inc. $ 27,857,298
342,801 VF Corp. 28,209,094
---------------
Total Textiles, Apparel & Luxury Goods $ 56,066,392
------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 1.3%
506,841 Fastenal Co. $ 18,215,866
1,743,680 Ferguson Plc (A.D.R.) 14,768,970
---------------
Total Trading Companies & Distributors $ 32,984,836
------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $2,091,749,249) $ 2,584,376,886
------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 98.0%
(Cost $2,091,749,249) $ 2,584,376,886
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Annual Report | 10/31/19
------------------------------------------------------------------------------------------------------------
Net Change in Net
Realized Unrealized
Dividend Gain Appreciation
Shares Income (Loss) (Depreciation) Value
------------------------------------------------------------------------------------------------------------
AFFILIATED ISSUER -- 1.9%
COMMON STOCK -- 1.9% of Net Assets
Machinery -- 1.9%
1,363,363 Gorman-Rupp Co.^ $3,462,942 $ -- $3,326,606 $ 50,362,629
---------------
Total Machinery $ 50,362,629
------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $6,956,764) $ 50,362,629
------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN AFFILIATED ISSUER -- 1.9%
(Cost $6,956,764) $ 50,362,629
------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.1% $ 2,120,695
------------------------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $2,636,860,210
============================================================================================================
REIT Real Estate Investment Trust.
(A.D.R.) American Depositary Receipts.
^ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2019, aggregated $573,848,931 and $627,577,184,
respectively.
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc. (the "Adviser") serves as the Fund's investment adviser, as
set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to
procedures adopted by the Board of Trustees. Under these procedures, cross
trades are effected at current market prices. During the year ended October 31,
2019, the Fund did not engage in cross trade activity.
At October 31, 2019, the net unrealized appreciation on investments based on
cost for federal tax purposes of $2,078,363,559 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $626,562,338
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (70,186,382)
-------------
Net unrealized appreciation $556,375,956
-------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/19 23
Schedule of Investments | 10/31/19 (continued)
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of October 31, 2019, in
valuing the Fund's investments:
--------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------------
Common Stocks $2,634,739,515 $ -- $ -- $2,634,739,515
--------------------------------------------------------------------------------------------------
Total Investments in Securities $2,634,739,515 $ -- $ -- $2,634,739,515
--------------------------------------------------------------------------------------------------
During the year ended October 31, 2019, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Annual Report | 10/31/19
Statement of Assets and Liabilities | 10/31/19
ASSETS:
Investments in unaffiliated issuers, at value (cost $2,091,749,249) $2,584,376,886
Investments in affiliated issuers, at value (cost $6,956,764) 50,362,629
Cash 358,971
Foreign currencies, at value (cost $57,687) 48,784
Receivables --
Fund shares sold 2,116,968
Dividends 5,100,992
Other assets 78,601
-------------------------------------------------------------------------------------
Total assets $2,642,443,831
-------------------------------------------------------------------------------------
LIABILITIES:
Payables --
Fund shares repurchased $ 4,958,392
Trustees' fees 10,387
Transfer agent fees 335,255
Due to affiliates 159,626
Accrued expenses 119,961
-------------------------------------------------------------------------------------
Total liabilities $ 5,583,621
-------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital $2,017,384,901
Distributable earnings 619,475,309
-------------------------------------------------------------------------------------
Net assets $2,636,860,210
-------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $884,809,387/24,858,300 shares) $ 35.59
Class C (based on $103,483,003/2,956,411 shares) $ 35.00
Class K (based on $276,921,185/7,767,288 shares) $ 35.65
Class R (based on $69,434,999/1,913,758 shares) $ 36.28
Class Y (based on $1,302,211,636/36,122,387 shares) $ 36.05
MAXIMUM OFFERING PRICE PER SHARE:
Class A (based on $35.59 net asset value per
share/100%-5.75% maximum sales charge) $ 37.76
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/19 25
Statement of Operations
For the Year Ended 10/31/19
INVESTMENT INCOME:
Dividends from unaffiliated issuers (net of foreign taxes
withheld $655,454) $ 77,064,083
Dividends from affiliated issuers 3,462,942
Interest from unaffiliated issuers 170,777
---------------------------------------------------------------------------------------------------------
Total investment income $ 80,697,802
---------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 15,399,145
Administrative expense 772,303
Transfer agent fees
Class A 683,723
Class C 120,537
Class K 1,926
Class R 163,349
Class Y 1,559,216
Distribution fees
Class A 2,129,559
Class C 1,070,158
Class R 355,468
Shareowner communications expense 206,747
Custodian fees 37,608
Registration fees 187,801
Professional fees 144,625
Printing expense 44,674
Trustees' fees 124,179
Insurance expense 32,592
Miscellaneous 93,602
---------------------------------------------------------------------------------------------------------
Total expenses $ 23,127,212
---------------------------------------------------------------------------------------------------------
Net investment income $ 57,570,590
---------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ 58,397,323
Other assets and liabilities denominated
in foreign currencies (6,411) $ 58,390,912
---------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $154,130,233
Investments in affiliated issuers 3,326,606
Other assets and liabilities denominated
in foreign currencies (22,086) $ 157,434,753
---------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ 215,825,665
---------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 273,396,255
---------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Annual Report | 10/31/19
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/19 10/31/18
-----------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 57,570,590 $ 52,068,842
Net realized gain (loss) on investments 58,390,912 113,650,012
Change in net unrealized appreciation
(depreciation) on investments 157,434,753 (129,856,859)
------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 273,396,255 $ 35,861,995
------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Class A ($2.37 and $1.97 per share, respectively) $ (58,422,930) $ (47,158,674)
Class C ($2.05 and $1.69 per share, respectively) (6,733,274) (7,056,909)
Class K ($2.50 and $2.09 per share, respectively) (17,273,284) (7,683,351)
Class R ($2.21 and $1.80 per share, respectively) (4,711,818) (4,434,105)
Class Y ($2.46 and $2.06 per share, respectively) (89,683,660) (61,449,191)
------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (176,824,966) $ (127,782,230)
------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 637,299,678 $ 884,641,693
Reinvestment of distributions 163,620,328 118,191,339
Cost of shares repurchased (749,328,297) (647,707,651)
------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 51,591,709 $ 355,125,381
------------------------------------------------------------------------------------------------------------
Net increase in net assets $ 148,162,998 $ 263,205,146
NET ASSETS:
Beginning of year $ 2,488,697,212 $ 2,225,492,066
------------------------------------------------------------------------------------------------------------
End of year $ 2,636,860,210 $ 2,488,697,212
------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/19 27
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------------
Year Year Year Year
Ended Ended Ended Ended
10/31/19 10/31/19 10/31/18 10/31/18
Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------
Class A
Shares sold 3,860,473 $ 128,716,526 4,551,255 $ 163,783,068
Reinvestment of distributions 1,704,512 55,644,813 1,276,848 45,068,537
Less shares repurchased (4,985,241) (167,269,473) (5,620,821) (201,361,300)
-------------------------------------------------------------------------------------------------------
Net increase 579,744 $ 17,091,866 207,282 $ 7,490,305
-------------------------------------------------------------------------------------------------------
Class C
Shares sold 583,924 $ 18,847,145 853,619 $ 30,144,119
Reinvestment of distributions 190,828 6,123,011 187,192 6,466,450
Less shares repurchased (1,119,272) (36,569,594) (1,972,942) (70,234,880)
-------------------------------------------------------------------------------------------------------
Net decrease (344,520) $ (11,599,438) (932,131) $ (33,624,311)
-------------------------------------------------------------------------------------------------------
Class K
Shares sold 2,911,029 $ 97,030,242 3,934,998 $ 142,190,611
Reinvestment of distributions 485,199 15,876,272 212,849 7,550,364
Less shares repurchased (1,782,664) (60,341,813) (649,314) (23,438,950)
-------------------------------------------------------------------------------------------------------
Net increase 1,613,564 $ 52,564,701 3,498,533 $ 126,302,025
-------------------------------------------------------------------------------------------------------
Class R
Shares sold 424,145 $ 14,456,410 405,419 $ 14,794,900
Reinvestment of distributions 135,746 4,526,960 107,732 3,861,745
Less shares repurchased (771,063) (26,297,517) (950,591) (34,760,223)
-------------------------------------------------------------------------------------------------------
Net decrease (211,172) $ (7,314,147) (437,440) $ (16,103,578)
-------------------------------------------------------------------------------------------------------
Class Y
Shares sold 11,132,147 $ 378,249,355 14,693,026 $ 533,728,995
Reinvestment of distributions 2,463,226 81,449,272 1,544,001 55,244,243
Less shares repurchased (13,533,650) (458,849,900) (8,726,697) (317,912,298)
-------------------------------------------------------------------------------------------------------
Net increase 61,723 $ 848,727 7,510,330 $ 271,060,940
-------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Annual Report | 10/31/19
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
--------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 34.39 $ 35.68 $ 33.76 $ 34.41 $ 36.47
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income (loss) $ 0.72 $ 0.72 $ 0.55 $ 0.68 $ 0.68
Net realized and unrealized gain (loss) on investments 2.85 (0.04) 5.58 1.89 1.16
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.57 $ 0.68 $ 6.13 $ 2.57 $ 1.84
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.79) $ (0.57) $ (0.51) $ (0.64) $ (0.75)
Net realized gain (1.58) (1.40) (3.70) (2.58) (3.15)
------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (2.37) $ (1.97) $ (4.21) $ (3.22) $ (3.90)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.20 $ (1.29) $ 1.92 $ (0.65) $ (2.06)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 35.59 $ 34.39 $ 35.68 $ 33.76 $ 34.41
==============================================================================================================================
Total return (b) 11.15% 1.84% 19.68%(c) 8.11% 5.30%
Ratio of net expenses to average net assets 1.00% 1.00% 1.02% 1.04% 1.06%
Ratio of net investment income (loss) to average net assets 2.14% 2.00% 1.62% 2.10% 1.99%
Portfolio turnover rate 23% 27% 33% 35% 40%
Net assets, end of period (in thousands) $884,809 $835,012 $858,764 $757,158 $732,397
==============================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2017, the total return would
have been 19.64%.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/19 29
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 33.80 $ 35.06 $ 33.24 $ 33.91 $ 36.03
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income (loss) $ 0.46 $ 0.48 $ 0.30 $ 0.43 $ 0.42
Net realized and unrealized gain (loss) on investments 2.79 (0.05) 5.47 1.87 1.13
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.25 $ 0.43 $ 5.77 $ 2.30 $ 1.55
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.47) $ (0.29) $ (0.25) $ (0.39) $ (0.52)
Net realized gain (1.58) (1.40) (3.70) (2.58) (3.15)
------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (2.05) $ (1.69) $ (3.95) $ (2.97) $ (3.67)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.20 $ (1.26) $ 1.82 $ (0.67) $ (2.12)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 35.00 $ 33.80 $ 35.06 $ 33.24 $ 33.91
------------------------------------------------------------------------------------------------------------------------------
Total return (b) 10.27% 1.14% 18.77% 7.34%(c) 4.49%
Ratio of net expenses to average net assets 1.78% 1.72% 1.75% 1.77% 1.80%
Ratio of net investment income (loss) to average net assets 1.38% 1.35% 0.89% 1.34% 1.24%
Portfolio turnover rate 23% 27% 33% 35% 40%
Net assets, end of period (in thousands) $103,483 $111,558 $148,417 $140,199 $116,090
------------------------------------------------------------------------------------------------------------------------------
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) If the Fund had not recognized gains in settlement of class action lawsuits
during year ended October 31, 2016, the total return would have been 7.30%.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Annual Report | 10/31/19
----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
----------------------------------------------------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 34.47 $ 35.75 $ 33.81 $ 34.44 $ 36.52
----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income (loss) $ 0.83 $ 0.85 $ 0.67 $ 0.80 $ 0.80
Net realized and unrealized gain (loss) on investments 2.85 (0.04) 5.60 1.89 1.17
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.68 $ 0.81 $ 6.27 $ 2.69 $ 1.97
----------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.92) $ (0.69) $ (0.63) $ (0.74) $ (0.90)
Net realized gain (1.58) (1.40) (3.70) (2.58) (3.15)
----------------------------------------------------------------------------------------------------------------------------
Total distributions $ (2.50) $ (2.09) $ (4.33) $ (3.32) $ (4.05)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.18 $ (1.28) $ 1.94 $ (0.63) $ (2.08)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 35.65 $ 34.47 $ 35.75 $ 33.81 $ 34.44
----------------------------------------------------------------------------------------------------------------------------
Total return (b) 11.53% 2.21% 20.12% 8.50% 5.67%
Ratio of net expenses to average net assets 0.66% 0.66% 0.66% 0.67% 0.67%
Ratio of net investment income (loss) to average net assets 2.46% 2.38% 1.96% 2.42% 2.32%
Portfolio turnover rate 23% 27% 33% 35% 40%
Net assets, end of period (in thousands) $ 276,921 $212,103 $94,915 $48,194 $20,908
----------------------------------------------------------------------------------------------------------------------------
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/19 31
Financial Highlights (continued)
-------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
-------------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 34.98 $ 36.24 $ 34.24 $ 34.83 $ 36.88
------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income (loss) $ 0.61 $ 0.56 $ 0.43 $ 0.57 $ 0.57
Net realized and unrealized gain (loss) on investments 2.90 (0.02) 5.65 1.92 1.16
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.51 $ 0.54 $ 6.08 $ 2.49 $ 1.73
------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.63) $ (0.40) $ (0.38) $ (0.50) $ (0.63)
Net realized gain (1.58) (1.40) (3.70) (2.58) (3.15)
------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (2.21) $ (1.80) $ (4.08) $ (3.08) $ (3.78)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.30 $ (1.26) $ 2.00 $ (0.59) $ (2.05)
------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 36.28 $ 34.98 $ 36.24 $ 34.24 $ 34.83
------------------------------------------------------------------------------------------------------------------------------
Total return (b) 10.71% 1.42% 19.19% 7.73% 4.90%
Ratio of net expenses to average net assets 1.39% 1.44% 1.41% 1.40% 1.41%
Ratio of net investment income (loss) to average net assets 1.77% 1.55% 1.24% 1.73% 1.64%
Portfolio turnover rate 23% 27% 33% 35% 40%
Net assets, end of period (in thousands) $69,435 $74,323 $92,870 $85,307 $75,876
------------------------------------------------------------------------------------------------------------------------------
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Annual Report | 10/31/19
---------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/19 10/31/18 10/31/17 10/31/16* 10/31/15*
---------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 34.82 $ 36.10 $ 34.10 $ 34.71 $ 36.77
---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations: (a)
Net investment income (loss) $ 0.81 $ 0.86 $ 0.64 $ 0.77 $ 0.78
Net realized and unrealized gain (loss) on investments 2.88 (0.08) 5.65 1.92 1.16
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.69 $ 0.78 $ 6.29 $ 2.69 $ 1.94
---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.88) $ (0.66) $ (0.59) $ (0.72) $ (0.85)
Net realized gain (1.58) (1.40) (3.70) (2.58) (3.15)
---------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (2.46) $ (2.06) $ (4.29) $ (3.30) $ (4.00)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 1.23 $ (1.28) $ 2.00 $ (0.61) $ (2.06)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 36.05 $ 34.82 $ 36.10 $ 34.10 $ 34.71
---------------------------------------------------------------------------------------------------------------------------------
Total return (b) 11.41% 2.09% 19.99%(c) 8.40% 5.56%
Ratio of net expenses to average net assets 0.78% 0.76% 0.77% 0.77% 0.78%
Ratio of net investment income (loss) to average net assets 2.37% 2.37% 1.86% 2.34% 2.26%
Portfolio turnover rate 23% 27% 33% 35% 40%
Net assets, end of period (in thousands) $1,302,212 $1,255,700 $1,030,526 $684,969 $527,305
---------------------------------------------------------------------------------------------------------------------------------
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
(c) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2017, the total return would
have been 19.96%.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/19 33
Notes to Financial Statements | 10/31/19
1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the "Fund") is a Delaware statutory trust. The Fund
is 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 five classes of shares designated as Class A, Class C, Class K,
Class R and Class Y shares. Each class of shares represents an interest in the
same portfolio of investments of the Fund and has identical rights (based on
relative net asset values) to assets and liquidation proceeds. Share classes
can bear different rates of class-specific fees and expenses such as transfer
agent and distribution fees. Differences in class-specific fees and expenses
will result in differences in net investment income and, therefore, the payment
of different dividends from net investment income earned by each class. The
Amended and Restated Declaration of Trust of the Fund gives the Board of
Trustees the flexibility to specify either per-share voting or dollar-weighted
voting when submitting matters for shareholder approval. Under per-share
voting, each share of a class of the Fund is entitled to one vote. Under
dollar-weighted voting, a shareholder's voting power is determined not by the
number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class K or Class Y shares.
Amundi Pioneer Asset Management, Inc., an indirect, wholly owned subsidiary of
Amundi and Amundi's wholly owned subsidiary, Amundi USA, Inc., serves as the
Fund's investment adviser (the "Adviser"). Amundi Pioneer Distributor, Inc., an
affiliate of Amundi Pioneer Asset Management, Inc., serves as the Fund's
distributor (the "Distributor").
In August 2018, the Securities and Exchange Commission ("SEC") released a
Disclosure Update and Simplification Final Rule. The Final Rule amends
Regulation S-X disclosures requirements to conform them to U.S. Generally
Accepted Accounting Principles ("U.S. GAAP") for investment companies. The
Fund's financial statements were prepared in compliance with the new amendments
to Regulation S-X.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. U.S. GAAP requires the management of the
Fund to make estimates and assumptions that affect the
34 Pioneer Equity Income Fund | Annual Report | 10/31/19
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gain or loss on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange ("NYSE") is open, as of the close of regular trading on
the NYSE.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity 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 use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Pioneer Equity Income Fund | Annual Report | 10/31/19 35
Securities for which independent pricing services or broker-dealers are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of the Adviser pursuant
to procedures adopted by the Fund's Board of Trustees. The Adviser's fair
valuation team uses fair value methods approved by the Valuation Committee
of the Board of Trustees. The Adviser's fair valuation team is responsible
for monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices, and
such differences could be material.
At October 31, 2019, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance industry pricing
model).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country rates
and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
36 Pioneer Equity Income Fund | Annual Report | 10/31/19
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated on the Statement of Operations from
the effects of changes in the market prices of those securities, but are
included with the net realized and unrealized gain or loss on investments.
D. 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 net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes is
required. As of October 31, 2019, the Fund did not accrue any interest or
penalties with respect to uncertain tax positions, which, if applicable,
would be recorded as an income tax expense on the Statement of Operations.
Tax returns filed within the prior three years remain subject to
examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions for financial
statement purposes resulting from differences in the recognition or
classification of income or distributions for financial statement and tax
purposes. Capital accounts within the financial statements are adjusted for
permanent book/tax differences to reflect tax character, but are not
adjusted for temporary differences.
At October 31, 2019, the Fund reclassified $111,066 to increase
distributable earnings and $111,066 to decrease paid-in capital to reflect
permanent book/tax differences. These adjustments have no impact on net
assets or the results of operations.
Pioneer Equity Income Fund | Annual Report | 10/31/19 37
The tax character of distributions paid during the years ended October 31,
2019 and October 31, 2018, were as follows:
-------------------------------------------------------------
2019 2018
-------------------------------------------------------------
Distributions paid from:
Ordinary income $ 62,285,134 $ 40,557,818
Long-term capital gain 114,539,832 87,224,412
-------------------------------------------------------------
Total $176,824,966 $127,782,230
-------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2019:
-------------------------------------------------------------
2019
-------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 3,888,825
Undistributed long-term capital gain 59,428,136
Net unrealized appreciation 556,158,348
-------------------------------------------------------------
Total $619,475,309
-------------------------------------------------------------
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales and tax basis
adjustments on Real Estate Investment Trust (REIT) holdings, partnerships
and common stock holdings.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $114,675 in underwriting commissions on the sale of
Class A shares during the year ended October 31, 2019.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its 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 C and Class R shares of the Fund,
respectively (see Note 4). Class K and Class Y shares do not pay
distribution fees. All expenses and fees paid to the Fund's transfer agent
for its services are allocated among the classes of shares based on the
number of accounts in each class and the ratable allocation of related
out-of-pocket expenses (see Note 3).
38 Pioneer Equity Income Fund | Annual Report | 10/31/19
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 and at the same time, except that net
investment income dividends to Class A, Class C, Class K, Class R and Class
Y shares can reflect different transfer agent and distribution expense
rates.
G. Risks
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than investments in a developed
market. These risks include disruptive political or economic conditions and
the imposition of adverse governmental laws or currency exchange
restrictions.
With the increased use of technologies such as the Internet to conduct
business, the Fund is susceptible to operational, information security and
related risks. While the Fund's Adviser has established business continuity
plans in the event of, and risk management systems to prevent, limit or
mitigate, such cyber-attacks, there are inherent limitations in such plans
and systems, including the possibility that certain risks have not been
identified. Furthermore, the Fund cannot control the cybersecurity plans
and systems put in place by service providers to the Fund such as Brown
Brothers Harriman & Co., the Fund's custodian and accounting agent, and DST
Asset Manager Solutions, Inc., the Fund's transfer agent. In addition, many
beneficial owners of Fund shares hold them through accounts at
broker-dealers, retirement platforms and other financial market
participants over which neither the Fund nor Amundi Pioneer exercises
control. Each of these may in turn rely on service providers to them, which
are also subject to the risk of cyber-attacks. Cybersecurity failures or
breaches at Amundi Pioneer or the Fund's service providers or
intermediaries have the ability to cause
Pioneer Equity Income Fund | Annual Report | 10/31/19 39
disruptions and impact business operations, potentially resulting in
financial losses, interference with the Fund's ability to calculate its net
asset value, impediments to trading, the inability of Fund shareowners to
effect share purchases, redemptions or exchanges or receive distributions,
loss of or unauthorized access to private shareowner information and
violations of applicable privacy and other laws, regulatory fines,
penalties, reputational damage, or additional compliance costs. Such costs
and losses may not be covered under any insurance. In addition, maintaining
vigilance against cyber-attacks may involve substantial costs over time,
and system enhancements may themselves be subject to cyber-attacks.
The Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
2. Management Agreement
The Adviser manages the Fund's portfolio. Management fees are calculated daily
at the annual rate of 0.60% of the Fund's average daily net assets up to $10
billion and 0.575% on assets over $10 billion. For the year ended October 31,
2019, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.60% (annualized) of the Fund's average daily net
assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$128,724 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at October 31, 2019.
3. Transfer Agent
DST Asset Manager Solutions, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
40 Pioneer Equity Income Fund | Annual Report | 10/31/19
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings, and outgoing phone calls. For the year
ended October 31, 2019, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareowner Communications
--------------------------------------------------------------------------------
Class A $142,601
Class C 14,985
Class K 1,341
Class R 5,163
Class Y 42,657
--------------------------------------------------------------------------------
Total $206,747
--------------------------------------------------------------------------------
4. Distribution and Service Plans
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A, Class C and
Class R shares. Pursuant to the Plan, the Fund pays the Distributor 0.25% of
the 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 also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for 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 C shares.
Pursuant to the Plan, the Fund further pays the Distributor 0.50% of the
average daily net assets attributable to Class R shares for distribution
services. Included in "Due to affiliates" reflected on the Statement of Assets
and Liabilities is $30,902 in distribution fees payable to the Distributor at
October 31, 2019.
The Fund also has adopted a separate service plan for Class R shares (the
"Service Plan"). The Service Plan authorizes the Fund to pay securities
dealers, plan administrators or other service organizations that agree to
provide certain services to retirement plans or plan participants holding
shares of the Fund a service fee of up to 0.25% of the Fund's average daily net
assets attributable to Class R shares held by such plans.
Pioneer Equity Income Fund | Annual Report | 10/31/19 41
In addition, redemptions of Class A and Class C shares may be subject to a
contingent deferred sales charge ("CDSC"). A CDSC of 1.00% may be imposed on
redemptions of certain net asset value purchases of Class A shares within 12
months of purchase. Redemptions of Class C shares within 12 months of purchase
are subject to a CDSC of 1.00%, based on the lower of cost or market value of
shares being redeemed. Shares purchased as part of an exchange remain subject
to any CDSC that applied to the original purchase of those shares. There is no
CDSC for Class K, Class R or Class Y shares. Proceeds from the CDSCs are paid
to the Distributor. For the year ended October 31, 2019, CDSCs in the amount of
$8,825 were paid to the Distributor.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
"Funds"), participates in a 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 the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act.
Effective August 1, 2018 the Fund participates in credit facility that is in
the amount of $250 million. Under such credit facility, depending on the type
of loan, interest on borrowings is payable at the London Interbank Offered Rate
("LIBOR") plus a credit spread. The Funds also pay an annual commitment fee to
participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the year ended October 31, 2019, the Fund had no borrowings
under the credit facility.
6. Affiliated Companies
The Fund's investments in certain companies may 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 year ended year:
--------------------------------------------------------------------------------------------------------------------
Beginning Corporate
Balance Purchases Sales Actions Ending Dividend Realized
Affiliate (shares) (shares) (shares) (shares) (shares) Income Value Gain
--------------------------------------------------------------------------------------------------------------------
Gorman
Rupp Co. 1,363,363 -- -- -- 1,363,363 $3,462,942 $50,362,629 $ --
42 Pioneer Equity Income Fund | Annual Report | 10/31/19
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareholders of Pioneer Equity Income Fund:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Pioneer
Equity Income Fund (the "Fund"), including the schedule of investments, as of
October 31, 2019, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, the financial highlights for each of the three years in the
period then ended and the related notes (collectively referred to as the
"financial statements"). The financial highlights for the periods ended October
31, 2015 and October 31, 2016 were audited by another independent registered
public accounting firm whose report, dated December 23, 2016, expressed an
unqualified opinion on those financial highlights. In our opinion, the
financial statements present fairly, in all material respects, the financial
position of the Fund at October 31, 2019, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended, and its financial highlights for each of the three years in
the period then ended, in conformity with U.S. generally accepted accounting
principles.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the Fund's financial statements
based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required
to be independent with respect to the Fund in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Fund is not required to have,
nor were we engaged to perform, an audit of the Fund's internal control over
financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting, but not for the
purpose of expressing an opinion on the effectiveness of the Fund's internal
control over financial reporting. Accordingly, we express no such opinion.
Pioneer Equity Income Fund | Annual Report | 10/31/19 43
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of October 31, 2019, by correspondence with the custodian and brokers.
Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the Fund's auditor since 2017.
Boston, Massachusetts
December 20, 2019
44 Pioneer Equity Income Fund | Annual Report | 10/31/19
Additional Information (unaudited)
For the year ended October 31, 2019, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth
Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate
up to the maximum amount of such dividends allowable under the Act, as taxed at
a maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2019 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 100.0%.
Pioneer Equity Income Fund | Annual Report | 10/31/19 45
Approval of Investment Management Agreement
Amundi Pioneer Asset Management, Inc. ("APAM") serves as the investment adviser
to Pioneer Equity Income Fund (the "Fund") pursuant to an investment management
agreement between APAM and the Fund. In order for APAM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether
to renew the investment management agreement for the Fund.
The contract review process began in January 2019 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. Contract review materials were provided to the Trustees in March 2019,
July 2019 and September 2019. In addition, the Trustees reviewed and discussed
the Fund's performance at regularly scheduled meetings throughout the year, and
took into account other information related to the Fund provided to the
Trustees at regularly scheduled meetings, in connection with the review of the
Fund's investment management agreement.
In March 2019, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment management agreement, and reviewed and
discussed the qualifications of the investment management teams for the Fund,
as well as the level of investment by the Fund's portfolio managers in the
Fund. In July 2019, the Trustees, among other things, reviewed the Fund's
management fees and total expense ratios, the financial statements of APAM and
its parent companies, profitability analyses provided by APAM, and analyses
from APAM as to possible economies of scale. The Trustees also reviewed the
profitability of the institutional business of APAM and APAM's affiliate,
Amundi Pioneer Institutional Asset Management, Inc. ("APIAM" and, together with
APAM, "Amundi Pioneer"), as compared to that of APAM's fund management
business, and considered the differences between the fees and expenses of the
Fund and the fees and expenses of APAM's and APIAM's institutional accounts, as
well as the different services provided by APAM to the Fund and by APAM and
APIAM to the institutional accounts. The Trustees further considered contract
review materials, including additional materials received in response to the
Trustees' request, in September 2019.
At a meeting held on September 17, 2019, based on their evaluation of the
information provided by APAM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment management agreement for another year. In
46 Pioneer Equity Income Fund | Annual Report | 10/31/19
approving the renewal of the investment management 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 renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by APAM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed APAM's investment approach
for the Fund and its research process. The Trustees considered the resources of
APAM and the personnel of APAM who provide investment management services to
the Fund. They also reviewed the amount of non-Fund assets managed by the
portfolio managers of the Fund. They considered the non-investment resources
and personnel of APAM that are involved in APAM's services to the Fund,
including APAM's compliance, risk management, and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by APAM's senior management to the Pioneer Fund complex.
The Trustees considered that APAM supervises and monitors the performance of
the Fund's service providers and provides the Fund with personnel (including
Fund officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
APAM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to APAM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by APAM to the Fund were
satisfactory and consistent with the terms of the investment management
agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and
discuss throughout the year data prepared by APAM and information comparing the
Fund's performance with the performance of its peer group of funds, as
classified by Morningstar, Inc. (Morningstar), and the performance of the
Fund's benchmark index. They also discuss the Fund's performance with APAM on a
regular basis. The Trustees' regular reviews and discussions were factored into
the Trustees' deliberations concerning the renewal of the investment management
agreement.
Pioneer Equity Income Fund | Annual Report | 10/31/19 47
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees of its peer group of funds as classified
by Morningstar and also to 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 peer group
comparisons referred to below are organized in quintiles. Each quintile
represents one-fifth of the peer group. In all peer group comparisons referred
to below, first quintile is most favorable to the Fund's shareowners. The
Trustees noted that they separately review and consider the impact of the
Fund's transfer agency and Fund- and APAM-paid expenses for sub-transfer agency
and intermediary arrangements, and that the results of the most recent such
review were considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the second quintile relative to the management fees paid by
other funds in its Morningstar category for the comparable period. The Trustees
considered that the expense ratio of the Fund's Class A shares for the most
recent fiscal year was in the first quintile relative to its Strategic Insight
peer group for the comparable period. The Trustees considered that the expense
ratio of the Fund's Class Y shares for the most recent fiscal year was in the
third quintile relative to its Strategic Insight peer group for the comparable
period.
The Trustees reviewed management fees charged by APAM and APIAM to
institutional and other clients, including publicly offered European funds
sponsored by APAM's affiliates, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered APAM's costs in providing
services to the Fund and APAM's and APIAM's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
APAM's and APIAM's client accounts, the Trustees took into account the
respective demands, resources and complexity associated with the Fund and other
client accounts. The Trustees noted that, in some instances, the fee rates for
those clients were lower than the management fee for the Fund and considered
that, under the investment management agreement with the Fund, APAM performs
additional services for the Fund that it does not provide to those other
clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the entrepreneurial risks associated with APAM's management of
the Fund.
48 Pioneer Equity Income Fund | Annual Report | 10/31/19
The Trustees concluded that the management fee payable by the Fund to APAM was
reasonable in relation to the nature and quality of the services provided by
APAM.
Profitability
The Trustees considered information provided by APAM regarding the
profitability of APAM with respect to the advisory services provided by APAM to
the Fund, including the methodology used by APAM in allocating certain of its
costs to the management of the Fund. The Trustees also considered APAM's profit
margin in connection with the overall operation of the Fund. They further
reviewed the financial results, including the profit margins, realized by APAM
and APIAM from non-fund businesses. The Trustees considered APAM's profit
margins 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
concluded that APAM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered APAM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are the
following: fee levels, expense subsidization, investment by APAM in research
and analytical capabilities and APAM's commitment and resource allocation to
the Fund. The Trustees noted that profitability also may be an indicator of the
availability of any economies of scale, although profitability may vary for
other reasons including due to reductions in expenses. The Trustees concluded
that economies of scale, if any, were being appropriately shared with the
Fund.
Other Benefits
The Trustees considered the other benefits that APAM enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the investment management
agreement, for services provided by APAM and its affiliates. The Trustees
further considered the revenues and profitability of APAM's businesses other
than the Fund business. To the extent applicable, the Trustees also considered
the benefits to the Fund and to APAM and its affiliates from the use of "soft"
commission dollars generated by the Fund to pay for research and brokerage
services.
Pioneer Equity Income Fund | Annual Report | 10/31/19 49
The Trustees considered that Amundi Pioneer is the principal U.S. asset
management business of Amundi, which is one of the largest asset managers
globally. Amundi's worldwide asset management business manages over $1.6
trillion in assets (including the Pioneer Funds). The Trustees considered that
APAM's relationship with Amundi creates potential opportunities for APAM, APIAM
and Amundi that derive from APAM's relationships with the Fund, including
Amundi's ability to market the services of APAM globally. The Trustees noted
that APAM has access to additional research and portfolio management
capabilities as a result of its relationship with Amundi and Amundi's enhanced
global presence that may contribute to an increase in the resources available
to APAM. The Trustees considered that APAM and the Fund receive reciprocal
intangible benefits from the relationship, including mutual brand recognition
and, for the Fund, direct and indirect access to the resources of a large
global asset manager. The Trustees concluded that any such benefits received by
APAM as a result of its relationship with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including the Independent Trustees, concluded that the investment
management agreement for the Fund, including the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of the investment
management agreement.
50 Pioneer Equity Income Fund | Annual Report | 10/31/19
Trustees, Officers and Service Providers
Investment Adviser and Administrator
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Transfer Agent
DST Asset Manager Solutions, 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.amundipioneer.com/us. This information is also available on
the Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their
principal occupations and other directorships they have held during at least
the past five years. Trustees who are interested persons of the Fund within the
meaning of the 1940 Act are referred to as Interested Trustees. Trustees who
are not interested persons of the Fund are referred to as Independent Trustees.
Each of the Trustees, except for Mr. Bock and Ms. Durnin, serve as Trustees of
each of the 45 U.S. registered investment portfolios for which Amundi Pioneer
serves as investment adviser (the "Pioneer Funds"). Mr. Bock and Ms. Durnin
serve as Trustees of 39 Pioneer Funds. The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Equity Income Fund | Annual Report | 10/31/19 51
Independent Trustees
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (68) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge
Chairman of the Board Serves until a successor present); Chairman (2008 - 2013) and Chief Financial Solutions,
and Trustee trustee is elected or earlier Executive Officer (2008 - 2012), Quadriserv, Inc. (investor
retirement or removal. Inc. (technology products for securities communications and
lending industry); and Senior Executive Vice securities processing
President, The Bank of New York (financial provider for financial
and securities services) (1986 - 2004) services industry)
(2009 - present);
Director, Quadriserv,
Inc. (2005 - 2013);
and Commissioner, New
Jersey State Civil
Service Commission
(2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
John E. Baumgardner, Jr. (68) Trustee since 2019. Of Counsel (2019 - present), Partner Chairman, The Lakeville
Trustee Serves until a successor (1983-2018), Sullivan & Cromwell LLP Journal Company,
trustee is elected or earlier (law firm). LLC, (privately-held
retirement or removal. community newspaper
group) (2015 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (75) Trustee since 2005. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a successor Advisors (corporate advisory services Mortgage Trust
trustee is elected or earlier company) (1997 - 2004 and 2008 - present); (publicly-traded
retirement or removal. Interim Chief Executive Officer, Oxford mortgage REIT)
Analytica, Inc. (privately held research and (2004 - 2009, 2012 -
consulting company) (2010); Executive Vice present); Director
President and Chief Financial Officer, of The Swiss
I-trax, Inc. (publicly traded health care Helvetia Fund, Inc.
services company) (2004 - 2007); and (closed-end fund)
Executive Vice President and Chief Financial (2010 - 2017);
Officer, Pedestal Inc. (internet-based Director of Oxford
mortgage trading company) (2000 - 2002); Analytica, Inc.
Private Consultant (1995 - 1997); Managing (2008 - 2015); and
Director, Lehman Brothers (1992 - 1995); and Director of
Executive, The World Bank (1979 - 1992) Enterprise Community
Investment, Inc.
(privately-held
affordable housing
finance company)
(1985 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Equity Income Fund | Annual Report | 10/31/19
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Diane Durnin (62) Trustee since 2019. Managing Director - Head of Product Strategy None
Trustee Serves until a successor and Development, BNY Mellon Investment
trustee is elected or earlier Management (2012-2018); Vice Chairman - The
retirement or removal. Dreyfus Corporation (2005 - 2018): Executive
Vice President Head of Product, BNY Mellon
Investment Management (2007-2012); Executive
Director- Product Strategy, Mellon Asset
Management (2005-2007); Executive Vice
President Head of Products, Marketing and
Client Service, Dreyfus Corporation
(2000-2005); and Senior Vice President
Strategic Product and Business Development,
Dreyfus Corporation (1994-2000)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (75) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Serves until a successor Economy, Harvard University (1972 - present) Institutional Funds
trustee is elected or earlier Investment Trust and
retirement or removal. Mellon Institutional
Funds Master Portfolio
(oversaw 17 portfolios
in fund complex)
(1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (72) Trustee since 1990. Founding Director, Vice-President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or earlier Inc. (consulting firm) (1982 - present);
retirement or removal. Desautels Faculty of Management, McGill
University (1999 - 2017); and Manager of
Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (62) Trustee since 2017. Chief Investment Officer, 1199 SEIU Funds None
Trustee (Advisory Trustee from (healthcare workers union pension funds)
2014 - 2017). Serves until a (2001 - present); Vice President -
successor trustee is elected International Investments Group, American
or earlier retirement International Group, Inc. (insurance
or removal. company) (1993 - 2001); Vice President -
Corporate Finance and Treasury Group,
Citibank, N.A. (1980 - 1986 and 1990 -
1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer of
debt securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987 - 1988); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank) (1986 -
1987)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/19 53
Independent Trustees (continued)
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (71) Trustee since 1990. President and Chief Executive Officer, Director of New
Trustee Serves until a successor Metric Financial Inc. (formerly known as America High Income
trustee is elected or earlier Newbury Piret Company) (investment banking Fund, Inc. (closed-end
retirement or removal. firm) (1981 - present) investment company)
(2004 - present); and
Member, Board of
Governors, Investment
Company Institute
(2000 - 2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (72) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a successor (2012 - present); Executive Vice President,
trustee is elected or earlier BNY Mellon (financial and investment company
retirement or removal. services) (1969 - 2012); Director, BNY
International Financing Corp. (financial
services) (2002 - 2012); Director, Mellon
Overseas Investment Corp. (financial
services) (2009 - 2012); Director, Financial
Models (technology) (2005-2007); Director,
BNY Hamilton Funds, Ireland (offshore
investment companies) (2004-2007);
Chairman/Director, AIB/BNY Securities
Services, Ltd., Ireland (financial services)
(1999-2006); and Chairman, BNY Alternative
Investment Services, Inc. (financial
services) (2005-2007)
------------------------------------------------------------------------------------------------------------------------------------
54 Pioneer Equity Income Fund | Annual Report | 10/31/19
Interested Trustees
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (57)* Trustee since 2017. Director, CEO and President of Amundi None
Trustee, President and Serves until a successor Pioneer Asset Management USA, Inc. (since
Chief Executive Officer trustee is elected or earlier September 2014); Director, CEO and President
retirement or removal of Amundi Pioneer Asset Management, Inc.
(since September 2014); Director, CEO and
President of Amundi Pioneer Distributor,
Inc. (since September 2014); Director, CEO
and President of Amundi Pioneer
Institutional Asset Management, Inc. (since
September 2014); Chair, Amundi Pioneer Asset
Management USA, Inc., Amundi Pioneer
Distributor, Inc. and Amundi Pioneer
Institutional Asset Management, Inc.
(September 2014 - 2018); Managing Director,
Morgan Stanley Investment Management (2010 -
2013); Director of Institutional Business,
CEO of International, Eaton Vance Management
(2005 - 2010); and Director of Amundi USA,
Inc. (since 2017)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (61)* Trustee since 2014. Director and Executive Vice President (since None
Trustee Serves until a successor 2008) and Chief Investment Officer, U.S.
trustee is elected or earlier (since 2010) of Amundi Pioneer Asset
retirement or removal Management USA, Inc.; Director and Executive
Vice President and Chief Investment Officer,
U.S. of Amundi Pioneer (since 2008);
Executive Vice President and Chief
Investment Officer, U.S. of Amundi Pioneer
Institutional Asset Management, Inc. (since
2009); Portfolio Manager of Amundi Pioneer
(since 1999); and Director of Amundi USA,
Inc. (since 2017)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers or
directors of the Fund's investment adviser and certain of its affiliates.
Pioneer Equity Income Fund | Annual Report | 10/31/19 55
Fund Officers
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (54) Since 2003. Serves at the Vice President and Associate General Counsel None
Secretary and Chief discretion of the Board of Amundi Pioneer since January 2008;
Legal Officer Secretary and Chief Legal Officer of all of
the Pioneer Funds since June 2010; Assistant
Secretary of all of the Pioneer Funds from
September 2003 to May 2010; and Vice
President and Senior Counsel of Amundi
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (58) Since 2010. Serves at the Fund Governance Director of Amundi Pioneer None
Assistant Secretary discretion of the Board since December 2006 and Assistant Secretary
of all the Pioneer Funds since June 2010;
Manager - Fund Governance of Amundi Pioneer
from December 2003 to November 2006; and
Senior Paralegal of Amundi Pioneer from
January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (56) Since 2010. Serves at the Senior Counsel of Amundi Pioneer since May None
Assistant Secretary discretion of the Board 2013 and Assistant Secretary of all the
Pioneer Funds since June 2010; and Counsel
of Amundi Pioneer from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (59) Since 2008. Serves at the Vice President - Fund Treasury of Amundi None
Treasurer and Chief discretion of the Board Pioneer; Treasurer of all of the Pioneer
Financial and Funds since March 2008; Deputy Treasurer of
Accounting Officer Amundi Pioneer from March 2004 to February
2008; and Assistant Treasurer of all of the
Pioneer Funds from March 2004 to February
2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (54) Since 2000. Serves at the Director - Fund Treasury of Amundi Pioneer; None
Assistant Treasurer discretion of the Board and Assistant Treasurer of all of the
Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (61) Since 2002. Serves at the Senior Manager - Fund Treasury of Amundi None
Assistant Treasurer discretion of the Board Pioneer; and Assistant Treasurer of all of
the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
56 Pioneer Equity Income Fund | Annual Report | 10/31/19
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
John Malone (48) Since 2018. Serves at the Managing Director, Chief Compliance Officer None
Chief Compliance Officer discretion of the Board of Amundi Pioneer Asset Management; Amundi
Pioneer Institutional Asset Management,
Inc.; and the Pioneer Funds since September
2018; and Chief Compliance Officer of Amundi
Pioneer Distributor, Inc. since January
2014.
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (48) Since 2006. Serves at the Vice President - Amundi Pioneer Asset None
Anti-Money discretion of the Board Management; and Anti-Money Laundering
Laundering Officer Officer of all the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/19 57
This page is for your notes.
58 Pioneer Equity Income Fund | Annual Report | 10/31/19
This page is for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/19 59
This page is for your notes.
60 Pioneer Equity Income Fund | Annual Report | 10/31/19
How to Contact Amundi 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
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 219427
Kansas City, MO 64121-9427
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com/us
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year as
an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form
N-PORT by visiting the Commission's web site at https://www.sec.gov.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer. com/us
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
[C] 2019 Amundi Pioneer Asset Management 19439-13-1219
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 12(a)(1), 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 (see attachment);
(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)).
Mr. David R. Bock, 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.
The audit fees for the Fund were $23,000
payable to Ernst & Young LLP for the year ended
October 31, 2019 and $23,000
for the year ended October 31, 2018.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no audit-related services in 2019 or 2018.
(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.
The tax fees for the Fund were $8,028
payable to Ernst & Young LLP for the year ended
October 31, 2019 and $8,028
for the year ended October 31, 2018.
(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.
Other Fees
There were no other fees in 2019 or 2018.
(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 Amudi Pioneer Asset Management, Inc, the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Fund's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Fund. For the
years ended October 31 2019 and 2018, there were no
services provided to an affiliate that required the
Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants 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 registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund were $8,028
payable to Ernst & Young LLP for the year ended
October 31, 2019 and $8,028 for the year
ended October 31, 2018.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants 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 registrant's 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 of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
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 registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's 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 registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
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 registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
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 registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R 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 and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
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.
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies.
(a) If the registrant is a closed-end management investment company,
provide the following dollar amounts of income and compensation related
to the securities lending activities of the registrant during its most
recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities
lending activities and related services: any share of revenue generated
by the securities lending program paid to the securities lending agent(s)
(revenue split); fees paid for cash collateral management services
(including fees deducted from a pooled cash collateral reinvestment
vehicle) that are not included in the revenue split; administrative
fees that are not included in the revenue split; fees for
indemnification that are not included in the revenue split; rebates
paid to borrowers; and any other fees relating to the securities lending
program that are not included in the revenue split, including a description
of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in
paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee
is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe
the services provided to the registrant by the securities lending agent in
the registrants most recent fiscal year.
N/A
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) 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.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 27, 2019
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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 27, 2019
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 27, 2019
* Print the name and title of each signing officer under his or her signature.