OMB APPROVAL
OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response..... 5.0
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 811-08448
Pioneer Emerging Markets Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2003 through May 31, 2004
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1.REPORTS TO SHAREOWNERS.
PIONEER
------------------------
EMERGING
MARKETS
FUND
Semiannual
Report
5/31/04
[LOGO] PIONEER
Investments(R)
Table of Contents
- --------------------------------------------------------------------------------
Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 8
Schedule of Investments 11
Financial Statements 26
Notes to Financial Statements 35
Trustees, Officers and Service Providers 44
Pioneer Family of Funds 45
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 5/31/04
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
The nation's stock markets looked past the ongoing economic expansion this
spring to focus on broader concerns. The result was a period of volatility that
wiped out the year's early gains. Markets then recovered, and, at the end of
May, most major indices were within a point or two of their year-end levels,
with mid-cap stocks modestly outperforming large- and small-cap segments.
A variety of influences combined to stifle enthusiasm: investors began to
question the level of stock valuations; unprecedented worldwide demand for
energy amid ongoing terror threats and Mideast turmoil drove the price of oil
to record highs, with U.S. gasoline prices exceeding $2.00 a gallon; and
interest rates began to move higher. Outside the United States, some emerging
markets that had been stellar performers pulled back from their highs despite
strong fundamentals. Treasury bond yields were higher - and their prices lower
- - than at year-end, while corporate and high-yield issues also saw prices fall
and yields rise as interest rates edged upward.
The economic recovery can no longer be called jobless; government figures
attest to brisk hiring across most sectors in recent months. Increased job
creation reflects growing employer confidence that profits will grow further as
the expansion moves ahead. Better job prospects also led to a rebound in
consumer confidence following a dip in February. But the strength of the
recovery made investors cautious, as rising energy and commodity prices kindled
inflationary fears and brought clear signals that the Federal Reserve Board
will raise short-term interest rates, perhaps moderating consumer and business
outlays.
Pioneer's managers believe that any rate increases will be gradual; the Federal
Reserve has no desire to cut off the expansion. Furthermore, with short-term
rates at the lowest levels in decades, U.S. businesses can adapt comfortably to
somewhat higher borrowing costs. In addition, the federal income tax cuts that
have helped bolster growth over the past several quarters remain in place.
Higher interest rates and the economy's direction could have important
implications for the way your portfolio is balanced, so an appointment with
your professional financial advisor may well be in order.
More growth choices from Pioneer
When you talk to your advisor, ask to hear about the Pioneer Oak Ridge and
Pioneer Papp Funds. These six additions to our product lineup are designed to
broaden your opportunities to pursue growth. Please consider the Funds'
investment objectives, risks, charges and expenses carefully before investing.
The prospectus contains this and other information about the Fund and should be
read carefully before you invest or send money. To obtain a prospectus and for
other information on any Pioneer fund, contact your investment advisor, call
1-800-225-6292 or visit our web site www.pioneerfunds.com.
Respectfully,
/s/ Osbert M. Hood
Osbert M. Hood, President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 5/31/04
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS PRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.]
Financials 17.7%
Materials 15.9%
Energy 13.3%
Information Technology 12.7%
Telecommunication Services 12.1%
Consumer Discretionary 8.3%
Consumer Staples 8.2%
Industrials 6.0%
Utilities 3.1%
Health Care 2.7%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS PRESENTED AS A BAR CHART IN THE PRINTED MATERIAL.]
South Korea 21.0%
Brazil 13.1%
Taiwan 9.9%
South Africa 6.5%
Russia 6.2%
India 5.6%
Mexico 4.6%
Thailand 4.5%
Malaysia 3.9%
Turkey 3.4%
Chile 3.1%
People's Republic of China 2.4%
Singapore 2.3%
Indonesia 2.2%
Hong Kong 1.7%
Hungary 1.4%
Israel 1.3%
Peru 1.1%
Poland 1.1%
Egypt 1.1%
Other (Individually less than 1%) 3.6%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Samsung Electronics Co. 4.55%
2. Petroleo Brasileiro SA Petrobras (A.D.R.) 2.71
3. Alumax, Inc. 1.99
4. Lukoil Holding (A.D.R.) 1.94
5. SK Telecom Co., Ltd. 1.63
6. Companhia Vale do Rio Doce (A.D.R) 1.46
7. Telefonos de Mexico SA 1.45
8. Surgutneftegaz (A.D.R.) 1.40
9. Anglo American Plc 1.37
10. Pohang Iron & Steel Co., Ltd. (A.D.R.) 1.34
*This list excludes temporary cash and derivative investments. Fund holdings
will vary for other periods.
2
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/04 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 5/31/04 12/1/03
$14.94 $14.47
Distributions per Share Short-Term Long-Term
(12/1/03 - 5/31/04) Dividends Capital Gains Capital Gains
$0.0357 $ -- $ --
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Emerging
Markets Free Index.
Average Annual Total Returns
(As of May 31, 2004)
Net Asset Public Offering
Period Value Price*
Life-of-Class
(6/23/94) 3.79% 3.17%
5 Years 6.60 5.36
1 Year 34.09 26.41
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period.
[THE FOLLOWING DATA WAS PRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment+
6/30/1994 $9,425 $10,000
$9,128 $11,242
$8,756 $9,385
11/30/1996 $10,558 $10,347
$11,653 $8,972
11/30/1998 $7,902 $6,962
$12,405 $10,130
11/30/2000 $9,726 $7,738
$8,908 $7,168
11/30/2002 $9,088 $7,522
$13,008 $10,596
5/31/2004 $13,488 $11,293
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292
or visit our web site www.pioneerfunds.com.
+ Index comparison begins June 30, 1994. The MSCI Emerging Markets Free Index is
an unmanaged, capitalization-weighted measure of securities trading in 26
emerging markets; it reflects only those securities available to foreign
investors. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any sales charges, fees or
expenses. You cannot invest directly in the Index.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
3
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/04 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 5/31/04 12/1/03
$13.87 $13.46
Distributions per Share Short-Term Long-Term
(12/1/03 - 5/31/04) Dividends Capital Gains Capital Gains
$ -- $ -- $ --
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Emerging Markets Free Index.
Average Annual Total Returns
(As of May 31, 2004)
If If
Period Held Redeemed*
Life-of-Class
(6/23/94) 3.01% 3.01%
5 Years 5.79 5.63
1 Year 33.27 29.27
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of the maximum applicable contingent deferred sales charge
(CDSC) at the end of the period. The maximum CDSC of 4% declines to zero over
six years.
[THE FOLLOWING DATA WAS PRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment+
6/30/1994 $10,000 $10,000
$9,644 $11,242
$9,199 $9,385
11/30/1996 $11,011 $10,347
$12,069 $8,972
11/30/1998 $8,112 $6,962
$12,641 $10,130
11/30/2000 $9,822 $7,738
$8,924 $7,168
11/30/2002 $9,048 $7,522
$12,860 $10,596
5/31/2004 $13,281 $11,293
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292
or visit our web site www.pioneerfunds.com.
+ Index comparison begins June 30, 1994. The MSCI Emerging Markets Free Index is
an unmanaged, capitalization-weighted measure of securities trading in 26
emerging markets; it reflects only those securities available to foreign
investors. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any sales charges, fees or
expenses. You cannot invest directly in the Index.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
4
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/04 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 5/31/04 12/1/03
$13.81 $13.39
Distributions per Share Short-Term Long-Term
(12/1/03 - 5/31/04) Dividends Capital Gains Capital Gains
$ -- $ -- $ --
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Emerging
Markets Free Index.
Average Annual Total Returns
(As of May 31, 2004)
If If
Period Held Redeemed
Life-of-Class
(1/31/96) 2.68% 2.68%
5 Years 5.83 5.83
1 Year 33.11 33.11
All returns reflect reinvestment of distributions at net asset value.
* The performance of Class C shares does not reflect the 1% front-end sales
charge in effect prior to February 1, 2004. If you paid a 1% sales charge,
your returns would be lower than those shown above. Class C shares held for
less than 1 year are subject to a 1% contingent deferred sales charge.
[THE FOLLOWING DATA WAS PRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment+
1/31/1996 $10,000 $10,000
$10,386 $9,855
$11,384 $8,546
11/30/1998 $7,633 $6,631
$11,824 $9,649
11/30/2000 $9,219 $7,370
$8,372 $6,827
11/30/2002 $8,489 $7,165
$12,067 $10,093
5/31/2004 $12,464 $10,758
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292
or visit our web site www.pioneerfunds.com.
+ The MSCI Emerging Markets Free Index is an unmanaged, capitalization-weighted
measure of securities trading in 26 emerging markets; it reflects only those
securities available to foreign investors. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Fund returns, do not
reflect any sales charges, fees or expenses. You cannot invest directly in the
Index.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
5
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/04 CLASS R SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 5/31/04 12/1/03
$14.87 $14.51
Distributions per Share Short-Term Long-Term
(12/1/03 - 5/31/04) Dividends Capital Gains Capital Gains
$0.1528 $ -- $ --
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Emerging Markets Free Index.
Average Annual Total Returns
(As of May 31, 2004)
If If
Period Held Redeemed*
Life-of-Class**
(6/23/94) 3.37% 3.37%
5 Years 6.27 6.27
1 Year 34.60 34.60
All returns reflect reinvestment of distributions at net asset value.
* Reflects deduction of a 1% CDSC. Shares sold within 18 months of purchase may
be subject to the CDSC.
[THE FOLLOWING DATA WAS PRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment+
6/30/1994 $10,000 $10,000
$9,663 $11,242
$9,215 $9,385
11/30/1996 $11,067 $10,347
$12,153 $8,972
11/30/1998 $8,199 $6,962
$12,808 $10,130
11/30/2000 $9,992 $7,738
$9,106 $7,168
11/30/2002 $9,243 $7,522
$13,254 $10,596
5/31/2004 $13,747 $11,293
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292
or visit our web site www.pioneerfunds.com.
The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of
Class A shares, reduced to reflect the higher distribution and service fees of
Class R shares. For the period after April 1, 2003, the actual performance of
Class R shares is reflected, which performance may be influenced by the
smaller asset size of Class R shares compared to Class A shares.
+ Index comparison begins June 30, 1994. The MSCI Emerging Markets Free Index is
an unmanaged, capitalization-weighted measure of securities trading in 26
emerging markets; it reflects only those securities available to foreign
investors. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any sales charges, fees or
expenses. You cannot invest directly in the Index.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
6
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/04 CLASS Y SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 5/31/04 12/1/03
$15.63 $15.19
Distributions per Share Short-Term Long-Term
(12/1/03 - 5/31/04) Dividends Capital Gains Capital Gains
$0.1567 $ -- $ --
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Emerging Markets Fund, compared to that of the
Morgan Stanley Capital International (MSCI) Emerging Markets Free Index.
Average Annual Total Returns
(As of May 31, 2004)
If If
Period Held* Redeemed*
Life-of-Class
(4/9/98) 1.61% 1.61%
5 Year 7.53 7.53
1 Year 35.38 35.38
* Assumes reinvestment of distributions at net asset value.
[THE FOLLOWING DATA WAS PRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Value of $10,000 Investment+
4/30/1998 $10,000 $10,000
$6,155 $7,213
$9,730 $10,495
11/30/2000 $7,672 $8,017
$7,094 $7,426
11/30/2002 $7,310 $7,794
$10,572 $10,979
5/31/2004 $11,007 $11,702
Performance data shown represents past performance. Past performance does not
guarantee future results. Assumes reinvestment of all distributions at net
asset value. Investment return and principal value fluctuate, and shares, when
redeemed, may be worth more or less than their original cost. Current
performance may be lower or higher than the performance shown. For performance
data that is current to the most recent month-end, please call 1-800-225-6292
or visit our web site www.pioneerfunds.com.
+ Index comparison begins April 30, 1998. The MSCI Emerging Markets Free Index
is an unmanaged, capitalization-weighted measure of securities trading in 26
emerging markets; it reflects only those securities available to foreign
investors. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any sales charges, fees
or expenses. You cannot invest directly in the Index.
The performance table and graph do not reflect the deduction of taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
7
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 5/31/04
- --------------------------------------------------------------------------------
For the six months ended May 31, 2004, Pioneer Emerging Markets Fund's Class A,
B and C shares delivered total returns at net asset value of 3.7%, 3.3% and
3.3%, respectively. Over the same time period, the MSCI Emerging Markets Free
Index had a total return of 6.6%.
In the following discussion, Mark Madden, portfolio manager of the Pioneer
Emerging Markets Fund, addresses the factors affecting the Fund's performance
and the outlook for the emerging markets.
Q: What factors influenced the performance of emerging markets in the six
months ended May 31, 2004?
A: A combination of accelerating economic growth, attractive stock valuations,
positive economic reforms, strong commodity prices and low interest rates
led to strong returns in emerging markets from March 2003 to early April
2004. However, beginning in mid-April 2004, emerging markets experienced
declines due to a number of factors. First, interest rates started to
climb higher as investors anticipated that the U.S. Federal Reserve might
change monetary policy. Investors sought safe-haven investments, while
withdrawing funds from emerging markets and other higher risk asset
classes. Second, concerns about potential overheating in China's economy
led to declines in Chinese stocks and stocks throughout Asia. Third,
rising oil and energy prices were perceived to pose a threat to global
growth, while increasing the risk of inflation. Last, concerns relating to
political developments in several countries further dampened emerging
market returns.
Over the last six months, the total return for the Pioneer Emerging
Markets Fund was below that of the benchmark MSCI Emerging Markets Free
Index. One area that contributed to the Fund's underperformance was the
weak performance of Brazilian stocks. Higher global interest rates have
been particularly damaging to Brazil's stock market due to the country's
reliance on external debt. However, we remain positive on Brazil's
outlook, and we believe investors are failing adequately to recognize the
improvements that have been made in the Brazilian economy in recent years.
Brazil now has both a large fiscal surplus and a current account surplus,
domestic real interest rates are the lowest in more than a decade, and
there is substantial pent-up domestic demand that should help propel the
economy.
8
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q: What is your investment strategy?
A: Our investment process is driven by rigorous research that focuses on
companies with strong long-term growth prospects and proven management
ability that sell at a discount to our estimation of fair value. We look
for companies that we see as well positioned in countries and industries
with favorable long-term trends and growth potential. We manage risk
through diversification among various countries, sectors and companies,
while emphasizing stocks that are attractively valued.
Q: Where are you finding attractive opportunities in emerging markets?
A: As for countries, we currently favor Brazil, Thailand and Turkey. In all
three markets we see very attractive stock valuations and improved
economic prospects. Recent volatility has provided an opportunity, in our
opinion, to add to positions at cheap prices. The Fund had long maintained
an overweight in India, but we have recently reduced that position to only
slightly above the index weight following the recent elections. In a
surprising outcome, Sonia Gandhi and the Congress party coalition soundly
defeated the incumbent National Democratic Alliance (NDA) party. The NDA
party and the former prime minister, A.B. Vajpayee, had been credited with
the progress seen in the Indian economy over the last few years. Investors
became concerned that the new administration may not have the same
emphasis on economic reforms that may be necessary for future growth. We
are more cautious on our outlook for India until we see the policies that
the new administration plans to implement.
As for sectors, we like the energy and consumer staples sectors. Energy
stocks are enjoying increasing profitability due to tight supply and
strong demand, and we expect this to continue in the medium term. Consumer
spending is picking up in many countries and we expect the attractively
valued stocks in the consumer staples sector to benefit from this trend.
We are less optimistic on the technology sector, where we do not believe
stronger demand can be sustained. Technology stock valuations are
expensive relative to other sectors, profit margins continue to be under
pressure, and a weaker dollar may further erode profit margins of emerging
9
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 5/31/04 (continued)
- --------------------------------------------------------------------------------
markets firms that export most of their production to the United States.
Q: What is your outlook?
A: In our last annual report, we wrote that we were optimistic on the
prospects for emerging markets over the next several years, although we
did expect some correction in the coming year. Emerging markets have been
correcting over the last two months, and we expect this volatility may
continue in the near term. However, the basis for our longer term optimism
remains in place. Stock valuations in emerging markets are less expensive
than in developed markets, while economic growth rates of developing
countries are higher than those of developed markets. In addition, many
companies in emerging markets are gaining global market share by
delivering quality products and services at very competitive prices. The
main risk to these investments relates to the potential for global growth
to falter. On the other hand, if growth is too strong, inflation may
accelerate, leading to higher interest rates and lower stock valuations.
We believe that the markets are already beginning to price in these risks,
and an opportunity is developing to acquire stocks with strong long-term
prospects at attractive prices.
Investing in emerging markets carries its own set of risks, including but
not limited to, currency fluctuations, and social and economic
instability. However, we feel confident that the long-term prospects
invite serious consideration.
Any information in this shareholder report regarding market or economic
trends or the factors influencing the Fund's historical or future
performance are statements of the opinion of Fund management as of the
date of this report. These statements should not be relied upon for any
other purposes. Past performance is no guarantee of future results, and
there is no guarantee that market forecasts discussed will be realized.
10
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/04 (unaudited)
- --------------------------------------------------------------------------------
Shares Value
PREFERRED STOCKS - 3.2%
Materials - 0.3%
Diversified Metals & Mining - 0.3%
2,016,000 Caemi Mineracao e Metalurgia SA* $ 823,254
------------
Total Materials $ 823,254
------------
Capital Goods - 0.1%
Industrial Conglomerates - 0.1%
43,800 LG Corp.* $ 346,037
------------
Total Capital Goods $ 346,037
------------
Banks - 0.7%
Diversified Banks - 0.7%
23,373,000 Banco Itau Holding Financeira $ 1,965,286
------------
Total Banks $ 1,965,286
------------
Telecommunication Services - 1.6%
Integrated Telecommunication Services - 0.8%
179,094 Tele Norte Leste Participacoes (A.D.R.)* $ 2,027,344
------------
Wireless Telecommunication Services - 0.8%
52,100 Telemig Celular Participacoes (A.D.R.) (e)* $ 1,498,396
94,700 Telesp Celular Participacoes (A.D.R.) (e)* 667,635
------------
$ 2,166,031
------------
Total Telecommunication Services $ 4,193,375
------------
Utilities - 0.5%
Electric Utilities - 0.5%
244,400 Centrais Electricas Brasileiras SA (A.D.R.) (e)* $ 1,134,260
------------
Total Utilities $ 1,134,260
------------
TOTAL PREFERRED STOCKS
(Cost $7,383,410) $ 8,462,212
------------
COMMON STOCKS - 92.2%
Energy - 12.6%
Integrated Oil & Gas - 8.1%
4,076,000 CNOOC, Ltd. $ 1,738,830
44,300 Lukoil Holding (A.D.R.)* 4,928,375
298,800 Petroleo Brasileiro SA Petrobras (A.D.R.)* 6,884,352
52,100 Sibneft (A.D.R.) (e)* 1,351,057
The accompanying notes are an integral part of these financial statements.
11
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Integrated Oil & Gas - (continued)
109,700 Surgutneftegaz (A.D.R.) (e)* $ 3,565,250
127,269,300 Tupras-Turkiye Petrol Rafinerileri AS 762,853
77,600 Yukos 2,429,850
------------
$ 21,660,567
------------
Oil & Gas Equipment & Services - 0.3%
17,900 Samchully Co., Ltd.* $ 842,353
------------
Oil & Gas Exploration & Production - 2.2%
3,085,400 China Petroleum & Chemical $ 1,157,893
47,500 Mol Magyar Olaj 1,824,257
1,436,000 Panva Gas Holdings, Ltd.* 626,419
554,000 PTT Public Co., Ltd. 2,103,452
------------
$ 5,712,021
------------
Oil & Gas Refining, Marketing & Transportation - 2.0%
952,000 China Aviation Oil Singapore $ 902,503
7,216,600 Petron Corp. 393,680
64,500 Polski Koncern Nafto (G.D.R.) 948,150
66,500 S-Oil Corp. 2,618,313
17,600 TelecomAsia Corp. Public Co., Ltd. 582,560
------------
$ 5,445,206
------------
Total Energy $ 33,660,147
------------
Materials - 14.6%
Aluminum - 0.3%
783,000 Aluminum Corp. of China, Ltd. $ 444,535
104,000 Catcher Technology Co., Ltd.* 402,581
------------
$ 847,116
------------
Commodity Chemicals - 1.2%
31,789 Daelim Industrial Co.* $ 1,056,449
23,300 Micro Inks, Ltd. 243,804
39,200 Reliance Industries, Ltd. (144A)* 836,920
117,456,000 Ultrapar Participacoes SA 1,133,016
------------
$ 3,270,189
------------
The accompanying notes are an integral part of these financial statements.
12
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Construction Materials - 1.1%
235,072,250 Akcansa Cimento AS $ 497,073
38,830 Asia Cement Co., Ltd.* 856,961
124,000 Siam Cement Co., Ltd.* 703,156
112,000 Siam City Cement Co., Ltd. 629,586
26,970 Suez Cement Co. (G.D.R.)* 244,079
------------
$ 2,930,855
------------
Diversified Chemical - 0.7%
3,300 Israel Chemicals, Ltd. $ 5,689
20,597 LG Chemicals, Ltd.* 725,184
2,097,274 Sinopac Holdings Co. 1,126,518
------------
$ 1,857,391
------------
Diversified Metals & Mining - 3.7%
66,500 Anglo American Plc* $ 1,401,820
37,900 Antofagasta Plc 625,220
85,700 Companhia Vale do Rio Doce (A.D.R.) 3,719,380
28,800 Industrias Penoles SA 103,506
135,500 KGHM Polska Miedz SA* 957,067
33,100 Norilsk Nickel* 1,828,775
1,173,200 Yanzhou Coal Mining (Class H) 1,106,345
------------
$ 9,742,113
------------
Gold - 0.4%
207,700 IAMGOLD Corp. (e) $ 1,171,428
------------
Paper Products - 0.4%
37,000 Aracruz Cellulose SA (A.D.R.)* $ 1,202,500
------------
Precious Metals & Minerals - 3.6%
166,478 Anglo American Plc $ 3,470,264
24,620 Anglogold Ashanti, Ltd. 876,277
69,000 Anglogold Ashanti, Ltd. (A.D.R.) (e) 2,416,380
120,100 Compania de Minas Buenaventura SA 2,813,943
------------
$ 9,576,864
------------
Specialty Chemicals - 1.0%
760,393 Formosa Plastic Corp. $ 1,090,676
1,105,052 Nan Ya Plastics Corp. 1,488,877
------------
$ 2,579,553
------------
The accompanying notes are an integral part of these financial statements.
13
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Steel - 2.2%
998,069 China Steel Corp., Ltd.* $ 907,472
107,400 Pohang Iron & Steel Co., Ltd. (A.D.R.) (e) 3,415,320
130,100 Remgro, Ltd. 1,467,977
------------
$ 5,790,769
------------
Total Materials $ 38,968,778
------------
Capital Goods - 3.9%
Building Products - 0.7%
94,800 Daewoo Heavy Industries & Machinery, Ltd.* $ 1,021,675
20,130 Hanil Cement Co., Ltd.* 845,304
------------
$ 1,866,979
------------
Construction, Farm Machinery & Heavy Trucks - 0.3%
144,036 Punjab Tractors, Ltd.* $ 691,544
------------
Construction & Engineering - 1.0%
1,870,000 CTCI, Corp.* $ 987,607
18,273,243 Enka Insaat VE Sanayi AS 349,887
54,290 Kyeryong Construction Industrial Co., Ltd.* 550,126
43,700 LG Construction, Ltd.* 682,988
------------
$ 2,570,608
------------
Electrical Components & Equipment - 0.6%
117,000 Bharat Heavy Electricals (Demat Shares) $ 1,192,810
94,601 Crompton Greaves, Ltd.* 307,696
------------
$ 1,500,506
------------
Industrial Conglomerates - 0.6%
432,000 China Resources Enterprise, Ltd. $ 540,405
86,000 LG Corp.* 1,177,930
------------
$ 1,718,335
------------
Industrial Machinery - 0.5%
93,900 Daewoo Heavy Industries & Machinery, Ltd.* $ 632,182
1,437,000 Yungtay Engineering Co., Ltd.* 845,167
------------
$ 1,477,349
------------
Metal Fabricators - 0.2%
36,570 Korea Zinc Co.* $ 595,106
------------
Total Capital Goods $ 10,420,427
------------
The accompanying notes are an integral part of these financial statements.
14
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Commercial Services & Supplies - 0.5%
Diversified Commercial Services - 0.5%
165,472 Bidvest Group, Ltd.* $ 1,325,791
------------
Total Commercial Services & Supplies $ 1,325,791
------------
Transportation - 1.4%
Air Freight & Couriers - 0.2%
1,243,800 Singapore Post, Ltd. $ 596,889
------------
Airlines - 0.4%
73,000 Korean Air* $ 924,646
------------
Marine - 0.5%
103,250 Hyundai Merchant Marine Co.* $ 698,678
150,500 Samsung Heavy Industries Co., Ltd.* 648,785
------------
$ 1,347,463
------------
Railroads - 0.3%
278,000 Malaysia International Shipping Bhd $ 870,579
------------
Total Transportation $ 3,739,577
------------
Automobiles & Components - 3.6%
Auto Parts & Equipment - 1.0%
227,000 Dongyang Mechatronics Corp.* $ 636,458
26,900 Hyundai Mobis* 1,098,407
246,161 Jardine Cycle & Carriage, Ltd. 942,146
200,000 Mirgor Sacifia (A.D.R.) (144A)* -
------------
$ 2,677,011
------------
Automobile Manufacturers - 2.6%
127,000 Edaran Otomobile Nasional Bhd $ 295,776
33,400 Hyundai Motor Co., Ltd.* 1,282,078
49,070 Hyundai Heavy Industries* 1,196,726
54,900 Kia Motors* 470,033
348,333,779 Koc Holdings AS 1,438,341
1,130,961 PT Astra International 700,984
508,000 Sime Darby Bhd 701,842
109,740 Tata Motors 934,948
------------
$ 7,020,728
------------
Total Automobiles & Components $ 9,697,739
------------
The accompanying notes are an integral part of these financial statements.
15
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Consumer Durables & Apparel - 1.1%
Footwear - 0.4%
4,956,600 Symphony Holdings, Ltd. $ 909,392
------------
Homebuilding - 0.4%
4,076,900 Ayala Land, Inc. $ 401,054
537,500 Corporacion GEO, SA de CV* 692,606
------------
$ 1,093,660
------------
Leisure Products - 0.3%
770,500 Berjaya Sports Toto Bhd $ 835,384
------------
Total Consumer Durables & Apparel $ 2,838,436
------------
Hotels, Restaurants & Leisure - 0.3%
Hotels, Resorts & Cruise Lines - 0.2%
72,200 Indian Hotels Co., Ltd.* $ 549,512
------------
Restaurants - 0.1%
455,900 Jollibee Foods Corp.* $ 167,161
------------
Total Hotels, Restaurants & Leisure $ 716,673
------------
Media - 2.6%
Broadcasting & Cable TV - 1.0%
78,900 ABS-CBN Broadcasting Corp.* $ 29,635
834,000 BEC World Public Co., Ltd. 339,275
2,508,100 Media Prima, Bhd* 1,174,847
2,435,700 United Broadcasting Corp., Plc* 1,068,922
------------
$ 2,612,679
------------
Movies & Entertainment - 0.9%
2,483,200 Grammy Entertainment Plc $ 967,321
477,800 Zee Telefilms, Ltd.* 1,356,723
------------
$ 2,324,044
------------
Publishing - 0.7%
128,655 Naspers, Ltd. $ 899,879
79,200 Singapore Press Holdings 956,015
------------
$ 1,855,894
------------
Total Media $ 6,792,617
------------
The accompanying notes are an integral part of these financial statements.
16
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Retailing - 0.4%
General Merchandise Stores - 0.4%
3,189,200 Global Green Technology Group $ 278,242
161,100 Jaya Jusco Stores, Bhd* 470,582
10,600 LG Home Shopping* 327,694
------------
$ 1,076,518
------------
Total Retailing $ 1,076,518
------------
Food & Drug Retailing - 2.7%
Food Distributors - 0.7%
85,500 Compania Cervecerias Unidas SA $ 1,714,275
------------
Food Retail - 2.0%
97,300 Brasil Distributor Pao Acu (A.D.R.)* $ 1,459,500
25,600 CJ Corp.* 1,354,195
45,500 Distribucion y Servicio D&A SA 665,210
1,985,700 Metro Cash and Carry, Ltd.* 747,869
94,614,750 Migros Turk T.A.S. 437,944
1,627,300 PT Indofood Sukses Makmur Tbk 122,789
41,100 Tiger Brands, Ltd. 568,694
------------
$ 5,356,201
------------
Total Food & Drug Retailing $ 7,070,476
------------
Food, Beverage & Tobacco - 4.5%
Agricultural Products - 0.5%
294,000 IOI Corp., Bhd $ 626,684
191,000 Makhteshim-Agan Industries, Ltd. 799,982
------------
$ 1,426,666
------------
Distillers & Vintners - 1.2%
28,928,150 Andalou Efes Biracilik VE $ 358,351
106,000 Companhia de Bebidas PR (A.D.R.) (e) 2,008,700
342,900 Grupo Modelo SA de CV* 850,637
------------
$ 3,217,688
------------
Packaged Foods & Meats - 0.2%
504,931 Rainbow Chicken, Ltd.* $ 399,747
------------
The accompanying notes are an integral part of these financial statements.
17
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Soft Drinks - 1.2%
115,200 Embotelladora Andina SA (A.D.R.) $ 1,296,000
30,100 Fomento Economico Mexicano, SA de CV 1,292,494
1,039,700 Sermsuk Public Co., Ltd. 628,024
------------
$ 3,216,518
------------
Tobacco - 1.4%
114,900 British American Tabacco (Malaysia) Bhd $ 1,451,368
1,300 Philip Morris CR AS* 779,358
489,000 PT Gudang Garam Public Co., Ltd. 761,674
1,472,900 PT Hanjaya Mandala Sampoerna Tbk 777,968
------------
$ 3,770,368
------------
Total Food, Beverage & Tobacco $ 12,030,987
------------
Household & Personal Products - 0.9%
Household Products - 0.6%
182,498,080 Arcelik AS* $ 850,807
28,800 LG Household & Health Care, Ltd.* 740,713
------------
$ 1,591,520
------------
Personal Products - 0.3%
19,190 Natura Cosmeticos SA* $ 267,179
17,290 Oriflame Cosmetics SA* 544,017
------------
$ 811,196
------------
Total Household & Personal Products $ 2,402,716
------------
Health Care Equipment & Services - 0.9%
Health Care Distributors - 0.9%
36,600 Teva Pharmaceutical Industries, Ltd. $ 2,421,822
------------
Total Health Care Equipment & Services $ 2,421,822
------------
Pharmaceuticals & Biotechnology - 1.7%
Biotechnology - 0.2%
852,000 Global Bio-chem Technology Group Co., Ltd. $ 628,548
------------
Pharmaceuticals - 1.5%
149,600 Aurobindo Pharma, Ltd. $ 1,267,456
26,700 Biocon, Ltd.* 300,085
10,900 Gideon Richter Sons (G.D.R.) 1,057,300
889,400 PT Tempo Scan Pacific 666,307
24,040 Ranbaxy Laboratories, Ltd. 524,172
The accompanying notes are an integral part of these financial statements.
18
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Pharmaceuticals - (continued)
2 Sun Pharmaceutical Industries, Ltd.* $ 17
2 Sun Pharmaceutical Industries, Ltd.
(Demat Shares) 17
-----------
$ 3,815,354
-----------
Total Pharmaceuticals & Biotechnology $ 4,443,902
-----------
Banks - 9.8%
Diversified Banks - 9.8%
154,086,800 Akbank TAS $ 646,518
49,734 Banco Bradesco SA (e)* 2,136,075
195,900 Banco do Brasil SA* 1,313,349
26,952 Banco Santiago 714,767
99,120 Bangkok Bank, Ltd. (Foreign Shares)* 234,604
409,996 Canara Bank, Ltd. 1,104,131
1,765,882 Chinatrust Financial Holding Co., Ltd. 1,965,918
866,300 Commerce Asset Holdings Bhd 1,112,512
204,900 Commercial International Bank 765,375
57,000 Hana Bank* 1,267,754
995,900 Kasikornbank* 1,209,272
14,131 Kookmin Bank* 491,460
14,100 Kookmin Bank (A.D.R.) (e)* 485,886
458,100 Malayan Banking Bhd 1,241,692
128,800 MISR International 428,260
2,649,200 National Finance Public Co., Ltd. 966,671
37,600 OTP Bank Rt* 786,496
1,580,800 PT Bank Central Asia Tbk 630,480
16,852,085 PT Lippo Bank* 999,100
306,171 Public Bank Bhd (Foreign Shares) 496,320
701,800 Siam Commercial Bank Plc (Foreign Shares) 791,601
191,600 Standard Bank Group, Ltd. 1,237,060
129,300 State Bank of India 1,381,013
304,424,500 Turkiye Garanti Bankasi AS* 846,468
314,082,023 Turkiye Is Bankasi (Isbank) 1,056,353
91,500 Uniao de Bancos Brasileiros SA (G.D.R.) (144A) 1,765,950
-----------
$26,075,085
-----------
Total Banks $26,075,085
-----------
The accompanying notes are an integral part of these financial statements.
19
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Diversified Financials - 4.4%
Investment Banking & Brokerage - 0.3%
1,644,300 O.S.K. Holdings Bhd $ 713,972
------------
Diversified Financial Services - 4.1%
31,374,000 Alarko Holding AS $ 621,629
3,712,300 Bank Mandiri 510,206
3,816,913 China Development Financial 2,050,195
330,000 Citic Pacific, Ltd. 804,449
640,000 FirstRand, Ltd. 975,973
1,037,000 Fubon Group 1,033,110
302,767,095 Haci Omer Sabanci Holding AS* 862,024
889,100 Kiatnakin Finance Plc 811,063
889,700 MCL Land, Ltd. 717,711
268,039 RMB Holdings, Ltd. 643,613
625,600 Sanlam, Ltd. 851,111
4,863,800 SM Prime Holdings 513,261
731,300 TISCO Finance Public Co., Ltd. (Foreign Shares) 500,335
------------
$ 10,894,680
------------
Total Diversified Financials $ 11,608,652
------------
Insurance - 1.3%
Life & Health Insurance - 0.3%
31,700 China Life Insurance Co. (A.D.R.) (e)* $ 753,509
------------
Multi-Line Insurance - 0.6%
25,700 Samsung Fire & Marine Insurance* $ 1,648,596
------------
Property & Casualty Insurance - 0.4%
62,800 Cathay Financial Holding Co., Ltd. (G.D.R.) (144A)* $ 1,115,328
------------
Total Insurance $ 3,517,433
------------
Real Estate - 0.4%
Real Estate Management & Development - 0.4%
831,000 Marco Polo Developments, Ltd. $ 1,022,664
232,000 Shanghai Forte Land Co.* 51,495
------------
$ 1,074,159
------------
Total Real Estate $ 1,074,159
------------
The accompanying notes are an integral part of these financial statements.
20
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Software & Services - 0.4%
Application Software - 0.4%
10,267 Infosys Technologies, Ltd. $ 1,143,709
------------
Total Software & Services $ 1,143,709
------------
Technology Hardware & Equipment - 6.7%
Semiconductors - 1.8%
348,980 Hon Hai Precision Industry $ 1,429,430
1,914,360 Taiwan Semiconductor Manufacturing Co.* 3,331,819
------------
$ 4,761,249
------------
Communications Equipment - 0.5%
97,100 Empresa Nacional De Telecom $ 554,024
25,400 Samsung Electro Mechanics Co., Ltd.* 796,136
------------
$ 1,350,160
------------
Computer Hardware - 0.4%
844,140 Compal Electronics $ 1,038,552
------------
Computer Storage & Peripherals - 0.6%
872,000 Asia Vital Components* $ 1,245,527
128,000 Quanta Computer, Inc. 291,913
------------
$ 1,537,440
------------
Electronic Equipment & Instruments - 3.2%
234,000 Anpec Electronics Corp.* $ 347,577
398,250 Asustek Computer, Inc.* 973,965
262,850 Elec & Eltek International Co., Ltd. 728,095
32,610 LG Electronics, Inc.* 1,893,032
52,300 Mtekvision Co., Ltd.* 1,702,164
107,000 Novatek Microelectronics, Ltd.* 430,248
84,000 Richtek Technology Corp.* 357,929
6,250 Samsung Display Devices 689,674
1,531,200 Varitronix International, Ltd. 1,512,704
------------
$ 8,635,388
------------
Office Electronics - 0.2%
45,600 Baiksan OPC Co.* $ 460,112
------------
Total Technology Hardware & Equipment $ 17,782,901
------------
The accompanying notes are an integral part of these financial statements.
21
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Semiconductors - 5.0%
25,870 Samsung Electronics Co. $ 11,552,082
1,952,658 United Microelectronics Corp., Ltd.* 1,699,237
------------
$ 13,251,319
------------
Total Semiconductors $ 13,251,319
------------
Telecommunication Services - 10.0%
Integrated Telecommunication Services - 4.8%
52,100 Brasil Telecom Participacoes SA $ 1,501,001
38,100 Compania de Telephonos de Chile SA (A.D.R.) 453,771
148,100 KT Corp. (e)* 2,584,345
243,600 Mahanagar Telephone (Demat Shares) 599,408
240,260 Mahanagar Telephone Nigam, Ltd.* 1,400,716
94,000 SPT Telecom AS 1,181,070
109,700 Telefonos de Mexico SA 3,690,308
27,976 Telekomunik Indonesia SP (A.D.R.) 451,812
233,700 Telekomunikacja Polska SA 905,408
------------
$ 12,767,839
------------
Wireless Telecommunication Services - 5.2%
218,600 Advanced Service Co., Ltd. (Foreign Shares) $ 474,280
144,000 Alumax, Inc. 5,047,200
155,400 Bharti Televentures* 504,934
51,800 Korea Telecom Freetel Co.* 854,066
107,600 Mobinil-Egyptian Mobile Services 1,292,695
198,200 SK Telecom Co., Ltd. (e)* 4,136,434
1,125,000 Taiwan Cellular Corp.* 1,066,767
176,200 Venfin, Ltd. 555,272
------------
$ 13,931,648
------------
Total Telecommunication Services $ 26,699,487
------------
Utilities - 2.5%
Electric Utilities - 2.1%
37,200 Cemig SA (A.D.R.) $ 523,032
152,200 Companhia Paranaense de Energia (A.D.R.)* 468,776
1,201,300 Empresa Nacional de Electricid SA 501,254
16,613,423 Enersis SA* 2,042,871
The accompanying notes are an integral part of these financial statements.
22
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Electric Utilities - (continued)
1,707,600 Manila Electric Co.* $ 977,342
35,240 Unified Energy System (G.D.R.)* 981,442
------------
$ 5,494,717
------------
Gas Utilities - 0.2%
21,400 Gazprom (A.D.R.) (e)* $ 638,790
------------
Water Utilities - 0.2%
67,200 Cia Saneamento Basic de Estado
de Sao Paulo* (e) $ 653,856
------------
Total Utilities $ 6,787,363
------------
TOTAL COMMON STOCKS
(Cost $195,877,203) $245,546,714
------------
RIGHTS/WARRANTS - 0.0%
Commercial Services & Supplies - 0.0%
Diversified Commercial Services - 0.0%
11,697 Bidbee Group, Ltd., 12/8/06* $ 10,789
------------
Total Commercial Services & Supplies $ 10,789
------------
Pharmaceuticals & Biotechnology - 0.0%
Biotechnology - 0.0%
106,500 Global Bio-Chem, 5/31/07* $ 16,739
------------
Total Pharmaceuticals & Biotechnology $ 16,739
------------
Telecommunication Services - 0.0%
Integrated Telecommunication Services - 0.0%
526,420 True Corp., Plc* $ --
------------
Total Telecommunication Services $ --
------------
TOTAL RIGHTS/WARRANTS
(Cost $129,357) $ 27,528
------------
Principal
Amount Value
TEMPORARY CASH INVESTMENTS - 9.0%
Repurchase Agreement - 1.4%
$ 3,600,000 UBS Warburg, Inc., 0.94%, dated 5/28/04, repur-
chase price of $3,600,000 plus accrued interest
on 6/1/04 collateralized by $3,891,000 U.S. Trea-
sury Bill, 5.875%, 11/15/04 $ 3,600,000
------------
The accompanying notes are an integral part of these financial statements.
23
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Value
Security Lending Collateral - 7.6%
Securities Lending Investment Fund, 1.02% $ 20,275,590
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $23,875,590) $ 23,875,590
------------
TOTAL INVESTMENT IN SECURITIES - 104.4%
(Cost $227,265,560) (a)(b)(c)(d) $277,912,044
------------
OTHER ASSETS AND LIABILITIES - (4.4)% $(11,717,636)
------------
TOTAL NET ASSETS - 100.0% $266,194,408
============
(A.D.R.) American Depositary Receipt
(G.D.R.) Global Depositary Receipt
* Non-income producing security.
144A Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At May
31, 2004, the value of these securities amounted to $3,718,198 or 1.4%
of net assets.
(a) Distributions of investments by country of issue (excluding temporary
cash investments), as a percentage of total investment in equity
securities, is as follows:
South Korea 21.0%
Brazil 13.1
Taiwan 9.9
South Africa 6.5
Russia 6.2
India 5.6
Mexico 4.6
Thailand 4.5
Malaysia 3.9
Turkey 3.4
Chile 3.1
People's Republic of China 2.4
Singapore 2.3
Indonesia 2.2
Hong Kong 1.7
Hungary 1.4
Israel 1.3
Peru 1.1
Poland 1.1
Egypt 1.1
Other (Individually less than 1%) 3.6
-----
100.0%
=====
The accompanying notes are an integral part of these financial statements.
24
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(b) At May 31, 2004, the net unrealized gain on investments based on cost
for federal income tax purposes of $232,190,465 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $54,844,952
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (9,123,373)
-----------
Net unrealized gain $45,721,579
===========
(c) At November 30, 2003, the Fund had a capital loss carryforward of
$97,818,312 of which the following amounts will expire between 2006
and 2010 if not utilized. (This amount includes a net capital loss
carryforward of $6,469,549, which may be limited from the merger with
Pioneer Indo-Asia Fund which occurred in September 2001.)
$ 9,651,392 in 2006
$ 6,469,549 in 2008
$70,500,858 in 2009
$11,196,513 in 2010
(d) The Fund has elected to defer approximately $9,359 of currency losses
recognized between November 1, 2003 and November 30, 2003 to its
fiscal year ending November 30, 2004.
(e) At May 31, 2004, the following securities were out on loan:
Market
Shares Description Value
- ----------- ---------------------------------------------- ---------------
100,000 Anglogold Ashanti, Ltd. (A.D.R.) $ 2,387,425
47,247 Banco Bradesco SA* 2,044,850
232,180 Centrais Electricas Brasileiras SA (A.D.R.)* 1,071,232
30,115 China Life Insurance Co. (A.D.R.)* 708,305
63,840 Cia Saneamento Basic de Estado de Sao Paulo* 633,293
4,200 Companhia de Bebidas PR (A.D.R.) 77,406
1,995 Gazprom (A.D.R.)* 63,142
197,315 IAMGOLD Corp. 1,071,420
13,395 Kookmin Bank (A.D.R.)* 471,504
48,500 KT Corp.* 849,720
21,100 Pohang Iron & Steel Co., Ltd. (A.D.R.) 686,172
14,500 Sibneft (A.D.R.)* 394,400
188,290 SK Telecom Co., Ltd.* 4,010,577
104,215 Surgutneftegaz (A.D.R.)* 3,543,310
32,400 Telemig Celular Participacoes (A.D.R.)* 937,980
70,260 Telesp Celular Participacoes (A.D.R.)* 486,902
------------
Total $ 19,437,638
============
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended May 31, 2004 aggregated $86,367,033 and $65,759,445,
respectively.
The accompanying notes are an integral part of these financial statements.
25
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 5/31/04 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$19,437,638) (cost $227,265,560) $277,912,044
Cash 15,054
Foreign currencies, at value (cost $10,990,611) 10,966,784
Receivables -
Fund shares sold 429,929
Dividends, interest and foreign taxes withheld 1,167,933
Other 1,145
------------
Total assets $290,492,889
------------
LIABILITIES:
Payables -
Investment securities purchased $ 2,571,519
Fund shares repurchased 295,272
Upon return of securities loaned 20,275,590
Due to affiliates 364,518
Accrued expenses 500,112
Reserve for repatriation taxes 836,755
------------
Total liabilities $ 24,843,766
------------
NET ASSETS:
Paid-in capital $298,210,347
Accumulated net investment income 664,633
Accumulated net realized loss on investments and foreign
currency transactions (83,005,257)
Net unrealized gain on investments 49,809,729
Net unrealized loss on other assets and liabilities
denominated in foreign currencies (30,329)
------------
Total net assets $265,649,123
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $134,674,774/9,011,829 shares) $ 14.94
============
Class B (based on $35,790,683/2,579,725 shares) $ 13.87
============
Class C (based on $32,864,384/2,380,342 shares) $ 13.81
============
Class R (based on $51,756/3,480 shares) $ 14.87
============
Class Y (based on $62,267,526/3,983,118 shares) $ 15.63
============
MAXIMUM OFFERING PRICE:
Class A ($14.94 [divided by] 94.25%) $ 15.85
============
Class C ($13.81 [divided by] 99.00%) $ 13.95
============
The accompanying notes are an integral part of these financial statements.
26
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 5/31/04
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $643,465) $ 4,247,491
Interest 73,153
Income from securities loaned, net 37,141
------------
Total investment income $ 4,357,785
------------
EXPENSES:
Management fees $ 1,659,151
Transfer agent fees
Class A 415,277
Class B 109,659
Class C 76,272
Class R 56
Class Y 469
Distribution fees
Class A 180,121
Class B 211,138
Class C 164,585
Class R 92
Administrative fees 29,095
Custodian fees 193,802
Registration fees 97,014
Professional fees 24,726
Printing (34,717)
Fees and expenses of nonaffiliated trustees 3,415
Miscellaneous 1,743
------------
Total expenses $ 3,131,898
Less management fees waived and expenses
reimbursed by Pioneer Investment
Management, Inc. (95,318)
Less fees paid indirectly (4,311)
------------
Net expenses $ 3,032,269
------------
Net investment income $ 1,325,516
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments (net of foreign capital gain taxes of
$2,128,749) $ 19,383,803
Forward foreign curriency contracts and other assets
and liabilites demoniated in foreign currencies (291,792) $ 19,092,011
------------ ------------
Change in net unrealized loss on:
Investments (net of reserve for repatriation taxes of
$836,755) $(13,908,963)
Forward foreign currency contracts and other assets
and liabilites demoniated in foreign currencies (29,034) $(13,937,997)
------------ ------------
Net gain on investments and foreign currency transactions $ 5,154,014
------------
Net increase in net assets resulting from operations $ 6,479,530
============
The accompanying notes are an integral part of these financial statements.
27
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 5/31/04 and the Year Ended 11/30/03
Six Months
Ended
5/31/04 Year Ended
(unaudited) 11/30/03
FROM OPERATIONS:
Net investment income $ 1,325,516 $ 1,123,476
Net realized gain on investments and foreign
currency transactions 19,092,011 8,423,702
Change in net unrealized gain (loss) on investments
and foreign currency transactions (13,937,997) 63,321,681
------------ -------------
Net increase in net assets resulting from
operations $ 6,479,530 $ 72,868,859
------------ -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.04 and $0.00 per share, respectively) $ (308,722) $ --
Class R ($0.15 and $0.01 per share, respectively) (147) (2)
Class Y ($0.16 and $0.01 per share, respectively) (613,683) (41,091)
------------ -------------
Total distributions to shareowners $ (922,552) $ (41,093)
------------ -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 64,232,521 $ 129,981,612
Reinvestment of distributions 321,607 3,540
Cost of shares repurchased (50,129,006) (152,740,438)
------------ -------------
Net increase (decrease) in net assets resulting
from Fund share transactions $ 14,425,122 $ (22,755,286)
------------ -------------
Net increase in net assets $ 19,982,100 $ 50,072,480
NET ASSETS:
Beginning of period 245,667,023 195,594,543
------------ -------------
End of period (accumulated net investment income
of $664,633 and $261,669, respectively) $265,649,123 $ 245,667,023
============ =============
The accompanying notes are an integral part of these financial statements.
28
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
'04 Shares '04 Amount
(unaudited) (unaudited) '03 Shares '03 Amount
CLASS A
Shares sold 2,519,620 $40,737,625 9,153,142 $ 98,720,590
Reinvestment of distributions 17,598 268,198 -- --
Less shares repurchased (1,952,884) (30,854,424) (10,122,194) (108,674,102)
---------- ----------- ----------- ------------
Net increase (decrease) 584,334 $10,151,399 (969,052) $ (9,953,512)
========== =========== =========== ============
CLASS B
Shares sold 637,223 $ 9,634,757 740,388 $ 8,447,934
Reinvestment of distributions -- -- -- --
Less shares repurchased (927,317) (13,689,019) (1,004,628) (10,603,284)
---------- ----------- ----------- ------------
Net decrease (290,094) $(4,054,262) (264,240) $ (2,155,350)
========== =========== =========== ============
CLASS C
Shares sold 826,030 $12,336,259 1,518,262 $ 16,590,332
Reinvestment of distributions -- -- -- --
Less shares repurchased (360,619) (5,252,289) (2,708,284) (26,566,419)
---------- ----------- ----------- ------------
Net increase (decrease) 465,411 $ 7,083,970 (1,190,022) $ (9,976,087)
========== =========== =========== ============
CLASS R (a)
Shares sold 3,345 $ 53,453 162 $ 1,978
Reinvestment of distributions 9 139 -- 1
Less shares repurchased (35) (556) (2) (21)
---------- ----------- ----------- ------------
Net increase 3,319 $ 53,036 160 $ 1,958
========== =========== =========== ============
CLASS Y
Shares sold 86,412 $ 1,470,427 616,873 $ 6,220,753
Reinvestment of distributions 3,355 53,270 240 3,539
Less shares repurchased (20,210) (332,718) (670,769) (6,896,612)
---------- ----------- ----------- ------------
Net increase (decrease) 69,557 $ 1,190,979 (53,656) $ (672,320)
========== =========== =========== ============
(a) Class R shares were first publicly offered April 1, 2003.
The accompanying notes are an integral part of these financial statements.
29
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
5/31/04 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS A (unaudited) 11/30/03 11/30/02 11/30/01 11/30/00 11/30/99
Net asset value, beginning of period $ 14.47 $ 10.11 $ 9.91 $ 10.82 $ 13.80 $ 8.79
-------- -------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.07 $ 0.07 $ (0.01) $ 0.00(a) $ (0.17) $ (0.09)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.43 4.29 0.21 (0.91) (2.81) 5.10
-------- -------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 0.50 $ 4.36 $ 0.20 $ (0.91) $ (2.98) $ 5.01
Distributions to shareowners:
Net investment income (0.03) -- -- -- -- --
-------- -------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 0.47 $ 4.36 $ 0.20 $ (0.91) $ (2.98) $ 5.01
-------- -------- ------- ------- ------- -------
Net asset value, end of period $ 14.94 $ 14.47 $ 10.11 $ 9.91 $ 10.82 $ 13.80
======== ======== ======= ======= ======= =======
Total return* 3.70% 43.13% 2.02% (8.41)% (21.59)% 57.00%
Ratio of net expenses to average net assets+ 2.14%**(b) 2.65% 2.58% 2.76% 2.19% 2.44%
Ratio of net investment income (loss) to average
net assets+ 0.92%**(b) 0.51% (0.09)% (0.04)% (1.13)% (0.73)%
Portfolio turnover rate 49%** 88% 101% 177% 139% 180%
Net assets, end of period (in thousands) $134,675 $121,974 $94,999 $82,739 $88,175 $91,092
Ratios with no waiver of management fees and
assumption of expenses by PIM and no reduction
for fees paid indirectly:
Net expenses 2.21%**(b) 2.65% 2.58% 2.76% 2.19% 2.44%
Net investment income (loss) 0.85%**(b) 0.51% (0.09)% (0.04)% (1.13)% (0.73)%
Ratios with waiver of management fees and assumption
of expenses by PIM and reduction for fees paid
indirectly:
Net expenses 2.14%**(b) 2.64% 2.57% 2.74% 2.16% 2.40%
Net investment income (loss) 0.92%**(b) 0.52% (0.08)% (0.02)% (1.10)% (0.69)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
(a) Amount rounds to less than one cent per share.
(b) In the absence of the negative printing fees in the statement of
operations, which relates to a change in estimate for printing fees in the
period ended May 31, 2004 the gross and net expense ratio and net investment
income ratio to average net assets would have been 2.15%, 0.91% and 2.22%,
0.84%, respectively.
The accompanying notes are an integral part of these financial statements.
30
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
5/31/04 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS B (unaudited) 11/30/03 11/30/02 11/30/01 11/30/00 11/30/99
Net asset value, beginning of period $ 13.46 $ 9.47 $ 9.34 $ 10.28 $ 13.23 $ 8.49
------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.02 $ (0.08) $ (0.58) $ (0.10) $ (0.34) $ (0.17)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.39 4.07 0.71 (0.84) (2.61) 4.91
------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 0.41 $ 3.99 $ 0.13 $ (0.94) $ (2.95) $ 4.74
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 0.41 $ 3.99 $ 0.13 $ (0.94) $ (2.95) $ 4.74
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 13.87 $ 13.46 $ 9.47 $ 9.34 $ 10.28 $ 13.23
======= ======= ======= ======= ======= =======
Total return* 3.27% 42.13% 1.39% (9.14)% (22.30)% 55.83%
Ratio of net expenses to average net assets+ 2.84%**(a) 3.37% 3.21% 3.59% 3.05% 3.20%
Ratio of net investment income (loss) to average net
assets+ 0.20%**(a) (0.26)% (0.66)% (0.87)% (1.97)% (1.53)%
Portfolio turnover rate 49%** 88% 101% 177% 139% 180%
Net assets, end of period (in thousands) $35,791 $38,615 $29,674 $35,651 $40,763 $51,093
Ratios with no waiver of management fees and
assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 2.90%**(a) 3.37% 3.21% 3.59% 3.05% 3.20%
Net investment income (loss) 0.14%**(a) (0.26)% (0.66)% (0.87)% (1.97)% (1.53)%
Ratios with waiver of management fees and assumption
of expenses by PIM and reduction for fees paid
indirectly:
Net expenses 2.83%**(a) 3.37% 3.21% 3.58% 3.03% 3.18%
Net investment income (loss) 0.21%**(a) (0.26)% (0.66)% (0.86)% (1.95)% (1.51)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
(a) In the absence of the negative printing fees in the statement of operations,
which relates to a change in estimate for printing fees in the period ended
May 31, 2004 the gross and net expense ratio and net investment income ratio
to average net assets would have been 2.85%, 0.19% and 2.91%, 0.13%,
respectively.
The accompanying notes are an integral part of these financial statements.
31
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
5/31/04 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS C (unaudited) 11/30/03 11/30/02 11/30/01 11/30/00 11/30/99
Net asset value, beginning of period $ 13.39 $ 9.42 $ 9.29 $ 10.23 $ 13.12 $ 8.47
------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.02 $ (0.14) $ (0.18) $ (0.01) $ (0.14) $ (0.29)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.40 4.11 0.31 (0.93) (2.75) 4.94
------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 0.42 $ 3.97 $ 0.13 $ (0.94) $ (2.89) $ 4.65
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 0.42 $ 3.97 $ 0.13 $ (0.94) $ (2.89) $ 4.65
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 13.81 $ 13.39 $ 9.42 $ 9.29 $ 10.23 $ 13.12
======= ======= ======= ======= ======= =======
Total return* 3.29% 42.14% 1.40% (9.19)% (22.03)% 54.90%
Ratio of net expenses to average net assets+ 2.78%**(a) 3.32% 3.16% 3.57% 2.85% 3.82%
Ratio of net investment income (loss) to average net
assets+ 0.29%**(a) (0.18)% (0.63)% (0.81)% (1.81)% (2.09)%
Portfolio turnover rate 49%** 88% 101% 177% 139% 180%
Net assets, end of period (in thousands) $32,864 $25,632 $29,239 $15,864 $12,861 $11,656
Ratios with no waiver of management fees by PIM and
no reduction for fees paid indirectly:
Net expenses 2.85%**(a) 3.32% 3.16% 3.57% 2.85% 3.82%
Net investment income (loss) 0.22%**(a) (0.18)% (0.63)% (0.81)% (1.81)% (2.09)%
Ratios with waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 2.77%**(a) 3.32% 3.15% 3.55% 2.82% 3.80%
Net investment income (loss) 0.30%**(a) (0.18)% (0.62)% (0.79)% (1.78)% (2.07)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
(a) In the absence of the negative printing fees in the statement of
operations, which relates to a change in estimate for printing fees in the
period ended May 31, 2004 the gross and net expense ratio and net investment
income ratio to average net assets would have been 2.79%, 0.28% and 2.86%,
0.21%, respectively.
The accompanying notes are an integral part of these financial statements.
32
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
5/31/04 Year Ended
(unaudited) 11/30/03
CLASS R (a)
Net asset value, beginning of period $14.51 $9.57
------ -----
Increase from investment operations:
Net investment income $ 0.14 $0.02
Net realized and unrealized gain on investments and foreign
currency transactions 0.37 4.93
------ -----
Net increase from investment operations $ 0.51 $4.95
Distributions to shareowners:
Net investment income (0.15) (0.01)
------ -----
Net increase in net asset value $ 0.36 $4.94
------ -----
Net asset value, end of period $14.87 $14.51
====== =====
Total return* 3.70% 51.74%
Ratio of net expenses to average net assets+ 2.10%**(b) 2.13%**
Ratio of net investment income to average net assets+ 0.94%**(b) 0.56%**
Portfolio turnover rate 49%** 88%
Net assets, end of period (in thousands) $ 52 $ 2
Ratios with no waiver of management fees by PIM and no reduction
for fees paid indirectly:
Net expenses 2.20%**(b) 2.13%**
Net investment income 0.84%**(b) 0.56%**
Ratios with waiver of management fees by PIM and reduction for
fees paid indirectly:
Net expenses 2.10%**(b) 2.13%**
Net investment income 0.94%**(b) 0.56%**
(a) Class R Shares were first publicly offered on April 1, 2003.
* 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 and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
(b) In the absence of the negative printing fees in the statement of
operations, which relates to a change in estimate for printing fees in the
period ended May 31, 2004 the gross and net expense ratio and net
investment income ratio to average net assets would have been 2.11%, 0.93%
and 2.21%, 0.83%, respectively.
The accompanying notes are an integral part of these financial statements.
33
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
5/31/04 Year Ended Year Ended Year Ended Year Ended Year Ended
CLASS Y (unaudited) 11/30/03 11/30/02 11/30/01 11/30/00 11/30/99
Net asset value, beginning of period $ 15.19 $ 10.51 $ 10.20 $ 11.03 $ 13.99 $ 8.85
------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.15 $ 0.19 $ 0.13 $ 0.10 $ (0.10) $ 0.01
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.45 4.50 0.18 (0.93) (2.86) 5.13
------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 0.60 $ 4.69 $ 0.31 $ (0.83) $ (2.96) $ 5.14
Distributions to shareowners:
Net investment income (0.16) (0.01) - - - -
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 0.44 $ 4.68 $ 0.31 $ (0.83) $ (2.96) $ 5.14
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 15.63 $ 15.19 $ 10.51 $ 10.20 $ 11.03 $ 13.99
======= ======= ======= ======= ======= =======
Total return* 4.11% 44.63% 3.04% (7.52)% (21.16)% 58.08%
Ratio of net expenses to average net assets+ 1.32%**(a) 1.60% 1.58% 1.80% 1.62% 1.68%
Ratio of net investment income (loss) to average net 0.93% 0.96% (0.62)% (0.71)%
assets+ 1.73%**(a) 1.52% 101% 177% 139% 180%
Portfolio turnover rate 49%** 88% $41,683 $43,861 $47,378 $27,225
Net assets, end of period (in thousands) $62,268 $59,444
Ratios with no waiver of management fees by PIM and
no reduction for fees paid indirectly: 1.58% 1.80% 1.62% 1.68%
Net expenses 1.39%**(a) 1.60% 0.93% 0.96% (0.62)% (0.64)%
Net investment income (loss) 1.66%**(a) 1.52%
Ratios with waiver of management fees by PIM and
reduction for fees paid indirectly: 1.58% 1.80% 1.60% 1.61%
Net expenses 1.32%**(a) 1.60% 0.93% 0.96% (0.60)% (0.64)%
Net investment income (loss) 1.73%**(a) 1.52%
* 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.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
(a) In the absence of the negative printing fees in the statement of
operations, which relates to a change in estimate for printing fees in the
period ended May 31, 2004 the gross and net expense ratio and net investment
income ratio to average net assets would have been 1.33%, 1.72% and 1.40%,
1.65%, respectively.
The accompanying notes are an integral part of these financial statements.
34
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/04 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Emerging Markets Fund (the Fund) is a Delaware statutory trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to seek
long-term growth of capital.
The Fund offers five classes of shares - Class A, Class B, Class C, Class R,
and Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has equal rights to voting,
redemptions, dividends and liquidation, except that the level of transfer agent
and distribution fees may differ among classes. Class A, Class B, Class C and
Class R shareowners have exclusive voting rights with respect to the
distribution plan for each class. There is no distribution plan for Class Y
shares.
The Fund's financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America that
require the management of the Fund to, among other things, make estimates and
assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of income, expenses and gains and losses
on investments during the reporting year. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
consistently followed by the Fund, which are in conformity with those generally
accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value
is computed once daily, on each day the New York Stock Exchange is open,
as of the close of regular trading on the Exchange. In computing the net
asset value, securities are valued at the last sale price on the principal
exchange where they are traded. Securities that have not traded on the
date of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are
valued at their fair values as determined by, or under the direction of,
the Board of Trustees. Trading in foreign securities is substantially
completed each day at various times prior to the close of the New York
Stock Exchange. The values of such securities used in
35
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
computing the net asset value of the Fund's shares are determined as of
such times. The Fund also may use the fair value of a security, including
a non-U.S. security, when the closing market price on the primary exchange
where the security is traded no long accurately reflects the value of the
security. As of May 31, 2004, there were no securities fair valued.
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 is informed of the ex-dividend
date in exercise of reasonable diligence. Dividend and interest income are
recorded on the accrual basis net of unrecoverable foreign taxes withheld
at the applicable country rates. Temporary cash investments are valued at
amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
The Fund's investments in emerging markets or countries with limited or
developing markets may subject the Fund to a greater degree of risk than
in a developed market. Risks associated with these developing markets
include political, social or economic factors and may affect the price of
the Fund's investments and income generated by these investments, as well
as the Fund's ability to repatriate such amounts.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions 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. dollar actually received.
Further, the effects of changes in foreign currency exchange rates on
investments are not segregated in the statement of operations from the
effects of changes in market price of those securities but are included
with the net realized and unrealized gain or loss on investments.
36
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio
hedges). All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized gains or losses are recorded
in the Fund's financial statements. The Fund records realized gains and
losses at the time a portfolio hedge is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
D. Futures Contracts
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices, and currency rates or to seek to
increase total return. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. Subsequent payments for futures contracts ("variation margin")
are paid or received by the Fund, depending on the daily fluctuation in
the value of the contracts, and are recorded by the Fund are unrealized
gains or losses. When the contract is closed, the Fund realizes a gain or
loss equal to the difference between the opening and closing values of the
contract. The use of futures contracts involves, to varying degrees,
elements of market risks which may exceed the amounts recognized by the
Fund. Changes in value of the contracts may not directly correlate to the
changes in value of the underlying securities. These risks may decrease
the effectiveness of the Fund's hedging strategies and potentially result
in a loss. At May 31, 2004, the Fund had no open futures contracts.
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies
37
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
and to distribute all of its taxable income and net realized capital
gains, if any, to its shareowners. Therefore, no federal income tax
provision is required.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During
the six months ended May 31, 2004, the Fund paid $2,128,749 in such taxes.
In determining the daily net asset value, the Fund estimates the reserve
for such taxes, if any, associated with investments in certain countries.
The estimated reserve for the capital gains is based on the net unrealized
appreciation on certain portfolio securities, the holding period of such
securities and the related tax rates, tax loss carryforward (if
applicable) and other such factors. As of May 31, 2004, the Fund had no
reserve related to capital gains. The estimated reserve for the
repatriation of foreign currencies is based on principal balances and/or
unrealized appreciation of applicable securities, the holding period of
such investments and the related tax rates and other such factors. As of
May 31, 2004, the reserve related to taxes on the repatriation of foreign
currencies was $836,755.
The tax character of current year distributions will be determined at the
end of the fiscal year. The tax character of distributions paid during the
year ended November 30, 2003 was as follows.
- --------------------------------------------------------------------------------
2003
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $41,093
Long-term capital gain --
-------
Total $41,093
=======
- --------------------------------------------------------------------------------
The following shows components of distributable earnings on a federal
income tax basis at November 30, 2003.
38
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2003
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 916,977
Capital loss carryforward (97,818,312)
Unrealized appreciation 58,792,492
------------
Total $(38,108,843)
============
- --------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales and the tax basis
adjustments on Passive Foreign Investment Company (PFIC) holdings.
The characterization of distributions to shareowners for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
At November 30, 2003, the Fund has reclassified $513,702 to decrease
undistributed net investment income and $513,702 to decrease accumulated
net realized loss on investments and foreign currency transactions, to
reflect permanent book/tax differences. The reclassification has no impact
on the net assets of the Fund and is designed to present the Fund's
capital accounts on a tax basis.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano
S.p.A.(UniCredito Italiano), earned $31,845 in underwriting commissions on
the sale of Fund shares during the six months ended May 31, 2004.
G. Class Allocations
Distribution fees are calculated based on the average daily net asset
value attributable to Class A, Class B, Class C and Class R shares of the
Fund, respectively. Class Y shares are not subject to a distribution plan.
Shareowners of each class share all expenses
39
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services, which are allocated
based on the number of accounts in each class and the ratable allocation
of related out-of-pocket expenses (see Note 3). Income, common expenses
and realized and unrealized gains and losses are calculated at the Fund
level and allocated daily to each class of shares based on the respective
percentage of adjusted net assets at the beginning of the day.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, Class C, Class R and Class Y shares can bear
different transfer agent and distribution fees.
H. Securities Lending
The Fund lends securities in its Portfolio to certain brokers-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
dividends on the securities loaned. Gain or loss on the value of the
loaned securities that may occur during the term of the loan will be for
the account of the Fund. The loans are secured by collateral of at least
102%, at all times, of the fair value of the securities loaned. The amount
of the collateral will be adjusted daily to reflect any price fluctuation
in the value of the loaned securities. The Fund has the right under the
lending agreements to recover the securites on loan from the borrower on
demand. The Fund invests cash collateral in the Securities Lending
Investment Fund, which is managed by Brown Brothers Harriman & Co., the
Fund's custodian.
I. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreements is held in safekeeping in
the customer-only account of the Fund's
40
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
custodian, or subcustodians. The Fund's investment adviser, Pioneer
Investment Management, Inc. (PIM), is responsible for determining that the
value of the collateral remains at least equal to the repurchase price.
2. Management Agreement
PIM, the Fund's investment adviser, manages the Fund's portfolio and is a
wholly owned indirect subsidiary of UniCredito Italiano. Management fees are
calculated daily at the annual rate of 1.25% of the Fund's average daily net
assets.
Effective December 31, 2003, PIM reduced its fee for managing the Fund to 1.15%
of average daily net assets. Simultaneously PIM has contractually agreed not to
impose all or a portion of its management fee and, if necessary, to limit other
ordinary operating expense to the extent required to reduce Class A expenses
2.15% of the average daily net assets attributable to Class A shares. The
portion of the Fund expenses attributable to classes of shares other than Class
A will be reduced only to the extent such expenses are reduced for Class A
shares. PIM may subsequently recover reimbursed expenses (within three years of
being incurred) from the Fund if its expense ratio of the Class A shares is
less than the expense limitation of the Class A shares. Each class will
reimburse PIM no more than the amount by which that class' expenses were
reduced.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At May 31, 2004, $181,021, was payable to PIM
related to management fees, administrative fees and certain other services, and
is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $93,069 in transfer agent
fees owed to PIMSS at May 31, 2004.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution with respect to Class A, Class B, Class
C and Class R shares (Class A Plan, Class B Plan, Class C Plan and Class R
Plan) in accordance with Rule 12b-1 of the
41
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/04 (unaudited) (continued)
- --------------------------------------------------------------------------------
Investment Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD
a service fee of up to 0.25% of the Fund's average daily net assets in
reimbursement of its actual expenditures to finance activities primarily
intended to result in the sale of Class A shares. Pursuant to the Class B Plan
and the Class C Plan, the Fund pays PFD 1.00% of the average daily net assets
attributable to each class of shares. The fee consists of a 0.25% service fee
and a 0.75% distribution fee paid as compensation for personal services and/or
account maintenance services or distribution services with regard to Class B
and Class C shares. Pursuant to the Class R Plan, the Fund pays PFD 0.50% of
the average daily net assets attributable to Class R shares for distribution
services. Included in due to affiliates is $90,428 in distribution fees payable
to PFD at May 31, 2004. The fund also has adopted a separate service plan for
Class R shares (Service Plan). The Service Plan authorizes the Fund to pay
securities dealers, plan administrators or other service organizations that
agree to provide certain services to retirement plans or plan participants
holdings 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 help by such plans.
In addition, redemptions of each class of shares (except Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within one year of purchase. Class B shares that are redeemed within six years
of purchase are subject to a CDSC at declining rates beginning at 4.0%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Redemptions of Class R shares within 18 months of purchase may be subject to a
CDSC of 1.00%. Proceeds from the CDSCs are paid to PFD. For the six months
ended May 31, 2004, CDSCs in the amount of $33,961 were paid to PFD.
Effective November 1, 2003, the Fund charges a 2.0% redemption fee on shares
(except Class B and Class C shares) sold within 30 days of purchase. The Fund
plans to implement this fee for Class B and Class C shares as soon as the Fund
can implement certain operational changes. The fee does not apply to certain
types of transactions as described in the Fund's prospectus. For the six months
42
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ended May 31, 2004, the Fund collected $25,964 in redemption fees, which are
included in the Fund's capital account.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses, due to interest earned
on cash held by PIMSS. For the six months ended May 31, 2004, the Fund's
expenses were reduced by $4,311 under such arrangements.
6. Forward Foreign Currency Contracts
At May 31, 2004, the Fund had entered into various contracts that obligate the
Fund to deliver currencies at specified future dates. At the maturity of a
contract, the Fund must make delivery of the foreign currency. Alternatively,
prior to the settlement date of a portfolio hedge, the Fund may close out such
contracts by entering into an offsetting hedge contract. As of May 31, 2004,
the Fund had no outstanding portfolio or settlement hedges.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $50 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $50 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
is payable at the Federal Funds Rate plus 1/2% on an annualized basis. The
Funds pay an annual commitment fee for this facility. The commitment fee is
allocated among such Funds based on their respective borrowing limits. For the
six months ended May 31, 2004, there was no borrowings under such agreement.
43
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
Mary K. Bush Osbert M. Hood, Executive
Richard H. Egdahl, M.D. Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Osbert M. Hood Dorothy E. Bourassa, Secretary
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). This
information is available at pioneerfunds.com.
44
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
Please consider a fund's investment objective, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about a fund and should be read carefully before you invest or send money. To
obtain a prospectus and for other information on any Pioneer fund, contact your
advisor, call 1-800-225-6292 or visit our web site at www.pioneerfunds.com.
U.S. Equity International/Global Equity
Pioneer Fund Pioneer Emerging Markets Fund
Pioneer Balanced Fund Pioneer Europe Select Fund
Pioneer Equity Income Fund Pioneer Europe Fund
Pioneer Growth Shares Pioneer International Equity Fund
Pioneer Mid Cap Growth Fund Pioneer International Value Fund
Pioneer Mid Cap Value Fund
Pioneer Oak Ridge Large Cap Fixed Income
Growth Fund Pioneer America Income Trust
Pioneer Oak Ridge Small Cap Pioneer Bond Fund
Growth Fund Pioneer Global High Yield Fund
Pioneer Papp America-Pacific Pioneer High Yield Fund
Rim Fund Pioneer Strategic Income Fund
Pioneer Papp Small and Mid Cap Pioneer Tax Free Income Fund
Growth Fund
Pioneer Papp Stock Fund Money Market
Pioneer Papp Strategic Pioneer Cash Reserves Fund**
Growth Fund
Pioneer Real Estate Shares
Pioneer Research Fund*
Pioneer Small Cap Value Fund
Pioneer Small Company Fund
Pioneer Value Fund
* Name change effective December 11, 2003. Formerly known as Pioneer Core
Equity Fund.
** An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
45
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@piog.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
Please consider the fund's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about the fund and should be read carefully before you invest or send money. To
obtain a prospectus and for other information on any Pioneer fund, call
1-800-225-6292 or visit our website www.pioneerfunds.com.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc. 15611-00-0704
60 State Street (Copyright)2004 Pioneer Funds Distributor, Inc.
Boston, Massachusetts 02109 Underwriter of Pioneer mutual funds, Member SIPC
www.pioneerfunds.com
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognizes the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognizes that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
N/A
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer and principal financial
officer have concluded, that the registrant's disclosure controls and
procedures are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this report,
except as described in (b) below.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses except as follows.
Although the registrant experienced no compliance breaches as a result of
a weakness detected subsequent to the date of the last evaluation of
controls by the registrant's certifying officers, the registrant's investment
advisor took corrective action related to a material weakness in the Fund's
compliance controls.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Emerging Markets Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 4, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date August 4, 2004
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date August 4, 2004
* Print the name and title of each signing officer under his or her signature.