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 811-07318
Pioneer Series Trust VIII
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Amundi Pioneer Asset Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2017 through November 30, 2018
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer International
Equity Fund
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Annual Report | November 30, 2018
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Ticker Symbols:
Class A PIIFX
Class C PCITX
Class Y INVYX
Beginning in February 2021, as permitted by regulations adopted by the
Securities and Exchange Commission, paper copies of the Trust's shareholder
reports like this one will no longer be sent by mail, unless you specifically
request paper copies of the reports from the Trust or from your financial
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reports will be made available on the Trust's website, and you will be notified
by mail each time a report is posted and provided with a website link to access
the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically by
contacting your financial intermediary or, if you invest directly with the
Trust, by calling 1-800-710-0935.
You may elect to receive all future reports in paper free of charge. If you
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continue receiving paper copies of your shareholder reports by calling
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copies of your shareholder reports. Your election to receive reports in paper
will apply to all funds held in your account if you invest through your
financial intermediary or all funds held with the Pioneer funds complex if you
invest directly.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 22
Notes to Financial Statements 29
Report of Independent Registered Public Accounting Firm 38
Additional Information 40
Approval of Investment Management Agreement 42
Trustees, Officers and Service Providers 47
Pioneer International Equity Fund | Annual Report | 11/30/18 1
President's Letter
Since 1928, active portfolio management based on in-depth, fundamental
research, has been the foundation of Amundi Pioneer's investment approach. We
believe an active management investment strategy is a prudent approach to
investing, especially during periods of market volatility, which can result
from any number of risk factors, including slow U.S. economic growth, rising
interest rates, and geopolitical factors. Of course, in today's global economy,
risk factors extend well beyond U.S. borders, and political and economic issues
on the international front can also cause or contribute to volatility in U.S.
markets.
At Amundi Pioneer, each security under consideration is researched by our team
of experienced investment professionals, who visit companies and meet with
their management teams. At the end of this research process, if we have
conviction in a company's business model and management team, and regard the
security as a potentially solid investment opportunity, an Amundi Pioneer
portfolio manager makes an active decision to invest in that security. The
portfolio resulting from these decisions represents an expression of his or her
convictions, and strives to balance overall risk and return opportunity. As an
example, the Standard & Poor's 500 Index -- the predominant benchmark for many
U.S. Large-Cap Core Equity funds -- has 500 stocks. An Amundi Pioneer portfolio
manager chooses to invest in only those companies that he or she believes can
offer the most attractive opportunities to pursue the fund's investment
objective, thus potentially benefiting the fund's shareowners. This process
results in a portfolio that does not own all 500 stocks, but a much narrower
universe. The same active decision to invest in a company is also applied when
we decide to sell a security, either due to changing fundamentals, valuation
concerns, or market risks. We apply this active decision-making across all of
our equity, fixed-income, and global portfolios.
Today, as investors, we have many options. It is our view that active
management can serve shareholders well not only when markets are thriving, but
also during periods of market volatility and uncertainty, thus making it a
compelling investment choice. As you consider the many choices today, we
encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner.
2 Pioneer International Equity Fund | Annual Report | 11/30/18
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
November 30, 2018
Any information in this shareowner report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer International Equity Fund | Annual Report | 11/30/18 3
Portfolio Management Discussion | 11/30/18
In the follow interview, Madelynn Matlock, Lead Portfolio Manager of Pioneer
International Equity Fund, discusses the market environment for international
equities and the factors that influenced the Fund's performance during the
12-month period ended November 30, 2018. Ms. Matlock, a senior vice president
and a portfolio manager at Amundi Pioneer Asset Management, Inc. (Amundi
Pioneer), and Marco Pirondini, Senior Managing Director, Head of Equities,
U.S., and a portfolio manager at Amundi Pioneer, are responsible for the
day-to-day management of the Fund.
Q How did the Fund perform during the 12-month period ended November 30,
2018?
A Pioneer International Equity Fund's Class A shares returned -10.46% at net
asset value during the 12-month period ended November 30, 2018, while the
Fund's benchmark, the Morgan Stanley Capital International (MSCI) Europe,
Australasia, Far East (EAFE) ND Index (the MSCI EAFE Index)1, returned
-7.94%. During the same period, the average return for the 748 mutual
funds in Morningstar's Foreign Large Blend Funds category was -8.61%.
Q How would you characterize the investment environment for international
equities during the 12-month period ended November 30, 2018?
A The period began on a relatively upbeat note as investors welcomed the
passage of U.S. tax legislation in December 2017, which many believed
would accelerate U.S. corporate earnings growth. However, early in 2018,
volatility picked up as the international markets digested headlines about
less-accommodative central-bank policies, more protectionist U.S. trade
policies, and ongoing Brexit negotiations in the United Kingdom.
International markets recovered, to a certain degree, during the spring
and summer months, as better-than-expected corporate earnings reports and
jobs data helped to bolster optimism about the U.S. economy and eased
concerns about global economic growth. International stocks sold off
1 The MSCI information may only be used for your internal use, may not be
reproduced or re-disseminated in any form and may not be used as a basis
for or a component of any financial instruments or products or indices.
None of the MSCI information is intended to constitute investment advice
or a recommendation to make (or refrain from making) any kind of
investment decision and may not be relied on as such. Historical data and
analysis should not be taken as an indication or guarantee of any future
performance analysis, forecast or prediction. The MSCI information is
provided on an "as is" basis and the user of this information assumes the
entire risk of any use made of this information. MSCI, each of its
affiliates and each other person involved in or related to compiling,
computing or creating any MSCI information (collectively, the "MSCI
Parties") expressly disclaims all warranties (including, without
limitation, any warranties of originality, accuracy, completeness,
timeliness, non-infringement, merchantability and fitness for a particular
purpose) with respect to this information. Without limiting any of the
foregoing, in no event shall any MSCI Party have any liability for any
direct, indirect, special, incidental, punitive, consequential (including,
without limitation, lost profits) or any other damages.
4 Pioneer International Equity Fund | Annual Report | 11/30/18
sharply in October and November, however, registering some of their
biggest monthly losses in recent memory. A flight to safety ensued, as
investors sold higher-risk investments in response to growing concerns
about the U.S./China trade dispute, rising U.S. interest rates, cascading
oil prices, and increasing challenges to the political status quo around
the globe.
Over the 12-month reporting period, international equity markets, as
measured by the Fund's benchmark, the MSCI EAFE ND Index, underperformed
U.S. stocks, as measured by the Standard & Poor's Index (the S&P 500). The
MSCI EAFE Index returned -7.94% for the period, while the S&P 500 managed
to post a positive return of 6.27%, despite persistent market volatility.
From a regional perspective, international equity indices were negative
across the board. Slowing regional economic growth and political
uncertainties, including Brexit and Italy's fiscal challenges, weighed
heavily on European stocks, which fell by 9.40%. In the emerging markets,
China's economic slowdown, rising U.S. interest rates, and the
strengthening U.S. dollar created headwinds, as the MSCI Emerging Markets
Index returned -9.09% over the 12 months. Japanese stocks also slumped,
returning -5.99%. From a sector perspective, the more defensive sectors
within the Fund's benchmark -- such as health care and information
technology -- were the positive performers over the period, while
financials and industrials fared the worst.
Q Which of your investment strategies or individual portfolio holdings
detracted from the Fund's benchmark-relative performance during the
12-month period ended November 30, 2018?
A The Fund's underperformance relative to the benchmark over the period was
due primarily to individual stock selection results. For example, while
the Fund's underweight exposure to consumer discretionary stocks benefited
benchmark-relative performance, the portfolio's investment in Valeo
detracted from relative returns. An automotive-components supplier based
in France, Valeo struggled in response to new European regulations for
emissions testing. The new standards were announced with little advance
notice and forced automakers across Europe to halt car production. In
turn, auto-components suppliers faced order delays while automakers
retooled to meet the new standards. Valeo's stock price fell sharply after
the company's management announced that financial results would come in
below expectations during the second half of 2018. We continue to evaluate
the company's prospects and whether the risk of delays is offset by what
we believe is the longer-term upside potential, especially given Valeo's
leadership in the fuel-saving and self-driving technology market.
The Fund's position in Schlumberger, the largest oilfield-services
provider, also detracted from benchmark-relative performance during the
period.
Pioneer International Equity Fund | Annual Report | 11/30/18 5
The stock performed well until oil prices fell by one-third during the
second half of the period. Concerns about a global oil glut due to
fracking production, or pressure pumping, in the shale-oil regions of the
United States, coupled with an apparent lack of interest by the cartel of
international oil producers to limit production, led to a slowdown in
spending on oil services by some of Schlumberger's customers. We still
hold the stock in the Fund's portfolio, however, as we believe
oilfield-services spending will eventually shift more towards offshore
projects, an area in which Schlumberger is considered one of the best in
the industry.
Within information technology, several semiconductor-related holdings in
the portfolio weighed on the Fund's benchmark-relative performance during
the period. One such underperformer was a position in Sumco, a Japanese
distributor of high-quality silicon wafers used in semiconductors, which
struggled due to concerns that the semiconductor market had reached a
cyclical peak in sales and profit margins. Given industry consolidation,
and our belief that the cyclical correction appears to be more severe than
first anticipated, we sold the Fund's stake in Sumco before period-end.
Q Which of your investment strategies or individual portfolio holdings
contributed positively to the Fund's benchmark-relative performance
results during the 12-month period ended November 30, 2018?
A Our sector and country allocation strategies contributed modestly to the
Fund's benchmark-relative results over the period. With regard to sector
allocation, the portfolio's overweight to health care, an underweight to
consumer discretionary, and a slight underweight to financials each
contributed positively to the Fund's benchmark-relative returns, as did
our timely decisions to trim the portfolio's positions during market
rallies and add to positions when the markets were under pressure.
With regard to individual holdings, the top contributor to the Fund's
benchmark-relative performance during the 12-month period was Lonza Group,
a Swiss-based multinational chemical and biotechnology company that offers
custom chemical manufacturing for the life sciences, pharmaceuticals, food
processing, and agriculture industries. In the third quarter of 2018, the
stock appreciated by more than 20% due to the company's strong sales and
earnings growth. Thus, our decision to overweight the stock in the Fund's
portfolio versus the benchmark was also a positive driver of relative
performance.
Hoya, the second-best performing stock in the portfolio during the period,
has been a long-term Fund holding. The global med-tech company is a
manufacturer of eyeglass lenses, contact lenses, and lens inserts for
cataract surgery. In addition to its optical products, Hoya produces
6 Pioneer International Equity Fund | Annual Report | 11/30/18
glass-magnetic-memory discs, which are an important component of
cloud-data storage operations. Hoya's stock rallied during the period on
strong earnings announcements, and contributed positively to the Fund's
benchmark-relative returns.
Within financials, the Fund's holdings were more weighted toward insurance
companies than banks, and that positioning aided benchmark-relative
performance. In our view, trade concerns present headwinds for European
and Asian banks that have exposure to the emerging markets. The
uncertainty surrounding the eventual Brexit outcome also poses challenges
for banks doing business in the United Kingdom.
On the other hand, we believe insurance companies represent a relatively
more attractive investment option within financials. Insurance products
have tended to be less sensitive to interest-rate moves and have a longer
time frame than most bank-lending arrangements, and so the outlook for
company earnings is steadier than in the banking industry. A position in
Zurich Group Insurance was the third-largest positive contributor to the
Fund's benchmark-relative performance during the period, and represents a
good example of our investment strategy. Zurich provides a wide range of
insurance and risk-management products, from traditional property and
casualty to protecting companies from political and cyber threats. With
its premier Farmer's Insurance brand, the company provides protection from
extreme weather events to coffee growers in Colombia's fertile Andes
mountain range as well as new technology tools to help farmers in India
better manage rice production against flood risk. Farmer's is also at the
forefront of developing technologies that are revolutionizing the way
drivers interact with their automobiles.
Q Did the Fund have any derivative exposure during the 12-month period ended
November 30, 2018?
A No, we did not invest the Fund in derivative securities during the period.
Q What is your outlook for international equities going into 2019, and how
are you positioning the Fund?
A With the myriad crosscurrents and uncertainties that emerged in 2018, we
are cautious in our outlook for international equities in 2019. Higher
tariffs are likely to contribute to higher inflation and slower growth,
while rising U.S. interest rates may also contribute to slowdowns in the
U.S. and global economies. Finally, European economic growth could be
negatively affected if the United Kingdom exits the European Union without
trade agreements.
With those and other challenges in mind, we believe it is important to
manage both volatility and market risk by investing the Fund's portfolio
in stocks of what we believe are high-quality companies with strong
balance sheets and sustainable competitive advantages, revenues, and
earnings
Pioneer International Equity Fund | Annual Report | 11/30/18 7
growth. We have taken steps to reduce the Fund's exposure to cyclical
stocks, or stocks that depend on strong economic growth to perform well,
given the vulnerability of cyclicals to trade disputes that have continued
to weigh on global economic growth prospects.
We remain committed to our long-running portfolio investment themes of
automation and artificial intelligence, aging demographics in the
developed world, and the emergence of a rising middle class in the
developing world, where workers now have more disposable income.
Please refer to the Schedule of Investments on pages 16-21 for a full listing
of Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political
conditions.
To the extent the Fund invests in issuers located within specific countries or
regions, the Fund may be particularly affected by adverse markets, rates, and
events, which may occur in those countries and regions.
When interest rates rise, the prices of fixed-income securities in the Fund
will generally fall. Conversely, when interest rates fall, the prices of
fixed-income securities in the Fund will generally rise.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries or sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc.,
for a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
8 Pioneer International Equity Fund | Annual Report | 11/30/18
Portfolio Summary | 11/30/18
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 17.8%
Industrials 14.6%
Health Care 14.1%
Consumer Staples 12.8%
Communication Services 7.3%
Information Technology 7.1%
Materials 7.0%
Real Estate 6.6%
Consumer Discretionary 6.3%
Energy 5.2%
Government 1.2%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of total investments based on country of domicile)*
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Japan 19.6%
France 15.0%
Germany 15.0%
Switzerland 13.3%
United Kingdom 9.9%
Netherlands 7.1%
Ireland 4.9%
United States 4.7%
Sweden 2.5%
Taiwan 1.7%
Luxembourg 1.5%
Spain 1.4%
South Korea 1.3%
Malaysia 1.3%
Other (individually less than 1%) 0.8%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investments)*
1. Lonza Group AG 2.64%
--------------------------------------------------------------------------------
2. Seven & i Holdings Co., Ltd. 2.52
--------------------------------------------------------------------------------
3. Royal Dutch Shell Plc 2.33
--------------------------------------------------------------------------------
4. Schneider Electric SE 2.27
--------------------------------------------------------------------------------
5. Henkel AG & Co. KGaA 2.26
--------------------------------------------------------------------------------
6. Novartis AG 2.24
--------------------------------------------------------------------------------
7. Kerry Group Plc 2.24
--------------------------------------------------------------------------------
8. Mitsubishi Electric Corp. 2.23
--------------------------------------------------------------------------------
9. Daikin Industries, Ltd. 2.21
--------------------------------------------------------------------------------
10. Carnival Plc 2.18
--------------------------------------------------------------------------------
* Excludes temporary cash investments and all derivative contracts except
for options purchased. The Fund is actively managed, and current holdings
may be different. The holdings listed should not be considered
recommendations to buy or sell any securities.
Pioneer International Equity Fund | Annual Report | 11/30/18 9
Prices and Distributions | 11/30/18
Net Asset Value per Share
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--------------------------------------------------------------------------------
Class 11/30/18 11/30/17
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A $20.97 $24.72
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C $18.09 $21.52
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Y $21.03 $24.79
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Distributions per Share: 12/1/17-11/30/18
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.4488 $ -- $0.7715
--------------------------------------------------------------------------------
C $0.2843 $ -- $0.7715
--------------------------------------------------------------------------------
Y $0.5371 $ -- $0.7715
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Index Definition
--------------------------------------------------------------------------------
The MSCI EAFE ND Index is an unmanaged, commonly used measure of international
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-13.
10 Pioneer International Equity Fund | Annual Report | 11/30/18
Performance Update | 11/30/18 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer International Equity Fund at
public offering price during the periods shown, compared to that of the Morgan
Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) ND
Index.
Average Annual Total Returns
(As of November 30, 2018)
----------------------------------------------------
Net Public MSCI
Asset Offering EAFE
Value Price ND
Period (NAV) (POP) Index
----------------------------------------------------
10 Years 6.27% 5.64% 7.47%
5 Years 1.78 0.59 1.84
1 Year -10.46 -15.61 -7.94
----------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2018)
----------------------------------------------------
Gross Net
----------------------------------------------------
1.59% 1.25%
----------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
International MSCI EAFE ND
Equity Fund Index
11/08 $ 9,425 $10,000
11/09 $12,886 $13,772
11/10 $12,635 $13,925
11/11 $12,276 $13,352
11/12 $12,936 $15,035
11/13 $15,847 $18,768
11/14 $16,093 $18,766
11/15 $15,821 $18,213
11/16 $15,078 $17,548
11/17 $19,336 $22,332
11/18 $17,313 $20,560
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. POP
returns reflect deduction of maximum 5.75% sales charge. NAV returns would have
been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through April 1, 2019, for Class A shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer International Equity Fund | Annual Report | 11/30/18 11
Performance Update | 11/30/18 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer International Equity Fund during
the periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of November 30, 2018)
----------------------------------------------------
MSCI
EAFE
If If ND
Period Held Redeemed Index
----------------------------------------------------
10 Years 5.33% 5.33% 7.47%
5 Years 0.88 0.88 1.84
1 Year -11.22 -11.22 -7.94
----------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2018)
----------------------------------------------------
Gross Net
----------------------------------------------------
2.32% 2.15%
----------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer
International MSCI EAFE ND
Equity Fund Index
11/08 $10,000 $10,000
11/09 $13,544 $13,772
11/10 $13,165 $13,925
11/11 $12,677 $13,352
11/12 $13,245 $15,035
11/13 $16,083 $18,768
11/14 $16,179 $18,766
11/15 $15,762 $18,213
11/16 $14,895 $17,548
11/17 $18,929 $22,332
11/18 $16,805 $20,560
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. NAV returns would have been lower had sales charges
been reflected. All results are historical and assume the reinvestment of
dividends and capital gains. Other share classes are available for which
performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through April 1, 2019, for Class C shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer International Equity Fund | Annual Report | 11/30/18
Performance Update | 11/30/18 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer International Equity Fund during
the periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of November 30, 2018)
----------------------------------------------------
Net MSCI
Asset EAFE
Value ND
Period (NAV) Index
----------------------------------------------------
10 Years 6.69% 7.47%
5 Years 2.17 1.84
1 Year -10.15 -7.94
----------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2018)
----------------------------------------------------
Gross Net
----------------------------------------------------
1.06% 0.90%
----------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer
International MSCI EAFE ND
Equity Fund Index
11/08 $ 5,000,000 $ 5,000,000
11/09 $ 6,857,498 $ 6,885,766
11/10 $ 6,753,757 $ 6,962,482
11/11 $ 6,592,049 $ 6,675,784
11/12 $ 6,973,744 $ 7,517,270
11/13 $ 8,579,116 $ 9,384,195
11/14 $ 8,745,392 $ 9,382,775
11/15 $ 8,632,412 $ 9,106,704
11/16 $ 8,257,719 $ 8,773,839
11/17 $10,632,486 $11,166,202
11/18 $ 9,552,890 $10,279,894
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted. The performance data quoted represents past
performance, which is no guarantee of future results.
Investment return and principal value will fluctuate, and shares, when
redeemed, may be worth more or less than their original cost.
Class Y shares were first publicly offered on April 16, 2009. Performance shown
for periods prior to the inception of Class Y shares on April 16, 2009,
reflects the NAV performance of the Fund's Class A shares. The performance does
not reflect differences in expenses, including the Rule 12b-1 fees applicable
to Class A shares. Since fees for Class A shares are generally higher than
those of Class Y shares, the performance for Class Y shares prior to their
inception would have been higher than the performance shown. For the period
beginning April 16, 2009, the actual performance of Class Y shares is
reflected. Class Y shares are not subject to sales charges and are available
for limited groups of eligible investors, including institutional investors.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through April 1, 2019, for Class Y shares. There can be no assurance
that Amundi Pioneer will extend the expense limitation beyond such time. Please
see the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Please refer to the financial highlights for a more current expense ratio.
Pioneer International Equity Fund | Annual Report | 11/30/18 13
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer International Equity Fund
Based on actual returns from June 1, 2018, through November 30, 2018.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 6/1/18
--------------------------------------------------------------------------------
Ending Account $ 895.31 $ 891.99 $ 896.98
Value (after expenses)
on 11/30/18
--------------------------------------------------------------------------------
Expenses Paid $ 5.84 $ 9.91 $ 4.14
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.23%, 2.09%,
and 0.87%, for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
183/365 (to reflect the partial year period).
14 Pioneer International Equity Fund | Annual Report | 11/30/18
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the
period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer International Equity Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from June 1, 2018, through November 30, 2018.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 6/1/18
--------------------------------------------------------------------------------
Ending Account $1,018.90 $1,014.59 $1,020.71
Value (after expenses)
on 11/30/18
--------------------------------------------------------------------------------
Expenses Paid $ 6.23 $ 10.56 $ 4.41
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.23%, 2.09%,
and 0.87%, for Class A, Class C, and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
183/365 (to reflect the partial year period).
Pioneer International Equity Fund | Annual Report | 11/30/18 15
Schedule of Investments | 11/30/18
--------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 98.4%
COMMON STOCKS -- 97.2% of Net Assets
Auto Components -- 2.8%
51,900 Aisin Seiki Co., Ltd. $ 2,052,488
174,400 Dometic Group AB (144A) 1,247,684
20,700 Valeo SA 593,803
------------
Total Auto Components $ 3,893,975
--------------------------------------------------------------------------------------------
Banks -- 7.7%
35,050 BNP Paribas SA $ 1,763,406
381,600 CYBG Plc 996,927
201,500 ING Groep NV 2,450,361
762,500 Malayan Banking Bhd 1,714,669
286,100 Mitsubishi UFJ Financial Group, Inc. 1,559,692
90,200 Swedbank AB 2,095,494
------------
Total Banks $ 10,580,549
--------------------------------------------------------------------------------------------
Building Products -- 2.8%
26,900 Daikin Industries, Ltd. $ 2,988,431
20,400 Kingspan Group Plc 878,767
------------
Total Building Products $ 3,867,198
--------------------------------------------------------------------------------------------
Capital Markets -- 2.7%
24,500 Euronext NV (144A) $ 1,433,277
162,000(a) UBS Group AG 2,196,469
------------
Total Capital Markets $ 3,629,746
--------------------------------------------------------------------------------------------
Chemicals -- 4.9%
36,600 BASF SE $ 2,663,173
36,382 Croda International Plc 2,269,952
5,600 LG Chem, Ltd. 1,736,455
------------
Total Chemicals $ 6,669,580
--------------------------------------------------------------------------------------------
Construction Materials -- 0.9%
47,000 CRH Plc $ 1,290,919
------------
Total Construction Materials $ 1,290,919
--------------------------------------------------------------------------------------------
Containers & Packaging -- 1.1%
54,700 Smurfit Kappa Group Plc $ 1,484,106
------------
Total Containers & Packaging $ 1,484,106
--------------------------------------------------------------------------------------------
Diversified Telecommunication Services -- 1.7%
137,100 Orange SA $ 2,355,122
------------
Total Diversified Telecommunication Services $ 2,355,122
--------------------------------------------------------------------------------------------
Electrical Equipment -- 4.4%
228,300 Mitsubishi Electric Corp. $ 3,012,733
42,200 Schneider Electric SE 3,069,691
------------
Total Electrical Equipment $ 6,082,424
--------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
16 Pioneer International Equity Fund | Annual Report | 11/30/18
--------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------
Electronic Equipment, Instruments & Components -- 2.2%
3,700 Keyence Corp. $ 2,005,985
108,800 Sunny Optical Technology Group Co., Ltd. 1,059,653
------------
Total Electronic Equipment, Instruments & Components $ 3,065,638
--------------------------------------------------------------------------------------------
Energy Equipment & Services -- 1.3%
40,200 Schlumberger, Ltd. $ 1,813,020
------------
Total Energy Equipment & Services $ 1,813,020
--------------------------------------------------------------------------------------------
Equity Real Estate Investment Trusts (REIT) -- 2.3%
13,700 Covivio $ 1,335,605
146,800 Merlin Properties Socimi SA 1,854,458
------------
Total Equity Real Estate Investment Trusts (REIT) $ 3,190,063
--------------------------------------------------------------------------------------------
Food & Staples Retailing -- 3.6%
78,000 Seven & i Holdings Co., Ltd. $ 3,400,884
43,500 Sundrug Co., Ltd. 1,472,794
------------
Total Food & Staples Retailing $ 4,873,678
--------------------------------------------------------------------------------------------
Food Products -- 3.6%
26,300 Danone SA $ 1,966,247
29,300 Kerry Group Plc 3,027,652
------------
Total Food Products $ 4,993,899
--------------------------------------------------------------------------------------------
Health Care Equipment & Supplies -- 4.6%
45,900 Hoya Corp. $ 2,814,992
68,000 Koninklijke Philips NV 2,571,355
21,300(a) Siemens Healthineers AG (144A) 921,180
------------
Total Health Care Equipment & Supplies $ 6,307,527
--------------------------------------------------------------------------------------------
Health Care Providers & Services -- 1.4%
34,200 Fresenius SE & Co. KGaA $ 1,939,228
------------
Total Health Care Providers & Services $ 1,939,228
--------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure -- 3.3%
50,400 Carnival Plc $ 2,935,912
114,100 TUI AG 1,634,077
------------
Total Hotels, Restaurants & Leisure $ 4,569,989
--------------------------------------------------------------------------------------------
Household Products -- 2.2%
29,600 Henkel AG & Co. KGaA $ 3,045,065
------------
Total Household Products $ 3,045,065
--------------------------------------------------------------------------------------------
Industrial Conglomerates -- 1.7%
20,000 Siemens AG $ 2,313,973
------------
Total Industrial Conglomerates $ 2,313,973
--------------------------------------------------------------------------------------------
Insurance -- 7.1%
13,700 Allianz SE $ 2,890,416
113,300 AXA SA 2,758,607
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/18 17
Schedule of Investments | 11/30/18 (continued)
--------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------
Insurance -- (continued)
86,200 T&D Holdings, Inc. $ 1,224,846
9,100 Zurich Insurance Group AG 2,855,095
------------
Total Insurance $ 9,728,964
--------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 2.6%
11,000(a) Lonza Group AG $ 3,564,281
------------
Total Life Sciences Tools & Services $ 3,564,281
--------------------------------------------------------------------------------------------
Machinery -- 2.1%
6,562(a) Knorr-Bremse AG $ 612,155
125,200 Kubota Corp. 2,136,173
------------
Total Machinery $ 2,748,328
--------------------------------------------------------------------------------------------
Media -- 2.3%
637,900 ITV Plc $ 1,183,429
32,600 Publicis Groupe SA 1,931,322
------------
Total Media $ 3,114,751
--------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels -- 3.8%
104,000 Royal Dutch Shell Plc $ 3,141,983
37,500 TOTAL SA 2,085,341
------------
Total Oil, Gas & Consumable Fuels $ 5,227,324
--------------------------------------------------------------------------------------------
Personal Products -- 3.2%
10,100 L'Oreal SA $ 2,384,997
36,032 Unilever NV 1,998,881
------------
Total Personal Products $ 4,383,878
--------------------------------------------------------------------------------------------
Pharmaceuticals -- 5.3%
27,900 AstraZeneca Plc $ 2,180,930
33,200 Novartis AG 3,028,441
7,706 Roche Holding AG 1,998,044
------------
Total Pharmaceuticals $ 7,207,415
--------------------------------------------------------------------------------------------
Real Estate Management & Development -- 4.2%
87,000 Grand City Properties SA $ 2,051,249
455,900 Ichigo, Inc. 1,561,844
44,199 Vonovia SE 2,136,351
------------
Total Real Estate Management & Development $ 5,749,444
--------------------------------------------------------------------------------------------
Semiconductors & Semiconductor Equipment -- 3.1%
97,700 Infineon Technologies AG $ 2,044,719
306,000 Taiwan Semiconductor Manufacturing Co., Ltd. 2,234,271
------------
Total Semiconductors & Semiconductor Equipment $ 4,278,990
--------------------------------------------------------------------------------------------
Software -- 1.6%
17,600(a) Temenos AG $ 2,192,324
------------
Total Software $ 2,192,324
--------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer International Equity Fund | Annual Report | 11/30/18
--------------------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 3.4%
112,400 Ashtead Group Plc $ 2,522,377
33,915 Ferguson Plc 2,180,214
------------
Total Trading Companies & Distributors $ 4,702,591
--------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 3.3%
96,400 KDDI Corp. $ 2,260,250
1,011,400 Vodafone Group Plc 2,176,484
------------
Total Wireless Telecommunication Services $ 4,436,734
--------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $127,500,886) $133,300,723
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Principal
Amount USD ($)
--------------------------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS --
1.2% of Net Assets
970,000(b) U.S. Treasury Bills, 12/26/18 $ 968,592
700,000(b) U.S. Treasury Bills, 1/24/19 697,697
--------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $1,666,091) $ 1,666,289
--------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 98.4%
(Cost $129,166,977)(c) $134,967,012
--------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.6% $ 2,129,330
--------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $137,096,342
============================================================================================
REIT Real Estate Investment Trust.
(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 November 30, 2018, the value of these securities
amounted to $3,602,141, or 2.6% of net assets.
(a) Non-income producing security.
(b) Security issued with a zero coupon. Income is recognized through
accretion of discount.
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/18 19
Schedule of Investments | 11/30/18 (continued)
(c) Distributions of investments by country of domicile (excluding
temporary cash investments) as a percentage of total investments in
securities, is as follows:
Japan 19.6%
France 15.0
Germany 15.0
Switzerland 13.3
United Kingdom 9.9
Netherlands 7.1
Ireland 4.9
United States 4.7
Sweden 2.5
Taiwan 1.7
Luxembourg 1.5
Spain 1.4
South Korea 1.3
Malaysia 1.3
Other (individually less than 1%) 0.8
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for
the year ended November 30, 2018, aggregated $67,507,440 and $92,157,898,
respectively.
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc. (the "Adviser"), serves as the Fund's investment adviser, as
set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to
procedures adopted by the Board of Trustees. Under these procedures, cross
trades are affected at current market prices. During the year ended November
30, 2018, the Fund did not engage in cross trade activity.
At November 30, 2018, the net unrealized appreciation on investments based on
cost for federal tax purposes of $131,072,873 was as follows:
Aggregate gross unrealized appreciation for all investments in which there
is an excess of value over tax cost $ 20,024,915
Aggregate gross unrealized depreciation for all investments in which there
is an excess of tax cost over value (16,130,776)
-------------
Net unrealized appreciation $ 3,894,139
=============
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
20 Pioneer International Equity Fund | Annual Report | 11/30/18
The following is a summary of the inputs used as of November 30, 2018, in
valuing the Fund's investments.
-------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-------------------------------------------------------------------------------------
Common Stocks
Energy Equipment &
Services $1,813,020 $ -- $ -- $ 1,813,020
All Other
Common Stocks* -- 131,487,703 -- 131,487,703
U.S. Government and
Agency Obligations -- 1,666,289 -- 1,666,289
-------------------------------------------------------------------------------------
Total Investments
in Securities $1,813,020 $133,153,992 $ -- $134,967,012
=====================================================================================
* Level 2 securities are valued using inputs/data furnished by independent
pricing services using fair value factors.
During the year ended November 30, 2018, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/18 21
Statement of Assets and Liabilities | 11/30/18
ASSETS:
Investments in unaffiliated issuers, at value (cost $129,166,977) $134,967,012
Cash 63,879
Foreign currencies, at value (cost $91,694) 91,462
Receivables --
Investment securities sold 3,734,273
Fund shares sold 22,363
Dividends 885,967
Due from the Adviser 110,338
Other assets 12,094
----------------------------------------------------------------------------------------------
Total assets $139,887,388
==============================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 2,348,141
Fund shares repurchased 174,936
Trustees' fees 1,429
Registration fees 45,993
Due to affiliates 86,808
Accrued expenses 133,739
----------------------------------------------------------------------------------------------
Total liabilities $ 2,791,046
==============================================================================================
NET ASSETS:
Paid-in capital $129,814,155
Distributable earnings 7,282,187
----------------------------------------------------------------------------------------------
Net assets $137,096,342
==============================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $71,885,047/3,428,551 shares) $ 20.97
Class C (based on $6,564,707/362,990 shares) $ 18.09
Class Y (based on $58,646,588/2,789,247 shares) $ 21.03
MAXIMUM OFFERING PRICE PER SHARE:
Class A (based on $20.97 net assets value per share/100%-5.75%
maximum sales charge) $ 22.25
==============================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer International Equity Fund | Annual Report | 11/30/18
Statement of Operations
For the Year Ended 11/30/18
INVESTMENT INCOME:
Dividends from unaffiliated issuers (net of foreign taxes
withheld $534,572) $ 4,679,873
Interest from unaffiliated issuers 74,780
-------------------------------------------------------------------------------------------------------
Total investment income $ 4,754,653
-------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,406,007
Administrative expense 126,957
Transfer agent fees
Class A 126,113
Class C 15,085
Class Y 6,034
Distribution fees
Class A 198,496
Class C 103,357
Shareowner communications expense 65,890
Custodian fees 62,114
Registration fees 62,804
Professional fees 71,292
Printing expense 37,451
Pricing fees 10,443
Trustees' fees 7,583
Insurance expense 1,744
Miscellaneous 31,379
-------------------------------------------------------------------------------------------------------
Total expenses $ 2,332,749
Less fees waived and expenses reimbursed by the Adviser (426,851)
-------------------------------------------------------------------------------------------------------
Net expenses $ 1,905,898
-------------------------------------------------------------------------------------------------------
Net investment income $ 2,848,755
-------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ 8,673,584
Other assets and liabilities denominated in
foreign currencies (129,015) $ 8,544,569
-------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $(27,820,701)
Other assets and liabilities denominated in
foreign currencies (29,489) $(27,850,190)
-------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $(19,305,621)
-------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(16,456,866)
=======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/18 23
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------------
Year Ended Year Ended
11/30/18 11/30/17
------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 2,848,755 $ 2,073,584
Net realized gain (loss) on investments 8,544,569 9,093,578
Change in net unrealized appreciation (depreciation)
on investments (27,850,190) 30,172,757
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $(16,456,866) $ 41,339,919
------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Class A ($1.22 and $0.18 per share, respectively) $ (4,016,261) $ (590,165)*
Class C ($1.05 and $0.02 per share, respectively) (417,489) (9,746)*
Class Y ($1.31 and $0.25 per share, respectively) (4,194,410) (956,462)*
------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (8,628,160) $ (1,556,373)
------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 15,797,432 $ 14,943,635
Reinvestment of distributions 4,436,109 585,085
Cost of shares repurchased (43,439,034) (20,045,718)
------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from Fund
share transactions $ 23,205,493) $ (4,516,998)
------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(48,290,519) $ 35,266,548
NET ASSETS:**
Beginning of year $185,386,861 $150,120,313
------------------------------------------------------------------------------------------------------
End of year $137,096,342 $185,386,861
======================================================================================================
* For the year ended November 30, 2017, distributions to shareowners were
presented as net investment income.
** For the year ended November 30, 2017, undistributed net investment income
was $1,218,010.
The accompanying notes are an integral part of these financial statements.
24 Pioneer International Equity Fund | Annual Report | 11/30/18
-----------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
11/30/18 11/30/18 11/30/17 11/30/17
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------
Class A
Shares sold 481,533 $ 11,638,123 388,951 $ 8,695,271
Reinvestment of distributions 173,769 3,866,476 28,801 563,057
Less shares repurchased (490,609) (11,896,291) (538,698) (11,799,449)
-----------------------------------------------------------------------------------------------------
Net increase
(decrease) 164,693 $ 3,608,308 (120,946) $ (2,541,121)
=====================================================================================================
Class C
Shares sold 115,408 $ 2,453,775 129,706 $ 2,515,912
Reinvestment of distributions 21,632 416,502 534 9,173
Less shares repurchased (288,611) (5,985,316) (195,646) (3,722,718)
-----------------------------------------------------------------------------------------------------
Net decrease (151,571) $ (3,115,039) (65,406) $ (1,197,633)
=====================================================================================================
Class Y
Shares sold 69,769 $ 1,705,534 156,828 $ 3,732,452
Reinvestment of distributions 6,651 153,131 658 12,855
Less shares repurchased (1,064,516) (25,557,427) (197,857) (4,523,551)
-----------------------------------------------------------------------------------------------------
Net decrease (988,096) $(23,698,762) (40,371) $ (778,244)
=====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/18 25
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/18 11/30/17 11/30/16* 11/30/15* 11/30/14*
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 24.72 $ 19.45 $ 20.74 $ 22.34 $ 22.49
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.37(a) $ 0.24(a) $ 0.21(a) $ 0.16(a) $ 0.63
Net realized and unrealized gain (loss) on investments (2.90) 5.21 (1.17) (0.53) (0.28)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (2.53) $ 5.45 $ (0.96) $ (0.37) $ 0.35
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.45) $ (0.18) $ (0.33) $ (1.23) $ (0.50)
Net realized gain (0.77) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.22) $ (0.18) $ (0.33) $ (1.23) $ (0.50)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (3.75) $ 5.27 $ (1.29) $ (1.60) $ (0.15)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 20.97 $ 24.72 $ 19.45 $ 20.74 $ 22.34
====================================================================================================================================
Total return(b) (10.46)% 28.24% (4.70)% (1.69)% 1.55%
Ratio of net expenses to average net assets(c) 1.23% 1.38% 1.45% 1.45% 1.46%
Ratio of net investment income (loss) to average net assets 1.53% 1.09% 1.10% 0.73% 2.72%
Portfolio turnover rate 41% 36% 41% 49% 100%
Net assets, end of period (in thousands) $71,885 $80,688 $65,844 $77,173 $83,544
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets(c) 1.54% 1.59% 1.68% 1.71% 1.70%
Net investment income (loss) to average net assets 1.22% 0.88% 0.87% 0.47% 2.48%
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the periods presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.00% and 0.01%,
respectively.
The accompanying notes are an integral part of these financial statements.
26 Pioneer International Equity Fund | Annual Report | 11/30/18
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/18 11/30/17 11/30/16* 11/30/15* 11/30/14*
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 21.52 $ 16.95 $18.13 $ 19.69 $ 19.91
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.15(a) $ 0.04(a) $ 0.03(a) $ (0.04)(a) $ 0.35
Net realized and unrealized gain (loss) on investments (2.53) 4.55 (1.02) (0.46) (0.23)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (2.38) $ 4.59 $(0.99) $ (0.50) $ 0.12
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.28) $ (0.02) $(0.19) $ (1.06) $ (0.34)
Net realized gain (0.77) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.05) $ (0.02) $(0.19) $ (1.06) $ (0.34)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (3.43) $ 4.57 $(1.18) $ (1.56) $ (0.22)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.09 $ 21.52 $16.95 $ 18.13 $ 19.69
====================================================================================================================================
Total return(b) (11.22)% 27.09% (5.50)% (2.58)% 0.60%
Ratio of net expenses to average net assets(c) 2.09% 2.26% 2.35% 2.35% 2.36%
Ratio of net investment income (loss) to average net assets 0.73% 0.22% 0.20% (0.20)% 1.78%
Portfolio turnover rate 41% 36% 41% 49% 100%
Net assets, end of period (in thousands) $ 6,565 $11,072 $9,829 $11,981 $10,865
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets(c) 2.27% 2.32% 2.37% 2.42% 2.44%
Net investment income (loss) to average net assets 0.55% 0.16% 0.18% (0.27)% 1.70%
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the periods presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(c) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.00% and 0.01%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Annual Report | 11/30/18 27
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
11/30/18 11/30/17 11/30/16* 11/30/15* 11/30/14*
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 24.79 $ 19.50 $ 20.81 $ 22.41 $ 22.56
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.46(a) $ 0.33(a) $ 0.28(a) $ 0.25(a) $ 1.29
Net realized and unrealized gain (loss) on investments (2.91) 5.21 (1.17) (0.54) (0.85)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (2.45) $ 5.54 $ (0.89) $ (0.29) $ 0.44
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.54) $ (0.25) $ (0.42) $ (1.31) $ (0.59)
Net realized gain (0.77) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.31) $ (0.25) $ (0.42) $ (1.31) $ (0.59)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (3.76) $ 5.29 $ (1.31) $ (1.60) $ (0.15)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 21.03 $ 24.79 $ 19.50 $ 20.81 $ 22.41
====================================================================================================================================
Total return(b) (10.15)% 28.76% (4.34)% (1.29)% 1.94%
Ratio of net expenses to average net assets (c) 0.87% 0.99% 1.09% 1.04% 1.06%
Ratio of net investment income (loss) to average net assets 1.91% 1.48% 1.45% 1.16% 3.89%
Portfolio turnover rate 41% 36% 41% 49% 100%
Net assets, end of period (in thousands) $58,647 $93,627 $74,448 $84,957 $102,563
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets(c) 1.06% 1.06% 1.09% 1.04% 1.06%
Net investment income (loss) to average net assets 1.72% 1.41% 1.45% 1.16% 3.89%
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the periods presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
(c) Includes interest expense of 0.00%, 0.00%, 0.00%, 0.00% and 0.01%,
respectively.
The accompanying notes are an integral part of these financial statements.
28 Pioneer International Equity Fund | Annual Report | 11/30/18
Notes to Financial Statements | 11/30/18
1. Organization and Significant Accounting Policies
Pioneer International Equity Fund (the "Fund") is the sole portfolio comprising
Pioneer Series Trust VIII, a Delaware statutory trust. The Fund is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is long-term growth of
capital.
The Fund offers five classes of shares designated as Class A, Class C, Class K,
Class T and Class Y shares. Class K and Class T shares had not commenced
operations as of November 30, 2018. Each class of shares represents an interest
in the same portfolio of investments of the Fund and has identical rights
(based on relative net asset values) to assets and liquidation proceeds. Share
classes can bear different rates of class-specific fees and expenses such as
transfer agent and distribution fees. Differences in class-specific fees and
expenses will result in differences in net investment income and, therefore,
the payment of different dividends from net investment income earned by each
class. The Amended and Restated Declaration of Trust of the Fund gives the
Board of Trustees the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y shares.
Amundi Pioneer Asset Management, Inc., an indirect wholly owned subsidiary of
Amundi and Amundi's wholly owned subsidiary, Amundi USA, Inc., serves as the
Fund's investment adviser (the "Adviser"). Amundi Pioneer Distributor, Inc., an
affiliate of Amundi Pioneer Asset Management, Inc., serves as the Fund's
distributor (the "Distributor").
In August 2018, the Securities and Exchange Commission ("SEC") released a
Disclosure Update and Simplification Final Rule. The Final Rule amends
Regulation S-X disclosures requirements to conform them to U.S. Generally
Accepted Accounting Principles ("U.S. GAAP") for investment companies. The
Fund's financial statements were prepared in compliance with the new amendments
to Regulation S-X.
Pioneer International Equity Fund | Annual Report | 11/30/18 29
The Fund is an investment company and follows investment company accounting and
reporting guidance under (U.S. GAAP). U.S. GAAP requires the management of the
Fund to make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of income,
expenses and gain or loss on investments during the reporting period. Actual
results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the
New York Stock Exchange ("NYSE") is open, as of the close of regular
trading on the NYSE.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities
for which sale prices are not available, generally are valued using the
mean between the last bid and asked prices or, if both last bid and asked
prices are not available, at the last quoted bid price. Last sale and bid
and asked prices are provided by independent third party pricing services.
In the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party
pricing source. Trading in non-U.S. equity securities is substantially
completed each day at various times prior to the close of the NYSE. The
values of such securities used in computing the net asset value of the
Fund's shares are determined as of such times. The Fund may use a fair
value model developed by an independent pricing service to value non-U.S.
equity securities.
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent
30 Pioneer International Equity Fund | Annual Report | 11/30/18
third party pricing service. When independent third party pricing services
are unable to supply prices, or when prices or market quotations are
considered to be unreliable, the value of that security may be determined
using quotations from one or more broker-dealers.
Securities for which independent pricing services or broker-dealers are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of the Adviser pursuant
to procedures adopted by the Fund's Board of Trustees. The Adviser's fair
valuation team uses fair value methods approved by the Valuation Committee
of the Board of Trustees. The Adviser's fair valuation team is responsible
for monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after
the close of the exchange or market on which the security trades and prior
to the determination of the Fund's net asset value. Examples of a
significant event might include political or economic news, corporate
restructurings, natural disasters, terrorist activity or trading halts.
Thus, the valuation of the Fund's securities may differ significantly from
exchange prices, and such differences could be material.
At November 30, 2018, no securities were valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance industry pricing
model).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country
rates and net of income accrued on defaulted securities.
Pioneer International Equity Fund | Annual Report | 11/30/18 31
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on
foreign currency contracts, disposition of foreign currencies and the
difference between the amount of income accrued and the U.S. dollars
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated on the Statement of
Operations from the effects of changes in the market prices of those
securities, but are included with the net realized and unrealized gain or
loss on investments.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income and net realized capital gains,
if any, to its shareowners. Therefore, no provision for federal income
taxes is required. As of November 30, 2018, the Fund did not accrue any
interest or penalties with respect to uncertain tax positions, which, if
applicable, would be recorded as an income tax expense on the Statement of
Operations. Tax returns filed within the prior three years remain subject
to examination by federal and state tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions for
financial statement purposes resulting from differences in the recognition
or classification of income or distributions for financial statement and
tax purposes. Capital accounts within the financial statements are
adjusted for permanent book/tax differences to reflect tax character, but
are not adjusted for temporary differences.
32 Pioneer International Equity Fund | Annual Report | 11/30/18
At November 30, 2018, the Fund reclassified $2,879 to decrease
distributable earnings and $2,879 to increase paid-in capital to reflect
permanent book/tax differences. These adjustments have no impact on net
assets or the results of operations.
During the year ended November 30, 2018, a capital loss carryforward of
$2,063,325 was utilized to offset net realized gains by the fund.
The tax character of distributions paid during the years ended November
30, 2018, and November 30, 2017, were as follows:
--------------------------------------------------------------------------------
2018 2017
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $3,640,894 $1,556,373
Long-term capital gain 4,987,266 --
--------------------------------------------------------------------------------
Total $8,628,160 $1,556,373
================================================================================
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2018:
--------------------------------------------------------------------------------
2018
--------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $3,038,719
Undistributed long-term capital gain 401,862
Net unrealized appreciation 3,841,606
--------------------------------------------------------------------------------
Total $7,282,187
================================================================================
The difference between book-basis and tax-basis net unrealized
appreciation is attributable to the tax deferral of losses on wash sales
and adjustments relating to Passive Foreign Investment Companies
("PFICs").
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $0 in underwriting commissions on the sale of Class A
shares during the year ended November 30, 2018.
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset
value attributable to Class A and Class C shares of the Fund, respectively
(see Note 4). Class Y shares do not pay distribution fees. All expenses
and fees paid to the Fund's transfer agent for its services are allocated
among the classes of shares based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expenses (see Note 3).
Pioneer International Equity Fund | Annual Report | 11/30/18 33
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
G. Risks
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real
or perceived adverse economic, political or regulatory conditions,
inflation, changes in interest rates, lack of liquidity in the bond
markets or adverse investor sentiment. In the past several years,
financial markets have experienced increased volatility, depressed
valuations, decreased liquidity and heightened uncertainty. These
conditions may continue, recur, worsen or spread.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or
other risks affecting those industries and sectors. Investing in non-U.S.
issuers, or in U.S. issuers that have significant exposure to foreign
markets, may involve unique risks compared to investing in securities of
U.S. issuers. These risks are more pronounced for issuers in emerging
markets or to the extent that the Fund invests significantly in one region
or country. These risks may include different financial reporting
practices and regulatory standards, less liquid trading markets, extreme
price volatility, currency risks, changes in economic, political,
regulatory and social conditions, terrorism, sustained economic downturns,
financial instability, tax burdens, and investment and repatriation
restrictions. Lack of information and less market regulation also may
affect the value of these securities. Withholding and other non-U.S. taxes
may decrease the Fund's return. Non-U.S. issuers may be located in parts
of the world that have historically been prone to natural disasters.
Investing in depositary receipts is subject to many of the same risks as
investing directly in non-U.S. issuers. Depositary receipts may involve
higher expenses and may trade at a discount (or premium) to the underlying
security. A number of countries in the European Union (EU) have
experienced, and may continue to experience, severe economic and financial
difficulties. In addition, voters in the United Kingdom have approved
withdrawal from the EU. Other countries may seek to withdraw from the EU
and/or abandon the euro, the common currency of the EU. The Fund may
invest a substantial amount of its assets in issuers located in a limited
number of countries and therefore is susceptible to adverse economic,
political or regulatory developments affecting those countries.
34 Pioneer International Equity Fund | Annual Report | 11/30/18
With the increased use of technologies such as the Internet to conduct
business, the Fund is susceptible to operational, information security and
related risks. While the Fund's Adviser has established business
continuity plans in the event of, and risk management systems to prevent,
limit or mitigate, such cyber-attacks, there are inherent limitations in
such plans and systems including the possibility that certain risks have
not been identified. Furthermore, the Fund cannot control the
cybersecurity plans and systems put in place by service providers to the
Fund such as Brown Brothers Harriman & Co., the Fund's custodian and
accounting agent, and DST Asset Manager Solutions, Inc., the Fund's
transfer agent. In addition, many beneficial owners of Fund shares hold
them through accounts at broker-dealers, retirement platforms and other
financial market participants over which neither the Fund nor Amundi
Pioneer exercises control. Each of these may in turn rely on service
providers to them, which are also subject to the risk of cyber-attacks.
Cybersecurity failures or breaches at Amundi Pioneer or the Fund's service
providers or intermediaries have the ability to cause disruptions and
impact business operations, potentially resulting in financial losses,
interference with the Fund's ability to calculate its net asset value,
impediments to trading, the inability of Fund shareowners to effect share
purchases, redemptions or exchanges or receive distributions, loss of or
unauthorized access to private shareowners information and violations of
applicable privacy and other laws, regulatory fines, penalties,
reputational damage, or additional compliance costs. Such costs and losses
may not be covered under any insurance. In addition, maintaining vigilance
against cyber-attacks may involve substantial costs over time, and system
enhancements may themselves be subject to cyber-attacks.
The Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
2. Management Agreement
The Adviser manages the Fund's portfolio. Effective October 1, 2018, management
fees are calculated daily at the annual rate of 0.65% of the Fund's average
daily net assets up to $1 billion and 0.60% of the Fund's average net assets
over $1 billion. The fee is accrued daily and paid monthly. Prior to October 1,
2018, management fees were calculated daily at the annual rate of 0.85% of the
Fund's average daily net assets up to $500 million and 0.75% on assets over
$500 million. For the year ended November 30, 2018, the effective management
fee (excluding waivers and/or assumptions of expenses) was equivalent to 0.82%
of the Fund's average daily net assets.
Pioneer International Equity Fund | Annual Report | 11/30/18 35
Effective October 1, 2018, the Adviser has contractually agreed to limit
ordinary operating expenses (ordinary operating expenses means all fund
expenses other than extraordinary expenses, such as litigation, taxes,
brokerage commissions and acquired fund fees and expenses) to the extent
required to reduce Fund expenses to 1.15%, 2.15% and 0.70%, of the average
daily net assets attributable to Class A, Class C and Class Y shares,
respectively. Prior to October 1, 2018, the Adviser contractually agreed to
limit ordinary operating expenses to 1.25%, 2.15% and 0.90%, of the average
daily net assets attributable to Class A, Class C and Class Y shares,
respectively. Fees waived and expenses reimbursed during the year ended
November 30, 2018, are reflected on the Statement of Operations. These expense
limitations will be in effect through April 1, 2020. There can be no assurance
that the Adviser will extend the expense limitation agreement for a class of
shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$84,799 in management fees, administrative costs and certain other
reimbursements payable to the Adviser at November 30, 2018.
3. Transfer Agent
DST Asset Manager Solutions, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings, and outgoing phone calls. For the year
ended November 30, 2018, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------------
Shareowner Communications:
--------------------------------------------------------------------------------
Class A $58,911
Class C 6,979
--------------------------------------------------------------------------------
Total $65,890
================================================================================
36 Pioneer International Equity Fund | Annual Report | 11/30/18
4. Distribution Plan and Service Plans
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays the Distributor 0.25% of the
average daily net assets attributable to Class A shares as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class A shares. Pursuant to the Plan, the Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class C shares.
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $2,009 in distribution fees payable to the Distributor at
November 30, 2018.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (the "CDSC"). A CDSC of 1.00% may
be imposed on redemptions of certain net asset value purchases of Class A
shares within 12 months of purchase. Redemptions of Class C shares within
12 months of purchase are subject to a CDSC of 1.00%, based on the lower of
cost or market value of shares being redeemed. Shares purchased as part of an
exchange remain subject to any CDSC that applied to the original purchase of
those shares. There is no CDSC for Class Y shares. Proceeds from the CDSCs are
paid to the Distributor. For the year ended November 30, 2018, there were no
CDSCs paid to the distributor.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
"Funds"), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
Fund participates in a credit facility that is in the amount of $25 million.
Under such facility, depending on the type of loan, interest on borrowings is
payable at the London Interbank Offered Rate ("LIBOR") plus 0.90% on an
annualized basis, or the Alternate Base Rate, which is the greater of (a) the
facility's administrative agent's daily announced prime rate on the borrowing
date, (b) 2% plus the Federal Funds Rate on the borrowing date or (c) 2% plus
the overnight Eurodollar rate on the borrowing date. The Funds pay an annual
commitment fee to participate in a credit facility. The commitment fee is
allocated among participating Funds based on an allocation schedule set forth
in the credit agreement. For the year ended November 30, 2018, the Fund had no
borrowings under the credit facility.
Pioneer International Equity Fund | Annual Report | 11/30/18 37
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareholders of
Pioneer Series Trust VIII and the Shareholders of Pioneer International Equity
Fund:
--------------------------------------------------------------------------------
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer International Equity Fund (the "Fund")
(one of the funds constituting Pioneer Series Trust VIII (the "Trust")) as of
November 30, 2018, and the related statements of operations, changes in net
assets and the financial highlights for the year then ended and the related
notes, and the statement of changes in net assets and financial highlights for
the year ended November 30, 2017 (collectively referred to as the "financial
statements"). The financial highlights for periods ended November 30, 2014,
November 30, 2015 and November 30, 2016 were audited by another independent
registered public accounting firm whose report, dated January 25, 2017,
expressed an unqualified opinion on those financial highlights. In our opinion,
the financial statements present fairly, in all material respects, the
financial position of the Fund at November 30, 2018, the results of its
operations, the changes in its net assets, and the financial highlights for the
year ended, and the statement of changes in net assets and financial highlights
for the year ended November 30, 2017, in conformity with U.S. generally
accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the Fund's financial statements
based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required
to be independent with respect to the Fund in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Fund is not required to have,
nor were we engaged to perform, an audit of the Fund's internal control over
financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting, but not for the
purpose of expressing an opinion on the effectiveness of the Fund's internal
control over financial reporting. Accordingly, we express no such opinion.
38 Pioneer International Equity Fund | Annual Report | 11/30/18
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of November 30, 2018, by correspondence with the custodian and
brokers. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the Fund's auditor since 2017.
Boston, Massachusetts
January 28, 2019
Pioneer International Equity Fund | Annual Report | 11/30/18 39
ADDITIONAL INFORMATION
For the fiscal year ending November 30, 2018, the Fund has elected to pass
through foreign tax credits to shareowners. The amount of the Fund's gross
foreign source income and foreign taxes paid during the year was $5,189,601 and
$446,370, respectively.
For the year ended November 30, 2018, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth
Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate
up to the maximum amount of such dividends allowable under the Act, as taxed at
a maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2018 form 1099-DIV.
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Fund's investment adviser, was an indirect, wholly owned subsidiary of
UniCredit S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of
its Pioneer Investments business, which includes the Adviser, to Amundi (the
"Transaction"). As a result of the Transaction, the Adviser became an indirect,
wholly owned subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A.
Amundi is headquartered in Paris, France, and, as of September 30, 2016, had
more than $1.1 trillion in assets under management worldwide. Deloitte & Touche
LLP ("D&T"), the Fund's previous independent registered public accounting firm,
informed the Audit Committee and the Board that it would no longer be
independent with respect to the Fund upon the completion of the Transaction as
a result of certain services being provided to Amundi and Credit Agricole, and,
accordingly, that it intended to resign as the Fund's independent registered
public accounting firm upon the completion of the Transaction. D&T's
resignation was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
years, D&T's reports on the Fund's financial statements have not contained an
adverse opinion or disclaimer of opinion and have not been qualified or
modified as to uncertainty, audit scope or accounting principles. Further,
there have been no disagreements with D&T on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure, which, if not resolved to the satisfaction of D&T, would have caused
D&T to make reference to the subject matter of the disagreement in connection
with its report on the financial statements. In addition, there have been no
reportable events of the kind described in Item 304(a)(1)(v) of Regulation S-K
under the Securities Exchange Act of 1934.
40 Pioneer International Equity Fund | Annual Report | 11/30/18
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
an independent registered public accounting firm, Ernst & Young LLP ("EY").
Prior to its engagement, EY had advised the Fund's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be inconsistent with
the auditor independence rules set forth by the Securities and Exchange
Commission ("SEC"): (a) project management support services to UniCredit in the
Czech Republic, Germany, Italy, Serbia and Slovenia in relation to twenty-two
projects, that were determined to be inconsistent with Rule 2-01(c)(4)(vi) of
Regulation S-X (management functions); (b) two engagements for UniCredit in
Italy where fees were contingent/success based and that were determined to be
inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent fees); (c) four
engagements where legal and expert services were provided to UniCredit in the
Czech Republic and Germany, and twenty engagements where the legal advisory
services were provided to UniCredit in Austria, Czech Republic, Italy and
Poland, that were determined to be inconsistent with Rule 2-01(c)(4)(ix) and
(x) of Regulation S-X (legal and expert services); and (d) two engagements for
UniCredit in Italy involving assistance in the sale of certain assets, that
were determined to be inconsistent with Rule 2-01(c)(4)(viii) of Regulation S-X
(broker-dealer, investment adviser or investment banking services). None of the
foregoing services involved the Fund, any of the other Funds in the Pioneer
Family of Funds or any other Pioneer entity sold by UniCredit in the
Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Fund under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
Pioneer International Equity Fund | Annual Report | 11/30/18 41
Approval of Investment Management Agreement
Amundi Pioneer Asset Management, Inc. ("APAM") serves as the investment adviser
to Pioneer International Equity Fund (the "Fund") pursuant to an investment
management agreement between APAM and the Fund. In order for APAM to remain the
investment adviser of the Fund, the Trustees of the Fund must determine
annually whether to renew the investment management agreement for the Fund.
The contract review process began in January 2018 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the
process. Contract review materials were provided to the Trustees in March 2018,
July 2018 and September 2018. In addition, the Trustees reviewed and discussed
the Fund's performance at regularly scheduled meetings throughout the year, and
took into account other information related to the Fund provided to the
Trustees at regularly scheduled meetings, in connection with the review of the
Fund's investment management agreement.
In March 2018, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment management agreement, and reviewed and
discussed the qualifications of the investment management teams for the Fund,
as well as the level of investment by the Fund's portfolio managers in the
Fund. In July 2018, the Trustees, among other things, reviewed the Fund's
management fees and total expense ratios, the financial statements of APAM and
its parent companies, profitability analyses provided by APAM, and analyses
from APAM as to possible economies of scale. The Trustees also reviewed the
profitability of the institutional business of APAM and APAM's affiliate,
Amundi Pioneer Institutional Asset Management, Inc. ("APIAM" and, together with
APAM, "Amundi Pioneer"), as compared to that of APAM's fund management
business, and considered the differences between the fees and expenses of the
Fund and the fees and expenses of APAM's and APIAM's institutional accounts, as
well as the different services provided by APAM to the Fund and by APAM and
APIAM to the institutional accounts. The Trustees further considered contract
review materials, including additional materials received in response to the
Trustees' request, in September 2018.
At a meeting held on September 18, 2018, based on their evaluation of the
information provided by APAM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment management agreement for another year. In
42 Pioneer International Equity Fund | Annual Report | 11/30/18
approving the renewal of the investment management agreement, the Trustees
considered various factors that they determined were relevant, including the
factors described below. The Trustees did not identify any single factor as the
controlling factor in determining to approve the renewal of the agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by APAM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed APAM's investment approach
for the Fund and its research process. The Trustees considered the resources of
APAM and the personnel of APAM who provide investment management services to
the Fund. They also reviewed the amount of non-Fund assets managed by the
portfolio managers of the Fund. They considered the non-investment resources
and personnel of APAM that are involved in APAM's services to the Fund,
including APAM's compliance, risk management, and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by APAM's senior management to the Pioneer Fund complex.
The Trustees considered that APAM supervises and monitors the performance of
the Fund's service providers and provides the Fund with personnel (including
Fund officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
APAM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to APAM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by APAM to the Fund were
satisfactory and consistent with the terms of the investment management
agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and
discuss throughout the year data prepared by APAM and information comparing the
Fund's performance with the performance of its peer group of funds, as
classified by Morningstar, Inc. (Morningstar), and the performance of the
Fund's benchmark index. They also discuss the Fund's performance with APAM on a
regular basis. The Trustees' regular reviews and discussions were factored into
the Trustees' deliberations concerning the renewal of the investment management
agreement.
Pioneer International Equity Fund | Annual Report | 11/30/18 43
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund
in comparison to the management fees of its peer group of funds as classified
by Morningstar and also to the expense ratios of a peer group of funds selected
on the basis of criteria determined by the Independent Trustees for this
purpose using data provided by Strategic Insight Mutual Fund Research and
Consulting, LLC (Strategic Insight), an independent third party. The peer group
comparisons referred to below are organized in quintiles. Each quintile
represents one-fifth of the peer group. In all peer group comparisons referred
to below, first quintile is most favorable to the Fund's shareowners. The
Trustees noted that they separately review and consider the impact of the
Fund's transfer agency and Fund- and APAM-paid expenses for sub-transfer agency
and intermediary arrangements, and that the results of the most recent such
review were considered in the consideration of the Fund's expense ratio.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the fourth quintile relative to the management fees paid by
other funds in its Morningstar category for the comparable period. The Trustees
considered a reduction in the Fund's management fee that would be effective
October 1, 2018. The Trustees considered that the expense ratio of the Fund's
Class A shares for the most recent fiscal year was in the third quintile
relative to its Strategic Insight peer group for the comparable period. The
Trustees considered that the expense ratio of the Fund's Class Y shares for the
most recent fiscal year was in the third quintile relative to its Strategic
Insight peer group for the comparable period. The Trustees noted that APAM had
agreed to waive fees and/or reimburse expenses in order to limit the ordinary
operating expenses of the Fund. The Trustees considered additional expense
waiver arrangements that would be effective October 1, 2018.
The Trustees reviewed management fees charged by APAM and APIAM to
institutional and other clients, including publicly offered European funds
sponsored by APAM's affiliates, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered APAM's costs in providing
services to the Fund and APAM's and APIAM's costs in providing services to the
other clients and considered the differences in management fees and profit
margins for fund and non-fund services. In evaluating the fees associated with
APAM's and APIAM's client accounts, the Trustees took into account the
respective demands, resources and complexity associated with the Fund and other
client accounts. The Trustees noted that, in some instances, the fee rates for
those clients were lower than the management fee for the Fund and
44 Pioneer International Equity Fund | Annual Report | 11/30/18
considered that, under the investment management agreement with the Fund, APAM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the entrepreneurial risks associated with APAM's management of
the Fund.
The Trustees concluded that the management fee payable by the Fund to APAM was
reasonable in relation to the nature and quality of the services provided by
APAM.
Profitability
The Trustees considered information provided by APAM regarding the
profitability of APAM with respect to the advisory services provided by APAM to
the Fund, including the methodology used by APAM in allocating certain of its
costs to the management of the Fund. The Trustees also considered APAM's profit
margin in connection with the overall operation of the Fund. They further
reviewed the financial results, including the profit margins, realized by APAM
and APIAM from non-fund businesses. The Trustees considered APAM's profit
margins in comparison to the limited industry data available and noted that the
profitability of any adviser was affected by numerous factors, including its
organizational structure and method for allocating expenses. The Trustees
concluded that APAM's profitability with respect to the management of the Fund
was not unreasonable.
Economies of Scale
The Trustees considered APAM's views relating to economies of scale in
connection with the Pioneer Funds as fund assets grow and the extent to which
any such economies of scale are shared with the Fund and Fund shareholders. The
Trustees recognize that economies of scale are difficult to identify and
quantify, and that, among other factors that may be relevant, are the
following: fee levels, expense subsidization, investment by APAM in research
and analytical capabilities and APAM's commitment and resource allocation to
the Fund. The Trustees noted that profitability also may be an indicator of the
availability of any economies of scale, although profitability may vary for
other reasons including due to reductions in expenses. The Trustees concluded
that economies of scale, if any, were being appropriately shared with the
Fund.
Pioneer International Equity Fund | Annual Report | 11/30/18 45
Other Benefits
The Trustees considered the other benefits that APAM enjoys from its
relationship with the Fund. The Trustees considered the character and amount of
fees paid or to be paid by the Fund, other than under the investment management
agreement, for services provided by APAM and its affiliates. The Trustees
further considered the revenues and profitability of APAM's businesses other
than the Fund business. To the extent applicable, the Trustees also considered
the benefits to the Fund and to APAM and its affiliates from the use of "soft"
commission dollars generated by the Fund to pay for research and brokerage
services.
The Trustees considered that Amundi Pioneer is the principal U.S. asset
management business of Amundi, which is one of the largest asset managers
globally. Amundi's worldwide asset management business manages over $1.7
trillion in assets (including the Pioneer Funds). The Trustees considered
that APAM's relationship with Amundi creates potential opportunities for APAM,
APIAM and Amundi that derive from APAM's relationships with the Fund, including
Amundi's ability to market the services of APAM globally. The Trustees noted
that APAM has access to additional research and portfolio management
capabilities as a result of its relationship with Amundi and Amundi's enhanced
global presence that may contribute to an increase in the resources available
to APAM. The Trustees considered that APAM and the Fund receive reciprocal
intangible benefits from the relationship, including mutual brand recognition
and, for the Fund, direct and indirect access to the resources of a large
global asset manager. The Trustees concluded that any such benefits received by
APAM as a result of its relationship with the Fund were reasonable.
Conclusion
After consideration of the factors described above as well as other factors,
the Trustees, including the Independent Trustees, concluded that the investment
management agreement for the Fund, including the fees payable thereunder, was
fair and reasonable and voted to approve the proposed renewal of the investment
management agreement.
46 Pioneer International Equity Fund | Annual Report | 11/30/18
Trustees, Officers and Service Providers
Investment Adviser
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
DST Asset Manager Solutions, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.amundipioneer.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their
principal occupations and other directorships they have held during at least
the past five years. Trustees who are interested persons of the Fund within the
meaning of the 1940 Act are referred to as Interested Trustees. Trustees who
are not interested persons of the Fund are referred to as Independent Trustees.
Each of the Trustees serves as a Trustee of each of the 43 U.S. registered
investment portfolios for which Amundi Pioneer serves as investment adviser
(the "Pioneer Funds"). The address for all Trustees and all officers of the
Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer International Equity Fund | Annual Report | 11/30/18 47
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (68) Trustee since 2006. Private investor (2004 - 2008 and 2013 - present); Director, Broadridge Financial
Chairman of the Board Serves until a Chairman (2008 - 2013) and Chief
Executive Solutions, Inc. (investor
and Trustee successor trustee Officer (2008 - 2012), Quadriserv, Inc. communications and securities
is elected or (technology products for securities lending processing provider for
earlier retirement industry); and Senior Executive Vice President, financial services industry)
or removal. The Bank of New York (financial and securities (2009 - present); Director,
services) (1986 - 2004) Quadriserv, Inc. (2005 -
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - 2015)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (74) Trustee since 2005. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - 2004 Trust (publicly-traded
successor trustee and 2008 - present); Interim Chief Executive mortgage REIT) 2004 - 2009,
is elected or Officer, Oxford Analytica, Inc. (privately held 2012 - present); Director
earlier retirement research and consulting company) (2010); Executive (of The Swiss Helvetia Fund,
or removal. Vice President and Chief Financial Officer, Inc. (closed-end fund) (2010 -
I-trax, Inc. (publicly traded health care services 2017); Director of Oxford
company) (2004 - 2007); and Executive Vice Analytica, Inc. (2008 - 2015);
President and Chief Financial Officer, Pedestal and Director of Enterprise
Inc. (internet-based mortgage trading company) Community Investment, Inc.
(2000 - 2002); Private Consultant (1995 - 1997); (privately-held affordable
Managing Director, Lehman Brothers (1992 - 1995); housing finance company)
and Executive, The World Bank (1979 - 1992) (1985 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (74) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee Mellon Institutional Funds
is elected or Master Portfolio (oversaw 17
earlier retirement portfolios in fund complex)
or removal. (1989 - 2008)
------------------------------------------------------------------------------------------------------------------------------------
48 Pioneer International Equity Fund | Annual Report | 11/30/18
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (71) Trustee since 1992. Founding Director, Vice-President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee firm) (1982 - present); Desautels Faculty of
is elected or Management, McGill University (1999 - 2017);
earlier retirement and Manager of Research Operations and
or removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (62) Trustee since 2017. (Advisory Chief Investment Officer, 1199 SEIU None
Trustee Trustee from 2014 - Funds (healthcare workers union pension funds)
2017) Serves until a (2001 - present); Vice President - International
successor trustee is Investments Group, American International Group,
elected or earlier Inc. (insurance company) (1993 - 2001); Vice
retirement or President - Corporate Finance and Treasury Group,
removal. Citibank, N.A. (1980 - 1986 and 1990 - 1993); Vice
President - Asset/Liability Management Group,
Federal Farm Funding Corporation (government-
sponsored issuer of debt securities) (1988 -
1990); Mortgage Strategies Group, Shearson Lehman
Hutton, Inc. (investment bank) (1987 - 1988); and
Mortgage Strategies Group, Drexel Burnham Lambert,
Ltd. (investment bank) (1986 - 1987)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (70) Trustee since 1992. President and Chief Executive Officer, Newbury Director of New America High
Trustee Serves until a Piret Company (investment banking firm) (1981 - Income Fund, Inc. (closed-end
successor trustee present) investment company) (2004 -
is elected or present); and Member, Board
earlier retirement of Governors, Investment
or removal. Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (71) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee (financial and investment company services)
is elected or (1969 - 2012); Director, BNY International
earlier retirement Financing Corp. (financial services) (2002 -
or removal. 2012); and Director, Mellon Overseas Investment
Corp. (financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer International Equity Fund | Annual Report | 11/30/18 49
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (56)* Trustee since 2017. Director, CEO and President of Amundi Pioneer None
Trustee, President and Serves until a Asset Management USA, Inc. (since September 2014);
Chief Executive Officer successor trustee Director, CEO and President of Amundi Pioneer
is elected or Asset Management, Inc. (since September 2014);
earlier retirement Director, CEO and President of Amundi Pioneer
or removal Distributor, Inc. (since September 2014);
Director, CEO and President of Amundi Pioneer
Institutional Asset Management, Inc. (since
September 2014); Chair, Amundi Pioneer Asset
Management USA, Inc., Amundi Pioneer Distributor,
Inc. and Amundi Pioneer Institutional Asset
Management, Inc. (September 2014 - 2018); Managing
Director, Morgan Stanley Investment Management
(2010 - 2013); and Director of Institutional
Business, CEO of International, Eaton Vance
Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (60)* Trustee since 2014. Director and Executive Vice President (since 2008) None
Trustee Serves until a and Chief Investment Officer, U.S. (since 2010) of
successor trustee Amundi Pioneer Asset Management USA, Inc.;
is elected or Executive Vice President and Chief Investment
earlier retirement Officer, U.S. of Amundi Pioneer (since 2008);
or removal Executive Vice President of Amundi Pioneer
Institutional Asset Management, Inc. (since 2009);
and Portfolio Manager of Amundi Pioneer
(since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Ms. Jones and Mr. Taubes are Interested Trustees because they are officers or
directors of the Fund's investment adviser and certain of its affiliates.
50 Pioneer International Equity Fund | Annual Report | 11/30/18
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (53) Since 2003. Serves Vice President and Associate General Counsel of None
Secretary and Chief at the discretion Amundi Pioneer since January 2008; Secretary and
Legal Officer of the Board Chief Legal Officer of all of the Pioneer Funds
since June 2010; Assistant Secretary of all of the
Pioneer Funds from September 2003 to May 2010; and
Vice President and Senior Counsel of Amundi
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (57) Since 2010. Serves Fund Governance Director of Amundi Pioneer since None
Assistant Secretary at the discretion December 2006 and Assistant Secretary of all the
of the Board Pioneer Funds since June 2010; Manager - Fund
Governance of Amundi Pioneer from December 2003
to November 2006; and Senior Paralegal of Amundi
Pioneer from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (56) Since 2010. Serves Senior Counsel of Amundi Pioneer since May 2013 None
Assistant Secretary at the discretion and Assistant Secretary of all the Pioneer Funds
of the Board since June 2010; and Counsel of Amundi Pioneer
from June 2007 to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (59) Since 2008. Serves Vice President - Fund Treasury of Amundi Pioneer; None
Treasurer and Chief at the discretion Treasurer of all of the Pioneer Funds since March
Financial and of the Board 2008; Deputy Treasurer of Amundi Pioneer from
Accounting Officer March 2004 to February 2008; and Assistant
Treasurer of all of the Pioneer Funds from
March 2004 to February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (53) Since 2000. Serves Director - Fund Treasury of Amundi Pioneer; and None
Assistant Treasurer at the discretion Assistant Treasurer of all of the Pioneer Funds
of the Board
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (60) Since 2002. Serves Senior Manager - Fund Treasury of Amundi Pioneer; None
Assistant Treasurer at the discretion and Assistant Treasurer of all of the Pioneer
of the Board Funds
------------------------------------------------------------------------------------------------------------------------------------
Pioneer International Equity Fund | Annual Report | 11/30/18 51
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Position Term of Office and Other Directorships
Held With the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (39) Since 2009. Serves Senior Manager - Fund Treasury of Amundi Pioneer None
Assistant Treasurer at the discretion since November 2008; Assistant Treasurer of all of
of the Board the Pioneer Funds since January 2009; and Client
Service Manager - Institutional Investor Services
at State Street Bank from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
John Malone (48) Since 2018. Serves Managing Director, Chief Compliance Officer of None
Chief Compliance Officer at the discretion Amundi Pioneer Asset Management; Amundi Pioneer
of the Board Institutional Asset Management, Inc.; and the
Pioneer Funds since September 2018; and Chief
Compliance Officer of Amundi Pioneer Distributor,
Inc. since January 2014.
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (47) Since 2006. Serves Vice President - Investor Services Group of Amundi None
Anti-Money Laundering at the discretion Pioneer and Anti-Money Laundering Officer of all
Officer of the Board the Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer International Equity Fund | Annual Report | 11/30/18
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFoneSM for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at https://www.sec.gov.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
[C] 2019 Amundi Pioneer Asset Management 19448-12-0119
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Mr. David R. Bock, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit fees for the Trust were $25,000
payable to Ernst & Young LLP for the year end November 30, 2018
and $25,000 payable for the year ended November 30, 2017.
(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.
There were no audit-related services in 2018 or 2017.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
The tax fees for the Trust were $8,028
payable to Ernst & Young LLP for the year ended
November 30, 2018 and $8,028
for the year ended November 30, 2017.
(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.
There were no other fees in 2018 or 2017.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Amudi Pioneer Asset Management, Inc, the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Trust's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Trust. For the
years ended November 30 2018 and 2017, there were no
services provided to an affiliate that required the
Trust's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Trust were $8,028
payable to Ernst & Young LLP for the year ended
November 30, 2018 and $8,028 for the year ended
November 30, 2017.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies.
(a) If the registrant is a closed-end management investment company,
provide the following dollar amounts of income and compensation related
to the securities lending activities of the registrant during its most
recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities
lending activities and related services: any share of revenue generated
by the securities lending program paid to the securities lending agent(s)
(revenue split); fees paid for cash collateral management services
(including fees deducted from a pooled cash collateral reinvestment
vehicle) that are not included in the revenue split; administrative
fees that are not included in the revenue split; fees for
indemnification that are not included in the revenue split; rebates
paid to borrowers; and any other fees relating to the securities lending
program that are not included in the revenue split, including a description
of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in
paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee
is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe
the services provided to the registrant by the securities lending agent in
the registrants most recent fiscal year.
N/A
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust VIII
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 30, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date January 30, 2019
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date January 30, 2019
* Print the name and title of each signing officer under his or her signature.