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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 811-10111
Pioneer Europe Select Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: August 31
Date of reporting period: September 1, 2004 through February 28, 2005
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
PIONEER
-----------------------
EUROPE
SELECT
FUND
Semiannual
Report
2/28/05
[LOGO] PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 1
Portfolio Summary 2
Performance Update 3
Comparing Ongoing Fund Expenses 6
Portfolio Management Discussion 8
Schedule of Investments 11
Financial Statements 15
Notes to Financial Statements 22
Trustees, Officers and Service Providers 28
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
LETTER TO SHAREOWNERS 2/28/05
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Dear Shareowner,
- --------------------------------------------------------------------------------
After three calendar quarters of listless performance, U.S. equity markets
improved strongly late in the year. Anxiety over energy prices, international
tensions and the falling American dollar had held the markets back, but
uneasiness about the presidential election was the principal source of investor
hesitation. The election went smoothly, the result was decisive, and the
ensuing rally pushed major indices into the black for the second year running.
However, returns trailed 2003's levels. Small capitalization companies
outperformed large-cap issues for the sixth consecutive year. Markets overseas
were generally buoyant: commodity-rich nations saw surging demand for copper,
iron ore, lumber and other materials, with much of their output destined to
feed China's vast economic appetite.
Bond investors focused on longer-term issues. Reflecting the risk preference
that favored small-cap stocks, high-yield bonds were the strongest performers,
while higher quality issues, including U.S. Treasury issues, scored more modest
gains. Municipal bond returns were generally favorable as well; economic growth
spurred rising tax revenues, putting many issuers into surplus for the first
time in years.
A measured pace of growth seems in store for the U.S. economy, which generated
2.2 million jobs after years of employment declines. By the end of September,
the economy had tallied 12 positive quarters, and the nation's annualized
growth rate stood at a respectable four percent. We believe this rate of
expansion is enough to sustain growth without provoking the Federal Reserve
Board into aggressive interest rate hikes aimed at calming inflation.
New investment choices
Pioneer Investment Management recently acquired twenty-two former Safeco mutual
funds. After merging some Safeco offerings into existing Pioneer funds with
similar goals and strategies, Pioneer now offers seven new products, including
municipal bond funds and funds focused on growth. The transaction underscores
Pioneer's growing presence in the ranks of major U.S. management firms and
significantly broadens the investment options available to you. A conversation
with your investment professional will help you understand how these new funds
may enhance your portfolio diversification and fit in with your long-range
goals.
Please consider a fund's investment objective, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about each fund and should be read carefully before you invest or send money.
To obtain a prospectus and for other information on any Pioneer fund, contact
your financial advisor, call 1-800-225-6292 or visit our web site at
www.pioneerfunds.com.
Respectfully,
/s/ Osbert M. Hood
Osbert M. Hood
President
Pioneer Investment Management, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
1
Pioneer Europe Select Fund
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PORTFOLIO SUMMARY 2/28/05
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Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[The following table was depicted as a pie chart in the printed material.]
Financials 25.5%
Consumer Discretionary 14.1%
Industrials 12.8%
Materials 12.7%
Energy 12.1%
Telecommunication Services 9.0%
Health Care 8.6%
Consumer Staples 5.2%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[The following table was depicted as a bar chart in the printed material.]
United Kingdom 32.3%
France 28.1%
Germany 13.4%
Ireland 6.6%
Spain 5.6%
Switzerland 4.5%
Italy 4.3%
Netherlands 3.5%
Belgium 1.7%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. BP Amoco Plc 5.27%
2. Vodafone Group Plc 5.01
3. UBS AG 4.53
4. BNP Paribas SA 4.40
5. Eni S.p.A 4.32
6. Royal Bank of Scotland Group Plc 4.22
7. GlaxoSmithKline Plc 3.73
8. Barclays Plc 3.52
9. TNT Post Group NV 3.50
10. Societe Generale 3.50
*This list excludes temporary cash and derivative investments. The portfolio is
actively managed, and current holdings may be different.
2
Pioneer Europe Select Fund
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PERFORMANCE UPDATE 2/28/05 CLASS A SHARES
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Share Prices and Distributions
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Net Asset Value per Share 2/28/05 8/31/04
$13.11 $11.05
Net
Distributions per Share Investment Short-Term Long-Term
(9/1/04 - 2/28/05) Income Capital Gains Capital Gains
$0.0388 $0.0539 $0.2613
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Fund at public offering price,
compared to that of the Morgan Stanley Capital International (MSCI) Europe
Index.
- --------------------------------------------------
Average Annual Total Returns
(As of February 28, 2005)
Net Asset Public Offering
Period Value Price (POP)
Life-of-Class
(12/29/00) 8.02% 6.50%
1-Year 23.91 16.83
- --------------------------------------------------
Value of $10,000 Investment
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Europe MSCI Europe
Select Fund Index
12/00 9425 10000
7681 8084
7546 6789
8/03 8281 7375
10646 9082
2/05 13000 11282
Call 1-800-225-6292 or visit www.pioneerfunds.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.
POP returns reflect deduction of maximum 5.75% sales charge. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an Index.
3
Pioneer Europe Select Fund
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PERFORMANCE UPDATE 2/28/05 CLASS B SHARES
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Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value per Share 2/28/05 8/31/04
$12.88 $10.90
Net
Distributions per Share Investment Short-Term Long-Term
(9/1/04 - 2/28/05) Income Capital Gains Capital Gains
$0.0196 $0.0539 $0.2613
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Fund, compared to that of the Morgan
Stanley Capital International (MSCI) Europe Index.
- --------------------------------------------------
Average Annual Total Returns
(As of February 28, 2005)
If If
Period Held Redeemed
Life-of-Class
(12/29/00) 7.10% 6.90%
1-Year 22.73 18.73
- --------------------------------------------------
Value of $10,000 Investment
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Europe MSCI Europe
Select Fund Index
12/00 10000 10000
7805 8084
7622 6789
8/03 8361 7375
10653 9082
2/05 13207 11282
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If redeemed" returns reflect the deduction of applicable contingent deferred
sales charge (CSDC). Effective December 1, 2004, the period during which a CDSC
is applied to withdrawals was shortened to 5 years. The maximum CDSC for class
B shares continues to be 4%. For more complete information, please see the
prospectus for details. Note: Shares purchased prior to December 1, 2004 remain
subject to the CDSC in effect at the time you purchased those shares. For
performance information for shares purchased prior to December 1, 2004, please
visit www.pioneerfunds.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an Index.
4
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 2/28/05 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value per Share 2/28/05 8/31/04
$12.98 $10.98
Net
Distributions per Share Investment Short-Term Long-Term
(9/1/04 - 2/28/05) Income Capital Gains Capital Gains
$0.0375 $0.0539 $0.2613
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Europe Select Fund at public offering price, compared
to that of the Morgan Stanley Capital International (MSCI) Europe Index.
- --------------------------------------------------
Average Annual Total Returns
(As of February 28, 2005)
If If
Period Held Redeemed
Life-of-Class
(12/29/00) 7.47% 7.47%
1-Year 23.15 23.15
- --------------------------------------------------
Value of $10,000 Investment
[The following table was depicted as a mountain chart in the printed material.]
Pioneer Europe MSCI Europe
Select Fund Index
12/00 10000 10000
8059 8084
7960 6789
8/03 8690 7375
11094 9082
2/05 13500 11282
Call 1-800-225-6292 or visit www.pioneerfunds.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Morgan Stanley Capital International (MSCI) Europe Index measures the
performance of stocks in European developed markets. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in an Index.
5
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value - $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 Europe Select Fund
Based on actual returns from September 1, 2004 through February 28, 2005
Share Class A B C
- ----------------------------------------------------------------------------
Beginning Account Value
On 9/1/04 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 2/28/05 $1,221.10 $1,214.90 $1,216.90
Expenses Paid During Period* $ 6.88 $ 12.74 $ 11.16
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.32%,
and 2.03%, for Class A, Class B and Class C shares, respectively,
multiplied by the average account value over the period, multiplied by
181/366 (to reflect the one-half year period).
6
Pioneer Europe Select Fund
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- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of 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 Europe Select Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from September 1, 2004 through February 28, 2005
Share Class A B C
- ----------------------------------------------------------------------------
Beginning Account Value
On 9/1/04 $1,000.00 $1,000.00 $1,000.00
Ending Account Value
On 2/28/05 $1,018.60 $1,013.29 $1,014.73
Expenses Paid During Period* $ 6.26 $ 11.58 $ 10.14
* Expenses are equal to the Fund's annualized expense ratio of 1.25%, 2.32%,
and 2.03%, for Class A, Class B and Class C shares, respectively,
multiplied by the average account value over the period, multiplied by
181/366 (to reflect the one-half year period).
7
Pioneer Europe Select Fund
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PORTFOLIO MANAGEMENT DISCUSSION 2/28/05
- --------------------------------------------------------------------------------
European equity markets rose during the six months ended February 28, 2005, led
by the companies in the telecommunications and financials sectors. The
continued slide in the value of the U.S. dollar on international exchange
markets also tended to add to the performance results of U.S.-based investors,
although some concerns grew on the Continent that the strength of the euro
could impede the ability of European-based exporters to compete. In the
following interview, Andrew Arbuthnott discusses the events and factors that
affected your Fund's performance during the six months. Mr. Arbuthnott is a
member of the team at Pioneer Investment Management in Dublin, Ireland that is
responsible for the Fund's day-to-day management.
Q: How did the Pioneer Europe Select Fund perform during the six months that
ended on February 28, 2005?
A: The Fund had very strong performance in absolute terms, although it
trailed its benchmark for European equities. Pioneer Europe Select Fund's
Class A shares had a total return of 22.11%, all at net asset value.
During the same six-month period, the MSCI Europe Index returned 24.25%,
while the average return of the 120 funds in Lipper's European Regional
Fund category was 25.56%.
Call 1-800-225-6292 or visit www.pioneerfunds.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.
Q: What was the investment environment like during the six months?
A: European stocks rose briskly during the six months ended February 28,
2005. Sectors such as telecommunications services and financial services
produced the strongest results in the final months of 2004, although the
industrials, materials and energy sectors outperformed early in 2005.
8
Pioneer Europe Select Fund
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- --------------------------------------------------------------------------------
Reasonable valuations and the relatively high dividend yields offered by
many European stocks helped contribute to the favorable environment, which
was supported by an economic backdrop of moderate economic and supportive
monetary policies by central banks that kept interest rates low. However,
as the period progressed, investors grew increasingly concerned that
economic growth in Europe was beginning to slow and that the continued
appreciation of the euro and other linked currencies could have a negative
impact on the earnings of European exporters facing tougher competition
from countries, most notably from the United States, with weakening
currencies.
Q: What were some of the investments that most significantly contributed to
performance?
A: Our holdings in energy companies helped support performance over the six
months, as the prices of oil and natural gas generally moved higher,
despite some easing late in 2004. Oil producers such as BP and Eni
contributed substantially. Shares of BP, a major force on the
international market, gained as the company benefited from a broad
international portfolio, strong management, healthy cash flow and a
reasonable stock valuation. Eni, a long-term holding, is an Italy-based
company that has emerged as a highly efficient global oil producer. Our
investments in the industrials and materials sectors also helped support
performance during the period.
Several pharmaceutical holdings also helped performance, including
Astrazeneca, whose stock price recovered strongly after faltering late in
2004, and GlaxoSmithKline. Individual holdings that helped included
Barclays, the broadly diversified British financial company that offered
investors a high dividend yield and a low valuation, and BASF, a
diversified chemicals company that benefited from a strong pricing
environment.
France Telecom turned in strong performance during 2004, helped by its low
stock valuation early in the year and strong cash flow. However, France
Telecom and another telecommunications holding, Vodafone, held back
performance early in 2005.
9
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 2/28/05 (continued)
- --------------------------------------------------------------------------------
Investments in the automobile industry produced disappointing results for
the period. The stock price of long-time holding Porsche came under
pressure because of currency concerns, even though the company actually
benefited from its decision to hedge its U.S. dollar exposure. Peugeot
also declined, principally because of volatility in the market rather than
any deterioration in company fundamentals, we believe. We remain confident
in the prospects for both companies, however, and think they are well
prepared for the possibility of continued strength in the euro.
Q: What is your investment outlook?
A: We remain optimistic about European equities, as stock valuations tend to
be well supported by high dividend yields and the supportive policies of
the European Central Bank. In addition, many European-based companies are
restructuring themselves to become more efficient and competitive. The
effects of these positive factors may be muted, however, by modest growth
in economic output and the effects of the weaker U.S. dollar on exporting
companies.
In this environment, we believe stock market averages have a reasonable
opportunity to produce positive results and individual stock selection
will be an important factor in performance.
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates, economic, and
political conditions. The portfolio 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. The Fund invests in a limited number of
securities and, as a result, the Fund's performance may be more volatile
than the performance of funds holding more securities.
Any information in this shareholder report regarding market or economic
trends or the factors influencing the Fund's historical or future
performance are statements of the opinion of Fund management as of the
date of this report. These statements should not be relied upon for any
other purposes. Past performance is no guarantee of future results, and
there is no guarantee that market forecasts discussed will be realized.
10
Pioneer Europe Select Fund
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SCHEDULE OF INVESTMENTS 2/28/05 (unaudited)
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Shares Value
PREFERRED STOCK - 2.6%
Automobiles & Components - 2.6%
Automobile Manufacturers - 2.6%
438 Porsche AG $ 316,224
-----------
Total Automobiles & Components $ 316,224
-----------
TOTAL PREFERRED STOCK
(Cost $238,707) $ 316,224
-----------
COMMON STOCKS - 92.6%
Energy - 11.5%
Integrated Oil & Gas - 9.1%
56,790 BP Amoco Plc $ 616,626
19,348 Eni S.p.A. 505,510
-----------
$ 1,122,136
-----------
Oil & Gas Refining Marketing & Transportation - 2.4%
10,897 Repsol SA $ 296,262
-----------
Total Energy $ 1,418,398
-----------
Materials - 12.0%
Commodity Chemicals - 2.9%
4,752 BASF India, Ltd. $ 355,679
-----------
Construction Materials - 9.1%
13,347 CRH Plc $ 373,466
3,587 Lafarge BR 372,995
2,570 VINCI SA 377,359
-----------
$ 1,123,820
-----------
Total Materials $ 1,479,499
-----------
Capital Goods - 8.8%
Construction & Engineering - 6.0%
14,093 ACS, Actividades de Construccion y Servicios, SA $ 360,902
6,150 Compagnie de Saint Gobain 379,566
-----------
$ 740,468
-----------
Electrical Component & Equipment - 2.8%
4,339 Schneider Electric SA $ 345,992
-----------
Total Capital Goods $ 1,086,460
-----------
The accompanying notes are an integral part of these financial statements. 11
Pioneer Europe Select Fund
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SCHEDULE OF INVESTMENTS 2/28/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Shares Value
Commercial Services & Supplies - 3.3%
Diversified Commercial Services - 3.3%
14,665 TNT Post Group NV $ 409,622
-----------
Total Commercial Services & Supplies $ 409,622
-----------
Automobiles & Components - 6.5%
Auto Parts & Equipment - 2.6%
4,472 Compagnie Generale des Etablissements Michelin $ 318,775
-----------
Automobile Manufacturers - 3.9%
4,047 Bayerische Motoren Werke AG $ 173,087
4,635 PSA Peugeot Citroen 302,900
-----------
$ 475,987
-----------
Total Automobiles & Components $ 794,762
-----------
Consumer Durables & Apparel - 2.7%
Apparel, Accessories & Luxury Goods - 2.7%
2,210 Adidas-Salomon AG $ 331,412
-----------
Total Consumer Durables & Apparel $ 331,412
-----------
Retailing - 1.7%
Computer & Electronics Retail - 1.7%
66,742 Dixons Group Plc $ 205,893
-----------
Total Retailing $ 205,893
-----------
Food & Drug Retailing - 2.4%
Drug Retail - 2.4%
22,722 Boots Co., Plc $ 289,884
-----------
Total Food & Drug Retailing $ 289,884
-----------
Food, Beverage & Tobacco - 2.6%
Tobacco - 2.6%
17,465 British American Tobacco Plc $ 319,547
-----------
Total Food, Beverage & Tobacco $ 319,547
-----------
Pharmaceuticals & Biotechnology - 8.2%
Pharmaceuticals - 8.2%
10,078 Astrazeneca Plc $ 399,300
18,157 GlaxoSmithKline Plc 435,575
2,263 Schering AG 165,391
-----------
$ 1,000,266
-----------
Total Pharmaceuticals & Biotechnology $ 1,000,266
-----------
12 The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Value
Banks - 14.8%
Diversified Banks - 14.8%
18,783 Allied Irish Banks Plc $ 402,201
37,958 Barclays Plc 412,013
7,087 BNP Paribas SA 513,802
14,355 Royal Bank of Scotland Group Plc 493,044
-----------
$ 1,821,060
-----------
Total Banks $ 1,821,060
-----------
Diversified Financials - 9.5%
Diversified Financial Services - 7.7%
3,882 Societe Generale $ 409,379
6,100 UBS AG 529,477
-----------
$ 938,856
-----------
Specialized Finance - 1.8%
3,007 Deutsche Boerse AG $ 223,125
-----------
Total Diversified Financials $ 1,161,981
-----------
Telecommunication Services - 8.6%
Integrated Telecommunication Services - 3.8%
4,767 Belgacom SA * $ 200,120
8,922 France Telecom SA 269,337
-----------
$ 469,457
-----------
Wireless Telecommunication Services - 4.8%
222,548 Vodafone Group Plc $ 586,024
-----------
Total Telecommunication Services $ 1,055,481
-----------
TOTAL COMMON STOCKS
(Cost $9,519,720) $11,374,265
-----------
TOTAL INVESTMENTS IN SECURITIES - 95.2% $11,690,489
-----------
(Cost $9,758,427)(a)(b)
OTHER ASSETS AND LIABILITIES - 4.8% $ 595,624
-----------
TOTAL NET ASSETS - 100.0% $12,286,113
===========
The accompanying notes are an integral part of these financial statements. 13
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 2/28/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
* Non-Income producing security
(a) At February 28, 2005, the net unrealized gain on investments based on
cost for federal income tax purposes of $9,771,151 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $1,919,338
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value -
----------
Net unrealized gain $1,919,338
==========
(b) Distributions of investments by country of issue (excluding
temporary cash investments), as a percentage of total investment in
securities, is as follows:
United Kingdom 32.3%
France 28.1
Germany 13.4
Ireland 6.6
Spain 5.6
Switzerland 4.5
Italy 4.3
Netherlands 3.5
Belgium 1.7
-----
100.0%
=====
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended February 28, 2005 aggregated $5,564,626 and $1,565,270,
respectively.
14 The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 2/28/05 (unaudited)
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities, at value ($9,758,427) $11,690,489
Cash 499,914
Foreign currencies, at value (cost $44,467) 45,061
Receivables -
Investment securities sold 98,588
Fund shares sold 247,512
Dividends, interest and foreign taxes withheld 25,278
Forward foreign currency settlement contracts, net 839
Due from Pioneer Investment Management, Inc. 13,106
-----------
Total assets $12,620,787
-----------
LIABILITIES:
Payables -
Investment securities purchased $ 241,007
Fund shares repurchased 11,678
Due to affiliates 10,395
Accrued expenses 71,594
-----------
Total liabilities $ 334,674
-----------
NET ASSETS:
Paid-in capital $10,233,875
Distributions in excess of net investment income (16,437)
Accumulated net realized gain on investments and foreign
currency transactions 134,884
Net unrealized gain on investments 1,932,062
Net unrealized gain on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 1,729
-----------
Total net assets $12,286,113
===========
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $6,650,653/507,189 shares) $ 13.11
===========
Class B (based on $2,745,367/213,182 shares) $ 12.88
===========
Class C (based on $2,890,093/222,685 shares) $ 12.98
===========
MAXIMUM OFFERING PRICE:
Class A ($13.11 [divided by] 94.25%) $ 13.91
===========
The accompanying notes are an integral part of these financial statements. 15
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 2/28/05
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld $6,526) $ 54,499
Interest 2,045
----------
Total investment income $ 56,544
----------
EXPENSES:
Management fees $ 42,706
Transfer agent fees and expenses
Class A 7,645
Class B 6,408
Class C 3,862
Distribution fees
Class A 5,682
Class B 9,582
Class C 10,396
Administrative reimbursements 9,250
Custodian fees 26,482
Registration fees 57,731
Professional fees 34,708
Printing expense 7,604
Fees and expenses of nonaffiliated trustees 2,807
Miscellaneous 3,219
----------
Total expenses $ 228,082
Less management fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (156,435)
----------
Net expenses $ 71,647
----------
Net investment loss $ (15,103)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 213,418
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (14,567) $ 198,851
---------- ----------
Change in net unrealized gain on:
Investments $1,476,053
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies 1,117 $1,477,170
---------- ----------
Net gain on investments and foreign currency transactions $1,676,021
----------
Net increase in net assets resulting from operations $1,660,918
==========
16 The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 2/28/05 and the Year Ended 8/31/04
Six Months
Ended
2/28/05 Year Ended
(unaudited) 8/31/04
FROM OPERATIONS:
Net investment income (loss) $ (15,103) $ 44,161
Net realized gain on investments and foreign
currency transactions 198,851 279,264
Change in net unrealized gain on investments 1,477,170 307,810
----------- ------------
Net increase in net assets resulting from operations $ 1,660,918 $ 631,235
----------- ------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.04 and $0.10 per share, respectively) $ (15,101) $ (12,726)
Class B ($0.02 and $0.05 per share, respectively) (3,367) (3,245)
Class C ($0.04 and $0.11 per share, respectively) (7,214) (8,506)
Net realized gain:
Class A ($0.32 and $0.00 per share, respectively) (112,201) -
Class B ($0.32 and $0.00 per share, respectively) (48,903) -
Class C ($0.32 and $0.00 per share, respectively) (55,572) -
----------- ------------
Total distributions to shareowners $ (242,358) $ (24,477)
----------- ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 5,383,237 $ 5,025,100
Reinvestment of distributions 166,985 17,543
Cost of shares repurchased (853,149) (1,254,026)
----------- ------------
Net increase in net assets resulting from
Fund share transactions $ 4,697,073 $ 3,788,617
----------- ------------
Net increase in net assets $ 6,115,633 $ 4,395,375
NET ASSETS:
Beginning of period 6,170,480 1,775,105
----------- ------------
End of period (including distributions in excess of net
investment income and accumulated undistributed
net investment income of ($16,437) and $24,348,
respectively) $12,286,113 $ 6,170,480
=========== ============
The accompanying notes are an integral part of these financial statements. 17
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
For the Six Months Ended 2/28/05 and the Year Ended 8/31/04
'05 Shares '05 Amount '04 Shares '04 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 243,630 $2,995,339 245,070 $2,609,406
Reinvestment of distributions 6,862 83,295 1,103 11,406
Less shares repurchased (24,625) (303,710) (70,054) (729,581)
------- ---------- ------- ----------
Net increase 225,867 $2,774,924 176,119 $1,891,231
------- ---------- ------- ----------
CLASS B
Shares sold 85,072 $1,041,559 108,067 $1,145,432
Reinvestment of distributions 3,476 41,435 252 2,586
Less shares repurchased (13,475) (159,860) (23,309) (244,413)
------- ---------- ------- ----------
Net increase 75,073 $ 923,134 85,010 $ 903,605
------- ---------- ------- ----------
CLASS C
Shares sold 109,186 $1,346,339 121,015 $1,270,262
Reinvestment of distributions 3,509 42,255 344 3,551
Less shares repurchased (31,771) (389,579) (26,116) (280,032)
------- ---------- ------- ----------
Net increase 80,924 $ 999,015 95,243 $ 993,781
------- ---------- ------- ----------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
2/28/05 Year Ended
CLASS A (unaudited) 8/31/04
Net asset value, beginning of period $ 11.05 $ 8.68
--------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ 0.08
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 2.43 2.39
--------- --------
Net increase (decrease) from investment operations $ 2.42 $ 2.47
Distributions to shareowners:
Net investment income (0.04) (0.10)
Net realized gain (0.32) -
--------- --------
Net increase (decrease) in net asset value $ 2.06 $ 2.37
--------- --------
Net asset value, end of period $ 13.11 $ 11.05
========= ========
Total return* 22.11% 28.56%
Ratio of net expenses to average net assets + 1.25%** 1.25%
Ratio of net investment income to average net assets + 0.10%** 1.58%
Portfolio turnover rate 37%** 48%
Net assets, end of period (in thousands) $ 6,651 $ 3,108
Ratios with no waiver of management fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 4.89%** 8.30%
Net investment loss (3.54)%** (5.47)%
Ratios with waiver of management fees and assumption of expenses by
PIM and reduction for fees paid indirectly:
Net expenses 1.25%** 1.25%
Net investment income 0.10%** 1.58%
Year Ended Year Ended 12/29/00 (a)
CLASS A 8/31/03 8/31/02 to 8/31/01
Net asset value, beginning of period $ 7.91 $ 8.15 $ 10.00
--------- --------- ----------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.07 $ 0.04 $ 0.05
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.70 (0.18) (1.90)
--------- --------- ----------
Net increase (decrease) from investment operations $ 0.77 $ (0.14) $ (1.85)
Distributions to shareowners:
Net investment income - (0.10) -
Net realized gain - - -
--------- --------- ----------
Net increase (decrease) in net asset value $ 0.77 $ (0.24) $ (1.85)
--------- --------- ----------
Net asset value, end of period $ 8.68 $ 7.91 $ 8.15
========= ========= ==========
Total return* 9.73% (1.76)% (18.50)%
Ratio of net expenses to average net assets + 1.62% 1.75% 1.76%**
Ratio of net investment income to average net assets + 1.02% 0.17% 0.92%**
Portfolio turnover rate 67% 68% 135%**
Net assets, end of period (in thousands) $ 914 $ 567 $ 266
Ratios with no waiver of management fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 16.15% 31.21% 39.42%**
Net investment loss (13.51)% (29.29)% (36.74)%**
Ratios with waiver of management fees and assumption of expenses by
PIM and reduction for fees paid indirectly:
Net expenses 1.62% 1.75% 1.75%**
Net investment income 1.02% 0.17% 0.93%**
(a) Class A shares were first publicly offered on January 2, 2001.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total Return would be reduced if sales charges were taken into
account
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 19
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
2/28/05 Year Ended
CLASS B (unaudited) 8/31/04
Net asset value, beginning of period $ 10.90 $ 8.62
--------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.06) $ (0.01)
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 2.38 2.34
--------- -------
Net increase (decrease) from investment operations $ 2.32 $ 2.33
Distributions to shareowners:
Net investment income (0.02) (0.05)
Net realized gain (0.32) -
--------- -------
Net increase (decrease) in net asset value $ 1.98 $ 2.28
--------- -------
Net asset value, end of period $ 12.88 $ 10.90
========= =======
Total return* 21.49% 27.07%
Ratio of net expenses to average net assets + 2.32%** 2.17%
Ratio of net investment income (loss) to average net assets + (1.02)%** 0.65%
Portfolio turnover rate 37%** 48%
Net assets, end of period (in thousands) $ 2,745 $ 1,505
Ratios with no waiver of management fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 6.03%** 9.20%
Net investment loss (4.73)%** (6.38)%
Ratios with waiver of management fees and assumption of expenses by
PIM and reduction for fees paid indirectly:
Net expenses 2.32%** 2.17%
Net investment income (loss) (1.02)%** 0.65%
Year Ended Year Ended 12/29/00 (a)
CLASS B 8/31/03 8/31/02 to 8/31/01
Net asset value, beginning of period $ 7.94 $ 8.13 $ 10.00
--------- --------- ----------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ (0.05) $ 0.02
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.69 (0.14) (1.89)
--------- --------- ----------
Net increase (decrease) from investment operations $ 0.68 $ (0.19) $ (1.87)
Distributions to shareowners:
Net investment income - - -
Net realized gain - - -
--------- --------- ----------
Net increase (decrease) in net asset value $ 0.68 $ (0.19) $ (1.87)
--------- --------- ----------
Net asset value, end of period $ 8.62 $ 7.94 $ 8.13
========= ========= ==========
Total return* 8.57% (2.34)% (18.70)%
Ratio of net expenses to average net assets + 2.78% 2.33% 2.34%**.
Ratio of net investment income (loss) to average net assets + (0.10)% (0.52)% 0.29%**
Portfolio turnover rate 67% 68% 135%**
Net assets, end of period (in thousands) $ 457 $ 295 $ 158
Ratios with no waiver of management fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 17.41% 31.81% 40.08%**
Net investment loss (14.73)% (30.00)% (37.45)%**
Ratios with waiver of management fees and assumption of expenses by
PIM and reduction for fees paid indirectly:
Net expenses 2.78% 2.33% 2.33%**
Net investment income (loss) (0.10)% (0.52)% 0.30%**
(a) Class B shares were first publicly offered on January 2, 2001.
* Assumes initial investment at net asset value at the beginning of each
period, and no sales charges, the complete redemption of the investment at
the end of each period, and no sales charges. Total return would be reduced
if sales charges were taken into account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
20 The accompanying notes are an integral part of these financial statements.
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Six Months
Ended
2/28/05 Year Ended
CLASS C (unaudited) 8/31/04
Net asset value, beginning of period $ 10.98 $ 8.69
--------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.04) $ 0.04
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 2.40 2.36
--------- --------
Net increase (decrease) from investment operations $ 2.36 $ 2.40
Distributions to shareowners:
Net investment income (0.04) (0.11)
Net realized gain (0.32) -
--------- --------
Net increase (decrease) in net asset value $ 2.00 $ 2.29
--------- --------
Net asset value, end of period $ 12.98 $ 10.98
========= ========
Total return* 21.69% 27.67%
Ratio of net expenses to average net assets+ 2.03%** 1.72%
Ratio of net investment income (loss) to average net assets+ (0.73)%** 1.14%
Portfolio turnover rate 37%** 48%
Net assets, end of period (in thousands) $ 2,890 $ 1,557
Ratios with no waiver of management fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 5.70%** 8.75%
Net investment loss (4.40)%** (5.89)%
Ratios with waiver of management fees and assumption of expenses by
PIM and reduction for fees paid indirectly:
Net expenses 2.03%** 1.72%
Net investment income (loss) (0.73)%** 1.14%
Year Ended Year Ended 12/29/00 (a)
CLASS C 8/31/03 8/31/02 to 8/31/01
Net asset value, beginning of period $ 7.96 $ 8.14 $ 10.00
--------- --------- ----------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.03 $ (0.04) $ 0.02
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 0.70 (0.14) (1.88)
--------- --------- ----------
Net increase (decrease) from investment operations $ 0.73 $ (0.18) $ (1.86)
Distributions to shareowners:
Net investment income - - -
Net realized gain - - -
--------- --------- ----------
Net increase (decrease) in net asset value $ 0.73 $ (0.18) $ (1.86)
--------- --------- ----------
Net asset value, end of period $ 8.69 $ 7.96 $ 8.14
========= ========= ==========
Total return* 9.17% (2.21)% (18.60)%
Ratio of net expenses to average net assets+ 2.27% 2.22% 2.08%**
Ratio of net investment income (loss) to average net assets+ 0.54% (0.35)% 0.45%**
Portfolio turnover rate 67% 68% 135%**
Net assets, end of period (in thousands) $ 404 $ 201 $ 105
Ratios with no waiver of management fees and assumption of expenses
by PIM and no reduction for fees paid indirectly:
Net expenses 17.02% 31.70% 40.11%**
Net investment loss (14.21)% (29.83)% (37.58)%**
Ratios with waiver of management fees and assumption of expenses by
PIM and reduction for fees paid indirectly:
Net expenses 2.27% 2.22% 2.07%**
Net investment income (loss) 0.54% (0.35)% 0.46%**
(a) Class C shares were first publicly offered on January 2, 2001.
* Assumes initial investment at net asset value at the beginning of each
period, and no sales charges, the complete redemption of the investment at
the end of each period, and no sales charges. Total return would be reduced
if sales charges were taken into account.
** Annualized.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 21
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/05 (unaudited)
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Europe Select Fund (the Fund) is a Delaware statutory trust registered
under the Investment Company Act of 1940 as a non-diversified, open-end
management investment company. The Fund was organized on August 25, 2000 and
commenced operations on December 29, 2000. Prior to December 29, 2000, the Fund
had no operations other than those relating to organizational matters and the
initial capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD).
The investment objective of the Fund is to seek capital growth.
The Fund offers three classes of shares -- Class A, Class B and Class C shares.
In addition, the Fund has authorized but not yet offered Class Y shares. Fund
Shares were first publicly offered on January 2, 2001. Shares of Class A, Class
B and Class C each represent an interest in the same portfolio of investments
of the Fund and have equal rights to voting, redemptions, dividends and
liquidation, except that each class of shares can bear different transfer agent
and distribution fees and have exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B and Class C
shareowners, respectively.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies followed by the Trust in the preparation of its financial
statements, which are consistent with those policies generally accepted in the
investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities are valued at the last sale price on the
principal exchange where they are traded. Securities that have not traded on
the date of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
22
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of, the Board
of Trustees. The Fund invests primarily in securities of non-U.S. issuers.
The principal exchanges and markets for such securities have closing times
prior to the close of the NYSE. However, the value of these securities may be
influenced by changes in global markets occurring after the closing times of
the local exchanges and markets up to the time the Fund determines its net
asset value. Consequently, the Board of Trustees of the Fund has determined
that the use of daily fair valuations as provided by a pricing service is
appropriate for the Fund. The Fund may also take into consideration other
significant events in determining the fair value of these securities. Thus,
the Fund's securities valuations may differ from prices reported by the
various local exchanges and markets. Temporary cash investments are valued at
amortized cost.
Dividend income is recorded on the ex-dividend date, except that certain
dividends 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, net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
Investing in the securities of European issuers involves unique risks
compared to investing in securities of U.S. issuers. These risks are more
pronounced to the extent the Fund invests a significant portion of its
investments in any one European region. The Fund is not diversified, which
means that it can invest a higher percentage of its assets in any one issuer
than a diversified fund. Being non-diversified may magnify the Fund's losses
from adverse events affecting a particular issuer.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated in to U.S. dollars using
current exchange rates.
23
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Net realized gains and losses on foreign currency translations 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 in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates and
any resulting unrealized gains or losses are recorded in the Fund's financial
statements. The Fund records realized gains and losses at the time a
portfolio hedge is offset by entry into a closing transaction or extinguished
by delivery of the currency. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
the contract and from unanticipated movements in the value of foreign
currencies relative to the U.S. dollar.
At February 28, 2005, the Fund had no outstanding portfolio hedges. The Funds
gross forward currency settlement contracts receivable and payable were
$241,007 and $240,168, respectively, resulting in a net receivable of $839.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investments companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal income
tax rules. Therefore, the sources of the Trust's distributions may be shown
in the accompanying financial statements
24
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
as either from or in excess of net investment income or net realized gain on
investment transactions, or from paid-in-capital, depending on the type of
book/tax differences that may exist.
The tax character of current year distributions paid will be determined at
the end of the current fiscal year.
The tax character of distributions paid during the year ended August 31, 2004
was as follows.
- ----------------------------------------------
2004
- ----------------------------------------------
Distributions paid from:
Ordinary Income $24,477
Long-term capital gain -
-------
Total $24,477
=======
- ----------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at August 31, 2004.
- ----------------------------------------------
2004
- ----------------------------------------------
Undistributed ordinary income $ 38,834
Undistributed long-term gain 152,244
Unrealized appreciation 442,600
--------
Total $633,678
========
- ----------------------------------------------
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. PFD,
the principal underwriter for the Fund and a wholly owned indirect subsidiary
of UniCredito Italiano S.p.A. (UniCredito Italiano) earned $5,532 in
underwriting commissions on the sale of Class A shares during the six months
ended February 28, 2005.
F. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Shareowners of each class share all expenses and fees paid to
the transfer agent, Pioneer Investment
25
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 2/28/05 (unaudited) (continued)
- --------------------------------------------------------------------------------
Management Shareholder Services, Inc. (PIMSS), for its services, which are
allocated based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3). Income, common
expenses and realized and unrealized gains and losses are calculated at the
Fund level and allocated daily to each class of shares based on the
respective percentage of adjusted net assets at the beginning of the day.
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of Unicredito Italiano, manages the
Trust's portfolio. Management fees are calculated daily at the annual rate of
1.00% of the Fund's average daily net assets up to $300 million; 0.85% of the
$200 million; and 0.75% of the excess over $500 million.
Through December 31, 2005, PIM has agreed not to impose all or a portion of its
management fee and to assume other operating expenses of the Fund to the extent
necessary to limit Class A expenses to 1.75% of the average daily net assets
attributable to Class A shares; the portion of the Fund-wide expenses
attributable to Class B and Class C shares will be reduced only to the extent
that such expenses are reduced for Class A shares. PIM has agreed to further
reduce Class A expenses to 1.25%. This is voluntary and can be terminated at
any time.
In addition, under the management fees, administrative costs and certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At February 28, 2005, $1,541 was payable to PIM
related to management fees, administrative costs and certain other services and
is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of Unicredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $3,322 in transfer agent
fees payable to PIMSS at February 28, 2005.
26
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan and Class C Plan) in accordance with Rule 12b-1 under the
Investment Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD
a service fee of up to 0.25% of the average daily net assets attributable to
Class A shares in reimbursement of its actual expenditures to finance
activities primarily intended to result in the sale of Class A shares. Pursuant
to the Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of the
average daily net assets attributable to each class of shares. The fee consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class B and Class C shares. Included in due to affiliates is
$5,532 in distribution fees payable to PFD at February 28, 2005.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). Effective February 1, 2004, a CDSC of 1.00% may
be imposed on redemptions of certain net asset value purchases of Class A
shares within 18 months of purchase (12 months for shares purchased prior to
February 1, 2004). Effective December 1, 2004, Class B shares that are redeemed
within five years of purchase are subject to a CDSC at declining rates
beginning at 4.00%, based on the lower of cost or market value of shares being
redeemed. Shares purchased prior to December 1, 2004 remain subject to the CDSC
in effect at the time those shares were purchased. Redemptions of Class C
shares within one year of purchase are subject to a CDSC of 1.00%. Proceeds
from the CDSCs are paid to PFD. For the period ended February 28, 2005 CDSCs in
the amount of $1,022 were paid to PFD.
The Fund charges a 2.0% redemption fee on Class A, Class B, and Class C shares
sold within 30 days of purchase. For Class A shares, the fee became effective
November 1, 2003, while for Class B and Class C shares, this fee became
effective July 1, 2004. The fee does not apply to certain types of transactions
as described in the Fund's prospectus. For the six months ended February 28,
2005, the Fund collected $543 in redemption fees, which are included in the
Fund's capital account.
5. Expense Offset Arrangements
The Fund can enter into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended February 28, 2005, there were no
reductions under such arrangements.
27
Pioneer Europe Select Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
David R. Bock Osbert M. Hood, Executive
Mary K. Bush Vice President
Margaret B.W. Graham Vincent Nave, Treasurer
Osbert M. Hood Dorothy E. Bourassa, Secretary
Marguerite A. Piret
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 6-month period ended August 31, 2004 is publicly available to
shareowners at www.pioneerfunds.com. This information is also available on the
Securities and Exchange Commission's web site at http://www.sec.gov.
28
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our Internet e-mail address ask.pioneer@pioneerinvest.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
Please consider the Fund's investment objectives, risks, charges and expenses
carefully before investing. The prospectus contains this and other information
about the Fund and should be read carefully before you invest. To obtain a
prospectus and for other information on any Pioneer fund, call 1-800-225-6292 or
visit our web site www.pioneerfunds.com.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and the third quarters for each fiscal year on
Form N-Q. Shareowners may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, D.C. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognizes the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognizes that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The Fund's independent auditor, Ernst & Young
LLP ("E&Y"), recently has advised the Securities
and Exchange Commission, the Public Company
Accounting Oversight Board, and the Audit
Committee of the Fund's Board of Trustees that
certain non-audit work performed by E&Y's China
affiliate has raised questions regarding E&Y's
independence with respect to its performance of
audit services for the Fund. In July 2004, E&Y
became aware that member firms in China ("E&Y
China") provided certain tax services to offices of
UniCredito Italiano, S.p.A. ("UCI"), a member of
the Fund's Investment Company Complex. The
services included receipt and disbursement of
monies transferred to E&Y China by UCI in
payment of individual expatriate income taxes due
on returns prepared by E&Y China for certain UCI
employees located in China from October 1998 to
May 2003. E&Y became auditors of the Fund in
May 2002. These expatriate tax services were
discontinued in May 2003. The fees received by
E&Y China for all such services totaled $3,685.
The Fund's Audit Committee and E&Y have
discussed the matter, including the nature of the
services provided, the personnel involved in
providing the services and the fees received by
E&Y for performing the services. The Committee
continues to review the facts and circumstances
surrounding the matter, including the issue of
whether the monies transferred for employees' taxes
were de facto monies due the employees for tax
payments rather than monies belonging to UCI.
E&Y has informed the Audit Committee that based
on its internal reviews and the de minimis nature of
the services provided and fees received, it does not
believe its independence with respect to the Fund
has been impaired.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
N/A
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer and principal financial
officer have concluded, that the registrant's disclosure controls and
procedures are effective based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Europe Select Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date April 29, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date April 29, 2005
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date April 29, 2005
* Print the name and title of each signing officer under his or her signature.