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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 811-07318
Pioneer Series Trust VIII
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: November 30
Date of reporting period: December 1, 2014 through May 31, 2015
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer International
Value Fund
--------------------------------------------------------------------------------
Semiannual Report | May 31, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIIFX
Class C PCITX
Class Y INVYX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 25
Notes to Financial Statements 32
Trustees, Officers and Service Providers 44
Pioneer International Value Fund | Semiannual Report | 5/31/15 1
President's Letter
Dear Shareowner,
At mid-year, economic conditions and government policies around the world are
far from homogeneous, and we expect them to continue to diverge. In the United
States, an ongoing economic expansion has brought the unemployment rate down to
levels where wage growth is likely to accelerate. Economic growth and fiscal
austerity have dramatically reduced the Federal budget deficit, while very
accommodative Federal Reserve System policies have kept interest rates
exceptionally low. In Europe and Japan, cyclical economic recoveries/ expansions
appear to be gaining traction, buttressed by aggressive quantitative easing
policies of central banks as well as cheaper currencies. China's ongoing
transition from an infrastructure investment-driven to a consumer-driven economy
and the dramatic decline in the price of oil -- largely a result of U.S.
"fracking" -- have benefited some countries while burdening others. On balance,
though, the global economic outlook has continued to improve, although economic
and geopolitical "storm clouds" remain.
Today's market environment presents numerous opportunities as well as challenges
for investors. While we believe that the capital markets may already have priced
in some recent trends, such as the U.S. dollar's appreciation against a basket
of global currencies, it is worth noting that investment risks and opportunities
are not always aligned with the economic outlook.
Since 1928, Pioneer's investment professionals have focused on identifying and
capitalizing on the investment opportunities that present themselves in a
variety of ever-changing economic and market conditions, including those we face
today, while seeking to limit the risk of the permanent impairment of our
clients' capital. Our ongoing goal is to deliver competitive returns consistent
with our strategies' stated style and objectives and consistent with our
shareholders' expectations over a range of market conditions. We believe our
shareowners benefit from the experience and tenure of our investment teams, the
insights generated from extensive research resources, and our commitment to
prudent risk management.
2 Pioneer International Value Fund | Semiannual Report | 5/31/15
We encourage you to work with your financial advisor to develop an overall
investment plan that addresses both your short- and long-term goals, and to
implement such a plan in a disciplined manner, as we do when managing the assets
our clients have entrusted to us.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer International Value Fund | Semiannual Report | 5/31/15 3
Portfolio Management Discussion | 5/31/15
In the follow interview, Madelynn Matlock discusses the market environment for
international equities and the factors that influenced the performance of
Pioneer International Value Fund during the six-month period ended May 31, 2015.
Ms. Matlock, a senior vice president and a portfolio manager at Pioneer, Marco
Pirondini, Head of Equities, U.S., and a portfolio manager at Pioneer, and
Andrea Salvatori, Head of Global Emerging Markets & Latin American Equities,
Head of Emerging Market Equity Research, and a senior portfolio manager at
Pioneer based in Pioneer's London office, are responsible for the day-to-day
management of the Fund.
Q How did the Fund perform during the six-month period ended May 31, 2015?
A Pioneer International Value Fund's Class A shares returned 6.09% at net
asset value during the six-month period ended May 31, 2015, while the
Fund's benchmark, the Morgan Stanley Capital International (MSCI) Europe,
Australasia, Far East (EAFE) ND Index1, returned 4.84%. During the same
period, the average return of the 394 mutual funds in Lipper's
International Multi-Cap Core Funds category was 4.98%, and the average
return of the 798 mutual funds in Morningstar's Foreign Large Blend Funds
category was 5.12%.
Q How would you characterize the investment environment for international
equities during the six-month period ended May 31, 2015?
A International equity markets experienced considerable volatility, but still
gained ground during the six-month period. With global economies growing at
different rates, monetary policies of central banks showed signs of
diverging. The U.S. economy, despite a winter weather-related setback in
the first quarter of 2015, has been strengthening for the most part, moving
the Federal Reserve System (the Fed) toward a tightening posture as it
(1) The MSCI information may only be used for your internal use, may not be
reproduced or redisseminated in any form and may not be used as a basis for
or a component of any financial instruments or products or indices. None of
the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an
"as is" basis and the user of this information assumes the entire risk of
any use made of this information. MSCI, each of its affiliates and each
other person involved in or related to compiling, computing or creating any
MSCI information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer International Value Fund | Semiannual Report | 5/31/15
contemplates the timing of its first interest-rate increase since 2006.
Meanwhile, central banks in other countries and regions implemented
monetary easing policies, as the rest of the world's economies were
generally in a low-growth or decelerating mode. With bouts of geopolitical
tensions in the Middle East, Greece's standoff with its creditors, and
growing risk of a stock market bubble in China adding further uncertainty,
foreign currency markets were volatile during the period, and the U.S.
dollar rose sharply.
Despite stagnating global growth and falling demand for oil, particularly
in Europe, the OPEC (Organization of the Petroleum Exporting Countries)
cartel maintained its crude oil production levels, contributing to a
glaring supply/demand imbalance. The ensuing decline in crude oil prices
was swift and dramatic, highlighted by crude oil's falling to as low as $46
a barrel this past April. While the negative fallout was most severe for
emerging markets countries dependent on oil revenue, consumers benefited
from lower oil prices, as did oil-dependent industries such as
transportation.
Against that backdrop, developed-market international stocks slightly
outperformed U.S. stocks during the six-month period (the Standard & Poor's
500 Index returned 2.97%, while the MSCI World ND Index returned 3.38%).
Within international equity markets, the Pacific Rim, with relatively
strong performance from Japan, led the way, followed by Europe. Developed
markets significantly outpaced emerging markets for the period, as the MSCI
Emerging Markets ND Index returned just 0.82%. From a sector perspective,
health care and information technology were the best performers during the
six-month period, while utilities and energy - reflecting the sharp decline
in oil prices and slowing consumer demand - turned in negative performance.
Q What was the main reason behind the Fund's outperformance relative to its
benchmark, the MSCI EAFE Index, during the six-month period ended May 31,
2015?
A Positive stock selection results made the biggest contribution to the
Fund's outperformance of the MSCI EAFE Index during the period. Sector
weights and regional allocations also added some incremental returns to
relative performance.
Our research-driven investment approach is rooted in evaluating and
choosing stocks that we believe have good return potential, with the goal
of not overpaying for that potential. We evaluate every company's return on
Pioneer International Value Fund | Semiannual Report | 5/31/15 5
invested capital versus what the company must pay for that capital, and we
favor companies that are either adding value on a consistent basis or that
have the potential to improve their returns over time. We also try to take
advantage of long-running secular trends that may lead to higher returns in
the future, and we avoid what we consider negative trends that might drag
on companies' performance, even if they are well managed.
With regard to individual stocks, positive benchmark-relative returns for
the six-month period derived largely from the Fund's positions in less
well-known, more mid-sized companies. Examples of portfolio holdings in
mid-sized companies that contributed to the Fund's relative performance
include Murata, Persimmon, Pax Global, and Sundrug.
Q What other investment strategies contributed to the Fund's positive results
during the six-month period ended May 31, 2015?
A The Fund benefitted from a greater-than-benchmark weighting in Japan, as
that country's market turned in strong performance during the period. We
have been encouraged by Japan's aggressive monetary policies and
shareholder-friendly market reforms, which are helping to support equity
prices there. In fact, two of the Fund's best-performing stocks during the
period were domiciled in Japan, the aforementioned Murata and Sundrug.
Murata, a manufacturer of electronics used to enable wireless
communications for Smartphones and other products, was a beneficiary of the
growth in global Smartphone usage. Murata's stock price also rose on news
of the company's decision to expand its reach into the so-called "Internet
of Things" -- connecting thermostats, appliances, etc., to computers and
Smartphones. The Fund's shares of Sundrug, a drug store chain, also
performed well during the period. With the regulatory environment for
dispensing drugs beginning to ease in Japan and the one-time shock of the
increase in the country's value-added tax waning, the company's stock
rallied. As regulations gradually ease, we believe Sundrug is in a good
position to benefit from its retail network capabilities.
With regard to sector weights, our decision to overweight the portfolio in
technology and to underweight energy and materials aided benchmark-
relative returns. Within materials, however, we focused on stocks of
companies that we thought would perform well in an environment of weak
commodity prices. Shares of Incitec Pivot, the Australian distributor of
fertilizers, and Syngenta, the Swiss agricultural company, exemplified our
strategy as both turned in solid performance. Syngenta's stock also rallied
on the announcement of an offer by Monsanto to purchase the company.
6 Pioneer International Value Fund | Semiannual Report | 5/31/15
Q Which of your investment strategies detracted the most from the Fund's
performance during the six-month period ended May 31, 2015?
A Energy stocks were among the worst performers, overall, during the
six-month period. The unexpectedly sharp decline in oil prices and OPEC's
decision not to lend support to prices by cutting production created a
ripple effect throughout the global economy. The impact has been felt most
profoundly among oil-exploration and oil-production companies, which have
reduced capital spending in the wake of the supply/demand imbalance. While
we maintained the portfolio's lower-than-benchmark weighting in energy
during the period, the steep decline in the value of most energy stocks
weighed on the Fund's performance. In addition to the effects of falling
oil revenues, the Fund's position in Encana, the Canadian energy giant,
also suffered as a result of management's ill-timed offer to buy an oil
producer in the Texas shale area.
Two other Fund holdings tied to the commodity market detracted from
performance during the six-month period: Komatsu and GDF Suez. Komatsu, a
Japanese manufacturer of construction machinery and vehicles, struggled in
response to a deteriorating outlook for the construction and mining
industries. France's largest utility, GDF Suez, fell prey to falling oil
and gas prices. Even with the company's increasing focus on renewable
energies and efficiency services which rely on digital technologies, GDF's
fundamental outlook appears challenged, in our estimation. Both Komatsu and
GDF were sold from the portfolio before the end of the period.
Finally, although the weaker euro and yen relative to the U.S. dollar
provided tailwinds for companies in the Fund's portfolio that export to, or
have operations in, the United States, the decline in value of those
companies' home currencies weighed on their stock prices when the
currencies were translated back to U.S. dollars. Currency volatility was
pronounced during the six-month period, making earnings and profits harder
to forecast for multinational companies such as Danone in France, and
Yaskawa in Japan, two portfolio holdings which detracted from the Fund's
performance.
Pioneer International Value Fund | Semiannual Report | 5/31/15 7
Q Did the Fund have any derivative exposure during the six-month period ended
May 31, 2015, and did the exposure have an effect on performance?
A Yes. We used derivatives in the portfolio, including futures, forward
foreign currency contracts and total return swaps, the latter of which we
employed in an attempt to hedge the difference in the performance of
Japan's Nikkei 400 Index, which was introduced in 2014, and the TOPIX
(Tokyo Stock Price Index) Index. The hedge, which favored the relative
outperformance of the Nikkei 400, was slightly accretive for the Fund's
performance during the period.
Q What is your outlook for international stocks for the remainder of 2015?
A While we are optimistic about the investment environment for international
equities in the intermediate and longer terms, we believe growth in the
developed markets is likely to be uneven. Our near-term outlook is guarded,
as global growth concerns combined with a stronger U.S. dollar are having
an effect on corporate fundamentals, and the international equity markets
in general.
We are encouraged by the pro-growth policies emanating from the European
Central Bank and the Bank of Japan, which are designed to help stimulate
the respective economies of the euro zone and Japan. But the difficult,
long-term reforms that are needed for many markets in Europe and Japan to
become more competitive are only in their infancy. Thus, while we are
confident that Europe offers long-term growth potential, our near-term
outlook for the region is more guarded in light of a challenging corporate
earnings picture. Even so, while the outcome of the Greek debt crisis was
still in question at the end of the reporting period, the risk of the
European Union's breaking up has, in our view, diminished greatly over the
past several years.
In Japan, we remain encouraged by improvements in corporate governance and
efforts directed at improving returns for shareholders. In the emerging
markets, we continue to see weakness in Latin America, offset by pockets of
strength in Asia.
With such a complex backdrop, we will continue to rely on our research-
driven investment process when choosing investments for the Fund, focusing
on companies with reasonable stock valuations, solid growth, profitability,
and a presence in markets where we see secular growth potential.
8 Pioneer International Value Fund | Semiannual Report | 5/31/15
Please refer to the Schedule of Investments on pages 17-24 for a full listing of
Fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The Fund may invest a substantial amount of its assets in issuers located within
a specific region, and is, therefore, more susceptible to adverse developments
affecting those regions.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries or sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer International Value Fund | Semiannual Report | 5/31/15 9
Portfolio Summary | 5/31/15
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 24.0%
Industrials 13.1%
Health Care 13.0%
Consumer Staples 10.9%
Consumer Discretionary 10.4%
Materials 9.0%
Information Technology 7.7%
Telecommunication Services 4.9%
Energy 3.8%
Utilities 3.2%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
Japan 30.6%
United Kingdom 11.1%
Switzerland 11.0%
Germany 10.6%
France 7.4%
Australia 5.6%
Spain 4.7%
Netherlands 4.1%
Ireland 3.3%
Sweden 2.8%
Jersey Channel Islands 2.6%
Canada 2.3%
Curacao 1.2%
Bermuda 1.0%
Other (individually less than 1%) 1.7%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. Shire Plc 2.57%
--------------------------------------------------------------------------------
2. Novartis AG 2.36
--------------------------------------------------------------------------------
3. Syngenta AG 2.21
--------------------------------------------------------------------------------
4. Fresenius SE & Co. KGaA 1.99
--------------------------------------------------------------------------------
5. Zurich Insurance Group AG 1.93
--------------------------------------------------------------------------------
6. Roche Holding AG 1.76
--------------------------------------------------------------------------------
7. Gerresheimer AG 1.76
--------------------------------------------------------------------------------
8. Vodafone Group Plc 1.74
--------------------------------------------------------------------------------
9. Sundrug Co., Ltd. 1.74
--------------------------------------------------------------------------------
10. UBS Group AG 1.71
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
10 Pioneer International Value Fund | Semiannual Report | 5/31/15
Prices and Distributions | 5/31/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 5/31/15 11/30/14
--------------------------------------------------------------------------------
A $22.38 $22.34
--------------------------------------------------------------------------------
C $19.65 $19.69
--------------------------------------------------------------------------------
Y $22.41 $22.41
--------------------------------------------------------------------------------
Distributions per Share: 12/1/14-5/31/15
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
A $1.2250 $ -- $ --
--------------------------------------------------------------------------------
C $1.0635 $ -- $ --
--------------------------------------------------------------------------------
Y $1.3086 $ -- $ --
--------------------------------------------------------------------------------
Index Definition
--------------------------------------------------------------------------------
The MSCI EAFE ND Index is an unmanaged, commonly used measure of international
stocks. Index returns are calculated monthly, assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges. It
is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 12-14.
Pioneer International Value Fund | Semiannual Report | 5/31/15 11
Performance Update | 5/31/15 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer International Value Fund at public
offering price during the periods shown, compared to that of the Morgan Stanley
Capital International (MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of May 31, 2015)
--------------------------------------------------------------------------------
Net Public MSCI
Asset Offering EAFE
Value Price ND
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 Years 4.55% 3.93% 5.56%
--------------------------------------------------------------------------------
5 Years 8.64 7.36 9.90
--------------------------------------------------------------------------------
1 Year 3.04 -2.87 -0.48
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.70% 1.45%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International
Value Fund MSCI EAFE ND Index
5/31/2005 $ 9,425 $10,000
5/31/2006 $12,336 $12,824
5/31/2007 $15,480 $16,266
5/31/2008 $14,985 $15,855
5/31/2009 $ 9,590 $10,051
5/31/2010 $ 9,718 $10,715
5/31/2011 $12,388 $13,973
5/31/2012 $ 9,779 $11,111
5/31/2013 $12,525 $14,624
5/31/2014 $14,275 $17,263
5/31/2015 $14,710 $17,180
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through April 1, 2016, for Class A shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
12 Pioneer International Value Fund | Semiannual Report | 5/31/15
Performance Update | 5/31/15 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer International Value Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of May 31, 2015)
--------------------------------------------------------------------------------
MSCI
EAFE
If If ND
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 3.65% 3.65% 5.56%
--------------------------------------------------------------------------------
5 Years 7.67 7.67 9.90
--------------------------------------------------------------------------------
1 Year 2.12 2.12 -0.48
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2015)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.44% 2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International
Value Fund MSCI EAFE ND Index
5/31/2005 $10,000 $10,000
5/31/2006 $12,983 $12,824
5/31/2007 $16,185 $16,266
5/31/2008 $15,542 $15,855
5/31/2009 $9,849 $10,051
5/31/2010 $9,889 $10,715
5/31/2011 $12,495 $13,973
5/31/2012 $9,777 $11,111
5/31/2013 $12,411 $14,624
5/31/2014 $14,015 $17,263
5/31/2015 $14,312 $17,180
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects the contractual expense limitation currently in
effect through April 1, 2016, for Class C shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer International Value Fund | Semiannual Report | 5/31/15 13
Performance Update | 5/31/15 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer International Value Fund during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of May 31, 2015)
--------------------------------------------------------------------------------
Net MSCI
Asset EAFE
Value ND
Period (NAV) Index
--------------------------------------------------------------------------------
10 Years 4.83% 5.56%
--------------------------------------------------------------------------------
5 Years 9.10 9.90
--------------------------------------------------------------------------------
1 Year 3.44 -0.48
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.06%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer International
Value Fund MSCI EAFE ND Index
5/31/2005 $5,000,000 $5,000,000
5/31/2006 $6,545,902 $6,412,160
5/31/2007 $8,214,117 $8,133,246
5/31/2008 $7,951,309 $7,927,325
5/31/2009 $5,095,104 $5,025,274
5/31/2010 $5,182,762 $5,357,605
5/31/2011 $6,640,097 $6,986,695
5/31/2012 $5,262,478 $5,555,503
5/31/2013 $6,767,709 $7,312,001
5/31/2014 $7,745,502 $8,631,309
5/31/2015 $8,011,617 $8,589,856
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted. The performance data quoted represents past
performance, which is no guarantee of future results.
Investment return and principal value will fluctuate, and shares, when redeemed,
may be worth more or less than their original cost.
Class Y shares were first publicly offered on April 16, 2009. Performance shown
for periods prior to the inception of Class Y shares on April 16, 2009, reflects
the NAV performance of the Fund's Class A shares. The performance does not
reflect differences in expenses, including the Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares are generally higher than those of
Class Y shares, the performance for Class Y shares prior to their inception
would have been higher than the performance shown. For the period beginning
April 16, 2009, the actual performance of Class Y shares is reflected. Class Y
shares are not subject to sales charges and are available for limited groups of
eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The 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.
14 Pioneer International Value Fund | Semiannual Report | 5/31/15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer International Value Fund
Based on actual returns from December 1, 2014 through May 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 12/1/14
--------------------------------------------------------------------------------
Ending Account $1,060.90 $1,055.90 $1,063.00
Value (after expenses)
on 5/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 7.45 $ 12.05 $ 5.14
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.45%, 2.35%,
and 1.00%, multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period).
Pioneer International Value Fund | Semiannual Report | 5/31/15 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads), or redemption fees that are charged at the time of the
transaction. Therefore, the table below is useful in comparing ongoing costs
only and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs were included, your
costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer International Value Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from December 1, 2014 through May 31, 2015.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 12/1/14
--------------------------------------------------------------------------------
Ending Account $1,017.70 $1,013.21 $1,019.95
Value (after expenses)
on 5/31/15
--------------------------------------------------------------------------------
Expenses Paid $ 7.29 $ 11.80 $ 5.04
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.45%, 2.35%,
and 1.00%, multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period).
16 Pioneer International Value Fund | Semiannual Report | 5/31/15
Schedule of Investments | 5/31/15 (unaudited)
----------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------
COMMON STOCKS -- 96.4%
ENERGY -- 3.7%
Oil & Gas Equipment & Services -- 1.2%
26,200 Schlumberger, Ltd. $ 2,378,174
----------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.0%
113,000 BG Group Plc $ 1,965,349
----------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.5%
230,000 Encana Corp. $ 2,913,826
--------------
Total Energy $ 7,257,349
----------------------------------------------------------------------------------------------
MATERIALS -- 8.7%
Commodity Chemicals -- 2.3%
232,400 Kuraray Co., Ltd. $ 3,044,695
27,100 Methanex Corp. 1,503,571
--------------
$ 4,548,266
----------------------------------------------------------------------------------------------
Diversified Chemicals -- 1.4%
928,800 Incitec Pivot, Ltd. $ 2,821,101
----------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 2.1%
9,200 Syngenta AG $ 4,214,142
----------------------------------------------------------------------------------------------
Specialty Chemicals -- 1.6%
69,200 Croda International Plc $ 3,096,824
----------------------------------------------------------------------------------------------
Paper Packaging -- 1.3%
223,600 Amcor, Ltd. $ 2,470,326
--------------
Total Materials $ 17,150,659
----------------------------------------------------------------------------------------------
CAPITAL GOODS -- 12.7%
Agricultural & Farm Machinery -- 1.0%
121,000 Kubota Corp. $ 2,009,079
----------------------------------------------------------------------------------------------
Building Products -- 2.8%
35,400 Daikin Industries, Ltd. $ 2,705,208
165,000 TOTO, Ltd. 2,721,438
--------------
$ 5,426,646
----------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 1.6%
41,200 Schneider Electric SE $ 3,125,330
----------------------------------------------------------------------------------------------
Heavy Electrical Equipment -- 1.4%
203,000 Mitsubishi Electric Corp. $ 2,771,950
----------------------------------------------------------------------------------------------
Industrial Conglomerates -- 2.9%
102,000 Koninklijke Philips NV $ 2,780,405
27,900 Siemens AG 2,935,725
--------------
$ 5,716,130
----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/15 17
Schedule of Investments | 5/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------
Industrial Machinery -- 3.0%
133,400 Fujitec Co., Ltd. $ 1,551,755
52,000 GEA Group AG 2,528,758
72,500 Nabtesco Corp. 1,863,792
--------------
$ 5,944,305
--------------
Total Capital Goods $ 24,993,440
----------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 2.1%
Tires & Rubber -- 1.2%
60,100 Bridgestone Corp. $ 2,496,076
----------------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.9%
18,400 Daimler AG $ 1,724,090
--------------
Total Automobiles & Components $ 4,220,166
----------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 4.5%
Consumer Electronics -- 1.0%
137,900 Panasonic Corp. $ 2,022,833
----------------------------------------------------------------------------------------------
Homebuilding -- 3.1%
102,900 Persimmon Plc $ 3,092,657
227,200 Sekisui Chemical Co., Ltd. 3,060,558
--------------
$ 6,153,215
----------------------------------------------------------------------------------------------
Textiles -- 0.4%
566,000 Pacific Textiles Holdings, Ltd. $ 792,494
--------------
Total Consumer Durables & Apparel $ 8,968,542
----------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 1.3%
Restaurants -- 1.3%
206,700 Domino's Pizza Group Plc $ 2,517,935
--------------
Total Consumer Services $ 2,517,935
----------------------------------------------------------------------------------------------
MEDIA -- 0.9%
Advertising -- 0.9%
23,200 Publicis Groupe SA $ 1,863,284
--------------
Total Media $ 1,863,284
----------------------------------------------------------------------------------------------
RETAILING -- 1.2%
Apparel Retail -- 1.2%
61,100 Hennes & Mauritz AB $ 2,409,294
--------------
Total Retailing $ 2,409,294
----------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.7%
Drug Retail -- 1.7%
62,800 Sundrug Co., Ltd. $ 3,309,933
----------------------------------------------------------------------------------------------
Hypermarkets & Super Centers -- 1.0%
259,900 Distribuidora Internacional de Alimentacion SA $ 2,072,189
--------------
Total Food & Staples Retailing $ 5,382,122
----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer International Value Fund | Semiannual Report | 5/31/15
----------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 5.2%
Soft Drinks -- 1.0%
46,000 Suntory Beverage & Food, Ltd.* $ 1,917,865
----------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 4.2%
39,100 Danone SA $ 2,686,705
43,400 Kerry Group Plc 3,238,080
54,900 Unilever NV 2,342,773
--------------
$ 8,267,558
--------------
Total Food, Beverage & Tobacco $ 10,185,423
----------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.6%
Household Products -- 2.6%
31,300 Henkel AG & Co. KGaA $ 3,215,420
90,800 Unicharm Corp. 2,001,413
--------------
$ 5,216,833
--------------
Total Household & Personal Products $ 5,216,833
----------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 3.2%
Health Care Supplies -- 1.3%
67,600 Hoya Corp. $ 2,486,065
----------------------------------------------------------------------------------------------
Health Care Services -- 1.9%
59,400 Fresenius SE & Co. KGaA $ 3,787,198
--------------
Total Health Care Equipment & Services $ 6,273,263
----------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 9.4%
Pharmaceuticals -- 7.7%
168,900 Astellas Pharma, Inc. $ 2,452,468
43,700 Novartis AG 4,498,116
11,406 Roche Holding AG 3,358,792
56,500 Shire Plc 4,893,110
--------------
$ 15,202,486
----------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 1.7%
58,800 Gerresheimer AG $ 3,355,295
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 18,557,781
----------------------------------------------------------------------------------------------
BANKS -- 8.8%
Diversified Banks -- 8.8%
292,223 Banco Bilbao Vizcaya Argentaria SA $ 2,886,826
761,500 Barclays Plc 3,144,469
52,200 BNP Paribas SA 3,162,685
96,000 National Australia Bank, Ltd. 2,508,311
59,000 Sumitomo Mitsui Financial Group, Inc. 2,673,362
123,700 Swedbank AB 2,903,558
--------------
$ 17,279,211
--------------
Total Banks $ 17,279,211
----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/15 19
Schedule of Investments | 5/31/15 (unaudited) (continued)
----------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.6%
Diversified Capital Markets -- 1.6%
151,300 UBS Group AG $ 3,255,722
--------------
Total Diversified Financials $ 3,255,722
----------------------------------------------------------------------------------------------
INSURANCE -- 5.7%
Insurance Brokers -- 1.2%
24,200 Aon Plc* $ 2,449,524
----------------------------------------------------------------------------------------------
Multi-line Insurance -- 3.5%
127,300 AXA SA $ 3,217,378
11,500 Zurich Insurance Group AG 3,674,723
--------------
$ 6,892,101
----------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 1.0%
18,400 ACE, Ltd. $ 1,959,232
--------------
Total Insurance $ 11,300,857
----------------------------------------------------------------------------------------------
REAL ESTATE -- 7.0%
Diversified REIT -- 2.9%
1,665,215 Hibernia Real Estate Investment Trust plc $ 2,377,949
507,700 Hibernia Real Estate Investment Trust plc* 716,090
44,172 Wereldhave NV 2,674,664
--------------
$ 5,768,703
----------------------------------------------------------------------------------------------
Industrial REIT -- 1.4%
560,600 Goodman Group $ 2,794,884
----------------------------------------------------------------------------------------------
Diversified Real Estate Activities -- 1.4%
91,000 Mitsui Fudosan Co., Ltd. $ 2,644,992
----------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 1.3%
83,385 Deutsche Annington Immobilien SE* $ 2,640,949
--------------
Total Real Estate $ 13,849,528
----------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 6.7%
Electronic Equipment Manufacturers -- 2.7%
371,100 Hitachi, Ltd. $ 2,532,243
1,086,000 PAX Global Technology, Ltd.* 1,963,770
512,000 Wasion Group Holdings, Ltd. 791,361
--------------
$ 5,287,374
----------------------------------------------------------------------------------------------
Electronic Components -- 4.0%
78,700 Alps Electric Co., Ltd. $ 2,008,009
18,000 Murata Manufacturing Co., Ltd. 2,921,504
210,600 Yaskawa Electric Corp. 2,947,111
--------------
$ 7,876,624
--------------
Total Technology Hardware & Equipment $ 13,163,998
----------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer International Value Fund | Semiannual Report | 5/31/15
----------------------------------------------------------------------------------------------
Shares Value
----------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 0.8%
Semiconductors -- 0.8%
33,700 SK Hynix, Inc. $ 1,535,828
--------------
Total Semiconductors & Semiconductor Equipment $ 1,535,828
----------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.8%
Integrated Telecommunication Services -- 1.0%
28,500 Nippon Telegraph & Telephone Corp. $ 1,981,543
----------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 3.8%
114,000 KDDI Corp. $ 2,561,426
27,700 SoftBank Corp. 1,654,514
848,118 Vodafone Group Plc 3,318,437
--------------
$ 7,534,377
--------------
Total Telecommunication Services $ 9,515,920
----------------------------------------------------------------------------------------------
UTILITIES -- 2.8%
Electric Utilities -- 1.7%
22,800 Red Electrica Corp SA $ 1,918,712
57,300 SSE Plc 1,461,512
--------------
$ 3,380,224
----------------------------------------------------------------------------------------------
Gas Utilities -- 1.1%
84,300 Gas Natural SDG SA $ 2,074,560
--------------
Total Utilities $ 5,454,784
----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $169,843,911) $ 190,351,939
----------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 96.4%
(Cost $169,843,911) (a) (b) $ 190,351,939
----------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 3.6% $ 7,007,579
----------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 197,359,518
==============================================================================================
* Non-income producing security.
REIT Real Estate Investment Trust.
(a) At May 31, 2015, the net unrealized appreciation (depreciation) on
investments based on cost for federal income tax purposes of $171,226,636
was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 38,375,134
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (19,249,831)
--------------
Net unrealized appreciation $ 19,125,303
==============
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended May 31, 2015, aggregated to $121,151,531 and $130,723,742,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/15 21
Schedule of Investments | 5/31/15 (unaudited) (continued)
(b) Distributions of investments by country of issue (excluding temporary cash
investments) as a percentage of total investment in securities, is as
follows:
Japan 30.6%
United Kingdom 11.1
Switzerland 11.0
Germany 10.6
France 7.4
Australia 5.6
Spain 4.7
Netherlands 4.1
Ireland 3.3
Sweden 2.8
Jersey Channel Islands 2.6
Canada 2.3
Curacao 1.2
Bermuda 1.0
Other (individually less than 1%) 1.7
-----
100.0%
=====
TOTAL RETURN SWAP AGREEMENT
---------------------------------------------------------------------------------------------------
Net
Notional Pay / Obligation Expiration Unrealized
Principal Counterparty Receive Entity/Index Coupon Date Appreciation
---------------------------------------------------------------------------------------------------
JPY 112,506 Citibank NA Pay JPX-NIKKEI 1M LIBOR 6/5/15 $774,015
INDEX 400 +53 bps
NOTE: Principal amounts are denominated in U.S. Dollars unless otherwise noted:
JPY Japanese Yen
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (Including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (Including the Fund's own
assumptions in determining fair value of investments) See Notes to
Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
are categorized as Level 3. See Notes to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
22 Pioneer International Value Fund | Semiannual Report | 5/31/15
The following is a summary of the inputs used as of May 31, 2015, in valuing the
Fund's investments:
-----------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------
Common Stocks
Energy
Oil & Gas Equipment
& Services $ 2,378,174 $ -- $ -- $ 2,378,174
Oil & Gas Exploration
& Production 2,913,826 -- -- 2,913,826
Materials
Commodity Chemicals 1,503,571 3,044,695 -- 4,548,266
Insurance
Insurance Brokers 2,449,524 -- -- 2,449,524
Property & Casualty
Insurance 1,959,232 -- -- 1,959,232
All Other
Common Stocks* -- 176,102,917 -- 176,102,917
-----------------------------------------------------------------------------------
Total $ 11,204,327 $179,147,612 -- $190,351,939
===================================================================================
Other Financial Instruments
Net unrealized depreciation
on futures contracts $ (1,161,651) $ -- $ -- $ (1,161,651)
Net unrealized appreciation
on swap contracts -- 774,015 -- 774,015
Net unrealized depreciation
on spot contracts -- (560) -- (560)
-----------------------------------------------------------------------------------
Total Other
Financial Instruments $ (1,161,651) $ 773,455 $ -- $ (388,196)
===================================================================================
* Level 2 securities are valued using inputs/data furnished by independent
pricing services using fair value factors.
During the six months ended May 31, 2015, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/15 23
Schedule of Investments | 5/31/15 (unaudited) (continued)
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of May 31, 2015:
---------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
---------------------------------------------------------------------------------------------
Assets:
Futures collateral $ -- $453,900 $ -- $ 453,900
Foreign currencies, at value -- 242,273 -- 242,273
Variation margin for
future contracts 44,008 -- -- 44,008
Liabilities:
Swap collateral -- (238,617) -- (238,617)
---------------------------------------------------------------------------------------------
Total $44,008 $457,556 $ -- $ 501,564
=============================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer International Value Fund | Semiannual Report | 5/31/15
Statement of Assets and Liabilities | 5/31/15 (unaudited)
ASSETS:
Investment in securities (cost $169,843,911) $ 190,351,939
Cash 5,929,809
Foreign currencies, at value (cost $247,675) 242,273
Futures collateral 453,900
Receivables --
Investment securities sold 3,275,448
Fund shares sold 21,385
Dividends and foreign taxes withheld 1,369,532
Interest 8,072
Variation margin for future contracts 44,008
Unrealized appreciation on swap contracts 774,015
Prepaid expenses 30,830
---------------------------------------------------------------------------------------------
Total assets $ 202,501,211
=============================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 3,542,919
Fund shares repurchased 34,085
Dividends 120
Swap collateral 238,617
Net unrealized depreciation on futures contracts 1,161,651
Unrealized depreciation on spot contracts 560
Due to affiliates 70,106
Due to Pioneer Investment Management, Inc. 3,257
Trustee fees 1,093
Accrued expenses 89,285
---------------------------------------------------------------------------------------------
Total liabilities $ 5,141,693
=============================================================================================
NET ASSETS:
Paid-in capital $ 289,071,048
Undistributed net investment income 903,765
Accumulated net realized loss on investments, futures contracts,
swap contracts and foreign currency transactions (112,637,280)
Net unrealized appreciation on investments 20,508,028
Net unrealized depreciation on futures contracts (1,161,651)
Net unrealized appreciation on swap contracts 774,015
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (98,407)
---------------------------------------------------------------------------------------------
Total net assets $ 197,359,518
=============================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $86,019,091/3,844,406 shares) $ 22.38
Class C (based on $12,222,579/621,958 shares) $ 19.65
Class Y (based on $99,117,848/4,423,108 shares) $ 22.41
MAXIMUM OFFERING PRICE:
Class A ($22.38 (divided by) 94.25%) $ 23.75
=============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/15 25
Statement of Operations (unaudited)
For the Six Months Ended 5/31/15
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $222,023) $ 2,881,166
----------------------------------------------------------------------------------------------------------
Total investment income $ 2,881,166
----------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 810,417
Transfer agent fees and expenses
Class A 120,955
Class C 15,394
Class Y 323
Distribution fees
Class A 103,080
Class C 55,948
Shareholder communications expense 58,055
Administrative reimbursement 32,603
Custodian fees 23,644
Registration fees 24,996
Professional fees 25,831
Printing expense 8,781
Fees and expenses of nonaffiliated Trustees 3,473
Miscellaneous 20,921
----------------------------------------------------------------------------------------------------------
Total expenses $ 1,304,421
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (90,839)
----------------------------------------------------------------------------------------------------------
Net expenses $ 1,213,582
----------------------------------------------------------------------------------------------------------
Net investment income $ 1,667,584
----------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FUTURES CONTRACTS, SWAP CONTRACTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 1,486,564
Futures contracts (2,407,411)
Swap contracts 1,848,706
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (542,344) $ 385,515
----------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 9,014,220
Futures contracts (188,545)
Swap contracts 346,016
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 13,652 $ 9,185,343
----------------------------------------------------------------------------------------------------------
Net gain on investments, futures contracts, written options,
swap contracts and foreign currency transactions $ 9,570,858
----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 11,238,442
==========================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer International Value Fund | Semiannual Report | 5/31/15
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------------------------
Six Months
Ended
5/31/15 Year Ended
(unaudited) 11/30/14
----------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,667,584 $ 9,120,807
Net realized gain on investments and foreign
currency transactions 385,515 36,572,326
Change in net unrealized appreciation (depreciation)
on investments and foreign currency transactions 9,185,343 (34,569,935)
----------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ 11,238,442 $ 11,123,198
----------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($1.23 and $0.50 per share, respectively) $ (4,545,498) $ (1,912,284)
Class B* ($0.00 and $0.28 per share, respectively) -- (41,082)
Class C ($1.06 and $0.34 per share, respectively) (607,330) (190,074)
Class Y ($1.31 and $0.59 per share, respectively) (5,990,875) (5,869,819)
----------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (11,143,703) $ (8,013,259)
----------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 15,132,299 $ 21,441,174
Reinvestment of distributions 5,077,184 4,707,605
Cost of shares repurchased (19,917,067) (157,345,597)
----------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ 292,416 $ (131,196,818)
----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 387,155 $ (128,086,879)
NET ASSETS:
Beginning of period 196,972,363 325,059,242
----------------------------------------------------------------------------------------------------------
End of period $ 197,359,518 $ 196,972,363
----------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 903,765 $ 10,379,884
==========================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/15 27
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------------
'15 Shares '15 Amount
(unaudited) (unaudited) '14 Shares '14 Amount
------------------------------------------------------------------------------------------------------
Class A
Shares sold 450,914 $ 9,940,887 418,347 $ 9,403,427
Reinvestment of distributions 208,182 4,326,027 80,981 1,812,361
Less shares repurchased (553,906) (12,088,702) (610,364) (13,731,684)
------------------------------------------------------------------------------------------------------
Net increase 105,190 $ 2,178,212 (111,036) $ (2,515,896)
======================================================================================================
Class B*
Shares sold or exchanged -- $ -- 6,745 $ 140,554
Reinvestment of distributions -- -- 1,987 40,465
Less shares repurchased -- -- (161,834) (3,250,196)
------------------------------------------------------------------------------------------------------
Net decrease -- $ -- (153,102) $ (3,069,177)
======================================================================================================
Class C
Shares sold 161,351 $ 3,115,798 128,228 $ 2,556,183
Reinvestment of distributions 30,978 567,517 8,833 175,685
Less shares repurchased (122,011) (2,324,543) (129,224) (2,565,734)
------------------------------------------------------------------------------------------------------
Net increase (decrease) 70,318 $ 1,358,772 7,837 $ 166,134
======================================================================================================
Class Y
Shares sold 96,767 $ 2,075,614 414,758 $ 9,341,010
Reinvestment of distributions 8,837 183,640 119,763 2,679,094
Less shares repurchased (258,825) (5,503,822) (5,908,934) (137,797,983)
------------------------------------------------------------------------------------------------------
Net decrease (153,221) $ (3,244,568) (5,374,413) $ (125,777,879)
======================================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
The accompanying notes are an integral part of these financial statements.
28 Pioneer International Value Fund | Semiannual Report | 5/31/15
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/15 Ended Ended Ended Ended Ended
(unaudited) 11/30/14 11/30/13 11/30/12 11/30/11 11/30/10
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 22.34 $ 22.49 $ 18.67 $ 17.99 $ 18.72 $ 19.16
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.19 $ 0.63 $ 0.27 $ 0.36 $ 0.37 $ 0.24
Net realized and unrealized gain (loss) on investments 1.08 (0.28) 3.87 0.58 (0.88) (0.61)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.27 $ 0.35 $ 4.14 $ 0.94 $ (0.51) $ (0.37)
------------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (1.23) $ (0.50) $ (0.32) $ (0.26) $ (0.22) $ (0.07)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.23) $ (0.50) $ (0.32) $ (0.26) $ (0.22) $ (0.07)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.04 $ (0.15) $ 3.82 $ 0.68 $ (0.73) $ (0.44)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 22.38 $ 22.34 $ 22.49 $ 18.67 $ 17.99 $ 18.72
====================================================================================================================================
Total return* 6.09% 1.55% 22.50% 5.38% (2.84)% (1.94)%
Ratio of net expenses to average net assets 1.45%** 1.46%(a) 1.45% 1.45% 1.45% 1.45%
Ratio of net investment income (loss) to average net assets 1.58%** 2.72% 1.26% 1.89% 1.80% 1.18%
Portfolio turnover rate 132%** 100% 101% 61% 66% 66%
Net assets, end of period (in thousands) $ 86,019 $ 83,544 $86,602 $75,784 $79,559 $ 89,145
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 1.67%** 1.70%(a) 1.69% 1.82% 1.77% 1.76%
Net investment income (loss) 1.36%** 2.48% 1.02% 1.53% 1.48% 0.86%
====================================================================================================================================
* 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.
(a) Includes interest expense of 0.01%.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/15 29
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/15 Ended Ended Ended Ended Ended
(unaudited) 11/30/14 11/30/13 11/30/12 11/30/11 11/30/10
--------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 19.69 $ 19.91 $ 16.57 $ 15.97 $ 16.64 $ 17.12
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.08 $ 0.35 $ 0.08 $ 0.18 $ 0.19 $ 0.06
Net realized and unrealized gain (loss) on investments 0.94 (0.23) 3.44 0.53 (0.80) (0.54)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.02 $ 0.12 $ 3.52 $ 0.71 $ (0.61) $ (0.48)
--------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (1.06) $ (0.34) $ (0.18) $ (0.11) $ (0.06) $ --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.06) $ (0.34) $ (0.18) $ (0.11) $ (0.06) $ --
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.04) $ (0.22) $ 3.34 $ 0.60 $ (0.67) $ (0.48)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 19.65 $ 19.69 $ 19.91 $ 16.57 $ 15.97 $ 16.64
================================================================================================================================
Total return* 5.59% 0.60% 21.43% 4.48% (3.71)% (2.80)%
Ratio of net expenses to average net assets 2.35%** 2.36%(a) 2.35% 2.35% 2.35% 2.35%
Ratio of net investment income (loss) to average net assets 0.69%** 1.78% 0.36% 0.99% 0.90% 0.26%
Portfolio turnover rate 132%** 100% 101% 61% 66% 66%
Net assets, end of period (in thousands) $12,223 $10,865 $10,826 $ 9,910 $10,523 $ 12,126
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses 2.38%** 2.44%(a) 2.41% 2.63% 2.52% 2.58%
Net investment income (loss) 0.66%** 1.70% 0.30% 0.71% 0.73% 0.02%
================================================================================================================================
* 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.
(a) Includes interest expense of 0.01%.
The accompanying notes are an integral part of these financial statements.
30 Pioneer International Value Fund | Semiannual Report | 5/31/15
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/15 Ended Ended Ended Ended Ended
(unaudited) 11/30/14 11/30/13 11/30/12 11/30/11 11/30/10
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 22.41 $ 22.56 $ 18.73 $ 18.07 $ 18.80 $ 19.22
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.23 $ 1.29 $ 0.37 $ 0.41 $ 0.44 $ 0.30
Net realized and unrealized gain (loss) on investments 1.08 (0.85) 3.87 0.60 (0.87) (0.59)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.31 $ 0.44 $ 4.24 $ 1.01 $ (0.43) $ (0.29)
------------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (1.31) $ (0.59) $ (0.41) $ (0.35) $ (0.30) $ (0.13)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.31) $ (0.59) $ (0.41) $ (0.35) $ (0.30) $ (0.13)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ -- $ (0.15) $ 3.83 $ 0.66 $ (0.73) $ (0.42)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 22.41 $ 22.41 $ 22.56 $ 18.73 $ 18.07 $ 18.80
====================================================================================================================================
Total return* 6.30% 1.94% 23.02% 5.79% (2.39)% (1.51)%
Ratio of net expenses to average net assets 1.00%** 1.06%(a) 1.04% 1.01% 1.01% 1.01%
Ratio of net investment income (loss) to average net assets 2.02%** 3.89% 1.69% 2.35% 2.26% 1.63%
Portfolio turnover rate 132%** 100% 101% 61% 66% 66%
Net assets, end of period (in thousands) $ 99,118 $102,563 $224,523 $216,217 $189,321 $195,147
====================================================================================================================================
* 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.
(a) Includes interest expense of 0.01%.
The accompanying notes are an integral part of these financial statements.
Pioneer International Value Fund | Semiannual Report | 5/31/15 31
Notes to Financial Statements | 5/31/15 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer International Value Fund (the Fund) is the sole portfolio comprising
Pioneer Series Trust VIII, a Delaware statutory trust. The Fund is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is long-term growth of
capital.
During the periods covered by this report, the Fund offered three classes of
shares designated as Class A, Class C and Class Y shares. Class Y shares
commenced operations on April 15, 2009. The Fund ceased to offer Class B shares
on November 10, 2014. Class B shares were converted to Class A shares as of the
close of business on November 10, 2014. Each class of shares represents an
interest in the same portfolio of investments of the Fund and has identical
rights (based on relative net asset values) to assets and liquidation proceeds.
Share classes can bear different rates of class-specific fees and expenses such
as transfer agent and distribution fees. Differences in class-specific fees and
expenses will result in differences in net investment income and, therefore, the
payment of different dividends from net investment income earned by each class.
The Amended and Restated Declaration of Trust of the Fund gives the Board the
flexibility to specify either per-share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per-share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gain or loss on investments during the reporting period.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
32 Pioneer International Value Fund | Semiannual Report | 5/31/15
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 that have traded on an exchange
are valued using 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 available, generally are valued
using the mean between the last bid and asked prices. Shares of money
market mutual funds are valued at such funds' net asset value.
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
daily adjustments to the valuation of securities of non-U.S. issuers by
utilizing an independent pricing service that supplies an appropriate fair
value factor is appropriate for the Fund.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair value on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
Pioneer International Value Fund | Semiannual Report | 5/31/15 33
At May 31, 2015, there were no securities valued using fair value methods
(other than securities valued using prices supplied by independent pricing
services or broker-dealers).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country
rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated in the Statement of Operations from
the effects of changes in the market price of those securities but are
included with the net realized and unrealized gain or loss on investments.
D. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
are recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 6).
34 Pioneer International Value Fund | Semiannual Report | 5/31/15
E. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of November 30, 2014, the Fund did not accrue any interest or penalties
with respect to uncertain tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years remain subject to examination by
federal and state tax authorities.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During
the year ended November 30, 2014, the Fund paid no such taxes.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the years ended November 30, 2014 were as follows:
---------------------------------------------------------------------------
2014
---------------------------------------------------------------------------
Distribution paid from:
Ordinary income $8,013,259
---------------------------------------------------------------------------
Total $8,013,259
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2014:
---------------------------------------------------------------------------
2014
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 11,006,670
Capital loss carryforward (111,838,946)
Net unrealized appreciation 9,026,007
---------------------------------------------------------------------------
Total $ (91,806,269)
===========================================================================
Pioneer International Value Fund | Semiannual Report | 5/31/15 35
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales, adjustments
relating to PFICs, and the mark to market of swaps and futures contracts.
F. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredit S.p.A.
(UniCredit), earned $6,985 in underwriting commissions on the sale of Class
A shares during the six months ended May 31, 2015.
G. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services are allocated among the classes of
shares based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
H. Risks
Investing in foreign and/or emerging markets securities involves risks
relating to interest rates, currency exchange rates and economic and
political conditions. The Fund may invest a substantial amount of its
assets in issuers located in a limited number of countries and therefore is
susceptible to adverse economic, political or regulatory developments
affecting those countries. At times, the Fund's investments may represent
industries or industry sectors that are interrelated or have common risks,
making the Fund more susceptible to any economic, political, or regulatory
developments or other risks affecting those industries and sectors. The
Fund's prospectus contains unaudited information regarding the Fund's
principal risks. Please refer to that document when considering the Fund's
principal risks.
36 Pioneer International Value Fund | Semiannual Report | 5/31/15
I. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a subcustodian of the
Fund. PIM is responsible for determining that the value of the collateral
remains at least equal to the repurchase price. During the six months ended
May 31, 2015, the Fund had no open repurchase agreements.
J. Futures Contracts
The Fund may enter into futures transactions in order to attempt to hedge
against changes in interest rates, securities prices and currency exchange
rates or to seek to increase total return. Futures contracts are types of
derivatives. All futures contracts entered into by the Fund are traded on a
futures exchange. Upon entering into a futures contract, the Fund is
required to deposit with a broker an amount of cash or securities equal to
the minimum "initial margin" requirements of the associated futures
exchange. The amount of cash deposited with the broker as collateral at May
31, 2015 was $453,900. Subsequent payments for futures contracts
("variation margin") are paid or received by the Fund, depending on the
daily fluctuation in the value of the contracts, and are recorded by the
Fund as unrealized gains or losses. When the contract is closed, the Fund
realizes a gain or loss equal to the difference between the opening and
closing value of the contract as well as any fluctuation in foreign
currency exchange rates where applicable. Futures contracts are subject to
market risk, interest rate risk and currency exchange rate risk. Changes in
value of the contracts may not directly correlate to the changes in value
of the underlying securities. With futures, there is minimal counterparty
credit risk to the Fund since futures are exchange-traded and the
exchange's clearinghouse, as counterparty to all exchange-traded futures,
guarantees the futures against default. The average value of contracts open
during the six months ended May 31, 2015 was $12,955,967.
At May 31, 2015, open futures contracts were as follows:
---------------------------------------------------------------------------
Number of
Contracts Settlement Unrealized
Type Long/(Short) Month Value Depreciation
---------------------------------------------------------------------------
TOPIX Index Future (103) 6/15 ($13,875,045) ($1,161,651)
---------------------------------------------------------------------------
Total ($1,161,651)
===========================================================================
Pioneer International Value Fund | Semiannual Report | 5/31/15 37
K. Total Return Swap Agreements
The Fund may enter into a total return swap to attempt to manage and/or
gain exposure to a security or market. Pursuant to a total return swap
agreement, the Fund negotiates with a counterparty to exchange a periodic
stream of payments. One party makes payments based on the total return of a
reference asset (such as a security or a basket of securities or securities
index), and in return receives fixed or floating rate interest payments.
The total return of the reference asset typically includes appreciation or
depreciation on the reference asset, plus any interest or dividend
payments. To the extent that the total return of the reference asset
exceeds or falls short of the offsetting interest rate obligation, the Fund
will receive a payment from or make a payment to the counterparty.
Total return swap contracts are marked-to-market daily using valuations
supplied by independent sources and the change in value, if any, is
recorded as unrealized appreciation or depreciation in the Statement of
Assets and Liabilities. Payments received or made are recorded as realized
gains or losses in the Statement of Operations. Total return swap contracts
are subject to counterparty risk and unanticipated movements in value of
exchange rates, interest rates, securities or the index.
Open total return swap contracts at May 31, 2015 are listed in the Schedule
of Investments. The average value of swap contracts open during the six
months ended May 31, 2015 was $369,723.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.85% of
the Fund's average daily net assets up to $500 million and 0.75% of the excess
over $500 million. For the six months ended May 31, 2015, the effective
management fee (excluding waivers and/or assumptions of expenses) was equivalent
to 0.85% of the Fund's average daily net assets.
PIM has contractually agreed to limit ordinary operating expenses to the extent
required to reduce Fund expenses to 1.45% and 2.35%, of the average daily net
assets attributable to Class A and Class C shares, respectively. Fees waived and
expenses reimbursed during the six months ended May 31, 2015 are reflected on
the Statement of Operations. Class Y shares do not have an expense limitation.
These expense limitations are in effect through April 1, 2016. There can be no
assurance that PIM will extend the expense limitation agreement for a class of
shares beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements.
38 Pioneer International Value Fund | Semiannual Report | 5/31/15
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $19,043 in management fees, administrative costs and certain
other reimbursements payable to PIM at May 31, 2015.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the six months ended May 31, 2015, such out-of-pocket expenses by class of
shares were as follows:
-------------------------------------------------------------------------------
Shareholder Communications:
-------------------------------------------------------------------------------
Class A $51,689
Class C 6,366
-------------------------------------------------------------------------------
Total $58,055
===============================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $47,332 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at May 31, 2015.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A and Class C shares.
Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets
attributable to Class A shares as compensation for personal services and/or
account maintenance services or distribution services with regard to Class A
shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the average daily
net assets attributable to Class C shares. The fee for Class C shares consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class C shares. Included in "Due to affiliates" reflected on the
Statement of Assets and Liabilities is $3,731 in distribution fees payable to
PFD at May 31, 215.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an
Pioneer International Value Fund | Semiannual Report | 5/31/15 39
exchange remain subject to any CDSC that applied to the original purchase of
those shares. There is no CDSC for Class Y shares. Proceeds from the CDSCs are
paid to PFD. For the six months ended May 31, 2015, CDSCs in the amount of
$13,808 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses, due to interest earned
on cash held by PIMSS. For the six months ended May 31, 2015, the Fund's
expenses were not reduced under such arrangements.
6. Forward Foreign Currency Contracts
At May 31, 2015, the Fund had entered into various forward foreign currency
contracts that obligate the Fund to deliver or take delivery of currencies at
specified future maturity dates. Alternatively, prior to the settlement date of
a forward foreign currency contract, the Fund may close out such contract by
entering into an offsetting contract. The average value of forward foreign
currency contracts open during the six months ended May 31, 2015 was $785,684.
There are no open forward foreign currency contracts at May 31, 2015.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect during the six months ended May 31, 2015, was in the
amount of $215 million. Under such facility, depending on the type of loan,
interest on borrowings is payable at the London Interbank Offered Rate (LIBOR)
plus 0.85% (0.90% prior to February 12, 2014) on an annualized basis, or the
Alternate Base Rate, which is the greater of (a) the facility's administrative
agent's daily announced prime rate on the borrowing date, (b) 2% plus the
Federal Funds Rate on the borrowing date and (c) 2% plus the overnight Euro
dollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the six months ended May 31, 2015, the Fund had no outstanding
borrowings.
40 Pioneer International Value Fund | Semiannual Report | 5/31/15
8. Assets and Liabilities Offsetting
Financial instruments subject to an enforceable master netting agreement have
been offset on the Statement of Assets and Liabilities. The following charts
show gross assets and liabilities of the Fund as of May 31, 2015.
--------------------------------------------------------------------------------------------------
Assets:
Net
Gross Amounts Gross Amounts
Amounts of Assets Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement -------------------------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Assets Liabilities Liabilities Instruments Received Amount
--------------------------------------------------------------------------------------------------
Swap contracts $774,015 $ -- $774,015 $-- $(238,617) $535,398
--------------------------------------------------------------------------------------------------
$774,015 $ -- $774,015 $-- $(238,617) $535,398
==================================================================================================
--------------------------------------------------------------------------------------------------
Liabilities:
Net
Gross Amounts Gross Amounts
Amounts of Assets Not Offset in
Offset Presented the Statement of
in the in the Assets and Liabilities
Gross Statement Statement -------------------------------------
Amounts of of Assets of Assets Cash
Recognized and and Financial Collateral Net
Description Liabilities Liabilities Liabilities Instruments Pledged Amount
--------------------------------------------------------------------------------------------------
Swap contracts $ -- $ -- $ -- $ -- $ -- $ --
--------------------------------------------------------------------------------------------------
$ -- $ -- $ -- $ -- $ -- $ --
==================================================================================================
9. Additional Disclosures about Derivative Instruments and Hedging Activities
Values of derivative instruments as of May 31, 2015 were as follows:
------------------------------------------------------------------------------------------------
Derivatives Not
Accounted for as Asset Derivatives 2015 Liabilities Derivatives 2015
Hedging Instruments --------------------------------------------------------------
Under Accounting Statement of Assets Statement of Assets
Standards Codification and Liabilities and Liabilities
(ASC) 815 Location Value Location Value
------------------------------------------------------------------------------------------------
Swap contracts Net unrealized Net unrealized
appreciation on depreciation on
swap contracts $ 774,015 swap contracts $ --
Futures contracts Net unrealized Net unrealized
appreciation on depreciation on
futures contracts -- futures contracts 1,161,651
------------------------------------------------------------------------------------------------
Total $ 774,015 $ 1,162,211
================================================================================================
Pioneer International Value Fund | Semiannual Report | 5/31/15 41
The effect of derivative instruments on the Statement of Operations for the six
months ended May 31, 2015 was as follows:
------------------------------------------------------------------------------------------------
Derivatives Not Realized Change in
Accounted for as Gain or Unrealized
Hedging Instruments (Loss) on Gain or (Loss)
Under Accounting Location of Gain or (Loss) Derivatives on Derivatives
Standards Codification on Derivatives Recognized Recognized Recognized
(ASC) 815 in Income in Income in Income
------------------------------------------------------------------------------------------------
Forward foreign Net realized gain (loss) on forward
currency contracts foreign currency contracts $ 11,921
Forward foreign Change in net unrealized
currency contracts appreciation (depreciation) on
forward foreign currency contracts $ 218
Futures contracts Net realized gain (loss) on
futures contracts $(2,407,411)
Futures contracts Change in net unrealized
appreciation (depreciation) on
futures contracts $(188,545)
Swap contracts Net realized gain (loss) on
swap contracts $ 1,848,706
Swap contracts Change in net unrealized
appreciation (depreciation) on
swap contracts $ 346,016
10. Change in Independent Registered Public Accounting Firm
The Board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Trust's
independent registered public accounting firm. Deloitte & Touche LLP replaced
Ernst & Young LLP, which resigned as the Trust's independent registered public
accounting firm, effective upon completion of the audit of the Trust's financial
statements for the fiscal year ended November 30, 2013.
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's fiscal years ending
November 30, 2013 and November 30, 2012, Ernst & Young LLP's reports on the
financial statements of the Fund have not contained an adverse opinion or
disclaimer of opinion and have not been qualified or modified as to uncertainty,
audit scope or accounting principles. Further, there have been no disagreements
with Ernst & Young LLP on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure, which, if not
resolved to the satisfaction of Ernst & Young LLP would have caused Ernst &
Young LLP to make reference to the subject matter of the disagreement in
connection with its report on the financial statements. In addition, there have
been no reportable events of the kind described in Item 304(a)(1)(v) of
Regulation S-K under the Securities Exchange Act of 1934.
42 Pioneer International Value Fund | Semiannual Report | 5/31/15
11. Conversion of Class B Shares
As of the close of business on November 10, 2014 (the "Conversion Date"), all
outstanding Class B shares of the Fund were converted to Class A shares.
12. Additional Information
PIM, the Fund's investment adviser, is currently an indirect, wholly-owned
subsidiary of UniCredit. On April 23, 2015, UniCredit announced that it signed a
preliminary and exclusive agreement with Banco Santander and affiliates of
Warburg Pincus and General Atlantic (the "Private Equity Firms") with respect to
Pioneer Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as described in the UniCredit announcement, will entail the
establishment of a holding company, with the name Pioneer Investments, to be
owned by UniCredit (50%) and the Private Equity Firms (50% between them). The
holding company will control Pioneer's U.S. operations, including the Adviser.
The holding company also will own 66.7% of Pioneer's and SAM's combined
operations outside the U.S., while Banco Santander will own directly the
remaining 33.3% stake. The completion of the Transaction is subject to the
signing of a definitive agreement, as well as certain regulatory and corporate
approvals, and other conditions.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's investment advisory agreement with the Adviser to terminate.
In connection with the Transaction, the Fund's Board of Trustees will be asked
to approve a new investment advisory agreement for the Fund. If approved by the
Board, the Fund's new investment advisory agreement will be submitted to the
shareholders of the Fund for their approval.
Pioneer International Value Fund | Semiannual Report | 5/31/15 43
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Ms. Monchak is a non-voting Advisory Trustee.
44 Pioneer International Value Fund | Semiannual Report | 5/31/15
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
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2015 Pioneer Investments 19390-09-0715
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
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.
Not applicable.
(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.
Not applicable.
(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.
Not applicable.
(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.
Not applicable.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Not applicable.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
Not applicable.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Fundees has
considered whether the provision of non-audit services
that were rendered to the Affiliates (as defined) that were
not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining
the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Series Trust VIII
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date July 29, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date July 29, 2015
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date July 29, 2015
* Print the name and title of each signing officer under his or her signature.