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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, 2015 through May 31, 2016
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer International
Equity Fund
(Formerly Pioneer International Value Fund)*
--------------------------------------------------------------------------------
Semiannual Report | May 31, 2016
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PIIFX
Class C PCITX
Class Y INVYX
* Effective November 1, 2015, the Fund was renamed Pioneer
International Equity Fund
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
<Table>
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 24
Notes to Financial Statements 31
Trustees, Officers and Service Providers 41
Pioneer International Equity Fund | Semiannual Report | 5/31/16 1
President's Letter
Dear Shareowner,
The first half of 2016 has featured some remarkable twists and turns in the
global economy. The year began on shaky footing as surging market volatility
brought about by fears of weaker global economic growth as well as falling oil
prices depressed returns for investors. In the US, both equity and fixed-income
markets declined significantly through the first six weeks of the year, only to
recover the losses by the end of the first quarter when market sentiment
shifted, due in part to accommodative monetary policies from the world's central
banks.
Midway through the first quarter, for example, the US Federal Reserve System
(the Fed) backed off plans to raise interest rates four times in 2016, and the
European Central Bank announced a more comprehensive asset-purchasing program in
the hopes of encouraging lending, and boosting both inflation and economic
growth. The markets responded with a solid rally. By the end of May, in fact, US
equities, as measured by the Standard & Poor's 500 Index, had generated a solid
year-to-date (YTD) return of 3.55%, and the YTD return (as of 5/31/16) of the
Barclays Aggregate Bond Index, a common measure of the US fixed-income market,
was 3.45%.
As markets began to settle down, the Brexit vote - the vote confirming that the
United Kingdom (UK) would exit the European Union (EU) - surprised many, and the
rollercoaster ride began once again. The market sold off sharply in the first
few days after the vote, then rallied as investors sought bargains created by
the initial post-Brexit sell-off, and as more, less ominous information about
the implications of the Brexit results came to light.
From a macroeconomic perspective, Pioneer believes the negative economic impact
of Brexit on the US should be more limited compared with its effects on the UK
and Europe. However, we expect reduced global demand due to a higher level of
uncertainty and risk aversion among investors. While the spillover effects on
the US economy are unclear, we think it possible that, in the event of a
significant negative economic impact, the Fed might consider other monetary
policy options. Globally, we believe that central banks are ready to act and
that their initial focus will be to stabilize the markets and provide liquidity,
if needed.
While the Brexit vote is now official, the expectation is that the actual
process of separating the UK from the EU could take at least two years. Only in
the next several months may we begin to see signs of what path Europe will
follow as it adapts to the reality of an EU without one of its most prominent
members. Over the medium-term, however, we believe uncertainties over the future
of Europe and central banks' reactions will likely dominate financial markets,
and we believe the news flow surrounding Brexit will continue to weigh on
riskier assets. Competing for headlines, too, is the current financial condition
of many European banks. Ultimately, we think that the political and monetary
policy responses will be the major variables when it comes to managing an
orderly
2 Pioneer International Equity Fund | Semiannual Report | 5/31/16
Brexit. In addition, as the second half of 2016 gets underway, we continue to
see central bank policies as generally supportive of the US economy -- for which
we maintain an expectation of modest growth this year.
Aside from the Brexit-caused uncertainties, economies around the world in both
developed and emerging markets are experiencing deep structural changes. Current
challenges include incomplete debt deleveraging in both emerging and developed
markets, where debt levels continue to grow, the transition of many emerging
markets economies from export/investment-driven models to more domestic
demand-driven models, and aging populations, which are reducing productivity and
limiting economic growth potential (primarily in the developed markets but also
in emerging markets such as China). Geopolitical instability on many fronts, the
rising risk of policy mistakes, and market liquidity issues combine to increase
the possibility of sharp swings in asset values. Meanwhile, in the US, as always
in a presidential election year, the political rhetoric of 2016 has the
potential to impact domestic sectors such as health care.
Throughout Pioneer's history, we have believed in the importance of active
management. During periods of market volatility, we view the value of active
management as even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. We believe our shareowners
can benefit from the experience and tenure of our investment teams as well as
the insights generated from our extensive research process.
As always, and particularly during times of market uncertainty, 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.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
May 31, 2016
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 3
Portfolio Management Discussion | 5/31/16
In the follow interview, Madelynn Matlock discusses the market environment for
international equities and the factors that influenced the performance of
Pioneer International Equity Fund* during the six-month period ended May 31,
2016. Ms. Matlock, a senior vice president and a portfolio manager at Pioneer,
and Marco Pirondini, Executive Vice President, Head of Equities, US, and a
portfolio manager at Pioneer, 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, 2016?
A Pioneer International Equity Fund's Class A shares returned -2.64% at net
asset value during the six-month period ended May 31, 2016, while the
Fund's benchmark, the Morgan Stanley Capital International (MSCI) Europe,
Australasia, Far East (EAFE) ND Index(1), returned -2.44%. During the same
period, the average return of the 475 mutual funds in Lipper's
International Multi-Cap Core Funds category was -2.14%, and the average
return of the 875 mutual funds in Morningstar's Foreign Large Blend Funds
category was -2.39%.
Q How would you characterize the investment environment for international
equities during the six months ended May 31, 2016?
A International equities encountered myriad headwinds during the six-month
reporting period, resulting in heightened uncertainty and market
volatility. As the period began, international stock markets were under
pressure from slowing economic growth in China and falling commodity
prices. A pronounced flight to quality and market sell-off took hold from
January until mid-February, which was sparked by a renewed decline in oil
prices, the China-led slowdown in global economic growth, and weak US
growth
* Note to Shareholders: Effective November 1, 2015, Pioneer International
Value Fund was renamed Pioneer International Equity Fund.
1 The MSCI information may only be used for your internal use, may not be
reproduced or re-disseminated in any form and may not be used as a basis
for or a component of any financial instruments or products or indices.
None of the MSCI information is intended to constitute investment advice or
a recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an
"as is" basis and the user of this information assumes the entire risk of
any use made of this information. MSCI, each of its affiliates and each
other person involved in or related to compiling, computing or creating any
MSCI information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer International Equity Fund | Semiannual Report | 5/31/16
data that raised concerns about a possible recession in the domestic
economy. The decline in oil prices spurred several large sovereign funds in
oil-producing Middle Eastern countries to sell stocks as a way to raise
capital, further pressuring equity prices.
By the middle of the first calendar quarter of 2016, however, the outlook
for international equities began to improve on several fronts. One impetus
was a bottoming of oil prices as OPEC (Organization of Petroleum Exporting
Countries) and non-OPEC countries seemed near an agreement on a production
freeze. Then, the ensuing market rally strengthened in March on the back of
further monetary and fiscal stimulus by global central banks, such as the
European Central Bank, and better-than-expected US economic data. With the
return of "risk-on" investor sentiment and a recovery in stock prices,
March proved to be the best-performing month for international equities
since October 2015.
Some caution returned to the markets in the final weeks of the reporting
period, though, as the proposed deal to freeze crude oil production failed
to materialize, global economic growth remained weak, and investors weighed
the potential effects of Britain's referendum on leaving the European Union
(Brexit). However, policies of global central banks continued to be a
bright spot for investors. These included the dovish US Federal Reserve
(Fed), which had raised interest rates in December 2015, but became
reluctant to introduce further increases due to a lack of inflationary
pressure in the US economy as well as global macroeconomic pressures.
The binary nature of the six-month period resulted in mixed performance for
international equities on an absolute basis, but there was not a wide
disparity between winners or losers across the various markets. During the
period, US stocks outperformed international stocks, with the Standard &
Poor's 500 Index returning 1.92%, while the MSCI World ND ex-US Index
returned -1.05%, and the Fund's benchmark, the MSCI EAFE ND Index, returned
-2.44%. Developing markets and the Pacific Rim outperformed Europe, as the
MSCI Emerging Markets ND Index and the MSCI Pacific ex-US Index returned
0.04% and -0.29%, respectively, over the six-month period, while the MSCI
Europe Index returned -2.77%.
From a sector perspective, utilities, telecommunication services, and
energy/materials were the top performers in the MSCI EAFE ND Index during
the six-month period, while financials and information technology turned in
negative performance.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 5
Q Which of your investment strategies or individual portfolio holdings
detracted from the Fund's performance relative to the benchmark MSCI EAFE
ND Index during the six-month period ended May 31, 2016?
A During the period, some of the Fund's sector allocation results weighed on
benchmark-relative performance. The Fund's underweight exposure to the
energy sector held back performance when commodities prices started to
recover from 25-year lows in February. We remain comfortable with the
Fund's limited exposure to the energy sector at this time, however, given
China's evolving economic structure away from heavy manufacturing and
exports toward more of a domestic consumption model, which we believe will
affect future demand for commodities. With that said, last winter's sell-
off generated price dislocations that created what we think are interesting
investment opportunities in the sector. Consequently, we shrank the Fund's
energy underweight by adding a position in Royal Dutch Shell to the
portfolio. In February 2016, Royal Dutch Shell merged with BG Industries
(formerly British Gas), creating the world's largest trader of liquefied
natural gas (LNG). We believe the merger, which makes the combined two
companies the world's second-largest publicly traded oil and gas producer
behind ExxonMobil, will help position Royal Dutch Shell more favorably
going forward due to its enhanced LNG production supply chain.
With regard to country allocations, the Fund's overweight exposure to Japan
versus the benchmark detracted from relative results. The stronger yen has
hurt Japanese exports, as the yen has become a "safe-haven" currency due to
market turmoil. Historically, when the yen rises, the Japanese stock market
tends to decline because investors believe that domestic economic growth is
export-driven, which is not true, in our view. Since the beginning of 2016,
we have pared back the Fund's overweight to Japan, but it still represents
an exposure that is greater than that of the benchmark.
As for individual holdings, the Fund's position in Canadian energy giant
Encana continued to struggle during the period due to the ongoing impact of
falling revenues, and because of management's ill-timed offer to buy an oil
producer in the Texas shale area. Since the aforementioned decline in oil
prices began in June 2014, oil exploration-and-production companies have
suffered the most, and many have reduced capital spending given the
supply/demand imbalance.
In addition, two of the Fund's investments in the electronic components
industry struggled during the period and detracted from benchmark-relative
performance. Alps Electric, which provides smart information systems for
phones and automobile information systems, came under pressure over the
past six months, as did NGK Sparkplug, which
6 Pioneer International Equity Fund | Semiannual Report | 5/31/16
manufactures components for automotive emission and fuel controls. Both
companies are domiciled in Japan, and investors were concerned that the
strong yen would make them less competitive and curb profits from
international markets.
Q Which of your investment strategies or individual portfolio holdings made
positive contributions to the Fund's benchmark-relative performance during
the six-month period ended May 31, 2016?
A While financial stocks tended to struggle during the reporting period, our
decision to limit, sharply, the Fund's exposure to banks, particularly in
Europe, was positive for performance relative to the benchmark. Our
emphasis in the portfolio on insurance companies and real estate
investments trusts also was helpful for benchmark-relative returns, as each
group fared better than banks.
The Fund's best-performing stock position during the period was Sundrug, a
drugstore chain in Japan. The company benefited from an easing of
regulations for dispensing drugs in Japan and the waning effects of the
one-time shock that resulted from the country's value-added tax increase.
We continue to believe Sundrug is in a good position to benefit from its
retail network capabilities.
Several large industrial holdings also aided the Fund's benchmark-relative
performance during the period. Many industrial companies sold off in the
wake of China's economic slowdown in the second half of 2015. Some have
successfully developed markets outside of China, however, and their stocks
began to recover in 2016. Within industrials, one strong performer in the
portfolio was Daikin Industries, a global manufacturer of quiet and compact
residential and commercial-grade air conditioners, which benefited from
demand from businesses and from the rising middle class in the Pacific Rim.
Finally, the Fund's investment in Vonovia -- Germany's largest real estate
group -- rallied during the six-month period and aided benchmark-relative
results. The company has been buying up smaller competitors and expanding
its portfolio of residential and commercial properties. Much of
management's focus has been on apartments in cities such as Berlin, where
demand for housing is high. Furthermore, Vonovia's professional management
and consolidation of properties has resulted in growth of rental income.
Q Did the Fund have any derivatives exposure during the six-month period
ended May 31, 2016, and did the exposure have an effect on performance?
A No, we did not invest the Fund in any derivative securities during the
period.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 7
Q What is your outlook for international stocks in the coming months?
A In the final weeks of the reporting period, the possibility of Britain's
leaving the European Union weighed on international stock prices and
elevated some "risk-off " currencies, like the Japanese yen, to new 2016
highs. While central-bank policymakers were waiting for the outcome of the
vote, they were positioning themselves to provide stimulus, if needed, to
keep the markets functioning smoothly.
On June 23, after period end, British voters elected to leave the European
Union. Britain's departure from the European Union will take years. Many
stocks are likely to suffer losses in the rush to judgment as the financial
markets begin to absorb the decision of the British citizenry. The Fund
does hold shares of several British and Irish companies with businesses
focused outside of Europe, but we believe their exposures to non-European
markets will help them weather the uncertainty during the transitional
period. In time, we believe that important distinction will help to unlock
value for those companies. We also have been positioning the Fund in
companies that we feel possess the resources to expand production capacity
or to develop new products through investment in research and development,
which we believe offers the potential for organic growth.
We continue to try to take advantage of long-running secular trends that
may lead to higher returns in the future, and to avoid what we consider
negative trends that might drag on the performance of some companies - even
well-managed ones. Aging populations, slower population growth,
carbon-limiting strategies, the sharing (or access) economy, and increasing
demand by global consumers for travel experiences are examples of secular
trends that we think will continue to create new investment ideas for the
Fund.
Overall, we believe international equity markets are likely to remain
unsettled for the foreseeable future. Investors tend to lose sight of
positive long-term fundamentals during periods of uncertainty and
heightened market volatility, and often sell indiscriminately. In many
cases, though, a sell-off can bring stock prices more in line with what we
are willing to pay based on the shares' long-term value. As we saw with the
global sell-offs in August 2015 and early 2016, volatility can present the
opportunity to look into stocks of companies that have become more
reasonably priced, or into companies that have the ability to "manufacture"
growth without the need for a strong economic backdrop.
8 Pioneer International Equity Fund | Semiannual Report | 5/31/16
Please refer to the Schedule of Investments on pages 17-23 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
To the extent the Fund invests in issuers located within specific countries or
regions, the Fund may be particularly affected by adverse markets, rates, and
events, which may occur in those countries and regions.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries or sectors.
These risks may increase share price volatility.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or 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 Equity Fund | Semiannual Report | 5/31/16 9
Portfolio Summary | 5/31/16
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 20.8%
Consumer Discretionary 16.4%
Industrials 12.4%
Consumer Staples 12.1%
Health Care 11.6%
Information Technology 9.1%
Materials 7.7%
Telecommunication Services 4.9%
Energy 3.0%
Utilities 2.0%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings based on a country of domicile)
[THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
Japan 28.1%
United Kingdom 13.6%
Ireland 10.7%
France 9.8%
Switzerland 9.7%
Germany 9.6%
Australia 3.4%
Netherlands 3.3%
United States 2.9%
Sweden 2.0%
China 1.5%
Italy 1.5%
Spain 1.2%
Taiwan, Province of China 1.2%
Other (individually less than 1%) 1.5%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total long-term holdings)*
1. Novartis AG 2.23%
--------------------------------------------------------------------------------
2. Henkel AG & Co., KGaA 2.14
--------------------------------------------------------------------------------
3. Daikin Industries, Ltd. 2.14
--------------------------------------------------------------------------------
4. Roche Holding AG 2.10
--------------------------------------------------------------------------------
5. AXA SA 2.02
--------------------------------------------------------------------------------
6. Whitbread Plc 2.00
--------------------------------------------------------------------------------
7. Vonovia SE 1.96
--------------------------------------------------------------------------------
8. Keyence Corp. 1.95
--------------------------------------------------------------------------------
9. Alps Electric Co., Ltd. 1.94
--------------------------------------------------------------------------------
10. Siemens AG 1.90
--------------------------------------------------------------------------------
* 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 securities listed.
10 Pioneer International Equity Fund | Semiannual Report | 5/31/16
Prices and Distributions | 5/31/16
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 5/31/16 11/30/15
--------------------------------------------------------------------------------
A $19.87 $20.74
--------------------------------------------------------------------------------
C $17.40 $18.13
--------------------------------------------------------------------------------
Y $19.90 $20.81
--------------------------------------------------------------------------------
Distributions per Share: 12/1/15-5/31/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3283 $ -- $ --
--------------------------------------------------------------------------------
C $0.1908 $ -- $ --
--------------------------------------------------------------------------------
Y $0.4205 $ -- $ --
--------------------------------------------------------------------------------
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 Equity Fund | Semiannual Report | 5/31/16 11
Performance Update | 5/31/16 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer International Equity Fund at public
offering price during the periods shown, compared to that of the Morgan Stanley
Capital International (MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of May 31, 2016)
--------------------------------------------------------------------------------
Net Public MSCI
Asset Offering EAFE
Value Price ND
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 Years 0.73% 0.14% 1.92%
5 Years 1.39 0.19 2.12
1 Year -9.77 -14.98 -9.68
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
1.71% 1.45%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International Equity Fund MSCI EAFE ND Index
5/06 $ 9,425 $10,000
5/07 $11,825 $12,684
5/08 $11,446 $12,363
5/09 $ 7,326 $ 7,837
5/10 $ 7,423 $ 8,355
5/11 $ 9,463 $10,896
5/12 $ 7,470 $ 8,664
5/13 $ 9,568 $11,403
5/14 $10,905 $13,461
5/15 $11,236 $13,396
5/16 $10,138 $12,100
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, 2017, 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 Equity Fund | Semiannual Report | 5/31/16
Performance Update | 5/31/16 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer International Equity Fund during
the periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of May 31, 2016)
--------------------------------------------------------------------------------
MSCI
EAFE
If If ND
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years -0.13% -0.13% 1.92%
5 Years 0.50 0.50 2.12
1 Year -10.50 -10.50 -9.68
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2016)
--------------------------------------------------------------------------------
Gross Net
--------------------------------------------------------------------------------
2.42% 2.35%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer International Equity Fund MSCI EAFE ND Index
5/06 $10,000 $10,000
5/07 $12,466 $12,684
5/08 $11,971 $12,363
5/09 $ 7,586 $ 7,837
5/10 $ 7,616 $ 8,355
5/11 $ 9,624 $10,896
5/12 $ 7,530 $ 8,664
5/13 $ 9,559 $11,403
5/14 $10,795 $13,461
5/15 $11,023 $13,396
5/16 $ 9,866 $12,100
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, 2017, 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 Equity Fund | Semiannual Report | 5/31/16 13
Performance Update | 5/31/16 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer International Equity Fund during
the periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) Europe, Australasia and Far East (EAFE) ND Index.
Average Annual Total Returns
(As of May 31, 2016)
--------------------------------------------------------------------------------
Net MSCI
Asset EAFE
Value ND
Period (NAV) Index
--------------------------------------------------------------------------------
10 Years 1.04% 1.92%
5 Years 1.81 2.12
1 Year -9.35 -9.68
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated April 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.04%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer International Equity Fund MSCI EAFE ND Index
5/06 $5,000,000 $5,000,000
5/07 $6,274,244 $6,342,049
5/08 $6,073,502 $6,181,479
5/09 $3,891,827 $3,918,551
5/10 $3,958,784 $4,177,692
5/11 $5,071,950 $5,448,006
5/12 $4,019,674 $4,332,007
5/13 $5,169,425 $5,701,668
5/14 $5,916,299 $6,730,424
5/15 $6,119,567 $6,698,101
5/16 $5,547,500 $6,049,843
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 Equity Fund | Semiannual Report | 5/31/16
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer International Equity Fund
Based on actual returns from December 1, 2015, through May 31, 2016.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 12/1/15
--------------------------------------------------------------------------------
Ending Account $ 973.60 $ 970.10 $ 976.20
Value (after expenses)
on 5/31/16
--------------------------------------------------------------------------------
Expenses Paid $ 7.15 $ 10.98 $ 5.14
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.45%,
2.23% and 1.04% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
183/366 (to reflect the one-half year period).
Pioneer International Equity Fund | Semiannual Report | 5/31/16 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 Equity Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from December 1, 2015, through May 31, 2016.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 12/1/15
--------------------------------------------------------------------------------
Ending Account $1,017.75 $1,013.85 $1,019.80
Value (after expenses)
on 5/31/16
--------------------------------------------------------------------------------
Expenses Paid $ 7.31 $ 11.23 $ 5.25
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.45%,
2.23% and 1.04% for Class A, Class C and Class Y shares, respectively,
multiplied by the average account value over the period, multiplied by
183/366 (to reflect the one-half year period).
16 Pioneer International Equity Fund | Semiannual Report | 5/31/16
Schedule of Investments | 5/31/16 (unaudited)
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
COMMON STOCKS -- 97.4%
ENERGY -- 3.0%
Oil & Gas Equipment & Services -- 1.2%
26,200 Schlumberger, Ltd. $ 1,999,060
-------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 1.8%
48,400 Royal Dutch Shell Plc $ 1,178,617
35,000 Total SA 1,697,696
--------------
$ 2,876,313
--------------
Total Energy $ 4,875,373
-------------------------------------------------------------------------------------------
MATERIALS -- 7.5%
Commodity Chemicals -- 1.1%
136,300 Kuraray Co., Ltd. $ 1,798,629
-------------------------------------------------------------------------------------------
Diversified Chemicals -- 0.6%
383,100 Incitec Pivot, Ltd. $ 951,971
-------------------------------------------------------------------------------------------
Fertilizers & Agricultural Chemicals -- 0.7%
2,700 Syngenta AG $ 1,060,305
-------------------------------------------------------------------------------------------
Specialty Chemicals -- 1.1%
42,482 Croda International Plc $ 1,808,727
-------------------------------------------------------------------------------------------
Construction Materials -- 1.2%
65,400 CRH Plc $ 1,965,419
-------------------------------------------------------------------------------------------
Paper Packaging -- 2.0%
136,900 Amcor, Ltd. $ 1,609,750
59,700 Smurfit Kappa Group Plc 1,635,702
--------------
$ 3,245,452
-------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 0.8%
49,300 Rio Tinto Plc $ 1,374,840
--------------
Total Materials $ 12,205,343
-------------------------------------------------------------------------------------------
CAPITAL GOODS -- 12.1%
Building Products -- 3.8%
39,700 Daikin Industries, Ltd. $ 3,368,627
100,800 Kingspan Group Plc 2,820,847
--------------
$ 6,189,474
-------------------------------------------------------------------------------------------
Electrical Components & Equipment -- 2.2%
128,200 ABB, Ltd. $ 2,663,924
13,800 Schneider Electric SE 891,363
--------------
$ 3,555,287
-------------------------------------------------------------------------------------------
Heavy Electrical Equipment -- 1.8%
248,000 Mitsubishi Electric Corp. $ 2,962,666
-------------------------------------------------------------------------------------------
Industrial Conglomerates -- 1.8%
27,900 Siemens AG $ 3,003,487
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 17
Schedule of Investments | 5/31/16 (unaudited) (continued)
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
Agricultural & Farm Machinery -- 1.7%
184,000 Kubota Corp. $ 2,681,620
-------------------------------------------------------------------------------------------
Industrial Machinery -- 0.8%
133,400 Fujitec Co., Ltd. $ 1,267,466
--------------
Total Capital Goods $ 19,660,000
-------------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 3.5%
Auto Parts & Equipment -- 2.2%
70,602 Gentex Corp. $ 1,170,581
125,400 NGK Spark Plug Co., Ltd. 2,407,606
--------------
$ 3,578,187
-------------------------------------------------------------------------------------------
Tires & Rubber -- 1.3%
59,900 Bridgestone Corp. $ 2,054,738
--------------
Total Automobiles & Components $ 5,632,925
-------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 5.2%
Consumer Electronics -- 1.1%
194,800 Panasonic Corp. $ 1,791,313
-------------------------------------------------------------------------------------------
Homebuilding -- 2.1%
1,225,368 Cairn Homes Plc $ 1,477,048
66,600 Persimmon Plc 2,027,375
--------------
$ 3,504,423
-------------------------------------------------------------------------------------------
Household Appliances -- 1.5%
90,300 Electrolux AB $ 2,423,140
-------------------------------------------------------------------------------------------
Apparel, Accessories & Luxury Goods -- 0.5%
46,300 Moncler S.p.A.* $ 772,058
--------------
Total Consumer Durables & Apparel $ 8,490,934
-------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 4.2%
Hotels, Resorts & Cruise Lines -- 1.6%
52,400 Carnival Plc $ 2,587,108
-------------------------------------------------------------------------------------------
Restaurants -- 2.6%
63,720 Domino's Pizza Group Plc $ 973,505
51,700 Whitbread Plc 3,153,836
--------------
$ 4,127,341
--------------
Total Consumer Services $ 6,714,449
-------------------------------------------------------------------------------------------
MEDIA -- 1.6%
Advertising -- 1.6%
35,100 Publicis Groupe SA $ 2,539,137
--------------
Total Media $ 2,539,137
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer International Equity Fund | Semiannual Report | 5/31/16
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
RETAILING -- 1.6%
Internet Retail -- 0.8%
26,900 JD.com, Inc. (A.D.R.)* $ 662,009
54,500 Vipshop Holdings, Ltd. (A.D.R.)* 636,015
--------------
$ 1,298,024
-------------------------------------------------------------------------------------------
Specialty Stores -- 0.8%
13,400 Signet Jewelers, Ltd. $ 1,326,198
--------------
Total Retailing $ 2,624,222
-------------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 1.6%
Drug Retail -- 1.6%
31,400 Sundrug Co., Ltd. $ 2,590,493
--------------
Total Food & Staples Retailing $ 2,590,493
-------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 6.5%
Soft Drinks -- 2.3%
164,100 Britvic Plc $ 1,603,562
46,000 Suntory Beverage & Food, Ltd.* 2,173,474
--------------
$ 3,777,036
-------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 4.2%
31,900 Danone SA $ 2,237,822
32,800 Kerry Group Plc 2,965,730
18,800 Mead Johnson Nutrition Co. 1,546,864
--------------
$ 6,750,416
--------------
Total Food, Beverage & Tobacco $ 10,527,452
-------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 3.7%
Household Products -- 2.1%
32,200 Henkel AG & Co. KGaA $ 3,377,911
-------------------------------------------------------------------------------------------
Personal Products -- 1.6%
58,200 Unilever NV $ 2,613,921
--------------
Total Household & Personal Products $ 5,991,832
-------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 2.9%
Health Care Supplies -- 1.5%
67,600 Hoya Corp. $ 2,360,564
-------------------------------------------------------------------------------------------
Health Care Services -- 1.4%
31,200 Fresenius SE & Co. KGaA $ 2,356,477
--------------
Total Health Care Equipment & Services $ 4,717,041
-------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 8.4%
Pharmaceuticals -- 7.4%
168,900 Astellas Pharma, Inc. $ 2,294,443
44,300 Novartis AG 3,513,119
12,606 Roche Holding AG 3,306,028
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 19
Schedule of Investments | 5/31/16 (unaudited) (continued)
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
Pharmaceuticals (continued)
47,700 Shire Plc $ 2,954,585
--------------
$ 12,068,175
-------------------------------------------------------------------------------------------
Life Sciences Tools & Services -- 1.0%
19,600 Gerresheimer AG $ 1,560,108
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 13,628,283
-------------------------------------------------------------------------------------------
BANKS -- 3.0%
Diversified Banks -- 3.0%
67,123 Banco Bilbao Vizcaya Argentaria SA $ 443,078
680,500 Barclays Plc 1,797,998
31,700 BNP Paribas SA 1,752,970
39,700 Swedbank AB 873,837
--------------
$ 4,867,883
--------------
Total Banks $ 4,867,883
-------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 1.2%
Diversified Capital Markets -- 1.2%
130,000 UBS Group AG $ 2,005,325
--------------
Total Diversified Financials $ 2,005,325
-------------------------------------------------------------------------------------------
INSURANCE -- 6.2%
Insurance Brokers -- 1.3%
18,900 Aon Plc* $ 2,065,203
-------------------------------------------------------------------------------------------
Life & Health Insurance -- 1.2%
21,200 Japan Post Holdings Co., Ltd. $ 272,008
214,650 Poste Italiane S.p.A. 1,642,274
--------------
$ 1,914,282
-------------------------------------------------------------------------------------------
Multi-line Insurance -- 3.7%
127,300 AXA SA $ 3,192,874
11,500 Zurich Insurance Group AG 2,779,781
--------------
$ 5,972,655
--------------
Total Insurance $ 9,952,140
-------------------------------------------------------------------------------------------
REAL ESTATE -- 9.9%
Diversified REIT -- 2.8%
1,665,215 Hibernia Real Estate Investment Trust Plc $ 2,410,393
507,700 Hibernia Real Estate Investment Trust Plc* 734,742
132,500 Merlin Properties Socimi SA 1,457,472
--------------
$ 4,602,607
-------------------------------------------------------------------------------------------
Industrial REIT -- 1.8%
560,600 Goodman Group $ 2,876,569
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer International Equity Fund | Semiannual Report | 5/31/16
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
Retail REIT -- 2.0%
38,600 Klepierre $ 1,764,752
29,972 Wereldhave NV 1,526,281
--------------
$ 3,291,033
-------------------------------------------------------------------------------------------
Diversified Real Estate Activities -- 1.4%
91,000 Mitsui Fudosan Co., Ltd. $ 2,212,902
-------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 1.9%
90,099 Vonovia SE* $ 3,089,274
--------------
Total Real Estate $ 16,072,385
-------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.7%
Internet Software & Services -- 0.7%
6,272 Baidu, Inc. (A.D.R.)* $ 1,119,803
--------------
Total Software & Services $ 1,119,803
-------------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 5.8%
Electronic Equipment Manufacturers -- 2.7%
275,100 Hitachi, Ltd. $ 1,259,187
4,900 Keyence Corp. 3,081,342
--------------
$ 4,340,529
-------------------------------------------------------------------------------------------
Electronic Components -- 3.1%
154,100 Alps Electric Co., Ltd. $ 3,062,340
17,600 Murata Manufacturing Co., Ltd. 2,032,869
--------------
$ 5,095,209
--------------
Total Technology Hardware & Equipment $ 9,435,738
-------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.4%
Semiconductors -- 2.4%
121,700 Infineon Technologies AG $ 1,825,648
417,000 Taiwan Semiconductor Manufacturing Co., Ltd. 1,999,826
--------------
$ 3,825,474
--------------
Total Semiconductors & Semiconductor Equipment $ 3,825,474
-------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.8%
Integrated Telecommunication Services -- 2.2%
46,500 Nippon Telegraph & Telephone Corp. $ 2,029,385
86,400 Orange SA 1,501,831
--------------
$ 3,531,216
-------------------------------------------------------------------------------------------
Wireless Telecommunication Services -- 2.6%
91,800 KDDI Corp. $ 2,666,831
473,918 Vodafone Group Plc 1,584,469
--------------
$ 4,251,300
--------------
Total Telecommunication Services $ 7,782,516
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 21
Schedule of Investments | 5/31/16 (unaudited) (continued)
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
UTILITIES -- 1.6%
Electric Utilities -- 1.6%
112,600 SSE Plc $ 2,498,186
--------------
Total Utilities $ 2,498,186
-------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $150,984,867) $ 157,756,934
-------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 97.4%
(Cost $150,984,867) (a) (b) $ 157,756,934
-------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 2.6% $ 4,236,137
-------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 161,993,071
===========================================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipt.
REIT Real Estate Investment Trust.
(a) At May 31, 2016, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $152,645,470
was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $15,002,556
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (9,891,092)
-----------
Net unrealized appreciation $ 5,111,464
===========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended May 31, 2016, aggregated to $27,868,173 and $31,444,991,
respectively.
(b) Distributions of investments by country of domicile (excluding temporary
cash investments) as a percentage of total investment in securities, is as
follows:
Japan 28.1%
United Kingdom 13.6
Ireland 10.7
France 9.8
Switzerland 9.7
Germany 9.6
Australia 3.4
Netherlands 3.3
United States 2.9
Sweden 2.0
China 1.5
Italy 1.5
Spain 1.2
Taiwan, Province Of China 1.2
Other (individually less than 1%) 1.5
----
100%
====
The accompanying notes are an integral part of these financial statements.
22 Pioneer International Equity Fund | Semiannual Report | 5/31/16
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.
The following is a summary of the inputs used as of May 31, 2016, in valuing the
Fund's investments:
--------------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------------------
Common Stocks
Energy
Oil & Gas Equipment
& Services $ 1,999,060 $ -- $ -- $ 1,999,060
Automobiles & Components
Auto Parts & Equipment 1,170,581 2,407,606 -- 3,578,187
Retailing
Internet Retail 1,298,024 -- -- 1,298,024
Specialty Stores 1,326,198 -- -- 1,326,198
Food, Beverage & Tobacco
Packaged Foods & Meats 1,546,864 5,203,552 -- 6,750,416
Insurance
Insurance Brokers 2,065,203 -- -- 2,065,203
Software & Services
Internet Software
& Services 1,119,803 -- -- 1,119,803
All Other Common Stocks* -- 139,620,043 -- 139,620,043
--------------------------------------------------------------------------------------------------------
Total $10,525,733 $ 147,231,201 $ -- $ 157,756,934
========================================================================================================
* Level 2 securities are valued using inputs/data furnished by independent
pricing services using fair value factors.
During the six months ended May 31, 2016, there were no transfers between Levels
1, 2 and 3.
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of May 31, 2016:
--------------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------------------------
Assets:
Foreign currencies,
at value $-- $74,362 $-- $74,362
Liabilities:
Restricted Cash -- (162) -- (162)
--------------------------------------------------------------------------------------------------
Total $-- $74,200 $-- $74,200
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 23
Statement of Assets and Liabilities | 5/31/16 (unaudited)
ASSETS:
Investment in securities (cost $150,984,867) $ 157,756,934
Cash 3,070,746
Foreign currencies, at value (cost $75,408) 74,362
Receivables --
Investment securities sold 745,672
Fund shares sold 74,317
Dividends and foreign taxes withheld 1,105,557
Interest 8,182
Due from Pioneer Investment Management, Inc. 15,687
Other assets 43,858
--------------------------------------------------------------------------------------------------
Total assets $ 162,895,315
==================================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 700,963
Fund shares repurchased 68,113
Distributions 116
Trustee fees 1,161
Restricted cash* 162
Due to affiliates 23,297
Accrued expenses 108,432
--------------------------------------------------------------------------------------------------
Total liabilities $ 902,244
==================================================================================================
NET ASSETS:
Paid-in capital $ 275,443,310
Distributions in excess of net investment income (59,057)
Accumulated net realized loss on investments and
foreign currency transactions (120,096,605)
Net unrealized appreciation on investments 6,772,067
Net unrealized depreciation on other assets and
liabilities denominated in foreign currencies (66,644)
--------------------------------------------------------------------------------------------------
Total net assets $ 161,993,071
==================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $72,240,726/3,634,939 shares) $ 19.87
Class C (based on $10,882,665/625,363 shares) $ 17.40
Class Y (based on $78,869,680/3,964,290 shares) $ 19.90
MAXIMUM OFFERING PRICE:
Class A ($19.87 (divided by) 94.25%) $ 21.08
==================================================================================================
* Represents restricted cash deposited at the counterparty for derivative
contracts.
The accompanying notes are an integral part of these financial statements.
24 Pioneer International Equity Fund | Semiannual Report | 5/31/16
Statement of Operations (unaudited)
For the Six Months Ended 5/31/16
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $192,340) $ 2,657,072
Interest 2,694
----------------------------------------------------------------------------------------------------
Total investment income $ 2,659,766
----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 677,180
Transfer agent fees
Class A 36,174
Class C 2,540
Class Y 2,984
Distribution fees
Class A 88,974
Class C 55,018
Shareholder communications expense 75,313
Administrative expense 50,344
Custodian fees 12,758
Registration fees 26,003
Professional fees 23,527
Printing expense 7,050
Fees and expenses of nonaffiliated Trustees 3,772
Miscellaneous 16,897
----------------------------------------------------------------------------------------------------
Total expenses $ 1,078,534
Less fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (37,440)
----------------------------------------------------------------------------------------------------
Net expenses $ 1,041,094
----------------------------------------------------------------------------------------------------
Net investment income $ 1,618,672
----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ (9,960,308)
Other assets and liabilities denominated in
foreign currencies (29,671) $(9,989,979)
----------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments $ 3,710,364
Other assets and liabilities denominated in
foreign currencies 60,378 $ 3,770,742
----------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency transactions $(6,219,237)
----------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $(4,600,565)
====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 25
Statements of Changes in Net Assets
-----------------------------------------------------------------------------------------------------
Six Months
Ended
5/31/16 Year Ended
(unaudited) 11/30/15
-----------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,618,672 $ 1,647,684
Net realized gain (loss) on investments, futures contracts,
swap contracts, and foreign currency transactions (9,989,979) 3,404,402
Change in net unrealized appreciation (depreciation)
on investments, futures contracts, swap contracts,
and foreign currency transactions 3,770,742 (7,901,961)
-----------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (4,600,565) $ (2,849,875)
-----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.33 and $1.23 per share, respectively) $ (1,211,983) $ (4,545,498)
Class C ($0.19 and $1.06 per share, respectively) (125,805) (607,330)
Class Y ($0.42 and $1.31 per share, respectively) (1,712,039) (5,990,875)
-----------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (3,049,827) $ (11,143,703)
-----------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 4,122,128 $ 25,367,243
Reinvestment of distributions 1,332,400 5,077,422
Cost of shares repurchased (9,921,503) (39,313,012)
-----------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (4,466,975) $ (8,868,347)
-----------------------------------------------------------------------------------------------------
Net decrease in net assets $ (12,117,367) $ (22,861,925)
NET ASSETS:
Beginning of period $ 174,110,438 $ 196,972,363
-----------------------------------------------------------------------------------------------------
End of period $ 161,993,071 $ 174,110,438
-----------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net
investment income $ (59,057) $ 1,372,098
=====================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer International Equity Fund | Semiannual Report | 5/31/16
-----------------------------------------------------------------------------------------------
Six Months Six Months
Ended Ended
5/31/16 5/31/16 Year Ended Year Ended
Shares Amount 11/30/15 11/30/15
(unaudited) (unaudited) Shares Amount
-----------------------------------------------------------------------------------------------
Class A
Shares sold 125,105 $ 2,411,996 648,928 $ 14,153,053
Reinvestment of distributions 57,157 1,153,419 208,185 4,326,091
Less shares repurchased (268,524) (5,175,206) (875,128) (18,854,104)
-----------------------------------------------------------------------------------------------
Net decrease (86,262) $ (1,609,791) (18,015) $ (374,960)
===============================================================================================
Class C
Shares sold 56,598 $ 960,701 239,041 $ 4,562,598
Reinvestment of distributions 6,660 118,087 30,987 567,691
Less shares repurchased (98,666) (1,665,781) (160,897) (3,055,375)
-----------------------------------------------------------------------------------------------
Net increase (decrease) (35,408) $ (586,993) 109,131 $ 2,074,914
===============================================================================================
Class Y
Shares sold 37,504 $ 749,431 312,314 $ 6,651,592
Reinvestment of distributions 3,021 60,894 8,837 183,640
Less shares repurchased (159,073) (3,080,516) (814,642) (17,403,533)
-----------------------------------------------------------------------------------------------
Net decrease (118,548) $ (2,270,191) (493,491) $ (10,568,301)
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 27
Financial Highlights
----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/16 Ended Ended Ended Ended Ended
(unaudited) 11/30/15 11/30/14 11/30/13 11/30/12 11/30/11
----------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 20.74 $ 22.34 $ 22.49 $ 18.67 $ 17.99 $ 18.72
----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.18(a) $ 0.16(a) $ 0.63 $ 0.27 $ 0.36 $ 0.37
Net realized and unrealized gain (loss) on investments (0.72) (0.53) (0.28) 3.87 0.58 (0.88)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.54) $ (0.37) $ 0.35 $ 4.14 $ 0.94 $ (0.51)
----------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.33) $ (1.23) $ (0.50) $ (0.32) $ (0.26) $ (0.22)
----------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.33) $ (1.23) $ (0.50) $ (0.32) $ (0.26) $ (0.22)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.87) $ (1.60) $ (0.15) $ 3.82 $ 0.68 $ (0.73)
----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 19.87 $ 20.74 $ 22.34 $ 22.49 $ 18.67 $ 17.99
============================================================================================================================
Total return* (2.64)% (1.69)% 1.55% 22.50% 5.38% (2.84)%
Ratio of net expenses to average net assets (b) 1.45%** 1.45% 1.46% 1.45% 1.45% 1.45%
Ratio of net investment income (loss) to average net assets 1.89%** 0.73% 2.72% 1.26% 1.89% 1.80%
Portfolio turnover rate 36%** 49% 100% 101% 61% 66%
Net assets, end of period (in thousands) $72,241 $77,173 $83,544 $86,602 $75,784 $79,559
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets (b) 1.56%** 1.71% 1.70% 1.69% 1.82% 1.77%
Net investment income (loss) to average net assets 1.78%** 0.47% 2.48% 1.02% 1.53% 1.48%
============================================================================================================================
* 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) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Includes interest expense of 0.00%, 0.00%, 0.01%, 0.00%, 0.00%, and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
28 Pioneer International Equity Fund | Semiannual Report | 5/31/16
-----------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/16 Ended Ended Ended Ended Ended
(unaudited) 11/30/15 11/30/14 11/30/13 11/30/12 11/30/11
-----------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 18.13 $ 19.69 $ 19.91 $ 16.57 $ 15.97 $ 16.64
-----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.09(a) $ (0.04)(a) $ 0.35 $ 0.08 $ 0.18 $ 0.19
Net realized and unrealized gain (loss) on investments (0.63) (0.46) (0.23) 3.44 0.53 (0.80)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.54) $ (0.50) $ 0.12 $ 3.52 $ 0.71 $ (0.61)
-----------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.19) $ (1.06) $ (0.34) $ (0.18) $ (0.11) $ (0.06)
-----------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.19) $ (1.06) $ (0.34) $ (0.18) $ (0.11) $ (0.06)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.73) $ (1.56) $ (0.22) $ 3.34 $ 0.60 $ (0.67)
-----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.40 $ 18.13 $ 19.69 $ 19.91 $ 16.57 $ 15.97
=============================================================================================================================
Total return* (2.99)% (2.58)% 0.60% 21.43% 4.48% (3.71)%
Ratio of net expenses to average net assets (b) 2.23%** 2.35% 2.36% 2.35% 2.35% 2.35%
Ratio of net investment income (loss) to average net assets 1.10%** (0.20)% 1.78% 0.36% 0.99% 0.90%
Portfolio turnover rate 36%** 49% 100% 101% 61% 66%
Net assets, end of period (in thousands) $10,883 $11,981 $10,865 $10,826 $ 9,910 $10,523
Ratios with no waiver of fees and assumption of expenses by
the Adviser and no reduction for fees paid indirectly:
Total expenses to average net assets (b) 2.23%** 2.42% 2.44% 2.41% 2.63% 2.52%
Net investment income (loss) to average net assets 1.10%** (0.27)% 1.70% 0.30% 0.71% 0.73%
=============================================================================================================================
* 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) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Includes interest expense of 0.00%, 0.00%, 0.01%, 0.00%, 0.00%, and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 29
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
5/31/16 Ended Ended Ended Ended Ended
(unaudited) 11/30/15 11/30/14 11/30/13 11/30/12 11/30/11
--------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 20.81 $ 22.41 $ 22.56 $ 18.73 $ 18.07 $ 18.80
--------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.22(a) $ 0.25(a) $ 1.29 $ 0.37 $ 0.41 $ 0.44
Net realized and unrealized gain (loss) on investments (0.71) (0.54) (0.85) 3.87 0.60 (0.87)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.49) $ (0.29) $ 0.44 $ 4.24 $ 1.01 $ (0.43)
--------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.42) $ (1.31) $ (0.59) $ (0.41) $ (0.35) $ (0.30)
--------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.42) $ (1.31) $ (0.59) $ (0.41) $ (0.35) $ (0.30)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.91) $ (1.60) $ (0.15) $ 3.83 $ 0.66 $ (0.73)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 19.90 $ 20.81 $ 22.41 $ 22.56 $ 18.73 $ 18.07
================================================================================================================================
Total return* (2.38)% (1.29)% 1.94% 23.02% 5.79% (2.39)%
Ratio of net expenses to average net assets (b) 1.04%** 1.04% 1.06% 1.04% 1.01% 1.01%
Ratio of net investment income (loss) to average net assets 2.30%** 1.16% 3.89% 1.69% 2.35% 2.26%
Portfolio turnover rate 36%** 49% 100% 101% 61% 66%
Net assets, end of period (in thousands) $78,879 $84,957 $102,563 $224,523 $216,217 $189,321
================================================================================================================================
* 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.
** Annualized.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
(b) Includes interest expense of 0.00%, 0.00%, 0.01%, 0.00%, 0.00%, and 0.00%,
respectively.
The accompanying notes are an integral part of these financial statements.
30 Pioneer International Equity Fund | Semiannual Report | 5/31/16
Notes to Financial Statements | 5/31/16 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer International Equity Fund (formerly 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.
The Fund offered three classes of shares designated as Class A, Class C and
Class Y shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has identical rights (based on relative
net asset values) to assets and liquidation proceeds. Share classes can bear
different rates of class-specific fees and expenses such as transfer agent and
distribution fees. Differences in class-specific fees and expenses will result
in differences in net investment income and, therefore, the payment of different
dividends from net investment income earned by each class. The Amended and
Restated Declaration of Trust of the Fund gives the Board of Trustees the
flexibility to specify either per-share voting or dollar-weighted voting when
submitting matters for shareholder approval. Under per-share voting, each share
of a class of the Fund is entitled to one vote. Under dollar-weighted voting, a
shareholder's voting power is determined not by the number of shares owned, but
by the dollar value of the shares on the record date. Each share class has
exclusive voting rights with respect to matters affecting only that class,
including with respect to the distribution plan for that class. There is no
distribution plan for Class 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:
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange (NYSE) is open, as of the close of regular trading on
the NYSE.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 31
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The principal exchanges and markets for non-U.S. equity 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 Fund uses a fair
value model developed by an independent pricing service to value non-U.S.
equity securities. On a daily basis, the pricing service recommends
changes, based on a proprietary model, to the closing market prices of each
non-U.S. security held by the Fund to reflect the security's fair value at
the time the Fund determines its net asset value. The Fund applies these
recommendations in accordance with procedures approved by the Board of
Trustees.
Cash may include overnight time deposits at approved financial
institutions.
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
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 values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
32 Pioneer International Equity Fund | Semiannual Report | 5/31/16
At May 31, 2016, 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.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated 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.
During the six months ended May 31, 2016, there were no open forward
foreign currency contracts.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 33
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 net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes is
required. As of November 30, 2015, 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 meeting the requirements of the Internal Revenue Code, the
Fund may 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, 2015, 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 year ended November 30, 2015 was as follows:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distribution paid from:
Ordinary income $11,143,703
---------------------------------------------------------------------------
Total $11,143,703
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at November 30, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 2,168,983
Capital loss carryforward (109,242,908)
Net unrealized appreciation 1,274,078
---------------------------------------------------------------------------
Total $(105,799,847)
===========================================================================
34 Pioneer International Equity Fund | Semiannual Report | 5/31/16
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales and adjustments
relating to PFICs.
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 $5,511 in underwriting commissions on the sale of Class
A shares during the six months ended May 31, 2016.
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 Fund's transfer agent, for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
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
The value of securities held by the fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
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
Pioneer International Equity Fund | Semiannual Report | 5/31/16 35
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.
I. Repurchase Agreements
Repurchase agreements are arrangements under which the Fund purchases
securities from a broker-dealer or a bank, called the counterparty, upon
the agreement of the counterparty to repurchase the securities from the
Fund at a later date, and at a specific price, which is typically higher
than the purchase price paid by the Fund. The securities purchased serve as
the Fund's collateral for the obligation of the counterparty to repurchase
the securities. The value of the 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. The Fund's investment adviser, PIM is responsible for determining
that the value of the collateral remains at least equal to the repurchase
price. In the event of a default by the counterparty, the Fund is entitled
to sell the securities, but the Fund may not be able to sell them for the
price at which they were purchased, thus causing a loss to the Fund.
Additionally, if the counterparty becomes insolvent, there is some risk
that the Fund will not have a right to the securities, or the immediate
right to sell the securities. As of and for the six months ended May 31,
2016, 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. 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
36 Pioneer International Equity Fund | Semiannual Report | 5/31/16
the exchange's clearinghouse, as counterparty to all exchange-traded
futures, guarantees the futures against default. During the six months
ended May 31, 2016, the Fund had no open futures contracts.
K. Total Return Swap Agreements
The Fund may enter into a total return swap contracts to attempt to manage
and/or gain exposure to a security or market. Pursuant to a total return
swap contracts, 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.
During the six months ended May 31, 2016, the Fund had no open total return
swap contracts.
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, 2016, 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 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. These expense
limitations are in effect through April 1, 2017. There can be no assurance that
PIM will extend the expense limitation agreement for a class of shares beyond
the date referred to above. Fees waived and expenses reimbursed during the six
months ended May 31, 2016 are reflected on the Statement of Operations. Class Y
shares do not have an expense limitation.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 37
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$19,333 in management fees, administrative costs and certain other
reimbursements payable to PIM at May 31, 2016.
3. Transfer Agent
Prior to November 2, 2015, Pioneer Investment Management Shareholder Services,
Inc. (PIMSS), a wholly owned indirect subsidiary of UniCredit, provided
substantially all transfer agent and shareowner services to the Fund at
negotiated rates.
Effective November 2, 2015, Boston Financial Data Services serves as the
transfer agent to the Fund at negotiated rates.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent 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, 2016, such
out-of-pocket expenses by class of shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $64,543
Class C 8,778
Class Y 1,992
--------------------------------------------------------------------------------
Total $75,313
================================================================================
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 $3,964 in distribution fees payable to
PFD at May 31, 2016.
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
38 Pioneer International Equity Fund | Semiannual Report | 5/31/16
12 months of purchase are subject to a CDSC of 1.00%, based on the lower of cost
or market value of shares being redeemed. Shares purchased as part of an
exchange remain subject to any CDSC that applied to the original purchase of
those shares. There is no CDSC for Class Y shares. Proceeds from the CDSCs are
paid to PFD. For the six months ended May 31, 2016, CDSCs in the amount of
$1,870 were paid to PFD.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 10, 2016, was in the amount of $240
million. As of February 10, 2016, the facility is in the amount of $220 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% 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
Eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the six months ended May 31, 2016, the Fund had no borrowings
under the credit facility.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 39
Additional Information
PIM, the Fund's investment adviser, is currently an indirect, wholly owned
subsidiary of UniCredit. On November 11, 2015, UniCredit announced that it
signed a binding master 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 previously announced by UniCredit, will establish 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 PIM. 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 closing of the
Transaction is subject to certain regulatory and other approvals.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's current investment advisory agreement with PIM to terminate.
Accordingly, the Fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, the Fund's new
investment advisory agreement will be submitted to the shareholders of the Fund
for their approval.
40 Pioneer International Equity Fund | Semiannual Report | 5/31/16
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
Boston Financial Data 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.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 41
This page for your notes.
42 Pioneer International Equity Fund | Semiannual Report | 5/31/16
This page for your notes.
Pioneer International Equity Fund | Semiannual Report | 5/31/16 43
This page for your notes.
44 Pioneer International Equity Fund | Semiannual Report | 5/31/16
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:
--------------------------------------------------------------------------------
Pioneer Funds
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) 2016 Pioneer Investments 19390-10-0716
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.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds 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.
N/A
(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.
N/A
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. 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, 2016
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, 2016
By (Signature and Title)* /s/ Mark E. Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date July 29, 2016
* Print the name and title of each signing officer under his or her signature.