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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 811-08657
Pioneer Equity Income Fund
(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: October 31
Date of reporting period: November 1, 2009 through October 31, 2010
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
Pioneer Equity
Income Fund
- --------------------------------------------------------------------------------
Annual Report | October 31, 2010
- --------------------------------------------------------------------------------
Ticker Symbols:
Class A PEQIX
Class B PBEQX
Class C PCEQX
Class R PQIRX
Class Y PYEQX
Class Z PEZQX
[LOGO]PIONEER
Investments(R)
visit us: pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 26
Notes to Financial Statements 36
Report of Independent Registered Public Accounting Firm 44
Trustees, Officers and Service Providers 46
Pioneer Equity Income Fund | Annual Report | 10/31/10 1
President's Letter
Dear Shareowner,
Through the first nine months of 2010, the U.S. economy moved forward on a slow
path to recovery. But with the memory of a deep recession still lingering,
businesses and consumers remained cautious about both investing and spending.
While business fundamentals showed signs of improvement, there was still a
reluctance to hire, and high unemployment remains a problem. Wary investors,
concerned about risk, gravitated towards cash and bonds. We remain generally
optimistic about the prospects for economic recovery, although it may occur
more slowly than many would like.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. This strategy has generally performed well for
many investors. Bond markets certainly rewarded investors in the first nine
months of 2010. While the equity markets barely budged, equities at the end of
September 2010 were inexpensive relative to bonds, compared with historic
levels, and represented potentially good value for long-term investors.
Pioneer has not changed the basic approach to investing that we have used for
more than 80 years. We remain focused on company fundamentals and risk
management. Our investment process is based on careful research into individual
companies, quantitative analysis, and active portfolio management. This
three-pillared process, which we apply to each of our portfolios, is supported
by an integrated team approach and is designed to carefully balance risk and
reward. Our experienced professionals devote themselves to the careful research
needed to identify investment opportunities in markets around the world.
Our advice, as always, is to work closely with a trusted financial advisor to
discuss your goals and work together to develop an investment strategy that
meets your individual needs. There is no single best strategy that works for
every investor.
2 Pioneer Equity Income Fund | Annual Report | 10/31/10
We invite you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
www.pioneerinvestments.com. We greatly appreciate your trust in us and we thank
you for investing with Pioneer.
Sincerely,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
Pioneer Equity Income Fund | Annual Report | 10/31/10 3
Portfolio Management Discussion | 10/31/10
In the following interview, John Carey, Executive Vice President and Head of
the U.S. Core Value Department at Pioneer Investments, discusses the investment
environment during the 12-month period ended October 31, 2010, and Pioneer
Equity Income Fund's performance. Mr. Carey is responsible for the day-to-day
management of Pioneer Equity Income Fund.
Q How would you describe the investment environment for equities in the Fund's
investable universe over the 12 months ended October 31, 2010?
A Overall, it was a period of market advances. However, the ride was not
smooth. Along the way there were several bracing declines as well as some
exhilarating climbs. The market appeared to be responding alternately to
the mixed signals from macroeconomic and geopolitical data and developments
and the generally positive news from individual companies. On the
macro-economic side, worries revolved around high unemployment, Federal and
state budget deficits, sluggish housing sales, and increases in commodity
prices, resulting partly from the weak dollar. At the same time, many
companies reported strong earnings and voiced optimism about future
results. As we write, new concerns have arisen about the "Euro Zone," with
a banking crisis in Ireland. Chancellor Angela Merkel of Germany is quoted
as saying that the euro currency is in "exceptionally serious" condition.
There have also been hostilities between North and South Korea, the Middle
East "peace talks" appear to be faltering, Iran is no closer than ever to
opening all of its nuclear facilities for inspection, and the situation in
our own capital of Washington, D. C., is as contentious as one might
expect. But, again, on the "micro" level, in regard to real companies with
real managements and employees, producing real goods and services for real
customers in real time, there is much about which to be heartened.
Especially encouraging to us, with respect to our income-oriented
investment strategy in Pioneer Equity Income Fund, are the dividend
increases we have been seeing from portfolio companies and in the market
overall. With higher profits, companies are returning more cash to
shareholders both in dividends and share repurchases. We are also cheered
by growing merger-and-acquisition activity and by larger
capital-expenditure programs. Those are signs of greater confidence on the
part of managements in the course of the economy. While business leaders do
still express caution, they are, on the whole, proceeding as if the
economic recovery is on track. With stock price-to-earnings multiples still
well below the peak levels of the past decade or so, we see many
possibilities for further stock-price appreciation over the
4 Pioneer Equity Income Fund | Annual Report | 10/31/10
next two to three years, provided the "macro" issues do not prove
insurmountable.
Q How did the Fund perform over the 12 months ended October 31, 2010?
A Over the 12 months ended October 31, 2010, the Fund's Class A shares returned
20.36% at net asset value, while the Fund's benchmark, the Russell 1000
Value Index, returned 15.71%. Over the same period, the average return of
the 276 mutual funds in Lipper's Equity Income Funds category was 16.51%.
Q The Fund's Class A shares showed a strong return over the last 12 months
ended October 31, 2010, outpacing its benchmark, the Russell 1000 Value
Index (the Russell Index). What were the main reasons for that?
A The Fund's strong performance came largely in the second half of the 12-month
reporting period. Finally, investors seemed to notice the attractiveness of
dividends and of the dividend-paying stocks in the Fund's portfolio, in
particular! Since before the onset of the financial crisis in 2008, the
Fund has been underweight the financials sector and we have instead
emphasized companies in the industrials, materials, utilities, health care,
and consumer discretionary and staples sectors as the Fund's principal
sources of dividend income. In fact, the Fund's positioning in the
financials sector, both the underweight and stock selection, was the single
biggest contributor to the outperformance of the Russell Index by the Fund
in the second half of the fiscal year, as renewed concerns about the
mortgage businesses of the large American banks roiled the markets and the
specter of a tottering European financial system reminded people of the
risks in lending. Also contributing quite importantly to the Fund's
relative returns was an underweight in energy, a sector that lagged the
overall market, and stock selection there. Our investments in nearly every
sector also contributed positively to Fund returns, with slight negative
contributions coming only from our investments in consumer discretionary
and health care. In general, the 12 months ended October 31, 2010, was a
very successful period for the portfolio.
Q Please discuss changes you made to the Fund's portfolio during the second
half of the fiscal year ended October 31, 2010.
A The portfolio showed 12 new positions as of the end of October 2010, and 7
deletions. As the economy has picked up steam, so have the railroads. We
added Norfolk Southern and CSX to the Fund's portfolio. The two, premier
freight-hauling railroads serve, between them, much of the United States.
We also added Trinity Industries, manufacturer and lessor of railcars. With
the better business conditions, the railroads are boosting their capital
spending on new equipment.
Pioneer Equity Income Fund | Annual Report | 10/31/10 5
We also added Walgreen, Pfizer, Xilinx, Hewlett-Packard and Automatic Data
Processing to the Fund's portfolio during the period. Walgreen is a leading
operator of retail drug stores, famous over many years for expanding the
merchandise assortment in drug stores from the original pharmacy items to a
broad array of consumer goods. Pfizer is an out-of-favor pharmaceutical
producer, with a valuation that we believe more than discounts the risks to
its drug sales from patent expirations. Xilinx, a programmable microchip
supplier, Hewlett-Packard, a provider of computing equipment and printers,
and Automatic Data Processing, a business services provider, are examples
of the dividend-paying stocks in information technology now available at
price-to-earnings multiples that appear to fit into our value framework for
the Fund. In financials, we purchased shares of American Express, a leading
international credit-card company, and New York Community Bank, a
well-managed institution serving customers in the area suggested by its
name.
Finally, the Fund received shares of QEP Resources, an oil-and-gas
exploration company focused on U.S. properties, when the entity was spun
out from a portfolio holding in Questar; and shares of Frontier
Communications, a rural telephone operator, when that company exchanged
some of its shares for land telephone lines owned by Verizon, another
portfolio holding.
Sold, either because the stocks had reached our estimate of fair value or
because we felt there were more attractive alternatives, were Deere,
McDonald's, Kellogg, Procter & Gamble, Regency Centers, PPL, and Public
Service Enterprise Group.
Q What is your outlook for 2011?
A The past ten years have been trying for investors. Bookended by the sharp
stock-market downturns of 2000-2002 and 2007-2009, the period saw little if
any net gain on many individual securities. Price-to-earnings multiples
generally contracted over the course of the decade as battered investors
became less sure of the stock market as a good place to be and less
optimistic about prospects for earnings growth. While it is always hard to
regard past experience as "water under the bridge," we would suggest that
at current price levels the stock market may represent interesting value.
Of course, a lot does depend on others' sharing our optimistic view! For we
cannot drive the market higher all by ourselves and solely by our own
positive thinking. Investor sentiment, consumer confidence, business mood,
political climate, the international situation -- all of those are
important to the market in supplying either headwind or tailwind, rough
waters or smoother sailing. As ever, the twists and turns of fate and
fortune are well beyond the scope of anything we can analyze, forecast, or
envision. But also, as always,
6 Pioneer Equity Income Fund | Annual Report | 10/31/10
what we can do is focus on the companies behind the share prices, the
dividends and earnings supporting valuation levels, and the business
strategies of managements as they look into the future. We believe that
that "fundamental" approach can stand the Fund in good stead even amidst
great uncertainties.
Thank you for your continued support.
Please refer to the Schedule of Investments on pages 18-25 for a full listing
of Fund securities.
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 and sectors.
Past performance is no guarantee of future results, and there is no guarantee
that the market forecast discussed will be realized.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes.
Pioneer Equity Income Fund | Annual Report | 10/31/10 7
Portfolio Summary | 10/31/10
Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 87.9%
Temporary Cash Investments 11.4%
Depositary Receipts for International Stocks 0.7%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 16.1%
Industrials 14.5%
Consumer Staples 11.5%
Energy 11.5%
Materials 9.3%
Consumer Discretionary 9.0%
Utilities 8.9%
Health Care 8.5%
Information Technology 6.5%
Telecommunication Services 4.2%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. Johnson Controls, Inc. 3.30%
- --------------------------------------------------------------------------------
2. Gorman-Rupp Co. 3.19
- --------------------------------------------------------------------------------
3. Valspar Corp. 3.13
- --------------------------------------------------------------------------------
4. PACCAR, Inc. 2.63
- --------------------------------------------------------------------------------
5. Chubb, Corp. 2.58
- --------------------------------------------------------------------------------
6. QEP Resources, Inc. 2.48
- --------------------------------------------------------------------------------
7. NSTAR 2.40
- --------------------------------------------------------------------------------
8. Compass Minerals International, Inc. 2.31
- --------------------------------------------------------------------------------
9. H.J. Heinz Co., Inc. 2.25
- --------------------------------------------------------------------------------
10. Marathon Oil Corp. 2.09
- --------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments. The
portfolio is actively managed, and current holdings may be different. The
holdings listed should not be considered recommendations to buy or sell any
security listed.
8 Pioneer Equity Income Fund | Annual Report | 10/31/10
Prices and Distributions | 10/31/10
Net Asset Value per Share
- --------------------------------------------------------------------------------
Class 10/31/10 10/31/09
A $ 23.92 $ 20.24
- --------------------------------------------------------------------------------
B $ 23.77 $ 20.10
- --------------------------------------------------------------------------------
C $ 23.66 $ 20.01
- --------------------------------------------------------------------------------
R $ 24.14 $ 20.43
- --------------------------------------------------------------------------------
Y $ 24.09 $ 20.37
- --------------------------------------------------------------------------------
Z $ 23.95 $ 20.27
- --------------------------------------------------------------------------------
Distributions per Share: 11/1/09-10/31/10
- --------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
A $ 0.4040 $ -- $ --
- --------------------------------------------------------------------------------
B $ 0.1799 $ -- $ --
- --------------------------------------------------------------------------------
C $ 0.2244 $ -- $ --
- --------------------------------------------------------------------------------
R $ 0.3499 $ -- $ --
- --------------------------------------------------------------------------------
Y $ 0.5068 $ -- $ --
- --------------------------------------------------------------------------------
Z $ 0.4982 $ -- $ --
- --------------------------------------------------------------------------------
The Russell 1000 Value Index measures the performance of large-cap U.S. value
stocks. Index returns 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 10-15.
Pioneer Equity Income Fund | Annual Report | 10/31/10 9
Performance Update | 10/31/10 Class A Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund at public offering price,
compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2010)
- -------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
- -------------------------------------------------------------------
10 Years 2.72% 2.12%
5 Years 1.99 0.79
1 Year 20.36 13.46
- -------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- -------------------------------------------------------------------
Gross Net
- -------------------------------------------------------------------
1.23% 1.23%
- -------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/00 9,425 10,000
8,558 8,814
10/02 7,478 7,931
8,666 9,745
10/04 10,081 11,251
11,177 12,586
10/06 13,593 15,286
14,982 16,942
10/08 10,488 10,708
10,247 11,220
10/10 12,333 12,983
Call 1-800-225-6292 or visit www.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 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.
10 Pioneer Equity Income Fund | Annual Report | 10/31/10
Performance Update | 10/31/10 Class B Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2010)
- ---------------------------------------------------------------
If If
Period Held Redeemed
- ---------------------------------------------------------------
10 Years 1.84% 1.84%
5 Years 1.08 1.08
1 Year 19.23 15.23
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- ---------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------
2.20% 2.20%
- ---------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/00 10,000 10,000
9,010 8,814
10/02 7,808 7,931
8,972 9,745
10/04 10,348 11,251
11,372 12,586
10/06 13,709 15,286
14,985 16,942
10/08 10,402 10,708
10,063 11,220
10/10 11,998 12,983
Call 1-800-225-6292 or visit www.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.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If Redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied
to withdrawals was shortened to 5 years. The maximum CDSC for Class B shares is
4% and declines over five years. For more complete information, please see the
prospectus. Note: Shares purchased prior to December 1, 2004, remain subject to
the CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com.
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 taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
Pioneer Equity Income Fund | Annual Report | 10/31/10 11
Performance Update | 10/31/10 Class C Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2010)
- ---------------------------------------------------------------
If If
Period Held Redeemed
- ---------------------------------------------------------------
10 Years 1.90% 1.90%
5 Years 1.20 1.20
1 Year 19.46 19.46
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- ---------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------
2.04% 2.04%
- ---------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/00 10,000 10,000
8,998 8,814
10/02 7,796 7,931
8,960 9,745
10/04 10,340 11,251
11,371 12,586
10/06 13,721 15,286
15,007 16,942
10/08 10,426 10,708
10,102 11,220
10/10 12,068 12,983
Call 1-800-225-6292 or visit www.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). The performance of Class C shares does not
reflect the 1% front-end sales charge in effect prior to February 1, 2004. If
you paid a 1% sales charge, your returns would be lower than those shown above.
"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 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 Equity Income Fund | Annual Report | 10/31/10
Performance Update | 10/31/10 Class R Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2010)
- ---------------------------------------------------------------
If If
Period Held Redeemed
- ---------------------------------------------------------------
10 Years 2.46% 2.46%
5 Years 1.79 1.79
1 Year 20.03 20.03
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- ---------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------
1.44% 1.44%
- ---------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/00 10,000 10,000
9,034 8,814
10/02 7,854 7,931
9,078 9,745
10/04 10,551 11,251
11,673 12,586
10/06 14,172 15,286
15,603 16,942
10/08 10,901 10,708
10,628 11,220
10/10 12,757 12,983
Call 1-800-225-6292 or visit www.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.
The performance shown for Class R shares for the period prior to the
commencement of operations of Class R shares on April 1, 2003, is based on the
performance of Class A shares, reduced to reflect the higher distribution and
service fees of Class R shares. For the period beginning on April 1, 2003, the
actual performance of Class R shares is reflected. Class R 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.
Pioneer Equity Income Fund | Annual Report | 10/31/10 13
Performance Update | 10/31/10 Class Y Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2010)
- ---------------------------------------------------------------
If If
Period Held Redeemed
- ---------------------------------------------------------------
10 Years 3.17% 3.17%
5 Years 2.43 2.43
1 Year 20.98 20.98
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- ---------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------
0.75% 0.75%
- ---------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5,000,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/00 5,000,000 5,000,000
10/01 4,555,593 4,406,985
10/02 3,998,008 3,965,375
10/03 4,655,620 4,872,448
10/04 5,441,691 5,625,401
10/05 6,057,106 6,292,851
10/06 7,395,459 7,643,103
10/07 8,183,409 8,471,151
10/08 5,751,793 5,353,956
10/09 5,645,580 5,610,130
10/10 6,830,006 6,491,280
Call 1-800-225-6292 or visit www.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 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 Equity Income Fund | Annual Report | 10/31/10
Performance Update | 10/31/10 Class Z Shares
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Equity Income Fund, compared to that of the Russell
1000 Value Index.
Average Annual Total Returns
(As of October 31, 2010)
- ---------------------------------------------------------------
If If
Period Held Redeemed
- ---------------------------------------------------------------
10 Years 2.79% 2.79%
5 Years 2.12 2.12
1 Year 20.84 20.84
- ---------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2010)
- ---------------------------------------------------------------
Gross Net
- ---------------------------------------------------------------
0.95% 0.85%
- ---------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/00 10,000 10,000
9,079 8,814
10/02 7,933 7,931
9,194 9,745
10/04 10,695 11,251
11,858 12,586
10/06 14,421 15,286
15,808 16,942
10/08 11,104 10,708
10,896 11,220
10/10 13,166 12,983
Call 1-800-225-6292 or visit www.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.
Performance shown for Class Z shares for periods prior to the inception of
Class Z shares on July 6, 2007, 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 Z shares, the
performance for Class Z shares prior to their inception on July 6, 2007, would
have been higher than the performance shown. Class Z shares are not subject to
sales charges and are available for limited groups of eligible investors. All
results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses
will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers
may not be in effect for all funds. Certain fee waivers are contractual through
a specified period. Otherwise, fee waivers can be rescinded at any time. See
the prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitations currently in
effect through March 1, 2012, for Class Z shares. There can be no assurance
that Pioneer will extend the expense limitations 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 Equity Income Fund | Annual Report | 10/31/10 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
- --------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from May 1, 2010 through October 31, 2010.
- ---------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
- ---------------------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/10
- ---------------------------------------------------------------------------------------------------------------------
Ending Account Value $1,034.20 $1,029.18 $1,029.92 $1,032.43 $1,036.68 $1,036.01
(after expenses)
on 10/31/10
- ---------------------------------------------------------------------------------------------------------------------
Expenses Paid $6.10 $11.10 $10.03 $7.38 $3.70 $4.16
During Period*
- ---------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.19%, 2.17%,
1.96%, 1.44%, 0.72%, and 0.81%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the one-half year
period).
16 Pioneer Equity Income Fund | Annual Report | 10/31/10
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of the other
funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of 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 Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2010 through October 31, 2010.
- ---------------------------------------------------------------------------------------------------------------------
Share Class A B C R Y Z
- ---------------------------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/10
- ---------------------------------------------------------------------------------------------------------------------
Ending Account Value $1,019.21 $1,014.27 $1,015.32 $1,017.95 $1,021.58 $1,021.12
(after expenses)
on 10/31/10
- ---------------------------------------------------------------------------------------------------------------------
Expenses Paid $6.06 $11.02 $9.96 $7.32 $3.67 $4.13
During Period*
- ---------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.19%, 2.17%,
1.96%, 1.44%, 0.72%, and 0.81%, for Class A, Class B, Class C, Class R,
Class Y and Class Z shares, respectively, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the one-half year
period).
Pioneer Equity Income Fund | Annual Report | 10/31/10 17
Schedule of Investments | 10/31/10
- ----------------------------------------------------------------------
Shares Value
- ----------------------------------------------------------------------
COMMON STOCKS -- 99.9%
ENERGY -- 11.5%
Integrated Oil & Gas -- 7.1%
135,200 Chevron Corp. $ 11,168,872
207,560 ConocoPhillips 12,329,064
541,600 Marathon Oil Corp. 19,264,712
693,200 QEP Resources, Inc. 22,896,396
--------------
$ 65,659,044
- ----------------------------------------------------------------------
Oil & Gas Drilling -- 1.2%
250,000 Helmerich & Payne, Inc. $ 10,695,000
- ----------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.9%
460,000 EQT Corp. $ 17,222,400
- ----------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.3%
520,000 Spectra Energy Corp. $ 12,360,400
--------------
Total Energy $ 105,936,844
- ----------------------------------------------------------------------
MATERIALS -- 9.3%
Diversified Chemical -- 1.8%
341,400 E.I. du Pont de Nemours and Co. $ 16,141,392
- ----------------------------------------------------------------------
Diversified Metals & Mining -- 2.3%
270,000 Compass Minerals International, Inc. $ 21,294,900
- ----------------------------------------------------------------------
Paper Packaging -- 0.7%
200,000 Sonoco Products Co. $ 6,700,000
- ----------------------------------------------------------------------
Specialty Chemicals -- 3.1%
900,000 Valspar Corp. (b) $ 28,890,000
- ----------------------------------------------------------------------
Steel -- 1.4%
157,448 Carpenter Technology Corp. $ 5,614,596
188,000 Nucor Corp. (b) 7,185,360
--------------
$ 12,799,956
--------------
Total Materials $ 85,826,248
- ----------------------------------------------------------------------
CAPITAL GOODS -- 12.8%
Aerospace & Defense -- 1.5%
92,100 Lockheed Martin Corp. $ 6,565,809
107,200 Northrop Grumman Corp.(b) 6,776,112
--------------
$ 13,341,921
- ----------------------------------------------------------------------
Construction & Farm Machinery & Heavy Trucks -- 3.4%
473,105 PACCAR, Inc. $ 24,251,362
300,000 Trinity Industries, Inc. 6,819,000
--------------
$ 31,070,362
- ----------------------------------------------------------------------
Electrical Components & Equipment -- 1.8%
300,000 Emerson Electric Co. $ 16,470,000
- ----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Equity Income Fund | Annual Report | 10/31/10
- ----------------------------------------------------------------------
Shares Value
- ----------------------------------------------------------------------
Industrial Machinery -- 6.1%
988,195 Gorman-Rupp Co. (b)+ $ 29,467,975
98,342 Illinois Tool Works, Inc. 4,494,229
200,000 Snap-On, Inc. 10,200,000
295,000 The Timken Co. 12,218,900
--------------
$ 56,381,104
--------------
Total Capital Goods $ 117,263,387
- ----------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.7%
Office Services & Supplies -- 0.7%
225,000 Mine Safety Appliances Co. (b) $ 6,336,000
--------------
Total Commercial Services & Supplies $ 6,336,000
- ----------------------------------------------------------------------
TRANSPORTATION -- 1.1%
Railroads -- 1.1%
83,100 CSX Corp. $ 5,106,495
80,400 Norfolk Southern Corp. 4,943,796
--------------
$ 10,050,291
--------------
Total Transportation $ 10,050,291
- ----------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 3.3%
Auto Parts & Equipment -- 3.3%
866,800 Johnson Controls, Inc. $ 30,442,016
--------------
Total Automobiles & Components $ 30,442,016
- ----------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 1.4%
Apparel, Accessories & Luxury Goods -- 1.4%
160,000 VF Corp. (b) $ 13,318,400
--------------
Total Consumer Durables & Apparel $ 13,318,400
- ----------------------------------------------------------------------
CONSUMER SERVICES -- 1.1%
Leisure Facilities -- 1.1%
745,017 Cedar Fair, L.P. $ 10,407,887
--------------
Total Consumer Services $ 10,407,887
- ----------------------------------------------------------------------
MEDIA -- 0.7%
Publishing -- 0.7%
200,000 Reed Elsevier Plc (A.D.R.) (b) $ 6,862,000
--------------
Total Media $ 6,862,000
- ----------------------------------------------------------------------
RETAILING -- 2.4%
Distributors -- 1.5%
280,000 Genuine Parts Co. (b) $ 13,400,800
- ----------------------------------------------------------------------
Home Improvement Retail -- 0.9%
400,000 Lowe's Companies, Inc. $ 8,532,000
--------------
Total Retailing $ 21,932,800
- ----------------------------------------------------------------------
FOOD & DRUG RETAILING -- 1.4%
Drug Retail -- 0.4%
120,000 Walgreen Co. $ 4,065,600
- ----------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/10 19
Schedule of Investments | 10/31/10 (continued)
- ------------------------------------------------------------------------
Shares Value
- ------------------------------------------------------------------------
Food Distributors -- 1.0%
300,000 Sysco Corp. $ 8,838,000
--------------
Total Food & Drug Retailing $ 12,903,600
- ------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 6.8%
Packaged Foods & Meats -- 6.8%
330,000 General Mills, Inc. $ 12,388,200
422,550 H.J. Heinz Co., Inc. 20,751,431
373,000 Hershey Foods Corp. (b) 18,459,770
350,000 Sara Lee Corp. 5,015,500
100,000 The J.M. Smucker Co. 6,428,000
--------------
$ 63,042,901
--------------
Total Food, Beverage & Tobacco $ 63,042,901
- ------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 3.3%
Household Products -- 3.3%
188,800 Clorox Co. (b) $ 12,564,640
231,557 Colgate-Palmolive Co. 17,857,676
--------------
$ 30,422,316
--------------
Total Household & Personal Products $ 30,422,316
- ------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.8%
Health Care Equipment -- 1.8%
320,000 Baxter International, Inc. $ 16,288,000
--------------
Total Health Care Equipment & Services $ 16,288,000
- ------------------------------------------------------------------------
PHARMACEUTICALS & BIOTECHNOLOGY -- 6.7%
Pharmaceuticals -- 6.7%
306,600 Abbott Laboratories, Inc. $ 15,734,712
539,500 Bristol-Myers Squibb Co. 14,512,550
278,000 Eli Lilly & Co. 9,785,600
373,005 Merck & Co., Inc. 13,532,621
500,000 Pfizer, Inc. 8,700,000
--------------
$ 62,265,483
--------------
Total Pharmaceuticals & Biotechnology $ 62,265,483
- ------------------------------------------------------------------------
BANKS -- 4.3%
Diversified Banks -- 2.6%
750,000 U.S. Bancorp $ 18,135,000
237,500 Wells Fargo & Co. 6,189,250
--------------
$ 24,324,250
- ------------------------------------------------------------------------
Regional Banks -- 1.2%
450,000 SunTrust Banks, Inc. $ 11,259,000
- ------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 0.5%
250,000 New York Community Bancorp, Inc. (b) $ 4,232,500
--------------
Total Banks $ 39,815,750
- ------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Annual Report | 10/31/10
- ---------------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.9%
Asset Management & Custody Banks -- 2.6%
100,000 Northern Trust Corp. $ 4,963,000
230,000 T. Rowe Price Associates, Inc. (b) 12,712,100
252,000 The Bank of New York Mellon Corp. 6,315,120
--------------
$ 23,990,220
- ---------------------------------------------------------------------------
Consumer Finance -- 0.9%
200,000 American Express Co. $ 8,292,000
- ---------------------------------------------------------------------------
Diversified Finance Services -- 0.4%
105,600 JPMorgan Chase & Co. $ 3,973,729
--------------
Total Diversified Financials $ 36,255,948
- ---------------------------------------------------------------------------
INSURANCE -- 6.0%
Life & Health Insurance -- 1.4%
228,800 Aflac, Inc. (b) $ 12,787,632
- ---------------------------------------------------------------------------
Property & Casualty Insurance -- 4.6%
410,200 Chubb Corp. $ 23,799,804
255,000 Cincinnati Financial Corp. (b) 7,507,200
200,000 The Traveler Companies, Inc. 11,040,000
--------------
$ 42,347,004
--------------
Total Insurance $ 55,134,636
- ---------------------------------------------------------------------------
REAL ESTATE -- 1.9%
Office Real Estate Investment Trust -- 0.8%
100,000 Alexandria Real Estate Equities, Inc. (b) $ 7,348,000
- ---------------------------------------------------------------------------
Specialized Real Estate Investment Trust -- 1.1%
250,000 Nationwide Health Properties, Inc. $ 10,207,500
--------------
Total Real Estate $ 17,555,500
- ---------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.5%
Data Processing & Outsourced Services -- 0.5%
100,000 Automatic Data Processing, Inc. $ 4,442,000
--------------
Total Software & Services $ 4,442,000
- ---------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 0.8%
Computer Hardware -- 0.8%
170,000 Hewlett-Packard Co. $ 7,150,200
--------------
Total Technology Hardware & Equipment $ 7,150,200
- ---------------------------------------------------------------------------
SEMICONDUCTORS -- 5.2%
Semiconductor Equipment -- 0.4%
300,000 Applied Materials, Inc. $ 3,708,000
- ---------------------------------------------------------------------------
Semiconductors -- 4.8%
410,300 Analog Devices, Inc. $ 13,814,801
440,000 Intel Corp. 8,830,800
500,000 Microchip Technology, Inc. (b) 16,090,000
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/10 21
Schedule of Investments | 10/31/10 (continued)
- -----------------------------------------------------------------------------------------
Shares Value
- -----------------------------------------------------------------------------------------
Semiconductors -- (continued)
220,000 Xilinx, Inc.(b) $ 5,898,200
--------------
$ 44,633,801
--------------
Total Semiconductors $ 48,341,801
- -----------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.2%
Integrated Telecommunication Services -- 4.2%
300,000 AT&T Corp. $ 8,550,000
437,000 CenturyLink, Inc. (b) 18,083,060
80,793 Frontier Communications Corp. (b) 709,363
336,584 Verizon Communications, Inc. 10,928,882
--------------
$ 38,271,305
--------------
Total Telecommunication Services $ 38,271,305
- -----------------------------------------------------------------------------------------
UTILITIES -- 8.8%
Electric Utilities -- 2.3%
152,500 DPL, Inc. $ 3,980,250
283,800 Duke Energy Corp. (b) 5,167,998
329,700 Southern Co. 12,485,739
--------------
$ 21,633,987
- -----------------------------------------------------------------------------------------
Gas Utilities -- 3.7%
392,100 AGL Resources, Inc. (b) $ 15,393,846
130,000 National Fuel Gas Co. 7,173,400
693,200 Questar Corp. 11,763,604
--------------
$ 34,330,850
- -----------------------------------------------------------------------------------------
Multi-Utilities -- 2.8%
530,000 NSTAR (b) $ 22,106,300
57,800 Wisconsin Energy Corp. 3,441,412
--------------
$ 25,547,712
--------------
Total Utilities $ 81,512,549
- -----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $657,128,673) $ 921,777,862
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Principal
Amount
- -----------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 12.8%
SECURITIES LENDING COLLATERAL -- 12.8% (c)
Certificates of Deposit:
$ 3,304,675 Bank of Nova Scotia, 0.37%, 9/29/11 $ 3,304,675
2,313,272 BBVA Group NY, 0.61%, 7/26/11 2,313,272
3,304,675 BNP Paribas Bank NY, 0.38%, 11/8/10 3,304,675
1,652,337 BNP Paribas Bank NY, 0.3%, 1/20/11 1,652,337
3,304,675 Canadian Imperial Bank of Commerce NY, 0.29%, 4/27/11 3,304,675
1,652,337 DNB Nor Bank ASA NY, 0.27%, 11/10/10 1,652,337
3,304,675 Nordea New York, 0.5%, 12/10/10 3,304,675
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Annual Report | 10/31/10
- ---------------------------------------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------------------------------------
Certificates of Deposit -- (continued)
$3,304,675 RoboBank Netherland NV NY, 0.44%, 8/8/11 $ 3,304,675
3,304,675 Royal Bank of Canada NY, 0.26%, 1/21/11 3,304,675
3,304,675 SocGen NY, 0.34%, 11/10/10 3,304,675
1,652,337 Svenska NY, 0.275%, 11/12/10 1,652,337
--------------
30,403,008 $ 30,403,008
- ---------------------------------------------------------------------------------------
Commercial Paper:
1,982,805 American Honda Finance, 0.28%, 5/4/11 $ 1,982,805
1,328,506 American Honda Finance, 1.04%, 6/20/11 1,328,506
1,215,242 Australia & New Zealand Banking Group, 1.04%, 8/4/11 1,215,242
3,371,032 Caterpillar Financial Services Corp., 1.04%, 6/24/11 3,371,032
3,635,142 CBA, 0.31%, 1/3/11 3,635,142
2,312,376 CHARFD, 0.31%, 12/14/10 2,312,376
1,982,311 CLIPPR, 0.28%, 12/1/10 1,982,311
2,916,026 FAIRPP, 0.3%, 11/9/10 2,916,026
1,321,553 FASCO, 0.27%, 12/1/10 1,321,553
3,305,068 Federal Home Loan Bank, 0.37%, 6/1/11 3,305,068
1,652,266 GE Corp., 0.34%, 1/26/11 1,652,266
330,284 General Electric Capital Corp., 0.37%, 6/6/11 330,284
1,321,553 OLDLLC, 0.27%, 12/1/10 1,321,553
1,810,712 OLDLLC, 0.27%, 12/2/10 1,810,712
3,301,094 SEB, 0.0%, 2/7/11 3,301,094
1,651,326 SOCNAM, 0.0%, 1/14/11 1,651,326
1,651,879 SRCPP, 0.27%, 12/6/10 1,651,871
2,479,222 STRAIT, 0.25%, 12/8/10 2,479,222
1,651,445 TBLLC, 0.0%, 1/10/11 1,651,445
1,651,928 TBLLC, 0.27%, 12/2/10 1,651,928
3,304,675 Toyota Motor Credit Corp., 0.44%, 9/8/11 3,304,675
2,013,225 VARFUN, 0.35%, 1/20/11 2,013,225
1,982,868 Wachovia, 0.39%, 3/22/11 1,982,868
1,322,916 Wachovia, 0.42%, 10/15/11 1,322,916
3,304,675 Westpac, 0.31%, 07/29/11 3,304,675
--------------
$ 52,800,121
- ---------------------------------------------------------------------------------------
Tri-party Repurchase Agreements:
8,828,174 Barclays Capital Markets, 0.22%, 11/1/10 $ 8,828,174
6,609,349 Deutsche Bank Securities, Inc., 0.21%, 11/1/10 6,609,349
6,609,349 HSBC Bank USA NA, 0.22% 11/1/10 6,609,349
3,304,675 RBS Securities, Inc., 0.22%, 11/1/10 3,304,675
--------------
$ 25,351,547
- ---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/10 23
Schedule of Investments | 10/31/10 (continued)
- ---------------------------------------------------------------------------
Shares Value
- ---------------------------------------------------------------------------
Money Market Mutual Funds:
3,304,675 BlackRock Liquidity Temporary Cash Fund $ 3,304,675
3,304,675 Dreyfus Preferred Money Market Fund 3,304,675
3,304,675 Fidelity Prime Money Market Fund 3,304,675
--------------
$ 9,914,025
--------------
Total Securities Lending Collateral $ 118,468,701
- ---------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $118,468,701) $ 118,468,701
- ---------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 112.7%
(Cost $775,597,374) (a) $1,040,246,563
- ---------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (12.7)% $ (117,453,401)
- ---------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 922,793,162
===========================================================================
(A.D.R.) American Depositary Receipt
+ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company.
(a) At October 31, 2010, the net unrealized gain on investments based on
cost for federal income tax purposes of $764,635,674 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $285,581,719
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (9,970,830)
------------
Net unrealized gain $275,610,889
============
(b) At October 31, 2010, the following securities were out on loan:
- ---------------------------------------------------------------------------
Shares Description Value
- ---------------------------------------------------------------------------
26,800 Aflac, Inc. $1,497,852
900 AGL Resources, Inc. 35,334
65,800 Alexandria Real Estate Equities, Inc. 4,834,984
47,000 Clorox Co. 3,127,850
257,000 Duke Energy Corp. 4,679,970
238,500 CenturyLink, Inc. 9,869,130
116,968 Cincinnati Financial Corp. 3,443,538
79,900 Frontier Communications Corp. 701,522
28,000 Genuine Parts Co. 1,340,080
195,632 Gorman-Rupp Co. 5,833,746
60,000 Hershey Foods Corp. 2,969,400
495,000 Microchip Technology, Inc. 15,929,100
3,800 Mine Safety Appliances Co. 107,008
247,500 New York Community Bancorp, Inc. 4,190,175
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Annual Report | 10/31/10
- ---------------------------------------------------------------------------
Shares Description Value
- ---------------------------------------------------------------------------
7,500 Northrop Grumman Corp. $ 474,075
518,100 NSTAR 21,609,951
170,700 Nucor Corp. 6,524,154
100 Reed Elsevier Plc (A.D.R.) 3,431
110,000 T. Rowe Price Associates, Inc. 6,079,700
4,800 VF Corp. 399,552
665,000 Valspar Corp. 21,346,500
51,200 Xilinx, Inc. 1,372,672
- ---------------------------------------------------------------------------
Total $116,369,724
- ---------------------------------------------------------------------------
(c) Security lending collateral is managed by Credit Suisse AG, New York
Branch.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 2010, aggregated $130,135,852 and $212,699,118,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Highest priority is given to Level 1 inputs and lowest priority is given to
Level 3.
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.)
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments)
The following is a summary of the inputs used as of October 31, 2010, in valuing
the Fund's assets:
- -----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
- -----------------------------------------------------------------------------------------------
Common Stocks $921,777,862 $ -- $-- $ 921,777,862
Temporary Cash Investments -- 108,554,676 108,554,676
Money Market Mutual Funds 9,914,025 -- -- 9,914,025
- -----------------------------------------------------------------------------------------------
Total $931,691,887 $108,554,676 $-- $1,040,246,563
===============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/10 25
Statement of Assets and Liabilities | 10/31/10
ASSETS:
Investment in securities of unaffiliated issuers, at fair value
(including securities loaned of $116,369,724) (cost $767,690,894) $1,010,778,588
Investment in securities of affiliated issuers, at fair value
(cost $7,906,480) 29,467,975
- ---------------------------------------------------------------------------------------
Total Investment in securities, at fair value (cost $775,597,374) $1,040,246,563
Receivables --
Investment securities sold 227,896
Fund shares sold 1,795,559
Dividends 1,600,346
Other 50,645
- ---------------------------------------------------------------------------------------
Total assets $1,043,921,009
=======================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 1,765,030
Upon return of securities loaned 118,468,701
Due to bank 593,273
Due to affiliates 219,052
Accrued expenses 81,791
- ---------------------------------------------------------------------------------------
Total liabilities $ 121,127,847
=======================================================================================
NET ASSETS:
Paid-in capital $ 866,286,112
Undistributed net investment income 13,070,002
Accumulated net realized loss on investments (221,212,140)
Net unrealized gain on investments 264,649,188
- ---------------------------------------------------------------------------------------
Total net assets $ 922,793,162
=======================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $606,693,161/25,363,887 shares) $ 23.92
Class B (based on $32,603,786/1,371,924 shares) $ 23.77
Class C (based on $66,536,162/2,811,958 shares) $ 23.66
Class R (based on $67,459,662/2,794,213 shares) $ 24.14
Class Y (based on $148,995,017/6,185,522 shares) $ 24.09
Class Z (based on $505,374/21,105 shares) $ 23.95
MAXIMUM OFFERING PRICE:
Class A ($23.92 [divided by] 94.25%) $ 25.38
=======================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Annual Report | 10/31/10
Statement of Operations
For the Year Ended 10/31/10
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $52,920)
(including income from affiliated issuers of $415,042) $27,693,697
Interest 576
Income from securities loaned, net 140,499
- -------------------------------------------------------------------------------------------
Total investment income $ 27,834,772
- -------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 5,355,199
Transfer agent fees and expenses
Class A 797,673
Class B 147,754
Class C 99,445
Class R 8,654
Class Y 10,952
Class Z 346
Distribution fees
Class A 1,479,590
Class B 373,812
Class C 668,205
Class R 342,519
Shareholder communications expense 1,089,334
Administrative reimbursements 277,420
Custodian fees 20,187
Registration fees 113,909
Professional fees 83,760
Printing expense 78,422
Fees and expenses of nonaffiliated trustees 29,476
Miscellaneous 98,675
- -------------------------------------------------------------------------------------------
Net expenses $ 11,075,332
- -------------------------------------------------------------------------------------------
Net investment income $ 16,759,440
- -------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on:
Investments $13,155,745
Class action 5,884 $ 13,161,629
- -------------------------------------------------------------------------------------------
Change in net unrealized gain on investments $134,326,257
- -------------------------------------------------------------------------------------------
Net gain on investments $147,487,886
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $164,247,326
===========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/10 27
Statements of Changes in Net Assets
For the Years Ended 10/31/10 and 10/31/09, respectively
Year Ended Year Ended
10/31/10 10/31/09
FROM OPERATIONS:
Net investment income $ 16,759,440 $ 22,663,794
Net realized gain (loss) on investments 13,161,629 (190,219,889)
Change in net unrealized gain on investments 134,326,257 145,825,966
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations $164,247,326 $(21,730,129)
================================================================================================
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.40 and $0.50 per share, respectively) $(10,749,043) $(14,723,941)
Class B ($0.18 and $0.32 per share, respectively) (309,193) (859,684)
Class C ($0.22 and $0.34 per share, respectively) (682,700) (1,360,199)
Class R ($0.35 and $0.44 per share, respectively) (1,077,046) (1,438,614)
Class Y ($0.51 and $0.59 per share, respectively) (2,894,237) (1,903,303)
Class Z ($0.50 and $0.57 per share, respectively) (8,093) (5,589)
- ------------------------------------------------------------------------------------------------
Total distributions to shareowners $(15,720,312) $(20,291,330)
- ------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $169,859,562 $256,184,922
Reinvestment of distributions 13,101,969 17,273,103
Cost of shares repurchased (266,087,513) (262,044,803)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from fund
share transactions $(83,125,982) $ 11,413,222
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 65,401,032 $(30,608,237)
NET ASSETS:
Beginning of year 857,392,130 888,000,367
- ------------------------------------------------------------------------------------------------
End of year $922,793,162 $857,392,130
- ------------------------------------------------------------------------------------------------
Undistributed net investment income $ 13,070,002 $ 12,191,599
- ------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Annual Report | 10/31/10
'10 Shares '10 Amount '09 Shares '09 Amount
Class A
Shares sold 4,873,621 $108,355,144 6,831,723 $126,912,557
Reinvestment of distributions 440,507 9,726,523 699,159 13,048,277
Less shares repurchased (7,940,823) (175,843,400) (9,581,788) (177,386,543)
- ------------------------------------------------------------------------------------------------
Net decrease (2,626,695) $(57,761,733) (2,050,906) $(37,425,709)
================================================================================================
Class B
Shares sold 55,270 $ 1,209,791 255,365 $ 4,685,331
Reinvestment of distributions 12,162 266,465 37,812 700,802
Less shares repurchased (832,631) (18,239,568) (1,302,936) (23,863,770)
- ------------------------------------------------------------------------------------------------
Net decrease (765,199) $(16,763,312) (1,009,759) $(18,477,637)
================================================================================================
Class C
Shares sold 286,363 $ 6,286,178 745,551 $ 13,807,279
Reinvestment of distributions 21,035 459,127 48,186 888,701
Less shares repurchased (929,112) (20,236,101) (1,555,650) (28,240,579)
- ------------------------------------------------------------------------------------------------
Net decrease (621,714) $(13,490,796) (761,913) $(13,544,599)
================================================================================================
Class R
Shares sold 464,387 $ 10,404,925 1,077,124 $ 20,017,160
Reinvestment of distributions 46,897 1,045,338 74,273 1,398,389
Less shares repurchased (1,090,573) (24,270,696) (787,987) (14,921,512)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) (579,289) $(12,820,433) 363,410 $ 6,494,037
================================================================================================
Class Y
Shares sold 1,935,058 $ 43,250,835 4,875,243 $ 90,507,277
Reinvestment of distributions 71,837 1,598,197 65,783 1,233,862
Less shares repurchased (1,227,685) (27,349,275) (896,241) (17,519,830)
- ------------------------------------------------------------------------------------------------
Net increase 779,210 $ 17,499,757 4,044,785 $ 74,221,309
================================================================================================
Class Z
Shares sold 15,868 $ 352,689 13,823 $ 255,318
Reinvestment of distributions 285 6,319 167 3,072
Less shares repurchased (6,538) (148,473) (6,044) (112,569)
- ------------------------------------------------------------------------------------------------
Net increase 9,615 $ 210,535 7,946 $ 145,821
================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/10 29
Financial Highlights
- ---------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/10 10/31/09 10/31/08 10/31/07 10/31/06
- ---------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 20.24 $ 21.28 $ 33.10 $ 33.53 $ 29.23
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.46 $ 0.58 $ 0.75 $ 0.69 $ 0.68
Net realized and unrealized gain (loss) on investments 3.63 (1.12) (10.03) 2.50 5.36
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.09 $ (0.54) $ (9.28) $ 3.19 $ 6.04
Distributions to shareowners:
Net investment income (0.40) (0.50) (0.67) (0.73) (0.66)
Net realized gain -- (1.81) (2.89) (1.08)
Tax return of capital -- -- (0.06) -- --
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.69 $ (1.04) $ (11.82) $ (0.43) $ 4.30
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.92 $ 20.24 $ 21.28 $ 33.10 $ 33.53
=====================================================================================================================
Total return* 20.36% (2.30)% (29.99)% 10.22% 21.61%
Ratio of net expenses to average net assets+ 1.19% 1.23% 1.11% 1.03% 1.04%
Ratio of net investment income to average net assets+ 1.93% 2.98% 2.67% 2.27% 2.27%
Portfolio turnover rate 15% 28% 19% 14% 32%
Net assets, end of period (in thousands) $606,693 $566,439 $639,388 $1,063,910 $840,640
Ratios with reduction for fees paid indirectly:
Net expenses 1.19% 1.23% 1.10% 1.02% 1.03%
Net investment income 1.93% 2.98% 2.68% 2.28% 2.28%
=====================================================================================================================
* Assumes initial investment at net asset value at the beginning of each year,
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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Annual Report | 10/31/10
- ---------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/10 10/31/09 10/31/08 10/31/07 10/31/06
- ---------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 20.10 $ 21.14 $ 32.88 $ 33.32 $ 29.05
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.38 $ 0.51 $ 0.57 $ 0.51 $ 0.47
Net realized and unrealized gain (loss) on investments 3.47 (1.23) (10.02) 2.38 5.26
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.85 $ (0.72) $ (9.45) $ 2.89 $ 5.73
Distributions to shareowners:
Net investment income (0.18) (0.32) (0.44) (0.44) (0.38)
Net realized gain -- (1.81) (2.89) (1.08)
Tax return of capital -- -- (0.04) -- --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.67 $ (1.04) $(11.74) $ (0.44) $ 4.27
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.77 $ 20.10 $ 21.14 $ 32.88 $ 33.32
===============================================================================================================
Total return* 19.23% (3.26)% (30.58)% 9.30% 20.55%
Ratio of net expenses to average net assets+ 2.17% 2.20% 1.96% 1.90% 1.91%
Ratio of net investment income to average net assets+ 0.98% 2.08% 1.83% 1.42% 1.44%
Portfolio turnover rate 15% 28% 19% 14% 32%
Net assets, end of period (in thousands) $32,604 $42,950 $66,530 $134,618 $155,733
Ratios with reduction for fees paid indirectly:
Net expenses 2.17% 2.20% 1.96% 1.89% 1.90%
Net investment income 0.98% 2.08% 1.83% 1.43% 1.45%
===============================================================================================================
* Assumes initial investment at net asset value at the beginning of each year,
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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/10 31
Financial Highlights (continued)
- ---------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/10 10/31/09 10/31/08 10/31/07 10/31/06
- ---------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 20.01 $ 21.04 $ 32.75 $ 33.20 $ 28.96
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.32 $ 0.47 $ 0.55 $ 0.46 $ 0.45
Net realized and unrealized gain (loss) on investments 3.55 (1.16) (9.94) 2.44 5.29
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.87 $ (0.69) $ (9.39) $ 2.90 $ 5.74
Distributions to shareowners:
Net investment income (0.22) (0.34) (0.47) (0.46) (0.42)
Net realized gain -- -- (1.81) (2.89) (1.08)
Tax return of capital -- -- (0.04) -- --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.65 $ (1.03) $(11.71) $ (0.45) $ 4.24
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.66 $ 20.01 $ 21.04 $ 32.75 $ 33.20
===============================================================================================================
Total return* 19.46% (3.11)% (30.52)% 9.37% 20.66%
Ratio of net expenses to average net assets+ 1.96% 2.04% 1.87% 1.82% 1.83%
Ratio of net investment income to average net assets+ 1.17% 2.21% 1.92% 1.48% 1.49%
Portfolio turnover rate 15% 28% 19% 14% 32%
Net assets, end of period (in thousands) $66,536 $68,719 $88,291 $157,553 $139,915
Ratios with reduction for fees paid indirectly:
Net expenses 1.96% 2.04% 1.87% 1.81% 1.82%
Net investment income 1.17% 2.21% 1.92% 1.49% 1.50%
===============================================================================================================
* Assumes initial investment at net asset value at the beginning of each year,
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.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Annual Report | 10/31/10
- --------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/10 10/31/09 10/31/08 10/31/07 10/31/06
- --------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 20.43 $ 21.45 $ 33.34 $ 33.73 $ 29.39
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.44 $ 0.49 $ 0.68 $ 0.54 $ 0.51
Net realized and unrealized gain (loss) on investments 3.62 (1.07) (10.09) 2.63 5.51
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.07 $ (0.58) $ (9.41) $ 3.17 $ 6.02
Distributions to shareowners:
Net investment income (0.35) (0.44) (0.62) (0.67) (0.60)
Net realized gain -- (1.81) (2.89) (1.08)
Tax return of capital -- -- (0.05) -- --
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.72 $ (1.02) $(11.89) $ (0.39) $ 4.34
- --------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.14 $ 20.43 $ 21.45 $ 33.34 $ 33.73
==============================================================================================================
Total return* 20.03% (2.50)% (30.14)% 10.10% 21.41%
Ratio of net expenses to average net assets+ 1.44% 1.44% 1.33% 1.20% 1.23%
Ratio of net investment income to average net assets+ 1.68% 2.71% 2.44% 2.07% 2.00%
Portfolio turnover rate 15% 28% 19% 14% 32%
Net assets, end of period (in thousands) $67,460 $68,904 $64,559 $67,239 $26,140
Ratios with reduction for fees paid indirectly:
Net expenses 1.44% 1.44% 1.33% 1.19% 1.22%
Net investment income 1.68% 2.71% 2.44% 2.08% 2.01%
==============================================================================================================
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/10 33
Financial Highlights (continued)
- ---------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/10 10/31/09 10/31/08 10/31/07 10/31/06
- ---------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 20.37 $ 21.41 $ 33.28 $ 33.68 $ 29.35
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.49 $ 0.42 $ 0.67 $ 0.91 $ 0.73
Net realized and unrealized gain (loss) on investments 3.74 (0.87) (9.89) 2.42 5.45
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.22 $ (0.45) $ (9.22) $ 3.33 $ 6.18
Distributions to shareowners:
Net investment income (0.51) (0.59) (0.77) (0.84) (0.77)
Net realized gain -- -- (1.81) (2.89) (1.08)
Tax return of capital -- -- (0.07) -- --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.71 $ (1.04) $(11.87) $ (0.40) $ 4.33
- ---------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.09 $ 20.37 $ 21.41 $ 33.28 $ 33.68
===============================================================================================================
Total return* 20.98% (1.85)% (29.72)% 10.66% 22.10%
Ratio of net expenses to average net assets+ 0.72% 0.75% 0.72% 0.66% 0.65%
Ratio of net investment income to average net assets+ 2.38% 3.10% 3.09% 2.66% 2.61%
Portfolio turnover rate 15% 28% 19% 14% 32%
Net assets, end of period (in thousands) $148,995 $110,148 $29,157 $11,471 $12,956
Ratios with reduction for fees paid indirectly:
Net expenses 0.72% 0.75% 0.72% 0.66% 0.65%
Net investment income 2.38% 3.10% 3.09% 2.66% 2.61%
===============================================================================================================
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
+ Ratios with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Equity Income Fund | Annual Report | 10/31/10
- ------------------------------------------------------------------------------------------------------
Year Year Year
Ended Ended Ended 7/6/07 (a)
10/31/10 10/31/09 10/31/08 to 10/31/07
- ------------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $20.27 $21.30 $ 33.12 $ 34.18
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.38 $ 0.45 $ 0.80 $ 0.24
Net realized and unrealized gain (loss) on investments 3.80 (0.91) (9.98) (1.08)
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 4.18 $(0.46) $ (9.18) $ (0.84)
- ------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.50) (0.57) (0.76) (0.22)
Net realized gain -- -- (1.81) --
Tax return of capital -- -- (0.07) --
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 3.68 $(1.03) $(11.82) $ (1.06)
- ------------------------------------------------------------------------------------------------------
Net asset value, end of period $23.95 $20.27 $ 21.30 $ 33.12
======================================================================================================
Total return* 20.84% (1.88)% (29.75)% (2.46)%(b)
Ratio of net expenses to average net assets+ 0.81% 0.79% 0.76% 0.67%**
Ratio of net investment income to average net assets+ 2.25% 3.24% 3.03% 2.26%**
Portfolio turnover rate 15% 28% 19% 14%(b)
Net assets, end of period (in thousands) $ 505 $ 233 $ 75 $ 97
Ratios with reduction for fees paid indirectly:
Net expenses 0.81% 0.95% 0.76% 0.67%**
Net investment income 2.25% 3.08% 3.03% 2.26%**
======================================================================================================
(a) Class Z shares were first publicly offered on July 6, 2007.
(b) Not annualized.
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/10 35
Notes to Financial Statements | 10/31/10
1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the Fund) is 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
current income and long-term growth of capital from a portfolio consisting
primarily of income producing equity securities of U.S. corporations.
The Fund offers six classes of shares designated as Class A, Class B, Class C,
Class R, Class Y and Class Z shares. Class R shares commenced operations on
April 1, 2003. Class Z shares were first publicly offered on July 6, 2007.
Effective as of the close of business on December 31, 2009, Class B shares are
no longer offered to new or existing shareholders, except that dividends and/or
capital gain distributions may continue to be reinvested in Class B shares, and
shareholders may exchange their Class B shares for Class B shares of other
Pioneer funds, as permitted by existing exchange privileges. Each class of
shares represents an interest in the same portfolio of investments of the Fund
and has identical rights (based on relative net asset values) to assets and
liquidation proceeds. Share classes can bear different rates of class-specific
fees and expenses such as transfer agent and distribution fees. Differences in
class-specific fees and expenses will result in differences in net investment
income and, therefore, the payment of different dividends from net investment
income earned by each class. The Amended and Restated Declaration of Trust of
the Fund gives the Board the flexibility to specify either per-share voting or
dollar-weighted voting when submitting matters for shareholder approval. Under
per-share voting, each share of a class of the Fund is entitled to one vote.
Under dollar-weighted voting, a shareholder's voting power is determined not by
the number of shares owned, but by the dollar value of the shares on the record
date. Each share class has exclusive voting rights with respect to matters
affecting only that class, including with respect to the distribution plan for
that class. There is no distribution plan for Class Y or Class Z shares. Class
B shares convert to Class A shares approximately eight years after the date of
purchase.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making the Fund more susceptible to
any economic, political or regulatory developments or other risks affecting
those industries or 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.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
36 Pioneer Equity Income Fund | Annual Report | 10/31/10
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In computing
the net asset value, securities that have traded on an exchange are valued
at the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued at the mean
between the last bid and asked prices. Securities for which market prices
and/or quotations are not readily available or are considered to be
unreliable are valued using fair value methods pursuant to procedures
adopted by the Board of Trustees.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
The Fund may use 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. Thus, the valuation of the Fund's securities may differ from exchange
prices. At October 31, 2010, there were no securities that were valued using
fair value methods (other than securities that were valued using prices
supplied by independent pricing services). 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. Short-term fixed income securities with remaining maturities of
sixty days or less generally are valued at amortized cost. Money market
mutual funds are valued at net asset value.
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.
Pioneer Equity Income Fund | Annual Report | 10/31/10 37
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
share-owners. Therefore, no federal income tax provision is required. Tax
years for the prior three fiscal years remain subject to examination by tax
authorities.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as from or in excess of net
investment income or as from net realized gain on investment transactions,
or as from paid-in capital, depending on the type of book/tax differences
that may exist.
At October 31, 2010, The Fund had a net capital loss carryforward of
$219,763,797 of which the following amounts will expire between 2016 and
2017 if not utilized; $30,143,225 in 2016 and $189,620,572 in 2017.
At October 31, 2010, the Fund reclassified $160,725 to decrease
undistributed net investment income and $160,725 to decrease accumulated net
realized loss on investments to reflect permanent book/tax differences. The
reclassification has no impact on the net assets of the Fund and presents
the Fund's capital accounts on a tax-basis.
The tax character of current year distributions paid will be determined at
the end of the current taxable year. The tax character of distributions paid
during the years ended October 31, 2010 and October 31, 2009 was as follows:
- --------------------------------------------------------------------------------
2010 2009
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $15,720,312 $20,291,330
- --------------------------------------------------------------------------------
Total $15,720,312 $20,291,330
================================================================================
The following shows the components of distributable earnings on a federal
income tax-basis at October 31, 2010:
- --------------------------------------------------------------------------------
2010
- --------------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 659,959
Capital loss carryforward (219,763,797)
Unrealized appreciation 275,610,888
- --------------------------------------------------------------------------------
Total $ 56,507,050
================================================================================
38 Pioneer Equity Income Fund | Annual Report | 10/31/10
The difference between book-basis and tax-basis unrealized appreciation is
attributable to the tax deferral of losses on wash sales, the tax basis
adjustments on partnerships, and REIT holdings.
C. 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 $47,642 in underwriting commissions on the sale of Class A shares
during the year ended October 31, 2010.
D. 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, Class B, Class C and Class R shares of the Fund,
respectively (see Note 4). Class Y and Class Z shares do not pay
distribution fees. Shareowners of each class participate in all expenses and
fees paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services which 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 B, Class C, Class R, Class Y
and Class Z shares can reflect different transfer agent and distribution
expense rates.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
Pioneer Equity Income Fund | Annual Report | 10/31/10 39
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors. When entering into a securities loan
transaction, the Fund typically receives cash collateral from the borrower
equal to at least the fair value of the securities loaned, which is invested
in temporary investments. Credit Suisse AG, New York Branch, as the Fund's
securities lending agent, manages the Fund's securities lending collateral.
The income earned on the investment of collateral is shared with the
borrower and the lending agent in payment of any rebate due to the borrower
with respect to the securities loan, and in compensation for the lending
agent's services to the Fund. The Fund also continues to receive payments in
lieu of dividends or interest on the securities loaned. Gain or loss on the
value of the loaned securities that may occur during the term of the loan
will be for the account of the Fund. The amount of the collateral is
required to be adjusted daily to reflect any price fluctuation in the value
of the loaned securities. If the required market value of the collateral is
less than the value of the loaned securities, the borrower is required to
deliver additional collateral for the account of the Fund prior to the close
of business on that day. The Fund has the right, under the lending
agreement, to terminate the loan and recover the securities from the
borrower with prior notice. The Fund is required to return the cash
collateral to the borrower and could suffer a loss if the value of the
collateral, as invested, has declined.
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 0.60% of
the Fund's average daily net assets up to $10 billion and 0.575% of the excess
over $10 billion. For the year ended October 31, 2010, the effective management
fee (excluding waivers and/or assumption of expenses) was equivalent to 0.60%
of the Fund's average daily net assets.
Pioneer has contractually agreed to limit ordinary operating expenses to the
extent required to reduce Class Z expenses to 0.85% of the average daily net
assets attributable to Class Z shares. This expense limitation is in effect
through March 1, 2012. There can be no assurance that PIM will extend the
expense limitation agreement beyond the date referred to above.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting, and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$47,934 in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 2010.
40 Pioneer Equity Income Fund | Annual Report | 10/31/10
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the year ended October 31, 2010, such out-of-pocket expenses by class of
shares were as follows:
- --------------------------------------------------------------------------------
Shareholder Communications:
- --------------------------------------------------------------------------------
Class A $ 751,315
Class B 35,530
Class C 88,019
Class R 174,452
Class Y 39,892
Class Z 126
- --------------------------------------------------------------------------------
Total $1,089,334
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $146,578 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2010.
4. Distribution and Service Plans
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, Class B, Class C
and Class R 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 B and Class C
shares. The fee for Class B and 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 B
and Class C shares. Pursuant to the Plan, the Fund further pays PFD 0.50% of
the average daily net assets attributable to Class R shares for distribution
services. Included in "Due to affiliates" reflected on the Statement of Assets
and Liabilities is $24,540 in distribution fees payable to PFD at October 31,
2010.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans in reimbursement for actual expenditures.
Pioneer Equity Income Fund | Annual Report | 10/31/10 41
In addition, redemptions of each class of shares (except Class R, Class Y and
Class Z 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 18 months of purchase (within 12 months for
purchases made on or after April 1, 2009). Class B shares redeemed within five
years of purchase are subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed.
Redemptions of Class C shares within one year 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 R, Class Y
or Class Z shares. Proceeds from the CDSCs are paid to PFD. For the six months
ended October 31, 2010, CDSCs in the amount of $59,663 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended October 31, 2010, the Fund's expenses
were not reduced under such arrangements.
6. Line Of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a $165 million committed, unsecured revolving line of
credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of the amount available under
the facility or the limits set for borrowing by the Fund's prospectus and the
1940 Act. Interest on borrowings is payable at the higher of the London
Interbank Offered Rate (LIBOR) on the borrowing date plus 1.25% on an
annualized basis or the Federal Funds Rate on the borrowing date plus 1.25% on
an annualized basis. The Funds pay an annual commitment fee for this facility.
The commitment fee is allocated among participating Funds based on an
allocation schedule set forth in the credit agreement. For the year ended
October 31, 2010, the Fund had no borrowings under this agreement.
42 Pioneer Equity Income Fund | Annual Report | 10/31/10
7. Affiliated Companies
The Fund's investments in certain companies may exceed 5% of the outstanding
voting stock of those companies. Such companies are deemed affiliates of the
Fund for financial reporting purposes. The following summarizes transactions
with affiliates of the Fund for year ended October 31, 2010:
- -------------------------------------------------------------------------------------------------------
Beginning Corporate Ending
Balance Purchases Actions Balance Dividend
Affiliates (shares) (shares) (shares) (shares) Income Value
- -------------------------------------------------------------------------------------------------------
Gorman-Rupp Co. 988,195 -- -- 988,195 $415,042 $29,467,975
8. Subsequent Events
In preparing these financial statements, PIM has evaluated the impact of all
events and transactions for potential recognition or disclosure and has
determined that there were no subsequent events requiring recognition or
disclosure in the financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/10 43
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Equity Income Fund:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Equity Income Fund (the "Fund"), including the schedule of investments, as of
October 31, 2010, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. We were not engaged to perform an audit of the Fund's internal
control over financial reporting. Our audits included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Fund's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. Our procedures included
confirmation of securities owned as of October 31, 2010, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Equity Income Fund at October 31, 2010, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended, and the financial highlights for each of the
periods indicated therein, in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
December 28, 2010
44 Pioneer Equity Income Fund | Annual Report | 10/31/10
ADDITIONAL INFORMATION (unaudited)
For the year ended October 31, 2010, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth
Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate
up to the maximum amount of such dividends allowable under the Act, as taxed at
a maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2010 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 100.0%.
Pioneer Equity Income Fund | Annual Report | 10/31/10 45
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Bingham McCutchen LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30 is publicly available to
shareowners at www.pioneerinvestments.com. This information is also available
on the Securities and Exchange Commission's web site at http://www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their
principal occupations during at least the past five years. Trustees who are
interested persons of the Fund within the meaning of the 1940 Act are referred
to as Interested Trustees. Trustees who are not interested persons of the Fund
are referred to as Independent Trustees. Each of the Trustees, except Mr. West,
serves as a trustee of each of the 57 U.S. registered investment portfolios for
which Pioneer serves as investment adviser (the "Pioneer Funds"). Mr. West
serves as a trustee of 44 U.S. registered investment portfolios for which
Pioneer serves as investment adviser. The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
46 Pioneer Equity Income Fund | Annual Report | 10/31/10
Interested Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Other Directorships
Name, Age and Address with the Fund and Term of Office Principal Occupation Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (84)* Chairman of the Trustee since Non-Executive Chairman and a None
Board, Trustee 1990. Serves until director of Pioneer Investment
and President a successor trustee Management USA Inc. ("PIM-USA");
is elected or earlier Chairman and a director of
retirement or Pioneer; Chairman and Director
removal. of Pioneer Institutional Asset
Management, Inc. (since 2006);
Director of Pioneer Alternative
Investment Management Limited
(Dublin); President and a
director of Pioneer Alternative
Investment Management (Bermuda)
Limited and affiliated funds;
Deputy Chairman and a director
of Pioneer Global Asset
Management S.p.A. ("PGAM")
(until April 2010); Director of
PIOGLOBAL Real Estate Investment
Fund (Russia) (until June 2006);
Director of Nano-C, Inc. (since
2003); Director of Cole
Management Inc. (since 2004);
Director of Fiduciary
Counseling, Inc.; President and
Director of Pioneer Funds
Distributor, Inc ("PFD") (until
May 2006); President of all of
the Pioneer Funds; and Of
Counsel, Wilmer Cutler Pickering
Hale and Dorr LLP
- ------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (52)* Trustee and Trustee since Director, CEO and President of None
Executive Vice 2007. Serves until PIM-USA (since February 2007);
President a successor trustee Director and President of
is elected or earlier Pioneer and Pioneer
retirement or Institutional Asset Management,
removal. Inc. (since February 2007);
Executive Vice President of all
of the Pioneer Funds (since
March 2007); Director of PGAM
(2007 - 2010); Head of New
Europe Division, PGAM (2000 -
2005); and Head of New Markets
Division, PGAM (2005 - 2007)
- ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers or directors of the Fund's investment adviser and
certain of its affiliates.
Pioneer Equity Income Fund | Annual Report | 10/31/10 47
Independent Trustees
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Other Directorships
Name, Age and Address with the Fund and Term of Office Principal Occupation Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (66) Trustee Trustee since Interim Chief Executive Officer, Director of Enterprise
2005. Serves until Oxford Analytica, Inc. Community Investment,
a successor trustee (privately held research and Inc. (privately held
is elected or earlier consulting company) (2010 - affordable housing
retirement or present); Managing Partner, finance company) (1985
removal. Federal City Capital Advisors - present); Director of
(corporate advisory services Oxford Analytica, Inc.
company) (1997 - 2004 and 2008 - (2008 - present); and
present); Executive Vice Director of New York
President and Chief Financial Mortgage Trust
Officer, I-trax, Inc. (publicly (publicly traded
traded health care services mortgage REIT) (2004 -
company) (2004 - 2007); and 2009)
Executive Vice President and
Chief Financial Officer,
Pedestal Inc. (internet-based
mortgage trading company) (2000
- 2002)
- ------------------------------------------------------------------------------------------------------------------------------------
48 Pioneer Equity Income Fund | Annual Report | 10/31/10
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Other Directorships
Name, Age and Address with the Fund and Term of Office Principal Occupation Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (62) Trustee Trustee since President, Bush International, Director of Marriott
1997. Serves until LLC (international financial International, Inc.
a successor trustee advisory firm) (1991 - present); (2008 - present);
is elected or earlier Managing Director, Federal Director of Discover
retirement or Housing Finance Board (oversight Financial Services
removal. of Federal Home Loan Bank (credit card issuer and
system) (1989 - 1991); Vice electronic payment
President and Head of Interna- services) (2007 -
tional Finance, Federal National present); Former
Mortgage Association (1988 - Director of Briggs &
1989); U.S. Alternate Executive Stratton Co. (engine
Director, International Monetary manufacturer) (2004 -
Fund (1984 - 1988); Executive 2009); Director of UAL
Assistant to Deputy Secretary of Corporation (airline
the U.S. Treasury, U.S. Treasury holding company) (2006
Department (1982 - 1984); and - present); Director of
Vice President and Team Leader ManTech International
in Corporate Banking, Bankers Corporation (national
Trust Co. (1976 - 1982) security, defense, and
intelligence technology
firm) (2006 - present);
Member, Board of
Governors, Investment
Company Institute (2007
- present); Former
Director of Brady
Corporation (2000 -
2007); Former Director
of Mortgage Guaranty
Insurance Corporation
(1991 - 2006); Former
Director of Millennium
Chemicals, Inc.
(commodity chemicals)
(2002 - 2005); Former
Director, R.J. Reynolds
Tobacco Holdings, Inc.
(tobacco) (1999 -
2005); and Former
Director of Texaco,
Inc. (1997 - 2001)
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/10 49
Independent Trustees (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Other Directorships
Name, Age and Address with the Fund and Term of Office Principal Occupation Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (66) Trustee Trustee since William Joseph Maier Professor Trustee, Mellon
2008. Serves until of Political Economy, Harvard Institutional Funds
a successor trustee University (1972 - present) Investment Trust and
is elected or earlier Mellon Institutional
retirement or Funds Master Portfolio
removal. (oversaw 17 portfolios
in fund complex) (1989
- 2008)
- ------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (63) Trustee Trustee since Founding Director, Vice None
1990. Serves until President and Corporate
a successor trustee Secretary, The Winthrop Group,
is elected or earlier Inc. (consulting firm) (1982 -
retirement or present); Desautels Faculty of
removal. Management, McGill University
(1999 - present); and Manager of
Research Operations and
Organizational Learning, Xerox
PARC, Xerox's Advance Research
Center (1990 - 1994)
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (60) Trustee Trustee since Chairman and Chief Executive Director, Broadridge
2006. Serves until Officer, Quadriserv, Inc. Financial Solutions,
a successor trustee (technology products for Inc. (investor
is elected or earlier securities lending industry) communications and
retirement or (2008 - present); Private securities processing
removal. investor (2004 - 2008); and provider for financial
Senior Executive Vice President, services industry)
The Bank of New York (financial (2009 - present); and
and securities services) (1986 - Director, Quadriserv,
2004) Inc. (2005 - present)
- ------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (62) Trustee Trustee since President and Chief Executive Director of New America
1990. Serves until Officer, Newbury, Piret & High Income Fund, Inc.
a successor trustee Company, Inc. (investment (closed-end investment
is elected or earlier banking firm) (1981 - present) company) (2004 -
retirement or present); and Member,
removal. Board of Governors,
Investment Company
Institute (2000 - 2006)
- ------------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Equity Income Fund | Annual Report | 10/31/10
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Other Directorships
Name, Age and Address with the Fund and Term of Office Principal Occupation Held by this Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (82) Trustee Trustee since Senior Counsel, Sullivan & Director, The Swiss
1993. Serves until Cromwell LLP (law firm) (1998 - Helvetia Fund, Inc.
a successor trustee present); and Partner, Sullivan (closed-end investment
is elected or earlier & Cromwell LLP (prior to 1998) company); and Director,
retirement or AMVESCAP, PLC
removal. (investment manager)
(1997 - 2005)
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/10 51
Fund Officers
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name, Age and Address with the Fund and Term of Office During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (45) Secretary Since 2010. Serves Vice President and Associate None
at the discretion of General Counsel of Pioneer since
the Board. January 2008 and Secretary of
all of the Pioneer Funds since
June 2010; Assistant Secretary
of all of the Pioneer Funds from
September 2003 to May 2010; and
Vice President and Senior
Counsel of Pioneer from July
2002 to December 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (49) Assistant Since 2010. Serves Fund Governance Director of None
Secretary at the discretion of Pioneer since December 2006 and
the Board. Assistant Secretary of all the
Pioneer Funds since June 2010;
Manager-Fund Governance of
Pioneer from December 2003 to
November 2006; and Senior
Paralegal of Pioneer from
January 2000 to November 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (47) Assistant Since 2010. Serves Counsel of Pioneer since June None
Secretary at the discretion of 2007 and Assistant Secretary of
the Board. all the Pioneer Funds since June
2010; and Vice President and
Counsel at State Street Bank
from October 2004 to June 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (50) Treasurer Since 2008. Serves Vice President-Fund Accounting, None
at the discretion of Administration and
the Board. Controllership Services of
Pioneer; and Treasurer of all of
the Pionee Funds since March
2008; Deputy Treasurer of
Pioneer from March 2004 to
February 2008; Assistant
Treasurer of all of the Pioneer
Funds from March 2004 to
February 2008; and Treasurer and
Senior Vice President, CDC IXIS
Asset Management Services, from
2002 to 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (45) Assistant Since 2000. Serves Assistant Vice President -- Fund None
Treasurer at the discretion of Accounting, Administration and
the Board. Controllership Services of
Pioneer; and Assistant Treasurer
of all of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Equity Income Fund | Annual Report | 10/31/10
- ------------------------------------------------------------------------------------------------------------------------------------
Position Held Length of Service Principal Occupation Other Directorships
Name, Age and Address with the Fund and Term of Office During Past Five Years Held by this Officer
- ------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (52) Assistant Since 2002. Serves Fund Accounting Manager -- Fund None
Treasurer at the discretion of Accounting, Administration and
the Board. Controllership Services of
Pioneer; and Assistant Treasurer
of all of the Pioneer Funds
- ------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (30) Assistant Since 2009. Serves Fund Administration Manager -- None
Treasurer at the discretion of Fund Accounting, Administration
the Board. and Controllership Services
since November 2008; Assistant
Treasurer of all of the Pioneer
Funds since January 2009; and
Client Service Manager --
Institutional Investor Services
at State Street Bank from March
2003 to March 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (58) Chief Compliance Since 2010. Serves Chief Compliance Officer of None
Officer at the discretion of Pioneer and of all the Pioneer
the Board. Funds since March 2010; Director
of Adviser and Portfolio
Compliance at Pioneer since
October 2005; and Senior
Compliance Officer for Columbia
Management Advisers, Inc. from
October 2003 to October 2005
- ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/10 53
This page for your notes.
54 Pioneer Equity Income Fund | Annual Report | 10/31/10
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/10 55
This page for your notes.
56 Pioneer Equity Income Fund | Annual Report | 10/31/10
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/10 57
This page for your notes.
58 Pioneer Equity Income Fund | Annual Report | 10/31/10
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/10 59
This page for your notes.
60 Pioneer Equity Income Fund | Annual Report | 10/31/10
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
- --------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
- --------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete statement 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.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Fees for audit services provided to the Fund, including fees
associated with the filings to update its Form N-2 and issuance of comfort
letters, totaled approximately $36,386 in 2010 and $34,700 in 2009.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
There were no fees for audit-related or other services provided to the Fund
during the fiscal years ended October 31, 2010 and 2009.
(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.
Fees for tax compliance services, primarily for tax returns,
totaled approximately $8,290 and $8,290 for 2010 and 2009, respectively.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no fees for other services provided to the Fund during the fiscal
years ended October 31, 2010 and 2009.
(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.
Beginning with non-audit service contracts entered into on or
after May 6, 2003, the effective date of the new SEC pre-approval rules,
the Funds audit committee is required to pre-approve services to affiliates
defined by SEC rules to the extent that the services are determined to
have a direct impact on the operations or financial reporting of the Fund.
For the years ended October 31, 2010 and 2009, there were no services provided
to an affiliate that required the Funds audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $8,290 in 2010 and $8,290 in 2009.
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.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
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 registrants 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 I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 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 registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers 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 registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
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 registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
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 registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) 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 officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal 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.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Equity Income Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date December 30, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date December 30, 2010
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer
Date December 30, 2010
* Print the name and title of each signing officer under his or her signature.