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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, 2013 through April 30, 2014
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Equity
Income Fund
--------------------------------------------------------------------------------
Semiannual Report | April 30, 2014
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PEQIX
Class B PBEQX
Class C PCEQX
Class K PEQKX
Class R PQIRX
Class Y PYEQX
Class Z PEZQX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 18
Schedule of Investments 20
Financial Statements 27
Notes to Financial Statements 38
Approval of Investment Advisory Agreement 46
Trustees, Officers and Service Providers 50
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 1
President's Letter
Dear Shareowner,
A few months into 2014, we still expect U.S. economic growth for the year to be
in the 2.5% to 3% range, despite some weaker economic data releases during the
winter months driven in large part by harsh weather across much of the
continental U.S. While unemployment remains high, employment has been rising
steadily. Consumer incomes, savings, wealth, and debt-servicing capacity have
been solid buttresses for the recovering housing and auto industries. Industrial
activity is growing only moderately, but current corporate profits are generally
solid and balance sheets appear able to support needed capital spending and
dividend* payouts. A modestly improving European economy and continuing economic
improvement in Japan appear likely to result in improving global growth in 2014,
further supporting the U.S. economy. In addition, we feel that continuing slack
in labor markets and capacity utilization offer the potential for continuing
growth without bottlenecks and rising inflation.
After observing the strengthening economic trends, the Federal Reserve System
(the Fed) has begun scaling back its QE (quantitative easing) program, but
short-term interest rates remain near zero, and while Fed Chair Janet Yellen has
suggested that rates may be raised roughly six months after the QE program is
fully tapered, that would still place the potential rate hike sometime in 2015.
There are certainly risks and uncertainties still facing the global economy as
2014 moves along. The European economy, while improving, remains weak, the
Japanese economy faced a tax hike this spring, and a number of emerging market
countries are experiencing difficulties. There are also geopolitical worries
abroad, such as Russia's aggressive move against the Ukraine, and more potential
political fights at home, especially during a mid-term election year. While most
of the widely recognized risks we have outlined may already be "priced into" the
market, we believe investors should continue to expect market volatility.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification does not assure a profit
or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. 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, keeping in mind that there is no single best strategy that
works for every investor.
* Dividends are not guaranteed.
2 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
Pioneer's investment teams have, since 1928, sought out attractive opportunities
in equity and bond markets, using in-depth research to identify undervalued
individual securities, and using thoughtful risk management to construct
portfolios which seek to balance potential risks and rewards in an ever-changing
world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.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 shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. 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 | Semiannual Report | 4/30/14 3
Portfolio Management Discussion | 4/30/14
In the following interview, John Carey, Executive Vice President and Head of
U.S. Core Value at Pioneer Investments, discusses the investment environment
during the six-month period ended April 30, 2014, and Pioneer Equity Income
Fund's performance during the period. Mr. Carey is responsible for the
day-to-day management of Pioneer Equity Income Fund.
Q How would you describe the market for equities during the six-month period
ended April 30, 2014, particularly for the types of equities deemed
appropriate for the Fund?
A Putting the charts of the Standard & Poor's 500 (the S&P 500) and the
Fund's benchmark, Russell 1000 Value Index (the Russell Index) on top of
one another and holding them up to the light, one sees an almost identical
pattern develop during the six-month period. The indices continued their
very strong 2013 performance right down through the end of the calendar
year, but as soon as the new year of 2014 began, the indices stopped
advancing, treaded water for a couple of weeks, and then took a sharp
plunge into early February. After that, the stock market as measured by
those indices staged a strong recovery. By the end of the period the S&P
500 and the Russell Index both showed gains for the full six months. So,
while volatile, the market was positive during the period, and patient
investors were able to reap rewards. Value stocks, as measured by the
Fund's benchmark, the Russell Index (+9.61%), did on balance outperform
growth stocks, as measured by Russell 1000 Growth Index (+6.95%), but
bookend to bookend, the period was a good one for most stocks.
While general economic data and corporate earnings have continued to trace
an upward course, geopolitical events have caused the market some concerns.
The conflict in the Ukraine, tensions between China and its neighbors, and
continued chaos in several of the countries in the Middle East have all
caught the attention of investors and led them to worry about potential
disruptions to trade and to supply of certain raw materials. The prospect
for higher interest rates as we move through 2014 and into 2015 has
likewise remained an anxiety. And, while inflation numbers have stayed
modest, a rise in the price of several commodities as well as increasing
costs of services have led to a view that inflation could at some point
ramp up. The correction we saw in the stock market during the second half
of January 2014 resulted, we think, from those jitters, and also from
pessimism about first calendar quarter 2014 corporate earnings due to the
cold, snowy weather conditions in much of the U.S. over the winter months.
4 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
In the event, the "macroeconomic" risks stayed contained through the end of
six-month reporting period, and first-quarter earnings came in meaningfully
above expectations. So, after the sinking spell, it was off to the races
for stocks once again. However, we would keep a weather eye and stay
cognizant of risks.
Q How did the Fund perform in that environment during the six-month period
ended April 30, 2014?
A The Fund's Class A shares returned 7.20% at net asset value during the
six-month period ended April 30, 2014, while the Fund's benchmark, the
Russell Index, returned 9.61%. During the same period, the average return
of the 475 mutual funds in Lipper's Equity Income Funds category was 7.37%,
and the average return of the 1,273 mutual funds in Morningstar's Large
Value Funds category was 8.14%.
Q Could you please talk in more detail about the Fund's performance during
the six-month period ended April 30, 2014? Please discuss the
underperformance of the Fund relative to its benchmark, the Russell Index.
A While the Fund's absolute results were positive, they lagged relative to
the benchmark during the period. The reason for the Fund's underperformance
was stock selection, primarily in three sectors: industrials, energy, and
financials. Sector allocation decisions were neutral with respect to
performance results, with slight performance advantages deriving from the
portfolio's overweight in the strong-performing utilities sector and an
underweight in the below-average-performing financials sector; and slight
performance disadvantages attributable to the portfolio's overweight to the
below-average-performing consumer staples sector and an underweight in the
strong-performing energy sector.
With regard to stock selection, however, the Fund lost relative performance
due to two of the portfolio's larger overweight positions in the
industrials sector, Gorman-Rupp and G&K services; the Fund's very large
underweight to Exxon Mobil, a strong performer in the energy sector; and a
big overweight to insurer Chubb, in financials, as well as the portfolio's
overall underweight to the above-average-performing diversified financials
segment of the financials sector.
After reviewing the Fund's portfolio, we elected to retain the long-term
positions in the three underperformers noted, due to our estimates of
continued good business prospects for all of the companies over the longer
term. Exxon Mobil has been a harder decision, however, because we remain
uncertain that such a large company can find ways to grow production at
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 5
attractive rates. Nonetheless, as we see what we believe are compelling
buying opportunities for that and other stocks, we shall certainly consider
adding to the Fund's positions.
Q Could you please discuss the changes you made to the Fund's portfolio
during the six-month period ended April 30, 2014?
A We added eleven positions to the portfolio and eliminated eight during the
six-month period. Additions included: Glaxo Smith Kline and Roche in
pharmaceuticals; Randstad Holding, a temporary-help company with offices
worldwide; Wolseley, another worldwide company, in its case a leading
distributor of plumbing and heating supplies as well as building materials;
Cameco, an important uranium miner; Bank of America and JPMorgan Chase in
diversified financials; Prudential in life insurance; State Street, a
prominent provider of services to the financial industry and also a large
money manager; and Chesapeake Lodging Trust, a real estate investment trust
focused, as its name suggests, on hotels. Due to the modest near-term
valuation of the stock resulting from a prolonged period of
underperformance, we did also add shares of Exxon Mobil to the portfolio's
existing position, but at a level underweight to the Russell Index because
of our aforementioned uncertainty over the company's longer-term potential.
Sales from the portfolio during the six-month period included one big
winner, Molex, which was acquired for cash by another company at a premium
to the Fund's original cost. On the basis of our relative-value analysis,
we sold Chevron and Conoco (energy) to make room for our purchase of Exxon
Mobil. Other liquidations were of the Fund's positions in Rio Tinto, Maxim
Integrated Products, Medtronic, Seadrill, and Bank of Montreal, in each
case because we judged that other new or existing portfolio holdings
represented better long-term value.
Q The Fund typically places an emphasis on dividend-paying stocks. Would you
describe the environment for dividends as positive or negative during the
six-month period ended April 30, 2014?
A Companies in the U.S. and Europe, the Fund's two principal investment
"hunting grounds," continue to place significant emphasis on dividend*
payments and increases in the rate of dividend payments as ways to keep
current investors "on board" while attracting new investors. With the very
low short-term interest rates in both the U.S. and Europe, investors
desiring current income can potentially find worthwhile income-generating
opportunities in the stock market. Secondly, with the still moderate rate
of capital spending and high levels of profit generation, a lot of
companies are
* Dividends are not guaranteed.
6 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
finding themselves with cash that they feel they do not need for their
day-to-day operations, and they are both paying higher dividends and
repurchasing their own stock in order to reduce their cash balances. A note
of caution, though: with capacity utilization nudging higher and higher and
worker productivity no longer increasing, many companies may find that they
do, afterall, have to spend more money on new plant and equipment.
Strategic mergers and acquisitions in a growing, but historically
relatively slowly growing, economy may also make more and more sense to
companies. Hence, other uses for excess cash may lead to lower rates of
dividend growth as we continue moving through this business cycle.
Q With the Federal Reserve's (Fed's) tapering of its QE (quantitative easing)
program underway and the harsh winter of 2013-14 behind us, what is your
outlook on the U.S economy and the equity markets for the remainder of the
Fund's fiscal year ending October 31, 2014?
A Intermediate and longer-term interest rates had actually come down a bit by
the end of the Fund's April 30, 2014, semiannual reporting period. The bond
market reflected an apparent investor view that too much pessimism about
interest rates had come into that market after the Fed's initial talk of QE
tapering in May 2013. There has just not been the inflation, the borrowing
demand, or the rate of economic growth that would naturally push rates
higher, and so even with the Fed's tapering, investors have come back into
bonds. As we noted previously, we would be wary of complacency in regard to
inflation in particular, and we would not view the current, almost ideal
conditions for borrowers, almost no matter what their capacity for
repayment, as a permanent state of affairs. Time will tell. Otherwise, in
regard to stocks, we are also of the mind that investors have become
complacent about the ability of companies to maintain their current, high
profit margins, especially without an increase in worker productivity.
Our approach, as always, is to favor companies we believe have strong
balance sheets, astute and committed managements, industry-leading
positions, positive long-term earnings trends, and attractive valuations.
In this time of possibly significant geopolitical risks we are also
steering away from investing the Fund in companies that are unusually
exposed to one or another of the world's potential flash points. It is our
intention to keep the Fund's portfolio broadly diversified** and invested
in companies with experience in working through challenging times and
conditions.
Thank you very much for your support.
** Diversification does not assure a profit nor protect against loss in a
declining market.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 7
Please refer to the Schedule of Investments on pages 20-26 for a full listing of
Fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The portfolio invests in REIT securities, the value of which can fall for a
variety of reasons, such as declines in rental income, fluctuating interest
rates, poor property management, environmental liabilities, uninsured damage,
increased competition, or changes in real estate tax laws.
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.
These risks may increase share price volatility.
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 opinion as of the date of this report. These opinions should not
be relied upon for any other purposes.
8 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
Portfolio Summary | 4/30/14
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 86.2%
International Common Stocks 10.5%
Depositary Receipts for International Stocks 3.3%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 18.3%
Consumer Staples 14.7%
Health Care 13.4%
Materials 11.7%
Utilities 11.6%
Information Technology 9.1%
Industrials 7.4%
Consumer Discretionary 6.6%
Energy 5.3%
Telecommunication Services 1.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. The Valspar Corp. 3.42%
--------------------------------------------------------------------------------
2. The Gorman-Rupp Co. 2.91
--------------------------------------------------------------------------------
3. Cedar Fair LP 2.06
--------------------------------------------------------------------------------
4. US Bancorp/MN 2.03
--------------------------------------------------------------------------------
5. The Chubb Corp. 2.02
--------------------------------------------------------------------------------
6. Wells Fargo & Co. 2.02
--------------------------------------------------------------------------------
7. Becton Dickinson and Co. 1.80
--------------------------------------------------------------------------------
8. Mondelez International, Inc. 1.79
--------------------------------------------------------------------------------
9. The Hershey Co. 1.79
--------------------------------------------------------------------------------
10. Swedbank AB 1.74
--------------------------------------------------------------------------------
* 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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 9
Prices and Distributions | 4/30/14
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 4/30/14 10/31/13
--------------------------------------------------------------------------------
A $35.21 $34.35
--------------------------------------------------------------------------------
B $34.98 $34.13
--------------------------------------------------------------------------------
C $34.77 $33.94
--------------------------------------------------------------------------------
K $35.25 $34.38
--------------------------------------------------------------------------------
R $35.60 $34.71
--------------------------------------------------------------------------------
Y $35.49 $34.62
--------------------------------------------------------------------------------
Z $35.25 $34.38
--------------------------------------------------------------------------------
Distributions per Share: 11/1/13-4/30/14
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3834 $ -- $1.1477
--------------------------------------------------------------------------------
B $0.1965 $ -- $1.1477
--------------------------------------------------------------------------------
C $0.2679 $ -- $1.1477
--------------------------------------------------------------------------------
K $0.4516 $ -- $1.1477
--------------------------------------------------------------------------------
R $0.3241 $ -- $1.1477
--------------------------------------------------------------------------------
Y $0.4439 $ -- $1.1477
--------------------------------------------------------------------------------
Z $0.4242 $ -- $1.1477
--------------------------------------------------------------------------------
The Russell 1000 Value Index is an unmanaged index that measures the performance
of large-cap U.S. value stocks. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-17.
10 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
Performance Update | 4/30/14 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Equity Income Fund at public
offering price during the periods shown, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
Net Public Russell
Asset Offering 1000
Value Price Value
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 Years 8.12% 7.48% 7.95%
5 Years 18.15 16.77 19.52
1 Year 17.15 10.40 20.90
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.13%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity
Income Fund Russell 1000 Value Index
4/30/2004 $ 9,425 $ 10,000
4/30/2005 $ 10,813 $ 11,392
4/30/2006 $ 12,489 $ 13,478
4/30/2007 $ 15,143 $ 15,923
4/30/2008 $ 14,006 $ 14,495
4/30/2009 $ 8,935 $ 8,812
4/30/2010 $ 11,974 $ 12,537
4/30/2011 $ 14,592 $ 14,448
4/30/2012 $ 14,921 $ 14,596
4/30/2013 $ 17,563 $ 17,779
4/30/2014 $ 20,574 $ 21,494
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The 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 | Semiannual Report | 4/30/14 11
Performance Update | 4/30/14 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class B shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 7.08% 7.08% 7.95%
5 Years 16.92 16.92 19.52
1 Year 15.83 11.83 20.90
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.25%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity
Income Fund Russell 1000 Value Index
4/30/2004 $ 10,000 $ 10,000
4/30/2005 $ 11,369 $ 11,392
4/30/2006 $ 13,019 $ 13,478
4/30/2007 $ 15,649 $ 15,923
4/30/2008 $ 14,351 $ 14,495
4/30/2009 $ 9,070 $ 8,812
4/30/2010 $ 12,042 $ 12,537
4/30/2011 $ 14,530 $ 14,448
4/30/2012 $ 14,701 $ 14,596
4/30/2013 $ 17,111 $ 17,779
4/30/2014 $ 19,820 $ 21,494
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"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). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
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.
12 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
Performance Update | 4/30/14 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 7.29% 7.29% 7.95%
5 Years 17.28 17.28 19.52
1 Year 16.29 16.29 20.90
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.87%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity
Income Fund Russell 1000 Value Index
4/30/2004 $ 10,000 $ 10,000
4/30/2005 $ 11,379 $ 11,392
4/30/2006 $ 13,038 $ 13,478
4/30/2007 $ 15,688 $ 15,923
4/30/2008 $ 14,400 $ 14,495
4/30/2009 $ 9,112 $ 8,812
4/30/2010 $ 12,120 $ 12,537
4/30/2011 $ 14,659 $ 14,448
4/30/2012 $ 14,876 $ 14,596
4/30/2013 $ 17,383 $ 17,779
4/30/2014 $ 20,214 $ 21,494
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). "If Held" results represent the percent change in
net asset value per share. Returns would have been lower had sales charges been
reflected. All results are historical and assume the reinvestment of dividends
and capital gains. Other share classes are available for which performance and
expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The 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 | Semiannual Report | 4/30/14 13
Performance Update | 4/30/14 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class K shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 8.18% 8.18% 7.95%
5 Years 18.29 18.29 19.52
1 Year 17.65 17.65 20.90
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.69%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity
Income Fund Russell 1000 Value Index
4/30/2004 $ 10,000 $ 10,000
4/30/2005 $ 11,471 $ 11,392
4/30/2006 $ 13,249 $ 13,478
4/30/2007 $ 16,065 $ 15,923
4/30/2008 $ 14,858 $ 14,495
4/30/2009 $ 9,478 $ 8,812
4/30/2010 $ 12,703 $ 12,537
4/30/2011 $ 15,481 $ 14,448
4/30/2012 $ 15,830 $ 14,596
4/30/2013 $ 18,662 $ 17,779
4/30/2014 $ 21,956 $ 21,494
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance shown for Class K shares for the period prior to the
commencement of operations of Class K shares on December 20, 2012, is the net
asset value performance of the Fund's Class A shares, which has not been
restated to reflect any differences in expenses, including Rule 12b-1 fees
applicable to Class A shares. Since fees for Class A shares generally are higher
than those of Class K shares, the performance of Class K shares prior to their
inception on December 20, 2012, would have been higher than the performance
shown. For the period beginning December 20, 2012, the actual performance of
Class K shares is reflected. Class K 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.
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 | Semiannual Report | 4/30/14
Performance Update | 4/30/14 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 7.87% 7.87% 7.95%
5 Years 17.82 17.82 19.52
1 Year 16.78 16.78 20.90
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.44%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity
Income Fund Russell 1000 Value Index
4/30/2004 $ 10,000 $ 10,000
4/30/2005 $ 11,455 $ 11,392
4/30/2006 $ 13,213 $ 13,478
4/30/2007 $ 15,988 $ 15,923
4/30/2008 $ 14,762 $ 14,495
4/30/2009 $ 9,397 $ 8,812
4/30/2010 $ 12,570 $ 12,537
4/30/2011 $ 15,279 $ 14,448
4/30/2012 $ 15,574 $ 14,596
4/30/2013 $ 18,273 $ 17,779
4/30/2014 $ 21,338 $ 21,494
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class 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 | Semiannual Report | 4/30/14 15
Performance Update | 4/30/14 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 8.56% 8.56% 7.95%
5 Years 18.63 18.63 19.52
1 Year 17.53 17.53 20.90
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.79%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Equity
Income Fund Russell 1000 Value Index
4/30/2004 $ 5,000,000 $ 5,000,000
4/30/2005 $ 5,760,857 $ 5,696,246
4/30/2006 $ 6,680,806 $ 6,738,941
4/30/2007 $ 8,133,095 $ 7,961,740
4/30/2008 $ 7,548,765 $ 7,247,518
4/30/2009 $ 4,838,029 $ 4,405,939
4/30/2010 $ 6,516,190 $ 6,268,661
4/30/2011 $ 7,977,362 $ 7,223,811
4/30/2012 $ 8,188,393 $ 7,298,226
4/30/2013 $ 9,671,406 $ 8,889,512
4/30/2014 $11,366,413 $10,747,013
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares 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.
16 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
Performance Update | 4/30/14 Class Z Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class Z shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2014)
--------------------------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 8.36% 8.36% 7.95%
5 Years 18.53 18.53 19.52
1 Year 17.45 17.45 20.90
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2014)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.90%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity
Income Fund Russell 1000 Value Index
4/30/2004 $ 10,000 $ 10,000
4/30/2005 $ 11,471 $ 11,392
4/30/2006 $ 13,249 $ 13,478
4/30/2007 $ 16,065 $ 15,923
4/30/2008 $ 14,907 $ 14,495
4/30/2009 $ 9,543 $ 8,812
4/30/2010 $ 12,849 $ 12,537
4/30/2011 $ 15,716 $ 14,448
4/30/2012 $ 16,109 $ 14,596
4/30/2013 $ 19,007 $ 17,779
4/30/2014 $ 22,323 $ 21,494
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance shown for Class Z shares for periods prior to the inception of Class
Z shares on July 6, 2007, is the net asset value 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. For the period beginning July 6, 2007, the actual performance
of Class Z shares is reflected. 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 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 | Semiannual Report | 4/30/14 17
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 November 1, 2013 through April 30, 2014.
----------------------------------------------------------------------------------------------------
Share Class A B C K R Y Z
----------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 11/1/13
----------------------------------------------------------------------------------------------------
Ending Account $1,072.00 $1,066.40 $1,068.40 $1,074.40 $1,070.30 $1,073.60 $1,073.60
Value (after
expenses) on
4/30/14
----------------------------------------------------------------------------------------------------
Expenses Paid $ 5.55 $ 11.12 $ 9.23 $ 3.55 $ 7.24 $ 4.06 $ 4.32
During Period*
----------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.08%,
2.17%, 1.80%, 0.69% 1.41%, 0.79%, and 0.84%, for Class A, Class B, Class
C, Class K, Class R, Class Y and Class Z shares, respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the partial year period).
18 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
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 November 1, 2013 through April 30, 2014.
----------------------------------------------------------------------------------------------------
Share Class A B C K R Y Z
----------------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 11/1/13
----------------------------------------------------------------------------------------------------
Ending Account $1,019.44 $1,014.03 $1,015.87 $1,021.37 $1,017.80 $1,020.88 $1,020.63
Value (after
expenses) on
4/30/14
----------------------------------------------------------------------------------------------------
Expenses Paid $ 5.41 $ 10.84 $ 9.00 $ 3.46 $ 7.05 $ 3.96 $ 4.21
During Period*
----------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.08%,
2.17%, 1.80%, 0.69% 1.41%, 0.79%, and 0.84%, for Class A, Class B, Class
C, Class K, Class R, Class Y and Class Z shares, respectively, multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the partial year period).
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 19
Schedule of Investments | 4/30/14 (unaudited)
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
COMMON STOCKS -- 100.0%
ENERGY -- 5.3%
Integrated Oil & Gas -- 1.7%
116,040 Exxon Mobil Corp. $ 11,883,656
150,000 Occidental Petroleum Corp. 14,362,500
--------------
$ 26,246,156
-------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.5%
224,735 Marathon Oil Corp. $ 8,124,170
-------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 1.4%
224,000 Marathon Petroleum Corp.* $ 20,820,800
-------------------------------------------------------------------------------------
Oil & Gas Storage & Transportation -- 1.2%
483,800 Spectra Energy Corp. $ 19,211,698
-------------------------------------------------------------------------------------
Coal & Consumable Fuels -- 0.5%
350,000 Cameco Corp. $ 7,451,500
--------------
Total Energy $ 81,854,324
-------------------------------------------------------------------------------------
MATERIALS -- 11.7%
Commodity Chemicals -- 1.0%
166,925 LyondellBasell Industries NV $ 15,440,562
-------------------------------------------------------------------------------------
Diversified Chemicals -- 1.2%
105,500 EI du Pont de Nemours & Co. $ 7,102,260
230,000 The Dow Chemical Co. 11,477,000
--------------
$ 18,579,260
-------------------------------------------------------------------------------------
Specialty Chemicals -- 4.7%
5,000 Givaudan SA $ 7,881,130
200,454 Johnson Matthey Plc 11,079,323
716,600 The Valspar Corp. 52,340,464
--------------
$ 71,300,917
-------------------------------------------------------------------------------------
Paper Packaging -- 0.6%
227,500 Sonoco Products Co. $ 9,573,200
-------------------------------------------------------------------------------------
Diversified Metals & Mining -- 3.5%
280,000 BHP Billiton, Ltd. (A.D.R.) $ 19,751,200
255,100 Compass Minerals International, Inc. 23,367,160
300,000 Freeport-McMoRan Copper & Gold, Inc. 10,311,000
--------------
$ 53,429,360
-------------------------------------------------------------------------------------
Paper Products -- 0.7%
233,100 International Paper Co. $ 10,874,115
--------------
Total Materials $ 179,197,414
-------------------------------------------------------------------------------------
CAPITAL GOODS -- 6.0%
Industrial Conglomerates -- 1.7%
959,984 General Electric Co. $ 25,813,970
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
Industrial Machinery -- 3.6%
202,600 MSA Safety, Inc. $ 10,687,150
1,433,678 The Gorman-Rupp Co.+ 44,515,702
--------------
$ 55,202,852
-------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.7%
193,548 Wolseley Plc $ 11,181,351
--------------
Total Capital Goods $ 92,198,173
-------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 1.4%
Diversified Support Services -- 1.0%
300,000 G&K Services, Inc. $ 15,882,000
-------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.4%
100,000 Randstad Holding NV $ 5,813,062
--------------
Total Commercial Services & Supplies $ 21,695,062
-------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.9%
Automobile Manufacturers -- 0.9%
827,536 Ford Motor Co. $ 13,364,706
--------------
Total Automobiles & Components $ 13,364,706
-------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.7%
Household Appliances -- 0.7%
400,000 Electrolux AB $ 11,094,522
--------------
Total Consumer Durables & Apparel $ 11,094,522
-------------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.9%
Hotels, Resorts & Cruise Lines -- 0.9%
330,776 InterContinental Hotels Group Plc $ 11,272,173
69,224 InterContinental Hotels Group Plc (A.D.R.) 2,382,690
--------------
$ 13,654,863
-------------------------------------------------------------------------------------
Leisure Facilities -- 2.0%
607,087 Cedar Fair LP $ 31,495,674
--------------
Total Consumer Services $ 45,150,537
-------------------------------------------------------------------------------------
MEDIA -- 1.0%
Movies & Entertainment -- 0.6%
450,000 Regal Entertainment Group $ 8,460,000
-------------------------------------------------------------------------------------
Publishing -- 0.4%
114,100 John Wiley & Sons, Inc. $ 6,556,186
--------------
Total Media $ 15,016,186
-------------------------------------------------------------------------------------
RETAILING -- 1.1%
Distributors -- 1.1%
188,800 Genuine Parts Co. $ 16,448,256
--------------
Total Retailing $ 16,448,256
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 21
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 0.4%
Food Retail -- 0.4%
1,000,000 J Sainsbury Plc $ 5,668,966
--------------
Total Food & Staples Retailing $ 5,668,966
-------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 11.7%
Soft Drinks -- 1.6%
353,400 Dr. Pepper Snapple Group, Inc. $ 19,585,428
57,700 PepsiCo., Inc. 4,955,853
--------------
$ 24,541,281
-------------------------------------------------------------------------------------
Packaged Foods & Meats -- 10.1%
443,300 Campbell Soup Co. $ 20,165,717
170,000 General Mills, Inc. 9,013,400
72,108 John B Sanfilippo & Son, Inc. 1,662,089
301,010 Kellogg Co. 20,116,498
450,600 Kraft Foods Group, Inc.* 25,621,116
100,000 McCormick & Co., Inc. 7,120,000
769,000 Mondelez International, Inc. 27,414,850
284,082 The Hershey Co. 27,340,052
457,800 The Hillshire Brands Co. 16,320,570
--------------
$ 154,774,292
--------------
Total Food, Beverage & Tobacco $ 179,315,573
-------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 2.6%
Household Products -- 2.6%
128,500 Kimberly-Clark Corp. $ 14,424,125
192,210 The Clorox Co. 17,433,447
100,000 The Procter & Gamble Co. 8,255,000
--------------
$ 40,112,572
--------------
Total Household & Personal Products $ 40,112,572
-------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.5%
Health Care Equipment -- 3.7%
298,900 Abbott Laboratories Co. $ 11,579,386
244,100 Becton Dickinson and Co. 27,590,623
1,079,500 Smith & Nephew Plc 16,762,040
--------------
$ 55,932,049
-------------------------------------------------------------------------------------
Health Care Distributors -- 1.8%
149,887 Cardinal Health, Inc. $ 10,418,645
509,300 Owens & Minor, Inc. 17,081,922
--------------
$ 27,500,567
--------------
Total Health Care Equipment & Services $ 83,432,616
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 8.0%
Pharmaceuticals -- 8.0%
313,900 AbbVie, Inc. $ 16,347,912
170,000 AstraZeneca Plc (A.D.R.) 13,438,500
259,300 Eli Lilly & Co. 15,324,630
82,000 GlaxoSmithKline Plc (A.D.R.) 4,540,340
251,700 Johnson & Johnson, Inc. 25,494,693
353,405 Merck & Co., Inc. 20,695,397
75,000 Novartis AG (A.D.R.) 6,520,500
426,645 Pfizer, Inc. 13,345,456
50,000 Roche Holding AG (A.D.R.) 1,832,500
149,269 Zoetis, Inc. 4,516,880
--------------
$ 122,056,808
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 122,056,808
-------------------------------------------------------------------------------------
BANKS -- 11.1%
Diversified Banks -- 7.3%
267,000 Canadian Imperial Bank of Commerce, Ltd. $ 23,828,705
1,000,000 Swedbank AB 26,581,908
761,700 US Bancorp/MN 31,062,126
622,400 Wells Fargo & Co. 30,895,936
--------------
$ 112,368,675
-------------------------------------------------------------------------------------
Regional Banks -- 2.3%
427,900 BB&T Corp. $ 15,973,507
220,800 The PNC Financial Services Group, Inc. 18,556,032
--------------
$ 34,529,539
-------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.5%
1,028,800 New York Community Bancorp, Inc. $ 15,853,808
530,000 People's United Financial, Inc. 7,568,400
--------------
$ 23,422,208
--------------
Total Banks $ 170,320,422
-------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 2.5%
Other Diversified Financial Services -- 0.9%
361,564 Bank of America Corp. $ 5,474,079
155,168 JPMorgan Chase & Co. 8,686,305
--------------
$ 14,160,384
-------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 1.6%
277,100 Federated Investors, Inc. (Class B) $ 7,908,434
65,000 Northern Trust Corp. 3,916,250
185,754 State Street Corp. 11,992,278
--------------
$ 23,816,962
--------------
Total Diversified Financials $ 37,977,346
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 23
Schedule of Investments | 4/30/14 (unaudited) (continued)
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
INSURANCE -- 3.9%
Life & Health Insurance -- 0.5%
85,000 Prudential Financial, Inc. $ 6,857,800
-------------------------------------------------------------------------------------
Property & Casualty Insurance -- 3.4%
335,587 The Chubb Corp. $ 30,900,851
239,272 The Travelers Companies, Inc. 21,673,258
--------------
$ 52,574,109
--------------
Total Insurance $ 59,431,909
-------------------------------------------------------------------------------------
REAL ESTATE -- 0.8%
Office REIT -- 0.3%
68,671 Alexandria Real Estate Equities, Inc. $ 5,069,293
-------------------------------------------------------------------------------------
Specialized REIT -- 0.5%
293,416 Chesapeake Lodging Trust $ 7,919,298
--------------
Total Real Estate $ 12,988,591
-------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.5%
IT Consulting & Other Services -- 0.4%
97,737 Leidos Holdings, Inc. $ 3,639,726
71,428 Science Applications International Corp.* 2,785,692
--------------
$ 6,425,418
-------------------------------------------------------------------------------------
Systems Software -- 1.1%
392,095 Microsoft Corp. $ 15,840,638
--------------
Total Software & Services $ 22,266,056
-------------------------------------------------------------------------------------
TECHNOLOGY HARDWARE & EQUIPMENT -- 1.2%
Computer Hardware -- 0.6%
8,100 Apple, Inc. $ 4,779,729
125,000 Hewlett-Packard Co. 4,132,500
--------------
$ 8,912,229
-------------------------------------------------------------------------------------
Technology Distributors -- 0.6%
96,000 Anixter International, Inc.* $ 9,406,080
--------------
Total Technology Hardware & Equipment $ 18,318,309
-------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 6.5%
Semiconductor Equipment -- 0.2%
86,033 Cabot Microelectronics Corp.* $ 3,731,251
-------------------------------------------------------------------------------------
Semiconductors -- 6.3%
294,684 Analog Devices, Inc. $ 15,114,342
567,769 Intel Corp. 15,153,755
303,300 Linear Technology Corp. 13,496,850
550,500 Microchip Technology, Inc. 26,170,770
500,000 NVIDIA Corp. 9,235,000
354,200 Xilinx, Inc. 16,714,698
--------------
$ 95,885,415
--------------
Total Semiconductors & Semiconductor Equipment $ 99,616,666
-------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
-------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.6%
Integrated Telecommunication Services -- 1.6%
175,000 AT&T, Inc. $ 6,247,500
2,400,000 Singapore Telecommunications, Ltd. 7,329,851
229,091 Verizon Communications, Inc. 10,705,422
--------------
$ 24,282,773
--------------
Total Telecommunication Services $ 24,282,773
-------------------------------------------------------------------------------------
UTILITIES -- 11.7%
Electric Utilities -- 4.4%
287,150 American Electric Power Co., Inc. $ 15,451,542
182,600 Duke Energy Corp.* 13,601,874
119,900 NextEra Energy, Inc.* 11,972,015
200,000 Northeast Utilities, Inc. 9,452,000
200,000 The Southern Co. 9,166,000
200,000 Westar Energy, Inc. 7,176,000
--------------
$ 66,819,431
-------------------------------------------------------------------------------------
Gas Utilities -- 3.5%
370,500 AGL Resources, Inc. $ 20,007,000
237,700 National Fuel Gas Co. 17,504,228
655,000 Questar Corp. 15,903,400
--------------
$ 53,414,628
-------------------------------------------------------------------------------------
Multi-Utilities -- 3.2%
402,569 Alliant Energy Corp. $ 23,542,235
498,500 Ameren Corp. 20,593,035
90,969 Consolidated Edison, Inc. 5,278,931
--------------
$ 49,414,201
-------------------------------------------------------------------------------------
Water Utilities -- 0.6%
200,000 American Water Works Co., Inc. $ 9,106,000
--------------
Total Utilities $ 178,754,260
-------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,056,535,808) $1,530,562,047
-------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 100.0%
(Cost $1,056,535,808) (a) $1,530,562,047
-------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.0% $ 702,450
-------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,531,264,497
=====================================================================================
* Non-income producing security.
(A.D.R.) American Depositary Receipts.
REIT Real Estate Investment Trust.
+ Investment held by the Fund representing 5% or more of the
outstanding voting stock of such company.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 25
Schedule of Investments | 4/30/14 (unaudited) (continued)
(a) At April 30, 2014, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $1,042,290,281 was
as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 492,721,683
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (4,449,917)
-------------
Net unrealized appreciation $ 488,271,766
=============
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2014 aggregated $158,162,700 and $179,210,710,
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.
Level 1 -- quoted prices in active markets for identical securities.
Level 2 -- other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services or broker-dealers)
as Level 3. See Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of April 30, 2014, in valuing
the Fund's investments:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $1,530,562,047 $ -- $ -- $1,530,562,047
--------------------------------------------------------------------------------
Total $1,530,562,047 $ -- $ -- $1,530,562,047
================================================================================
During the six months ended April 30, 2014, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
Statement of Assets and Liabilities | 4/30/14 (unaudited)
ASSETS:
Investment in securities of unaffiliated issuers, at value
(cost $1,049,209,466) $1,486,046,345
Investment in securities of affiliated issuers, at value (cost $7,326,342) 44,515,702
----------------------------------------------------------------------------------------------------
Total investments in securities, at value (cost $1,056,535,808) $1,530,562,047
Foreign currencies, at value (cost $454,998) 471,685
Receivables --
Fund shares sold 1,761,941
Dividends 2,825,755
Other assets 80,286
----------------------------------------------------------------------------------------------------
Total assets $1,535,701,714
====================================================================================================
LIABILITIES:
Payables --
Fund shares repurchased $ 1,857,988
Trustee fee 3,665
Due to custodian 2,073,765
Due to affiliates 478,470
Accrued expenses 23,329
----------------------------------------------------------------------------------------------------
Total liabilities $ 4,437,217
====================================================================================================
NET ASSETS:
Paid-in capital $1,001,738,881
Undistributed net investment income 22,737,807
Accumulated net realized gain on investments 32,747,292
Net unrealized appreciation on investments 474,026,239
Net unrealized appreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies 14,278
----------------------------------------------------------------------------------------------------
Total net assets $1,531,264,497
====================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $819,847,562/23,284,624 shares) $ 35.21
Class B (based on $11,964,859/342,046 shares) $ 34.98
Class C (based on $112,653,149/3,239,963 shares) $ 34.77
Class K (based on $1,938,073/54,988 shares) $ 35.25
Class R (based on $82,673,148/2,322,472 shares) $ 35.60
Class Y (based on $500,015,118/14,090,176 shares) $ 35.49
Class Z (based on $2,172,588/61,642 shares) $ 35.25
MAXIMUM OFFERING PRICE:
Class A ($35.21 (divided by) 94.25%) $ 37.36
====================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 27
Statement of Operations (unaudited)
For the Six Months Ended 4/30/14
INVESTMENT INCOME:
Dividends (including income from affiliated
issuers of $258,062 and net of foreign taxes
withheld of $152,201) $ 30,700,386
Interest 359
----------------------------------------------------------------------------------------------------
Total investment income $ 30,700,745
----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 4,464,281
Transfer agent fees and expenses
Class A 247,679
Class B 25,649
Class C 24,200
Class K 93
Class R 2,113
Class Y 1,812
Class Z 562
Distribution fees
Class A 995,865
Class B 63,430
Class C 537,843
Class R 210,901
Shareholder communications expense 918,578
Administrative reimbursement 255,376
Custodian fees 13,060
Registration fees 58,869
Professional fees 47,512
Printing expense 10,473
Fees and expenses of nonaffiliated Trustees 29,339
Miscellaneous 19,928
----------------------------------------------------------------------------------------------------
Total expenses $ 7,927,563
----------------------------------------------------------------------------------------------------
Net investment income $ 22,773,182
====================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 32,971,665
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (57,338) $ 32,914,327
----------------------------------------------------------------------------------------------------
Change in net unrealized appreciation on:
Investments $ 49,180,204
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 3,450 $ 49,183,654
----------------------------------------------------------------------------------------------------
Net gain on investments and foreign currency transactions $ 82,097,981
----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $104,871,163
====================================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
Statements of Changes in Net Assets
--------------------------------------------------------------------------------------------------
Six Months
Ended
4/30/14 Year Ended
(unaudited) 10/31/13
--------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 22,773,182 $ 31,994,737
Net realized gain on investments and foreign
currency transactions 32,914,327 104,250,839
Change in net unrealized appreciation (depreciation) on
investments and foreign currency transactions 49,183,654 177,491,319
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 104,871,163 $ 313,736,895
--------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.38 and $0.89 per share, respectively) $ (9,031,067) $ (21,599,528)
Class B ($0.20 and $0.53 per share, respectively) (73,953) (276,158)
Class C ($0.27 and $0.67 per share, respectively) (864,503) (1,907,977)
Class K ($0.45 and $0.58 per share, respectively) (15,492) (604)
Class R ($0.32 and $0.79 per share, respectively) (800,971) (2,064,799)
Class Y ($0.44 and $1.00 per share, respectively) (6,294,703) (12,526,595)
Class Z ($0.42 and $0.95 per share, respectively) (32,639) (75,793)
Net realized gains:
Class A ($1.15 and $0.00 per share, respectively) $ (26,460,393) $ --
Class B ($1.15 and $0.00 per share, respectively) (449,286) --
Class C ($1.15 and $0.00 per share, respectively) (3,553,217) --
Class K ($1.15 and $0.00 per share, respectively) (3,933) --
Class R ($1.15 and $0.00 per share, respectively) (2,944,529) --
Class Y ($1.15 and $0.00 per share, respectively) (15,774,041) --
Class Z ($1.15 and $0.00 per share, respectively) (94,442) --
--------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (66,393,169) $ (38,451,454)
--------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 167,651,003 $ 364,605,306
Reinvestment of distributions 58,968,050 33,710,949
Cost of shares repurchased (216,138,308) (368,582,013)
--------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 10,480,745 $ 29,734,242
--------------------------------------------------------------------------------------------------
Net increase in net assets $ 48,958,739 $ 305,019,683
NET ASSETS:
Beginning of period 1,482,305,758 1,177,286,075
--------------------------------------------------------------------------------------------------
End of period $1,531,264,497 $1,482,305,758
--------------------------------------------------------------------------------------------------
Undistributed net investment income $ 22,737,807 $ 17,077,953
==================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 29
Statements of Changes in Net Assets (continued)
------------------------------------------------------------------------------------------------
'14 Shares '14 Amount
(unaudited) (unaudited) '13 Shares '13 Amount
------------------------------------------------------------------------------------------------
Class A
Shares sold 1,944,971 $ 66,505,989 5,532,427 $ 169,199,449
Reinvestment of distributions 1,014,032 34,152,410 686,669 20,628,412
Less shares repurchased (3,725,557) (127,331,441) (6,463,743) (198,413,459)
------------------------------------------------------------------------------------------------
Net decrease (766,554) $ (26,673,042) (244,647) $ (8,585,598)
================================================================================================
Class B
Shares sold or exchanged 8,900 $ 299,608 29,611 $ 899,348
Reinvestment of distributions 14,770 493,187 8,981 261,420
Less shares repurchased (85,359) (2,888,517) (215,827) (6,589,536)
------------------------------------------------------------------------------------------------
Net decrease (61,689) $ (2,095,722) (177,235) $ (5,428,768)
================================================================================================
Class C
Shares sold 326,759 $ 11,001,132 888,119 $ 27,428,798
Reinvestment of distributions 93,141 3,095,156 45,013 1,329,232
Less shares repurchased (270,410) (9,120,198) (636,045) (19,429,355)
------------------------------------------------------------------------------------------------
Net increase 149,490 $ 4,976,090 297,087 $ 9,328,675
================================================================================================
Class K*
Shares sold 55,459 $ 1,893,731 3,409 $ 110,538
Reinvestment of distributions 558 19,020 12 399
Less shares repurchased (4,436) (154,790) (14) (440)
------------------------------------------------------------------------------------------------
Net increase 51,581 $ 1,757,961 3,407 $ 110,497
================================================================================================
Class R
Shares sold 213,812 $ 7,399,997 461,884 $ 14,577,627
Reinvestment of distributions 108,241 3,682,413 67,038 2,025,420
Less shares repurchased (477,216) (16,370,594) (868,818) (26,998,223)
------------------------------------------------------------------------------------------------
Net decrease (155,163) $ (5,288,184) (339,896) $ (10,395,176)
================================================================================================
Class Y
Shares sold 2,332,021 $ 80,407,023 4,883,671 $ 150,372,803
Reinvestment of distributions 512,206 17,399,651 308,981 9,390,594
Less shares repurchased (1,711,123) (59,134,063) (3,686,500) (114,975,277)
------------------------------------------------------------------------------------------------
Net increase 1,133,104 $ 38,672,611 1,506,152 $ 44,788,120
================================================================================================
Class Z
Shares sold 4,219 $ 143,523 63,513 $ 2,016,743
Reinvestment of distributions 3,743 126,213 2,517 75,472
Less shares repurchased (33,153) (1,138,705) (70,444) (2,175,723)
------------------------------------------------------------------------------------------------
Net increase (decrease) (25,191) $ (868,969) (4,414) $ (83,508)
================================================================================================
* Class K shares were first publicly offered on December 20, 2012.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
Financial Highlights
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/14 Ended Ended Ended Ended Ended
(unaudited) 10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
--------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 34.35 $ 27.96 $ 26.19 $ 23.92 $ 20.24 $ 21.28
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.53 $ 0.75 $ 1.05 $ 0.48 $ 0.46 $ 0.58
Net realized and unrealized gain (loss) on investments 1.86 6.53 1.56 2.20 3.63 (1.12)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.39 $ 7.28 $ 2.61 $ 2.68 $ 4.09 $ (0.54)
--------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.38) $ (0.89) $ (0.84) $ (0.41) $ (0.40) $ (0.50)
Net realized gains (1.15) -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.53) $ (0.89) $ (0.84) $ (0.41) $ (0.40) $ (0.50)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.86 $ 6.39 $ 1.77 $ 2.27 $ 3.69 $ (1.04)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 35.21 $ 34.35 $ 27.96 $ 26.19 $ 23.92 $ 20.24
================================================================================================================================
Total return* 7.20% 26.52% 10.09% 11.26% 20.36% (2.30)%
Ratio of net expenses to average net assets 1.08%** 1.10% 1.14% 1.15% 1.19% 1.23%
Ratio of net investment income to average net assets 3.03%** 2.39% 3.86% 1.78% 1.93% 2.98%
Portfolio turnover rate 21%** 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $819,848 $826,039 $679,254 $630,087 $606,693 $566,439
Ratios with reduction for fees paid indirectly:
Total expenses 1.08%** 1.10% 1.14% 1.15% 1.19% 1.23%
Net investment income 3.03%** 2.39% 3.86% 1.78% 1.93% 2.98%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 31
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/14 Ended Ended Ended Ended Ended
(unaudited) 10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
--------------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $ 34.13 $ 27.77 $ 26.02 $ 23.77 $ 20.10 $ 21.14
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.41 $ 0.58 $ 0.97 $ 0.43 $ 0.38 $ 0.51
Net realized and unrealized gain (loss) on investments 1.79 6.31 1.31 1.97 3.47 (1.23)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.20 $ 6.89 $ 2.28 $ 2.40 $ 3.85 $ (0.72)
--------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.20) $ (0.53) $ (0.53) $ (0.15) $ (0.18) $ (0.32)
Net realized gains (1.15) -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.35) $ (0.53) $ (0.53) $ (0.15) $ (0.18) $ (0.32)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.85 $ 6.36 $ 1.75 $ 2.25 $ 3.67 $ (1.04)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.98 $ 34.13 $ 27.77 $ 26.02 $ 23.77 $ 20.10
================================================================================================================================
Total return* 6.64% 25.14% 8.83% 10.12% 19.23% (3.26)%
Ratio of net expenses to average net assets 2.17%** 2.22% 2.24% 2.17% 2.17% 2.20%
Ratio of net investment income to average net assets 1.95%** 1.33% 2.81% 0.78% 0.98% 2.08%
Portfolio turnover rate 21%** 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $11,965 $13,779 $16,136 $21,744 $32,604 $42,950
Ratios with reduction for fees paid indirectly:
Total expenses 2.17%** 2.22% 2.24% 2.17% 2.17% 2.20%
Net investment income 1.95%** 1.33% 2.81% 0.78% 0.98% 2.08%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/14 Ended Ended Ended Ended Ended
(unaudited) 10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
--------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 33.94 $ 27.64 $ 25.91 $ 23.66 $ 20.01 $ 21.04
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.37 $ 0.47 $ 0.84 $ 0.27 $ 0.32 $ 0.47
Net realized and unrealized gain (loss) on investments 1.88 6.50 1.54 2.20 3.55 (1.16)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.25 $ 6.97 $ 2.38 $ 2.47 $ 3.87 $ (0.69)
--------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.27) $ (0.67) $ (0.65) $ (0.22) $ (0.22) $ (0.34)
Net realized gains (1.15) -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.42) $ (0.67) $ (0.65) $ (0.22) $ (0.22) $ (0.34)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.83 $ 6.30 $ 1.73 $ 2.25 $ 3.65 $ (1.03)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.77 $ 33.94 $ 27.64 $ 25.91 $ 23.66 $ 20.01
================================================================================================================================
Total return* 6.84% 25.61% 9.26% 10.45% 19.46% (3.11)%
Ratio of net expenses to average net assets 1.80%** 1.84% 1.86% 1.91% 1.96% 2.04%
Ratio of net investment income to average net assets 2.33%** 1.62% 3.13% 1.02% 1.17% 2.21%
Portfolio turnover rate 21%** 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $112,653 $104,890 $77,219 $70,683 $66,536 $68,719
Ratios with reduction for fees paid indirectly:
Total expenses 1.80%** 1.84% 1.86% 1.91% 1.96% 2.04%
Net investment income 2.33%** 1.62% 3.13% 1.02% 1.17% 2.21%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 33
Financial Highlights (continued)
-------------------------------------------------------------------------------------
Six Months
Ended 4/30/14 12/20/12 (a)
(unaudited) to 10/31/13
-------------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 34.38 $ 28.30
-------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.14 $ 0.03
Net realized and unrealized gain (loss) on investments 2.33 6.63
-------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.47 $ 6.66
-------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.45) $ (0.58)
Net realized gains (1.15) --
-------------------------------------------------------------------------------------
Total distributions $ (1.60) $ (0.58)
-------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.87 $ 6.08
-------------------------------------------------------------------------------------
Net asset value, end of period $ 35.25 $ 34.38
=====================================================================================
Total return* 7.44% 23.72%(b)
Ratio of net expenses to average net assets 0.69%** 0.66%**
Ratio of net investment income to average net assets 3.58%** 1.84%**
Portfolio turnover rate 21%** 26%
Net assets, end of period (in thousands) $ 1,938 $ 117
Ratios with reduction for fees paid indirectly:
Total expenses 0.69%** 0.66%**
Net investment income 3.58%** 1.84%**
=====================================================================================
(a) Class K shares were first publicly offered on December 20, 2012.
(b) Not Annualized.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
34 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/14 Ended Ended Ended Ended Ended
(unaudited) 10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
--------------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 34.71 $ 28.24 $ 26.45 $ 24.14 $ 20.43 $ 21.45
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.50 $ 0.72 $ 1.03 $ 0.36 $ 0.44 $ 0.49
Net realized and unrealized gain (loss) on investments 1.86 6.54 1.52 2.28 3.62 (1.07)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.36 $ 7.26 $ 2.55 $ 2.64 $ 4.07 $ (0.58)
--------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.32) $ (0.79) $ (0.76) $ (0.33) $ (0.35) $ (0.44)
Net realized gains (1.15) -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.47) $ (0.79) $ (0.76) $ (0.33) $ (0.35) $ (0.44)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.89 $ 6.47 $ 1.79 $ 2.31 $ 3.72 $ (1.02)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 35.60 $ 34.71 $ 28.24 $ 26.45 $ 24.14 $ 20.43
================================================================================================================================
Total return* 7.03% 26.13% 9.76% 10.96% 20.03% (2.50)%
Ratio of net expenses to average net assets 1.41%** 1.41% 1.41% 1.48% 1.44% 1.44%
Ratio of net investment income to average net assets 2.72%** 2.09% 3.62% 1.46% 1.68% 2.71%
Portfolio turnover rate 21%** 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $82,673 $85,986 $79,557 $78,159 $67,450 $68,904
Ratios with reduction for fees paid indirectly:
Total expenses 1.41%** 1.41% 1.41% 1.48% 1.44% 1.44%
Net investment income 2.72%** 2.09% 3.62% 1.46% 1.68% 2.71%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 35
Financial Highlights (continued)
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/14 Ended Ended Ended Ended Ended
(unaudited) 10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
--------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 34.62 $ 28.17 $ 26.38 $ 24.09 $ 20.37 $ 21.41
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.54 $ 0.78 $ 1.05 $ 0.44 $ 0.49 $ 0.42
Net realized and unrealized gain (loss) on investments 1.92 6.67 1.67 2.37 3.74 (0.87)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.46 $ 7.45 $ 2.72 $ 2.81 $ 4.22 $ (0.45)
--------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.44) $ (1.00) $ (0.93) $ (0.52) $ (0.51) $ (0.59)
Net realized gain (1.15) -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.59) $ (1.00) $ (0.93) $ (0.52) $ (0.51) $ (0.59)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.87 $ 6.45 $ 1.79 $ 2.29 $ 3.71 $ (1.04)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 35.49 $ 34.62 $ 28.17 $ 26.38 $ 24.09 $ 20.37
================================================================================================================================
Total return* 7.36% 26.98% 10.47% 11.73% 20.98% (1.85)%
Ratio of net expenses to average net assets 0.79%** 0.76% 0.77% 0.75% 0.72% 0.75%
Ratio of net investment income to average net assets 3.35%** 2.68% 4.20% 2.16% 2.38% 3.10%
Portfolio turnover rate 21%** 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $500,015 $448,509 $322,567 $238,647 $148,995 $110,148
Ratios with reduction for fees paid indirectly:
Total expenses 0.79%** 0.76% 0.77% 0.75% 0.72% 0.75%
Net investment income 3.35%** 2.68% 4.20% 2.16% 2.38% 3.10%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
36 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
--------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/14 Ended Ended Ended Ended Ended
(unaudited) 10/31/13 10/31/12 10/31/11 10/31/10 10/31/09
--------------------------------------------------------------------------------------------------------------------------------
Class Z
Net asset value, beginning of period $ 34.38 $ 27.98 $ 26.21 $ 23.95 $ 20.27 $ 21.30
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations:
Net investment income $ 0.78 $ 0.84 $ 0.93 $ 0.30 $ 0.38 $ 0.45
Net realized and unrealized gain (loss) on investments 1.66 6.51 1.74 2.48 3.80 (0.91)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.44 $ 7.35 $ 2.67 $ 2.78 $ 4.18 $ (0.46)
--------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.42) $ (0.95) $ (0.90) $ (0.52) $ (0.50) $ (0.57)
Net realized gains (1.15) -- -- -- -- --
--------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (1.57) $ (0.95) $ (0.90) $ (0.52) $ (0.50) $ (0.57)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 0.87 $ 6.40 $ 1.77 $ 2.26 $ 3.68 $ (1.03)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 35.25 $ 34.38 $ 27.98 $ 26.21 $ 23.95 $ 20.27
================================================================================================================================
Total return* 7.36% 26.80% 10.31% 11.67% 20.84% (1.88)%
Ratio of net expenses to average net assets 0.84%** 0.87% 0.87% 0.85% 0.81% 0.79%
Ratio of net investment income to average net assets 3.34%** 2.58% 3.98% 2.05% 2.25% 3.24%
Portfolio turnover rate 21%** 26% 49% 24% 15% 28%
Net assets, end of period (in thousands) $ 2,173 $ 2,985 $ 2,553 $ 1,653 $ 505 $ 233
Ratios with reduction for fees paid indirectly:
Total expenses 0.84%** 0.87% 0.87% 0.85% 0.81% 0.95%
Net investment income 3.34%** 2.58% 3.98% 2.05% 2.25% 3.08%
================================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 37
Notes to Financial Statements | 4/30/14 (unaudited)
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 seven classes of shares designated as Class A, Class B, Class C,
Class K, Class R, Class Y and Class Z shares. Class K shares were first publicly
offered on December 20, 2012. 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 K, Class Y or Class Z shares. Class B shares convert
to Class A shares approximately eight years after the date of purchase.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and 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:
38 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
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. Short-term fixed income
securities with remaining maturities of sixty days or less generally are
valued at amortized cost. Shares of money market mutual funds are valued at
such funds' net asset value.
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.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by a fair valuation
team comprised of certain personnel of Pioneer Investment Management, Inc.,
(PIM), the Fund's investment adviser, pursuant to procedures adopted by the
Fund's Board of Trustees. PIM's fair valuation team uses fair value methods
approved by the Valuation Committee of the Board of Trustees. PIM's fair
valuation team is responsible for monitoring developments that may impact
fair valued securities and for discussing and assessing fair values on an
ongoing basis, and at least quarterly, with the Valuation Committee of the
Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At April 30, 2014, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services or broker-dealers).
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 39
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
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
shareowners. Therefore, no federal income tax provision is required. As of
April 30, 2014, the Fund did not accrue any interest or penalties with
respect to unrecognized tax positions, which, if applicable, would be
recorded as an income tax expense in the Statement of Operations. Tax
returns filed within the prior three years are subject to examination by
Federal and State tax authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the year ended October 31, 2013 was as follows:
---------------------------------------------------------------------------
2013
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $38,451,454
---------------------------------------------------------------------------
Total $38,451,454
===========================================================================
40 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2013:
---------------------------------------------------------------------------
2013
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 2,669,324
Undistributed long term capital gain 49,276,208
Net unrealized appreciation 439,102,090
---------------------------------------------------------------------------
Total $491,047,622
===========================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales and tax basis
adjustments on Real Estate Investment Trust (REIT) holdings and
partnerships.
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 $47,069 in underwriting commissions on the sale of
Class A shares during the six months ended April 30, 2014.
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 K, Class Y and Class Z shares do not pay
distribution fees. All expenses and fees paid to the transfer agent,
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), for its
services are allocated among the classes of shares based on the number of
accounts in each class and the ratable allocation of related out-of-pocket
expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class B, Class C, Class K, Class R,
Class Y and Class Z shares can reflect different transfer agent and
distribution expense rates.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 41
E. Risks
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.
F. Forward Foreign Currency Contracts
The Fund may enter into forward foreign currency contracts (contracts) for
the purchase or sale of a specific foreign currency at a fixed price on a
future date. All contracts are marked to market daily at the applicable
exchange rates, and any resulting unrealized appreciation or depreciation
is recorded in the Fund's financial statements. The Fund records realized
gains and losses at the time a contracts is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 8).
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The
collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian or a subcustodian of the
Fund. PIM is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
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% on assets over
$10 billion. For the six months ended April 30, 2014, the effective management
fee (excluding waivers and/or assumption of expenses) was equivalent to 0.60% of
the Fund's average daily net assets.
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
$64,319, in management fees, administrative costs and certain other
reimbursements payable to PIM at April 30, 2014.
42 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts.
For the six months ended April 30, 2014, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $434,676
Class B 7,060
Class C 50,653
Class K 7
Class R 104,162
Class Y 320,142
Class Z 1,878
--------------------------------------------------------------------------------
Total $918,578
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $392,736 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at April 30, 2014.
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 $24,415 in distribution fees payable to PFD at April 30, 2014.
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
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 43
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 addition, redemptions of each class of shares (except Class K, 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 12 months of purchase. 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 12 months of purchase are subject
to a CDSC of 1.00%, based on the lower of cost or market value of shares being
redeemed. Shares purchased as part of an exchange remain subject to any CDSC
that applied to the original purchase of those shares. There is no CDSC for
Class K, Class R, Class Y or Class Z shares. Proceeds from the CDSCs are paid to
PFD. For the six months ended April 30, 2014, CDSCs in the amount of $6,653 were
paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the six months ended April 30, 2014, 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 committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility until February 12, 2014 was in the amount of $215 million. As of
February 12, 2014 the facility is in the amount of $240 million. Under such
facility, depending on the type of loan, interest on borrowings is payable at
the London Interbank Offered Rate (LIBOR) plus 0.90% (0.85% as of February 12,
2014) on an annualized basis, or the Alternate Base Rate, which is the greater
of (a) the facility's administrative agent's daily announced prime rate on the
borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing date and (c)
2% plus the overnight Euro dollar rate on the borrowing date. The Funds pay an
annual commitment fee to participate in the credit facility. The commitment fee
is allocated among participating Funds based on an allocation schedule set forth
in the credit agreement. For the six months ended April 30, 2014, the Fund had
no borrowings under the credit facility.
44 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
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 the six months ended April 30, 2014:
--------------------------------------------------------------------------------------------
Beginning Corporate
Balance Purchases Sales Actions Ending Dividend
Affiliates (shares) (shares) (shares) (shares) (shares) Income Value
--------------------------------------------------------------------------------------------
The Gorman-
Rupp Co. 1,146,943 -- -- 286,735 1,433,678 $258,062 $44,515,702
8. Forward Foreign Currency Contracts
During the six months ended April 30, 2014, the Fund had entered into various
forward foreign currency contracts that obligate the Fund to deliver or take
delivery of currencies at specified future maturity dates. Alternatively, prior
to the settlement date of a forward foreign currency contract, the Fund may
close out such contract by entering into an offsetting contract. During the six
months ended April 30, 2014, the Fund held no forward foreign currency
contracts.
9. Subsequent Event
Change in Independent Registered Public Accounting Firm
The board of Trustees of the Fund, with the approval and recommendation of the
Audit Committee, appointed Deloitte & Touche LLP to serve as the Fund's
independent registered public accounting firm for the fiscal year ending October
31, 2014. Deloitte & Touche LLP replaces Ernst & Young LLP, which resigned as
the Fund's independent registered public accounting firm, effective upon
completion of the audit of the Fund's financial statements for the fiscal year
ended October 31, 2013.
During the periods that Ernst & Young LLP served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
year, Ernst & Young LLP's reports on the financial statements of the Fund have
not contained an adverse opinion or disclaimer of opinion and have not been
qualified or modified as to uncertainty, audit scope or accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which, if not resolved to the satisfaction of Ernst & Young LLP would have
caused Ernst & Young LLP to make reference to the subject matter of the
disagreement in connection with its report on the financial statements. In
addition, there have been no reportable events to the kind described in Item
304(a)(i)(v) of Regulation S-K under the Securities and Exchange Act of 1934.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 45
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Equity Income Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in March 2013 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
In July 2013, the Trustees approved the format of the contract review materials
and submitted their formal request to PIM to furnish information necessary to
evaluate the terms of the investment advisory agreement. The contract review
materials were provided to the Trustees in July 2013 and September 2013. After
reviewing and discussing the materials, the Trustees submitted a request for
additional information to PIM, and materials were provided in response to this
request. Meetings of the Independent Trustees of the Fund were held in July,
September, and November, 2013 to review and discuss the contract review
materials. In addition, the Trustees took into account the information related
to the Fund provided to the Trustees at regularly scheduled meetings.
At a meeting held on November 12, 2013, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In considering
the renewal of the investment advisory agreement, the Trustees considered
various factors that they determined were relevant, including the factors
described below. In all quintile rankings referred to throughout this
disclosure, first quintile is most favorable to the Fund's shareowners. Thus,
highest relative performance would be first quintile and lowest relative
expenses would also be first quintile. The Trustees did not identify any single
factor as the controlling factor in determining to approve the renewal of the
agreement.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees reviewed the terms of the investment
advisory agreement. The Trustees also reviewed PIM's investment approach for the
Fund and its research process. The Trustees considered the resources of PIM and
the personnel of PIM who provide investment management services to the Fund.
They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in
46 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
PIM's services to the Fund, including PIM's compliance and legal resources and
personnel. The Trustees noted the substantial attention and high priority given
by PIM's senior management to the Pioneer fund complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
The Trustees review the Fund's performance on a regular basis, based on analysis
and data prepared by PIM for this purpose and discuss performance issues with
PIM on an ongoing basis. For purposes of their contract renewal deliberations,
the Trustees considered the performance results of the Fund over various time
periods. They reviewed information comparing the Fund's performance with the
performance of its peer group of funds as classified by Morningstar, Inc.
(Morningstar), an independent provider of investment company data, and with the
performance of the Fund's benchmark index. The Trustees considered that the
Fund's annualized total return was in the fourth quintile of its Morningstar
category for the one year period ended June 30, 2013, in the second quintile of
its Morningstar category for the three and ten year periods ended June 30, 2013,
and in the third quintile of its Morningstar category for the five year period
ended June 30, 2013. The Trustees also considered that the Fund's yield (for the
twelve months ended June 30, 2013) exceeded the yield of the Fund's benchmark
index for the same period. The Trustees noted the discussions held throughout
the year regarding the Fund's performance and confirmed that those discussions
were factored into the Trustees' deliberations concerning the renewal of the
advisory agreement. The Trustees considered reasons for the underperformance of
the Fund relative to its peer group and the steps recently taken in an effort to
improve the performance of the Fund. The Trustees agreed that they would
continue to closely monitor the Fund's performance.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 47
Independent Trustees for this purpose using data provided by Strategic Insight
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2013 was in the second quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoint in the management fee schedule and the
reduced fee rate above a certain asset level. The Trustees considered that the
Fund's expense ratio for the twelve months ended June 30, 2013 was in the third
quintile relative to both its Morningstar peer group and its Strategic Insight
peer group, in each case for the comparable period.
The Trustees reviewed management fees charged by PIM and PIM's affiliate,
Pioneer Institutional Asset Management, Inc. (together with PIM, "Pioneer") to
institutional and other clients, including publicly offered European funds
sponsored by affiliates of Pioneer, unaffiliated U.S. registered investment
companies (in a sub-advisory capacity), and unaffiliated foreign and domestic
separate accounts. The Trustees also considered PIM's costs in providing
services to the Fund and Pioneer's costs in providing services to the other
clients and considered the differences in management fees and profit margins for
Fund and non-Fund services. In evaluating the fees associated with Pioneer's
client accounts, the Trustees took into account the respective demands,
resources and complexity associated with the Fund and client accounts. The
Trustees noted that, in some instances, the fee rates for those clients were
lower than the management fee for the Fund and considered that, under the
investment advisory agreement with the Fund, PIM performs additional services
for the Fund that it does not provide to those other clients or services that
are broader in scope, including oversight of the Fund's other service providers
and activities related to compliance and the extensive regulatory and tax
regimes to which the Fund is subject. The Trustees also considered the different
entrepreneurial risks associated with PIM's management of the Fund and Pioneer's
management of the other client accounts. The Trustees concluded that the
management fee payable by the Fund to PIM was reasonable in relation to the
nature and quality of the services provided by PIM.
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results realized by PIM and its affiliates from non-fund businesses.
The Trustees considered PIM's profit margins with
48 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
respect to the Fund in comparison to the limited industry data available and
noted that the profitability of any adviser was affected by numerous factors,
including its organizational structure and method for allocating expenses. The
Trustees concluded that PIM's profitability with respect to the management of
the Fund was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoint in the management fee schedule. The Trustees recognize that
economies of scale are difficult to identify and quantify, rarely identifiable
on a fund-by-fund basis, and that, among other factors that may be relevant, are
the following: fee levels, expense subsidization, investment by PIM in research
and analytical capabilities and PIM's commitment and resource allocation to the
Fund. The Trustees noted that profitability also may be an indicator of the
availability of any economies of scale, although profitability may vary for
other reasons particularly, for example during the recent difficult periods for
financial markets, as the level of services was maintained notwithstanding a
significant decline in PIM's fee revenues from the Fund. Accordingly, the
Trustees concluded that economies of scale, if any, were being appropriately
shared with the Fund.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. The Trustees
considered the intangible benefits to PIM by virtue of its relationship with the
Fund and the other Pioneer funds. The Trustees concluded that the receipt of
these benefits was reasonable in the context of the overall relationship between
PIM and the Fund.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 49
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Daniel K. Kingsbury, President*
David R. Bock Mark D. Goodwin, Executive
Benjamin M. Friedman Vice President
Margaret B.W. Graham Mark E. Bradley, Treasurer**
Daniel K. Kingsbury Christopher J. Kelley, Secretary
Marc O. Mayer***
Marguerite A. Piret
Kenneth J. Taubes
Stephen K. West
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
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 us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Chief Executive Officer of the Fund.
** Chief Financial and Accounting Officer of the Fund.
*** Mr. Mayer resigned as a Trustee of the Pioneer Funds effective May 6, 2014.
50 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
This page for your notes.
Pioneer Equity Income Fund | Semiannual Report | 4/30/14 51
This page for your notes.
52 Pioneer Equity Income Fund | Semiannual Report | 4/30/14
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2014 Pioneer Investments 19381-08-0614
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Not applicable
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Not applicable
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Not applicable
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Not applicable
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Not applicable
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
Not applicable
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
Not applicable
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Equity Income Fund
By (Signature and Title)* /s/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date June 27, 2014
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/ Daniel K. Kingsbury
Daniel K. Kingsbury, President
Date June 27, 2014
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date June 27, 2014
* Print the name and title of each signing officer under his or her signature.