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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, 2014 through October 31, 2015
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Equity
Income Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 2015
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PEQIX
Class C PCEQX
Class K PEQKX
Class R PQIRX
Class Y PYEQX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 25
Notes to Financial Statements 34
Report of Independent Registered Public Accounting Firm 43
Approval of Investment Advisory Agreement 45
Trustees, Officers and Service Providers 50
Pioneer Equity Income Fund | Annual Report | 10/31/15 1
President's Letter
Dear Shareholder,
Through the first three quarters of 2015, global markets experienced pockets of
higher-than-average volatility due to significant cross-currents from different
geographic regions. All year, investors focused on the Federal Reserve System's
(the Fed's) deliberations over when to begin normalizing interest rates.
However, while there were signs of gradual economic improvement in the U.S.,
economies abroad increasingly diverged. In June, for example, investors grew
concerned about the debt crisis in Greece. That news, in turn, was followed by
evidence of an economic slowdown in China, which only served to exacerbate
existing worries about growth trends in the emerging markets, a segment of the
global economy already being negatively impacted by slumping commodity prices,
including the price of crude oil, which has been in near-steady decline for
almost a year. Through September 30, 2015, the pockets of heightened market
volatility alluded to above had resulted in the Standard & Poor's 500 Index
turning in a negative (-5.27%) return over the first nine months of the year.
However, the S&P 500 recovered nicely in October, returning 8.43% for the month,
which boosted the index's year-to-date return into positive territory, at 2.71%.
Despite the headwinds still vexing the global economy, our longer-term view of
the U.S. economy has remained positive. Economic conditions in the U.S. have
generally been constructive, based largely on improvements in employment
statistics and an uptick in the housing sector, which has aided the consumer
side of the economy, where household spending has been rising modestly. U.S.
consumers also stand to benefit, potentially, from lower energy prices as the
winter weather approaches. We continue to believe the U.S. economy remains on
a slow, steady growth trend, and that it is unlikely to be disrupted by a slow
pace of interest-rate normalization by the Fed.
Pioneer Investments believes that investors in today's environment can
potentially benefit from the consistent and disciplined investment approach we
have used since our founding in 1928. We focus on identifying value across
global markets using proprietary research, careful risk management, and a
long-term perspective. Our ongoing goal is to produce compelling returns
consistent with the stated objectives of our investment products, and with our
shareowners' expectations. We believe our shareowners can benefit from the
experience and tenure of our investment teams as well as the insights generated
from our extensive research process.
2 Pioneer Equity Income Fund | Annual Report | 10/31/15
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate your trust in us in the past and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
November 2, 2015
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 | Annual Report | 10/31/15 3
Portfolio Management Discussion | 10/31/15
In the following interview, John Carey, Executive Vice President and Director of
U.S. Portfolio Management at Pioneer Investments, discusses the investment
environment during the 12-month period ended October 31, 2015, 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, along with Walter
Hunnewell, Jr., a vice president and a portfolio manager at Pioneer.
Q How would you describe the market environment for equities during the
12-month period ended October 31, 2015, particularly for the types of
equities deemed appropriate for the Fund?
A Returns for the overall equity market were positive for the 12-month
period. Within the market, however, growth stocks significantly
outperformed value stocks, as investors were drawn to stocks of companies
that appeared able to achieve higher earnings in an economy expanding at
only a moderate pace. Throughout the period there was a market expectation,
not fulfilled, that the Federal Reserve System (the Fed) would raise
short-term interest rates, and a resulting cautiousness towards stocks in
sectors and industries felt to be vulnerable to higher rates, including
utilities, real-estate investment trusts (REITs), and industrials, among
others. The strong U.S. dollar - strong to a degree because of that belief
that rates were going higher - hampered business for many exporting
companies, particularly machinery manufacturers and consumer-products
makers. Finally, an intense fascination with the internet, online sales,
biotech, and other "cutting-edge" enterprises drained investment dollars
from more "old-line"-type businesses and led to quite strong performance by
a select list of hyper-growth "stories;" and plodding, sluggish performance
by many other stocks.
In that "Tale of Two Cities" stock market environment, the approach that we
took in managing the Fund was our customary one of emphasizing stocks we
thought well supported by both attractive valuation and appreciation
potential. The strategy of Pioneer Equity Income Fund is to "back into
growth" by looking first at a company's record of dividend* payments. We
place special emphasis on owning stocks that have paid dividends over
multiple years and at rising levels.
We seek to own shares of companies able to achieve such track records as
the result of steady and growing earnings and cash flows. We also look for
stocks that have not received as much attention as market-leading names -
and that sometimes positions the Fund in stocks not yet fully priced. One
* Dividends are not guaranteed.
4 Pioneer Equity Income Fund | Annual Report | 10/31/15
byproduct of that process is our happening upon stocks that, from time to
time, are "taken over" by other entities in mergers and acquisitions, often
at premium prices relative to the current market. Kraft (consumer staples)
and Chubb (financials) were two significant portfolio holdings that
received such offers during the 12-month period, with both contributing
positively to the Fund's investment results.
Q How did the Fund perform in that environment during the 12-month period
ended October 31, 2015?
A Pioneer Equity Income Fund's Class A shares returned 5.30% at net asset
value during the 12-month period ended October 31, 2015, while the Fund's
benchmark, the Russell 1000 Value Index (the Russell Index), returned
0.53%. During the same period, the average return of the 497 mutual funds
in Lipper's Equity Income Funds category was 0.08%, and the average return
of the 1,377 mutual funds in Morningstar's Large Value Funds category was
0.37%.
Q The Fund outperformed the Russell Index benchmark during the 12-month
period ended October 31, 2015. Could you please discuss the major reasons
for the Fund's benchmark-relative outperformance?
A Most of the benchmark-relative outperformance in the Fund's portfolio
during the period came from stock selections, but sector allocations also
contributed positively to relative returns. The main sector-allocation
contributing factor was the Fund's large underweight to energy, the
poorest-performing sector in the Russell Index during the period. With
regard to energy, we were skeptical that oil and gas prices would bounce
back quickly from the nosedive they took after the middle of the 2014
calendar year, and we were also concerned about the sustainability of
dividend payments in a sector with plummeting earnings. On the negative
side of asset allocation, a portfolio overweight to the likewise
poor-performing materials sector hurt relative results, but stock selection
in the sector was good, nearly offsetting the performance loss from the
sector-weighting decision.
The bulk of the Fund's strong benchmark-relative performance during the
period resulted from gains on individual stocks held in the portfolio. We
have already mentioned Kraft and Chubb, recipients of take-over offers.
Other meaningful, positive performance attribution came from the Fund's
holdings in Dr. Pepper Snapple (consumer staples), Cedar Fair (consumer
discretionary), Mondelez International (consumer staples), NVIDIA
(information technology), and Pinnacle Foods (consumer staples). The
Pioneer Equity Income Fund | Annual Report | 10/31/15 5
Fund's returns also benefited from not owning, or owning only relatively
modest amounts of, performance laggards such as Chevron, ExxonMobil, and
Wal-Mart Stores.
Security selection results were not all positive during the 12-month
period, however, as the Fund lost some benchmark-relative performance on
positions in Canadian Imperial Bank (financials) and Syngenta (materials).
The problems plaguing the natural-resources industries affected the
Canadian economy and diminished prospects for growth in the banking
industry, and so we sold the Fund's position in Canadian Imperial during
the period. Syngenta received, but spurned, a rich acquisition offer from
Monsanto, which ultimately pulled its offer and walked away, causing a
decline in Syngenta's share price. We have retained the Fund's position in
Syngenta as we think the shares, at their reduced price, represent
reasonable value.
Q What changes did you make to the Fund's portfolio during the 12-month
period ended October 31, 2015?
A During the 12-month period, we added somewhat more than two dozen positions
to the Fund's portfolio and liquidated nearly three dozen, with a net
reduction of about a half-dozen names.
Important additions to the portfolio during the period included:
Consolidated Edison (utilities), an electricity and natural-gas supplier to
New York City and parts of New Jersey and Pennsylvania; Helmerich & Payne
(energy), an oil-and-gas drilling company, with a focus on North and South
America; Mead Johnson Nutrition (consumer staples), provider of nutritional
products to babies, with important businesses in emerging markets,
especially China; CBS (consumer discretionary), television and radio
broadcaster and book publisher; and Hartford Financial Services
(financials), diversified insurance underwriter. Later in the period, after
observing the stock's decline with the price of oil, we took advantage of
what we regarded as an attractive entry point and added shares of Chevron
(energy), the integrated, international oil, gas, and chemical company we
mentioned previously.
Both purchased and sold during the period was Broadcom (information
technology), developer of integrated circuits for communications. The stock
jumped after we purchased it, when the company received a premium take-
over bid, and we decided to take profits and reinvest elsewhere. AGL
Resources (utilities) likewise received a take-over bid, leading us to sell
that position. With regard to Kraft, we kept the Fund invested in the stock
through its merger with Heinz and later sold the portfolio's holding in the
combined company. A host of other sales from the portfolio during the
period owed to our thinking that the price of the stock had reached fair
6 Pioneer Equity Income Fund | Annual Report | 10/31/15
value, that earnings prospects for the company had diminished or that we
had found better value in other stocks and determined that a substitution
of names was warranted.
Q Did the Fund hold any derivatives during the 12-month period ended October
31, 2015?
A No. The Fund did not own any derivative positions during the period.
Q As you noted earlier, the Fund typically places an emphasis on dividend-
paying stocks. Would you describe the environment for dividends as positive
or negative during the 12-month period ended October 31, 2015?
A Generally speaking, investors were cautious towards owning stocks whose
prices they perceived as receiving meaningful support from their dividend
yields. Due to the broad expectation that interest rates were soon going to
rise, investors especially shied away from names they regarded as "bond
substitutes." While we understand the logic of that view; namely, that
bonds offering high coupons will present greater competition to stocks
trading on their dividend yields, we have never quite agreed with it. As
long as companies can increase earnings over time and thus potentially
increase their dividends, they stand a chance of competing for investor
attention with bonds, which usually have fixed coupon rates from issuance
through maturity. Later in the period, when we thought that weakness in
some of the so-called bond substitutes presented potentially attractive
buying opportunities, we added to the Fund's holdings in utilities and
REITs, among other income-heavy securities. In the event, of course, the
Fed had still not raised short-term rates by the end of the period, and the
above-noted investor concerns appeared to become less intense.
Q What is your outlook for the equity markets as we approach the end of
calendar 2015 and get ready to usher in a new calendar year?
A Investor behavior seems much influenced by the state of the economy, and so
we, too, think about that, even while spending most of our time studying
and assessing companies. Our view is that the U. S. economy will show
continued moderate growth into 2016, but with risks. The weakness in
commodities prices troubles us, as do the soft results for many industrials
sector names, especially the capital-goods companies. So far, the housing
and automotive industries are holding up; but, especially in the case of
autos, one has the sense that promotions and "special offers" are becoming
more important. Merger-and-acquisition activity, which helped fuel market
advances over the past couple of years and certainly has benefited the
Fund's performance, has lost some of its traction as anti-trust cases have
become more aggressive and opposition has grown to tax-inversion
Pioneer Equity Income Fund | Annual Report | 10/31/15 7
schemes. In our opinion, it is very difficult to see higher profit margins
at this point without stronger sales; and, particularly for multinational
companies, the strong U.S. dollar and the weakness of economies elsewhere
in the world are holding sales back.
Another key question is what will happen going forward in Europe, Latin
America, and China? We believe we need to see improvement in those areas,
along with some lessening of the current and rather acute geopolitical
risks, if we are to experience markedly higher economic growth in the U.S.
Therefore, we are cautious, if still on balance constructive, regarding
economic prospects here at home. Against that backdrop, we think that the
Fund's strategy of leaning towards value and dividends as well as balance-
sheet strength - and company management teams committed to returns for
shareholders - remains the way to go.
Thank you as always for your support.
Please refer to the Schedule of Investments on pages 18-24 for a full listing of
Fund securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
The 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.
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Pioneer Investments for a prospectus or
summary prospectus containing this information. Read it carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
8 Pioneer Equity Income Fund | Annual Report | 10/31/15
Portfolio Summary | 10/31/15
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 89.6%
International Common Stocks 7.0%
Depositary Receipts for International Stocks 3.4%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 20.8%
Consumer Staples 13.9%
Health Care 12.9%
Utilities 11.0%
Consumer Discretionary 10.6%
Industrials 8.8%
Materials 8.5%
Energy 7.5%
Information Technology 4.9%
Telecommunication Services 1.1%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. The Valspar Corp. 3.94%
--------------------------------------------------------------------------------
2. The Chubb Corp. 2.95
--------------------------------------------------------------------------------
3. The Gorman-Rupp Co. 2.65
--------------------------------------------------------------------------------
4. Mondelez International, Inc. 2.41
--------------------------------------------------------------------------------
5. Cedar Fair LP 2.31
--------------------------------------------------------------------------------
6. Becton Dickinson and Co. 2.19
--------------------------------------------------------------------------------
7. Dr. Pepper Snapple Group, Inc. 2.15
--------------------------------------------------------------------------------
8. General Electric Co. 2.02
--------------------------------------------------------------------------------
9. Chevron Corp. 1.85
--------------------------------------------------------------------------------
10. Alliant Energy Corp. 1.78
--------------------------------------------------------------------------------
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any securities listed.
Pioneer Equity Income Fund | Annual Report | 10/31/15 9
Prices and Distributions | 10/31/15
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/15 10/31/14
--------------------------------------------------------------------------------
A $34.41 $36.47
--------------------------------------------------------------------------------
C $33.91 $36.03
--------------------------------------------------------------------------------
K $34.44 $36.52
--------------------------------------------------------------------------------
R $34.83 $36.88
--------------------------------------------------------------------------------
Y $34.71 $36.77
--------------------------------------------------------------------------------
Distributions per Share: 11/1/14-10/31/15
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.7510 $ -- $3.1476
--------------------------------------------------------------------------------
C $0.5240 $ -- $3.1476
--------------------------------------------------------------------------------
K $0.8951 $ -- $3.1476
--------------------------------------------------------------------------------
R $0.6299 $ -- $3.1476
--------------------------------------------------------------------------------
Y $0.8531 $ -- $3.1476
--------------------------------------------------------------------------------
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 11-15.
10 Pioneer Equity Income Fund | Annual Report | 10/31/15
Performance Update | 10/31/15 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 October 31, 2015)
--------------------------------------------------------------------------------
Net Public Russell
Asset Offering 1000
Value Price Value
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 Years 7.30% 6.67% 6.75%
5 Years 12.89 11.56 13.26
1 Year 5.30 -0.75 0.53
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.09%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/05 $ 9,425 $10,000
10/06 $11,463 $12,146
10/07 $12,634 $13,462
10/08 $ 8,845 $ 8,508
10/09 $ 8,641 $ 8,915
10/10 $10,401 $10,315
10/11 $11,572 $10,951
10/12 $12,739 $12,800
10/13 $16,119 $16,422
10/14 $18,107 $19,124
10/15 $19,066 $19,225
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 | Annual Report | 10/31/15 11
Performance Update | 10/31/15 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 Years 6.49% 6.49% 6.75%
5 Years 12.06 12.06 13.26
1 Year 4.49 4.49 0.53
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.80%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/05 $10,000 $10,000
10/06 $12,066 $12,146
10/07 $13,197 $13,462
10/08 $ 9,169 $ 8,508
10/09 $ 8,883 $ 8,915
10/10 $10,612 $10,315
10/11 $11,721 $10,951
10/12 $12,806 $12,800
10/13 $16,085 $16,422
10/14 $17,948 $19,124
10/15 $18,753 $19,225
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.
12 Pioneer Equity Income Fund | Annual Report | 10/31/15
Performance Update | 10/31/15 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 October 31, 2015)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 Years 7.42% 6.75%
5 Years 13.15 13.26
1 Year 5.67 0.53
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.69%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/05 $10,000 $10,000
10/06 $12,161 $12,146
10/07 $13,404 $13,462
10/08 $ 9,384 $ 8,508
10/09 $ 9,168 $ 8,915
10/10 $11,034 $10,315
10/11 $12,277 $10,951
10/12 $13,515 $12,800
10/13 $17,164 $16,422
10/14 $19,365 $19,124
10/15 $20,463 $19,225
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.
Pioneer Equity Income Fund | Annual Report | 10/31/15 13
Performance Update | 10/31/15 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 October 31, 2015)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 Years 7.02% 6.75%
5 Years 12.52 13.26
1 Year 4.90 0.53
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.43%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/05 $10,000 $10,000
10/06 $12,141 $12,146
10/07 $13,367 $13,462
10/08 $ 9,339 $ 8,508
10/09 $ 9,105 $ 8,915
10/10 $10,928 $10,315
10/11 $12,126 $10,951
10/12 $13,309 $12,800
10/13 $16,788 $16,422
10/14 $18,793 $19,124
10/15 $19,713 $19,225
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.
14 Pioneer Equity Income Fund | Annual Report | 10/31/15
Performance Update | 10/31/15 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2015)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 Years 7.71% 6.75%
5 Years 13.26 13.26
1 Year 5.56 0.53
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2015)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.79%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/05 $ 5,000,000 $5,000,000
10/06 $ 6,104,780 $6,072,846
10/07 $ 6,755,214 $6,730,773
10/08 $ 4,747,971 $4,253,999
10/09 $ 4,660,295 $4,457,543
10/10 $ 5,638,011 $5,157,662
10/11 $ 6,299,536 $5,475,404
10/12 $ 6,958,876 $6,400,236
10/13 $ 8,836,006 $8,210,801
10/14 $ 9,955,974 $9,562,102
10/15 $10,509,560 $9,612,718
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.
Pioneer Equity Income Fund | Annual Report | 10/31/15 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from May 1, 2015, through October 31, 2015.
-------------------------------------------------------------------------------------
Share Class A C K R Y
-------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/15
-------------------------------------------------------------------------------------
Ending Account Value $1,010.94 $1,007.23 $1,013.04 $1,009.04 $1,012.37
(after expenses) on
10/31/15
-------------------------------------------------------------------------------------
Expenses Paid $ 5.37 $ 9.11 $ 3.40 $ 7.14 $ 3.96
During Period*
-------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.06%, 1.80%,
0.67% 1.41% and 0.78% for Class A, Class C, Class K, Class R and Class Y
shares, respectively, multiplied by the average account value over the
period, multiplied by 184/365 (to reflect the one-half year period).
16 Pioneer Equity Income Fund | Annual Report | 10/31/15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from May 1, 2015, through October 31, 2015.
-------------------------------------------------------------------------------------
Share Class A C K R Y
-------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 5/1/15
-------------------------------------------------------------------------------------
Ending Account Value $1,019.86 $1,016.13 $1,021.83 $1,018.10 $1,021.27
(after expenses) on
10/31/15
-------------------------------------------------------------------------------------
Expenses Paid $ 5.40 $ 9.15 $ 3.41 $ 7.17 $ 3.97
During Period*
-------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.06%, 1.80%,
0.67% 1.41% and 0.78% for Class A, Class C, Class K, Class R and Class Y
shares, respectively, multiplied by the average account value over the
period, multiplied by 184/365 (to reflect the one-half year period).
Pioneer Equity Income Fund | Annual Report | 10/31/15 17
Schedule of Investments | 10/31/15
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
COMMON STOCKS -- 99.9%
ENERGY -- 7.5%
Oil & Gas Drilling -- 1.4%
362,082 Helmerich & Payne, Inc. $ 20,374,354
------------------------------------------------------------------------------------
Oil & Gas Equipment & Services -- 0.6%
418,400 Frank's International NV $ 7,179,744
15,000 Schlumberger, Ltd. 1,172,400
--------------
$ 8,352,144
------------------------------------------------------------------------------------
Integrated Oil & Gas -- 2.8%
299,731 Chevron Corp. $ 27,239,553
187,788 Occidental Petroleum Corp. 13,997,718
--------------
$ 41,237,271
------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 0.5%
122,472 Anadarko Petroleum Corp. $ 8,190,927
------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 2.2%
426,030 Marathon Petroleum Corp. $ 22,068,354
115,124 Phillips 66 10,251,792
--------------
$ 32,320,146
--------------
Total Energy $ 110,474,842
------------------------------------------------------------------------------------
MATERIALS -- 8.6%
Fertilizers & Agricultural Chemicals -- 0.9%
200,000 Syngenta AG (A.D.R.) $ 13,458,000
------------------------------------------------------------------------------------
Specialty Chemicals -- 5.6%
113,247 Celanese Corp. $ 8,046,199
4,755 Givaudan SA 8,519,866
200,454 Johnson Matthey Plc 7,994,641
716,600 The Valspar Corp. 58,008,771
--------------
$ 82,569,477
------------------------------------------------------------------------------------
Paper Packaging -- 0.8%
254,381 Sonoco Products Co. $ 10,859,525
------------------------------------------------------------------------------------
Diversified Metals & Mining -- 1.3%
237,600 Compass Minerals International, Inc. $ 19,302,624
--------------
Total Materials $ 126,189,626
------------------------------------------------------------------------------------
CAPITAL GOODS -- 6.0%
Aerospace & Defense -- 0.6%
70,442 Raytheon Co. $ 8,269,891
------------------------------------------------------------------------------------
Industrial Conglomerates -- 2.0%
1,029,984 General Electric Co. $ 29,787,137
------------------------------------------------------------------------------------
Industrial Machinery -- 2.7%
1,363,363 The Gorman-Rupp Co.+ $ 38,978,548
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Equity Income Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.7%
184,056 Wolseley Plc $ 10,839,165
--------------
Total Capital Goods $ 87,874,741
------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 2.2%
Office Services & Supplies -- 0.5%
192,664 MSA Safety, Inc. $ 8,377,031
------------------------------------------------------------------------------------
Diversified Support Services -- 1.3%
290,000 G&K Services, Inc. $ 19,087,800
------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.4%
95,096 Randstad Holding NV $ 5,686,580
--------------
Total Commercial Services & Supplies $ 33,151,411
------------------------------------------------------------------------------------
TRANSPORTATION -- 0.6%
Railroads -- 0.6%
97,059 Union Pacific Corp. $ 8,672,222
--------------
Total Transportation $ 8,672,222
------------------------------------------------------------------------------------
AUTOMOBILES & COMPONENTS -- 0.8%
Auto Parts & Equipment -- 0.3%
112,608 BorgWarner, Inc. $ 4,821,875
------------------------------------------------------------------------------------
Automobile Manufacturers -- 0.5%
220,000 General Motors Co. $ 7,680,200
--------------
Total Automobiles & Components $ 12,502,075
------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.8%
Household Appliances -- 0.8%
380,383 Electrolux AB $ 11,236,390
--------------
Total Consumer Durables & Apparel $ 11,236,390
------------------------------------------------------------------------------------
CONSUMER SERVICES -- 4.5%
Hotels, Resorts & Cruise Lines -- 1.8%
590,357 InterContinental Hotels Group Plc $ 23,690,748
60,765 InterContinental Hotels Group Plc (A.D.R.) 2,423,308
--------------
$ 26,114,056
------------------------------------------------------------------------------------
Leisure Facilities -- 2.3%
607,087 Cedar Fair LP $ 33,996,872
------------------------------------------------------------------------------------
Restaurants -- 0.4%
48,921 Cracker Barrel Old Country Store, Inc. $ 6,724,681
--------------
Total Consumer Services $ 66,835,609
------------------------------------------------------------------------------------
MEDIA -- 2.9%
Broadcasting -- 1.4%
270,000 CBS Corp. (Class B) $ 12,560,400
132,190 Scripps Networks Interactive, Inc. 7,941,975
--------------
$ 20,502,375
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/15 19
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
Movies & Entertainment -- 0.6%
500,000 Regal Entertainment Group $ 9,690,000
------------------------------------------------------------------------------------
Publishing -- 0.9%
114,100 John Wiley & Sons, Inc. (Class A) $ 5,970,853
142,644 Meredith Corp. 6,707,121
--------------
$ 12,677,974
--------------
Total Media $ 42,870,349
------------------------------------------------------------------------------------
RETAILING -- 1.5%
Department Stores -- 0.9%
200,000 Nordstrom, Inc. $ 13,042,000
------------------------------------------------------------------------------------
General Merchandise Stores -- 0.6%
125,979 Target Corp. $ 9,723,059
--------------
Total Retailing $ 22,765,059
------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 12.9%
Soft Drinks -- 3.1%
353,400 Dr. Pepper Snapple Group, Inc. $ 31,583,358
323,033 The Coca-Cola Co. 13,680,448
--------------
$ 45,263,806
------------------------------------------------------------------------------------
Packaged Foods & Meats -- 9.8%
445,005 Campbell Soup Co. $ 22,601,804
133,287 General Mills, Inc. 7,745,308
80,712 John B Sanfilippo & Son, Inc. 5,223,681
342,785 Kellogg Co. 24,173,198
100,000 McCormick & Co., Inc. 8,398,000
222,793 Mead Johnson Nutrition Co. 18,269,026
769,000 Mondelez International, Inc. 35,497,040
503,396 Pinnacle Foods, Inc. 22,189,696
--------------
$ 144,097,753
--------------
Total Food, Beverage & Tobacco $ 189,361,559
------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.1%
Household Products -- 1.1%
129,210 The Clorox Co. $ 15,755,867
--------------
Total Household & Personal Products $ 15,755,867
------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 5.0%
Health Care Equipment -- 3.8%
116,900 Abbott Laboratories $ 5,237,120
226,600 Becton Dickinson and Co. 32,295,032
1,026,557 Smith & Nephew Plc 17,580,440
--------------
$ 55,112,592
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
Health Care Distributors -- 1.2%
509,300 Owens & Minor, Inc. $ 18,258,405
--------------
Total Health Care Equipment & Services $ 73,370,997
------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE
SCIENCES -- 8.0%
Biotechnology -- 0.5%
49,017 Amgen, Inc. $ 7,753,509
------------------------------------------------------------------------------------
Pharmaceuticals -- 7.5%
323,326 AstraZeneca Plc (A.D.R.) $ 10,310,866
147,342 Eli Lilly & Co. 12,018,687
461,065 GlaxoSmithKline Plc (A.D.R.) 19,853,459
454,640 Merck & Co., Inc. 24,850,622
550,165 Pfizer, Inc. 18,606,580
95,096 Roche Holding AG (A.D.R.) 3,224,705
481,577 Zoetis, Inc. 20,712,627
--------------
$ 109,577,546
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 117,331,055
------------------------------------------------------------------------------------
BANKS -- 5.9%
Diversified Banks -- 3.7%
1,018,202 Bank of America Corp. $ 17,085,430
302,081 US Bancorp 12,741,777
459,400 Wells Fargo & Co. 24,871,916
--------------
$ 54,699,123
------------------------------------------------------------------------------------
Regional Banks -- 1.1%
299,847 Citizens Financial Group, Inc. $ 7,286,282
530,000 People's United Financial, Inc. 8,453,500
--------------
$ 15,739,782
------------------------------------------------------------------------------------
Thrifts & Mortgage Finance -- 1.1%
963,343 New York Community Bancorp, Inc. $ 15,914,426
--------------
Total Banks $ 86,353,331
------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 3.4%
Consumer Finance -- 1.0%
204,781 American Express Co. $ 15,002,256
------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 1.9%
263,511 Federated Investors, Inc. (Class B) $ 8,097,693
65,000 Northern Trust Corp. 4,575,350
225,754 State Street Corp. 15,577,026
--------------
$ 28,250,069
------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.5%
232,759 Morgan Stanley Co. $ 7,674,064
--------------
Total Diversified Financials $ 50,926,389
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/15 21
Schedule of Investments | 10/31/15 (continued)
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
INSURANCE -- 7.4%
Life & Health Insurance -- 1.0%
281,652 Lincoln National Corp. $ 15,071,199
------------------------------------------------------------------------------------
Multi-line Insurance -- 1.1%
346,013 The Hartford Financial Services Group, Inc. $ 16,006,561
------------------------------------------------------------------------------------
Property & Casualty Insurance -- 5.3%
335,587 The Chubb Corp. $ 43,408,178
283,525 The Progressive Corp. 9,393,183
223,272 The Travelers Companies, Inc. 25,205,176
--------------
$ 78,006,537
--------------
Total Insurance $ 109,084,297
------------------------------------------------------------------------------------
REAL ESTATE -- 4.1%
Hotel & Resort REIT -- 0.5%
293,416 Chesapeake Lodging Trust $ 8,080,677
------------------------------------------------------------------------------------
Office REIT -- 1.8%
149,330 Alexandria Real Estate Equities, Inc. $ 13,400,874
529,672 BioMed Realty Trust, Inc. 12,399,622
--------------
$ 25,800,496
------------------------------------------------------------------------------------
Residential REIT -- 0.6%
128,333 Camden Property Trust $ 9,469,692
------------------------------------------------------------------------------------
Retail REIT -- 0.6%
331,872 Kimco Realty Corp. $ 8,884,213
------------------------------------------------------------------------------------
Specialized REIT -- 0.6%
359,003 Outfront Media, Inc. $ 8,476,061
--------------
Total Real Estate $ 60,711,139
------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 0.7%
IT Consulting & Other Services -- 0.7%
99,491 Accenture Plc $ 10,665,435
--------------
Total Software & Services $ 10,665,435
------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 4.2%
Semiconductor Equipment -- 0.2%
81,814 Cabot Microelectronics Corp.* $ 3,450,096
------------------------------------------------------------------------------------
Semiconductors -- 4.0%
20,000 Intel Corp. $ 677,200
288,426 Linear Technology Corp. 12,811,883
523,502 Microchip Technology, Inc. 25,279,912
717,266 NVIDIA Corp. 20,348,836
--------------
$ 59,117,831
--------------
Total Semiconductors & Semiconductor Equipment $ 62,567,927
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Annual Report | 10/31/15
------------------------------------------------------------------------------------
Shares Value
------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.7%
Integrated Telecommunication Services -- 0.7%
214,462 AT&T, Inc. $ 7,186,622
55,000 Verizon Communications, Inc. 2,578,400
--------------
$ 9,765,022
--------------
Total Telecommunication Services $ 9,765,022
------------------------------------------------------------------------------------
Utilities -- 11.1%
Electric Utilities -- 4.3%
362,057 American Electric Power Co., Inc. $ 20,510,529
348,814 Eversource Energy 17,768,585
134,639 NextEra Energy, Inc. 13,822,040
278,568 Westar Energy, Inc. 11,059,150
--------------
$ 63,160,304
------------------------------------------------------------------------------------
Gas Utilities -- 2.0%
361,811 National Fuel Gas Co. $ 19,005,932
522,877 Questar Corp. 10,797,410
--------------
$ 29,803,342
------------------------------------------------------------------------------------
Multi-Utilities -- 4.8%
442,569 Alliant Energy Corp. $ 26,120,422
498,500 Ameren Corp. 21,774,480
335,667 Consolidated Edison, Inc. 22,070,105
--------------
$ 69,965,007
--------------
Total Utilities $ 162,928,653
------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,099,717,807) $1,471,393,995
------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.9%
(Cost $1,099,717,807) (a) $1,471,393,995
------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.1% $ 1,181,876
------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,472,575,871
====================================================================================
* Non-income producing security.
REIT Real Estate Investment Trust.
+ Investment held by the Fund representing 5% or more of the
outstanding voting stock of such company.
(A.D.R.) American Depositary Receipts.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/15 23
Schedule of Investments | 10/31/15 (continued)
(a) At October 31, 2015, the net unrealized appreciation on
investments based on cost for federal income tax purposes of
$1,084,283,369 was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost $ 415,872,493
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value (28,761,867)
-------------
Net unrealized appreciation $ 387,110,626
=============
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2015 aggregated $595,627,868 and $663,663,467,
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.
The following is a summary of the inputs used as of October 31, 2015, in valuing
the Fund's investments:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $1,471,393,995 $-- $-- $1,471,393,995
--------------------------------------------------------------------------------
Total $1,471,393,995 $-- $-- $1,471,393,995
================================================================================
During the year ended October 31, 2015, there were no transfers between Levels
1, 2 and 3. The following is a summary of the fair valuation of certain Fund's
assets and liabilities as of October 31, 2015:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Assets:
Foreign currencies, at value $ -- $37 $ -- $37
--------------------------------------------------------------------------------
Total $ -- $37 $ -- $37
================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Annual Report | 10/31/15
Statement of Assets and Liabilities | 10/31/15
ASSETS:
Investment in securities of unaffiliated issuers, at value
(cost $1,092,761,043) $1,432,415,447
Investment in securities of an affiliated issuer, at value (cost $6,956,764) 38,978,548
----------------------------------------------------------------------------------------------
Total investments in securities, at value (cost $1,099,717,807) $1,471,393,995
Foreign currency (cost $37) 37
Receivables --
Investment securities sold 8,776,261
Fund shares sold 2,636,026
Dividends 2,198,307
Other assets 49,737
----------------------------------------------------------------------------------------------
Total assets $1,485,054,363
==============================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 10,145,617
Fund shares repurchased 1,393,988
Trustees fees 5,456
Due to affiliates 495,845
Due to custodian 354,357
Accrued expenses 83,229
----------------------------------------------------------------------------------------------
Total liabilities $ 12,478,492
==============================================================================================
NET ASSETS:
Paid-in capital $ 973,796,503
Undistributed net investment income 17,297,104
Accumulated net realized gain on investments 109,956,884
Net unrealized appreciation on investments 371,676,188
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (150,808)
----------------------------------------------------------------------------------------------
Total net assets $1,472,575,871
==============================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $732,397,139/21,286,672 shares) $ 34.41
Class C (based on $116,089,691/3,423,446 shares) $ 33.91
Class K (based on $20,908,034/607,077 shares) $ 34.44
Class R (based on $75,876,027/2,178,211 shares) $ 34.83
Class Y (based on $527,304,980/15,190,276 shares) $ 34.71
MAXIMUM OFFERING PRICE:
Class A ($34.41 (divided by) 94.25%) $ 36.51
==============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/15 25
Statement of Operations
For the Year Ended 10/31/15
INVESTMENT INCOME:
Dividends (including dividend income from affiliated issuer of
$552,377 and net of foreign tax withheld of $154,690) $ 45,256,841
-----------------------------------------------------------------------------------------------
Total investment income $ 45,256,841
-----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 8,923,615
Transfer agent fees
Class A 456,096
Class B* 1,154
Class C 48,231
Class K 1,291
Class R 4,240
Class Y 2,690
Class Z** 732
Distribution fees
Class A 1,875,881
Class B* 2,832
Class C 1,195,888
Class R 381,699
Shareholder communications expense 1,592,649
Administrative expense 439,993
Custodian fees 33,346
Registration fees 115,389
Professional fees 85,495
Printing expense 44,701
Fees and expenses of nonaffiliated Trustees 64,768
Miscellaneous 95,788
-----------------------------------------------------------------------------------------------
Total expenses $ 15,366,478
-----------------------------------------------------------------------------------------------
Net investment income $ 29,890,363
===============================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments (including from affiliated issuer of $1,843,271) $109,971,791
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (117,755) $109,854,036
-----------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments (including from affiliated Issuer
of ($6,156,814)) $(62,034,618)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (48,574) $(62,083,192)
-----------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments and
foreign currency transactions $ 47,770,844
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 77,661,207
===============================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
** Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Annual Report | 10/31/15
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/15 10/31/14
-------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 29,890,363 $ 38,775,202
Net realized gain on investments and foreign
currency transactions 109,854,036 128,186,771
Change in net unrealized appreciation (depreciation)
on investments and foreign currency transactions (62,083,192) 8,751,709
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 77,661,207 $ 175,713,682
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.75 and $0.80 per share, respectively) $ (16,716,779) $ (18,352,204)
Class B* ($0.00 and $0.40 per share, respectively) -- (135,583)
Class C ($0.52 and $0.55 per share, respectively) (1,851,301) (1,761,651)
Class K ($0.90 and $0.94 per share, respectively) (413,670) (97,088)
Class R ($0.63 and $0.67 per share, respectively) (1,405,801) (1,598,587)
Class Y ($0.85 and $0.91 per share, respectively) (12,754,872) (12,885,265)
Class Z** ($0.64 and $0.85 per share, respectively) (24,005) (52,341)
Net realized gain:
Class A ($3.15 and $1.15 per share, respectively) $ (66,682,486) $ (26,460,393)
Class B* ($0.00 and $1.15 per share, respectively) -- (449,286)
Class C ($3.15 and $1.15 per share, respectively) (10,128,292) (3,553,217)
Class K ($3.15 and $1.15 per share, respectively) (961,946) (3,933)
Class R ($3.15 and $1.15 per share, respectively) (6,797,737) (2,944,529)
Class Y ($3.15 and $1.15 per share, respectively) (43,627,159) (15,774,041)
Class Z** ($3.15 and $1.15 per share, respectively) (116,535) (94,442)
-------------------------------------------------------------------------------------------
Total distributions to shareowners $ (161,480,583) $ (84,162,560)
-------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 328,984,174 $ 309,566,344
Reinvestment of distributions 143,406,591 74,758,846
Cost of shares repurchased (413,532,740) (460,644,848)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 58,858,025 $ (76,319,658)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ (24,961,351) $ 15,231,464
NET ASSETS:
Beginning of year 1,497,537,222 1,482,305,758
-------------------------------------------------------------------------------------------
End of year $1,472,575,871 $1,497,537,222
-------------------------------------------------------------------------------------------
Undistributed net investment income $ 17,297,104 $ 20,841,002
===========================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
** Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/15 27
Statements of Changes in Net Assets (continued)
--------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/15 10/31/15 10/31/14 10/31/14
Shares Amount Shares Amount
--------------------------------------------------------------------------------------------
Class A
Shares sold 3,282,733 $ 113,641,411 3,386,585 $ 118,220,828
Reinvestment of distributions 2,331,741 79,888,375 1,259,648 43,052,042
Less shares repurchased (5,436,294) (187,419,267) (7,588,919) (265,225,868)
--------------------------------------------------------------------------------------------
Net increase (decrease) 178,180 $ 6,110,519 (2,942,686) $ (103,952,998)
============================================================================================
Class B*
Shares sold or exchanged -- $ -- 11,816 $ 402,086
Reinvestment of distributions -- -- 16,387 551,481
Less shares repurchased (284,163) (10,448,255) (147,775) (5,102,064)
--------------------------------------------------------------------------------------------
Net decrease (284,163) $ (10,448,255) (119,572) $ (4,148,497)
============================================================================================
Class C
Shares sold 801,513 $ 27,159,377 557,786 $ 19,152,401
Reinvestment of distributions 249,152 8,418,829 110,592 3,720,045
Less shares repurchased (840,599) (28,363,395) (545,471) (18,857,316)
--------------------------------------------------------------------------------------------
Net increase 210,066 $ 7,214,811 122,907 $ 4,015,130
============================================================================================
Class K
Shares sold 391,354 $ 13,488,826 321,601 $ 11,597,482
Reinvestment of distributions 38,678 1,325,294 2,819 100,616
Less shares repurchased (120,070) (4,116,064) (30,712) (1,095,715)
--------------------------------------------------------------------------------------------
Net increase 309,962 $ 10,698,056 293,708 $ 10,602,383
============================================================================================
Class R
Shares sold 537,104 $ 18,652,763 365,050 $ 12,872,885
Reinvestment of distributions 231,207 8,018,150 129,561 4,463,805
Less shares repurchased (733,261) (25,422,340) (829,085) (29,056,585)
--------------------------------------------------------------------------------------------
Net increase (decrease) 35,050 $ 1,248,573 (334,474) $ (11,719,895)
============================================================================================
Class Y
Shares sold 4,489,448 $ 155,697,868 4,181,507 $ 146,976,992
Reinvestment of distributions 1,320,093 45,617,499 658,068 22,725,568
Less shares repurchased (4,501,224) (156,053,921) (3,914,688) (139,019,101)
--------------------------------------------------------------------------------------------
Net increase 1,308,317 $ 45,261,446 924,887 $ 30,683,459
============================================================================================
Class Z**
Shares sold 9,797 $ 343,929 9,802 $ 343,670
Reinvestment of distributions 4,028 138,444 4,268 145,289
Less shares repurchased (49,433) (1,709,498) (65,295) (2,288,199)
--------------------------------------------------------------------------------------------
Net decrease (35,608) $ (1,227,125) (51,225) $ (1,799,240)
============================================================================================
* Class B shares converted to Class A shares on November 10, 2014.
** Class Z shares converted to Class Y shares on August 7, 2015.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Annual Report | 10/31/15
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 36.47 $ 34.35 $ 27.96 $ 26.19 $ 23.92
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.68(a) $ 0.96 $ 0.75 $ 1.05 $ 0.48
Net realized and unrealized gain (loss) on investments 1.16 3.11 6.53 1.56 2.20
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.84 $ 4.07 $ 7.28 $ 2.61 $ 2.68
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.75) $ (0.80) $ (0.89) $ (0.84) $ (0.41)
Net realized gain (3.15) (1.15) -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (3.90) $ (1.95) $ (0.89) $ (0.84) $ (0.41)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.06) $ 2.12 $ 6.39 $ 1.77 $ 2.27
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.41 $ 36.47 $ 34.35 $ 27.96 $ 26.19
===========================================================================================================================
Total return* 5.30% 12.33% 26.52% 10.09% 11.26%
Ratio of net expenses to average net assets 1.06% 1.09% 1.10% 1.14% 1.15%
Ratio of net investment income (loss) to average net assets 1.99% 2.56% 2.39% 3.86% 1.78%
Portfolio turnover rate 40% 29% 26% 49% 24%
Net assets, end of period (in thousands) $732,397 $769,869 $826,039 $679,254 $630,087
===========================================================================================================================
* 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.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/15 29
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 36.03 $ 33.94 $ 27.64 $ 25.91 $ 23.66
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.42(a) $ 0.62 $ 0.47 $ 0.84 $ 0.27
Net realized and unrealized gain (loss) on investments 1.13 3.17 6.50 1.54 2.20
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.55 $ 3.79 $ 6.97 $ 2.38 $ 2.47
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.52) $ (0.55) $ (0.67) $ (0.65) $ (0.22)
Net realized gain (3.15) (1.15) -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (3.67) $ (1.70) $ (0.67) $ (0.65) $ (0.22)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.12) $ 2.09 $ 6.30 $ 1.73 $ 2.25
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.91 $ 36.03 $ 33.94 $ 27.64 $ 25.91
===========================================================================================================================
Total return* 4.49% 11.57% 25.61% 9.26% 10.45%
Ratio of net expenses to average net assets 1.80% 1.80% 1.84% 1.86% 1.91%
Ratio of net investment income (loss) to average net assets 1.24% 1.83% 1.62% 3.13% 1.02%
Portfolio turnover rate 40% 29% 26% 49% 24%
Net assets, end of period (in thousands) $116,090 $115,762 $104,890 $77,219 $70,683
===========================================================================================================================
* 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.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Annual Report | 10/31/15
-------------------------------------------------------------------------------------
Year Year
Ended Ended 12/20/12
10/31/15 10/31/14 to 10/31/13
-------------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 36.52 $ 34.38 $ 28.30
-------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.80(b) $ 0.96 $ 0.03
Net realized and unrealized gain (loss)
on investments 1.17 3.27 6.63
-------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations $ 1.97 $ 4.23 $ 6.66
-------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.90) $ (0.94) $ (0.58)
Net realized gain (3.15) (1.15) --
-------------------------------------------------------------------------------------
Total distributions $ (4.05) $ (2.09) $ (0.58)
-------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.08) $ 2.14 $ 6.08
-------------------------------------------------------------------------------------
Net asset value, end of period $ 34.44 $ 36.52 $ 34.38
=====================================================================================
Total return* 5.67% 12.82% 23.72%(a)
Ratio of net expenses to average net assets 0.67% 0.69% 0.66%**
Ratio of net investment income (loss) to
average net assets 2.32% 2.24% 1.84%**
Portfolio turnover rate 40% 29% 26%
Net assets, end of period (in thousands) $20,908 $10,849 $ 117
=====================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Not annualized.
(b) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/15 31
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 36.88 $ 34.71 $ 28.24 $ 26.45 $ 24.14
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.57(a) $ 0.88 $ 0.72 $ 1.03 $ 0.36
Net realized and unrealized gain (loss) on investments 1.16 3.11 6.54 1.52 2.28
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.73 $ 3.99 $ 7.26 $ 2.55 $ 2.64
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.63) $ (0.67) $ (0.79) $ (0.76) $ (0.33)
Net realized gain (3.15) (1.15) -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (3.78) $ (1.82) $ (0.79) $ (0.76) $ (0.33)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.05) $ 2.17 $ 6.47 $ 1.79 $ 2.31
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.83 $ 36.88 $ 34.71 $ 28.24 $ 26.45
===========================================================================================================================
Total return* 4.90% 11.95% 26.13% 9.76% 10.96%
Ratio of net expenses to average net assets 1.41% 1.43% 1.41% 1.41% 1.48%
Ratio of net investment income (loss) to average net assets 1.64% 2.22% 2.09% 3.62% 1.46%
Portfolio turnover rate 40% 29% 26% 49% 24%
Net assets, end of period (in thousands) $75,876 $79,042 $85,986 $79,557 $78,159
===========================================================================================================================
* 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.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Annual Report | 10/31/15
---------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 36.77 $ 34.62 $ 28.17 $ 26.38 $ 24.09
---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.78(a) $ 0.98 $ 0.78 $ 1.05 $ 0.44
Net realized and unrealized gain (loss) on investments 1.16 3.23 6.67 1.67 2.37
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 1.94 $ 4.21 $ 7.45 $ 2.72 $ 2.81
---------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.85) $ (0.91) $ (1.00) $ (0.93) $ (0.52)
Net realized gain (3.15) (1.15) -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total distributions $ (4.00) $ (2.06) $ (1.00) $ (0.93) $ (0.52)
---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (2.06) $ 2.15 $ 6.45 $ 1.79 $ 2.29
---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.71 $ 36.77 $ 34.62 $ 28.17 $ 26.38
===========================================================================================================================
Total return* 5.56% 12.67% 26.98% 10.47% 11.73%
Ratio of net expenses to average net assets 0.78% 0.79% 0.76% 0.77% 0.75%
Ratio of net investment income (loss) to average net assets 2.26% 2.85% 2.68% 4.20% 2.16%
Portfolio turnover rate 40% 29% 26% 49% 24%
Net assets, end of period (in thousands) $527,305 $510,416 $448,509 $322,567 $238,647
===========================================================================================================================
* 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.
(a) The per share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/15 33
Notes to Financial Statements | 10/31/15
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 five classes of shares designated as Class A, Class C, Class K,
Class R and Class Y shares. Class B shares converted to Class A shares as of the
close of business on November 10, 2014. Class Z shares were converted to Class Y
shares as of the close of business on August 7, 2015. Each class of shares
represents an interest in the same portfolio of investments of the Fund and has
identical rights (based on relative net asset values) to assets and liquidation
proceeds. Share classes can bear different rates of class-specific fees and
expenses such as transfer agent and distribution fees. Differences in class-
specific fees and expenses will result in differences in net investment income
and, therefore, the payment of different dividends from net investment income
earned by each class. The Amended and Restated Declaration of Trust of the Fund
gives the Board of Trustees the flexibility to specify either per-share voting
or dollar-weighted voting when submitting matters for shareholder approval.
Under per-share voting, each share of a class of the Fund is entitled to one
vote. Under dollar-weighted voting, a shareholder's voting power is determined
not by the number of shares owned, but by the dollar value of the shares on the
record date. Each share class has exclusive voting rights with respect to
matters affecting only that class, including with respect to the distribution
plan for that class. There is no distribution plan for Class K or Class Y
shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and 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:
34 Pioneer Equity Income Fund | Annual Report | 10/31/15
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities that have traded on an exchange
are valued 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. Shares of money market
mutual funds are valued at such funds' net asset value. Cash may include
overnight time deposits at approved financial institutions.
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 October 31, 2015, 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 | Annual Report | 10/31/15 35
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no federal income tax provision is required. As
of October 31, 2015, 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. At
October 31, 2015, the Fund reclassified $267,833 to decrease undistributed
net investment income and $267,833 to increase accumulated net realized
gain on investments to reflect permanent book/tax differences. These
adjustments have no impact on net assets or the results of operations.
The tax character of distributions during the year ended October 31, 2015,
and October 31, 2014, was as follows:
---------------------------------------------------------------------------
2015 2014
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 33,166,428 $34,882,719
Long-term capital gain 128,314,155 49,279,841
---------------------------------------------------------------------------
Total $161,480,583 $84,162,560
===========================================================================
36 Pioneer Equity Income Fund | Annual Report | 10/31/15
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2015:
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,546,368
Undistributed long term capital gain 110,273,182
Net unrealized appreciation 386,959,818
---------------------------------------------------------------------------
Total $498,779,368
===========================================================================
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.
D. 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 $77,483 in underwriting commissions on the sale of
Class A shares during the year ended October 31, 2015.
E. 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 C and Class R shares of the Fund,
respectively (see Note 4). Class K and Class Y shares do not pay
distribution fees. All expenses and fees paid to the Fund's transfer agent,
for its services are allocated among the classes of shares based on the
number of accounts in each class and the ratable allocation of related
out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C, Class K, Class R and Class
Y shares can reflect different transfer agent and distribution expense
rates.
Pioneer Equity Income Fund | Annual Report | 10/31/15 37
F. 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.
G. 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 contract is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar
(see Note 8).
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 year ended October 31, 2015, 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
$72,818, in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 2015.
3. Transfer Agent
Pioneer Investment Management Shareholder Services, Inc. (PIMSS), a wholly owned
indirect subsidiary of UniCredit, provided substantially all transfer agent and
shareowner services to the Fund at negotiated rates.
In addition, the Fund reimbursed 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.
38 Pioneer Equity Income Fund | Annual Report | 10/31/15
For the year ended October 31, 2015, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 662,235
Class B 607
Class C 118,250
Class K 396
Class R 187,800
Class Y 621,602
Class Z 1,759
--------------------------------------------------------------------------------
Total $1,592,649
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $394,079 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at October 31, 2015.
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 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 C shares. The fee for Class C
shares consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class C shares. 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 $28,948 in distribution
fees payable to PFD at October 31, 2015.
The Fund also has adopted a separate service plan for Class R shares (Service
Plan). The Service Plan authorizes the Fund to pay securities dealers, plan
administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans.
In addition, redemptions of each class of shares (except Class K, Class R and
Class Y shares) may be subject to a contingent deferred sales charge (CDSC). A
CDSC of 1.00% may be imposed on redemptions of certain net asset value purchases
of Class A shares within 12 months of purchase. Redemptions of Class C shares
within 12 months of purchase are subject to a CDSC of 1.00%, based on the lower
of cost or market value of shares being redeemed. Shares
Pioneer Equity Income Fund | Annual Report | 10/31/15 39
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 or
Class Y shares. Proceeds from the CDSCs are paid to PFD. For the year ended
October 31, 2015, CDSCs in the amount of $5,329 were paid to PFD.
5. Expense Offset Arrangements
The Fund 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 year ended October 31, 2015, 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 in effect until June 9, 2015, was in the amount of $215 million.
As of June 9, 2015, 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 0.85% on an annualized basis, or
the Alternate Base Rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the Federal Funds Rate on the borrowing date and (c) 2% plus the overnight
Eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the year ended October 31, 2015, the Fund had no borrowings under
the credit facility.
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 year ended October 31, 2015:
--------------------------------------------------------------------------------------------------------------
Beginning Corporate
Balance Purchases Sales Actions Ending Dividend Realized
Affiliates (shares) (shares) (shares) (shares) (shares) Income Value Gain
--------------------------------------------------------------------------------------------------------------
The Gorman-
Rupp Co. 1,433,678 -- (70,315) -- 1,363,363 $552,377 $38,978,548 $1,843,271
40 Pioneer Equity Income Fund | Annual Report | 10/31/15
8. Forward Foreign Currency Contracts
During the year ended October 31, 2015, the Fund had entered into various
forward foreign currency contracts that obligate the Fund to deliver or take
delivery of currencies at specified future maturity dates. Alternatively, prior
to the settlement date of a forward foreign currency contract, the Fund may
close out such contract by entering into an offsetting contract. The average
value of contracts open during the year ended October 31, 2015 was $788,895.
There were no open forward foreign currency contracts at October 31, 2015.
9. Additional Disclosures about Derivative Instruments and Hedging Activities:
The Fund's use of derivatives subjects it to the following risks:
Interest rate risk relates to the fluctuations in the value of interest-bearing
securities due to changes in the prevailing levels of market interest rates.
Credit risk relates to the ability of the issuer of a financial instrument to
make further principal or interest payments on an obligation or commitment that
it has to the Fund.
Foreign exchange rate risk relates to fluctuations in the value of an asset or
liability due to changes in currency exchange rates.
Equity risk relates to the fluctuations in the value of financial instruments as
a result of changes in market prices (other than those arising from interest
rate risk or foreign exchange risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments
traded in a market or market segment.
Commodity risk relates to the risk that the value of a commodity or commodity
index will fluctuate based on increases or decreases in the commodities market
and factors specific to a particular industry or commodity.
The effect of derivative instruments (not considered to be hedging instruments
for accounting disclosure purposes) on the Statement of Operations by risk
exposure at October 31, 2015 was as follows:
-------------------------------------------------------------------------------------
Statement of Operations
Foreign
Interest Credit Exchange Equity Commodity
Rate Risk Risk Risk Risk Risk
-------------------------------------------------------------------------------------
Net realized gain (loss) on
Forward foreign
currency contracts $ -- $ -- $(139,669) $ -- $ --
-------------------------------------------------------------------------------------
Total Value $ -- $ -- $(139,669) $ -- $ --
=====================================================================================
Pioneer Equity Income Fund | Annual Report | 10/31/15 41
10. Conversion of Class B and Class Z Shares
As of the close of business on November 10, 2014, all outstanding Class B shares
of the Fund were converted to Class A shares.
As of the close of business on August 7, 2015, all outstanding Class Z shares of
the Fund were converted to Class Y shares.
42 Pioneer Equity Income Fund | Annual Report | 10/31/15
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of Pioneer Equity Income Fund:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Equity Income Fund as of October 31,
2015, and the related statement of operations for the year then ended and the
statements of changes in net assets and the financial highlights for each of the
two years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights for the years ended October 31,
2013, 2012, and 2011 were audited by other auditors. Those auditors expressed an
unqualified opinion on those financial statements and financial highlights in
their report dated December 23, 2013.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2015, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Equity Income Fund as of October 31, 2015, and the results of its
operations for the year then ended, and the changes in its net assets and the
financial highlights for each of the two years in the period then ended, in
conformity with accounting principles generally accepted in the United States of
America.
/s/ Deloiette & Touche LLP
Boston, Massachusetts
December 23, 2015
Pioneer Equity Income Fund | Annual Report | 10/31/15 43
ADDITIONAL INFORMATION (unaudited)
For the year ended October 31, 2015, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax
Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate up to
the maximum amount of such dividends allowable under the Act, as taxed at a
maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2015 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 100%.
PIM, the Fund's investment adviser, is currently an indirect, wholly owned
subsidiary of UniCredit. On November 11, 2015, UniCredit announced that it
signed a binding master agreement with Banco Santander and affiliates of Warburg
Pincus and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as previously announced by UniCredit, will establish a holding
company, with the name Pioneer Investments, to be owned by UniCredit (50%) and
the Private Equity Firms (50% between them). The holding company will control
Pioneer's U.S. operations, including the Adviser. The holding company also will
own 66.7% of Pioneer's and SAM's combined operations outside the U.S., while
Banco Santander will own directly the remaining 33.3% stake. The closing of the
Transaction is expected to happen in 2016, subject to certain regulatory and
other approvals.
Under the Investment Company Act of 1940, completion of the Transaction will
cause the Fund's current investment advisory agreement with PIM to terminate.
Accordingly, the Fund's Board of Trustees will be asked to approve a new
investment advisory agreement. If approved by the Board, the Fund's new
investment advisory agreement will be submitted to the shareholders of the Fund
for their approval.
Subsequent Event (unaudited)
Effective November 2, 2015, Boston Financial Data Service became the transfer
agent to the Fund at negotiated rates.
44 Pioneer Equity Income Fund | Annual Report | 10/31/15
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 January 2015 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2015 and July
2015. Supplemental contract review materials were provided to the Trustees in
September 2015. In addition, the Trustees reviewed and discussed the Fund's
performance at regularly scheduled meetings throughout the year and took into
account other information related to the Fund provided to the Trustees at
regularly scheduled meetings in connection with the review of the Fund's
investment advisory agreement.
In March 2015, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In July 2015,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in September
2015.
At a meeting held on September 15, 2015, 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 approving the
renewal of the investment advisory agreement, the Trustees considered various
factors that they determined were relevant, including the factors described
below. The Trustees did not identify any single factor as the controlling factor
in determining to approve the renewal of the agreement.
Pioneer Equity Income Fund | Annual Report | 10/31/15 45
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 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 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
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
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 Independent Trustees
for this purpose using data provided by Strategic Insight
46 Pioneer Equity Income Fund | Annual Report | 10/31/15
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year 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
expense ratio of the Fund's Class A shares for the most recent fiscal year was
in the third quintile relative to its Morningstar peer group and in the third
quintile relative its Strategic Insight peer group, in each case for the
comparable period. The Trustees considered the impact of transfer agency,
sub-transfer agency, and other non-management fee expenses on the expense ratios
of the Fund. The Trustees noted that they separately review the Fund's transfer
agency, sub-transfer agency and intermediary arrangements.
The Trustees reviewed management fees charged by 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
to the Fund.
Pioneer Equity Income Fund | Annual Report | 10/31/15 47
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 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, 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 including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
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. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its
48 Pioneer Equity Income Fund | Annual Report | 10/31/15
relationship with the Funds were reasonable and their consideration of the
advisory agreement between the Fund and PIM and the fees thereunder were
unaffected by Pioneer's possible receipt of any such intangible benefits.
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 | Annual Report | 10/31/15 49
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a trustee of
each of the 50 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
50 Pioneer Equity Income Fund | Annual Report | 10/31/15
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (65) Trustee since 2006. Private investor (2004 - 2008 and 2013 - present); Director, Broadridge Financial
Chairman of the Board Serves until a Chairman (2008 - 2013) and Chief Executive Officer Solutions, Inc. (investor
and Trustee successor trustee (2008 - 2012), Quadriserv, Inc. (technology communications and securities
is elected or products for securities lending industry); and processing provider for
earlier retirement Senior Executive Vice President, The Bank of New financial services industry)
or removal. York (financial and securities services) (1986 - (2009 - present); Director,
2004) Quadriserv, Inc. (2005 -
2013); and Commissioner, New
Jersey State Civil Service
Commission (2011 - present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (71) Trustee since 2005. Managing Partner, Federal City Capital Advisors Director of New York Mortgage
Trustee Serves until a (corporate advisory services company) (1997 - 2004 Trust (publicly-traded
successor trustee and 2008 - present); Interim Chief Executive mortgage REIT) (2004 - 2009,
is elected or Officer, Oxford Analytica, Inc. (privately-held 2012 - present); Director of
earlier retirement research and consulting company) (2010); Executive The Swiss Helvetia Fund, Inc.
or removal. Vice President and Chief Financial Officer, (closed-end fund) (2010 -
I-trax, Inc. (publicly traded health care services present); Director of Oxford
company) (2004 - 2007); and Executive Vice Analytica, Inc. (2008 -
President and Chief Financial Officer, Pedestal present); and Director of
Inc. (internet-based mortgage trading company) Enterprise Community
(2000 - 2002); Private consultant (1995-1997), Investment, Inc.
Managing Director, Lehman Brothers (investment (privately-held affordable
banking firm) (1992-1995); and Executive, The housing finance company) (1985
World Bank (1979-1992) - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (71) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon Institutional
Trustee Serves until a Economy, Harvard University (1972 - present) Funds Investment Trust and
successor trustee Mellon Institutional Funds
is elected or Master Portfolio (oversaw 17
earlier retirement portfolios in fund complex)
or removal. (1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/15 51
Independent Trustees (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (68) Trustee since 1990. Founding Director, Vice President and Corporate None
Trustee Serves until a Secretary, The Winthrop Group, Inc. (consulting
successor trustee firm) (1982 - present); Desautels Faculty of
is elected or Management, McGill University (1999 - present);
earlier retirement and Manager of Research Operations and
or removal. Organizational Learning, Xerox PARC, Xerox's
advance research center (1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (67) Trustee since 1990. President and Chief Executive Officer, Newbury, Director of New America High
Trustee Serves until a Piret & Company, Inc. (investment banking firm) Income Fund, Inc. (closed-end
successor trustee (1981 - present) investment company) (2004 -
is elected or present); and Member, Board
earlier retirement of Governors, Investment
or removal. Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (68) Trustee since 2014. Consultant (investment company services) (2012 - None
Trustee Serves until a present); Executive Vice President, BNY Mellon
successor trustee (financial and investment company services) (1969
is elected or - 2012); Director, BNY International Financing
earlier retirement Corp. (financial services) (2002 - 2012); and
or removal. Director, Mellon Overseas Investment Corp.
(financial services) (2009 - 2012)
------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Equity Income Fund | Annual Report | 10/31/15
Interested Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (57)* Trustee since 2014. Director and Executive Vice President (since 2008) None
Trustee Serves until a and Chief Investment Officer, U.S. (since 2010) of
successor trustee PIM-USA; Executive Vice President of Pioneer
is elected or (since 2008); Executive Vice President of Pioneer
earlier retirement Institutional Asset Management, Inc. (since 2009);
or removal. and Portfolio Manager of Pioneer (since 1999)
------------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
Pioneer Equity Income Fund | Annual Report | 10/31/15 53
Advisory Trustee
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lorraine H. Monchak (59)** Advisory Trustee Chief Investment Officer, 1199 SEIU Funds Trustee of Pioneer
Advisory Trustee since 2014. (healthcare workers union pension funds) (2001 - closed-end investment
present); Vice President - International companies (5 portfolios)
Investments Group, American International Group, (Sept. 2015 - present)
Inc. (insurance company) (1993 - 2001); Vice
President Corporate Finance and Treasury Group,
Citibank, N.A.(1980 - 1986 and 1990 - 1993); Vice
President - Asset/Liability Management Group,
Federal Farm Funding Corporation
(government-sponsored issuer of debt securities)
(1988 - 1990); Mortgage Strategies Group, Shearson
Lehman Hutton, Inc. (investment bank) (1987 -
1988); and Mortgage Strategies Group, Drexel
Burnham Lambert, Ltd. (investment bank) (1986 -
1987)
------------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
54 Pioneer Equity Income Fund | Annual Report | 10/31/15
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (53) Since 2014. Serves Chair, Director, CEO and President of Pioneer Trustee of Pioneer
President and Chief at the discretion Investment Management-USA (since September 2014); Closed-End Investment
Executive Officer of the Board. Chair, Director, CEO and President of Pioneer Companies (5 Portfolios)
Investment Management, Inc. (since September (Sept. 2015 - Present)
2014); Chair, Director, CEO and President of
Pioneer Funds Distributor, Inc. (since September
2014); Chair, Director, CEO and President of
Pioneer Institutional Asset Management, Inc.
(since September 2014); and Chair, Director, and
CEO of Pioneer Investment Management Shareholder
Services, Inc. (since September 2014); Managing
Director, Morgan Stanley Investment Management
(2010 - 2013); and Director of Institutional
Business, CEO of International, Eaton Vance
Management (2005 - 2010)
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (50) Since 2003. Serves Vice President and Associate General Counsel of None
Secretary and Chief at the discretion Pioneer since January 2008; Secretary and Chief
Legal Officer of the Board. Legal Officer of all of the Pioneer Funds since
June 2010; Assistant Secretary of all of the
Pioneer Funds from September 2003 to May 2010; and
Vice President and Senior Counsel of Pioneer from
July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (54) Since 2010. Serves Fund Governance Director of Pioneer since December None
Assistant Secretary at the discretion 2006 and Assistant Secretary of all the Pioneer
of the Board. Funds since June 2010; Manager - Fund Governance
of Pioneer from December 2003 to November 2006;
and Senior Paralegal of Pioneer from January 2000
to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (52) Since 2010. Serves Senior Counsel of Pioneer since May 2013 and None
Assistant Secretary at the discretion Assistant Secretary of all the Pioneer Funds since
of the Board. June 2010; and Counsel of Pioneer from June 2007
to May 2013
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (55) Since 2008. Serves Vice President - Fund Treasury of Pioneer; None
Treasurer and Chief at the discretion Treasurer of all of the Pioneer Funds since March
Financial and of the Board. 2008; Deputy Treasurer of Pioneer from March 2004
Accounting Officer to February 2008; and Assistant Treasurer of all
of the Pioneer Funds from March 2004 to February
2008
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/15 55
Fund Officers (continued)
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (50) Since 2000. Serves Director - Fund Treasury of Pioneer; and Assistant None
Assistant Treasurer at the discretion Treasurer of all of the Pioneer Funds
of the Board.
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (57) Since 2002. Serves Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer at the discretion Pioneer; and Assistant Treasurer of all of the
of the Board. Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (35) Since 2009. Serves Fund Administration Manager - Fund Treasury of None
Assistant Treasurer at the discretion Pioneer since November 2008; Assistant Treasurer
of the Board. of all of the Pioneer Funds since January 2009;
and Client Service Manager - Institutional
Investor Services at State Street Bank from March
2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (63) Since 2010. Serves Chief Compliance Officer of Pioneer and of all the None
Chief Compliance Officer at the discretion Pioneer Funds since March 2010; Chief Compliance
of the Board. Officer of Pioneer Institutional Asset Management,
Inc. since January 2012; Chief Compliance Officer
of Vanderbilt Capital Advisors, LLC since July
2012: Director of Adviser and Portfolio Compliance
at Pioneer since October 2005; and Senior
Compliance Officer for Columbia Management
Advisers, Inc. from October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (44) Since 2006. Serves Director - Transfer Agency Compliance of Pioneer None
Anti-Money Laundering at the discretion and Anti-Money Laundering Officer of all the
Officer of the Board. Pioneer Funds since 2006
------------------------------------------------------------------------------------------------------------------------------------
56 Pioneer Equity Income Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/15 57
This page for your notes.
58 Pioneer Equity Income Fund | Annual Report | 10/31/15
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/15 59
This page for your notes.
60 Pioneer Equity Income Fund | Annual Report | 10/31/15
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Pioneer Funds
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2015 Pioneer Investments 19439-09-1215
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.
The audit fees for the Fund were $25,500
payable to Deloitte & Touche LLP for the year ended
October 31, 2015 and $25,241 for the year ended October 31, 2014.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
There were no audit-related services in 2015 or 2014.
(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.
The tax fees for the Fund were $8,750
payable to Deloitte & Touche LLP for the year ended
October 31, 2015 and $8,750 for the year ended October 31, 2014.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no other fees in 2015 or 2014.
(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.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Fund's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Fund. For the
years ended October 31, 2015 and 2014, there were no
services provided to an affiliate that required the
Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund were $8,750
payable to Deloitte & Touche LLP for the year ended
October 31, 2015 and $8,750 for the year ended October 31, 2014.
(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/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 30, 2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 30, 2015
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 30, 2015
* Print the name and title of each signing officer under his or her signature.