OMB APPROVAL
OMB Number: 3235-0570
Expires: January 31, 2017
Estimated average burden
hours per response.....20.6
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, 2015 through April 30, 2016
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Equity
Income Fund
--------------------------------------------------------------------------------
Semiannual Report | April 30, 2016
--------------------------------------------------------------------------------
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 11
Prices and Distributions 12
Performance Update 13
Comparing Ongoing Fund Expenses 18
Schedule of Investments 20
Financial Statements 27
Notes to Financial Statements 36
Trustees, Officers and Service Providers 44
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 1
President's Letter
Dear Shareowner,
Global financial markets began 2016 on shaky footing, delivering the kind of
volatility that challenged investors in 2015. US equities fell by 10% through
the first six weeks of the year, only to recover the losses by the end of the
first quarter. Fixed-income markets were also acutely affected, with concerns
about falling oil prices and a weak global economy leading to a sell-off in
credit-sensitive sectors, especially high-yield bonds, as investors fled to the
perceived safety of government bonds. Like equities, credit markets recovered
much of their lost ground by the end of the first quarter.
Midway through the first quarter, market sentiment shifted, as expectations grew
that major central banks would extend their accommodative monetary policies in
the hopes of driving economic growth. The US Federal Reserve (the Fed) backed
off plans to raise interest rates four times in 2016, and the European Central
Bank announced a more comprehensive asset-purchasing program in the hopes of
encouraging lending, and boosting both inflation and economic growth. The Bank
of Japan also followed a monetary easing path, announcing negative interest
rates in January.
As 2016 moves along, we continue to see central bank policies as generally
supportive of the US economy - for which we maintain an expectation of modest
growth this year - against an overall global economic backdrop that remains
unsettled and points towards generally lower growth. Economies around the world
in both developed and emerging markets are experiencing deep structural changes.
Current challenges include incomplete debt deleveraging in both emerging and
developed markets, where debt levels continue to grow, the transition of many
emerging markets economies from export/investment-driven models to more domestic
demand-driven models, and aging populations, which are reducing productivity and
limiting economic growth potential (primarily in the developed markets but also
in emerging markets such as China). Geopolitical instability on many fronts, the
rising risk of policy mistakes, and market liquidity issues combine to increase
the possibility of sharp swings in asset values. Meanwhile, in the US, as always
in a presidential election year, the political rhetoric of 2016 has the
potential to impact domestic sectors such as health care.
Throughout Pioneer's history, we have believed in the importance of active
management. During periods of market volatility, we view the value of active
management as even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. We believe our shareowners
can benefit from the experience and tenure of our investment teams as well as
the insights generated from our extensive research process.
2 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
April 30, 2016
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 3
Portfolio Management Discussion | 4/30/16
In the following interview, John Carey, Executive Vice President and a portfolio
manager at Pioneer Investments, discusses the investment environment during the
six-month period ended April 30, 2016, 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 did Pioneer Equity Income Fund perform during the six-month period
ended April 30, 2016?
A Pioneer Equity Income Fund's Class A shares returned 4.31% at net asset
value during the six-month period ended April 30, 2016, while the Fund's
benchmark, the Russell 1000 Value Index, returned 1.93%. During the same
period, the average return of the 532 mutual funds in Lipper's Equity
Income Funds category was 1.52%, and the average return of the 1,442 mutual
funds in Morningstar's Large Value Funds category was 0.34%.
Q How would you describe the market environment for equities during the
six-month period ended April 30, 2016, particularly for the types of
equities deemed appropriate for the Fund?
A The six-month period ended April 30, 2016, saw, first, a steep decline in
US stocks as measured by the Fund's benchmark, the Russell 1000 Value Index
(the Russell Index), up until the middle of February 2016, then a strong
recovery almost right through the end of April. The graph of the market
over that period, as measured by the Russell Index, shows a fairly
symmetrical, canyon-like shape, with no net share-price gain, but merely a
regaining, by period end, of the Russell Index's approximate 1000 starting
point at the outset of the six-month period, on October 31, 2015. The
Russell Index's total return of 1.93% for the six-month period came
entirely from dividend income. For Pioneer Equity Income Fund's Class A
shares, which returned 4.31% at net asset value, dividends* were similarly
important, though the Fund's return was supplemented by some modest capital
appreciation.
What led to that rather peculiar, "round-trip" experience? Throughout the
fall and early winter, investors fretted over the falling price of oil and
other commodities, weakening corporate earnings and economic numbers, a
reported economic slowdown in China, and out-and-out distress in Brazil,
among other countries. Disappointing capital spending and consumer activity
in the US, piling-up inventories, and a Federal Reserve (Fed) that seemed
determined to raise interest rates in spite of the signs of possible
* Dividends are not guaranteed.
4 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
recession also helped drive market volatility during the period. Following
its move to raise interest rates, even though an ever-so-mild one (0.25%),
on December 16, the Fed watched with growing concern as the bottom seemed
to fall out of the markets and by January and into February was already
backpedaling and sounding more tentative with respect to its further rate-
hiking plans.
Meanwhile, the strengthening US dollar, set on its upward course by
expectations of higher interest rates, had contributed to a plunge in the
commodities markets and widespread concern in the natural-resources-
dependent emerging markets in particular. In the middle of February, just
when the doomsayers had convinced many that there was no downward limit,
the markets snapped back as investors finally absorbed and acknowledged the
likelihood that the Fed would not raise rates dramatically, if much further
at all. Commodities, including oil, proved not to have limitless downside,
and the US dollar proved not to have limitless upside. In addition, Chinese
officials sounded more determined about stimulating that nation's economy,
and even Europe appeared to have some prospect for resumed economic growth.
As investors came back to stocks (and bonds, too) in a hurry, the most
pronounced gains were in the value names, the more cyclical and
economically-sensitive companies whose share prices had been the most
battered about during the previous months of economic pessimism. By the end
of the six-month period, the Russell Index had achieved, to use an
expression from the sport of rowing, an open-water lead over the Russell
1000 Growth Index.
For the Pioneer Equity Income Fund and its managers, the period was trying,
testing our ability to stay invested and to remain focused on the
portfolio's universe of value stocks. Ultimately, hanging on proved to be
the key to solid performance, in that it enabled the Fund to take part in
the market recovery and end the period with an overall gain. The Fund's
portfolio of good-quality, dividend-paying stocks did not decline as much
as the market during the downturn. The maximum loss for the portfolio on a
total-return basis from October 31, 2015, was 9.97% through January 21,
2016; for the Russell Index, on the other hand, the maximum loss on a
total-return basis from October 31, 2015, was 12.24% through February 11,
2016. The Fund had in fact already regained a little ground by February,
and as the market continued moving higher through nearly the end of April,
the Fund rose alongside it, lagging the market advance by a little less
than 1% from February 11 through the end of the period.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 5
Q The Fund outperformed the Russell Index benchmark during the six-month
period ended April 30, 2016. Could you please discuss the major reasons for
the Fund's benchmark-relative outperformance?
A Sector allocation decisions as well as stock selection results accounted
for the positive performance of the Fund relative to the Russell Index
benchmark over the six-month period. With regard to sector allocation, the
Fund was overweight the above-average-performing consumer staples,
materials, and utilities sectors during the period, and underweight the
below-average-performing energy, financials, and information technology
sectors. In addition, while the Fund was overweight the below-average-
performing consumer discretionary sector, our superior stock selection
results within the sector more than fully offset that negative effect. In
energy, though, where the portfolio was correctly underweight, the Fund's
stock selections fared worse than the overall sector in the Russell Index;
energy, in fact, was the sector that showed the most negative benchmark-
relative performance attribution for the Fund during the six-month period.
Next worst for the Fund's benchmark-relative returns was industrials, where
the portfolio was both underweight the above-average-performing sector and
underperformed the overall sector on a stock-selection basis. An
underweight in the very strong-performing telecommunication services sector
also detracted from the Fund's benchmark-relative returns.
With regard to individual stocks, the Fund's holdings experienced a
meaningful amount of beneficial merger-and-acquisition activity during the
period. Among portfolio holdings receiving premium acquisition offers from
other companies during the six months were Valspar (materials), Biomed
Realty Trust (financials), Syngenta (materials), Empire District Electric
(utilities), and Questar (utilities). In addition, Campbell Soup (consumer
staples) showed strong performance as investors made favorable assessments
of new management initiatives. Shares of NVIDIA (information technology),
meanwhile, spurted higher as demand for its specialty semiconductor chips
proved robust. In utilities, holdings of Alliant Energy, Consolidated
Edison, Westar, and American Electric Power all showed positive performance
attribution for the Fund as nervous investors flocked to regulated
utilities with steady dividends.
On the negative side, a couple of the Fund's energy holdings - Marathon
Petroleum and Anadarko Petroleum - performed poorly, as investors worried,
in the case of the former, about the potential for refining margins as oil
prices, after falling, shot higher, and, in the case of the latter, about
how quickly the oil-and-gas exploration-and-production company could return
to profitability.
6 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
The Fed's apparent hesitancy to raise interest rates led investors to back
off from names in the financials sector that were seen as potential
beneficiaries of higher rates. In the case of the portfolio, that led to
weakness in the share prices of overweight holdings in State Street and
Lincoln National. In consumer staples, a position in Mondelez International
hurt relative results as investors grew concerned over the approximately
three-quarters of the company's sales that are outside the US, including in
Latin American, Asian, and European countries experiencing slower
economies.
Q What changes did you make to the Fund's portfolio during the six-month
period ended April 30, 2016?
A We added slightly more than 20 positions to the portfolio during the six-
month period, and liquidated almost the same number, for no meaningful net
change in the overall number of portfolio holdings. In a number of cases,
new entries were names the Fund had owned previously and sold.
We are always monitoring many more stocks than we own in the portfolio, and
when we see business conditions and company prospects change, we do
occasionally come back to stocks we have liked in the past. New positions
falling in that category during the six-month period included BHP Billiton
(materials), E.I. du Pont de Nemours (materials), Johnson & Johnson (health
care), Hershey Foods (consumer staples), PNC Financial Services
(financials), and ExxonMobil (energy). Other new entries were companies we
had never previously owned in the Fund's portfolio. They included Calavo
Growers (consumer staples), Kaiser Aluminum (materials), Materion
(materials), Southern Copper (materials), and Sun Life Financial
(financials). We are attracted to companies we think have solid business
prospects, capable managements, decent prospects for earnings and cash flow
growth, and the commitment to pay regular dividends.
Among sales from the portfolio over the period were three of the companies
receiving premium acquisition offers (mentioned earlier): Biomed Realty
Trust, Empire District Electric, and Questar. Also sold were stocks we
thought had reached a fair value or that we thought no longer held a
compelling potential for longer-term total return. Included among those two
categories of sales were BorgWarner, Citizens Financial Group, Nordstrom,
Travelers, and New York Community Bank.
Q Did the Fund hold any derivatives during the six-month period ended April
30, 2016?
A No. We held no derivative positions in the Fund's portfolio during the
period.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 7
Q The Fund typically places an emphasis on dividend-paying stocks. Would you
describe the environment for dividends as positive or negative during the
six-month periods ended April 30, 2016?
A Generally positive, but mixed with some occasional unease among investors
about the potential competition from the higher coupons available in the
bond market that will come with rising interest rates. Overall, the
dividend-generative industries within the broader market produced
creditable returns during the six-month period. Utilities,
telecommunication services, and consumer staples companies were all bright
stars in the tumultuous market firmament. With the sharp turnaround in the
market, though, from the middle of February and the emerging view that the
turnaround might be the harbinger of better economic conditions later in
2016, many commentators began speculating that the Fed would after all
continue raising rates over the next couple of years. So, we shall be
watching interest rates and competing yields among the asset classes that
investors typically compare with stocks. Important to the success of our
investment approach for the Fund in a rising-rate environment will be, we
think, an emphasis on owing shares of companies with good potential to
increase dividend payments over time.
Q What is your outlook for equities as we near the middle of calendar year
2016?
A Currently, much focus is on capital spending. Business outlays for new
plant and equipment have not grown significantly in the past couple of
years and indeed have even shown softness. There may be multiple reasons
for that. Though the "great recession" of 2007-09 is a number of years in
the past, it remains a cautionary tale for managements that struggled
through it and continues to make them cautious. With the current weakness
in many overseas economies, production of goods for export has not been an
expanding priority. Productivity growth has enabled companies to keep up
with growth in domestic demand without greatly enlarging capacity. Finally,
the economy continues to shift towards less capital-intense, service
industries. However, the slowness in capital spending may now be having a
negative effect on productivity; workers need up-to-date and up-to-snuff
equipment to keep producing efficiently and effectively. Capital-spending
plans can also reveal business outlooks. While the stock and bond markets
have shown greater confidence of late in the prospects for the economy, we
would feel more comfortable if we saw "validation" for the market optimism
in more positive business planning by company managements. We also worry
that the concern for cost control and the preference for retention rather
than use of financial resources can have contractionary economic
consequences.
8 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
Other concerns we have are in regard to the world geopolitical situation,
especially in the troubled Middle East, but also in Eastern Europe; the
economic challenges for China, Brazil, India, and Western Europe, among
other areas; the dislocating effects on traditional retailing and media
businesses, among others, resulting from the almost mind-bogglingly fast
transformation of industries by the internet; and uncertainties with
respect to public-policy changes we may see following our national
elections in November.
As always, though, we shall do our best to concentrate on what we think we
can do best; namely, identifying and analyzing individual companies with
the characteristics we believe can make their stocks attractive long-term
investments for the Fund's shareholders.
Thank you as always for your support.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 9
Please refer to the Schedule of Investments on pages 20-26 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
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.
10 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
Portfolio Summary | 4/30/16
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 87.7%
International Common Stocks 7.7%
Depositary Receipts for International Stocks 4.6%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Consumer Staples 16.4%
Financials 13.9%
Materials 13.6%
Health Care 12.0%
Utilities 10.8%
Industrials 10.3%
Consumer Discretionary 8.5%
Energy 8.0%
Information Technology 5.9%
Telecommunication Services 0.6%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. The Valspar Corp. 4.89%
--------------------------------------------------------------------------------
2. The Gorman-Rupp Co. 2.46
--------------------------------------------------------------------------------
3. Becton Dickinson and Co. 2.34
--------------------------------------------------------------------------------
4. Cedar Fair LP 2.18
--------------------------------------------------------------------------------
5. Mondelez International, Inc. 2.11
--------------------------------------------------------------------------------
6. Dr. Pepper Snapple Group, Inc. 2.05
--------------------------------------------------------------------------------
7. Syngenta AG 2.03
--------------------------------------------------------------------------------
8. General Electric Co. 2.02
--------------------------------------------------------------------------------
9. Chevron Corp. 1.96
--------------------------------------------------------------------------------
10. State Street Corp. 1.81
--------------------------------------------------------------------------------
* 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 | Semiannual Report | 4/30/16 11
Prices and Distributions | 4/30/16
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 4/30/16 10/31/15
--------------------------------------------------------------------------------
A $32.89 $34.41
--------------------------------------------------------------------------------
C $32.38 $33.91
--------------------------------------------------------------------------------
K $32.94 $34.44
--------------------------------------------------------------------------------
R $33.34 $34.83
--------------------------------------------------------------------------------
Y $33.21 $34.71
--------------------------------------------------------------------------------
Distributions per Share: 11/1/15-4/30/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.3096 $ -- $2.5838
--------------------------------------------------------------------------------
C $0.1872 $ -- $2.5838
--------------------------------------------------------------------------------
K $0.3536 $ -- $2.5838
--------------------------------------------------------------------------------
R $0.2486 $ -- $2.5838
--------------------------------------------------------------------------------
Y $0.3455 $ -- $2.5838
--------------------------------------------------------------------------------
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 13-17.
12 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
Performance Update | 4/30/16 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Equity Income Fund at public
offering price during the periods shown, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of April 30, 2016)
--------------------------------------------------------------------------------
Net Public Russell
Asset Offering 1000
Value Price Value
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 years 6.61% 5.98% 5.67%
5 years 10.17 8.87 10.13
1 year 5.45 -0.61 -0.40
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.06%
--------------------------------------------------------------------------------
[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
4/06 $ 9,425 $10,000
4/07 $11,429 $11,815
4/08 $10,570 $10,755
4/09 $ 6,743 $ 6,538
4/10 $ 9,037 $ 9,302
4/11 $11,013 $10,720
4/12 $11,261 $10,830
4/13 $13,255 $13,191
4/14 $15,528 $15,948
4/15 $16,946 $17,433
4/16 $17,870 $17,363
Call 1-800-225-6292 or visit us.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 5.75% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 13
Performance Update | 4/30/16 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2016)
--------------------------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 years 5.81% 5.81% 5.67%
5 years 9.36 9.36 10.13
1 year 4.69 4.69 -0.40
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
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
4/06 $10,000 $10,000
4/07 $12,033 $11,815
4/08 $11,044 $10,755
4/09 $ 6,989 $ 6,538
4/10 $ 9,296 $ 9,302
4/11 $11,243 $10,720
4/12 $11,409 $10,830
4/13 $13,332 $13,191
4/14 $15,504 $15,948
4/15 $16,797 $17,433
4/16 $17,584 $17,363
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.
14 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
Performance Update | 4/30/16 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class K shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2016)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 years 6.75% 5.67%
5 years 10.46 10.13
1 year 5.87 -0.40
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.67%
--------------------------------------------------------------------------------
[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
4/06 $10,000 $10,000
4/07 $12,125 $11,815
4/08 $11,214 $10,755
4/09 $ 7,154 $ 6,538
4/10 $ 9,588 $ 9,302
4/11 $11,684 $10,720
4/12 $11,948 $10,830
4/13 $14,085 $13,191
4/14 $16,572 $15,948
4/15 $18,152 $17,433
4/16 $19,218 $17,363
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 | Semiannual Report | 4/30/16 15
Performance Update | 4/30/16 Class R Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class R shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2016)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 years 6.32% 5.67%
5 years 9.80 10.13
1 year 5.09 -0.40
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.41%
--------------------------------------------------------------------------------
[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
4/06 $10,000 $10,000
4/07 $12,100 $11,815
4/08 $11,172 $10,755
4/09 $ 7,112 $ 6,538
4/10 $ 9,514 $ 9,302
4/11 $11,563 $10,720
4/12 $11,787 $10,830
4/13 $13,829 $13,191
4/14 $16,150 $15,948
4/15 $17,559 $17,433
4/16 $18,452 $17,363
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.
16 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
Performance Update | 4/30/16 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of April 30, 2016)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 years 7.01% 5.67%
5 years 10.51 10.13
1 year 5.73 -0.40
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
0.78%
--------------------------------------------------------------------------------
[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
4/06 $5,000,000 $5,000,000
4/07 $6,086,912 $5,907,264
4/08 $5,649,592 $5,377,343
4/09 $3,620,842 $3,269,016
4/10 $4,876,799 $4,651,074
4/11 $5,970,359 $5,359,755
4/12 $6,128,298 $5,414,967
4/13 $7,238,204 $6,595,632
4/14 $8,506,768 $7,973,817
4/15 $9,308,838 $8,716,459
4/16 $9,842,489 $8,681,267
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 | Semiannual Report | 4/30/16 17
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from November 1, 2015, through April 30, 2016.
--------------------------------------------------------------------------------
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 11/1/15
--------------------------------------------------------------------------------
Ending Account Value $1,043.10 $1,039.40 $1,045.10 $1,041.40 $1,044.40
(after expenses) on
4/30/16
--------------------------------------------------------------------------------
Expenses Paid $ 5.28 $ 8.92 $ 3.46 $ 7.16 $ 3.96
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.04%,
1.76%, 0.68% 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 182/366 (to reflect the one-half year period).
18 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on a hypothetical 5% return per year before expenses, reflecting the
period from November 1, 2015, through April 30, 2016.
--------------------------------------------------------------------------------
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 11/1/15
--------------------------------------------------------------------------------
Ending Account Value $1,019.69 $1,016.11 $1,021.48 $1,017.85 $1,020.98
(after expenses) on
4/30/16
--------------------------------------------------------------------------------
Expenses Paid $ 5.22 $ 8.82 $ 3.42 $ 7.07 $ 3.92
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.04%,
1.76%, 0.68%, 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 182/366 (to reflect the one-half year period).
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 19
Schedule of Investments | 4/30/16 (unaudited)
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
COMMON STOCKS -- 99.2%
ENERGY -- 8.0%
Oil & Gas Equipment & Services -- 0.4%
418,400 Frank's International NV* $ 6,966,360
-------------------------------------------------------------------------------------------
Integrated Oil & Gas -- 3.6%
299,731 Chevron Corp. $ 30,626,514
55,000 Exxon Mobil Corp. 4,862,000
277,788 Occidental Petroleum Corp. 21,292,450
--------------
$ 56,780,964
-------------------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.5%
437,472 Anadarko Petroleum Corp. $ 23,081,023
-------------------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 2.5%
426,030 Marathon Petroleum Corp.* $ 16,649,252
273,425 Phillips 66 22,450,927
--------------
$ 39,100,179
--------------
Total Energy $ 125,928,526
-------------------------------------------------------------------------------------------
MATERIALS -- 13.6%
Diversified Chemicals -- 1.1%
132,830 EI du Pont de Nemours & Co. $ 8,754,825
173,802 The Dow Chemical Co. 9,143,723
--------------
$ 17,898,548
-------------------------------------------------------------------------------------------
Specialty Chemicals -- 8.5%
113,247 Celanese Corp. $ 8,006,563
4,755 Givaudan SA 9,367,261
189,317 Johnson Matthey Plc 7,984,122
394,532 Syngenta AG (A.D.R.) 31,787,443
716,600 The Valspar Corp. 76,454,055
--------------
$ 133,599,444
-------------------------------------------------------------------------------------------
Aluminum -- 0.9%
593,708 Alcoa, Inc. $ 6,631,718
72,619 Kaiser Aluminum Corp. 6,886,460
--------------
$ 13,518,178
-------------------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.7%
193,279 BHP Billiton, Ltd. (A.D.R.) $ 6,057,364
237,600 Compass Minerals International, Inc. 17,810,496
224,951 Materion Corp. 6,521,329
180,125 Rio Tinto Plc 6,053,227
216,433 Southern Copper Corp. 6,421,567
--------------
$ 42,863,983
-------------------------------------------------------------------------------------------
Steel -- 0.4%
125,047 Nucor Corp. $ 6,224,840
--------------
Total Materials $ 214,104,993
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
CAPITAL GOODS -- 6.7%
Aerospace & Defense -- 1.0%
125,125 Raytheon Co. $ 15,809,544
-------------------------------------------------------------------------------------------
Industrial Conglomerates -- 2.0%
1,029,984 General Electric Co. $ 31,672,008
-------------------------------------------------------------------------------------------
Industrial Machinery -- 3.0%
39,000 Ingersoll-Rand Plc $ 2,556,060
1,363,363 The Gorman-Rupp Co.+ 38,569,539
177,309 The Timken Co. 6,317,520
--------------
$ 47,443,119
-------------------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.7%
184,056 Wolseley Plc $ 10,273,484
--------------
Total Capital Goods $ 105,198,155
-------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 2.2%
Office Services & Supplies -- 0.6%
192,664 MSA Safety, Inc. $ 9,265,212
-------------------------------------------------------------------------------------------
Diversified Support Services -- 1.3%
290,000 G&K Services, Inc. $ 20,488,500
-------------------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.3%
95,096 Randstad Holding NV $ 5,107,693
--------------
Total Commercial Services & Supplies $ 34,861,405
-------------------------------------------------------------------------------------------
TRANSPORTATION -- 1.4%
Railroads -- 1.4%
145,004 Norfolk Southern Corp. $ 13,066,310
97,059 Union Pacific Corp. 8,466,457
--------------
$ 21,532,767
--------------
Total Transportation $ 21,532,767
-------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.7%
Household Appliances -- 0.7%
380,383 Electrolux AB $ 11,038,159
--------------
Total Consumer Durables & Apparel $ 11,038,159
-------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 4.3%
Hotels, Resorts & Cruise Lines -- 1.6%
590,357 InterContinental Hotels Group Plc $ 23,534,718
60,765 InterContinental Hotels Group Plc (A.D.R.) 2,439,107
--------------
$ 25,973,825
-------------------------------------------------------------------------------------------
Leisure Facilities -- 2.2%
587,087 Cedar Fair LP $ 34,092,142
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 21
Schedule of Investments | 4/30/16 (unaudited) (continued)
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
Restaurants -- 0.5%
48,921 Cracker Barrel Old Country Store, Inc. $ 7,162,524
--------------
Total Consumer Services $ 67,228,491
-------------------------------------------------------------------------------------------
MEDIA -- 3.5%
Broadcasting -- 1.5%
280,000 CBS Corp. (Class B) $ 15,654,800
132,190 Scripps Networks Interactive, Inc. 8,242,046
--------------
$ 23,896,846
-------------------------------------------------------------------------------------------
Movies & Entertainment -- 1.2%
500,000 Regal Entertainment Group $ 10,425,000
100,000 Time Warner, Inc. 7,514,000
--------------
$ 17,939,000
-------------------------------------------------------------------------------------------
Publishing -- 0.8%
114,100 John Wiley & Sons, Inc. (Class A) $ 5,658,219
142,644 Meredith Corp. 7,319,064
--------------
$ 12,977,283
--------------
Total Media $ 54,813,129
-------------------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 15.3%
Soft Drinks -- 3.0%
353,400 Dr. Pepper Snapple Group, Inc. $ 32,127,594
323,033 The Coca-Cola Co. 14,471,878
--------------
$ 46,599,472
-------------------------------------------------------------------------------------------
Packaged Foods & Meats -- 12.3%
18,000 Calavo Growers, Inc. $ 1,029,060
445,005 Campbell Soup Co. 27,461,259
402,570 ConAgra Foods, Inc. 17,938,519
231,575 General Mills, Inc. 14,204,810
80,712 John B Sanfilippo & Son, Inc. 4,465,795
342,785 Kellogg Co. 26,329,316
100,000 McCormick & Co., Inc. 9,378,000
222,793 Mead Johnson Nutrition Co. 19,416,410
769,000 Mondelez International, Inc. 33,036,240
518,396 Pinnacle Foods, Inc. 22,078,486
200,000 The Hershey Co. 18,622,000
--------------
$ 193,959,895
--------------
Total Food, Beverage & Tobacco $ 240,559,367
-------------------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 1.0%
Household Products -- 1.0%
129,210 The Clorox Co. $ 16,180,968
--------------
Total Household & Personal Products $ 16,180,968
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.8%
Health Care Equipment -- 3.7%
116,900 Abbott Laboratories $ 4,547,410
226,600 Becton Dickinson and Co. 36,541,516
1,026,557 Smith & Nephew Plc 17,335,311
--------------
$ 58,424,237
-------------------------------------------------------------------------------------------
Health Care Distributors -- 1.1%
489,300 Owens & Minor, Inc. $ 17,805,627
--------------
Total Health Care Equipment & Services $ 76,229,864
-------------------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 7.1%
Biotechnology -- 0.3%
115,000 Baxalta, Inc. $ 4,824,250
-------------------------------------------------------------------------------------------
Pharmaceuticals -- 6.8%
323,326 AstraZeneca Plc (A.D.R.) $ 9,363,521
142,342 Eli Lilly & Co. 10,751,091
461,065 GlaxoSmithKline Plc (A.D.R.) 19,784,299
156,477 Johnson & Johnson 17,537,942
508,997 Merck & Co., Inc. 27,913,395
481,577 Zoetis, Inc. 22,648,566
--------------
$ 107,998,814
--------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 112,823,064
-------------------------------------------------------------------------------------------
BANKS -- 2.7%
Diversified Banks -- 0.9%
1,023,202 Bank of America Corp. $ 14,897,821
-------------------------------------------------------------------------------------------
Regional Banks -- 1.8%
316,212 The PNC Financial Services Group, Inc. $ 27,757,089
--------------
Total Banks $ 42,654,910
-------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 5.2%
Consumer Finance -- 0.9%
214,951 American Express Co. $ 14,064,244
-------------------------------------------------------------------------------------------
Asset Management & Custody Banks -- 3.6%
174,045 Northern Trust Corp. $ 12,371,119
455,754 State Street Corp. 28,393,474
395,731 The Bank of New York Mellon Corp. 15,924,215
--------------
$ 56,688,808
-------------------------------------------------------------------------------------------
Investment Banking & Brokerage -- 0.7%
432,759 Morgan Stanley Co. $ 11,710,459
--------------
Total Diversified Financials $ 82,463,511
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 23
Schedule of Investments | 4/30/16 (unaudited) (continued)
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
INSURANCE -- 3.0%
Life & Health Insurance -- 1.4%
424,218 Lincoln National Corp. $ 18,432,272
95,919 Sun Life Financial, Inc. 3,270,838
--------------
$ 21,703,110
-------------------------------------------------------------------------------------------
Multi-line Insurance -- 0.9%
346,013 The Hartford Financial Services Group, Inc. $ 15,356,057
-------------------------------------------------------------------------------------------
Property & Casualty Insurance -- 0.7%
335,353 The Progressive Corp. $ 10,932,508
--------------
Total Insurance $ 47,991,675
-------------------------------------------------------------------------------------------
REAL ESTATE -- 2.9%
Hotel & Resort REIT -- 0.3%
183,714 Chesapeake Lodging Trust $ 4,524,876
-------------------------------------------------------------------------------------------
Office REIT -- 0.9%
149,330 Alexandria Real Estate Equities, Inc. $ 13,880,224
-------------------------------------------------------------------------------------------
Residential REIT -- 0.6%
128,333 Camden Property Trust $ 10,360,323
-------------------------------------------------------------------------------------------
Retail REIT -- 0.6%
331,872 Kimco Realty Corp. $ 9,332,241
-------------------------------------------------------------------------------------------
Specialized REIT -- 0.5%
359,003 Outfront Media, Inc. $ 7,786,775
--------------
Total Real Estate $ 45,884,439
-------------------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.1%
IT Consulting & Other Services -- 1.1%
159,919 Accenture Plc $ 18,058,053
--------------
Total Software & Services $ 18,058,053
-------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 4.7%
Semiconductor Equipment -- 0.2%
81,814 Cabot Microelectronics Corp.* $ 3,427,188
-------------------------------------------------------------------------------------------
Semiconductors -- 4.5%
239,000 Intel Corp. $ 7,236,920
288,426 Linear Technology Corp. 12,829,188
523,502 Microchip Technology, Inc. 25,436,962
717,266 NVIDIA Corp. 25,484,461
--------------
$ 70,987,531
--------------
Total Semiconductors & Semiconductor Equipment $ 74,414,719
-------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.2%
Integrated Telecommunication Services -- 0.2%
68,462 AT&T, Inc. $ 2,657,695
--------------
Total Telecommunication Services $ 2,657,695
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
UTILITIES -- 10.8%
Electric Utilities -- 6.1%
400,069 Alliant Energy Corp. $ 28,212,866
332,057 American Electric Power Co., Inc. 21,085,620
348,814 Eversource Energy 19,687,062
94,639 NextEra Energy, Inc.* 11,127,654
306,006 Westar Energy, Inc. 15,792,970
--------------
$ 95,906,172
-------------------------------------------------------------------------------------------
Gas Utilities -- 1.6%
453,986 National Fuel Gas Co. $ 25,196,223
-------------------------------------------------------------------------------------------
Multi-Utilities -- 3.1%
498,500 Ameren Corp. $ 23,928,000
335,667 Consolidated Edison, Inc. 25,040,758
--------------
$ 48,968,758
--------------
Total Utilities $ 170,071,153
-------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,207,792,863) $1,564,695,043
-------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.2%
(Cost $1,207,792,863) (a) $1,564,695,043
-------------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.8% $ 12,294,196
-------------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $1,576,989,239
===========================================================================================
* 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.
(a) At April 30, 2016, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $1,192,358,425 was
as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $ 405,997,862
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (33,661,244)
-------------
Net unrealized appreciation $ 372,336,618
=============
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2016, aggregated $360,251,176 and $294,150,162,
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.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 25
Schedule of Investments | 4/30/16 (unaudited) (continued)
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 April 30, 2016, in valuing
the Fund's investments:
------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------
Common Stocks $1,564,695,043 $ -- $ -- $1,564,695,043
------------------------------------------------------------------------------------
Total $1,564,695,043 $ -- $ -- $1,564,695,043
------------------------------------------------------------------------------------
During the six months ended April 30, 2016, there were no transfers between
Levels 1, 2 and 3.
The following is a summary of the fair valuation of certain Fund's assets and
liabilities as of April 30, 2016:
------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
------------------------------------------------------------------------------------
Assets:
Foreign currencies, at value $ -- $89,493 $ -- $89,493
------------------------------------------------------------------------------------
Total $ -- $89,493 $ -- $89,493
------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
Statement of Assets and Liabilities | 4/30/16 (unaudited)
ASSETS:
Investment in securities of unaffiliated issuers, at value
(cost $1,200,836,099) $1,526,125,504
Investment in securities of an affiliated issuer, at value (cost $6,956,764) 38,569,539
----------------------------------------------------------------------------------------------
Total investments in securities, at value (cost $1,207,792,863) $1,564,695,043
Foreign currency (cost $89,600) 89,493
Receivables --
Fund shares sold 12,065,259
Dividends 3,748,649
Other assets 76,879
----------------------------------------------------------------------------------------------
Total assets $1,580,675,323
==============================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 592,836
Fund shares repurchased 2,167,630
Trustees fees 4,716
Due to affiliates 462,813
Due to custodian 376,005
Accrued expenses 82,084
----------------------------------------------------------------------------------------------
Total liabilities $ 3,686,084
==============================================================================================
NET ASSETS:
Paid-in capital $1,138,975,365
Undistributed net investment income 18,532,417
Accumulated net realized gain on investments 62,688,482
Net unrealized appreciation on investments 356,902,180
Net unrealized depreciation on forward foreign currency contracts and
other assets and liabilities denominated in foreign currencies (109,205)
----------------------------------------------------------------------------------------------
Total net assets $1,576,989,239
==============================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $751,965,149/22,863,938 shares) $ 32.89
Class C (based on $125,192,791/3,866,285 shares) $ 32.38
Class K (based on $26,954,609/818,326 shares) $ 32.94
Class R (based on $81,019,932/2,430,427 shares) $ 33.34
Class Y (based on $591,856,758/17,819,437 shares) $ 33.21
MAXIMUM OFFERING PRICE:
Class A ($32.89 (divided by) 94.25%) $ 34.90
==============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 27
Statement of Operations (unaudited)
For the Six Months Ended 4/30/16
INVESTMENT INCOME:
Dividends (including dividend income from affiliated issuer of
$286,306 and net of foreign tax withheld of $184,210) $ 23,262,619
Interest 1,326
-----------------------------------------------------------------------------------------------
Total investment income $ 23,263,945
-----------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 4,380,425
Transfer agent fees
Class A 90,948
Class C 8,644
Class K 901
Class R 2,936
Class Y 16,577
Distribution fees
Class A 889,604
Class C 576,906
Class R 185,359
Shareholder communications expense 809,003
Administrative expense 269,119
Custodian fees 12,488
Registration fees 44,365
Professional fees 42,743
Printing expense 11,262
Fees and expenses of nonaffiliated Trustees 32,240
Miscellaneous 41,425
-----------------------------------------------------------------------------------------------
Total expenses $ 7,414,945
-----------------------------------------------------------------------------------------------
Net investment income $ 15,849,000
===============================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments (including from affiliated issuer of $--) $ 63,090,833
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (82,358) $ 63,008,475
-----------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments (including from affiliated Issuer
of ($409,009)) $ (14,774,008)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 41,603 $ (14,732,405)
-----------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments and
foreign currency transactions $ 48,276,070
-----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 64,125,070
===============================================================================================
The accompanying notes are an integral part of these financial statements.
28 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------
Six Months
Ended
4/30/16 Year Ended
(unaudited) 10/31/15
-------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 15,849,000 $ 29,890,363
Net realized gain (loss)on investments and foreign
currency transactions 63,008,475 109,854,036
Change in net unrealized appreciation (depreciation)
on investments and foreign currency transactions (14,732,405) (62,083,192)
-------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 64,125,070 $ 77,661,207
-------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.31 and $0.75 per share, respectively) $ (7,132,394) $ (16,716,779)
Class C ($0.19 and $0.52 per share, respectively) (710,488) (1,851,301)
Class K ($0.35 and $0.90 per share, respectively) (254,261) (413,670)
Class R ($0.25 and $0.63 per share, respectively) (582,508) (1,405,801)
Class Y ($0.35 and $0.85 per share, respectively) (5,934,036) (12,754,872)
Class Z** ($0.00 and $0.64 per share, respectively) -- (24,005)
Net realized gain:
Class A ($2.58 and $3.15 per share, respectively) $ (55,000,813) $ (66,682,486)
Class C ($2.58 and $3.15 per share, respectively) (8,860,057) (10,128,292)
Class K ($2.58 and $3.15 per share, respectively) (1,615,497) (961,946)
Class R ($2.58 and $3.15 per share, respectively) (5,592,240) (6,797,737)
Class Y ($2.58 and $3.15 per share, respectively) (39,208,270) (43,627,159)
Class Z** ($0.00 and $3.15 per share, respectively) -- (116,535)
-------------------------------------------------------------------------------------------
Total distributions to shareowners $ (124,890,564) $ (161,480,583)
-------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 227,931,456 $ 328,984,174
Reinvestment of distributions 112,906,780 143,406,591
Cost of shares repurchased (175,659,374) (413,532,740)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
Fund share transactions $ 165,178,862 $ 58,858,025
-------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 104,413,368 $ (24,961,351)
NET ASSETS:
Beginning of period 1,472,575,871 1,497,537,222
-------------------------------------------------------------------------------------------
End of period $1,576,989,239 $1,472,575,871
-------------------------------------------------------------------------------------------
Undistributed net investment income $ 18,532,417 $ 17,297,104
===========================================================================================
** 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 | Semiannual Report | 4/30/16 29
Statements of Changes in Net Assets (continued)
----------------------------------------------------------------------------------------------
Six Months Six Months
Ended Ended
4/30/16 4/30/16 Year Ended Year Ended
Shares Amount 10/31/15 10/31/15
(unaudited) (unaudited) Shares Amount
----------------------------------------------------------------------------------------------
Class A
Shares sold 2,026,730 $ 63,864,713 3,282,733 $ 113,641,411
Reinvestment of distributions 1,857,738 59,422,187 2,331,741 79,888,375
Less shares repurchased (2,307,202) (72,006,179) (5,436,294) (187,419,267)
----------------------------------------------------------------------------------------------
Net increase 1,577,266 $ 51,280,721 178,180 $ 6,110,519
==============================================================================================
Class B*
Shares sold or exchanged -- $ -- -- $ --
Reinvestment of distributions -- -- -- --
Less shares repurchased -- -- (284,163) (10,448,255)
----------------------------------------------------------------------------------------------
Net decrease -- $ -- (284,163) $ (10,448,255)
==============================================================================================
Class C
Shares sold 786,510 $ 24,458,183 801,513 $ 27,159,377
Reinvestment of distributions 230,483 7,257,570 249,152 8,418,829
Less shares repurchased (574,154) (17,806,149) (840,599) (28,363,395)
----------------------------------------------------------------------------------------------
Net increase 442,839 $ 13,909,604 210,066 $ 7,214,811
==============================================================================================
Class K
Shares sold 220,400 $ 6,967,702 391,354 $ 13,488,826
Reinvestment of distributions 50,787 1,626,103 38,678 1,325,294
Less shares repurchased (59,938) (1,938,821) (120,070) (4,116,064)
----------------------------------------------------------------------------------------------
Net increase 211,249 $ 6,654,984 309,962 $ 10,698,056
==============================================================================================
Class R
Shares sold 513,363 $ 16,489,174 537,104 $ 18,652,763
Reinvestment of distributions 169,950 5,509,559 231,207 8,018,150
Less shares repurchased (431,097) (13,866,210) (733,261) (25,422,340)
----------------------------------------------------------------------------------------------
Net increase 252,216 $ 8,132,523 35,050 $ 1,248,573
==============================================================================================
Class Y
Shares sold 3,628,944 $ 116,151,684 4,489,448 $ 155,697,868
Reinvestment of distributions 1,210,693 39,091,361 1,320,093 45,617,499
Less shares repurchased (2,210,476) (70,042,015) (4,501,224) (156,053,921)
----------------------------------------------------------------------------------------------
Net increase 2,629,161 $ 85,201,030 1,308,317 $ 45,261,446
==============================================================================================
Class Z**
Shares sold -- $ -- 9,797 $ 343,929
Reinvestment of distributions -- -- 4,028 138,444
Less shares repurchased -- -- (49,433) (1,709,498)
----------------------------------------------------------------------------------------------
Net decrease -- $ -- (35,608) $ (1,227,125)
==============================================================================================
* 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.
30 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
Financial Highlights
---------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/16 Ended Ended Ended Ended Ended
(unaudited) 10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 34.41 $ 36.47 $ 34.35 $ 27.96 $ 26.19 $ 23.92
---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.34(a) $ 0.68(a) $ 0.96 $ 0.75 $ 1.05 $ 0.48
Net realized and unrealized gain (loss) on investments 1.03 1.16 3.11 6.53 1.56 2.20
Net increase (decrease) from investment operations $ 1.37 $ 1.84 $ 4.07 $ 7.28 $ 2.61 $ 2.68
---------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.31) $ (0.75) $ (0.80) $ (0.89) $ (0.84) $ (0.41)
Net realized gain (2.58) (3.15) (1.15) -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (2.89) $ (3.90) $ (1.95) $ (0.89) $ (0.84) $ (0.41)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.52) $ (2.06) $ 2.12 $ 6.39 $ 1.77 $ 2.27
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 32.89 $ 34.41 $ 36.47 $ 34.35 $ 27.96 $ 26.19
=================================================================================================================================
Total return* 4.31% 5.30% 12.33% 26.52% 10.09% 11.26%
Ratio of net expenses to average net assets 1.04%** 1.06% 1.09% 1.10% 1.14% 1.15%
Ratio of net investment income (loss) to average net assets 2.15%** 1.99% 2.56% 2.39% 3.86% 1.78%
Portfolio turnover rate 40%** 40% 29% 26% 49% 24%
Net assets, end of period (in thousands) $751,965 $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.
** Annualized.
(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 | Semiannual Report | 4/30/16 31
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/16 Ended Ended Ended Ended Ended
(unaudited) 10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 33.91 $ 36.03 $ 33.94 $ 27.64 $ 25.91 $ 23.66
---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.22(a) $ 0.42(a) $ 0.62 $ 0.47 $ 0.84 $ 0.27
Net realized and unrealized gain (loss) on investments 1.02 1.13 3.17 6.50 1.54 2.20
Net increase (decrease) from investment operations $ 1.24 $ 1.55 $ 3.79 $ 6.97 $ 2.38 $ 2.47
---------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.19) $ (0.52) $ (0.55) $ (0.67) $ (0.65) $ (0.22)
Net realized gain (2.58) (3.15) (1.15) -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (2.77) $ (3.67) $ (1.70) $ (0.67) $ (0.65) $ (0.22)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.53) $ (2.12) $ 2.09 $ 6.30 $ 1.73 $ 2.25
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 32.38 $ 33.91 $ 36.03 $ 33.94 $ 27.64 $ 25.91
=================================================================================================================================
Total return* 3.94% 4.49% 11.57% 25.61% 9.26% 10.45%
Ratio of net expenses to average net assets 1.76%** 1.80% 1.80% 1.84% 1.86% 1.91%
Ratio of net investment income (loss) to average net assets 1.42%** 1.24% 1.83% 1.62% 3.13% 1.02%
Portfolio turnover rate 40%** 40% 29% 26% 49% 24%
Net assets, end of period (in thousands) $125,193 $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.
** Annualized.
(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 | Semiannual Report | 4/30/16
-------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year
4/30/16 Ended Ended 12/20/12
(unaudited) 10/31/15 10/31/14 to 10/31/13
-------------------------------------------------------------------------------------------------------------
Class K
Net asset value, beginning of period $ 34.44 $ 36.52 $ 34.38 $ 28.30
-------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.40(b) $ 0.80(b) $ 0.96 $ 0.03
Net realized and unrealized gain (loss) on investments 1.03 1.17 3.27 6.63
Net increase (decrease) from investment operations $ 1.43 $ 1.97 $ 4.23 $ 6.66
-------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.35) $ (0.90) $ (0.94) $ (0.58)
Net realized gain (2.58) (3.15) (1.15) --
-------------------------------------------------------------------------------------------------------------
Total distributions $ (2.93) $ (4.05) $ (2.09) $ (0.58)
-------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.50) $ (2.08) $ 2.14 $ 6.08
-------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 32.94 $ 34.44 $ 36.52 $ 34.38
=============================================================================================================
Total return* 4.51% 5.67% 12.82% 23.72%(a)
Ratio of net expenses to average net assets 0.68%** 0.67% 0.69% 0.66%**
Ratio of net investment income (loss) to average net assets 2.52%** 2.32% 2.24% 1.84%**
Portfolio turnover rate 40%** 40% 29% 26%
Net assets, end of period (in thousands) $26,955 $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 | Semiannual Report | 4/30/16 33
Financial Highlights (continued)
---------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/16 Ended Ended Ended Ended Ended
(unaudited) 10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 34.83 $ 36.88 $ 34.71 $ 28.24 $ 26.45 $ 24.14
---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.28(a) $ 0.57(a) $ 0.88 $ 0.72 $ 1.03 $ 0.36
Net realized and unrealized gain (loss) on investments 1.06 1.16 3.11 6.54 1.52 2.28
Net increase (decrease) from investment operations $ 1.34 $ 1.73 $ 3.99 $ 7.26 $ 2.55 $ 2.64
---------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.25) $ (0.63) $ (0.67) $ (0.79) $ (0.76) $ (0.33)
Net realized gain (2.58) (3.15) (1.15) -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (2.83) $ (3.78) $ (1.82) $ (0.79) $ (0.76) $ (0.33)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.49) $ (2.05) $ 2.17 $ 6.47 $ 1.79 $ 2.31
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.34 $ 34.83 $ 36.88 $ 34.71 $ 28.24 $ 26.45
=================================================================================================================================
Total return* 4.14% 4.90% 11.95% 26.13% 9.76% 10.96%
Ratio of net expenses to average net assets 1.41%** 1.41% 1.43% 1.41% 1.41% 1.48%
Ratio of net investment income (loss) to average net assets 1.78%** 1.64% 2.22% 2.09% 3.62% 1.46%
Portfolio turnover rate 40%** 40% 29% 26% 49% 24%
Net assets, end of period (in thousands) $81,020 $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.
** Annualized.
(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.
34 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
---------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
4/30/16 Ended Ended Ended Ended Ended
(unaudited) 10/31/15 10/31/14 10/31/13 10/31/12 10/31/11
---------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 34.71 $ 36.77 $ 34.62 $ 28.17 $ 26.38 $ 24.09
---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.38(a) $ 0.78(a) $ 0.98 $ 0.78 $ 1.05 $ 0.44
Net realized and unrealized gain (loss) on investments 1.05 1.16 3.23 6.67 1.67 2.37
Net increase (decrease) from investment operations $ 1.43 $ 1.94 $ 4.21 $ 7.45 $ 2.72 $ 2.81
---------------------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.35) $ (0.85) $ (0.91) $ (1.00) $ (0.93) $ (0.52)
Net realized gain (2.58) (3.15) (1.15) -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (2.93) $ (4.00) $ (2.06) $ (1.00) $ (0.93) $ (0.52)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (1.50) $ (2.06) $ 2.15 $ 6.45 $ 1.79 $ 2.29
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.21 $ 34.71 $ 36.77 $ 34.62 $ 28.17 $ 26.38
=================================================================================================================================
Total return* 4.44% 5.56% 12.67% 26.98% 10.47% 11.73%
Ratio of net expenses to average net assets 0.78%** 0.78% 0.79% 0.76% 0.77% 0.75%
Ratio of net investment income (loss) to average net assets 2.40%** 2.26% 2.85% 2.68% 4.20% 2.16%
Portfolio turnover rate 40%** 40% 29% 26% 49% 24%
Net assets, end of period (in thousands) $591,857 $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.
** Annualized.
(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 | Semiannual Report | 4/30/16 35
Notes to Financial Statements | 4/30/16 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Equity Income Fund (the Fund) is a Delaware statutory trust. The Fund is
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is current
income and long-term growth of capital from a portfolio consisting primarily of
income producing equity securities of U.S. corporations.
The Fund offers 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:
36 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
A. Security Valuation
The net asset value of the Fund is computed once daily, on each day the New
York Stock Exchange (NYSE) is open, as of the close of regular trading on
the NYSE.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
Foreign securities are valued in U.S. dollars based on foreign currency
exchange rate quotations supplied by a third party pricing service. Trading
in non-U.S. equity securities is substantially completed each day at
various times prior to the close of the NYSE. The values of such securities
used in computing the net asset value of the Fund's shares are determined
as of such times. The fund may use a fair value model developed by an
independent pricing service to value non-U.S. equity securities.
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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 37
At April 30, 2016, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services, broker-dealers).
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence. Interest income, including
interest on income bearing cash accounts, is recorded on the accrual basis.
Dividend and interest income are reported net of unrecoverable foreign
taxes withheld at the applicable country rates.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. 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.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
during the year ended October 31, 2015 was as follows:
38 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
---------------------------------------------------------------------------
2015
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 33,166,428
Long-term capital gain 128,314,155
---------------------------------------------------------------------------
Total $161,480,583
===========================================================================
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 $49,312 in underwriting commissions on the sale of
Class A shares during the six months ended April 30, 2016.
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).
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 39
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.
F. Risks
The value of securities held by the fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
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 7).
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.60% of
the Fund's average daily net assets up to $10 billion and 0.575% on assets over
$10 billion. For the six months ended April 30, 2016, the effective management
fee (excluding waivers and/or assumption of expenses) was equivalent to 0.60% of
the Fund's average daily net assets.
40 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
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
$80,670, in management fees, administrative costs and certain other
reimbursements payable to PIM at April 30, 2016.
3. Transfer Agent
Prior to November 2, 2015, Pioneer Investment Management Shareholder Services,
Inc. (PIMSS), a wholly owned indirect subsidiary of UniCredit, provided
substantially all transfer agent and shareowner services to the Fund at
negotiated rates.
Effective November 2, 2015, Boston Financial Data Services serves as the
transfer agent to the Fund at negotiated rates.
For the six months ended April 30, 2016, such out-of-pocket expenses by class of
shares were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $361,589
Class C 47,643
Class K 501
Class R 90,160
Class Y 309,110
--------------------------------------------------------------------------------
Total $809,023
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $351,749 in transfer agent fees and out-of-pocket reimbursements
payable to the transfer agent at April 30, 2016.
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 $30,394 in distribution
fees payable to PFD at April 30, 2016.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 41
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 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 six months ended April 30, 2016, CDSCs
in the amount of $3,228 were paid to PFD.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until June 9, 2015, was in the amount of $215 million.
For the period from June 9, 2015, to February 9, 2016, the facility was in the
amount of $240 million. Effective February 10, 2016, the facility is in the
amount of $220 million. Under such facility, depending on the type of loan,
interest on borrowings is payable at the London Interbank Offered Rate (LIBOR)
plus 0.85% on an annualized basis, or the Alternate Base Rate, which is the
greater of (a) the facility's administrative agent's daily announced prime rate
on the borrowing date, (b) 2% plus the Federal Funds Rate on the borrowing date
and (c) 2% plus the overnight Eurodollar rate on the borrowing date. The Funds
pay an annual commitment fee to participate in a credit facility. The commitment
fee is allocated among participating Funds based on an allocation schedule set
forth in the credit agreement. For the six months ended April 30, 2016, the Fund
had no borrowings under the credit facility.
42 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
6. Affiliated Companies
The Fund's investments in certain companies may exceed 5% of the outstanding
voting stock of those companies. Such companies are deemed affiliates of the
Fund for financial reporting purposes. The following summarizes transactions
with affiliates of the Fund for the six months ended April 30, 2015:
----------------------------------------------------------------------------------------------------------
Beginning Corporate
Balance Purchases Sales Actions Ending Dividend Realized
Affiliates (shares) (shares) (shares) (shares) (shares) Income Value Gain
----------------------------------------------------------------------------------------------------------
The Gorman-
Rupp Co. 1,363,363 -- -- -- 1,363,363 $286,306 $38,569,539 $ --
7. Forward Foreign Currency Contracts
During the six months ended April 30, 2016, 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. There were no
open forward foreign currency contracts at April 30, 2016.
ADDITIONAL INFORMATION
PIM, the Fund's investment adviser, is currently an indirect, wholly owned
subsidiary of UniCredit. On November 11, 2015, UniCredit announced that it
signed a binding master agreement with Banco Santander and affiliates of Warburg
Pincus and General Atlantic (the "Private Equity Firms") with respect to Pioneer
Investments ("Pioneer") and Santander Asset Management ("SAM") (the
"Transaction").
The Transaction, as previously announced by UniCredit, will establish a holding
company, with the name Pioneer Investments, to be owned by UniCredit (50%) and
the Private Equity Firms (50% between them). The holding company will control
Pioneer's U.S. operations, including PIM. The holding company also will own
66.7% of Pioneer's and SAM's combined operations outside the U.S., while Banco
Santander will own directly the remaining 33.3% stake. The closing of the
Transaction is 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.
Pioneer Equity Income Fund | Semiannual Report | 4/30/16 43
Trustees, Officers and Service Providers
Trustees Advisory Trustee
Thomas J. Perna, Chairman Lorraine H. Monchak*
David R. Bock
Benjamin M. Friedman Officers
Margaret B.W. Graham Lisa M. Jones, President and Chief
Marguerite A. Piret Executive Officer
Fred J. Ricciardi Mark E. Bradley, Treasurer and
Kenneth J. Taubes Chief Financial Officer
Christopher J. Kelley, Secretary and
Chief Legal Officer
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
* Ms. Monchak is a non-voting Advisory Trustee.
44 Pioneer Equity Income Fund | Semiannual Report | 4/30/16
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Pioneer Funds
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at www.sec.gov. The filed form may also be viewed and copied at the
Commission's Public Reference Room in Washington, DC. Information regarding the
operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2016 Pioneer Investments 19381-10-0616
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
N/A
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
N/A
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Equity Income Fund
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date June 28, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date June 28, 2016
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date June 28, 2016
* Print the name and title of each signing officer under his or her signature.