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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08657
Pioneer Equity Income Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: October 31
Date of reporting period: November 1, 2015 through October 31, 2016
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Equity
Income Fund
--------------------------------------------------------------------------------
Annual Report | October 31, 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 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 16
Schedule of Investments 18
Financial Statements 25
Notes to Financial Statements 34
Report of Independent Registered Public Accounting Firm 41
Approval of Investment Advisory Agreement 43
Trustees, Officers and Service Providers 48
Pioneer Equity Income Fund | Annual Report | 10/31/16 1
President's Letter
Dear Shareowner,
While investors were greeted with a challenging market environment for the first
several weeks of the new year, the U.S. market generated modest single-digit
returns for both stocks and bonds through September 30th (the Bloomberg Barclays
Aggregate Bond Index was up by 5.8% through September 30, 2016, and the Standard
& Poor's 500 Index was up by 7.8%). Yet, it is becoming increasingly clear that
the investment landscape is undergoing significant change. For the past eight
years, global central banks have been the dominant force in the markets by
maintaining government bond yields at close to zero in an effort to stimulate
economic growth. With little room to lower rates further, however, central banks
may be losing their effectiveness. Many economies around the world are
experiencing slow growth as they face a variety of challenges, including the
shifting geopolitics driving "Brexit" - the United Kingdom's pending exit from
the European Union - as well as related movements in Europe, limited
productivity gains, aging populations, and transitioning economic models in
China and other emerging markets. In the United States, gross domestic product
(GDP) grew at a rate of approximately 1.2% in the first half of 2016, but GDP
growth registered a strong uptick in the third quarter of the year, driven
primarily by U.S. consumers.
Investors currently face a difficult environment. Government bond yields, as
noted earlier, had been near zero for most of the year and offered minimal
opportunity to produce income. However, recent developments such as the Federal
Reserve's decision to increase the Federal funds rate before the end of 2016
have driven yields slightly higher. The central bank-driven bull market in
riskier assets has pushed up valuations towards historic highs in the equity and
investment-grade and high-yield corporate bond markets. Central banks have
pledged to move gradually to normalize interest-rate policies as the global
economy recovers, but it will take many years for this historic credit cycle to
unwind. Politics may also influence markets or investor sentiment given the
current global political landscape. Donald Trump's surprising victory in the
November U.S. presidential election seems to have sparked a late-year market
rally, given the pro-growth proposals he promoted on the campaign trail, but it
is unclear just how many of his policy initiatives will be implemented. In
addition, continued challenges with Brexit and other geopolitical issues have
the potential to increase market volatility going forward. Against this
backdrop, investors are likely to face ongoing challenges when it comes to
finding opportunities for both income and capital appreciation, and while much
has been made of passive investing, we believe all investment decisions are
active choices.
2 Pioneer Equity Income Fund | Annual Report | 10/31/16
Throughout Pioneer's history, we have believed in the importance of active
management. During challenging market conditions, we view the value of active
management as even more compelling. Our experienced and tenured investment teams
focus on identifying value across global markets using proprietary research,
careful risk management, and a long-term perspective. We believe our shareowners
can benefit from the experience and tenure of our investment teams as well as
the insights generated from our extensive research process.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
Sincerely,
/s/ Lisa M. Jones
Lisa M. Jones
President and CEO
Pioneer Investment Management USA Inc.
December 19, 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 | Annual Report | 10/31/16 3
Portfolio Management Discussion | 10/31/16
In the following interview, John Carey, Executive Vice President and a portfolio
manager at Pioneer Investments, discusses the investment environment during the
12-month period ended October 31, 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 the Fund perform during the 12-month period ended October 31, 2016?
A Pioneer Equity Income Fund's Class A shares returned 8.11% at net asset
value during the 12-month period ended October 31, 2016, while the Fund's
benchmark, the Russell 1000 Value Index, returned 6.37%. During the same
period, the average return of the 508 mutual funds in Lipper's Equity
Income Funds category was 4.70%, and the average return of the 1,371 mutual
funds in Morningstar's Large Value Funds category was 3.72%.
Q How would you describe the market environment for equities during the
12-month period ended October 31, 2016, particularly for the types of
equities deemed appropriate for the Fund?
A The first three-and-a-half months of the period saw the stock market
decline in the United States. A rate increase by the Federal Reserve (the
Fed) in December 2015, together with lackluster and even declining
corporate earnings, slumping oil prices, and geopolitical tensions, caused
concern among investors. Then, in the middle of February 2016, began a
recovery that, on the whole, continued through period end. Explanations for
the change in market direction ranged from decreasing concern that the Fed
would push rates up too quickly, to recovering commodities prices, to
expectations for stronger economic activity in the second half of calendar
year 2016. The economic optimism led investors to bid up the prices of more
cyclical, value stocks, and the Russell 1000 Value Index (the Russell
Index), the Fund's benchmark, outperformed the Russell 1000 Growth Index
for the full 12-month period. It was a generally good period particularly
for the dividend-paying*, value stocks we typically hold in Pioneer Equity
Income Fund, as the unsettled state of the markets in the earlier months of
the period appeared to incline investors towards stocks with income
support.
* Dividends are not guaranteed.
4 Pioneer Equity Income Fund | Annual Report | 10/31/16
Q The Fund outperformed the Russell Index benchmark during the 12-month
period ended October 31, 2016. Could you please discuss the major reasons
for the Fund's benchmark-relative outperformance, and discuss any
investments or strategies that detracted from benchmark-relative returns?
A The Fund's benchmark-relative performance benefited from both sector
allocation and security selection decisions during the 12-month period. The
portfolio was overweight the top-performing utilities sector and had above-
average stock performance in that sector. Three of the Fund's utility
holdings, Empire District Electric, Questar, and Westar, received premium
acquisition offers during the period, thus benefiting performance. Another
utility name in the portfolio, Alliant Energy, showed a total return of 33%
over the 12 months. The portfolio also had above-index weights to the
strong-performing consumer-staples and materials sectors, and below-index
weights to the weaker performing energy and financials sectors. While the
Fund's benchmark-relative performance was negatively affected by an
underweight to the strong-performing information-technology sector, making
up for that, and then some, was the exceptionally positive share-price
performance from portfolio holdings in technology stocks NVIDIA, Microchip
Technology, and Linear Technology, the last of which received a premium
take-over offer from another semiconductor company. A couple of other Fund
holdings that received purchase offers, Valspar (materials) and G&K
Services (industrials), likewise contributed importantly to
benchmark-relative results.
On the negative side, the Fund was slightly underweight the strong-
performing industrials sector during the period, and, to boot, one of the
portfolio's larger holdings in the sector, Gorman-Rupp, actually declined
by 15% on a total-return basis over the period as orders for the company's
waste-water, agricultural, and oil-service pumps fell. We have, however,
retained the shares, since we believe that pump orders will recover. In
consumer staples, stock selection results detracted from the Fund's
benchmark-relative performance, as we were late in buying shares of the
surging Wal-Mart Stores, and we did not own any shares of resurgent Procter
& Gamble. The Fund's relative returns suffered from unfavorable stock
selection in the energy sector as well, as the names the portfolio owned
did not show the sharp recovery that other energy stocks did when the oil
market turned positive in the spring.
Q Please discuss changes to the portfolio during the 12-month period ended
October 31, 2016.
A As the Fed began to show resolve regarding increasing interest rates, a
potentially favorable development for many financial-services companies, we
gradually boosted the Fund's exposure to the financials sector. In the
Pioneer Equity Income Fund | Annual Report | 10/31/16 5
first six months of the period we added, for example, positions in PNC
Financial (banking) and Sun Life Financial (insurance and money
management); and, in the second six months we established positions in
Invesco (money management) and Discover Financial Services (consumer
credit), while re-establishing positions in former portfolio companies
JPMorgan Chase and US Bancorp. Kroger and Wal-Mart Stores were new entries
for the portfolio in consumer staples. Both are large food retailers, while
Wal-Mart, of course, also sells general merchandise. In utilities, we added
WEC Energy, which appears to us a very well-managed public utility in the
upper Middle West. In information technology, we added Xilinx, which
designs, for specialized technological applications, what are called
"programmable microchips."
Throughout the 12-month period we built positions in metals-and-mining
stocks, including Kaiser Aluminum, Nucor, Materion, Southern Copper, Rio
Tinto, and BHP Billiton, as we judged that investors had become too
pessimistic about the prospects for what have been, after all, basic
materials for industrial production for thousands of years.
Regarding sales from the portfolio during the period, we did take profits
on most of the stocks that received take-over offers, including the three
aforementioned utilities as well as Valspar, G&K Services, Linear
Technology, BioMed Realty Trust, and Agrium. Otherwise, as always, we sold
a number of stocks that we believed had reached fair value or that no
longer appeared as attractive to us from an investment point of view as
other stocks in the portfolio. Liquidated positions in those categories
included shares of NextEra Energy, Dow Chemical, Electrolux, Intel, Amgen,
Citizens Financial Group, and Progressive, among a number of others.
Q Did the Fund hold any derivatives during the 12-month period ended October
31, 2016?
A No, the Fund held no derivative positions during the period.
Q The Fund typically places an emphasis on dividend-paying stocks. Was the
setting for such stocks good or poor during the 12-month period ended
October 31, 2016?
A For the period as a whole, dividend-paying stocks were favored by investors
rattled by market volatility and desirous of income in a low-interest-rate
environment. However, utilities stocks as well as some consumer-staples
stocks, both prized for their steady dividends, came off their highs for a
time during the second half of the period as investors anticipated higher
interest rates and looked again at growth, as opposed to value, stocks. We
think that key, along with rising rates, will be emphasizing companies with
6 Pioneer Equity Income Fund | Annual Report | 10/31/16
the ability and commitment to raise their dividends regularly. It will be
that combination of growth and value that will hold up better, we think, if
interest rates rise.
Q What is your outlook as we head towards a new calendar year, and a new
political administration in Washington, D.C.?
A The victory of the Republicans in the November elections was more sweeping
than many pollsters and pundits had thought likely. The Republicans won not
only the Presidency, but also many governorships and state legislatures,
while retaining control of both the U.S. House of Representatives and the
U.S. Senate, even though the Democrats did pick-up a few seats. We think it
possible, as a result, that there will be more changes in policies and
programs than we might have seen in the event of a more mixed result with
the attendant "gridlock." We believe it reasonable to assume, then, in
particular, that some trade agreements will be renegotiated and some tax
and regulatory policies will be revised. So far, the stock market appears
expectant of change that will be positive for economic growth, and growth
that is faster than what we have seen over the past several years. At
Pioneer we always take the approach of watching and waiting on actual
events. We shall follow keenly what happens in Washington as well as at the
state level. In the end, though, we believe that companies, their
managements and workers create economic growth and true value for
shareholders, and our main focus will remain on that "micro" world.
Thank you as always for your support.
Pioneer Equity Income Fund | Annual Report | 10/31/16 7
Please refer to the Schedule of Investments on pages 18-24 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.
8 Pioneer Equity Income Fund | Annual Report | 10/31/16
Portfolio Summary | 10/31/16
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 88.1%
International Common Stocks 7.2%
Depositary Receipts for International Stocks 4.7%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 20.5%
Consumer Staples 18.5%
Health Care 11.4%
Utilities 8.9%
Materials 8.8%
Energy 8.6%
Industrials 8.1%
Consumer Discretionary 7.0%
Information Technology 3.4%
Real Estate 2.9%
Telecommunication Services 1.9%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)*
1. The PNC Financial Services Group, Inc. 2.40%
--------------------------------------------------------------------------------
2. State Street Corp. 2.27
--------------------------------------------------------------------------------
3. Becton Dickinson and Co. 2.20
--------------------------------------------------------------------------------
4. Mondelez International, Inc. 2.02
--------------------------------------------------------------------------------
5. Cedar Fair LP 1.95
--------------------------------------------------------------------------------
6. The Gorman-Rupp Co. 1.91
--------------------------------------------------------------------------------
7. Syngenta AG (A.D.R.) 1.85
--------------------------------------------------------------------------------
8. Microchip Technology, Inc. 1.85
--------------------------------------------------------------------------------
9. General Electric Co. 1.85
--------------------------------------------------------------------------------
10. Dr. Pepper Snapple Group, Inc. 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 | Annual Report | 10/31/16 9
Prices and Distributions | 10/31/16
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 10/31/16 10/31/15
--------------------------------------------------------------------------------
A $33.76 $34.41
--------------------------------------------------------------------------------
C $33.24 $33.91
--------------------------------------------------------------------------------
K $33.81 $34.44
--------------------------------------------------------------------------------
R $34.24 $34.83
--------------------------------------------------------------------------------
Y $34.10 $34.71
--------------------------------------------------------------------------------
Distributions per Share: 11/1/15-10/31/16
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $ 0.6396 $ -- $ 2.5838
--------------------------------------------------------------------------------
C $ 0.3872 $ -- $ 2.5838
--------------------------------------------------------------------------------
K $ 0.7436 $ -- $ 2.5838
--------------------------------------------------------------------------------
R $ 0.4986 $ -- $ 2.5838
--------------------------------------------------------------------------------
Y $ 0.7155 $ -- $ 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 11-15.
10 Pioneer Equity Income Fund | Annual Report | 10/31/16
Performance Update | 10/31/16 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Equity Income Fund at public
offering price during the periods shown, compared to that of the Russell 1000
Value Index.
Average Annual Total Returns
(As of October 31, 2016)
--------------------------------------------------------------------------------
Net Public Russell
Asset Offering 1000
Value Price Value
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 years 6.04% 5.42% 5.35%
5 years 12.24 10.91 13.31
1 year 8.11 1.89 6.37
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated March 1, 2016)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.06%
--------------------------------------------------------------------------------
Value of $10,000 Investment
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Pioneer Equity Russell 1000
Income Fund Value Index
10/06 $ 9,425 $10,000
10/07 $10,387 $11,083
10/08 $ 7,271 $ 7,005
10/09 $ 7,104 $ 7,340
10/10 $ 8,550 $ 8,493
10/11 $ 9,513 $ 9,016
10/12 $10,473 $10,539
10/13 $13,251 $13,521
10/14 $14,886 $15,746
10/15 $15,674 $15,829
10/16 $16,944 $16,837
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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Equity Income Fund | Annual Report | 10/31/16 11
Performance Update | 10/31/16 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2016)
--------------------------------------------------------------------------------
Russell
1000
If If Value
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 years 5.25% 5.25% 5.35%
5 years 11.42 11.42 13.31
1 year 7.34 7.34 6.37
--------------------------------------------------------------------------------
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
10/06 $10,000 $10,000
10/07 $10,937 $11,083
10/08 $ 7,599 $ 7,005
10/09 $ 7,362 $ 7,340
10/10 $ 8,795 $ 8,493
10/11 $ 9,714 $ 9,016
10/12 $10,614 $10,539
10/13 $13,331 $13,521
10/14 $14,875 $15,746
10/15 $15,542 $15,829
10/16 $16,682 $16,837
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.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer Equity Income Fund | Annual Report | 10/31/16
Performance Update | 10/31/16 Class K Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class K shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2016)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 years 6.20% 5.35%
5 years 12.58 13.31
1 year 8.50 6.37
--------------------------------------------------------------------------------
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 $5 Million Investment
Pioneer Equity Russell 1000
Income Fund Value Index
10/06 $5,000,000 $5,000,000
10/07 $5,510,812 $5,541,696
10/08 $3,857,996 $3,502,475
10/09 $3,769,174 $3,670,061
10/10 $4,536,531 $4,246,495
10/11 $5,047,584 $4,508,104
10/12 $5,556,605 $5,269,553
10/13 $7,056,755 $6,760,257
10/14 $7,961,797 $7,872,833
10/15 $8,413,410 $7,914,508
10/16 $9,128,399 $8,418,725
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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Equity Income Fund | Annual Report | 10/31/16 13
Performance Update | 10/31/16 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 October 31, 2016)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 years 5.75% 5.35%
5 years 11.86 13.31
1 year 7.73 6.37
--------------------------------------------------------------------------------
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
10/06 $10,000 $10,000
10/07 $11,010 $11,083
10/08 $ 7,692 $ 7,005
10/09 $ 7,500 $ 7,340
10/10 $ 9,001 $ 8,493
10/11 $ 9,988 $ 9,016
10/12 $10,962 $10,539
10/13 $13,827 $13,521
10/14 $15,479 $15,746
10/15 $16,237 $15,829
10/16 $17,493 $16,837
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.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Equity Income Fund | Annual Report | 10/31/16
Performance Update | 10/31/16 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Equity Income Fund during the
periods shown, compared to that of the Russell 1000 Value Index.
Average Annual Total Returns
(As of October 31, 2016)
--------------------------------------------------------------------------------
Net Russell
Asset 1000
Value Value
Period (NAV) Index
--------------------------------------------------------------------------------
10 years 6.44% 5.35%
5 years 12.58 13.31
1 year 8.40 6.37
--------------------------------------------------------------------------------
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
10/06 $5,000,000 $5,000,000
10/07 $5,532,726 $5,541,696
10/08 $3,888,733 $3,502,475
10/09 $3,816,923 $3,670,061
10/10 $4,617,703 $4,246,495
10/11 $5,159,511 $4,508,104
10/12 $5,699,530 $5,269,553
10/13 $7,236,957 $6,760,257
10/14 $8,154,245 $7,872,833
10/15 $8,607,648 $7,914,508
10/16 $9,330,568 $8,418,725
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.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Equity Income Fund | Annual Report | 10/31/16 15
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Equity Income Fund
Based on actual returns from May 1, 2016, through October 31, 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 5/1/16
--------------------------------------------------------------------------------
Ending Account Value $1,036.43 $1,032.71 $1,038.18 $1,034.47 $1,037.92
(after expenses) on
10/31/16
--------------------------------------------------------------------------------
Expenses Paid $ 5.32 $ 9.04 $ 3.43 $ 7.16 $ 3.94
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.04%,
1.77%, 0.67% 1.40% and 0.77% for Class A, Class C, Class K, Class R and
Class Y shares, respectively, multiplied by the average account value over
the period, multiplied by 184/366 (to reflect the one-half year period).
16 Pioneer Equity Income Fund | Annual Report | 10/31/16
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 May 1, 2016, through October 31, 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 5/1/16
--------------------------------------------------------------------------------
Ending Account Value $1,019.91 $1,016.24 $1,021.77 $1,018.10 $1,021.27
(after expenses) on
10/31/16
--------------------------------------------------------------------------------
Expenses Paid $ 5.28 $ 8.97 $ 3.40 $ 7.10 $ 3.91
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.04%,
1.77%, 0.67% 1.40% and 0.77% for Class A, Class C, Class K, Class R and
Class Y shares, respectively, multiplied by the average account value over
the period, multiplied by 184/366 (to reflect the one-half year period).
Pioneer Equity Income Fund | Annual Report | 10/31/16 17
Schedule of Investments | 10/31/16
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS -- 99.7%
ENERGY -- 8.6%
Oil & Gas Equipment & Services -- 0.3%
418,400 Frank's International NV $ 4,707,000
--------------------------------------------------------------------------------
Integrated Oil & Gas -- 4.2%
269,731 Chevron Corp. $ 28,254,322
199,745 Exxon Mobil Corp. 16,642,753
370,047 Occidental Petroleum Corp. 26,980,127
----------------
$ 71,877,202
--------------------------------------------------------------------------------
Oil & Gas Exploration & Production -- 1.5%
437,472 Anadarko Petroleum Corp. $ 26,003,336
--------------------------------------------------------------------------------
Oil & Gas Refining & Marketing -- 2.6%
469,869 Marathon Petroleum Corp. $ 20,481,590
297,539 Phillips 66 24,145,290
----------------
$ 44,626,880
----------------
Total Energy $ 147,214,418
--------------------------------------------------------------------------------
MATERIALS -- 8.8%
Specialty Chemicals -- 3.9%
247,351 Celanese Corp. $ 18,036,835
4,755 Givaudan SA 9,196,874
189,317 Johnson Matthey Plc 7,902,434
394,532 Syngenta AG (A.D.R.) 31,728,263
----------------
$ 66,864,406
--------------------------------------------------------------------------------
Aluminum -- 0.9%
203,542 Kaiser Aluminum Corp. $ 14,754,760
--------------------------------------------------------------------------------
Diversified Metals & Mining -- 2.8%
325,279 BHP Billiton, Ltd. (A.D.R.) $ 11,391,271
237,600 Compass Minerals International, Inc. 17,071,560
274,951 Materion Corp. 8,331,015
340,125 Rio Tinto Plc 11,822,173
----------------
$ 48,616,019
--------------------------------------------------------------------------------
Copper -- 0.6%
366,433 Southern Copper Corp. $ 10,403,033
--------------------------------------------------------------------------------
Steel -- 0.6%
207,424 Nucor Corp. $ 10,132,662
----------------
Total Materials $ 150,770,880
--------------------------------------------------------------------------------
CAPITAL GOODS -- 5.8%
Aerospace & Defense -- 1.0%
125,125 Raytheon Co. $ 17,093,326
--------------------------------------------------------------------------------
Industrial Conglomerates -- 1.8%
1,084,984 General Electric Co. $ 31,573,034
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
18 Pioneer Equity Income Fund | Annual Report | 10/31/16
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Industrial Machinery -- 2.5%
54,000 Ingersoll-Rand Plc $ 3,633,660
1,363,363 The Gorman-Rupp Co.+ 32,747,979
177,309 The Timken Co. 5,860,062
----------------
$ 42,241,701
--------------------------------------------------------------------------------
Trading Companies & Distributors -- 0.5%
184,056 Wolseley Plc $ 9,577,628
----------------
Total Capital Goods $ 100,485,689
--------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES -- 0.9%
Office Services & Supplies -- 0.6%
192,664 MSA Safety, Inc. $ 11,232,311
--------------------------------------------------------------------------------
Human Resource & Employment Services -- 0.3%
95,096 Randstad Holding NV $ 4,892,403
----------------
Total Commercial Services & Supplies $ 16,124,714
--------------------------------------------------------------------------------
TRANSPORTATION -- 1.3%
Railroads -- 1.3%
145,004 Norfolk Southern Corp. $ 13,485,372
97,059 Union Pacific Corp. 8,558,663
----------------
$ 22,044,035
----------------
Total Transportation $ 22,044,035
--------------------------------------------------------------------------------
CONSUMER SERVICES -- 3.6%
Hotels, Resorts & Cruise Lines -- 1.2%
491,964 InterContinental Hotels Group Plc $ 19,120,267
50,637 InterContinental Hotels Group Plc (A.D.R.) 1,997,630
----------------
$ 21,117,897
--------------------------------------------------------------------------------
Leisure Facilities -- 2.0%
587,087 Cedar Fair LP $ 33,375,896
--------------------------------------------------------------------------------
Restaurants -- 0.4%
48,921 Cracker Barrel Old Country Store, Inc. $ 6,751,098
----------------
Total Consumer Services $ 61,244,891
--------------------------------------------------------------------------------
MEDIA -- 3.5%
Broadcasting -- 1.4%
280,000 CBS Corp. (Class B) $ 15,853,600
132,190 Scripps Networks Interactive, Inc. 8,507,748
----------------
$ 24,361,348
--------------------------------------------------------------------------------
Movies & Entertainment -- 1.2%
500,000 Regal Entertainment Group $ 10,755,000
100,000 Time Warner, Inc. 8,899,000
----------------
$ 19,654,000
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/16 19
Schedule of Investments | 10/31/16 (continued)
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
Publishing -- 0.9%
114,100 John Wiley & Sons, Inc. (Class A) $ 5,887,560
211,887 Meredith Corp. 9,609,075
----------------
$ 15,496,635
----------------
Total Media $ 59,511,983
--------------------------------------------------------------------------------
FOOD & STAPLES RETAILING -- 2.7%
Food Retail -- 1.2%
668,469 The Kroger Co. $ 20,709,170
--------------------------------------------------------------------------------
Hypermarkets & Super Centers -- 1.5%
377,837 Wal-Mart Stores, Inc. $ 26,456,147
----------------
Total Food & Staples Retailing $ 47,165,317
--------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO -- 14.9%
Soft Drinks -- 2.7%
353,400 Dr. Pepper Snapple Group, Inc. $ 31,024,986
343,033 The Coca-Cola Co. 14,544,599
----------------
$ 45,569,585
--------------------------------------------------------------------------------
Packaged Foods & Meats -- 12.2%
38,000 Calavo Growers, Inc. $ 2,247,700
445,005 Campbell Soup Co. 24,181,572
542,570 ConAgra Foods, Inc. 26,141,023
290,559 General Mills, Inc. 18,008,847
80,712 John B Sanfilippo & Son, Inc. 4,090,484
357,785 Kellogg Co. 26,880,387
100,000 McCormick & Co., Inc. 9,587,000
222,793 Mead Johnson Nutrition Co. 16,658,233
769,000 Mondelez International, Inc. 34,558,860
518,396 Pinnacle Foods, Inc. 26,655,922
205,000 The Hershey Co. 21,004,300
----------------
$ 210,014,328
----------------
Total Food, Beverage & Tobacco $ 255,583,913
--------------------------------------------------------------------------------
HOUSEHOLD & PERSONAL PRODUCTS -- 0.9%
Household Products -- 0.9%
129,210 The Clorox Co. $ 15,507,784
----------------
Total Household & Personal Products $ 15,507,784
--------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 4.0%
Health Care Equipment -- 3.1%
224,600 Becton Dickinson and Co. $ 37,712,586
1,026,557 Smith & Nephew Plc 14,865,678
----------------
$ 52,578,264
--------------------------------------------------------------------------------
Health Care Distributors -- 0.9%
489,300 Owens & Minor, Inc. $ 15,877,785
----------------
Total Health Care Equipment & Services $ 68,456,049
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
20 Pioneer Equity Income Fund | Annual Report | 10/31/16
-----------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------
PHARMACEUTICALS, BIOTECHNOLOGY &
LIFE SCIENCES -- 7.5%
Pharmaceuticals -- 7.5%
523,326 AstraZeneca Plc (A.D.R.) $ 14,820,592
142,342 Eli Lilly & Co. 10,510,533
461,065 GlaxoSmithKline Plc (A.D.R.) 18,447,211
156,477 Johnson & Johnson 18,149,767
508,997 Merck & Co., Inc. 29,888,304
415,937 Pfizer, Inc. 13,189,362
481,577 Zoetis, Inc. 23,019,381
---------------
$ 128,025,150
---------------
Total Pharmaceuticals, Biotechnology & Life Sciences $ 128,025,150
-----------------------------------------------------------------------------------
BANKS -- 7.4%
Diversified Banks -- 5.0%
1,773,014 Bank of America Corp. $ 29,254,731
439,611 JPMorgan Chase & Co. 30,447,458
570,545 US Bancorp 25,537,594
---------------
$ 85,239,783
-----------------------------------------------------------------------------------
Regional Banks -- 2.4%
429,675 The PNC Financial Services Group, Inc. $ 41,076,928
---------------
Total Banks $ 126,316,711
-----------------------------------------------------------------------------------
DIVERSIFIED FINANCIALS -- 9.6%
Consumer Finance -- 2.2%
303,741 American Express Co. $ 20,174,477
325,609 Discover Financial Services, Inc. 18,341,555
---------------
$ 38,516,032
-----------------------------------------------------------------------------------
Asset Management & Custody Banks -- 6.0%
668,888 Invesco, Ltd. $ 18,789,064
224,045 Northern Trust Corp. 16,225,339
553,080 State Street Corp. 38,831,747
658,996 The Bank of New York Mellon Corp. 28,514,757
---------------
$ 102,360,907
-----------------------------------------------------------------------------------
Investment Banking & Brokerage -- 1.4%
690,233 Morgan Stanley Co. $ 23,171,122
---------------
Total Diversified Financials $ 164,048,061
-----------------------------------------------------------------------------------
INSURANCE -- 3.6%
Life & Health Insurance -- 2.4%
424,218 Lincoln National Corp. $ 20,824,862
614,991 Sun Life Financial, Inc. 20,589,899
---------------
$ 41,414,761
-----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/16 21
Schedule of Investments | 10/31/16 (continued)
-----------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------
Multi-line Insurance -- 1.2%
468,013 The Hartford Financial Services Group, Inc. $ 20,644,053
---------------
Total Insurance $ 62,058,814
-----------------------------------------------------------------------------------
SOFTWARE & SERVICES -- 1.1%
IT Consulting & Other Services -- 1.1%
159,919 Accenture Plc $ 18,588,985
---------------
Total Software & Services $ 18,588,985
-----------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT -- 2.4%
Semiconductor Equipment -- 0.3%
81,814 Cabot Microelectronics Corp. $ 4,521,042
-----------------------------------------------------------------------------------
Semiconductors -- 2.1%
523,502 Microchip Technology, Inc. $ 31,698,046
99,271 Xilinx, Inc. 5,049,916
---------------
$ 36,747,962
---------------
Total Semiconductors & Semiconductor Equipment $ 41,269,004
-----------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.3%
Integrated Telecommunication Services -- 1.3%
630,725 AT&T, Inc. $ 23,204,373
---------------
Total Telecommunication Services $ 23,204,373
-----------------------------------------------------------------------------------
UTILITIES -- 8.9%
Electric Utilities -- 4.1%
800,138 Alliant Energy Corp. $ 30,445,251
332,057 American Electric Power Co., Inc. 21,530,576
348,814 Eversource Energy 19,205,699
---------------
$ 71,181,526
-----------------------------------------------------------------------------------
Gas Utilities -- 1.4%
453,986 National Fuel Gas Co. $ 23,779,787
-----------------------------------------------------------------------------------
Multi-Utilities -- 3.4%
498,500 Ameren Corp. $ 24,900,075
360,824 Consolidated Edison, Inc. 27,260,253
100,000 WEC Energy Group, Inc. 5,972,000
---------------
$ 58,132,328
---------------
Total Utilities $ 153,093,641
-----------------------------------------------------------------------------------
REAL ESTATE -- 2.9%
Hotel & Resort REIT -- 0.4%
336,165 Chesapeake Lodging Trust $ 7,298,142
-----------------------------------------------------------------------------------
Office REIT -- 0.9%
149,330 Alexandria Real Estate Equities, Inc. $ 16,099,267
-----------------------------------------------------------------------------------
Residential REIT -- 0.6%
128,333 Camden Property Trust $ 10,451,440
-----------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
22 Pioneer Equity Income Fund | Annual Report | 10/31/16
-----------------------------------------------------------------------------------
Shares Value
-----------------------------------------------------------------------------------
Retail REIT -- 0.5%
331,872 Kimco Realty Corp. $ 8,831,114
-----------------------------------------------------------------------------------
Specialized REIT -- 0.5%
359,003 Outfront Media, Inc. $ 7,722,155
---------------
Total Real Estate $ 50,402,118
-----------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,433,500,967) $ 1,711,116,530
-----------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.7%
(Cost $1,433,500,967) (a) $ 1,711,116,530
-----------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 0.3% $ 4,710,878
-----------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 1,715,827,408
===================================================================================
(A.D.R.) American Depositary Receipts.
REIT Real Estate Investment Trust.
+ Investment held by the Fund representing 5% or more of the
outstanding voting stock of such company.
(a) At October 31, 2016, the net unrealized appreciation on investments
based on cost for federal income tax purposes of $1,417,769,423 was
as follows:
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost $ 337,399,008
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value (44,051,901)
--------------
Net unrealized appreciation $ 293,347,107
==============
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 2016, aggregated $732,141,679 and $560,511,977,
respectively.
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Pioneer Investment
Management, Inc. serves as the Fund's investment adviser, as set forth in Rule
17a-7 under the Investment Company Act of 1940, pursuant to procedures adopted
by the Board of Trustees. Under these procedures, cross trades are effected at
current market prices. During the year ended October 31, 2016, the Fund did not
engage in cross trade activity.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes
to Financial Statements -- Note 1A.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/16 23
Schedule of Investments | 10/31/16 (continued)
The following is a summary of the inputs used as of October 31, 2016, in valuing
the Fund's investments:
-----------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------
Common Stocks $ 1,711,116,530 $ -- $ -- $ 1,711,116,530
-----------------------------------------------------------------------------------
Total $ 1,711,116,530 $ -- $ -- $ 1,711,116,530
===================================================================================
During the year ended October 31, 2016, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Equity Income Fund | Annual Report | 10/31/16
Statement of Assets and Liabilities | 10/31/16
ASSETS:
Investment in securities of unaffiliated issuers, at value (cost $1,426,544,203) $ 1,678,368,551
Investment in securities of an affiliated issuer, at value (cost $6,956,764) 32,747,979
------------------------------------------------------------------------------------------------------
Total investments in securities, at value (cost $1,433,500,967) $ 1,711,116,530
Cash 4,048,593
Foreign currency (cost $34) 34
Receivables --
Fund shares sold 5,338,801
Dividends 3,171,642
Other assets 55,328
------------------------------------------------------------------------------------------------------
Total assets $ 1,723,730,928
======================================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 4,861,953
Fund shares repurchased 2,405,755
Trustees fees 5,859
Due to affiliates 158,275
Accrued expenses 471,678
------------------------------------------------------------------------------------------------------
Total liabilities $ 7,903,520
======================================================================================================
NET ASSETS:
Paid-in capital $ 1,233,921,280
Undistributed net investment income 18,498,682
Accumulated net realized gain on investments and foreign currency transactions 185,985,404
Net unrealized appreciation on investments 277,615,563
Net unrealized depreciation on other assets and liabilities
denominated in foreign currencies (193,521)
------------------------------------------------------------------------------------------------------
Net assets $ 1,715,827,408
======================================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $757,157,519/22,428,522 shares) $ 33.76
Class C (based on $140,199,183/4,218,281 shares) $ 33.24
Class K (based on $48,194,468/1,425,293 shares) $ 33.81
Class R (based on $85,307,456/2,491,409 shares) $ 34.24
Class Y (based on $684,968,782/20,085,552 shares) $ 34.10
MAXIMUM OFFERING PRICE:
Class A ($33.76 (divided by) 94.25%) $ 35.82
======================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/16 25
Statement of Operations
For the Year Ended 10/31/16
INVESTMENT INCOME:
Dividends (including dividend income from affiliated issuer of
$572,612 and net of foreign tax withheld of $219,918) $ 49,321,702
Interest 4,226
-----------------------------------------------------------------------------------------------------
Total investment income $ 49,325,928
-----------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 9,476,495
Transfer agent fees
Class A 195,845
Class C 22,706
Class K 562
Class R 1,814
Class Y 1,388
Distribution fees
Class A 1,852,400
Class C 1,256,110
Class R 399,722
Shareholder communications expense 1,682,083
Administrative expense 577,858
Custodian fees 28,873
Registration fees 115,638
Professional fees 87,735
Printing expense 40,226
Fees and expenses of nonaffiliated Trustees 69,621
Interest expense 2,094
Miscellaneous 90,008
-----------------------------------------------------------------------------------------------------
Total expenses $ 15,901,178
-----------------------------------------------------------------------------------------------------
Net investment income $ 33,424,750
=====================================================================================================
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on:
Investments $ 185,422,190
Other assets and liabilities denominated in
foreign currencies (90,776) $ 185,331,414
-----------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments (including from affiliated Issuer
of ($(6,230,569)) $ (94,060,625)
Other assets
and liabilities denominated in foreign currencies (42,713) $ (94,103,338)
-----------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments and
foreign currency transactions $ 91,228,076
-----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 124,652,826
=====================================================================================================
The accompanying notes are an integral part of these financial statements.
26 Pioneer Equity Income Fund | Annual Report | 10/31/16
Statements of Changes in Net Assets
------------------------------------------------------------------------------------------------
Year Ended Year Ended
10/31/16 10/31/15
------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 33,424,750 $ 29,890,363
Net realized gain (loss)on investments and foreign
currency transactions 185,331,414 109,854,036
Change in net unrealized appreciation (depreciation)
on investments and foreign currency transactions (94,103,338) (62,083,192)
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 124,652,826 $ 77,661,207
------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.64 and $0.75 per share, respectively) $ (14,631,603) $ (16,716,779)
Class C ($0.39 and $0.52 per share, respectively) (1,524,980) (1,851,301)
Class K ($0.74 and $0.90 per share, respectively) (700,775) (413,670)
Class R ($0.50 and $0.63 per share, respectively) (1,200,362) (1,405,801)
Class Y ($0.72 and $0.85 per share, respectively) (13,191,469) (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 $ (141,526,066) $ (161,480,583)
------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 515,783,547 $ 328,984,174
Reinvestment of distributions 127,690,144 143,406,591
Cost of shares repurchased (383,348,914) (413,532,740)
------------------------------------------------------------------------------------------------
Net increase in net assets resulting from
Fund share transactions $ 260,124,777 $ 58,858,025
------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 243,251,537 $ (24,961,351)
NET ASSETS:
Beginning of year 1,472,575,871 1,497,537,222
------------------------------------------------------------------------------------------------
End of year $ 1,715,827,408 $ 1,472,575,871
------------------------------------------------------------------------------------------------
Undistributed net investment income $ 18,498,682 $ 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 | Annual Report | 10/31/16 27
Statements of Changes in Net Assets (continued)
-----------------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
10/31/16 10/31/16 10/31/15 10/31/15
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------
Class A
Shares sold 4,060,980 $ 132,286,073 3,282,733 $ 113,641,411
Reinvestment of distributions 2,064,854 66,476,005 2,331,741 79,888,375
Less shares repurchased (4,983,984) (162,722,871) (5,436,294) (187,419,267)
-----------------------------------------------------------------------------------------------------------
Net increase 1,141,850 $ 36,039,207 178,180 $ 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 1,458,384 $ 46,759,574 801,513 $ 27,159,377
Reinvestment of distributions 250,188 7,918,920 249,152 8,418,829
Less shares repurchased (913,737) (29,060,644) (840,599) (28,363,395)
-----------------------------------------------------------------------------------------------------------
Net increase 794,835 $ 25,617,850 210,066 $ 7,214,811
===========================================================================================================
Class K
Shares sold 974,748 $ 32,851,497 391,354 $ 13,488,826
Reinvestment of distributions 62,937 2,041,453 38,678 1,325,294
Less shares repurchased (219,469) (7,376,946) (120,070) (4,116,064)
-----------------------------------------------------------------------------------------------------------
Net increase 818,216 $ 27,516,004 309,962 $ 10,698,056
===========================================================================================================
Class R
Shares sold 875,045 $ 28,894,379 537,104 $ 18,652,763
Reinvestment of distributions 184,599 6,015,720 231,207 8,018,150
Less shares repurchased (746,446) (24,716,408) (733,261) (25,422,340)
-----------------------------------------------------------------------------------------------------------
Net increase 313,198 $ 10,193,691 35,050 $ 1,248,573
===========================================================================================================
Class Y
Shares sold 8,320,341 $ 274,992,024 4,489,448 $ 155,697,868
Reinvestment of distributions 1,389,394 45,238,046 1,320,093 45,617,499
Less shares repurchased (4,814,459) (159,472,045) (4,501,224) (156,053,921)
-----------------------------------------------------------------------------------------------------------
Net increase 4,895,276 $ 160,758,025 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.
28 Pioneer Equity Income Fund | Annual Report | 10/31/16
Financial Highlights
----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
----------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 34.41 $ 36.47 $ 34.35 $ 27.96 $ 26.19
----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.68(a) $ 0.68(a) $ 0.96 $ 0.75 $ 1.05
Net realized and unrealized gain (loss) on investments 1.89 1.16 3.11 6.53 1.56
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.57 $ 1.84 $ 4.07 $ 7.28 $ 2.61
----------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.64) $ (0.75) $ (0.80) $ (0.89) $ (0.84)
Net realized gain (2.58) (3.15) (1.15) -- --
----------------------------------------------------------------------------------------------------------------------
Total distributions $ (3.22) $ (3.90) $ (1.95) $ (0.89) $ (0.84)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.65) $ (2.06) $ 2.12 $ 6.39 $ 1.77
----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.76 $ 34.41 $ 36.47 $ 34.35 $ 27.96
======================================================================================================================
Total return* 8.11% 5.30% 12.33% 26.52% 10.09%
Ratio of net expenses to average net assets 1.04% 1.06% 1.09% 1.10% 1.14%
Ratio of net investment income (loss) to average net assets 2.10% 1.99% 2.56% 2.39% 3.86%
Portfolio turnover rate 35% 40% 29% 26% 49%
Net assets, end of period (in thousands) $757,158 $732,397 $769,869 $826,039 $679,254
======================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/16 29
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
----------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 33.91 $ 36.03 $ 33.94 $ 27.64 $ 25.91
----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.43(a) $ 0.42(a) $ 0.62 $ 0.47 $ 0.84
Net realized and unrealized gain (loss) on investments 1.87 1.13 3.17 6.50 1.54
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.30 $ 1.55 $ 3.79 $ 6.97 $ 2.38
----------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.39) $ (0.52) $ (0.55) $ (0.67) $ (0.65)
Net realized gain (2.58) (3.15) (1.15) -- --
----------------------------------------------------------------------------------------------------------------------
Total distributions $ (2.97) $ (3.67) $ (1.70) $ (0.67) $ (0.65)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.67) $ (2.12) $ 2.09 $ 6.30 $ 1.73
----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.24 $ 33.91 $ 36.03 $ 33.94 $ 27.64
======================================================================================================================
Total return* 7.34%(b) 4.49% 11.57% 25.61% 9.26%
Ratio of net expenses to average net assets 1.77% 1.80% 1.80% 1.84% 1.86%
Ratio of net investment income (loss) to average net assets 1.34% 1.24% 1.83% 1.62% 3.13%
Portfolio turnover rate 35% 40% 29% 26% 49%
Net assets, end of period (in thousands) $140,199 $116,090 $115,762 $104,890 $77,219
======================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) If the Fund had not recognized gains in the settlement of class action
lawsuits during the year ended October 31, 2016, the total return would
have been 7.30%.
The accompanying notes are an integral part of these financial statements.
30 Pioneer Equity Income Fund | Annual Report | 10/31/16
-----------------------------------------------------------------------------------------------------------
Year Year Year
Ended Ended Ended 12/20/12
10/31/16 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) $ 0.80(b) $ 0.80(b) $ 0.96 $ 0.03
Net realized and unrealized gain (loss) on investments 1.89 1.17 3.27 6.63
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.69 $ 1.97 $ 4.23 $ 6.66
-----------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.74) $ (0.90) $ (0.94) $ (0.58)
Net realized gain (2.58) (3.15) (1.15) --
-----------------------------------------------------------------------------------------------------------
Total distributions $ (3.32) $ (4.05) $ (2.09) $ (0.58)
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.63) $ (2.08) $ 2.14 $ 6.08
-----------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 33.81 $ 34.44 $ 36.52 $ 34.38
===========================================================================================================
Total return* 8.50% 5.67% 12.82% 23.72%(a)
Ratio of net expenses to average net assets 0.67% 0.67% 0.69% 0.66%**
Ratio of net investment income (loss) to average net assets 2.42% 2.32% 2.24% 1.84%**
Portfolio turnover rate 35% 40% 29% 26%
Net assets, end of period (in thousands) $48,194 $20,908 $10,849 $ 117
===========================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
(a) Not annualized.
(b) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/16 31
Financial Highlights (continued)
-----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
-----------------------------------------------------------------------------------------------------------------
Class R
Net asset value, beginning of period $ 34.83 $ 36.88 $ 34.71 $ 28.24 $ 26.45
-----------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.57(a) $ 0.57(a) $ 0.88 $ 0.72 $ 1.03
Net realized and unrealized gain (loss) on investments 1.92 1.16 3.11 6.54 1.52
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.49 $ 1.73 $ 3.99 $ 7.26 $ 2.55
-----------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.50) $ (0.63) $ (0.67) $ (0.79) $ (0.76)
Net realized gain (2.58) (3.15) (1.15) -- --
-----------------------------------------------------------------------------------------------------------------
Total distributions $ (3.08) $ (3.78) $ (1.82) $ (0.79) $ (0.76)
-----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.59) $ (2.05) $ 2.17 $ 6.47 $ 1.79
-----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.24 $ 34.83 $ 36.88 $ 34.71 $ 28.24
=================================================================================================================
Total return* 7.73% 4.90% 11.95% 26.13% 9.76%
Ratio of net expenses to average net assets 1.40% 1.41% 1.43% 1.41% 1.41%
Ratio of net investment income (loss) to average net assets 1.73% 1.64% 2.22% 2.09% 3.62%
Portfolio turnover rate 35% 40% 29% 26% 49%
Net assets, end of period (in thousands) $85,307 $75,876 $79,042 $85,986 $79,557
=================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
32 Pioneer Equity Income Fund | Annual Report | 10/31/16
----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/16 10/31/15 10/31/14 10/31/13 10/31/12
----------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 34.71 $ 36.77 $ 34.62 $ 28.17 $ 26.38
----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.77(a) $ 0.78(a) $ 0.98 $ 0.78 $ 1.05
Net realized and unrealized gain (loss) on investments 1.92 1.16 3.23 6.67 1.67
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 2.69 $ 1.94 $ 4.21 $ 7.45 $ 2.72
----------------------------------------------------------------------------------------------------------------------
Distribution to shareowners:
Net investment income $ (0.72) $ (0.85) $ (0.91) $ (1.00) $ (0.93)
Net realized gain (2.58) (3.15) (1.15) -- --
----------------------------------------------------------------------------------------------------------------------
Total distributions $ (3.30) $ (4.00) $ (2.06) $ (1.00) $ (0.93)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.61) $ (2.06) $ 2.15 $ 6.45 $ 1.79
----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 34.10 $ 34.71 $ 36.77 $ 34.62 $ 28.17
======================================================================================================================
Total return* 8.40% 5.56% 12.67% 26.98% 10.47%
Ratio of net expenses to average net assets 0.77% 0.78% 0.79% 0.76% 0.77%
Ratio of net investment income (loss) to average net assets 2.34% 2.26% 2.85% 2.68% 4.20%
Portfolio turnover rate 35% 40% 29% 26% 49%
Net assets, end of period (in thousands) $684,969 $527,305 $510,416 $448,509 $322,567
======================================================================================================================
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
The accompanying notes are an integral part of these financial statements.
Pioneer Equity Income Fund | Annual Report | 10/31/16 33
Notes to Financial Statements | 10/31/16
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 (U.S. GAAP) that require the management
of the Fund to 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 Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
34 Pioneer Equity Income Fund | Annual Report | 10/31/16
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.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. 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 or broker-dealers 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 and a wholly owned
indirect subsidiary of UniCredit S.p.A. (UniCredit), 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
Pioneer Equity Income Fund | Annual Report | 10/31/16 35
disasters, terrorist activity or trading halts. Thus, the valuation of the
Fund's securities may differ significantly from exchange prices and such
differences could be material.
At October 31, 2016, there were no securities that were valued using fair
value methods (other than securities valued using prices supplied by
independent pricing services).
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, 2016, the Fund did not accrue any interest or penalties with
respect to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax returns filed
within the prior three years 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. GAAP. Distributions in excess of net investment
income or net realized gains are temporary overdistributions for financial
statement purposes resulting from differences in the recognition or
classification of income or distributions for financial statement and tax
purposes. Capital accounts within the financial statements are adjusted for
permanent book/tax differences to reflect tax character, but are not
adjusted for temporary differences.
At October 31, 2016, the Fund reclassified $973,983 to decrease
undistributed net investment income and $973,983 to increase accumulated
net realized gain on investments and foreign currency transactions to
reflect permanent book/tax differences. These adjustments have no impact on
net assets or the results of operations.
36 Pioneer Equity Income Fund | Annual Report | 10/31/16
The tax character of distributions paid during the fiscal years ended
October 31, 2016 and October 31, 2015 were as follows:
------------------------------------------------------------------------
2016 2015
------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 31,249,189 $ 33,166,428
Long-term capital gain 110,276,877 128,314,155
------------------------------------------------------------------------
Total $ 141,526,066 $ 161,480,583
========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at October 31, 2016:
--------------------------------------------------------------------------
2016
--------------------------------------------------------------------------
Distributable earnings:
Undistributed ordinary income $ 1,870,936
Undistributed long term capital gain 186,881,606
Net unrealized appreciation 293,153,586
--------------------------------------------------------------------------
Total $ 481,906,128
==========================================================================
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 REIT holdings, common stock 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, earned $113,857
in underwriting commissions on the sale of Class A shares during the year
ended October 31, 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 | Annual Report | 10/31/16 37
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.
2. Management Agreement
PIM manages the Fund's portfolio. Management fees are calculated daily at the
annual rate of 0.60% of the Fund's average daily net assets up to $10 billion
and 0.575% on assets over $10 billion. For the year ended October 31, 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.
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
$116,532, in management fees, administrative costs and certain other
reimbursements payable to PIM at October 31, 2016.
3. Transfer Agent
Boston Financial Data Services, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
38 Pioneer Equity Income Fund | Annual Report | 10/31/16
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareholder communications activities
such as proxy and statement mailings and outgoing phone calls. For the year
ended October 31, 2016, such out-of-pocket expenses by class of shares were as
follows:
--------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------
Class A $ 717,445
Class C 112,445
Class K 993
Class R 186,300
Class Y 664,900
--------------------------------------------------------------------------
Total $1,682,083
==========================================================================
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 $41,743 in distribution
fees payable to PFD at October 31, 2016.
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
Pioneer Equity Income Fund | Annual Report | 10/31/16 39
the original purchase of those shares. There is no CDSC for Class K, Class R or
Class Y shares. Proceeds from the CDSCs are paid to PFD. For the year ended
October 31, 2016, CDSCs in the amount of $24,868 were paid to PFD.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until February 9, 2016, 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 year ended October 31, 2016, the average daily amount of borrowings
outstanding during the period was $7,100,000. The related weighted average
annualized interest rate for the period was 1.25%, and the total interest
expense on such borrowings was $2,094, which is included in interest expense,
located on the Statement of Operations. As of October 31, 2016, there were no
borrowings outstanding.
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 year ended October 31, 2016:
------------------------------------------------------------------------------------------------------------
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 $572,612 $32,747,979 $ --
40 Pioneer Equity Income Fund | Annual Report | 10/31/16
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and the Shareowners of
Pioneer Equity Income Fund:
-------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Pioneer Equity Income Fund (the "Fund"), as of
October 31, 2016, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the three years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for the years ended October 31, 2013, and 2012
were audited by other auditors. Those auditors expressed an unqualified opinion
on those financial statements and financial highlights in their report dated
December 23, 2013.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Fund
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Fund's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2016, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Equity Income Fund as of October 31, 2016, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the three
years in the period then ended, in conformity with accounting principles
generally accepted in the United States of America.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 23, 2016
Pioneer Equity Income Fund | Annual Report | 10/31/16 41
ADDITIONAL INFORMATION (unaudited)
For the year ended October 31, 2016, certain dividends paid by the Fund may be
subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax
Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate up to
the maximum amount of such dividends allowable under the Act, as taxed at a
maximum rate of 15%. Complete information will be computed and reported in
conjunction with your 2016 form 1099-DIV.
The qualifying percentage of the Fund's ordinary income dividends for the
purpose of the corporate dividends received deduction was 100%.
Pioneer Investment Management, Inc. (the "Adviser"), the Fund's investment
adviser, is currently an indirect, wholly owned subsidiary of UniCredit S.p.A.
("UniCredit"). On December 12, 2016, UniCredit announced that it has entered
into a binding agreement for the sale of its Pioneer Investments business, which
includes the Adviser, to Amundi (the "Transaction"). Amundi is headquartered in
Paris, France, and, as of September 30, 2016, had more than $1.1 trillion in
assets under management worldwide. The closing of the Transaction is expected to
happen in 2017, subject to certain regulatory and antitrust approvals, and other
conditions.
Under the Investment Company Act of 1940, the closing of the Transaction will
cause the Fund's current investment advisory agreement with the Adviser to
terminate. Accordingly, the Fund's Board of Trustees will be asked to approve a
new investment advisory agreement for the Fund. If approved by the Board, the
Fund's new investment advisory agreement will be submitted to the shareholders
of the Fund for their approval.
42 Pioneer Equity Income Fund | Annual Report | 10/31/16
Approval of Investment Advisory Agreement
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Equity Income Fund (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. In order for PIM to remain the investment
adviser of the Fund, the Trustees of the Fund must determine annually whether to
renew the investment advisory agreement for the Fund.
The contract review process began in January 2016 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
Contract review materials were provided to the Trustees in March 2016 and May
2016. In addition, the Trustees reviewed and discussed the Fund's performance at
regularly scheduled meetings throughout the year and took into account other
information related to the Fund provided to the Trustees at regularly scheduled
meetings in connection with the review of the Fund's investment advisory
agreement.
In March 2016, the Trustees, among other things, discussed the memorandum
provided by Fund counsel that summarized the legal standards and other
considerations that are relevant to the Trustees in their deliberations
regarding the renewal of the investment advisory agreement, and reviewed and
discussed the qualifications of the investment management teams, as well as the
level of investment by the Fund's portfolio managers in the Fund. In May 2016,
the Trustees, among other things, reviewed the Fund's management fee and total
expense ratios, the financial statements of PIM and its parent companies, the
profitability analyses provided by PIM, and possible economies of scale. The
Trustees also reviewed the profitability of the institutional business of PIM
and PIM's affiliate, Pioneer Institutional Asset Management, Inc. (together with
PIM, "Pioneer"), as compared to that of PIM's fund management business, and
considered the differences between the fees and expenses of the Fund and the
fees and expenses of Pioneer's institutional accounts, as well as the different
services provided by PIM to the Fund and by Pioneer to the institutional
accounts. The Trustees further considered contract review materials in July and
September 2016.
At a meeting held on September 13, 2016, based on their evaluation of the
information provided by PIM and third parties, the Trustees of the Fund,
including the Independent Trustees voting separately, unanimously approved the
renewal of the investment advisory agreement for another year. In approving the
renewal of the investment advisory agreement, the Trustees considered various
factors that they determined were relevant, including the factors described
below. The Trustees did not identify any single factor as the controlling factor
in determining to approve the renewal of the agreement.
Pioneer Equity Income Fund | Annual Report | 10/31/16 43
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM to the Fund, taking into account the investment objective
and strategy of the Fund. The Trustees also reviewed PIM's investment approach
for the Fund and its research process. The Trustees considered the resources of
PIM and the personnel of PIM who provide investment management services to the
Fund. They also reviewed the amount of non-Fund assets managed by the portfolio
managers of the Fund. The Trustees considered the non-investment resources and
personnel of PIM involved in PIM's services to the Fund, including PIM's
compliance and legal resources and personnel. The Trustees noted the substantial
attention and high priority given by PIM's senior management to the Pioneer fund
complex.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers and provides the Fund with personnel (including Fund
officers) and other resources that are necessary for the Fund's business
management and operations. The Trustees also considered that, as administrator,
PIM is responsible for the administration of the Fund's business and other
affairs. The Trustees considered the fees paid to PIM for the provision of
administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM to the Fund were
satisfactory and consistent with the terms of the investment advisory agreement.
Performance of the Fund
In considering the Fund's performance, the Trustees regularly review and discuss
throughout the year data prepared by PIM and information comparing the Fund's
performance with the performance of its peer group of funds as classified by
each of Morningstar, Inc. (Morningstar) and Lipper, and with the performance of
the Fund's benchmark index. They also discuss the Fund's performance with PIM on
a regular basis. The Trustees' regular reviews and discussions were factored
into the Trustees' deliberations concerning the renewal of the advisory
agreement.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense ratios of a peer group of
funds selected on the basis of criteria determined by the Independent Trustees
for this purpose using data provided by Strategic Insight
44 Pioneer Equity Income Fund | Annual Report | 10/31/16
Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent
third party. In all quintile rankings referred to below, first quintile is most
favorable to the Fund's shareowners.
The Trustees considered that the Fund's management fee for the most recent
fiscal year was in the second quintile relative to the management fees paid by
other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoint in the management fee schedule and the
reduced fee rate above a certain asset level. The Trustees considered that the
expense ratio of the Fund's Class A shares for the most recent fiscal year was
in the second quintile relative to its Morningstar peer group and in the third
quintile relative to its Strategic Insight peer group, in each case for the
comparable period. The Trustees considered the impact of transfer agency,
sub-transfer agency, and other non-management fee expenses on the expense ratios
of the Fund. The Trustees noted that they separately review the Fund's transfer
agency, sub-transfer agency and intermediary arrangements and that the results
of the most recent such review were considered in the consideration of the
Fund's expense ratio.
The Trustees reviewed management fees charged by Pioneer to institutional and
other clients, including publicly offered European funds sponsored by affiliates
of Pioneer, unaffiliated U.S. registered investment companies (in a sub-advisory
capacity), and unaffiliated foreign and domestic separate accounts. The Trustees
also considered PIM's costs in providing services to the Fund and Pioneer's
costs in providing services to the other clients and considered the differences
in management fees and profit margins for Fund and non-Fund services. In
evaluating the fees associated with Pioneer's client accounts, the Trustees took
into account the respective demands, resources and complexity associated with
the Fund and client accounts. The Trustees noted that, in some instances, the
fee rates for those clients were lower than the management fee for the Fund and
considered that, under the investment advisory agreement with the Fund, PIM
performs additional services for the Fund that it does not provide to those
other clients or services that are broader in scope, including oversight of the
Fund's other service providers and activities related to compliance and the
extensive regulatory and tax regimes to which the Fund is subject. The Trustees
also considered the different entrepreneurial risks associated with PIM's
management of the Fund and Pioneer's management of the other client accounts.
The Trustees concluded that the management fee payable by the Fund to PIM was
reasonable in relation to the nature and quality of the services provided by PIM
to the Fund.
Pioneer Equity Income Fund | Annual Report | 10/31/16 45
Profitability
The Trustees considered information provided by PIM regarding the profitability
of PIM with respect to the advisory services provided by PIM to the Fund,
including the methodology used by PIM in allocating certain of its costs to the
management of the Fund. The Trustees also considered PIM's profit margin in
connection with the overall operation of the Fund. They further reviewed the
financial results, including the profit margins, realized by PIM and its
affiliates from non-fund businesses. The Trustees considered PIM's profit
margins with respect to the Fund in comparison to the limited industry data
available and noted that the profitability of any adviser was affected by
numerous factors, including its organizational structure and method for
allocating expenses. The Trustees concluded that PIM's profitability with
respect to the management of the Fund was not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoint in the management fee schedule. The Trustees recognize that
economies of scale are difficult to identify and quantify, and that, among other
factors that may be relevant, are the following: fee levels, expense
subsidization, investment by PIM in research and analytical capabilities and
PIM's commitment and resource allocation to the Fund. The Trustees noted that
profitability also may be an indicator of the availability of any economies of
scale, although profitability may vary for other reasons including reductions in
expenses. The Trustees concluded that economies of scale, if any, were being
appropriately shared with the Funds.
Other Benefits
The Trustees considered the other benefits to PIM from its relationship with the
Fund. The Trustees considered the character and amount of fees paid by the Fund,
other than under the investment advisory agreement, for services provided by PIM
and its affiliates. The Trustees further considered the revenues and
profitability of PIM's businesses other than the fund business. Pioneer is the
principal U.S. asset management business of Pioneer Global Asset Management, the
worldwide asset management business of UniCredit Group, which manages over $150
billion in assets (including the Funds). Pioneer and the Funds receive
reciprocal intangible benefits from the relationship, including mutual brand
recognition and, for the Funds, direct and indirect access to the resources of a
large global asset manager. The Trustees concluded that any such benefits
received by Pioneer as a result of its
46 Pioneer Equity Income Fund | Annual Report | 10/31/16
relationship with the Funds were reasonable and their consideration of the
advisory agreement between the Fund and PIM and the fees thereunder were
unaffected by Pioneer's possible receipt of any such intangible benefits.
Conclusion
After consideration of the factors described above as well as other factors, the
Trustees, including all of the Independent Trustees, concluded that the
investment advisory agreement between PIM and the Fund, including the fees
payable thereunder, was fair and reasonable and voted to approve the proposed
renewal of the investment advisory agreement for the Fund.
Pioneer Equity Income Fund | Annual Report | 10/31/16 47
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
Boston Financial Data Services, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and officers are listed below, together with their principal
occupations during at least the past five years. Trustees who are interested
persons of the Fund within the meaning of the 1940 Act are referred to as
Interested Trustees. Trustees who are not interested persons of the Fund are
referred to as Independent Trustees. Each of the Trustees serves as a Trustee of
each of the 45 U.S. registered investment portfolios for which Pioneer serves as
investment adviser (the "Pioneer Funds"). The address for all Trustees and all
officers of the Fund is 60 State Street, Boston, Massachusetts 02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
48 Pioneer Equity Income Fund | Annual Report | 10/31/16
Independent Trustees
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (66) Trustee since 2006. Private investor (2004 - 2008 and 2013 - Director, Broadridge
Chairman of the Board Serves until a present); Chairman (2008 - 2013) and Chief Financial Solutions, Inc.
and Trustee successor trustee Executive Officer (2008 - 2012), Quadriserv, (investor communications
is elected or Inc. (technology products for securities and securities processing
earlier retirement lending industry); and Senior Executive provider for financial
or removal. Vice President, The Bank of New York services industry) (2009 -
(financial and securities services) (1986 - present); Director,
2004) Quadriserv, Inc. (2005 -
2013); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
present)
--------------------------------------------------------------------------------------------------------------------------------
David R. Bock (72) Trustee since 2005. Managing Partner, Federal City Capital Director of New York
Trustee Serves until a Advisors (corporate advisory services Mortgage Trust
successor trustee company) (1997 - 2004 and 2008 - present); (publicly-traded mortgage
is elected or Interim Chief Executive Officer, Oxford REIT) (2004 - 2009, 2012 -
earlier retirement Analytica, Inc. (privately-held research present); Director of The
or removal. and consulting company) (2010); Executive Swiss Helvetia Fund, Inc.
Vice President and Chief Financial Officer, (closed-end fund) (2010 -
I-trax, Inc. (publicly traded health care present); Director of
services company) (2004 - 2007); and Oxford Analytica, Inc.
Executive Vice President and Chief (2008 - present); and
Financial Officer, Pedestal Inc. Director of Enterprise
(internet-based mortgage trading company) Community Investment, Inc.
(2000 - 2002); Private consultant (privately-held affordable
(1995-1997), Managing Director, Lehman housing finance company)
Brothers (investment banking firm) (1985 - 2010)
(1992-1995); and Executive, The World Bank
(1979-1992)
--------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (72) Trustee since 2008. William Joseph Maier Professor of Political Trustee, Mellon
Trustee Serves until a Economy, Harvard University (1972 - Institutional Funds
successor trustee present) Investment Trust and
is elected or Mellon Institutional Funds
earlier retirement Master Portfolio (oversaw
or removal. 17 portfolios in fund
complex) (1989-2008)
--------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/16 49
Independent Trustees (continued)
--------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
--------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (69) Trustee since 1990. Founding Director, Vice President and None
Trustee Serves until a Corporate Secretary, The Winthrop Group,
successor trustee Inc. (consulting firm) (1982 - present);
is elected or Desautels Faculty of Management, McGill
earlier retirement University (1999 - present); and Manager of
or removal. Research Operations and Organizational
Learning, Xerox PARC, Xerox's advance
research center (1990-1994)
--------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (68) Trustee since 1990. President and Chief Executive Officer, Director of New America High
Trustee Serves until a Newbury Piret Company (investment banking Income Fund, Inc.
successor trustee firm) (1981 - present) (closed-end investment
is elected or company) (2004 - present);
earlier retirement and Member, Board of
or removal. Governors, Investment
Company Institute (2000 -
2006)
--------------------------------------------------------------------------------------------------------------------------------
Fred J. Ricciardi (69) Trustee since 2014. Consultant (investment company services) None
Trustee Serves until a (2012 - present); Executive Vice President,
successor trustee BNY Mellon (financial and investment company
is elected or services) (1969 - 2012); Director, BNY
earlier retirement International Financing Corp. (financial
or removal. services) (2002 - 2012); and Director,
Mellon Overseas Investment Corp. (financial
services) (2009 - 2012)
--------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Equity Income Fund | Annual Report | 10/31/16
Interested Trustee
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Principal Occupation Other Directorships
Position Held With the Fund Length of Service Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Kenneth J. Taubes (58)* Trustee since 2014. Director and Executive Vice President None
Trustee Serves until a (since 2008) and Chief Investment Officer,
successor trustee U.S. (since 2010) of PIM-USA; Executive
is elected or Vice President of Pioneer (since 2008);
earlier retirement Executive Vice President of Pioneer
or removal. Institutional Asset Management, Inc.
(since 2009); and Portfolio Manager of
Pioneer (since 1999)
---------------------------------------------------------------------------------------------------------------------------------
* Mr. Taubes is an Interested Trustee because he is an officer of the Fund's
investment adviser and certain of its affiliates.
Pioneer Equity Income Fund | Annual Report | 10/31/16 51
Advisory Trustee
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Trustee
---------------------------------------------------------------------------------------------------------------------------------
Lorraine Monchak (60)** Advisory Trustee Chief Investment Officer, 1199 SEIU Funds Trustee of Pioneer
Advisory Trustee since 2014. (healthcare workers union pension funds) closed-end investment
(2001 - present); Vice President - companies (5 portfolios)
International Investments Group, American (Sept. 2015 - present)
International Group, Inc. (insurance
company) (1993 - 2001); Vice President
Corporate Finance and Treasury Group,
Citibank, N.A.(1980 - 1986 and 1990 -
1993); Vice President - Asset/Liability
Management Group, Federal Farm Funding
Corporation (government-sponsored issuer of
debt securities) (1988 - 1990); Mortgage
Strategies Group, Shearson Lehman Hutton,
Inc. (investment bank) (1987 - 1988); and
Mortgage Strategies Group, Drexel Burnham
Lambert, Ltd. (investment bank) (1986 -
1987)
---------------------------------------------------------------------------------------------------------------------------------
** Ms. Monchak is a non-voting advisory trustee.
52 Pioneer Equity Income Fund | Annual Report | 10/31/16
Fund Officers
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
---------------------------------------------------------------------------------------------------------------------------------
Lisa M. Jones (54) Since 2014. Chair, Director, CEO and President of Trustee of Pioneer
President and Serves at the Pioneer Investment Management-USA (since closed-end investment
Chief Executive Officer discretion of the September 2014); Chair, Director, CEO and companies (5 portfolios)
Board. President of Pioneer Investment Management, (Sept. 2015 - present)
Inc. (since September 2014); Chair,
Director, CEO and President of Pioneer
Funds Distributor, Inc. (since September
2014); Chair, Director, CEO and President
of Pioneer Institutional Asset Management,
Inc. (since September 2014); and Chair,
Director, and CEO of Pioneer Investment
Management Shareholder Services, Inc.
(since September 2014); Managing Director,
Morgan Stanley Investment Management (2010
- 2013); and Director of Institutional
Business, CEO of International, Eaton Vance
Management (2005 - 2010)
---------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (51) Since 2003. Vice President and Associate General None
Secretary and Chief Legal Serves at the Counsel of Pioneer since January 2008;
Officer discretion of the Secretary and Chief Legal Officer of all of
Board. the Pioneer Funds since June 2010;
Assistant Secretary of all of the Pioneer
Funds from September 2003 to May 2010; and
Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
---------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (55) Since 2010. Serves Fund Governance Director of Pioneer since None
Assistant Secretary at the discretion December 2006 and Assistant Secretary of
of the Board. all the Pioneer Funds since June 2010;
Manager - Fund Governance of Pioneer from
December 2003 to November 2006; and Senior
Paralegal of Pioneer from January 2000 to
November 2003
---------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (53) Since 2010. Senior Counsel of Pioneer since May 2013 None
Assistant Secretary Serves at the and Assistant Secretary of all the Pioneer
discretion of the Funds since June 2010; and Counsel of
Board. Pioneer from June 2007 to May 2013
---------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (56) Since 2008. Vice President - Fund Treasury of Pioneer; None
Treasurer and Serves at the Treasurer of all of the Pioneer Funds since
Chief Financial and discretion of the March 2008; Deputy Treasurer of Pioneer
Accounting Officer Board. from March 2004 to February 2008; and
Assistant Treasurer of all of the Pioneer
Funds from March 2004 to February 2008
---------------------------------------------------------------------------------------------------------------------------------
Pioneer Equity Income Fund | Annual Report | 10/31/16 53
Fund Officers (continued)
---------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held With the Fund Length of Service Principal Occupation Held by Officer
---------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (51) Since 2000. Director - Fund Treasury of Pioneer; and None
Assistant Treasurer Serves at the Assistant Treasurer of all of the Pioneer
discretion of the Funds
Board.
---------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (58) Since 2002. Fund Accounting Manager - Fund Treasury of None
Assistant Treasurer Serves at the Pioneer; and Assistant Treasurer of all of
discretion of the the Pioneer Funds
Board.
---------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (36) Since 2009. Fund Administration Manager - Fund Treasury None
Assistant Treasurer Serves at the of Pioneer since November 2008; Assistant
discretion of the Treasurer of all of the Pioneer Funds since
Board. January 2009; and Client Service Manager -
Institutional Investor Services at State
Street Bank from March 2003 to March 2007
---------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (64) Since 2010. Chief Compliance Officer of Pioneer and of None
Chief Compliance Officer Serves at the all the Pioneer Funds since March 2010;
discretion of the Chief Compliance Officer of Pioneer
Board. Institutional Asset Management, Inc. since
January 2012; Chief Compliance Officer of
Vanderbilt Capital Advisors, LLC since July
2012: Director of Adviser and Portfolio
Compliance at Pioneer since October 2005;
and Senior Compliance Officer for Columbia
Management Advisers, Inc. from October 2003
to October 2005
---------------------------------------------------------------------------------------------------------------------------------
Kelly O'Donnell (45) Since 2006. Serves Director - Transfer Agency Compliance of None
Anti-Money Laundering at the discretion Pioneer and Anti-Money Laundering Officer
Officer of the Board. of all the Pioneer Funds since 2006
---------------------------------------------------------------------------------------------------------------------------------
54 Pioneer Equity Income Fund | Annual Report | 10/31/16
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/16 55
This page for your notes.
56 Pioneer Equity Income Fund | Annual Report | 10/31/16
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/16 57
This page for your notes.
58 Pioneer Equity Income Fund | Annual Report | 10/31/16
This page for your notes.
Pioneer Equity Income Fund | Annual Report | 10/31/16 59
This page for your notes.
60 Pioneer Equity Income Fund | Annual Report | 10/31/16
How to Contact Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Pioneer Funds
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: us.pioneerinvestments.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at 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 19439-10-1216
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
The audit fees for the Fund were $25,538
payable to Deloitte & Touche LLP for the year ended
October 31, 2016 and $25,500 for the year ended October 31, 2015.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
There were no audit-related services in 2016 or 2015.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
The tax fees for the Fund were $8,778
payable to Deloitte & Touche LLP for the year ended
October 31, 2016 and $8,750 for the year ended October 31, 2015.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
There were no other fees in 2016 or 2015.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Fund's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Fund. For the
years ended October 31 2016 and 2015, there were no
services provided to an affiliate that required the
Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund were $8,778
payable to Deloitte & Touche LLP for the year ended
October 31, 2016 and $8,750 for the year ended October 31, 2015.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Equity Income Fund
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 29, 2016
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date December 29, 2016
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date December 29, 2016
* Print the name and title of each signing officer under his or her signature.