[PIONEER LOGO]
Pioneer
World Equity
Fund
SEMIANNUAL REPORT 9/30/97
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Table of Contents
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Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 18
Notes to Financial Statements 24
Report of Independent Public Accountants 29
Trustees, Officers and Service Providers 30
Programs and Services for Pioneer Shareowners 32
Retirement Plans from Pioneer 34
The Pioneer Family of Mutual Funds 36
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Pioneer World Equity Fund
LETTER FROM THE CHAIRMAN 9/30/97
Dear Shareowner,
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I am pleased to introduce this report for Pioneer World Equity Fund, covering
the six months from March 31 through September 30, 1997. On behalf of the
Fund's investment team, I thank you for your interest and this opportunity to
comment briefly on today's investing environment.
As we prepare this report in the final week of October, the world's stock
markets have demonstrated unprecedented volatility. Asian markets plunged
suddenly, after languishing for several months as they digested currency and
economic changes. In the United States, we've seen the Dow Jones Industrial
Average take a break from its exhilarating upward climb to experience - in the
space of two days - both the biggest one-day point drop and the biggest one-day
point gain. European markets also bounced around, shaken by the drop in Asia
and then heartened by the speedy U.S. rebound. Even Latin American markets were
affected, mostly in a chain reaction from nervous investors.
What does all of this mean for investors? Perhaps the most important lesson is
the value of discipline. We've just had a powerful demonstration of how
difficult, if not impossible, it is to "time the market" to buy only when
prices are lowest and sell only when prices are highest. We believe it is
important to buy a stock for the right reasons and at prices that make sense
given a realistic outlook for the company's prospects. We also believe in
holding a stock until its price rises to what we think is its full value, or we
have reason to believe it won't meet our expectations. While market swings such
as those we're experiencing now are unnerving, they shouldn't deter investors
from pursuing long-term strategies designed to meet long-term goals.
I encourage you to read on to learn more about your Fund and our efforts to
build a solid foundation for long-term success. Please contact your investment
representative, or us at 1-800-225-6292, if you have questions about Pioneer
World Equity Fund.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
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Pioneer World Equity Fund
PORTFOLIO SUMMARY 9/30/97
P o r t f o l i o D i v e r s i f i c a t i o n
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(As a percentage of total investment portfolio)
[Pie Chart]
Short-Term Cash Equivalents 5.3%
International Preferred Stocks 3.2%
U.S. Common Stocks 18.9%
Depositary Receipts for International Stocks 5.2%
International Common Stocks 67.4%
G e o g r a p h i c a l D i s t r i b u t i o n
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(As a percentage of equity holdings)
[Bar Chart]
United States 20.0%
Japan 12.3%
Great Britain 5.7%
Germany 5.1%
Italy 4.8%
Netherlands 4.3%
Brazil 4.3%
France 4.2%
Switzerland 4.0%
Hong Kong 3.8%
Canada 3.4%
Australia 3.0%
Spain 2.9%
Finland 2.7%
Sweden 2.4%
Mexico 2.3%
Argentina 2.2%
South Korea 2.2%
Austria 1.7%
Indonesia 1.4%
Belgium 1.3%
Malaysia 1.3%
Norway 1.3%
Singapore 1.0%
Denmark 0.8%
India 0.7%
Thailand 0.5%
Chile 0.4%
1 0 L a r g e s t H o l d i n g s
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(As a percentage of equity holdings)
1. Telecomunicacoes 1.26% 6. NV Koninklijke KNP BT 1.13%
Brasileiras SA (Preferred)
(Sponsored A.D.R.)
2. State Street Corp. 1.19 7. Petroleo Brasileiro SA 1.13
(Preferred)
3. Shohkoh Fund & Co., Ltd. 1.16 8. Banca Fideuram SpA 1.12
4. Hong Kong and China Gas 1.15 9. Raisio Group Plc 1.11
Co., Ltd.
5. Rohm Co., Ltd. 1.15 10. Sony Corp. 1.11
Fund holdings will vary for other periods.
2
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Pioneer World Equity Fund
PERFORMANCE UPDATE 9/30/97 CLASS A SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
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Net Asset Value
per Share 9/30/97 3/31/97
$18.82 $16.67
Distributions per Share Income Short-Term Long-Term
(3/31/97 -9/30/97) Dividends Capital Gains Capital Gains
- - -
I n v e s t m e n t R e t u r n s
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The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer World Equity Fund at public offering price, compared to the growth
of the Morgan Stanley Capital International (MSCI) World Index.
Cumulative Total Returns
(As of September 30, 1997)
Net Asset Public Offering
Period Value Price*
Life-of-Fund 25.67% 18.41%
(10/31/96)
Growth of $10,000
Pioneer World
Equity Fund* MSCI World Index
10/96 9425 10000
10101 10558
10174 10387
10413 10511
10627 10629
10488 10417
10482 10755
11401 11417
11784 11984
12174 12534
11224 11693
09/97 11841 12327
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 22 markets. It includes the United States and all countries in the
MSCI EAFE (Europe, Australasia, Far East) Index. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees, expenses or sales charges. You cannot invest directly in the
Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
3
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Pioneer World Equity Fund
PERFORMANCE UPDATE 9/30/97 CLASS B SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
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Net Asset Value
per Share 9/30/97 3/31/97
$18.64 $16.59
Distributions per Share Income Short-Term Long-Term
(3/31/97 -9/30/97) Dividends Capital Gains Capital Gains
- - -
I n v e s t m e n t R e t u r n s
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The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer World Equity Fund, compared to the growth of the Morgan Stanley
Capital International (MSCI) World Index.
Cumulative Total Returns
(As of September 30, 1997)
If If
Period Held Redeemed*
Life-of-Fund 24.27% 20.27%
(10/31/96)
1 Year 10.45 6.44
Growth of $10,000
Pioneer World
Equity Fund* MSCI World Index
10/96 10000 10000
10680 10558
10747 10387
10987 10511
11207 10629
11060 10417
11040 10755
12000 11417
12393 11984
12793 12534
11787 11693
09/97 12027 12327
* Reflects deduction of the maximum applicable contingent deferred sales charge
(CDSC) at the end of the period and assumes reinvestment of distributions. The
maximum CDSC of 4% declines over six years.
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 22 markets. It includes the United States and all countries in the
MSCI EAFE (Europe, Australasia, Far East) Index. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees, expenses or sales charges. You cannot invest directly in the
Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
4
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Pioneer World Equity Fund
PERFORMANCE UPDATE 9/30/97 CLASS C SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
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Net Asset Value
per Share 9/30/97 3/31/97
$18.67 $16.62
Distributions per Share Income Short-Term Long-Term
(3/31/97 -9/30/97) Dividends Capital Gains Capital Gains
- - -
I n v e s t m e n t R e t u r n s
- ----------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer World Equity Fund, compared to the growth of the Morgan Stanley
Capital International (MSCI) World Index.
Cumulative Total Returns
(As of September 30, 1997)
If If
Period Held Redeemed*
Life-of-Fund 24.47% 23.47%
(10/31/96)
Growth of $10,000
Pioneer World
Equity Fund* MSCI World Index
10/96 10000 10000
10733 10558
10773 10387
11020 10511
11233 10629
11080 10417
11060 10755
12020 11417
12413 11984
12813 12534
11807 11693
09/97 12347 12327
* Reflects deduction of the 1% contingent deferred sales charge (CDSC) at
the end of the period and assumes reinvestment of distributions.
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 22 markets. It includes the United States and all countries in the
MSCI EAFE (Europe, Australasia, Far East) Index. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees, expenses or sales charges. You cannot invest directly in the
Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
5
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Pioneer World Equity Fund
PORTFOLIO MANAGEMENT DISCUSSION 9/30/97
Dear Shareowner,
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Mounting concerns over Southeast Asia created a tough environment for stocks in
the Pacific Rim, but we are pleased to report that Pioneer World Equity Fund
delivered a total return of nearly 13% for the six months ended September 30,
1997. Investments in Latin America, Europe and the United States boosted
performance; however, the Morgan Stanley Capital International (MSCI) World
Index, which has a 47% weighting in U.S. stocks, returned 18%. Your Fund, by
design, limits U.S. holdings to allow participation in a greater diversity of
markets around the globe.
Developed Markets of U.S. and Europe Continued to Surge
Bolstered by solid growth, low unemployment and low inflation, America's
economic expansion is noteworthy not only for its vigor but for its staying
power. The Standard & Poor's 500 Index and the technology-laden Nasdaq
Composite Index posted gains of 26% and 38%, respectively, for the six months
ended September 30. While the near-term outlook for the U.S. economy and
corporate America is generally favorable, we remain committed to the Fund's
global diversity and expect to keep U.S. holdings in the range of 20%-25% of
equity holdings - less than the amount allocated in the MSCI World Index, but
enough to participate significantly in the U.S. market.
A number of factors helped move European stock prices higher. An improving
outlook for the Continent is reflecting favorably on the euro, Europe's common
currency. Local currencies also improved, and the yields in various bond
markets have drawn closer together. Bond prices rose in Italy and Spain,
lowering yields. In addition, a strong dollar and the lowest interest rates in
three decades are increasing exports and, in turn, capital investment.
The Fund's financial holdings directly benefited from this favorable
environment and Europe's trend toward greater investment and pension asset
management. Italy was one of the best performing European markets for the six
months - up 30%. Banca Fideuram and Mediolanum were up 80% and 85%,
respectively. Spain, home to Banco de Santander - another financial institution
benefiting from the tremendous growth of assets, was another top performing
market.
6
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Pioneer World Equity Fund
Emerging Markets Rocked by Uncertainty in Southeast Asia
Southeast Asia's financial markets struggled for much of the period, haunted by
speculation of a devaluation in Thailand's currency - which ultimately took
place on July 2. A run on the Thai baht deteriorated into a meltdown of the
region's currency and equity markets. By the close of the semiannual period,
however, reforms imposed by the International Monetary Fund bailout package
were having their desired effect - helping place Thailand on more sound footing
and seeming to calm investors' fears throughout the "tiger" countries of Asia.
While the crisis was not entirely unforeseen, it can be said that its
suddenness and severity were more widespread than most analysts had predicted.
Thankfully, we'd anticipated slower growth in the Pacific Rim - particularly in
Thailand - and had limited holdings there throughout 1997. Nevertheless, the
downturn did take its toll. Combined, investments in Indonesia, Malaysia and
Thailand totaled 5% at the start of the fiscal year; by September 30, they had
decreased to 3.2% of equity holdings.
Japanese stocks, which made up 12% of equity holdings on September 30, also
proved disappointing. Prime Minister Hashimoto's austerity program - aimed at
shrinking a sizable budget deficit - is stifling economic growth. While reform
efforts are well-received by foreign investors, they are meeting considerable
resistance in Japan. In anticipation of choppy waters in the short term - and
the potential opportunities they create to "buy low" - we've begun to select
well-managed companies that are restructuring and are likely to benefit from
deregulation. Daiwa Securities and Nomura Securities exemplify this strategy.
These potential investment powerhouses are repositioning for a more global
financial marketplace with lower barriers separating banks and brokers, reduced
stock trading commissions and a larger, more visible role for foreign money
managers.
Latin America Posted Strong Gains
While the regionwide meltdown of Southeast Asia's financial markets did spark
some initial signs of a "domino effect" throughout other emerging markets,
these concerns appeared to be overblown. Latin American markets, which were
particularly skittish in August, weathered the storm well. Economic reform,
corporate restructuring, relatively low inflation and high growth continued to
drive performance in this region.
7
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Pioneer World Equity Fund
PORTFOLIO MANAGEMENT DISCUSSION 9/30/97 (continued)
Benefiting from its trade flows with the United States, Mexico was up 45% for
the six months. In Brazil, President Cardoso's inflation-fighting measures have
been successful, but the country's currency - the real - has climbed. There is
talk of a devaluation, but at this time we believe a devaluation is unlikely.
Investors are pleased with the pace of reform, especially the privatization of
several utilities. Petroleo Brasileiro, a large holding, was up 60% on news
that it will begin exploration activities. Further along in its economic
reform, Argentina is recovering nicely from a recession - with the broad market
up 25% over the six months.
Heeding the Lessons of a Global Market
Today the nations of Southeast Asia are at a crossroads. We view recent events
in Southeast Asia with an opportunistic eye, aware that these developing
markets are in the midst of decisive change. As Business Week said, "Slower
growth and vulnerability to global market forces are the contours of a new
reality for Southeast Asia. . . If Southeast Asia looks to Mexico for
inspiration, it could yet turn the crisis into an opportunity."
We'll monitor the situation closely, searching for signs that the tiger
countries are willing to open their economies further - by improving
disclosure, ceasing intervention in currency and equity markets, and lowering
interest rates. However this situation plays itself out, rest assured that we
remain committed to the Fund's global diversification and will continue to
strategically adjust the portfolio to capture what we believe are the best
growth possibilities available at any given time.
Respectfully,
/s/ Patrick M. Smith
Patrick M. Smith,
Portfolio Manager
8
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Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 9/30/97
Shares Value
INVESTMENT IN SECURITIES - 94.7%
PREFERRED STOCKS - 4.4%
300,000 Banco Itau SA $ 193,875
350,000 Centrais Electricas Brasileiras SA 197,435
2,100 Henkel KGaA 118,400
1,620,000 Petroleo Brasileiro SA 461,372
4,000 Telecomunicacoes Brasileiras SA (Sponsored A.D.R.) 515,000
1,250,000 Telecomunicacoes de Sao Paulo SA 382,228
30,504 Telecomunicacoes de Sao Paulo SA (Receipts)* 9,328
-----------
Total Preferred Stocks
(Cost $1,495,166) $ 1,877,638
-----------
COMMON STOCKS - 90.3%
Basic Industries - 4.2%
Chemicals - 0.5%
5,600 BASF AG $ 202,247
-----------
Containers - 2.1%
17,000 NV Koninklijke KNP BT $ 463,893
2,000 Schmalbach Lubeca AG 435,312
-----------
$ 899,205
-----------
Forest Products - 0.6%
10,000 UPM-Kymmene Corp. $ 278,300
-----------
Iron & Steel - 1.0%
2,800 Boehler-Uddeholm AG $ 235,294
2,580 Pohang Iron & Steel Co. 204,948
-----------
$ 440,242
-----------
Total Basic Industries $ 1,819,994
-----------
Capital Goods - 14.1%
Aerospace - 0.6%
46,000 Mitsubishi Heavy Industries, Ltd. $ 251,977
-----------
Construction & Engineering - 7.0%
13,000 AGCO Corp. $ 411,938
200 ABB AG (Bearer Shares) 294,554
26,000 Cemex, SA (Class B) 155,766
18,000 Charter Plc 239,382
70,000 Cheung Kong Infrastructure Holdings 208,969
11,000 Hollandsche Beton Groep NV 226,644
The accompanying notes are an integral part of these financial statements. 9
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Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 9/30/97(continued)
Shares Value
Construction & Engineering - (continued)
10,000 Larsen & Toubro (G.D.R.) $ 130,000
70,000 Leighton Holdings Ltd. 370,960
13,000 National House Industrial Co. 134,665
15,000 Sho-Bond Corp. 308,279
6,000 Siam Cement Public Co., Ltd. 99,749
6,500 Stork NV 288,105
800 VA Technologies AG 171,509
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$ 3,040,520
-----------
Producer Goods - 1.7%
42,000 ALFA, SA de CV $ 394,594
2,000 Hoya Corp. 67,457
600 IWKA AG 149,274
2,000 Sidel, SA 131,139
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$ 742,464
-----------
Telecommunications - 4.8%
2,900 Alcatel Alsthom SA $ 385,679
11,000 Ascend Communications, Inc.* 356,125
13,500 BCE, Inc. 403,852
26,000 Glenayre Technologies, Inc.* 435,500
4,500 Lucent Technologies, Inc. 366,188
2,500 Telefonaktiebolaget LM Ericsson (Series B) 120,140
-----------
$ 2,067,484
-----------
Total Capital Goods $ 6,102,445
-----------
Consumer Durables - 1.5%
Motor Vehicles - 1.5%
40,800 CIADEA SA $ 99,980
19,000 Edaran Otomobile Nasional Bhd. 76,135
20,000 First Tractor Co., Ltd. (H Shares)* 16,412
27,000 Suzuki Motor Co., Ltd. 259,551
2,250 Sylea 214,280
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Total Consumer Durables $ 666,358
-----------
Consumer Non-Durables - 14.3%
Agriculture & Food - 2.5%
120,000 IOI Corp. Bhd. $ 121,323
8,000 Louis Dreyfus Citrus* 255,400
4,000 Raisio Group Plc 455,641
10 The accompanying notes are an integral part of these financial statements.
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Pioneer World Equity Fund
Shares Value
Agriculture & Food - (continued)
1,250,000 Tingyi Holding Co. $ 248,772
------------
$ 1,081,136
------------
Home Products - 1.9%
4,500 Autobacs Seven Co., Ltd. $ 210,698
5,500 Deluxe Corp. 184,594
10,000 Safilo SpA 271,703
25,000 Tomkins Plc 140,244
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$ 807,239
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Retail Food - 4.0%
8,000 Centro Comerciales Pryca SA $ 149,528
4,300 Delhaize-Le Lion, SA 212,229
39,000 Food Lion, Inc. (Class A) 325,406
13,000 Food Lion, Inc. (Class B) 104,000
6,500 G.I.B. Holdings Ltd. 335,070
15,000 Metro-Richelieu, Inc. 175,801
6,000 Wm. Wrigley Jr. Co. 451,875
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$ 1,753,909
------------
Retail Non-Food - 4.9%
10,248 Cifra SA de CV (Series A) $ 22,949
160,000 Cifra SA de CV (Series C) 350,476
10,000 Deodeo Corp. 82,871
7,500 Home Depot, Inc. 390,937
7,000 Kesko 97,273
22,000 Marks & Spencer Plc 224,842
3,600 Metro AG 165,475
200,000 PT Matahari Putra Prima 68,389
12,000 Toys "R" Us, Inc.* 426,000
12,900 Woolworth Corp.* 285,413
------------
$ 2,114,625
------------
Soft Drinks - 0.4%
6,500 Embotelladora Andina SA (A.D.R.) $ 167,375
------------
Textile & Clothes - 0.6%
8,000 Fila Holding SpA (Sponsored A.D.R.) $ 247,500
------------
Total Consumer Non-Durables $ 6,171,784
------------
The accompanying notes are an integral part of these financial statements. 11
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Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 9/30/97(continued)
Shares Value
Energy - 5.2%
Oil & Gas Extraction - 3.7%
13,200 Canadian Natural Resources Ltd.* $ 389,148
34,000 Chesapeake Energy Corp. 386,750
2,400 Elf Aquitaine SA 320,397
3,500 Norsk Hydro AS 208,568
2,000 OMV AG 298,339
-----------
$ 1,603,202
-----------
Oil Refineries & Drilling - 0.9%
11,000 YPF SA (Class D) (Sponsored A.D.R.) $ 405,625
-----------
Oil Services - 0.6%
3,000 Bouygues Offshore SA $ 147,152
4,500 Bouygues Offshore SA (Sponsored A.D.R.) 112,500
-----------
$ 259,652
-----------
Total Energy $ 2,268,479
-----------
Financial - 18.9%
Commercial Banks - 7.0%
46,000 Banco Popolare di Milano $ 269,154
9,000 Banco de Santander SA 294,835
9,210 Banco Frances Del Rio Plata SA (A.D.R.) 301,052
4,700 DePfa-Bank 282,019
40,000 First Bangkok City Bank Public Co., Ltd. 21,757
130 Julius Baer Holding AG 199,773
6,795 Kookmin Bank 83,070
5,000 Mellon Bank Corp. 273,750
21,600 Overseas-Chinese Banking Corp., Ltd. 149,696
6,950 Shinhan Bank 58,334
8,000 State Street Corp. 487,500
18,000 Sumitomo Trust & Banking 179,001
2,500 Svenska Handelsbanken 86,685
7,000 Toronto-Dominion Bank 237,764
1,700 Unidanmark A/S 109,899
-----------
$ 3,034,289
-----------
Misc. Finance - 3.4%
110,000 Banca Fideuram SpA $ 458,825
510,014 Bank International Indonesia 147,268
5,700 HSBC Holdings Plc 190,786
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
Shares Value
Misc. Finance - (continued)
1,700 Shohkoh Fund & Co., Ltd. $ 474,766
1,100 SLM Holdings Corp. 169,950
----------
$1,441,595
----------
Insurance - 6.5%
9,000 Ambac Financial Group, Inc. $ 366,187
5,500 Corporacion Mapfre 308,769
6,300 ING Groep NV 289,371
55,600 Malaysian Assurance Alliance Bhd. 149,958
23,000 Mediolanum SpA 373,085
190,000 National Mutual Holdings Ltd. 321,378
8,000 Pohjola Insurance Group (Series B) 284,350
11,000 QBE Insurance Group Ltd. 69,402
50,000 Reinsurance Australia Corp. 136,479
1,300 Union Des Assurances Federal 138,269
850 Zurich Versicherungsgesellschaft (Registered) 369,946
----------
$2,807,194
----------
Investments - 1.3%
40,000 Daiwa Securities Co., Ltd. $ 245,297
25,000 Nomura Securities Co., Ltd. 325,267
----------
$ 570,564
----------
Real Estate - 0.3%
60,000 Wing Tai Holdings Ltd. $ 123,962
----------
Real Estate Investment Trust - 0.4%
30,000 New World Development Co., Ltd. $ 181,442
----------
Total Financial $8,159,046
----------
Miscellaneous - 0.8%
100,000 Pt Bimantara Citra $ 101,824
24,000 Hutchinson Whampoa Ltd. 236,495
----------
Total Miscellaneous $ 338,319
----------
Services - 13.6%
Hotel\Restaurant - 1.2%
7,500 McDonald's Corp. $ 357,188
39,000 Overseas Union Enterprise Ltd. 155,541
----------
$ 512,729
----------
Pharmaceuticals - 6.3%
6,000 Amersham International Plc $ 202,145
5,333 Astra AB 98,435
The accompanying notes are an integral part of these financial statements. 13
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Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 9/30/97(continued)
Shares Value
Pharmaceuticals - (continued)
35,000 Biora AB* $ 327,625
5,000 Biora AB (A.D.R.)* 93,750
17,000 Daiichi Pharmaceutical Co. 250,767
54,000 F.H. Faulding & Co., Ltd. 323,411
7,000 Gehe AG 378,025
4,300 Merck & Co., Inc. 429,731
75 Novartis AG 114,996
1,000 Novo Nordisk A/S (Class B) 111,757
16 Roche Holdings AG 141,914
10,000 Yamanouchi Pharmaceutical Co., Ltd. 246,954
------------
$ 2,719,510
------------
Publishing - 2.1%
28,000 Elsevier NV $ 406,654
19,000 Schibsted ASA 331,514
67,000 Star Publications (Malaysia) 154,889
------------
$ 893,057
------------
Misc. Services - 4.0%
25,000 Compass Group Plc $ 274,846
27,000 Electrocomponents Plc 200,211
2,000 Hagemeyer NV 102,015
21,000 Hays Plc 237,641
3,000 ISS International Service System AS (Class B)* 95,855
70 Kuoni Reisen Holding AG (Series B) (Registered) 278,672
78,000 Rentokil Initial Plc 321,884
700 SGS Holdings SA 233,430
------------
$ 1,744,554
------------
Total Services $ 5,869,850
------------
Technology - 9.4%
Computer Services - 2.6%
8,000 Automatic Data Processing, Inc. $ 400,000
11,000 First Data Corp. 413,188
14,000 SunGard Data Systems Inc.* 339,500
------------
$ 1,152,688
------------
Electronics - 6.8%
5,000 Cisco Systems, Inc.* $ 365,313
9,000 Esselte AB (Series B) 264,605
24,000 Hitachi, Ltd. 208,834
5,000 Kyocera 326,924
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
Shares Value
Electronics - (continued)
10,000 LSI Logic Corp.* $ 321,250
7,000 Mabuchi Motor Co., Ltd. 397,365
4,000 Rohm Co., Ltd. 470,705
2,400 Samsung Display Devices Co. 121,618
4,800 Sony Corp. 453,468
------------
$ 2,930,082
------------
Total Technology $ 4,082,770
------------
Transportation - 1.2%
Air Transport - 0.7%
29,000 BAA Plc $ 280,956
------------
Railroad & Bus - 0.5%
20,000 Stagecoach Holdings Plc $ 220,844
------------
Total Transportation $ 501,800
------------
Utilities - 7.1%
Electric Utility - 1.0%
8,000 Iberdrola SA $ 98,345
750 Viag AG 335,739
------------
$ 434,084
------------
Gas Utility - 1.3%
1,700 Consolidated Natural Gas Co. $ 98,919
229,000 Hong Kong and China Gas Co., Ltd. 472,027
------------
$ 570,946
------------
Telecommunications - 4.8%
15,000 Advanced Information Service, Plc $ 100,418
2,150 Bell Canada International Inc.*+ 40,581
25 DDI Corp. 125,549
15,000 Manitoba Telecom Services Inc. 168,747
70,000 PT Indosat (Foreign) 177,128
65,000 PT Telekomunikasi Indonesia (Series B) 71,618
670 SK Telecom Co., Ltd. 418,768
32,000 Technology Resources Industries Bhd. 38,863
3,400 Telecom Argentina Stet-France Telecom SA
(Sponsored A.D.R.) 103,487
40,000 Telecom Italia SpA 266,489
18,000 Telecom Italia SpA Di Risp 70,023
10,000 Telefonica de Espana SA 314,196
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 9/30/97(continued)
Shares Value
Telecommunications - (continued)
10,000 Videsh Sanchar Nigam Ltd. (G.D.R.)* $ 168,750
-----------
$ 2,064,617
-----------
Total Utilities $ 3,069,647
-----------
Total Common Stocks
(Cost $35,831,895) $39,050,492
-----------
WARRANT - 0%
8,892 Bank International Indonesia, 1/17/00* $ 754
-----------
Total Warrant
(Cost $2,552) $ 754
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $37,329,613)(a) $40,928,884
-----------
Principal
Amount
TEMPORARY CASH INVESTMENT - 5.3%
Repurchase Agreement - 5.3%
$2,300,000 Chase Manhattan Bank, 10/1/97, 5.95%, repurchase
price of $2,300,000 plus accrued interest on
10/1/97, collateralized by $2,232,000 U.S. Treasury
Note, 8.875%, 2/15/99 $ 2,300,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $2,300,000) $ 2,300,000
-----------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY
CASH INVESTMENT - 100%
(Cost $39,629,613)(b) $43,228,884
-----------
* Non-income producing security.
+ When-issued security.
(a) Distribution of investments by country of issue, as a percentage of total
investment in securities, is as follows:
United States 20.0%
Japan 12.3
Great Britain 5.7
Germany 5.1
Italy 4.8
Netherlands 4.3
Brazil 4.3
France 4.2
Switzerland 4.0
Hong Kong 3.8
Canada 3.4
Australia 3.0
Spain 2.9
Finland 2.7
Sweden 2.4
Mexico 2.3
Argentina 2.2
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
South Korea 2.2%
Austria 1.7
Indonesia 1.4
Belgium 1.3
Malaysia 1.3
Norway 1.3
Singapore 1.0
Other (individually less than 1%) 2.4
------
100.0%
------
(b) At September 30, 1997, the net unrealized gain on investments based on
cost for federal income tax purposes of $39,640,002 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $ 5,908,050
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (2,319,168)
------------
Net unrealized gain $ 3,588,882
------------
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended September 30, 1997 aggregated $19,176,331 and $3,779,056,
respectively.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer World Equity Fund
BALANCE SHEET 9/30/97
ASSETS:
Investment in securities, at value (including temporary cash
investment of $2,300,000) (cost $39,629,613) $43,228,884
Cash 134,058
Receivables -
Investment securities sold 235,695
Fund shares sold 269,758
Dividends, interest and foreign taxes withheld 76,855
Other 4,631
-----------
Total assets $43,949,881
-----------
LIABILITIES:
Payables -
Investment securities purchased $ 624,610
Due to broker 235,694
Fund shares repurchased 55,532
Forward foreign currency settlement contracts - net 6,562
Due to affiliates 46,064
Accrued expenses 46,067
-----------
Total liabilities $ 1,014,529
-----------
NET ASSETS:
Paid-in capital $38,978,871
Accumulated undistributed net investment income 54,717
Accumulated undistributed net realized gain on investments
and foreign currency transactions 303,033
Net unrealized gain on investments 3,599,271
Net unrealized loss on forward foreign currency contracts
and other assets and liabilities denominated in foreign
currencies (540)
-----------
Total net assets $42,935,352
-----------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $31,301,367/1,663,074 shares) $ 18.82
-----------
Class B (based on $10,534,330/565,063 shares) $ 18.64
-----------
Class C (based on $1,099,655/58,897 shares) $ 18.67
-----------
MAXIMUM OFFERING PRICE:
Class A $ 19.97
-----------
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
STATEMENT OF OPERATIONS
For the Six Months Ended 9/30/97
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $28,402) $ 350,106
Interest (net of foreign taxes withheld of $1) 49,551
----------
Total investment income $ 399,657
----------
EXPENSES:
Management fees $ 170,909
Transfer agent fees
Class A 37,547
Class B 14,883
Class C 1,575
Distribution fees
Class A 14,807
Class B 41,648
Class C 3,616
Accounting 41,586
Custodian fees 37,610
Registration fees 34,881
Professional fees 35,765
Printing 9,289
Fees and expenses of nonaffiliated trustees 9,351
Miscellaneous 22,829
----------
Total expenses $ 476,296
Less management fees waived by Pioneering
Management Corporation (124,712)
Less fees paid indirectly (9,242)
----------
Net expenses $ 342,342
----------
Net investment income $ 57,315
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain from:
Investments $ 190,511
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 3,503 $ 194,014
---------- ----------
Change in net unrealized gain from:
Investments $3,300,277
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (588) $3,299,689
---------- ----------
Net gain on investments and foreign currency transactions $3,493,703
----------
Net increase in net assets resulting from operations $3,551,018
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer World Equity Fund
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended 9/30/97 and the Period Ended 3/31/97
Six Months 10/31/96 to
Ended 9/30/97 3/31/97
FROM OPERATIONS:
Net investment income (loss) $ 57,315 $ (6,243)
Net realized gain on investments and foreign
currency transactions 194,014 114,446
Change in net unrealized gain on investments
and foreign currency transactions 3,299,689 299,042
------------ ------------
Net increase in net assets resulting from
operations $ 3,551,018 $ 407,245
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.00 and $0.00 per share, respectively) $ - $ (1,226)
Net realized gain:
Class A ($0.00 and $0.03 per share, respectively) - (7,460)
------------ ------------
Total distributions to shareholders $ - $ (8,686)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 22,844,666 $25,408,485
Reinvestment of distributions - 8,577
Cost of shares repurchased (6,854,162) (2,721,791)
------------ ------------
Net increase in net assets resulting from
fund share transactions $ 15,990,504 $22,695,271
------------ ------------
Net increase in net assets $ 19,541,522 $23,093,830
NET ASSETS:
Beginning of period 23,393,830 300,000
------------ ------------
End of period (including accumulated undistributed
net investment income (loss) of $54,717 and
$(2,598), respectively) $ 42,935,352 $23,393,830
------------ ------------
CLASS A 9/97 Shares 9/97 Amount 3/97 Shares 3/97 Amount
Shares sold 865,795 $ 15,815,611 1,164,983 $ 19,052,048
Reinvestment of
distributions - - 542 8,577
Less shares
repurchased (265,904) (4,897,366) (109,009) (1,752,377)
--------- ------------ --------- ------------
Net increase 599,891 $ 10,918,245 1,056,516 $ 17,308,248
--------- ------------ --------- ------------
CLASS B
Shares sold 352,091 $ 6,357,569 373,327 $ 6,095,061
Less shares
repurchased (106,926) (1,948,012) (60,096) (961,072)
--------- ------------ --------- ------------
Net increase 245,165 $ 4,409,557 313,231 $ 5,133,989
--------- ------------ --------- ------------
CLASS C
Shares sold 37,435 $ 671,486 15,778 $ 261,376
Less shares
repurchased (472) (8,784) (511) (8,342)
--------- ------------ --------- ------------
Net increase 36,963 $ 662,702 15,267 $ 253,034
--------- ------------ --------- ------------
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
FINANCIAL HIGHLIGHTS 9/30/97
Six Months 10/31/96 to
Ended 9/30/97 3/31/97
CLASS A
Net asset value, beginning of period $ 16.67 $15.00
------- --------
Increase from investment operations:
Net investment income $ 0.04 $ 0.01
Net realized and unrealized gain on
investments and foreign currency
transactions 2.11 1.69
------- --------
Net increase from investment operations $ 2.15 $ 1.70
Distributions to shareholders:
Net realized gain - (0.03)
------- --------
Net increase in net asset value $ 2.15 $ 1.67
------- --------
Net asset value, end of period $ 18.82 $16.67
------- --------
Total return* 12.90% 11.32%
Ratio of net expenses to average net assets 1.80%**+ 1.80%**+
Ratio of net investment income to average net
assets 0.53%**+ 0.08%**+
Portfolio turnover rate 23%** 18%**
Average commission rate paid(1) $0.0150 $0.0128
Net assets, end of period (in thousands) $31,301 $17,723
Ratio assuming no waiver of management fees
and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 2.53%** 3.70**
Net investment loss (0.20)%** (1.82)%**
Ratio assuming waiver of management fees and
assumption of expenses by PMC and
reduction for fees paid indirectly:
Net expenses 1.75%** 1.75**
Net investment income 0.58%** 0.13**
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer World Equity Fund
FINANCIAL HIGHLIGHTS 9/30/97
Six Months 10/31/96 to
Ended 9/30/97(a) 3/31/97
CLASS B
Net asset value, beginning of period $ 16.59 $15.00
-------- -------
Increase (decrease) from investment
operations:
Net investment loss $(0.03) $(0.03)
Net realized and unrealized gain on
investments and foreign currency
transactions 2.08 1.62
-------- -------
Net increase in net asset value $ 2.05 $ 1.59
-------- -------
Net asset value, end of period $ 18.64 $16.59
-------- -------
Total return* 12.36% 10.60%
Ratio of net expenses to average net assets 2.74%**+ 2.85%**+
Ratio of net investment loss to average net
assets (0.42)%**+ (0.99)%**+
Portfolio turnover rate 23%** 18%**
Average commission rate paid(1) $0.0150 $0.0128
Net assets, end of period (in thousands) $10,534 $ 5,306
Ratios assuming no waiver of management fees
and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 3.46%** 4.51%**
Net investment loss (1.14)%** (2.65)%**
Ratios assuming waiver of management fees
and assumption of expenses by PMC and
reduction for fees paid indirectly:
Net expenses 2.66%** 2.77%**
Net investment loss (0.34)%** (0.91)%**
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
FINANCIAL HIGHLIGHTS 9/30/97
Six Months 10/31/96 to
Ended 9/30/97(a) 3/31/97
CLASS C
Net asset value, beginning of period $16.62 $15.00
------- -------
Increase (decrease) from investment operations:
Net investment loss $(0.04) $(0.07)
Net realized and unrealized gain on
investments and foreign currency
transactions 2.09 1.69
------- -------
Net increase in net asset value $ 2.05 $ 1.62
------- -------
Net asset value, end of period $18.67 $16.62
------- -------
Total return* 12.33% 10.80%
Ratio of net expenses to average net assets 2.81%**+ 3.74%**+
Ratio of net investment loss to average net
assets (0.56)%**+ (1.77)%**+
Portfolio turnover rate 23%** 18%**
Average commission rate paid(1) $0.0150 $0.0128
Net assets, end of period (in thousands) $ 1,100 $ 365
Ratios assuming no waiver of management fees
and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 3.54%** 4.91%**
Net investment loss (1.29)%** (2.94)%**
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction
for fees paid indirectly:
Net expenses 2.70%** 3.69%**
Net investment loss (0.45)%** (1.72)%**
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements. 23
<PAGE>
Pioneer World Equity Fund
NOTES TO FINANCIAL STATEMENTS 9/30/97
1. Organization and Significant Accounting Policies
Pioneer World Equity Fund (the Fund) is a Delaware business trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund was organized on July 26, 1996 and commenced
operations on October 31, 1996. Prior to October 31, 1996, the Fund had no
operations other than those relating to organizational matters and the initial
capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD). The
investment objective of the Fund is to seek long-term growth of capital.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
Shares of Class A, Class B and Class C each represent an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees and have exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B and Class C shareholders, respectively.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to,
among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts
of revenues and expenses during the reporting periods. Actual results could
differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Fund, which are in conformity
with those generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded on trade date. Each day, securities are
valued at the last sale price on the principal exchange where they are
traded. Securities that have not traded on the date of valuation, or
securities for which sale prices are not generally reported, are valued at
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available are valued at their fair values as
determined by, or under the direction of, the Board of Trustees. Trading in
foreign securities is substantially completed each day at various times prior
to the close of the New York Stock Exchange. The values of such securities
used in computing the net asset value of the Fund's shares are determined as
of such times. Dividend income is recorded on the ex-dividend date, except
that certain dividends from foreign secu-
24
<PAGE>
Pioneer World Equity Fund
rities where the ex-dividend date may have passed are recorded as soon as the
Fund is informed of the ex-dividend data in the exercise of reasonable
diligence. Interest income is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities that have
the highest cost and qualify for long-term capital gain or loss treatment for
tax purposes.
The Fund's investments in emerging markets or countries with limited or
developing markets may subject the Fund to greater degree of risk than in a
developed market. Risks associated with these developing markets include
political, social or economic factors and may affect the price of the Fund's
investments and income generated by these investments, as well as the Fund's
ability to repatriate such amounts.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollar actually received. Further, the
effects of changes in foreign currency exchange rates on investments are not
segregated in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the time
a portfolio hedge is offset by entry into a
25
<PAGE>
Pioneer World Equity Fund
NOTES TO FINANCIAL STATEMENTS 9/30/97(continued)
closing transaction or extinguished by delivery of the currency. Risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar.
As of September 30, 1997, the Fund had no outstanding portfolio hedges. The
Fund's gross forward foreign currency settlement contracts receivable and
payable were $459,565 and $466,127, respectively, resulting in a net payable
of $6,562 at September 30, 1997.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
E. Fund Shares
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations are absorbed by PFD, the
principal underwriter for the Fund and an indirect subsidiary of The Pioneer
Group, Inc. (PGI). PFD earned $13,046 in underwriting commissions on the sale
of fund shares during the six months ended September 30, 1997.
F. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Shareholders of each class share all expenses and fees paid to
the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expense (see Note 3).
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to
26
<PAGE>
Pioneer World Equity Fund
each class of shares based on the respective percentage of adjusted net
assets at the beginning of the day.
Distributions to shareholders 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, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest received
from counterparties, is required to be at least equal to or in excess of the
value of the repurchase agreement at the time of purchase. The collateral for
all repurchase agreements is held in safekeeping in the customer-only account
of the Fund's custodian, or subcustodians. The Fund's investment adviser,
Pioneering Management Corporation (PMC), is responsible for determining that
the value of the collateral remains at least equal to the repurchase price.
2. Management Agreement
PMC manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 1.00% of the Fund's
average daily net assets up to $300 million; 0.85% of the next $200 million; and
0.75% of the excess over $500 million.
PMC has agreed not to impose a portion of its management fee and to assume
other operating expenses of the Fund to the extent necessary to limit Class A
expenses to 1.75% of the average daily net assets attributable to Class A
shares; the portion of the Fund-wide expenses attributable to Class B and Class
C shares will be reduced only to the extent that such expenses are reduced for
Class A shares. PMC's agreement is voluntary and temporary and may be revised
or terminated at any time.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. At September 30, 1997, $9,085 was payable to PMC related to
management fees and certain other services.
27
<PAGE>
Pioneer World Equity Fund
NOTES TO FINANCIAL STATEMENTS 9/30/97 (continued)
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in due
to affiliates is $9,576 in transfer agent fees payable to PSC at September 30,
1997.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the Investment
Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service
fee of up to 0.25% of the Fund's average daily net assets in reimbursement of
its actual expenditures to finance activities primarily intended to result in
the sale of Class A shares. Pursuant to the Class B Plan and the Class C Plan,
the Fund pays PFD 1.00% of the average daily net assets attributable to each
class of shares. The fee consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class
C shares. Included in due to affiliates is $27,403 in distribution fees payable
to PFD at September 30, 1997.
In addition, redemptions of each class of 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 one year of
purchase. Class B shares that are redeemed within six years of purchase are
subject to a CDSC at declining rates beginning at 4.0%, based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%. Proceeds from the
CDSC are paid to PFD. For the six months ended September 30, 1997, CDSCs in the
amount of $9,031 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the six months ended September 30,
1997, the Fund's expenses were reduced by $9,242 under such arrangements.
28
<PAGE>
Pioneer World Equity Fund
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and the Board of Trustees of Pioneer World Equity Fund:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer World Equity Fund as of September 30, 1997, and the
related statement of operations, the statements of changes in net assets, and
the financial highlights for the periods presented. These financial statements
and the financial highlights are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
September 30, 1997 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
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 World Equity Fund as of September 30, 1997, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
October 31, 1997
29
<PAGE>
Pioneer World Equity Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Richard H. Egdahl, M.D. Pesident
Margaret B.W. Graham David D. Tripple, Executive Vice Pesident
John W. Kendrick Patrick M. Smith, Vice President
Marguerite A. Piret William H. Keough, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
30
<PAGE>
This page for your notes.
31
<PAGE>
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
Your investment representative can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-800-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 13-digit account number and four-digit personal identification number at
hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as
you meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
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Automatic Exchange Program
A simple way to move money from a money market or bond fund into a stock fund
over a period of time. Just invest a lump sum in a Pioneer money market fund or
bond fund. Then, select the Pioneer equity fund or funds you wish to invest in,
and choose the amounts and dates for Pioneer to sell shares of your money
market or bond fund and use the proceeds to buy shares of the Pioneer equity
fund you have chosen. Over time, your original investment will be shifted to
your Pioneer equity fund.
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals.
You decide the frequency and the day of the month you want. Pioneer will send
the proceeds by check to the address you designate, or electronically to your
bank account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available only for accounts with a value of $10,000 or
more.)
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RETIREMENT PLANS FROM PIONEER
Pioneer has a long history of helping people work toward their retirement
goals, offering plans suited to the individual investor and businesses of all
sizes. For more information on Pioneer retirement plans, contact your
investment professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 70-1/2 with earned
income to contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
The Roth IRA came about as part of the Taxpayer Relief Act of 1997 and is
available to investors in 1998. Contributions, up to $2,000 a year, are not
tax-deductible, but earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $9,500 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match PLan for Employees)
401(k) or IRA Plan
Businesses with 100 or fewer eligible employees can establish either plan; both
resemble the traditional 401(k), but with less testing and lower administration
costs. Employees can make pre-tax contributions of up to $6,000 per year, and
an employer contribution is required.
Most retirement plan withdrawals must meet
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403(b) Plan
Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is available only to
employees of public schools, not-for-profit hospitals and other tax-exempt
organizations. A 403(b) plan lets employees set aside a portion of their
salary, before taxes, through payroll deduction.
Simplified Employee Pension Plan (SEP)
SEPs let self-employed people and small-business owners make tax-deductible
contributions of up to 15% of their income. Generally, employers must
contribute the same percentage of pay for themselves and any eligible
employees; contributions are made directly to employees' IRAs. SEPs are easy to
administer and can be an especially good choice for firms with few or no
employees.
Profit Sharing Plan
Profit sharing plans offer companies considerable flexibility, allowing them to
decide each year whether a contribution will be made and how much, up to 15% of
each participant's pay. These plans can include provisions for loans and
vesting schedules.
Age-Weighted Profit Sharing Plan
Like traditional profit sharing plans, employer contributions are flexible, but
age-weighted plans allocate contributions based on both age and salary. Age-
weighted plans are designed for employers who want to maximize their own
contributions while keeping contributions to employees affordable.
Money Purchase Pension Plan (MPP)
Money purchase plans are similar to profit-sharing plans, but allow for higher
annual contributions--up to 25% of pay. MPPs aren't as flexible as profit
sharing plans; a fixed percentage of pay must be contributed each year,
determined when the plan is established. Businesses often set up both MPPs and
profit sharing plans.
specific conditions to avoid penalties.
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THE PIONEER FAMILY OF MUTUAL FUNDS
For information about any Pioneer mutual fund, please contact your investment
professional, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds Global/International
Pioneer Emerging Markets Fund Invests for long-term growth of capital primarily
from stocks of companies located in countries with emerging economies.
Pioneer Europe Fund Invests for long-term growth of capital primarily from
stocks of both Eastern and Western European companies.
Pioneer Gold Shares Invests for long-term capital appreciation from stocks of
companies engaged in the mining, processing, refining or sale of gold or other
precious metals.
Pioneer India Fund Invests for long-term growth of capital primarily from
stocks of Indian companies.
Pioneer International Growth Fund Invests for long-term growth of capital from
a broadly diversified portfolio primarily of stocks of companies in both
established and emerging markets.
Pioneer World Equity Fund Invests for long-term growth of capital from a
diversified portfolio of large- and mid-sized companies located throughout the
world.
Growth Funds United States
Pioneer Capital Growth Fund Invests for long-term capital appreciation from a
diversified portfolio of securities, primarily common stocks, that exhibit
undervalued, undiscovered or turnaround characteristics.
Pioneer Growth Shares Invests for long-term capital appreciation primarily from
common stocks of companies believed to have better-than-average earnings growth
potential and well-established market positions.
Pioneer Micro-Cap Fund Invests for long-term capital appreciation from stocks
of companies with market capitalizations of $300 million or less at the time of
purchase.
Pioneer Mid-Cap Fund Invests for long-term capital growth primarily from stocks
of companies with market capitalizations between $100 million and $5 billion at
the time of purchase.
Pioneer Small Company Fund Invests for long-term capital appreciation primarily
from stocks of small companies capitalized at $1 billion or less at time of
purchase.
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Growth and Income Funds
Pioneer Balanced Fund Invests for a balance of capital growth and income;
growth from common stocks and securities with common stock characteristics;
income dividends primarily from dividend-paying bonds and stocks.
Pioneer Equity-Income Fund Invests for current income and long-term growth of
capital primarily from income-producing stocks and convertible securities of
U.S. corporations.
Pioneer Fund Invests for reasonable income and long-term growth of capital
primarily from common stocks, preferred stocks and securities convertible into
common stocks.
Pioneer Real Estate Shares Invests for long-term growth of capital primarily
from stocks of real estate investment trusts (REITs) and other real estate
industry companies. Income is a secondary objective.
Pioneer II Invests for reasonable income and growth of capital primarily from
stocks of U.S. companies; up to 25% of assets may be invested in equity
securities of companies based outside of the U.S.
Income Funds Taxable
Pioneer America Income Trust Invests for high current income, consistent with
preservation of capital, from securities issued by the U.S. government and its
agencies.
Pioneer Bond Fund Invests for current income, consistent with preservation of
capital, from a high-quality portfolio with at least 85% U.S. government
securities and corporate bonds rated "A" or higher.
Pioneer Short-Term Income Trust Invests for high current income, consistent
with relatively strong stability of principal, from high-quality, short-term
debt securities; portfolio has an average maturity of three years or less.
Income Funds Tax-Exempt
Pioneer Intermediate Tax-Free Fund Invests for high current income, exempt from
federal income taxes, from high-quality municipal bonds; portfolio has an
average maturity of 10 years or less.
Pioneer Tax-Free Income Fund Invests for high current income, exempt from
federal income taxes, consistent with preservation of capital, primarily from
high-quality municipal bonds.
Money Market Fund
Pioneer Cash Reserves Fund Invests for high current income and preservation of
capital from high-quality money market instruments issued by the U.S.
government, corporations and banks.
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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
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
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Pioneer Funds Distributor, Inc.
60 State Street 1197 - 4586
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
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