[Pioneer logo]
Pioneer
World Equity
Fund
A N N U A L R E P O R T 3 / 3 1 / 9 7
<PAGE>
T a b l e o f C o n t e n t s
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Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 10
Financial Statements 19
Notes to Financial Statements 25
Report of Independent Public Accountants 30
Trustees, Officers and Service Providers 31
Programs and Services for Pioneer Shareowners 34
The Pioneer Family of Mutual Funds 37
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Pioneer World Equity Fund
LETTER FROM THE CHAIRMAN 3/31/97
D e a r S h a r e o w n e r ,
-----------------------------------------------------------------------------
I am pleased to introduce the first annual report for Pioneer World Equity
Fund. This report covers the period from the Fund's inception on October 31,
1996, through the close of its fiscal year on March 31, 1997. On behalf of
the Fund's investment management team, I thank you for your interest in the
Fund.
Pioneer World Equity Fund is a way for investors to participate in the
fortunes of a wide assortment of countries and companies. Your management
team, with the direction of portfolio manager Patrick Smith, looks for
investments they believe will produce strong long-term results. The Fund's
portfolio emphasizes established markets and large, leading companies in
emerging markets. In this way, the Fund is designed to be fairly conservative
- - a good choice as a "core holding" for a variety of investors. Your Fund's
i
nvestment strategy was successful in this initial period, and the Fund
outperformed the overall markets, despite widely varying performance in
individual countries.
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. Thank you for your support.
Respectfully,
/s/ John F. Cogan, Jr.,
John F. Cogan, Jr.,
Chairman and President
1
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Pioneer World Equity Fund
PORTFOLIO SUMMARY 3/31/97
P o r t f o l i o D i v e r s i f i c a t i o n
-----------------------------------------------------------------------------
(As a percentage of total investment portfolio)
- -------------------------------- [PIE CHART] ----------------------------------
International Common Stocks 68.2%
U.S. Common Stocks 18.0%
Short-Term Cash Equivalents 6.4%
Depositary Receipts for International Stocks 3.6%
International Preferred Stocks 3.3%
Convertible Securities 0.5%
- -------------------------------------------------------------------------------
G e o g r a p h i c a l D i s t r i b u t i o n
- -----------------------------------------------------------------------------
(As a percentage of equity holdings)
- ------------------------------- [BAR CHART] ----------------------------------
United States 19% Argentina 2%
Japan 13% Austria 2%
France 5% Finland 2%
Germany 5% Indonesia 2%
Great Britain 5% Malaysia 2%
Italy 5% Mexico 2%
Netherlands 5% Norway 2%
Brazil 4% Singapore 2%
Hong Kong 4% Sweden 2%
Spain 4% Belgium 1%
Australia 3% China 1%
Canada 3% Denmark 1%
Switzerland 3% Thailand 1%
- -------------------------------------------------------------------------------
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. Louis Dreyfus Citrus 1.25% 6. Telecommunicacoes
Brasileiras SA
(Sponsored A.D.R.) 1.16%
2. McDonald's Corp 1.22 7. Schmalbach Lubeca AG 1.15
3. Schibsted ASA 1.20 8. Sony Corp. 1.14
4. Canadian Natural Resources Ltd. 1.17 9. First Data Corp. 1.08
5. Banca Popolare de Milano 1.17 10. Cisco Systems, Inc. 1.05
Fund holdings will vary for other periods.
2
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Pioneer World Equity Fund
PERFORMANCE UPDATE 3/31/97 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
- -----------------------------------------------------------------------------
Net Asset Value
per Share 3/31/97 10/31/96
$16.67 $15.00
Distributions per Share Income Short-Term Long-Term
(10/31/96-3/31/97) Dividends Capital Gains Capital Gains
$0.0037 $0.0222 -
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
n 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 March 31, 1997)
Period Net Asset Public Offering
Value Price*
Life-of-Fund 11.32% 4.88%
(10/31/96)
* Reflects deduction of the maximum 5.75%
sales charge at the beginning of the
period and assumes reinvestment of
distributions at net asset value.
- ---------------------------- [Mountain chart] --------------------------------
Growth of $10,000
Pioneer World MSCI World
Equity Fund* Index
------------- ----------
10/96 9,425 10,000
11/96 10,101 10,545
12/96 10,174 10,361
1/97 10,413 10,471
2/97 10,627 10,577
3/97 10,488 10,353
- -------------------------------------------------------------------------------
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 3/31/97 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
- -----------------------------------------------------------------------------
Net Asset Value
per Share 3/31/97 10/31/96
$16.59 $15.00
Distributions per Share Income Short-Term Long-Term
(10/31/96-3/31/97) 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 March 31, 1997)
Period If If
Held Redeemed*
Life-of-Fund 10.60% 6.60%
(10/31/96)
* 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.
- ---------------------------- [Mountain chart] --------------------------------
Growth of $10,000
Pioneer World MSCI World
Equity Fund* Index
------------- ----------
10/96 10000 10000
11/96 10733 10545
12/96 10773 10361
1/97 11020 10471
2/97 11233 10577
3/97 10660 10353
- -------------------------------------------------------------------------------
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 3/31/97 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
- -----------------------------------------------------------------------------
Net Asset Value
per Share 3/31/97 10/31/96
$16.62 $15.00
Distributions per Share Income Short-Term Long-Term
(10/31/96-3/31/97) 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 March 31, 1997)
Period If If
Held Redeemed*
Life-of-Fund 10.80% 9.80%
(10/31/96)
* Reflects deduction of the 1% contingent deferred sales charge (CDSC) at the
end of the period and assumes reinvestment of distributions.
- ---------------------------- [Mountain chart] --------------------------------
Growth of $10,000
Pioneer World MSCI World
Equity Fund* Index
------------- ----------
10/96 10000 10000
11/96 10545 10680
12/96 10361 10747
1/97 10471 10987
2/97 10577 11207
3/97 10353 10660
- -------------------------------------------------------------------------------
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 3/31/97
D e a r S h a r e o w n e r ,
-----------------------------------------------------------------------------
I am proud to report that Pioneer World Equity Fund is off to a strong start,
completing its first (abbreviated) fiscal year with a total return of more
than 11% for the five months ended March 31, 1997. These results speak well
for the effectiveness of the Fund's emphasis on stocks of mid-sized to large
companies we believe have good appreciation potential. While such performance
is always welcome, I urge a note of caution and ask you to be mindful of the
special risks of investing abroad.
Much of your Fund's success to date can be attributed to its strategic
country selection, which we describe in detail later in this report. Our
decision to take significant positions in Europe and Latin America and limit
investments in Japan, the United States and the emerging markets in the
Pacific Rim proved correct. These same factors also explain the Fund's
outperformance relative to its benchmark, the Morgan Stanley Capital
International (MSCI) World Index, which returned 4.17% for the same time
period.
Circling the Globe for Well-Valued Growth Opportunities
For your Fund, we search the globe for long-term capital growth potential.
Careful examination of world markets and individual company characteristics
helps us identify attractive investment opportunities. We work to take
advantage of shifts among markets, strategically adjusting the portfolio to
capture what we believe are the best growth possibilities available at any
given time. At the end of the fiscal year, 42% of the Fund's assets were
invested in Europe, with the Americas and Asia representing 30% and 28%,
respectively.
While our "top-down" review of global markets helps us find favorable
investment climates on a country-by-country basis, our research-driven,
value-oriented approach helps us target stocks at the "right price." We look
for prices that are low, relative to the companies' long-term earning
6
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Pioneer World Equity Fund
power. With 161 securities in 26 countries on March 31, the Fund is broadly
diversified to reduce volatility and enhance potential for good long-term
performance.
European Restructuring - A Foundation For Long-Term Value
Major developments are generating a rising tide of optimism for European
investments. Much like their American brethren did just a few years ago,
companies in Europe are restoring their ability to compete globally by
improving their financial strength and reducing labor costs. With the
fruits of restructuring beginning to surface, economies across the Continent
are expected to push profitability to higher levels.
Another major development is that arcane regulations and unfavorable tax laws
are being lifted, eliminating historical barriers to shareholder value.
Furthermore, European corporations are buying-back shares, spinning-off
unprofitable divisions and increasing dividends in an effort to build value
for their investors. The Fund's positions in Elf Aquitaine (France) and ISS
International Service System (Denmark) are already benefiting from these
trends.
The Fund is heavily weighted in Spain, France, and Germany, where markets
rose in U.S. dollars over the Fund's brief life. However, the Fund did better
than the average in these countries - particularly in the financial sector,
which responded to falling interest rates and the surge in popularity of
pension- and investment-related products.
Seeking Value in U.S. Stocks; Latin American Holdings Surge Forward
The strong performance of overseas investments reinforced our decision to
keep U.S. holdings to less than 20%. However, U.S. holdings did produce solid
returns, even after the market declines we saw in March. Top performers here
include LSI Logic, Student Loan Marketing Association and State Street Bank.
In the closing weeks of the period, prices of technology stocks dropped, and
we took the opportunity to increase holdings in Cisco Systems and First Data
Corp.
7
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Pioneer World Equity Fund
PORTFOLIO MANAGEMENT DISCUSSION 3/31/97 (continued)
Investments in Latin America, about 10% of equity holdings on March 31, proved
very advantageous. Holdings in Brazil, Argentina and Mexico climbed 35%, 25% and
10%, respectively, reflecting the creation of globally competitive industries in
these emerging markets. Social and political changes - as well as economic
liberalization - are fostering a new business-friendly environment, allowing
companies to grow faster than in more mature, developed countries. The magnitude
and pace of this change should create tremendous growth opportunities going
forward. Telecommunications giant Tele- bras (Telecommunicacoes Brasilieras) is
just one company benefiting from Brazil's modernization of infrastructure and
deregulation.
Slow Growth Stalls Performance in Asia
Japan's economy remained sluggish - the result of weak consumer spending -
and accounts for the Fund's underweighted assets there. Prodded by Prime
Minister Hashimoto's efforts to reduce government spending and foster a more
open market, Japanese corporations are embarking on painful reorganizations
to build their competitiveness. It's our view, however, that such change
creates opportunity and, in the right situation, can offer tremendous value
for investors with a long-term horizon. In the closing weeks of the period,
we increased Japanese holdings from 8% to 13% of equity holdings, reflecting
our cautious but increasingly positive outlook.
The emerging countries of the Pacific Rim struggled during the period,
especially Thailand and South Korea. While these countries have embraced
free-market policies, their performance during the past several months was
poor as a result of meager earnings and bankruptcies. While we expect to
continue underweighting assets in these two countries, the adoption of
free-market economic policies should bode well for their future.
8
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Pioneer World Equity Fund
Diversification, Sound Management Are Keys to Unlocking Potential
Even over the course of the Fund's short life, the benefits of spreading
assets among several markets is clear. Consider how the Fund's strong
performance in Europe and Latin America offset weaker performance in the U.S.
and Asia. Just as different stocks and industries rise and fall according to
their internal dynamics, countries and regions also follow distinct patterns.
World markets are brimming with opportunities as the Fund enters its second
fiscal year. The transformation of emerging markets into mature, developed
economies is a complicated process - but one that creates the potential for
rapid growth. And while the established markets of the U.S., Europe and Japan
may grow at a slower rate than emerging markets, they offer sound investment
prospects as they move through various stages of their economic cycles.
Clearly, investing globally involves certain risks - currency fluctuations,
political and economic uncertainties, reduced liquidity - especially in
emerging markets. However, we're confident that Pioneer World Equity Fund's
emphasis on rigorous research, value and a disciplined investment strategy
will help deliver satisfying long-term results.
Respectfully,
/s/ Patrick M. Smith
Patrick M. Smith,
Portfolio Manager
9
<PAGE>
Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 3/31/97
Shares Value
INVESTMENT IN SECURITIES - 93.6%
PREFERRED STOCKS - 3.3%
300,000 Banco Itau SA $155,197
350,000 Centrais Electricas Brasileiras S/A 150,666
2,100 Henkel KGaA 115,980
920,000 Petrobras Distribuidora SA 182,819
700,000 Telecommunicacoes de San Paulo SA 177,759
--------------
Total Preferred Stocks
(Cost $720,526) $782,421
--------------
COMMON STOCKS - 89.8%
Basic Industries - 3.5%
Chemicals - 0.5%
2,800 BASF AG $105,895
25 Ciba Specialty Chemicals AG* 2,071
--------------
$107,966
--------------
Containers - 2.0%
10,000 NV Koninklijke KNP BT $212,868
1,200 Schmalbach Lubeca AG* 253,572
--------------
$466,440
--------------
Iron & Steel - 0.8%
2,800 Boehler-Uddeholm AG $193,668
--------------
Precious Metals - 0.2%
15,000 Newcrest Mining Ltd. $ 49,157
--------------
Total Basic Industries $817,231
--------------
Capital Goods - 9.4%
Aerospace - 0.4%
5,500 Doncasters Plc (Sponsored A.D.R.)* $106,562
--------------
Construction & Engineering - 7.4%
7,500 AGCO Corp. $207,187
26,000 Cemex, SA (Class B) 104,761
70,000 Cheung Kong Infrastructure Holdings* 197,840
8,000 Clayton Homes, Inc. 102,000
550 Hollandsche Beton Groep NV 125,587
34,000 Mitsubishi Heavy Industries, Ltd. 221,440
13,000 National House Industrial Co. 150,404
108,000 Shenzhen Expressway Co. (H Shares)* 33,799
8,000 Sho-Bond Corp. 201,294
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
Shares Value
Construction & Engineering - (continued)
2,000 Siam Cement Public Co., Ltd. $ 52,090
5,000 Stork NV 216,069
800 VA Technologies AG 117,923
--------------
$1,730,394
--------------
Producer Goods - 1.6%
26,000 ALFA, SA de CV $ 146,075
600 IWKA AG 146,236
1,000 Sidel, SA 78,389
--------------
$ 370,700
--------------
Total Capital Goods $2,207,656
--------------
Consumer Durables - 3.4%
Motor Vehicles - 3.4%
2,500 Autobacs Seven Co., Ltd. $ 149,676
24,000 CIADEA SA* 106,811
12,000 Edaran Otomobile Nasional Bhd. 121,051
1,200 KTM Motorradholding AG* 74,762
21,000 Suzuki Motor Co., Ltd. 203,883
1,500 Sylea 144,308
--------------
$ 800,491
--------------
Total Consumer Durables $ 800,491
--------------
Consumer Non-Durables - 14.6%
Agriculture & Food - 2.8%
40,000 IOI Corp. Bhd. $ 66,497
6,500 Louis Dreyfus Citrus* 275,263
2,200 Raision Tehtaat Oy 203,855
500,000 Tingyi Holding Co.* 109,051
--------------
$ 654,666
--------------
Home Products - 1.3%
10,000 Safilo SpA $ 183,236
25,000 Tomkins Plc 111,897
--------------
$ 295,133
--------------
Retail Food - 4.0%
8,000 Centro Comerciales Pryca SA $ 150,062
15,900 Cifra SA de CV (Series A) 21,576
130,000 Cifra SA de CV (Series C) 181,979
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 3/31/97 (continued)
Shares Value
Retail Food - (continued)
1,400 Delhaize-Le Lion, SA $ 78,139
15,000 Food Lion, Inc. (Class A) 122,812
13,000 Food Lion, Inc. (Class B) 104,407
4,500 G.I.B. Holdings Ltd. 206,686
300 Metro AG* 30,796
5,000 Metro-Richelieu, Inc. 51,658
--------------
$ 948,115
--------------
Retail Non-Food - 6.5%
3,500 American Greetings Corp. $ 111,781
5,000 Carmax - Circuit City* 75,000
10,000 Daiichi Corp.+ 145,631
5,500 Deluxe Corp. 178,062
3,500 Home Depot, Inc. 187,250
2,000 Hoya Corp. 89,644
7,000 Kesko 102,935
16,000 Marks & Spencer Plc 128,484
100,000 PT Matahari Putra Prima 145,773
6,000 Toys "R" Us, Inc.* 168,000
8,400 Woolworth Corp.* 196,350
--------------
$1,528,910
--------------
Total Consumer Non-Durables $3,426,824
--------------
Energy - 4.9%
Oil & Gas Extraction - 3.0%
10,700 Canadian Natural Resources Ltd.* $ 258,977
10,000 Chesapeake Energy Corp.* 208,750
400 Elf Aquitaine SA 41,119
1,500 Norsk Hydro AS 75,118
1,000 OMV AG 118,373
--------------
$ 702,337
--------------
Oil Refineries & Drilling - 0.8%
7,000 YPF SA (Class D) (Sponsored A.D.R.) $ 185,500
--------------
Oil Services - 1.1%
8,000 Bouygues Offshore SA* $ 213,077
4,500 Bouygues Offshore SA (Sponsored A.D.R.)* 57,938
--------------
$ 271,015
--------------
Total Energy $1,158,852
--------------
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
Shares Value
--------------
Financial - 18.3%
Commercial Bank - 7.0%
12,000 Australia & New Zealand Banking Group Ltd. $ 76,017
46,000 Banca Popolare di Milano 257,970
3,000 Banco de Santander SA 207,043
2,210 Banco Frances Del Rio Plata SA (A.D.R.) 66,300
2,700 DePfa-Bank 146,686
40,000 First Bangkok City Bank Public Co., Ltd. 34,290
5,000 Fokus Bank ASA 44,009
130 Julius Baer Holding AG 157,466
1,300 Mellon Bank Corp. 94,575
13,000 Overseas-Chinese Banking Corp., Ltd. 154,794
1,500 State Street Boston Corp. 104,063
24,000 Sumitomo Trust & Banking 192,233
3,000 Toronto-Dominion Bank 75,645
700 Unidanmark A/S 37,578
--------------
$1,648,669
--------------
Misc. Finance - 2.6%
55,000 Banca Fideuram SpA $ 142,510
180,014 Bank International Indonesia 136,829
38,000 Dhana Siam Finance and Securities Public Co.,
Ltd. 50,877
2,900 HSBC Holdings Plc 67,366
60,000 MBF Capital Bhd. 106,040
1,100 Student Loan Marketing Association 104,775
--------------
$ 608,397
--------------
Insurance - 8.2%
1,500 AMBAC Inc. $ 96,750
4,000 Corporacion Mapfre 206,689
35,000 Dai-Tokyo Fire & Marine Insurance Co. 169,903
4,800 ING Groep NV 189,245
16,000 Malaysian Assurance Alliance Bhd. 92,321
23,000 Mediolanum SpA* 204,720
50,000 National Mutual Asia Ltd. 52,267
85,000 National Mutual Holdings Ltd. 129,283
8,000 Pohjola Insurance Group (Series B) 216,748
11,000 QBE Insurance Group Ltd. 56,660
40,000 Reinsurance Australia Corp. 134,441
15,000 Storebrand ASA* 103,345
850 Union Des Assurances Federal 109,941
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 3/31/97 (continued)
Shares Value
Insurance - (continued)
500 Zurich Versicherungsgesellschaft (Registered) $ 157,675
--------------
$1,919,988
--------------
Real Estate - 0.4%
20,000 New World Development Co., Ltd. $ 107,889
--------------
Savings & Loan - 0.1%
2,000 Abbey National Plc $ 24,519
--------------
Total Financial $4,309,462
--------------
Services - 14.0%
Health & Personal Care - 1.6%
10,000 Apria Healthcare Group, Inc.* $ 181,250
10,000 Biora AB* 105,602
5,000 Biora AB (A.D.R.)* 100,000
--------------
$ 386,852
--------------
Hotel/Restaurant - 1.9%
5,700 McDonald's Corp. $ 269,325
39,000 Overseas Union Enterprise Ltd. 180,893
--------------
$ 450,218
--------------
Pharmaceuticals - 5.0%
8,000 Amersham International Plc $ 162,975
2,000 Astra AB 96,835
15,000 Daiichi Pharmaceutical Co. 228,155
24,000 F.H. Faulding & Co., Ltd. 141,121
75 Novartis AG* 93,247
1,000 Novo Nordisk A/S (Class B) 104,690
16 Roche Holdings AG 138,615
10,000 Yamanouchi Pharmaceutical Co., Ltd. 207,120
--------------
$1,172,758
--------------
Publishing - 1.8%
9,800 Elsevier NV $ 159,464
13,000 Schibsted ASA 264,356
--------------
$ 423,820
--------------
Misc. Services - 3.7%
17,000 Electrocomponents Plc $ 112,037
1,000 Hagemeyer NV 85,094
21,000 Hays Plc 188,333
3,000 ISS International Service System AS (Class B) 87,373
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
Shares Value
Misc. Services - (continued)
29,000 Rentokil Initial Plc $ 200,428
500 SGS Holdings SA 191,438
--------------
$ 864,703
--------------
Total Services $3,298,351
--------------
Technology - 8.0%
Business Machines - 0.5%
5,000 Esselte AB (Series B) $ 120,213
--------------
Computer Services - 2.6%
5,000 Automatic Data Processing, Inc. $ 209,375
7,000 First Data Corp. 237,125
4,000 SunGard Data Systems Inc.* 174,000
--------------
$ 620,500
--------------
Electronics - 4.9%
4,800 Cisco Systems, Inc.* $ 231,000
24,000 Hitachi, Ltd. 213,592
3,000 LSI Logic Corp.* 104,250
4,000 Mabuchi Motor Co., Ltd. 197,087
2,000 Rohm Co., Ltd. 147,573
3,600 Sony Corp. 251,942
--------------
$1,145,444
--------------
Total Technology $1,886,157
--------------
Transportation - 0.7%
Air Transport - 0.7%
11,000 BAA Plc $ 92,496
300,000 China Eastern Airlines Corp. (H Shares)* 90,015
--------------
$ 182,511
--------------
Total Transportation $ 182,511
--------------
Utilities - 11.4%
Electric Utility - 1.9%
9,000 Delmarva Power & Light Co. $ 165,375
8,000 Iberdrola SA 88,338
400 Viag AG 189,218
--------------
$ 442,931
--------------
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer World Equity Fund
Shares Value
Gas Utility - 1.1%
1,700 Consolidated Natural Gas Co. $ 85,638
90,000 Hong Kong and China Gas Co., Ltd. 168,996
--------------
$ 254,634
--------------
Telecommunications - 8.4%
7,000 Advanced Information Service, Plc $ 59,873
1,400 Alcatel Alsthom SA 169,107
1,700 BCE, Inc. 78,116
25 DDI Corp. 157,969
18,000 Glenayre Technologies, Inc.* 177,750
4,200 Lucent Technologies, Inc. 221,550
9,000 Manitoba Telecom Services Inc. 89,408
10,000 PictureTel Corp.* 118,750
65,000 PT Telekomunikasi Indonesia (Series B) 99,490
18,000 Stet Societa' Finanziaria Telefonica SpA
(Non-voting) 63,914
32,000 Technology Resources Industries Bhd.* 69,725
1,700 Telecom Argentina Stet-France Telecom SA
(Sponsored A.D.R.) 78,200
72,000 Telecom Italia SpA 180,081
2,500 Telecommunicacoes Brasileiras SA (Sponsored
A.D.R.) 255,938
7,000 Telefonica de Espana SA 169,209
--------------
$ 1,989,080
--------------
Total Utilities $ 2,686,645
--------------
Miscellaneous - 1.6%
9,000 Hutchinson Whampoa Ltd. $ 67,657
100,000 PT Bimantara Citra 129,113
60,000 Wing Tai Holdings Ltd. 176,947
--------------
Total Miscellaneous $ 373,717
--------------
Total Common Stocks
(Cost $20,916,749) $21,147,897
--------------
WARRANTS - 0.0%
8,892 Bank International Indonesia (1/17/00)* $ 3,148
--------------
Total Warrants
(Cost $2,552) $ 3,148
--------------
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
Principal
Amount Value
DEBT OBLIGATIONS - 0.5%
Corporate Bonds - 0.5%
Consumer Durables - 0.5%
$ 102,000 Qingling Motors Inc., 3.50%, 1/22/02 $ 107,355
-------------
Total Corporate Bonds $ 107,355
-------------
Total Debt Obligations
(Cost $102,000) $ 107,355
-------------
TOTAL INVESTMENT IN SECURITIES
(Cost $21,741,827)(a) $22,040,821
-------------
TEMPORARY CASH INVESTMENT - 6.4%
Repurchase Agreement - 6.4%
1,500,000 Aubrey Lanston, 3/31/97, 6.1%, repurchase price of
$1,500,000 plus accrued interest on 4/1/97,
collateralized by $1,586,000 U.S. Treasury Bill,
11/13/97 $ 1,500,000
-------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $1,500,000) $ 1,500,000
-------------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY CASH
INVESTMENT - 100%
(Cost $23,241,827)(b) $23,540,821
=============
* Non-income producing security.
+ On April 1, 1997, the company changed its name to Deodeo Corp.
(a) Distribution of investments by country of issue, as a percentage of total
investment in securities, is as follows:
United States 19.2%
Japan 13.3
Great Britain 5.1
France 4.9
Italy 4.7
Germany 4.5
Netherlands 4.5
Brazil 4.2
Spain 3.7
Hong Kong 3.7
Switzerland 3.4
Australia 2.7
Canada 2.5
Finland 2.4
Austria 2.3
Indonesia 2.3
Singapore 2.3
Norway 2.2
Mexico 2.1
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 3/31/97 (continued)
Malaysia 2.1
Argentina 2.0
Sweden 1.9
Belgium 1.3
Denmark 1.0
Others (individually less than
1%) 1.7
--------
100.0%
========
(b) At March 31, 1997, the net unrealized gain on investments based on cost
for federal income tax purposes of $23,247,879 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 964,826
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (671,884)
----------
Net unrealized gain $ 292,942
==========
Purchases and sales of securities (excluding temporary cash investments) for
the period ended March 31, 1997 aggregated $22,577,158 and $951,810,
respectively.
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
BALANCE SHEET 3/31/97
ASSETS:
Investment in securities, at value (including temporary
cash investment of $1,500,000)(cost $23,241,827) $23,540,821
Cash 61,989
Receivables -
Fund shares sold 733,632
Dividends, interest and foreign taxes withheld 28,838
Forward foreign currency settlement contracts - net 8,221
Due from Pioneering Management Corporation 13,021
Other 1,155
---------------
Total assets $24,387,677
---------------
LIABILITIES:
Payables -
Investment securities purchased $ 915,145
Fund shares repurchased 8,943
Due to affiliates 14,988
Accrued expenses 54,771
---------------
Total liabilities $ 993,847
---------------
NET ASSETS:
Paid-in capital $22,988,367
Accumulated net investment loss (2,598)
Accumulated undistributed net realized gain on
investments and foreign currency transactions 109,019
Net unrealized gain on investments 298,994
Net unrealized gain on forward foreign currency
contracts and other assets and liabilities
denominated in foreign currencies 48
---------------
Total net assets $23,393,830
===============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $17,723,559/1,063,183 shares) $ 16.67
===============
Class B (based on $5,305,692/319,898 shares) $ 16.59
===============
Class C (based on $364,579/21,934 shares) $ 16.62
===============
MAXIMUM OFFERING PRICE:
Class A $ 17.69
===============
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer World Equity Fund
STATEMENT OF OPERATIONS
For the Period from 10/31/96 (Commencement of Operations) to 3/31/97
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of
$4,545) $ 55,016
Interest (net of foreign taxes withheld of $3) 33,894
-----------
Total investment income $ 88,910
-----------
EXPENSES:
Management fees $ 47,472
Transfer agent fees
Class A 9,747
Class B 3,579
Class C 504
Distribution fees
Class A 8,419
Class B 10,347
Class C 827
Accounting 22,354
Custodian fees 26,100
Registration fees 26,213
Professional fees 17,951
Printing 3,144
Fees and expenses of nonaffiliated trustees 3,661
Miscellaneous 4,687
-----------
Total expenses $185,005
Less management fees waived and expenses
reimbursed by Pioneering Management
Corporation (87,035)
Less fees paid indirectly (2,817)
-----------
Net expenses $ 95,153
-----------
Net investment loss $ (6,243)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $116,479
Forward foreign currency contracts and other
assets and liabilities denominated in foreign
currencies (2,033) $114,446
----------- -----------
Change in net unrealized gain from:
Investments $298,994
Forward foreign currency contracts and other
assets and liabilities denominated in foreign
currencies 48 $299,042
----------- -----------
Net gain on investments and foreign currency
transactions $413,488
-----------
Net increase in net assets resulting from
operations $407,245
===========
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
STATEMENT OF CHANGES IN NET ASSETS
For the period from 10/31/96 (Commencement of Operations) to 3/31/97
FROM OPERATIONS:
Net investment loss $ (6,243)
Net realized gain on investments 114,446
Change in net unrealized gain on investments
and foreign currency transactions 299,042
---------------
Net increase in net assets resulting from
operations $ 407,245
---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.00 per share) $ (1,226)
Net realized gain:
Class A ($0.03 per share) (7,460)
---------------
Total distributions to shareholders $ (8,686)
---------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $25,408,485
Reinvestment of distributions 8,577
Cost of shares repurchased (2,721,791)
---------------
Net increase in net assets resulting from
fund share transactions $22,695,271
---------------
Net increase in net assets $23,093,830
NET ASSETS:
Beginning of period (initial capitalization -
20,001 shares) 300,000
---------------
End of period (including accumulated net
investment loss of $2,598) $23,393,830
===============
'97 Shares '97 Amount
CLASS A
Shares sold 1,164,983 $19,052,048
Reinvestment of distributions 542 8,577
Less shares repurchased (109,009) (1,752,377)
----------- ------------
Net increase 1,056,516 $17,308,248
=========== ============
CLASS B
Shares sold 373,327 $ 6,095,061
Less shares repurchased (60,096) (961,072)
----------- ------------
Net increase 313,231 $ 5,133,989
=========== ============
CLASS C
Shares sold 15,778 $ 261,376
Less shares repurchased (511) (8,342)
----------- ------------
Net increase 15,267 $ 253,034
=========== ============
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer World Equity Fund
FINANCIAL HIGHLIGHTS 3/31/97
10/31/96 to
3/31/97
CLASS A
Net asset value, beginning of period $ 15.00
-------------
Increase from investment operations:
Net investment income $ 0.01
Net realized and unrealized gain on investments and
foreign currency transactions 1.69
-------------
Net increase from investment operations $ 1.70
Distributions to shareholders:
Net realized gain (0.03)
-------------
Net increase in net asset value $ 1.67
-------------
Net asset value, end of period $ 16.67
=============
Total return* 11.32%
Ratio of net expenses to average net assets 1.80%**+
Ratio of net investment income to average net assets 0.08%**+
Portfolio turnover rate 18%**
Average commission rate paid(1) $0.0128
Net assets, end of period (in thousands) $17,723
Ratio assuming no waiver of management fees and
assumption of expenses by PMC and no reduction for
fees paid indirectly:
Net expenses 3.70%**
Net investment loss (1.82)%**
Ratio assuming waiver of management fees and assumption
of expenses by PMC and reduction for fees paid
indirectly:
Net expenses 1.75%**
Net investment income 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.
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
FINANCIAL HIGHLIGHTS 3/31/97
10/31/96 to
3/31/97
CLASS B
Net asset value, beginning of period $ 15.00
-------------
Increase (decrease) from investment operations:
Net investment loss $ (0.03)
Net realized and unrealized gain on investments and
foreign currency transactions 1.62
-------------
Net increase in net asset value $ 1.59
-------------
Net asset value, end of period $ 16.59
=============
Total return* 10.60%
Ratio of net expenses to average net assets 2.85%**+
Ratio of net investment loss to average net assets (0.99)%**+
Portfolio turnover rate 18%**
Average commission rate paid(1) $0.0128
Net assets, end of period (in thousands) $ 5,306
Ratios assuming no waiver of management fees and
assumption of expenses by PMC and no reduction for
fees paid indirectly:
Net expenses 4.51%**
Net investment loss (2.65)%**
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction for fees
paid indirectly:
Net expenses 2.77%**
Net investment loss (0.91)%**
* 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
FINANCIAL HIGHLIGHTS 3/31/97
10/31/96 to
3/31/97
CLASS C
Net asset value, beginning of period $ 15.00
-------------
Increase (decrease) from investment operations:
Net investment loss $ (0.07)
Net realized and unrealized gain on investments and
foreign currency transactions 1.69
-------------
Net increase in net asset value $ 1.62
-------------
Net asset value, end of period $ 16.62
=============
Total return* 10.80%
Ratio of net expenses to average net assets 3.74%**+
Ratio of net investment loss to average net assets (1.77)%**+
Portfolio turnover rate 18%**
Average commission rate paid(1) $0.0128
Net assets, end of period (in thousands) $ 365
Ratios assuming no waiver of management fees and
assumption of expenses by PMC and no reduction for
fees paid indirectly:
Net expenses 4.91%**
Net investment loss (2.94)%**
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction for fees
paid indirectly:
Net expenses 3.69%**
Net investment loss (1.72)%**
* 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.
24 The accompanying notes are an integral part of these financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS 3/31/97
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-
25
<PAGE>
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.
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 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.
26
<PAGE>
As of March 31, 1997, the Fund had no outstanding portfolio hedges. The
Fund's gross forward foreign currency settlement contracts receivable and
payable were $838,915 and $830,694, respectively, resulting in a net
receivable of $8,221 as of March 31, 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.
The Fund has reclassified from paid-in capital $4,871 and $2,033 to
accumulated net investment loss and accumulated undistributed net realized
gain on investments, respectively. The reclassification has no impact on the
net asset value of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
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 $1,873 in underwriting commissions on the sale
of fund shares during the period ended March 31, 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
27
<PAGE>
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.
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 $4,051 in transfer agent fees payable to PSC at
March 31, 1997.
28
<PAGE>
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
$10,937 in distribution fees payable to PFD at March 31, 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.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the period ended March 31, 1997,
the Fund's expenses were reduced by $2,817 under such arrangements.
29
<PAGE>
Pioneer World Equity Fund
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
T o t h e S h a r e h o l d e r s a n d t h e B o a r d o f
T r u s t e e s o f P i o n e e r W o r l d E q u i t y F u n d :
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer World Equity Fund as of March 31, 1997, and the
related statement of operations, the statement of changes in net assets, and
the financial highlights for the period from October 31, 1996 to March 31,
1997. 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
audit.
We conducted our audit 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 March 31, 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 audit provides 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 March 31, 1997, the results of its
operations, the changes in its net assets, and the financial highlights for
the period from October 31, 1996 to March 31, 1997, in conformity with
generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
May 2, 1997
30
<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. President
Margaret B.W. Graham David D. Tripple, Executive Vice
John W. Kendrick President
Marguerite A. Piret Patrick M. Smith, Vice President
David D. Tripple William H. Keough, Treasurer
Stephen K. West Joseph P. Barri, Secretary
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
31
<PAGE>
This page for your notes.
32
<PAGE>
This page for your notes.
33
<PAGE>
PROGRAMS AND SERVICES FOR PIONEER SHAREONWERS
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.
34
<PAGE>
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.)
35
<PAGE>
This page for your notes.
36
<PAGE>
THE PIONEER FAMILY OF MUTUAL FUNDS
Growth Funds Income Funds
Global/International Taxable
Pioneer America Income Trust
Pioneer Emerging Markets Fund Pioneer Bond Fund
Pioneer Europe Fund Pioneer Short-Term Income Trust*
Pioneer Gold Shares
Pioneer India Fund Tax-Exempt
Pioneer International Growth Fund Pioneer Intermediate Tax-Free
Pioneer World Equity Fund Fund
Pioneer Tax-Free Income Fund
United States
Money Market Fund
Pioneer Capital Growth Fund Pioneer Cash Reserves Fund
Pioneer Growth Shares
Pioneer Micro-Cap Fund*
Pioneer Mid-Cap Fund
Pioneer Small Company Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
*Offers Class A and B Shares only
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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.
You can 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
Or write to us at:
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)
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer logo] Pioneer Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109
0597-4098
(C) Pioneer Funds Distributor, Inc.
[Recycle symbol] Printed on Recycled Paper
