<PAGE>
[logo: Pioneer]
Pioneer
World Equity
Fund
- ---------------------
ANNUAL REPORT 3/31/99
- ---------------------
<PAGE>
Table of Contents
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 19
Notes to Financial Statements 25
Report of Independent Public Accountants 31
Trustees, Officers and Service Providers 32
The Pioneer Family of Mutual Funds 33
Programs and Services for Pioneer Shareowners 34
Retirement Plans from Pioneer 36
</TABLE>
<PAGE>
Pioneer World Equity Fund
- --------------------------------
LETTER FROM THE CHAIRMAN 3/31/99
- --------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
Thank you for your interest in Pioneer World Equity Fund. It is with pleasure
that I introduce the Fund's annual report for the fiscal year ended March 31,
1999.
In the year since our last annual report many things have changed; a few have
not. Europe roared into 1998 with a strong first quarter while Asia sank deeper
into its financial crisis. One year later, Europe's growth is slower and Asia
shows positive signs of a real turnaround. The United States' bull market,
although driven by fewer companies, marches on. It was a year that proved, once
again, that the investing world does not stand still for long.
How then, does one determine the best place to invest money in an ever-changing
marketplace, especially if you consider yourself a long-term investor? The
answer is not so complex and is a rudimentary part of what we do at Pioneer.
Our answer is to start from the "bottom-up," researching security-issuing
companies and their business environment. As we identify fundamentally sound
companies, we also look for those companies whose prices express value: a
company waiting to be discovered (or rediscovered) by the rest of the world.
While no guarantee of future success, this philosophy makes sense in an
investing world sometimes overrun by emotion and investor psychology. It relies
more on the concrete results of business and less on the whimsical nuances of
Wall Street. Over the long term, we believe this investment philosophy will
help our investors bridge the constant change in the marketplace as they seek
to reach their investment goals.
I encourage you to read on to learn more about Pioneer World Equity Fund. If
you have questions, please contact your investment professional, or Pioneer at
1-800-225-6292.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
<PAGE>
Pioneer World Equity Fund
PORTFOLIO SUMMARY 3/31/99
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 57%
U.S. Common Stocks 36%
Short-Term Cash Equivalents 4%
Depositary Receipts for International Stocks 2%
International Preferred Stocks 1%
[end pie chart]
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]
<TABLE>
<S> <C>
United States 37.4% Israel 1.3%
United Kingdom 10.5% Singapore 1.1%
Japan 9.7% India 0.9%
Germany 6.2% Argentina 0.6%
France 5.8% Mexico 0.6%
Italy 5.0% Hong Kong 0.5%
Switzerland 4.2% Malaysia 0.5%
Canada 3.4% Austria 0.4%
Netherlands 3.0% Belgium 0.4%
Australia 2.2% Denmark 0.3%
Finland 2.0% Thailand 0.3%
Spain 2.0% Chile 0.2%
Sweden 1.5%
</TABLE>
[end bar chart]
1 0 L a r g e s t H o l d i n g s
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
1. Shohkoh Fund & Co., Ltd. 1.57% 6. Amvescap Plc 1.14%
- --------------------------------------------------------------------------------
2. NTT Mobile 1.33 7. Nokia Oyj 1.09
Communication
Network, Inc.
- --------------------------------------------------------------------------------
3. State Street Corp. 1.33 8. Bell Atlantic Corp. 1.05
- --------------------------------------------------------------------------------
4. McDonald's Corp. 1.30 9. Hoechst AG 1.02
- --------------------------------------------------------------------------------
5. Julius Baer Holding AG 1.14 10. Home Depot, Inc. 1.01
- --------------------------------------------------------------------------------
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 3/31/99 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
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 3/31/99 3/31/98
<S> <C> <C>
$18.55 $20.03
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(3/31/98 -3/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
- $0.013 -
</TABLE>
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 at public offering price, compared to the growth
of the Morgan Stanley Capital International (MSCI) World Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of March 31, 1999)
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 9.78% 7.10%
(10/31/96)
1 Year -7.32 -12.64
</TABLE>
* Reflects deduction of the maximum 5.75% sales charge at the beginning of
the period and assumes reinvest-ment of distributions at net asset value.
[mountain chart]
<TABLE>
<CAPTION>
Pioneer
World MSCI
Equity World
Fund* Index
----- -----
<S> <C> <C>
10/96 9425 10000
10174 10387
3/97 10488 10417
11784 11984
9/97 11841 12327
10765 12023
3/98 12728 13745
12347 14024
9/98 9818 12343
11561 14948
3/99 11797 15483
</TABLE>
[end mountain chart]
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 23 markets. It includes the United States, Canada 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
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 3/31/99 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
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 3/31/99 3/31/98
<S> <C> <C>
$18.11 $19.75
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(3/31/98 -3/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
- $0.013 -
</TABLE>
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.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of March 31, 1999)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 8.62% 7.50%
(10/31/96)
1 Year -8.23 -11.90
</TABLE>
* 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]
<TABLE>
<CAPTION>
Pioneer
World MSCI
Equity World
Fund* Index
----- -----
<S> <C> <C>
10/96 10000 10000
10747 10387
3/97 11060 10417
12393 11984
3/98 12427 12327
11273 12023
13300 13745
9/98 12869 14024
10202 12343
11996 14948
3/99 11905 15483
</TABLE>
[end mountain chart]
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 23 markets. It includes the United States, Canada 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
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 3/31/99 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
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 3/31/99 3/31/98
<S> <C> <C>
$18.13 $19.77
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(3/31/98 -3/31/99) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
- $0.013 -
</TABLE>
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.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of March 31, 1999)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 8.67% 8.67%
(10/31/96)
1 Year -8.22 -8.22
</TABLE>
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to shares sold within one year of purchase.
[mountain chart]
<TABLE>
<CAPTION>
Pioneer
World MSCI
Equity World
Fund* Index
----- -----
<S> <C> <C>
10/96 10000 10000
10773 10387
3/97 11080 10417
12413 11984
9/97 12447 12327
11286 12023
3/98 13313 13745
12876 14024
9/98 10202 12343
11996 14948
3/99 12218 15483
</TABLE>
[end mountain chart]
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 23 markets. It includes the United States, Canada 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
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 3/31/99
- --------------------------------------------------------------------------------
Looking back at the world markets over the past year, investors might think
they just walked away from a roller coaster - a little dazed, but still content
they came along for the ride. The breath-taking rally in global financial
markets of the past several months comes on the heels of the steep correction
last fall. Many Asian markets rose over 60% in local currencies from early
October through the end of March, and stock prices in the United States are
again regularly testing new highs. Such dramatic moves illustrate the volatile
nature of investing and the importance of a long-term vision.
The following discussion with your Fund's portfolio manager, Patrick M. Smith,
provides an account of the factors and events that influenced your Fund's
performance over the 12 months ended March 31, 1999.
Q: How did the Fund perform during the year?
A: The Fund started off favorably with European and U.S. markets surging. In
August, however, the near demise of Russia's currency set in motion a chain
of events that shook investors' faith in markets around the globe - most
notably in Latin America. All markets retreated dramatically until early
October. Your Fund's Class A shares fell approximately 23% at net asset
value during the first six months of the fiscal year. In the final months
of 1998, global markets rallied after the U.S. Federal Reserve Bank and the
European Central Bank reduced short-term interest rates. The International
Monetary Fund's rescue package for Brazil helped assuage concerns about
Latin America.
The most recent six months were very successful, with the Fund's Class A
Shares generating a 20.15% total return at net asset value. This rebound
offset some of the losses sustained during the correction. In the end,
though, the Fund's Class A shares declined 7.32% at net asset value for the
year ended March 31, 1999. In hindsight, our decision to underweight U.S.
and Asian holdings prevented a fuller participation in the rebound. The
average return for the 229 global funds tracked by Lipper, Inc. was 3.41%
for the year ended March 31, 1999. (Lipper is an independent firm that
tracks mutual fund performance.) With over half of its investments in the
United States, the MSCI World Index outpaced most global funds with a
return of 12.64% for the same period.
6
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Q: Why has the U. S. stock market been so strong?
A: Low-priced imports, weak commodity prices and a fragile world economy are
keeping inflation and interest rates historically low. These factors, in
tandem with a high level of consumer confidence, are credited with making
the U.S. economy strong in 1998 - its eighth year of expansion - and,
ultimately, driving the stock market to all time highs.
To take advantage of the trend, we increased the allocation to U.S. stocks,
from 23% to 37% of the Fund's equity assets. Also, strong price
appreciation pushed many U.S. companies into the list of the Fund's ten
largest holdings, including State Street, Bell Atlantic and Home Depot. We
added several technology companies during the year, including Oracle, a
world-wide supplier of database software and microprocesser giant, Intel.
While the strength of the U.S. economy in early 1999 is causing many
economists to raise their growth forecast for this year, few expect it to
keep pace with 1998. Growth in the U.S. is expected to moderate in the
second half of the year, just as overseas markets may be improving. After
the sharp run up, we plan to hold the U.S. exposure steady, even as we
search for better-priced opportunities - primarily in Europe.
Q: Why is Europe the largest regional allocation?
A: We believe investors have underrated Europe's potential for later this
year. Job growth, falling interest rates and consumer confidence should
become a driving force for recovery as it has in the United States.
Deregulation, restructuring and mergers among Europe's biggest companies
continue to boost balance sheets and share prices. A new purchase in
France, Groupe Danone (food) is an example of a company selling off
peripheral operations and concentrating on its core business. In the
meantime, results have been mixed. Germany's economy, in particular, has
suffered as a result of the emerging markets crisis. Fund holdings SAP,
Gehe and AXA Colonia Konzern all underperformed. Longer term, we believe
their prospects remain quite favorable. The rest of Europe is making a
comeback - especially in the technology sector, including
STMicroelectronics (France).
7
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 3/31/99 (continued)
- --------------------------------------------------------------------------------
Q: Do you think Asia's recovery can last?
A: Southeast Asia has been on the mend for several months now. Many observers
think the region bottomed out in December. However, we expect full recovery
will take some time and plan to limit holdings in emerging markets to limit
risk in the Fund. Two important drivers for the region's recovery, economic
reform and domestic growth, are still underway.
Across the Pacific Rim, stock prices have risen quite dramatically.
Interest rate cuts and easing credit are fostering domestic demand,
although much uncertainty exists. Japan, now more than 9% of equity assets,
was the best-performing market during the recent rally. We have welcomed
the new growth initiatives, but do not believe these reforms go far enough.
We expect other investors will realize the measures are not tough enough,
and that stock prices will fall accordingly. In preparation, we've been
trimming holdings, such as Shohkoh Fund to lock in profits. The yen
strengthened during this period, but the Fund's hedge kept it from fully
participating in the rally. We remain committed to our hedge strategy,
since we believe the yen will weaken later this year.
Q: What is your outlook for global investing and the Fund?
A: The strength of the global economy, and ultimately your Fund's performance,
hinges on Europe and Japan taking the necessary steps to stimulate their
economies. Together with the United States, these three economies operate
as engines of growth and can help bring stability to world markets,
particularly for the emerging markets of Latin America and Asia.
8
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 95.7%
PREFERRED STOCKS - 0.8%
1,500 Henkel KGaA $ 110,237
550 SAP AG 177,135
107,178 Telecomunicacoes de Sao Paulo SA 13,186
-----------
TOTAL PREFERRED STOCKS
(Cost $334,364) $ 300,558
-----------
COMMON STOCKS - 94.9%
Basic Materials - 3.0%
Agricultural Products - 0.3%
200,000 IOI Corporation Bhd. $ 98,947
-----------
Chemicals - 0.9%
5,600 BASF AG $ 205,170
2,800 E.I. du Pont de Nemours & Co. 162,575
-----------
$ 367,745
-----------
Chemicals (Diversified) - 1.3%
8,700 Hoechst AG $ 377,511
45,000 WMC Ltd. 143,254
-----------
$ 520,765
-----------
Chemicals (Specialty) - 0.5%
4,000 Minerals Technologies, Inc. $ 192,000
-----------
Total Basic Materials $ 1,179,457
-----------
Capital Goods - 4.7%
Electrical Equipment - 0.6%
2,000 General Electric Co. $ 221,250
-----------
Engineering & Construction - 1.6%
3,900 IHC Caland NV $ 147,522
2,000 Suez Lyonnaise Des Eaux 370,481
1,200 Technip 128,263
-----------
$ 646,266
-----------
Machinery (Diversified) - 1.4%
63,000 BTR Siebe Plc $ 281,065
3,300 Sidel, SA 258,569
-----------
$ 539,634
-----------
Manufacturing (Diversified) - 0.7%
2,000 Mannesmann AG $ 255,705
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Trucks & Parts - 0.4%
1,800 Valeo SA $ 141,038
-----------
Total Capital Goods $ 1,803,893
-----------
Communication Services - 11.6%
Cellular/Wireless Telecommunications - 3.1%
37,500 Cable & Wireless Optus Ltd.* $ 87,275
10 NTT Mobile Communication Network, Inc.* 493,962
13,000 Sonera Group Plc* 217,069
40,000 Telecom Italia Mobile SpA 154,763
14,000 Vodafone Group Plc 261,478
-----------
$ 1,214,547
-----------
Telecommunications (Long Distance) - 1.2%
7,850 Bell Canada International, Inc.* $ 101,441
3,500 Sprint Corp. 343,437
-----------
$ 444,878
-----------
Telephone - 7.3%
8,000 BCE, Inc. $ 353,877
7,500 Bell Atlantic Corp. 387,656
2,150 Bell Canada International, Inc.* 27,950
5,000 BellSouth Corp. 200,313
16,000 British Telecom Plc 262,151
4,000 GTE Corp. 242,000
14,000 Mahanagar Telephone Nigam Ltd. (G.D.R.) 148,750
4,000 SBC Communications, Inc. 188,500
450 Swisscom AG* 176,166
25,000 Telecom Italia SpA 265,865
33,000 Telecom Italia SpA Di Risp. 196,156
4,408 Telefonica SA 187,176
17,000 Videsh Sanchar Nigam Ltd. (G.D.R.) 173,400
-----------
$ 2,809,960
-----------
Total Communication Services $ 4,469,385
-----------
Consumer Cyclicals - 9.8%
Automobiles - 1.6%
4,020 DaimlerChrysler AG* $ 350,176
5,000 Ford Motor Co. 283,750
-----------
$ 633,926
-----------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Distributors (Durables) - 0.8%
13,600 Buhrmann NV $ 236,641
3,000 Hagemeyer NV 92,404
-----------
$ 329,045
-----------
Hardware & Tools - 0.3%
10,000 Makita Corp. $ 111,543
-----------
Household Furnishings & Appliances - 1.4%
1,200 Ryohin Keikaku Co., Ltd. $ 190,492
3,900 Sony Corp. 360,593
-----------
$ 551,085
-----------
Publishing - 0.4%
3,000 McGraw-Hill Co., Inc. $ 163,500
-----------
Retail (Building Supplies) - 1.0%
6,000 Home Depot, Inc. $ 373,500
-----------
Retail (Department Stores) - 0.4%
2,320 Metro AG $ 145,351
-----------
Retail (General Merchandise) - 0.9%
3,000 Dayton Hudson Corp. $ 199,875
1,500 Wal-Mart Stores, Inc. 138,281
-----------
$ 338,156
-----------
Retail (Specialty) - 0.9%
4,200 Barnes & Noble, Inc.* $ 134,925
135,000 Cifra, SA de CV (Series C) 208,500
-----------
$ 343,425
-----------
Services (Commercial & Consumer) - 2.1%
21,000 Hays Plc $ 218,853
70 Kuoni Reisen Holding AG (Series B) (Registered) 260,761
5,000 TNT Post Group N.V. 150,765
700 Vivendi 172,412
-----------
$ 802,791
-----------
Total Comsumer Cyclicals $ 3,792,322
-----------
Consumer Staples - 11.4%
Beverages (Non-Alcoholic) - 0.4%
5,000 Embotelladora Andina SA (A.D.R.) $ 75,938
2,000 Kita Kyushu Coca-Cola Bottling Co., Ltd. 84,607
-----------
$ 160,545
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Broadcasting (Television/Radio/Cable) - 0.9%
3,500 CBS Corp. $ 143,281
5,300 United Pan-Europe Communications NV* 207,926
-----------
$ 351,207
-----------
Distributors (Food & Health) - 0.7%
20,000 Metro-Richelieu, Inc. $ 253,148
-----------
Entertainment - 0.6%
10,000 Pearson Plc $ 227,294
-----------
Foods - 3.3%
5,000 ConAgra, Inc. $ 127,813
1,700 General Mills, Inc. 128,456
700 Groupe Danone 176,346
3,000 H.J. Heinz Co. 142,125
32,300 Thai Union Frozen Products Public Co. Ltd. 96,328
30,000 Unilever Plc 280,477
3,800 Wrigley (Wm.) Jr. Co. 343,662
-----------
$ 1,295,207
-----------
Household Products (Non-Durables) - 0.5%
1,000 Colgate-Palmolive Co. $ 92,000
5,000 Kao Corp. 110,403
-----------
$ 202,403
-----------
Personal Care - 0.4%
35,000 Safilo SpA $ 166,436
-----------
Restaurants - 2.0%
24,000 Compass Group Plc $ 280,923
10,600 McDonald's Corp. 480,312
-----------
$ 761,235
-----------
Retail Stores (Drug Stores) - 0.5%
6,600 Walgreen Co. $ 186,450
-----------
Retail Stores (Food Chains) - 1.3%
1,800 Delhaize-Le Lion, SA $ 166,911
24,000 Food Lion, Inc. (Class A) 220,875
13,000 Food Lion, Inc. (Class B) 117,000
-----------
$ 504,786
-----------
Services (Employment) - 0.3%
4,000 Robert Half International, Inc. $ 131,250
-----------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Specialty Printing - 0.5%
11,000 Toppan Forms Co., Ltd. $ 186,693
-----------
Total Consumer Staples $ 4,426,654
-----------
Energy - 5.7%
Oil (International Integrated) - 4.1%
3,000 Chevron Corp. $ 265,312
2,400 Elf Aquitaine SA 326,300
22,000 Fortum Oyj 106,994
2,500 Mobil Corp. 220,000
10,900 Shell Transport & Trading Co. 74,115
6,000 Texaco, Inc. 340,500
7,500 YPF SA (Class D) (A.D.R.) 236,719
-----------
$ 1,569,940
-----------
Oil & Gas (Exploration/Production) - 0.8%
17,000 Canadian Natural Resources Ltd.* $ 292,909
-----------
Oil & Gas (Refining & Marketing) - 0.8%
30,000 ENI SpA $ 191,293
1,500 OMV AG 132,770
-----------
$ 324,063
-----------
Total Energy $ 2,186,912
-----------
Financial - 22.4%
Banks (Major Regional) - 9.0%
45,000 Banca Fideuram SpA $ 257,759
27,000 Banco Popolare Di Milano 251,826
9,360 Banco de Santander SA 192,201
2,500 Comerica, Inc. 156,094
3,200 Depfa-Bank 283,416
130 Julius Baer Holding AG 422,547
5,000 Mellon Bank Corp. 351,875
3,000 National City Corp. 199,125
27,600 Overseas-Chinese Banking Corp., Ltd. 187,037
6,000 State Street Corp. 493,125
4,500 Svenska Handelsbanken 156,977
5,000 Toronto-Dominion Bank 228,960
5,000 The Bank of New York Co., Inc. 179,688
1,700 Unidanmark A/S 116,178
-----------
$ 3,476,808
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Banks (Money Center) - 0.5%
9,000 Royal Bank of Scotland Group $ 196,452
-----------
Financial (Diversified) - 4.7%
6,000 Ambac Financial Group, Inc. $ 324,000
10,000 Amp Ltd. 109,518
3,500 Equitable Companies, Inc. 245,000
5,000 ING Groep NV 275,861
1,150 Shohkoh Fund & Co., Ltd. 582,622
7,000 SLM Holdings Corp. 292,250
-----------
$ 1,829,251
-----------
Insurance (Life/Health) - 1.3%
8,000 Conseco, Inc. $ 247,000
37,000 Mediolanum SpA 245,525
-----------
$ 492,525
-----------
Insurance (Multi-Line) - 4.1%
2,000 American International Group, Inc. $ 241,250
1,600 Axa SA 212,346
2,000 Axa Colonia Konzern AG 198,858
5,000 Corporacion Mapfre 98,835
135,000 National Mutual Holdings Ltd. 218,306
37,000 Royal & Sun Alliance Group Plc 350,056
450 Zurich Allied AG (New Shares) 288,631
-----------
$ 1,608,282
-----------
Insurance Brokers - 0.4%
2,300 Marsh & McLennan Co., Inc. $ 170,631
-----------
Investment Banking/Brokerage - 1.3%
2,050 Charles Schwab Corp. $ 197,056
55,000 Daiwa Securities Co., Ltd. 294,900
-----------
$ 491,956
-----------
Investment Management - 1.1%
41,000 Amvescap Plc $ 420,335
-----------
Total Financial $ 8,686,240
-----------
Healthcare - 7.1%
Healthcare (Diversified) - 1.2%
3,000 Bristol-Myers Squibb Co. $ 192,938
1,600 Johnson & Johnson 149,900
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare (Diversified) - (continued)
2,100 Warner-Lambert Co., Inc. $ 138,994
-----------
$ 481,832
-----------
Healthcare (Drugs/Major Pharmaceuticals) - 4.4%
4,000 Gehe AG $ 182,431
8,000 Glaxo Wellcome Plc 267,060
4,000 Merck & Co., Inc. 320,750
100 Novartis AG 162,620
21 Roche Holdings AG 256,731
6,000 Schering-Plough Corp. 331,875
12,000 Smithkline Beecham Plc 173,204
-----------
$ 1,694,671
-----------
Healthcare (Medical Products/Supplies) - 1.5%
32,000 Biora AB* $ 224,035
5,000 Biora AB (A.D.R.)* 68,750
45,750 F.H. Faulding & Co., Ltd. 272,716
-----------
$ 565,501
-----------
Total Healthcare $ 2,742,004
-----------
Technology - 16.3%
Communications Equipment - 2.8%
8,000 ECI Telecommunications Ltd. $ 280,000
5,000 Ericsson LM (B Shares) 121,758
2,000 Lucent Technologies, Inc. 215,500
1,000 Matsushita Communication Industrial Ltd. 67,635
2,500 Nokia Oyj 404,741
-----------
$ 1,089,634
-----------
Computers (Hardware) - 1.5%
1,700 IBM Corp. $ 301,325
2,200 Sun Microsystems, Inc.* 274,862
-----------
$ 576,187
-----------
Computers (Networking) - 1.1%
2,200 Ascend Communications, Inc.* $ 184,113
2,125 Cisco Systems, Inc.* 232,820
-----------
$ 416,933
-----------
Computers (Software & Services) - 1.4%
5,000 Check Point Software Technologies Ltd.* $ 215,000
4,000 Dassault Systemes SA 148,279
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Software & Services) - (continued)
6,750 Oracle Corp.* $ 178,031
-----------
$ 541,310
-----------
Electronics (Component Distributors) - 2.5%
21,000 Electrocomponents Plc $ 154,604
5,000 Hoya Corp. 283,712
50,000 Toshiba Corp. 341,552
118,000 Varitronix International Ltd. 184,244
-----------
$ 964,112
-----------
Electronics (Instrumentation) - 0.5%
55,000 Elec & Eltek International Co. Ltd. $ 202,400
-----------
Electronics (Semiconductors) - 3.0%
1,300 Intel Corp. $ 154,863
2,000 Rohm Co., Ltd. 238,960
2,000 STMicroelectronics* 198,750
3,300 Texas Instruments Inc. 327,525
5,000 Tokyo Electron Ltd. 258,803
-----------
$ 1,178,901
-----------
Equipment (Semiconductors) - 0.5%
3,200 Applied Materials, Inc.* $ 197,400
-----------
Photography/Imaging - 0.5%
3,000 Eastman Kodak Co. $ 191,625
-----------
Services (Computer Systems) - 0.8%
7,700 SunGard Data Systems, Inc.* $ 308,000
-----------
Services (Data Processing) - 1.7%
7,300 Automatic Data Processing, Inc. $ 302,037
8,200 First Data Corp. 350,550
-----------
$ 652,587
-----------
Total Technology $ 6,319,089
-----------
Transportation - 0.9%
Railroads - 0.2%
75,000 Malaysia International Shipping Bhd. $ 95,526
-----------
Truckers - 0.7%
69,835 Stagecoach Holdings Plc $ 250,302
-----------
Total Transportation $ 345,828
-----------
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Utilities - 2.0%
Electric Companies - 1.1%
7,000 Endesa SA $ 176,876
20,000 Scottish Power Plc 175,335
5,000 Union Electrica Fenosa SA 75,112
-----------
$ 427,323
-----------
Natural Gas - 0.6%
6,000 Williams Companies, Inc. $ 237,000
-----------
Power Producers (Independent) - 0.3%
47,000 AEM SpA $ 109,718
-----------
Total Utilities $ 774,041
-----------
TOTAL COMMON STOCKS
(Cost $30,129,402) $36,725,825
-----------
WARRANTS - 0.0%
11,450 Hong Kong and China Gas Co., Ltd., 9/30/99* $ 443
-----------
TOTAL WARRANTS
(Cost $0) $ 443
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $30,463,766) (a) $37,026,826
-----------
Principal
Amount
TEMPORARY CASH INVESTMENT - 4.3%
Commercial Paper - 4.3%
$1,664,000 Household Finance Corp., 5.0%, 4/1/99 $ 1,664,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,664,000) $ 1,664,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $32,127,766) (b)(c) $38,690,826
===========
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/99 (continued)
- --------------------------------------------------------------------------------
* Non-income producing security.
(a) Distribution of investments by country of issue, as a percentage of equity
holdings, is as follows:
<TABLE>
<S> <C>
United States 37.4%
United Kingdom 10.5
Japan 9.7
Germany 6.2
France 5.8
Italy 5.0
Switzerland 4.2
Canada 3.4
Netherlands 3.0
Australia 2.2
Spain 2.0
Finland 2.0
Sweden 1.5
Israel 1.3
Singapore 1.1
India 0.9
Argentina 0.6
Mexico 0.6
Malaysia 0.5
Hong Kong 0.5
Belgium 0.4
Austria 0.4
Denmark 0.3
Thailand 0.3
Chile 0.2
-----
100.0%
=====
</TABLE>
(b) At March 31, 1999, the net unrealized gain on investments
based on cost for federal income tax purposes of $32,129,659
was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $8,061,550
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (1,500,383)
----------
Net unrealized gain $6,561,167
==========
</TABLE>
(c) At March 31, 1999, the Fund had a capital loss carryforward
of $3,454,378 which will expire in 2007 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended March 31, 1999 aggregated $28,147,865 and $29,654,510,
respectively.
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 3/31/99
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash investment
of $1,664,000) (cost $32,127,766) $38,690,826
Cash 1,187
Foreign currencies, at value 458,374
Receivables -
Investment securities sold 531,739
Fund shares sold 47,569
Dividends, interest and foreign taxes withheld 75,709
Forward foreign currency settlement contracts, open-net 331
Other 2,538
------------
Total assets $39,808,273
------------
LIABILITIES:
Payables -
Investment securities purchased $ 737,879
Fund shares repurchased 89,557
Forward foreign currency portfolio hedge contracts, open-net 509,661
Forward foreign currency portfolio hedge contracts, closed-net 42,773
Due to affiliates 53,085
Accrued expenses 65,026
Reserve for repatriation taxes 128,581
------------
Total liabilities $ 1,626,562
------------
NET ASSETS:
Paid-in capital $35,446,990
Accumulated undistributed net investment income 187,983
Accumulated net realized loss on investments
and foreign currency transactions (3,456,271)
Net unrealized gain on investments 6,563,060
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (560,051)
------------
Total net assets $38,181,711
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $24,304,186/1,310,510 shares) $ 18.55
============
Class B (based on $12,012,480/663,205 shares) $ 18.11
============
Class C (based on $1,865,045/102,874 shares) $ 18.13
============
MAXIMUM OFFERING PRICE:
Class A $ 19.68
============
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 3/31/99
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $42,178) $ 617,862
Interest 89,900
------------
Total investment income $ 707,762
------------
EXPENSES:
Management fees $ 404,851
Transfer agent fees
Class A 92,400
Class B 50,769
Class C 6,102
Distribution fees
Class A 67,780
Class B 117,493
Class C 16,239
Accounting 29,000
Custodian fees 52,070
Registration fees 36,762
Professional fees 49,642
Printing 26,370
Fees and expenses of nonaffiliated trustees 22,532
Miscellaneous 7,116
------------
Total expenses $ 979,126
Less management fees waived by Pioneer
Investment Management, Inc. (180,359)
Less fees paid indirectly (3,250)
------------
Net expenses $ 795,517
------------
Net investment loss $ (87,755)
------------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments $ (2,301,923)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (55,326) $ (2,357,249)
------------ ------------
Change in net unrealized gain or loss from:
Investments $ (889,289)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (528,919) $ (1,418,208)
------------ ------------
Net loss on investments and foreign currency
transactions $ (3,775,457)
------------
Net decrease in net assets resulting from operations $ (3,863,212)
============
</TABLE>
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 3/31/99 and 3/31/98
<TABLE>
<CAPTION>
Year Ended Year Ended
3/31/99 3/31/98
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (87,755) $ (101,524)
Net realized loss on investments and foreign currency
transactions (2,357,249) (831,043)
Change in net unrealized gain on investments and foreign
currency transactions (1,418,208) 7,122,175
----------- ------------
Net increase (decrease) in net assets resulting from
operations $(3,863,212) $ 6,189,608
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain:
Class A ($0.01 and $0.17 per share, respectively) $ (18,666) $ (265,943)
Class B ($0.01 and $0.17 per share, respectively) (8,958) (93,843)
Class C ($0.01 and $0.17 per share, respectively) (1,254) (10,299)
----------- ------------
Total distributions to shareholders $ (28,878) $ (370,085)
----------- ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $61,811,613 $43,789,534
Reinvestment of distributions 26,557 332,203
Cost of shares repurchased (64,228,228) (28,871,231)
----------- ------------
Net increase (decrease) in net assets resulting from
fund share transactions $(2,390,058) $15,250,506
----------- ------------
Net increase (decrease) in net assets $(6,282,148) $21,070,029
NET ASSETS:
Beginning of year 44,463,859 23,393,830
----------- ------------
End of year (including accumulated net investment income
(loss) of $187,983 and $(149,813), respectively) $38,181,711 $44,463,859
=========== ============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CLASS A '99 Shares '99 Amount '98 Shares '98 Amount
Shares sold 2,272,092 $ 42,059,107 1,857,525 $34,023,409
Reinvestment of distributions 974 17,291 14,054 237,233
Less shares repurchased (2,564,172) (47,222,710) (1,333,146) (24,222,246)
---------- ------------- ---------- -----------
Net increase (decrease) (291,106) $ (5,146,312) 538,433 $10,038,396
========== ============= ========== ===========
CLASS B
Shares sold 356,595 $ 6,535,375 495,433 $ 8,901,081
Reinvestment of distributions 472 8,193 5,185 86,542
Less shares repurchased (256,431) (4,494,547) (257,947) (4,532,692)
---------- ------------- ---------- -----------
Net increase 100,636 $ 2,049,021 242,671 $ 4,454,931
========== ============= ========== ===========
CLASS C
Shares sold 695,909 $ 13,217,131 48,281 $ 865,044
Reinvestment of distributions 62 1,073 504 8,428
Less shares repurchased (657,018) (12,510,971) (6,798) (116,293)
---------- ------------- ---------- -----------
Net increase 38,953 $ 707,233 41,987 $ 757,179
========== ============= ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 3/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended 10/31/96 to
3/31/99 3/31/98 3/31/97
<S> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 20.03 $ 16.67 $ 15.00
------- -------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.01 $ (0.01) $ 0.01
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (1.48) 3.54 1.69
------- -------- -------
Net increase (decrease) from investment
operations $ (1.47) $ 3.53 $ 1.70
Distributions to shareholders:
Net realized gain (0.01) (0.17) (0.03)
------- -------- --------
Net increase (decrease) in net asset value $ (1.48) $ 3.36 $ 1.67
------- -------- --------
Net asset value, end of period $ 18.55 $ 20.03 $ 16.67
======= ======== ========
Total return* (7.32)% 21.36% 11.32%
Ratio of net expenses to average net assets 1.76%+ 1.79%+ 1.80%**+
Ratio of net investment income (loss) to average
net assets 0.00%+ (0.07)%+ 0.08%**+
Portfolio turnover rate 72% 39% 18%**
Net assets, end of period (in thousands) $24,304 $ 32,088 $17,723
Ratios assuming no waiver of management fees
and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 2.15% 2.59% 3.70%**
Net investment loss (0.39)% (0.87)% (1.82)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 1.75% 1.75% 1.75%**
Net investment income (loss) 0.01% (0.03)% 0.13%**
</TABLE>
* 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.
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 3/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended 10/31/96 to
3/31/99 3/31/98 3/31/97
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 19.75 $ 16.59 $ 15.00
-------- -------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.11) $ (0.14) $ (0.03)
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (1.52) 3.47 1.62
-------- -------- -------
Net increase (decrease) from investment
operations $ (1.63) $ 3.33 $ 1.59
Distributions to shareholders:
Net realized gain (0.01) (0.17) -
-------- -------- -------
Net increase (decrease) in net asset value $ (1.64) $ 3.16 $ 1.59
-------- -------- -------
Net asset value, end of period $ 18.11 $ 19.75 $ 16.59
======== ======== =======
Total return* (8.23)% 20.25% 10.60%
Ratio of net expenses to average net assets 2.42%+ 2.68%+ 2.85%**+
Ratio of net investment loss to average net
assets (0.69)%+ (0.97)%+ (0.99)%**+
Portfolio turnover rate 72% 39% 18%**
Net assets, end of period (in thousands) $ 12,012 $ 11,112 $ 5,306
Ratios assuming no waiver of management fees
and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 2.97% 3.48% 4.51%**
Net investment loss (1.24)% (1.77)% (2.65)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 2.41% 2.64% 2.77%**
Net investment loss (0.68)% (0.93)% (0.91)%**
</TABLE>
* 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.
The accompanying notes are an integral part of these financial statements. 23
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 3/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended 10/31/96 to
3/31/99 3/31/98 3/31/97
<S> <C> <C> <C>
CLASS C
Net asset value, beginning of period $ 19.77 $ 16.62 $ 15.00
-------- -------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.04) $ (0.11) $ (0.07)
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (1.59) 3.43 1.69
-------- -------- -------
Net increase (decrease) from investment
operations $ (1.63) $ 3.32 $ 1.62
Distributions to shareholders:
Net realized gain (0.01) (0.17) -
-------- -------- -------
Net increase (decrease) in net asset value $ (1.64) $ 3.15 $ 1.62
-------- -------- -------
Net asset value, end of period $ 18.13 $ 19.77 $ 16.62
======== ======== =======
Total return* (8.22)% 20.16% 10.80%
Ratio of net expenses to average net assets 2.37%+ 2.73%+ 3.74%**+
Ratio of net investment loss to average net
assets (0.65)%+ (1.11)%+ (1.77)%**+
Portfolio turnover rate 72% 39% 18%**
Net assets, end of period (in thousands) $ 1,865 $ 1,264 $ 365
Ratios assuming no waiver of management fees
and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 2.89% 3.53% 4.91%**
Net investment loss (1.17)% (1.91)% (2.94)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 2.35% 2.67% 3.69%**
Net investment loss (0.63)% (1.05)% (1.72)%**
</TABLE>
* 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.
24 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 3/31/99
- --------------------------------------------------------------------------------
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 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. The net asset value is
computed once daily, on each day the New York Stock Exchange is open, as of
the close of the regular trading on the Exchange. In computing the net
asset value, 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 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 securities 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
25
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 3/31/99 (continued)
- --------------------------------------------------------------------------------
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 also 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 a 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. In addition, delays are
common in registering transfers of securities in India, and the Fund may be
unable to sell portfolio securities until the registration process is
completed.
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
26
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 (see Note 6).
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.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the repatriation of certain foreign
currencies and/or net realized capital gains in certain countries. During
the year ended March 31, 1999, the Fund paid no such taxes.
In determining daily net asset value, the Fund estimates the reserve for
such capital gains and repatriation taxes, if any, associated with
investments in certain countries. The estimated reserve for capital gains
taxes is based on the net unrealized gains on certain portfolio securities,
the holding periods of such securities and the related tax rates, tax loss
carryforward (if applicable) and other such factors. As of March 31, 1999,
the Fund had no reserve for capital gains taxes. The estimated reserve for
repatriation taxes is based on the principal value of investments in
certain currencies, the holding period of such principal and the related
tax rates and other such factors. As of March 31, 1999, the Fund had a
reserve of $128,581 related to taxes on the repatriation of foreign
currencies.
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.
At March 31, 1999, the Fund reclassified $23,726 and $401,825 from
accumulated net realized loss on investments and foreign currency
transactions and paid-in capital, respectively, to accumulated net
investment loss. 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.
27
<PAGE>
Pioneer World Equity Fund
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NOTES TO FINANCIAL STATEMENTS 3/31/99 (continued)
- --------------------------------------------------------------------------------
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 Pioneer Fund
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $14,607 in
underwriting commissions on the sale of fund shares during the year ended
March 31, 1999.
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 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 Agreement
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, Pioneer Investment Management, Inc. (PIM) (formerly
Pioneering Management Corp.), is responsible for determining that the value
of the collateral remains at least equal to the repurchase price.
2. Management Agreement
PIM 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.
28
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PIM 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. PIM's agreement is voluntary and temporary and may be revised
or terminated at any time.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At March 31, 1999, $20,140 was payable to PIM
related to management fees, administrative and certain other services.
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 $14,435 in transfer agent fees payable to PSC at March 31,
1999.
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 $18,510 in distribution fees payable
to PFD at March 31, 1999.
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
CDSCs are paid to PFD.
29
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 3/31/99 (continued)
- --------------------------------------------------------------------------------
For the year ended March 31, 1999, CDSCs in the amount of $30,073 were paid to
PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements result-ing in a
reduction in the Fund's total expenses. For the year ended March 31, 1999, the
Fund's expenses were reduced by $3,250 under such arrangements.
6. Forward Foreign Currency Contracts
At March 31, 1999, the Fund had entered into various contracts that obligate
the Fund to deliver currencies at specified future dates. At the maturity of a
contract, the Fund must make delivery of the foreign currency. Alternatively,
prior to the settlement date of a portfolio hedge, the Fund may close out such
contracts by entering into an offsetting hedge contract. Open portfolio hedges
at March 31, 1999 were as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Contracts In Exchange Settlement Net Unrealized
Currency to Deliver For Date Value Loss
- ----------- ------------- ------------- ------------ ------------- ---------------
<S> <C> <C> <C> <C> <C>
JPY 396,716,000 $2,892,972 7/29/99 $3,402,633 $(509,661)
- --------------------------------------------------------------------------------------------
</TABLE>
Included in accumulated net realized loss on forward foreign currency contracts
and other assets and liabilities denominated in foreign currencies is $42,773,
which represents the realized loss on closed but unsettled portfolio hedges
totaling $457,028.
At March 31, 1999, the gross forward currency settlement contracts receivable
and payable were $331,678 and $331,347, respectively, resulting in a net
receivable of $331.
7. Line of Credit Facility
Effective April 14, 1998, the Fund, along with certain other Funds in the
Pioneer Family of Funds (the Funds), collectively participate in a $50 million
committed, unsecured revolving line of credit facility. Borrowings are used
solely for temporary or emergency purposes. The Fund may borrow up to the
lesser of $50 million or the limits set by its prospectus for borrowings.
Interest on collective borrowings of up to $25 million is payable at the
Federal Funds Rate plus 3/8% on an annualized basis, or at the Federal Funds
Rate plus 1/2% if the borrowing exceeds $25 million at any one time. The Funds
pay an annual commitment fee for this facility. The commitment fee is allocated
among such Funds based on their respective borrowing limits. For the year ended
March 31, 1999, the Fund had no borrowings under this agreement.
30
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Pioneer World Equity Fund
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareowners 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 March 31, 1999, 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
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
March 31, 1999 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 March 31, 1999, 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
May 7, 1999
31
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Pioneer World Equity Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice
Margaret B.W. Graham President
John W. Kendrick Patrick M. Smith, Vice President
Marguerite A. Piret John A. Boynton, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
</TABLE>
Investment Adviser
Pioneer Investment Management, Inc.
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
32
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THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
representative, 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.
<TABLE>
<S> <C>
Growth Funds Income Funds
United States Taxable
Pioneer Capital Growth Fund Pioneer America Income Trust
Pioneer Growth Shares Pioneer Bond Fund
Pioneer Micro-Cap Fund Pioneer Short-Term Income Trust
Pioneer Mid-Cap Fund Pioneer Strategic Income Fund
Pioneer Small Company Fund
Tax-Free
Pioneer Tax-Free Income Fund
International/Global
Pioneer Emerging Markets Fund
Pioneer Europe Fund Money Market Fund
Pioneer Gold Shares Pioneer Cash Reserves Fund
Pioneer Indo-Asia Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
</TABLE>
33
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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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<PAGE>
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds
you wish to invest in. You choose the amounts and dates for Pioneer to sell
shares of your original fund and use the proceeds to buy shares of the other
funds you have chosen. Over time, your investment will be shifted out of the
original fund. (Automatic Exchange is available for originating accounts with a
balance of $5,000 or more.)
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 for accounts with a value of $10,000 or
more.)
35
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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)
Traditional IRA
A Traditional IRA 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
Contributions, up to $2,000 a year per person in earned income, are not tax-
deductible, but earnings are tax-free for qualified withdrawals. You can
contribute beyond age 70-1/2.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $10,000 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match Plan for Employees) 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 specific conditions to avoid
penalties.
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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.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
37
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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.
[logo: Pioneer]
Pioneer Investment Management, Inc.
60 State Street 0599-6459
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [recycle symbol] Printed on Recycled Paper
