[PIONEER LOGO]
Pioneer
World Equity
Fund
SEMIANNUAL REPORT 9/30/99
<PAGE>
Table of Contents
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<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
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LETTER FROM THE CHAIRMAN 9/30/99
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Dear Shareowner,
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I would like to take this opportunity to thank you for your interest in Pioneer
World Equity Fund. This report covers the period from March 31, 1999 through
September 30, 1999.
As we approach the new millennium, it seems a suitable time to look back on how
the world of investing has changed since Pioneer was founded in 1928. The
creation of affordable investment options, including mutual funds, has brought
opportunity to millions of people worldwide and surely should be counted among
this century's greatest accomplishments. Just consider the impact a few notable
innovations - money market funds, employer-sponsored retirement vehicles and the
concept of international investing - have had on your life.
In some ways, investing has changed a great deal. One thing, however, remains
the same - our belief in the importance of a long-term perspective. Attempts at
market timing and the advent of day-trading unfortunately have led some to adopt
a "get rich quick" mentality. Looking back over time, lasting wealth has come to
investors who held to their discipline and didn't veer off course to chase the
rising star of the day. A solid, forward-thinking plan can offer great rewards,
even though it can be a tad dull moment-to-moment.
This year, we are taking extra steps to make your planning easier, especially
tax planning. I'm pleased to announce that Pioneer funds will distribute their
capital gains in November - a month earlier than in past years. We hope you'll
take advantage of the extra time to work with your investment professional to
prepare for the new century.
I encourage you to read on to learn more about your Fund, including the question
and answer session with portfolio manager Patrick Smith. If you have questions,
please contact your investment professional. You can also visit our web site at
www.pioneerfunds.com to obtain information about our funds and to view 1999
distribution information.
Respectfully,
/s/John F. Cogan, Jr.
------------------
John F. Cogan, Jr.
Chairman and President
1
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Pioneer World Equity Fund
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PORTFOLIO SUMMARY 9/30/99
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P o r t f o l i o D i v e r s i f i c a t i o n
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(As a percentage of total investment portfolio)
[PIE CHART PLOT POINTS]
International Preferred Stocks 1%
Depositary Receipts for
International Stocks 2%
Short-Term Cash Equivalents 5%
U.S. Common Stocks 30%
International Common Stocks 62%
[END PLOT POINTS]
G e o g r a p h i c a l D i s t r i b u t i o n
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(As a percentage of equity holdings)
[BAR CHART PLOT POINTS]
<TABLE>
<S> <C>
United States 31.8% Finland 1.4%
Japan 13.7% Mexico 1.2%
United Kingdom 12.1% Sweden 1.1%
France 7.3% Brazil 1.0%
Germany 5.0% India 0.6%
Switzerland 4.0% Singapore 0.6%
Canada 3.9% Thailand 0.6%
Netherlands 3.6% Norway 0.5%
Italy 3.1% Hong Kong 0.5%
Spain 2.8% New Zealand 0.4%
Australia 2.3% Chile 0.2%
Israel 2.1% Malaysia 0.2%
</TABLE>
[END OF PLOT POINTS]
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)
<TABLE>
<S> <C> <C> <C>
1. NTT Mobile 1.94% 6. Sony Corp. 1.22%
Communication
Network, Inc.
2. Shohkoh Fund & Co., Ltd. 1.63 7. Mannesmann AG 1.19
3. Sidel, SA 1.59 8. IBM Corp. 1.13
4. Lucent Technologies, Inc. 1.35 9. Daiwa Securities Co., Ltd. 1.12
5. Vodafone Group Plc 1.29 10. Bell Atlantic Corp. 1.11
</TABLE>
Fund holdings will vary for other periods.
2
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Pioneer World Equity Fund
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PERFORMANCE UPDATE 9/30/99 CLASS A SHARES
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S h a r e P r i c e s a n d D i s t r i b u t i o n s
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<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 9/30/99 3/31/99
$ 19.82 $ 18.55
Distributions per Share Income Short-Term Long-Term
(3/31/99-9/30/99) Dividends Capital Gains Capital Gains
- - -
</TABLE>
I n v e s t m e n t R e t u r n s
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The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer World Equity Fund at public offering price, compared to the growth of
the Morgan Stanley Capital International (MSCI) World Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of September 30, 1999)
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 10.48% 8.25%
(10/31/96)
1 Year 28.38 21.02
</TABLE>
[MOUNTAIN CHART PLOT POINTS]
Growth of $10,000
<TABLE>
<CAPTION>
Pioneer MSCI
World World
Equity Index
Fund*
<S> <C> <C>
10/96 9,425 10,000
10,174 10,387
3/97 10,488 10,417
11,784 11,984
9/97 11,841 12,327
10,765 12,023
3/98 12,728 13,745
12,347 14,024
9/98 9,818 12,343
11,561 14,948
3/99 11,797 15,483
12,674 16,222
9/99 12,604 15,982
</TABLE>
[END OF PLOT POINTS]
* 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.
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
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Pioneer World Equity Fund
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PERFORMANCE UPDATE 9/30/99 CLASS B SHARES
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S h a r e P r i c e s a n d D i s t r i b u t i o n s
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<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 9/30/99 3/31/99
$ 19.28 $ 18.11
Distributions per Share Income Short-Term Long-Term
(3/31/99-9/30/99) Dividends Capital Gains Capital Gains
- - -
</TABLE>
I n v e s t m e n t R e t u r n s
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The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer World Equity Fund, compared to the growth of the Morgan Stanley
Capital International (MSCI) World Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of September 30, 1999)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 9.38% 8.51%
(10/31/96)
1 Year 27.19 23.19
</TABLE>
[MOUNTAIN CHART PLOT POINTS]
Growth of $10,000
<TABLE>
<CAPTION>
Pioneer MSCI
World World
Equity Index
Fund*
<S> <C> <C>
10/96 10,000 10,000
10,747 10,387
3/97 11,060 10,417
12,393 11,984
9/97 12,427 12,327
11,273 12,023
3/98 13,300 13,745
12,869 14,024
9/98 10,202 12,343
11,996 14,948
3/99 12,205 15,483
13,088 16,222
9/99 12,693 15,982
</TABLE>
[END OF PLOT POINTS]
* Reflects deduction of the maximum applicable contingent deferred sales charge
(CDSC) at the end of the period and assumes reinvestment of distributions.
The maximum CDSC of 4% declines over six years.
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 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
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Pioneer World Equity Fund
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PERFORMANCE UPDATE 9/30/99 CLASS C SHARES
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S h a r e P r i c e s a n d D i s t r i b u t i o n s
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<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 9/30/99 3/31/99
$ 19.29 $ 18.13
Distributions per Share Income Short-Term Long-Term
(3/31/99-9/30/99) Dividends Capital Gains Capital Gains
- - -
</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 September 30, 1999)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 9.40% 9.40%
(10/31/96)
1 Year 27.26 27.26
</TABLE>
[MOUNTAIN CHART PLOT POINTS]
Growth of $10,000
<TABLE>
<CAPTION>
Pioneer MSCI
World World
Equity Index
Fund*
<S> <C> <C>
10/96 10,000 10,000
10,773 10,387
3/97 11,080 10,417
12,413 11,984
9/97 12,447 12,327
11,286 12,023
3/98 13,313 13,745
12,876 14,024
9/98 10,202 12,343
11,996 14,948
3/99 12,218 15,483
13,101 16,222
9/99 13,000 15,982
</TABLE>
[END OF PLOT POINTS]
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to shares sold within one year of purchase.
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
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PORTFOLIO MANAGEMENT DISCUSSION 9/30/99
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In a world being rapidly transformed by technological progress, innovative
businesses are having a profound impact on corporate profitability and global
growth. Your Fund benefited from holding a wide range of these companies during
the six months ended September 30, 1999. While many of these companies were
fairly immune to the vagaries of financial markets, other Fund holdings
succumbed to the more mundane pressures of rising interest rates and sagging
profits. In the following interview, portfolio manager Patrick M. Smith explains
the confluence of these factors and their impact on Fund performance.
Q: Did the Fund perform well given these conflicting influences?
A: Yes, absolutely and relatively speaking. Pioneer World Equity Fund's Class
A shares returned 6.85% at net asset value (6.46% for Class B shares and
6.40% for Class C shares). In comparison, the Morgan Stanley Capital
International (MSCI) World Index climbed 3.22%, while the average global
fund returned 6.39% as reported by Lipper, Inc. (Lipper is an independent
firm that tracks mutual fund performance excluding sales charges.) Japanese
stocks and investments in high-tech companies, many of which are producing
a wide range of services and software for the internet, boosted returns.
Financial and insurance companies suffered in the wake of higher interest
rates.
Q: Why did the weaker U.S. dollar and an improving global outlook prompt
changes in the Fund's strategy?
A: Inflation fears and a weaker dollar have dimmed our outlook for U.S. stocks
for the balance of 1999. Further, over the past six months, we have
evaluated trends that indicate higher growth prospects for Japan and
continental Europe relative to the United Statese - prompting our modest
reallocation to investments overseas.
We've had concerns about the historically unrealistic valuations of U.S.
stocks for some time. This accounts for the Fund's smaller allocation to
U.S. equities compared to similar funds and the MSCI World Index. By
September 30, we'd whittled the weighting down to 30% - a decision that
proved wise. This was accomplished largely by eliminating positions in
Ambac Financial Group and SLM Holdings - two financial services companies
that we expected to underperform in the higher-interest-rate environment.
We also trimmed positions in State
6
<PAGE>
Pioneer World Equity Fund
Street, which was the third largest holding at the beginning of the period,
and Mellon Bank, redirecting the proceeds from these sales into Japanese
and European stocks.
Q: Did financial holdings suffer in the wake of higher interest rates?
A: Yes. With the exception of Japan, many developed markets saw interest rates
edge higher. In the United States, a pre-emptive Federal Reserve raised
rates twice during the period in response to its concerns about inflation.
Fearing the European Central Bank would need to follow suit, investor
demand for financial holdings fell. While many holdings suffered, there
were some big gainers most notably Daiwa Securities (Japan) and Mediolanum
(Italy).
Q: Why were Japanese stocks so strong?
A: The yen's impressive climb and strong foreign demand sparked a breathtaking
rally here. Investors seem convinced that Asia's largest economy is taking
the right steps to restructure its banking industry and continue growth
initiatives. However, we have some concerns about leaders' resolve to
implement real reform rather than quick fixes. We have identified a few
companies that stand to benefit from stronger growth, including two new
purchases - Oriental Land, the operator of Disneyland in Tokyo, and Sharp,
a leading developer of flat-panel technology. Ryohin Keikaku, which
specializes in affordable, popular clothing, is one of a few publicly
traded retailers with strong management. NTT Mobile Communication Network,
the Fund's largest holding, is a leading provider of cellular phone and
network-integration services worldwide.
Q: The technology sector is comprised of many fast-growing businesses. Which
are most attractive?
A: Technological innovation is creating a new world economy and is widely
credited with boosting growth and reducing inflation. High-tech companies
are also propelling the growth of many information-dependent industries,
including finance, media and retail.
Opportunities abound, but we look for companies with the ability to
transcend national and regional boundaries. With their well-constructed,
sleek cellular phones, telecommunications-equipment providers Nokia
(Finland) and Matsushita Communication
7
<PAGE>
Pioneer World Equity Fund
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PORTFOLIO MANAGEMENT DISCUSSION 9/30/99 (continued)
- --------------------------------------------------------------------------------
Industrial (Japan) dominate their respective markets. Texas Instruments
(U.S.) is set to benefit from a shift in growth from the electronics sector
to non-PC devices, such as handheld computers. Network solutions provider
Sun Microsystems (U.S.) continues to grow strongly on the back of its
internet and corporate intranet focus. Software-industry giants Oracle
(U.S.) and SAP (Germany) are profiting from the increased need to improve
corporate infrastructure related to trade on the World Wide Web and
E-business. Computer consulting firms Merkantildata (Norway) and Getronics
(Netherlands) help clients integrate computers and software and are a
valuable resource for corporations looking to outsource projects. Cap
Gemini (France) is a global consultant benefiting from the drive to become
Y2K compliant, the integration of the euro and large, corporate ERP system
installations.
Q: Mergers and acquisitions seem to be at an all time high. Did they affect
the Fund?
A: Absolutely. The pace of merger and acquisition activity is quite
remarkable, and nowhere is it more pronounced than in Europe. Much of the
consolidation and restructuring is the result of deregulation and
corporations' efforts to maintain global competitiveness - just as it was
in the United States during the past decade. For the large
telecommunication companies, buying start-ups or competitors is a quicker,
cheaper way to gain market share. Following its purchase of AirTouch,
Vodafone Group (U.K.) is set to become the world's largest cellular
company. The oil industry is also seeing its share of mergers as producers
join forces, albeit hostile at times, to achieve greater economies of
scale. French-based Total Fina (France), recently purchased Elf Aquitaine
(France), a Fund holding, only months after buying PetroFina (Belgium).
Q: What's in store for global equities?
A: With the vigor of the nine-year U.S. expansion in question, investors are
looking for economic growth in Europe and Japan to provide a counterweight
in the world economy. If we truly are on the verge of a shift in economic
strength, we feel confident that your Fund holds the companies with the
leadership qualities to excel well into the 21st century.
8
<PAGE>
Pioneer World Equity Fund
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SCHEDULE OF INVESTMENTS 9/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 95.4%
PREFERRED STOCKS - 1.4%
1,190,000 Petrobras Brasileiro SA $ 182,219
500 SAP AG 224,578
107,178 Telecomunicacoes de Sao Paulo SA* 9,601
7,900 Tele Norte Leste Participacoes (A.D.R.) 122,450
-----------
TOTAL PREFERRED STOCKS
(Cost $515,612) $ 538,848
-----------
COMMON STOCKS - 94.0%
Basic Materials - 2.1%
Chemicals - 0.7%
2,600 BASF AG $ 111,799
2,800 E.I. du Pont de Nemours & Co. 170,450
-----------
$ 282,249
-----------
Chemicals (Diversified) - 1.4%
6,700 Hoechst AG $ 291,450
45,000 WMC Ltd. 229,168
-----------
$ 520,618
-----------
Total Basic Materials $ 802,867
-----------
Capital Goods - 5.5%
Aerospace/Defense - 0.5%
28,000 British Aerospace Plc $ 184,408
-----------
Electrical Equipment - 0.6%
2,000 General Electric Co. $ 237,125
-----------
Engineering & Construction - 0.9%
2,000 IHC Caland NV $ 98,985
1,000 Suez Lyonnaise Des Eaux 161,781
800 Technip 85,020
-----------
$ 345,786
-----------
Machinery (Diversified) - 2.0%
35,000 Invensys Plc $ 170,001
5,700 Sidel, SA 579,985
-----------
$ 749,986
-----------
Manufacturing (Diversified) - 1.1%
2,700 Mannesmann AG $ 433,993
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer World Equity Fund
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SCHEDULE OF INVESTMENTS 9/30/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Trucks & Parts - 0.4%
2,200 Valeo $ 159,110
-----------
Total Capital Goods $ 2,110,408
-----------
Communication Services - 13.6%
Cellular/Wireless Telecommunications - 4.6%
8,700 Libertel NV* $ 156,954
36 NTT Mobile Communication Network, Inc. 707,931
22,000 SmarTone Telecommunications Holdings Ltd. 67,689
5,700 Sonera Group Plc 163,803
50,000 Telecom Italia Mobile SpA 184,132
20,000 Vodafone Group Plc 472,051
-----------
$ 1,752,560
-----------
Telecommunications (Long Distance) - 1.5%
3,000 AT&T Corp. $ 130,500
7,850 Bell Canada International, Inc.* 80,097
7,000 Sprint Corp. 379,750
-----------
$ 590,347
-----------
Telephone - 7.5%
8,000 BCE, Inc. $ 397,252
6,000 Bell Atlantic Corp. 403,875
2,150 Bell Canada International, Inc.* 22,038
5,000 BellSouth Corp. 225,000
25,238 British Telecom Plc 382,092
11,500 Global Telesystems Group, Inc.* 226,766
25,000 Grupo Carso Global Telecom* 138,525
4,000 GTE Corp. 307,500
14,000 Mahanagar Telephone Nigam Ltd. (G.D.R.) 141,750
4,000 SBC Communications, Inc. 204,250
20,988 Telefonica SA* 335,749
5,000 Teleglobe, Inc. 77,206
-----------
$ 2,862,003
-----------
Total Communication Services $ 5,204,910
-----------
Consumer Cyclicals - 9.5%
Automobiles - 1.0%
1,820 DaimlerChrysler AG $ 126,106
5,000 Ford Motor Co. 250,937
-----------
$ 377,043
-----------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Hardware & Tools - 0.3%
10,000 Makita Corp. $ 112,370
-----------
Household Furniture & Appliances - 2.7%
900 Ryohin Keikaku Co., Ltd. $ 181,197
900 Ryohin Keikaku Co., Ltd. (New Shares)* 180,354
13,000 Sharp Corp. 207,679
3,000 Sony Corp. 446,952
-----------
$ 1,016,182
-----------
Publishing - 0.4%
3,000 McGraw-Hill Co., Inc. $ 145,125
-----------
Retail (Building Supplies) - 0.5%
3,000 Home Depot, Inc. $ 205,875
-----------
Retail (Discounters) - 0.4%
5,375 Dollar General Corp. $ 165,953
-----------
Retail (General Merchandise) - 0.8%
3,000 Dayton Hudson Corp. $ 180,187
3,000 Wal-Mart Stores, Inc. 142,687
-----------
$ 322,874
-----------
Retail (Specialty) - 0.7%
4,200 Barnes & Noble, Inc.* $ 109,200
111,000 Cifra, SA de CV (Series C)* 171,217
-----------
$ 280,417
-----------
Services (Commercial & Consumer) - 2.7%
160 Altran Technologies SA $ 48,109
15,000 Hays Plc 162,016
70 Kuoni Reisen Holding AG (Series B) (Registered) 275,090
6,500 Select Appointments Holdings Plc* 109,966
6,700 TNT Post Group NV 169,365
3,790 Vivendi 266,035
-----------
$ 1,030,581
-----------
Total Comsumer Cyclicals $ 3,656,420
-----------
Consumer Staples - 10.3%
Beverages (Non-Alcoholic) - 0.8%
5,000 Embotelladora Andina SA (A.D.R.) $ 86,563
4,900 Coca-Cola West Japan Co., Ltd. 224,834
-----------
$ 311,397
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 9/30/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Broadcasting (Television/Radio/Cable) - 1.2%
3,500 CBS Corp.* $ 161,875
2,900 Grupo Televisa SA (A.D.R.)* 115,819
2,900 United Pan-Europe Communications NV* 177,172
-----------
$ 454,866
-----------
Distributors (Food & Health) - 0.4%
12,000 Metro-Richelieu, Inc. $ 160,397
-----------
Entertainment - 1.2%
3,000 Oriental Land Co., Ltd. $ 248,619
10,000 Pearson Plc 214,045
-----------
$ 462,664
-----------
Foods - 2.7%
5,000 ConAgra, Inc. $ 112,813
1,700 General Mills, Inc. 137,913
600 Groupe Danone 145,922
3,000 H.J. Heinz Co. 129,000
32,300 Thai Union Frozen Products Public Co., Ltd. 111,203
26,785 Unilever Plc 251,819
2,300 Wrigley (Wm.) Jr. Co. 158,269
-----------
$ 1,046,939
-----------
Household Products (Non-Durables) - 0.7%
2,000 Colgate-Palmolive Co. $ 91,500
6,000 Kao Corp. 169,117
-----------
$ 260,617
-----------
Personal Care - 0.2%
8,000 Safilo $ 63,861
-----------
Restaurants - 1.4%
24,000 Compass Group Plc $ 236,701
6,800 McDonald's Corp. 292,400
-----------
$ 529,101
-----------
Retail Stores (Drug Stores) - 0.4%
6,600 Walgreen Co. $ 167,475
-----------
Retail Stores (Food Chains) - 0.6%
1,400 Carrefour SA $ 223,960
-----------
Services (Employment) - 0.7%
300 Adecco SA $ 167,510
</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>
Services (Employment) - (continued)
4,000 Robert Half International, Inc.* $ 96,000
-----------
$ 263,510
-----------
Total Consumer Staples $ 3,944,787
-----------
Energy - 4.0%
Oil & Gas (Exploration/Production) - 0.7%
11,000 Canadian Natural Resources Ltd.* $ 257,397
-----------
Oil & Gas (Refining & Marketing) - 0.5%
30,000 ENI SpA $ 188,071
-----------
Oil (International Integrated) - 2.8%
1,900 Chevron Corp. $ 168,625
1,400 Elf Aquitaine 244,375
1,600 Mobil Corp. 161,200
40,000 Shell Transport & Trading Co. 297,687
3,600 Texaco, Inc. 227,250
-----------
$ 1,099,137
-----------
Total Energy $ 1,544,605
-----------
Financial - 17.9%
Banks (Major Regional) - 6.1%
45,000 Banca Fideuram SpA $ 254,805
5,000 Banca Popolare di Brescia 213,934
11,000 Banco Popolare di Milano 80,433
18,720 Banco Santander Central Hispano SA 193,468
50,000 Bangkok Bank Ltd. 98,279
2,500 Comerica, Inc. 126,563
1,100 Depfa-Bank 90,736
110 Julius Baer Holding Ltd. 325,769
3,800 Mellon Bank Corp. 128,250
6,000 National City Corp. 160,125
27,600 Overseas-Chinese Banking Corp., Ltd. 214,306
2,800 State Street Corp. 180,950
13,500 Svenska Handelsbanken 188,667
3,250 Uniao de Bancos Brasileiros SA (G.D.R.) 57,484
-----------
$ 2,313,769
-----------
Banks (Money Center) - 1.6%
20,500 Lloyds TSB Group Plc $ 250,787
9,000 Royal Bank of Scotland Group 192,640
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 9/30/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Banks (Money Center) - (continued)
550 UBS AG $ 154,832
-----------
$ 598,259
-----------
Banks (Regional) - 0.8%
10,175 Halifax Plc $ 127,994
10,000 Toronto-Dominion Bank 193,524
-----------
$ 321,518
-----------
Financial (Diversified) - 2.7%
20,000 Amp Ltd. $ 186,364
2,000 Fortis NV 64,500
6,300 ICICI Ltd. (A.D.R.)* 75,600
700 Marschollek Lautenschlaeger Und Partner AG 121,293
800 Shohkoh Fund & Co., Ltd. 595,561
-----------
$ 1,043,318
-----------
Insurance (Life/Health) - 1.9%
3,000 Axa Financial, Inc. $ 167,437
8,000 Conseco, Inc. 154,500
7,000 Manulife Financial Corp.* 83,090
17,500 Mediolanum SpA 133,922
13,000 Prudential Plc 200,132
-----------
$ 739,081
-----------
Insurance (Multi-Line) - 2.3%
500 Allianz AG $ 143,900
2,875 American International Group, Inc. 249,945
1,600 Axa SA 202,312
4,000 Fortis NL* 128,999
300 Zurich Allied AG (New Shares) 167,110
-----------
$ 892,266
-----------
Insurance (Property/Casualty) - 0.3%
6,000 Skandia Forsakrings AB $ 125,229
-----------
Insurance Brokers - 0.4%
2,300 Marsh & McLennan Co., Inc. $ 157,550
-----------
Investment Banking/Brokerage - 1.2%
700 Consors Discount Broker AG* $ 35,017
45,000 Daiwa Securities Co., Ltd. 408,746
-----------
$ 443,763
-----------
</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>
Investment Management - 0.6%
27,000 Amvescap Plc $ 220,055
-----------
Total Financial $ 6,854,808
-----------
Healthcare - 5.6%
Biotechnology - 0.6%
10,000 Celltech Chiroscience Plc* $ 75,245
3,600 Qiagen NV* 151,350
-----------
$ 226,595
-----------
Healthcare (Diversified) - 1.3%
3,000 Bristol-Myers Squibb Co. $ 202,500
1,600 Johnson & Johnson 147,000
2,100 Warner-Lambert Co., Inc. 139,387
-----------
$ 488,887
-----------
Healthcare (Drugs/Major Pharmaceuticals) - 3.2%
8,000 Glaxo Wellcome Plc $ 207,459
4,000 Merck & Co., Inc. 259,250
100 Novartis AG 148,143
21 Roche Holdings AG 242,689
5,000 Schering-Plough Corp. 218,125
12,000 Smithkline Beecham Plc 137,812
-----------
$ 1,213,478
-----------
Healthcare (Medical Products/Supplies) - 0.5%
30,750 F.H. Faulding & Co., Ltd. $ 202,614
-----------
Total Healthcare $ 2,131,574
-----------
Technology - 21.4%
Communications Equipment - 3.7%
8,000 ECI Telecommunications Ltd. $ 197,500
2,400 Ericsson LM (B Shares) 74,405
3,250 Gilat Satellite Networks Ltd.* 174,281
7,630 Lucent Technologies, Inc. 494,996
2,000 Matsushita Communication Industrial Ltd. 221,931
3,000 Nokia Oyj 269,174
-----------
$ 1,432,287
-----------
Computers (Hardware) - 2.0%
3,400 IBM Corp. $ 412,675
4,000 Sun Microsystems, Inc.* 372,000
-----------
$ 784,675
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 9/30/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Networking) - 0.8%
4,250 Cisco Systems, Inc.* $ 291,390
-----------
Computers (Software & Services) - 3.0%
900 Cap Gemini SA $ 141,771
4,500 Check Point Software Technologies Ltd.* 379,969
5,800 Dassault Systemes SA 228,409
9,000 Exchange Holdings Plc* 24,154
6,750 Oracle Corp.* 307,125
2,000 Tietoenator Corp. (B Shares) 63,222
-----------
$ 1,144,650
-----------
Electronics (Component Distributors) - 2.7%
5,000 Hoya Corp. $ 301,526
3,000 Siemens AG 247,142
46,000 Toshiba Corp. 341,586
58,000 Varitronix International Ltd. 126,559
-----------
$ 1,016,813
-----------
Electronics (Semiconductors) - 3.8%
9,000 Fujitsu Ltd. $ 279,801
4,500 Intel Corp. 334,406
1,000 Rohm Co., Ltd. 208,353
2,250 STMicroelectronics 175,298
3,400 Texas Instruments, Inc. 279,650
2,000 Tokyo Electron Ltd. 173,237
-----------
$ 1,450,745
-----------
Equipment (Semiconductors) - 0.3%
1,600 Applied Materials, Inc.* $ 124,600
-----------
Photograpy/Imaging - 0.6%
3,000 Eastman Kodak Co. $ 226,312
-----------
Services (Computer Systems) - 2.0%
6,900 Getronics NV $ 371,240
15,000 SunGard Data Systems, Inc.* 394,687
-----------
$ 765,927
-----------
Services (Data Processing) - 2.5%
7,300 Automatic Data Processing, Inc. $ 325,762
9,000 CGI Group, Inc.* 174,172
5,900 First Data Corp. 258,862
</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>
Services (Data Processing) - (continued)
19,000 Merkantildata ASA $ 194,991
-----------
$ 953,787
-----------
Total Technology $ 8,191,186
-----------
Transportation - 1.5%
Railroads - 0.3%
75,000 Malaysia International Shipping Bhd. $ 102,632
-----------
Shipping - 0.6%
7,500 Brambles Industries Ltd. $ 217,269
-----------
Truckers - 0.6%
81,835 Stagecoach Holdings Plc $ 255,672
-----------
Total Transportation $ 575,573
-----------
Utilities - 2.6%
Electric Companies - 2.0%
81,000 Contact Energy Ltd.* $ 131,545
7,000 Endesa SA 132,916
27,000 Scottish Power Plc 244,950
15,500 Union Electrica Fenosa SA 232,449
-----------
$ 741,860
-----------
Natural Gas - 0.3%
3,200 Williams Companies, Inc. $ 119,800
-----------
Water Utilities - 0.3%
7,000 Aguas De Barcelona $ 117,196
-----------
Total Utilities $ 978,856
-----------
TOTAL COMMON STOCKS
(Cost $29,168,043) $35,995,994
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $29,683,655) (a) $36,534,842
-----------
Principal
Amount
TEMPORARY CASH INVESTMENT - 4.6%
Commercial Paper - 4.6%
$1,748,000 American Express Co., 5.5%, 10/1/99 $ 1,748,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,748,000) $ 1,748,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $31,431,655) (b) $38,282,842
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 9/30/99 (continued)
- --------------------------------------------------------------------------------
* Non-income producing security.
(a) Distribution of investments by country of issue, as a percentage of total
investment in securities, is as follows:
<TABLE>
<S> <C>
United States 31.8%
Japan 13.7%
United Kingdom 12.1%
France 7.3%
Germany 5.0%
Switzerland 4.0%
Canada 3.9%
Netherlands 3.6%
Italy 3.1%
Spain 2.8%
Australia 2.3%
Israel 2.1%
Finland 1.4%
Mexico 1.2%
Sweden 1.1%
Brazil 1.0%
Others (Individually less than 1%) 3.6%
-----
100.0%
-----
</TABLE>
(b) At September 30, 1999, the net unrealized gain on investments based on cost
for federal income tax purposes of $31,436,154 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which there is an
excess of value over tax cost $8,755,510
Aggregate gross unrealized loss for all investments in which there is an
excess of tax cost over value (1,908,822)
----------
Net unrealized gain $6,846,688
----------
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended September 30, 1999 aggregated $9,868,962 and $13,105,512,
respectively.
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 9/30/99
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash investment
of $1,748,000) (cost $31,431,655) $38,282,842
Cash 797
Foreign currencies, at value 122,794
Receivables -
Investment securities sold 347,615
Fund shares sold 12,831
Dividends, interest and foreign taxes withheld 67,911
Other 5,198
------------
Total assets $38,839,988
------------
LIABILITIES:
Payables -
Investment securities purchased $ 248,879
Fund shares repurchased 158,432
Forward foreign currency portfolio hedge contracts, open-net 275,169
Forward foreign currency settlement contracts, open-net 455
Due to affiliates 53,953
Accrued expenses 76,983
------------
Total liabilities $ 813,871
------------
NET ASSETS:
Paid-in capital $32,703,949
Accumulated undistributed net investment income 180,836
Accumulated net realized loss on investments
and foreign currency transactions (1,434,984)
Net unrealized gain on investments 6,851,187
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (274,871)
------------
Total net assets $38,026,117
------------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $24,226,168/1,222,222 shares) $ 19.82
------------
Class B (based on $12,001,993/622,525 shares) $ 19.28
------------
Class C (based on $1,797,956/93,222 shares) $ 19.29
------------
MAXIMUM OFFERING PRICE:
Class A $ 21.03
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended 9/30/99
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $25,916) $ 361,800
Interest 33,689
----------
Total investment income $ 395,489
----------
EXPENSES:
Management fees $ 196,926
Transfer agent fees
Class A 54,673
Class B 29,772
Class C 5,550
Distribution fees
Class A 31,499
Class B 61,403
Class C 9,526
Administrative fees 14,267
Custodian fees 23,056
Registration fees 14,752
Professional fees 22,235
Printing 11,720
Fees and expenses of nonaffiliated trustees 12,540
Miscellaneous 2,686
----------
Total expenses $ 490,605
Less management fees waived by Pioneer
Investment Management, Inc. (85,542)
Less fees paid indirectly (2,427)
----------
Net expenses $ 402,636
----------
Net investment loss $ (7,147)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $2,466,714
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (445,427) $2,021,287
---------- ----------
Change in net unrealized gain or loss from:
Investments $ 288,127
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 285,180 $ 573,307
---------- ----------
Net gain on investments and foreign currency
transactions $2,594,594
----------
Net increase in net assets resulting from operations $2,587,447
----------
</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 Six Months Ended 9/30/99 and the Year Ended 3/31/99
<TABLE>
<CAPTION>
Six Months Ended Year Ended
9/30/99 3/31/99
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (7,147) $ (87,755)
Net realized gain (loss) on investments and foreign
currency transactions 2,021,287 (2,357,249)
Change in net unrealized gain on investments and foreign
currency transactions 573,307 (1,418,208)
------------- -----------
Net increase (decrease) in net assets resulting from
operations $ 2,587,447 $(3,863,212)
------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain:
Class A ($0.00 and $0.01 per share, respectively) $ -- $ (18,666)
Class B ($0.00 and $0.01 per share, respectively) -- (8,958)
Class C ($0.00 and $0.01 per share, respectively) -- (1,254)
------------- -----------
Total distributions to shareholders $ -- $ (28,878)
------------- -----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 15,594,303 $61,811,613
Reinvestment of distributions -- 26,557
Cost of shares repurchased (18,337,344) (64,228,228)
------------- -----------
Net decrease in net assets resulting from
fund share transactions $ (2,743,041) $(2,390,058)
------------- -----------
Net decrease in net assets $ (155,594) $(6,282,148)
NET ASSETS:
Beginning of period 38,181,711 44,463,859
------------- -----------
End of period (including accumulated undistributed net
investment income of $180,836 and $187,983,
respectively) $ 38,026,117 $38,181,711
------------- -----------
</TABLE>
<TABLE>
<CAPTION>
9/99 Shares 9/99 Amount 3/99 Shares 3/99 Amount
<S> <C> <C> <C> <C>
CLASS A
Shares sold 614,641 $11,941,616 2,272,092 $42,059,107
Reinvestment of distributions -- -- 974 17,291
Less shares repurchased (702,929) (13,736,338) (2,564,172) (47,222,710)
-------- ----------- ---------- -----------
Net decrease (88,288) $(1,794,722) (291,106) $(5,146,312)
-------- ----------- ---------- -----------
CLASS B
Shares sold 106,164 $ 2,039,131 356,595 $ 6,535,375
Reinvestment of distributions -- -- 472 8,193
Less shares repurchased (146,844) (2,804,647) (256,431) (4,494,547)
-------- ----------- ---------- -----------
Net increase (decrease) (40,680) $ (765,516) 100,636 $ 2,049,021
-------- ----------- ---------- -----------
CLASS C
Shares sold 84,401 $ 1,613,556 695,909 $13,217,131
Reinvestment of distributions -- -- 62 1,073
Less shares repurchased (94,053) (1,796,359) (657,018) (12,510,971)
-------- ----------- ---------- -----------
Net increase (decrease) (9,652) $ (182,803) 38,953 $ 707,233
-------- ----------- ---------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 9/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended Year Ended 10/31/96 to
9/30/99 3/31/99 3/31/98 3/31/97
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 18.55 $ 20.03 $ 16.67 $ 15.00
------- ------- -------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.04 $ 0.01 $ (0.01) $ 0.01
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.23 (1.48) 3.54 1.69
------- ------- -------- -------
Net increase (decrease) from investment operations $ 1.27 $ (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 $ 1.27 $ (1.48) $ 3.36 $ 1.67
------- ------- -------- --------
Net asset value, end of period $ 19.82 $ 18.55 $ 20.03 $ 16.67
------- ------- -------- --------
Total return* 6.85% (7.32)% 21.36% 11.32%
Ratio of net expenses to average net assets 1.76%**+ 1.76%+ 1.79%+ 1.80%**+
Ratio of net investment income (loss) to average net assets 0.25%**+ 0.00%+ (0.07)%+ 0.08%**+
Portfolio turnover rate 52%** 72% 39% 18%**
Net assets, end of period (in thousands) $24,226 $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 2.19%** 2.15% 2.59% 3.70%**
Net investment loss (0.18)%** (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% 1.75%**
Net investment income (loss) 0.26%** 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.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 9/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended Year Ended 10/31/96 to
9/30/99 3/31/99 3/31/98 3/31/97
<S> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 18.11 $ 19.75 $ 16.59 $15.00
------- ------- ------- ------
Increase (decrease) from investment operations:
Net investment loss $ (0.06) $ (0.11) $ (0.14) $(0.03)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.23 (1.52) 3.47 1.62
------- ------- ------- ------
Net increase (decrease) from investment operations $ 1.17 $ (1.63) $ 3.33 $ 1.59
Distributions to shareholders:
Net realized gain -- (0.01) (0.17) --
------- ------- ------- ------
Net increase (decrease) in net asset value $ 1.17 $ (1.64) $ 3.16 $ 1.59
------- ------- ------- ------
Net asset value, end of period $ 19.28 $ 18.11 $ 19.75 $16.59
------- ------- ------- ------
Total return* 6.46% (8.23)% 20.25% 10.60%
Ratio of net expenses to average net assets 2.56%**+ 2.42%+ 2.68%+ 2.85%**+
Ratio of net investment loss to average net assets (0.57)%**+ (0.69)%+ (0.97)%+ (0.99)%**+
Portfolio turnover rate 52%** 72% 39% 18%**
Net assets, end of period (in thousands) $12,002 $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 2.99%** 2.97% 3.48% 4.51%**
Net investment loss (1.00)%** (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 2.55%** 2.41% 2.64% 2.77%**
Net investment loss (0.56)%** (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 9/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Year Ended Year Ended 10/31/96 to
9/30/99 3/31/99 3/31/98 3/31/97
<S> <C> <C> <C> <C>
CLASS C
Net asset value, beginning of period $18.13 $19.77 $16.62 $15.00
------ ------ ------ ------
Increase (decrease) from investment operations:
Net investment loss $(0.07) $(0.04) $(0.11) $(0.07)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 1.23 (1.59) 3.43 1.69
------ ------ ------ ------
Net increase (decrease) from investment operations $ 1.16 $(1.63) $ 3.32 $ 1.62
Distributions to shareholders:
Net realized gain -- (0.01) (0.17) --
------ ------ ------ ------
Net increase (decrease) in net asset value $ 1.16 $(1.64) $ 3.15 $ 1.62
------ ------ ------ ------
Net asset value, end of period $19.29 $18.13 $19.77 $16.62
------ ------ ------ ------
Total return* 6.40% (8.22)% 20.16% 10.80%
Ratio of net expenses to average net assets 2.65%**+ 2.37%+ 2.73%+ 3.74%**+
Ratio of net investment loss to average net assets (0.68)%**+ (0.65)%+ (1.11)%+ (1.77)%**+
Portfolio turnover rate 52%** 72% 39% 18%**
Net assets, end of period (in thousands) $1,798 $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 3.09%** 2.89% 3.53% 4.91%**
Net investment loss (1.11)%** (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 2.63%** 2.35% 2.67% 3.69%**
Net investment loss (0.66)%** (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.
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 9/30/99
- --------------------------------------------------------------------------------
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 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 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
25
<PAGE>
Pioneer World Equity Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 9/30/99 (continued)
- --------------------------------------------------------------------------------
reasonable diligence. Interest income is recorded on the accrual basis, net
of unrecoverable foreign taxes withheld at the applicable country rates.
Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities that have
the highest cost and 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 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
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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 net realized capital gains in certain
countries. The required capital gains taxes, if any, are determined in
accordance with local tax laws. In determining daily net asset value, the
Fund estimates the reserve for capital gains taxes, if any, associated with
net unrealized gains on certain portfolio securities. The estimated reserve
for capital gains taxes, if any, is based on the holding periods of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. During the six months ended September 30, 1999, the
Fund paid no capital gains taxes on the sale of certain foreign securities.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
E. Fund Shares
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations are absorbed by Pioneer Funds
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $4,336 in
underwriting commissions on the sale of fund shares during the six months
ended September 30, 1999.
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Pioneer World Equity Fund
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NOTES TO FINANCIAL STATEMENTS 9/30/99 (continued)
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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,
Pioneering Investment Management, Inc. (PIM), 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.
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.
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In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. At September 30, 1999, $18,466 was payable to PIM related to
management fees 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 $18,002 in transfer agent fees payable to PSC at September 30,
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 $17,485 in distribution fees payable to
PFD at September 30, 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 CDSC are paid to PFD.
For the six months ended September 30, 1999, CDSCs in the amount of $23,189 were
paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the six months ended September 30,
1999, the Fund's expenses were reduced by $2,427 under such arrangements.
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Pioneer World Equity Fund
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NOTES TO FINANCIAL STATEMENTS 9/30/99 (continued)
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6. Forward Foreign Currency Contracts
At September 30, 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 September 30, 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 $3,510,295 1/31/00 $3,785,464 $ (275,169)
- ----------------------------------------------------------------------------------------------
</TABLE>
At September 30, 1999, the gross forward currency settlement contracts
receivable and payable were $264,891 and $265,346 respectively, resulting in a
net payable of $455.
7. Line of Credit Facility
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 six months ended September 30, 1999, the Fund had no borrowings
under this agreement.
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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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 September 30, 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
September 30, 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 September 30, 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
November 5, 1999
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Pioneer World Equity Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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Officers Trustees
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham Patrick M. Smith, Vice President
John W. Kendrick Eric W. Reckard, Treasurer
Marguerite A. Piret Joseph P. Barri, Secretary
David D. Tripple
Stephen K. West
John Winthrop
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
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THE PIONEER FAMILY OF MUTUAL FUNDS
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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.
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 Limited Maturity Bond Fund
Pioneer Mid-Cap Fund Pioneer Strategic Income Fund
Pioneer Small Company Fund
Pioneer Tax-Managed Fund Tax-Free
Pioneer Tax-Free Income Fund
International/Global
Pioneer Emerging Markets Fund Money Market Fund
Pioneer Europe Fund Pioneer Cash Reserves Fund*
Pioneer Indo-Asia Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Fund
Pioneer II
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Real Estate Shares
*An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1 per share, it is possible to
lose money by investing in the Fund.
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PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
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Your investment professional 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.
FactFoneSM
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information,
have your 13-digit account number and four-digit personal identification
number at hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as you
meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need to
do is authorize a set amount of money to be moved out of your bank account into
the Pioneer fund of your choice. Investomatic also allows you to change the
dollar amount, frequency and investment date right over the phone. By putting
aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing Pioneer
to deduct from participating employees' paychecks. You specify the dollar amount
you want to invest into the Pioneer fund(s) of your choice.
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Automatic Exchange Program
A simple way to move money from 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.)
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RETIREMENT PLANS FROM PIONEER
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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 the plan; it resembles 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.
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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:
<TABLE>
<S> <C>
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFoneSM 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
</TABLE>
This report must be preceded or accompanied by a current Fund prospectus.
[PIONEER LOGO]
<TABLE>
<S> <C>
Pioneer Investment Management, Inc.
60 State Street 7258-00-1199
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [recycle logo] Printed on Recycled Paper
</TABLE>
