<PAGE>
[PIONEER LOGO]
Pioneer
World Equity
Fund
SEMIANNUAL REPORT 9/30/00
<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 18
Notes to Financial Statements 25
Results of Shareowner Meeting 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 9/30/00
Dear Shareowner,
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By the time you read this report, we will all know how the financial markets
responded to this year's election. Market reactions to presidential elections
are often short-lived; after digesting the outcome, investors return to
thinking about the factors that influence their portfolios: the economic
outlook, the impact of higher interest rates and selecting the right
investments.
In addition to squeezing corporate profits, higher interest rates cause
consumers to postpone or reduce nonessential purchases. The cumulative weight
of these individual decisions and today's high energy prices can already be
seen in spotty retail activity and lower sales of new cars and homes. As a
result, the economy will probably back off from its extraordinary recent growth
pace to lower, more sustainable levels.
Now could be a perfect time to straighten up your financial house. Some of the
steps you can take include contributing as much as you can to your company's
retirement programs, deciding whether a Roth or Traditional IRA might be a
better choice in your circumstances, and reassessing your investments in the
light of changing markets. Your investment professional is your best guide to
making these important decisions.
An important announcement from Pioneer
I'm very happy to report that, on October 24, 2000, Pioneer Group, Inc. was
acquired by UniCredito Italiano S.p.A. Based in Milan, UniCredito is one of
Italy's largest banking groups, with assets under management of over $150
billion. As part of UniCredito, Pioneer will have access to greater resources
and enjoy expanded global asset management expertise with multi-national
operations and a significant presence in eight countries. Pioneer's tradition
of fundamental investment analysis that has been the hallmark of our success
will continue and be strengthened. We are very pleased to be joining an
organization with the reputation and breadth of UniCredito. Its flourishing
investment management business will be combined with Pioneer's U.S. and
European investment operations to form a truly world class investment asset
management company.
Sincerely,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
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Pioneer World Equity Fund
PORTFOLIO SUMMARY 9/30/00
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)
[Graphic representation of 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
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(As a percentage of equity holdings)
[Graphic representation of Line Chart]
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. Vodafone AirTouch Plc 1.96% 6. General Electric Co. 1.31%
2. NTT Mobile 1.77 7. Daiwa Securities Co., Ltd. 1.26
Communications
Networks Inc.
3. Nokia Oyj 1.69 8. Intel Corp. 1.22
4. Sony Corp. 1.41 9. Amvescap Plc. 1.20
5. SunGard Data 1.36 10. Nortel Networks Corp. 1.20
Systems, Inc.
</TABLE>
Fund holdings will vary for other periods.
2
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Pioneer World Equity Fund
PERFORMANCE UPDATE 9/30/00 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>
<S> <C> <C> <C>
Net Asset Value
per Share 9/30/00 3/31/00
$23.84 $27.50
Distributions per Share Income Short-Term Long-Term
(3/31/00-9/30/00) 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 at public offering price, compared to the growth
of the Morgan Stanley Capital International (MSCI) World Index.
<TABLE>
<S> <C> <C>
Average Annual Total Returns
(As of September 30, 2000)
Net Asset Public Offering
Period Value Price*
Life-of-Fund 12.99% 11.29%
(10/31/96)
1 Year 20.29 13.71
</TABLE>
* Reflects deduction of the maximum 5.75% sales charge at the beginning of
the period and assumes reinvestment of distributions at net asset
value.
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 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
PERFORMANCE UPDATE 9/30/00 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>
<S> <C> <C> <C>
Net Asset Value
per Share 9/30/00 3/31/00
$23.05 $26.71
Distributions per Share Income Short-Term Long-Term
(3/31/00-9/30/00) 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>
<S> <C> <C>
Average Annual Total Returns
(As of September 30, 2000)
If If
Period Held Redeemed*
Life-of-Fund 11.89% 11.34%
(10/31/96)
1 Year 19.55 15.55
</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.
[Graphic representation of 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 9/30/00 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>
<S> <C> <C> <C>
Net Asset Value
per Share 9/30/00 3/31/00
$ 23.03 $ 26.69
Distributions per Share Income Short-Term Long-Term
(3/31/00-9/30/00) 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>
<S> <C> <C>
Average Annual Total Returns
(As of September 30, 2000)
If If
Period Held Redeemed*
Life-of-Fund 11.87% 11.87%
(10/31/96)
1 Year 19.39 19.39
</TABLE>
* Assumes reinvestment of distributions. The 1% contingent
deferred sales charge (CDSC) applies to shares sold within one
year of purchase.
[Graphic representation of 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 9/30/00
With the world's major stock market indices in negative territory for the six
months ended September 30, 2000, global investors might think that the first
year of the new millennium will end much differently than it began. However,
despite near term uncertainty, market observers believe the economic conditions
are in place for a resumption of an upward course. In the following interview,
portfolio manager Patrick M. Smith explains the factors that influenced Pioneer
World Equity Fund's performance and his expectations going forward.
Q: What contributed to the reversal in global stock markets?
A: The first half of your Fund's fiscal year comes on the heels of March's
dramatic correction in the technology sector, when stocks quickly lost
much of the unprecedented gains they had amassed in the previous months.
Generally speaking, the six months ending September 30, 2000 were marked
by the flight of investors out of newer technology stocks into shares of
more established computer makers and traditional industrial companies.
After a brief rally in August, technology and telecommunication stocks
fell sharply again, when several marquis companies hinted that upcoming
earnings might fall short of expectations.
Other factors contributed to the demise of stock prices worldwide. High
oil prices are spooking investors - raising inflation concerns in
developed nations (particularly the United States) and choking economic
growth in Asian countries, which are still recovering from the 1997
crisis. In addition, weak currencies, particularly the euro, are pinching
corporate profits. Geographically, your Fund was also hurt by its limited
exposure to the stronger performing (albeit negative) U.S. market for the
six months. Of course, there were bright spots too. The Fund's financial,
health care and oil sectors turned in strong performances, as nervous
investors preferred these more defensive, undervalued stocks to
high-growth investments. However, their positive momentum was not enough
to stem the overwhelmingly negative sentiment overshadowing global
markets.
For the six months ending September 30, 2000, Class A, B and C shares
generated total returns of -13.31%, -13.70% and -13.71%, respectively, at
net asset value. The MSCI World Index posted a return of -8.39%. The 151
global funds tracked by Lipper, Inc. retreated, on
6
<PAGE>
Pioneer World Equity Fund
average, -7.69% for the same period. (Lipper is an independent firm that
measures mutual fund performance.)
Q: Why did the euro continue to decline?
A: In large part, the euro's decline can be attributed to the flight of capital
from Europe into business investment worldwide, particularly the vibrant
U.S. market. The euro has lost over 25% of its value against the dollar
since its inauguration 21 months ago. European companies are purchasing
American businesses big and small in record numbers, including Deutsche
Telekom's proposed $50.7 billion takeover of wireless communications
company VoiceStream Wireless Corp. and Unilever Group's purchase of Ben &
Jerry's Homemade Inc. As European companies buy strategic U.S. assets to
build their international presence, they are converting euros into dollars
to complete the deals - bolstering the U.S. dollar and depressing the
euro.
At some juncture, Europe will be seen as a buying opportunity. Today,
Europe is delivering its best economic performance in years, and we think
it's only a matter of time before the financial markets begin to support
the euro in force. We think the timing of this reception will depend on
Europe's ability to modernize its business environment and foster the
building of a New Economy.
Q: As demand for high-tech and telecommunications stocks has waned, prospects
for less glamorous, undervalued companies have improved. Why is that?
A: Investors have shifted from a growth-at-any-cost mentality into a decidedly
more conservative, value-conscious mode in recent months. This change of
heart is understandable given the dramatic correction in the prices of
technology and telecommunication stocks and the ongoing volatility in
global markets. Financial stocks in the United States and Europe, which
had been under pressure early in the period when interest rates were
trending up, rallied. The Fund's investments in Manulife Financial Corp.
(Canada), Mellon Bank Corp. (United States), Royal Bank of Scotland,
Amvescap (United Kingdom) and Julius Baer Holding Ltd. (Switzerland)
climbed dramatically over the six-month period. Health care holdings also
delivered strong results. Aventis (France) is one of the largest and most
undervalued pharmaceutical
7
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Pioneer World Equity Fund
PORTFOLIO MANAGEMENT DISCUSSION 9/30/00 (continued)
companies in Europe and currently holds patents on several very successful
drugs. Human Genome (United States) and Qiagen NV (The Netherlands) are
benefiting from the ongoing research in the biotechnology sector.
Soaring oil prices may be curbing profit expectations for some industries,
particularly those with high transportation costs, but the ability of the
Organization of Petroleum Exporting Countries (OPEC) to better manage
production decisions is boosting earnings growth for energy-related
companies. With markets anticipating relatively consistent oil prices for
the foreseeable future, Fund holdings Petrobras Brasileiro (Brazil),
Canadian Natural Resources, ENI (Italy) and Shell Transport & Trading Co.
(United Kingdom) appreciated nicely.
Q: Are you still optimistic about prospects for technology, media and
telecommunication stocks in spite of their correction?
A: Absolutely. Today, the markets are telling us that investors' expectations
for these stocks are less exuberant than they were earlier this year.
While we welcomed the nascent rise of these stocks last winter, we knew
these sectors were just as vulnerable to investors' expectations on the
downside. This is not to say that their prospects are not strong. Quite
the contrary. We believe long-term growth prospects are as potent as ever.
Short-term, however, investors are punishing companies for earnings
reports that do not meet their impossible expectations. We anticipate the
Fund will maintain a considerable weighting in these sectors for the
foreseeable future.
Q: What is your outlook?
A: I remain very upbeat. The International Monetary Fund recently revised its
projection for world economic growth for 2000 upward to 4.7% - the fastest
in 12 years. In the same breath, however, I am keeping a close eye on the
U.S. economy for signs of a soft landing and positive interest rate
movement. Europe has all the ingredients for stronger growth, but leaders
must make the necessary reforms to convince investors that they are
committed to a true European currency.
8
<PAGE>
Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 9/30/00 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 95.4%
PREFERRED STOCKS - 1.6%
5,400 Petrobras Brasileiro SA $ 154,411
1,800 SAP AG 451,671
11,059 Tele Norte Leste Participacoes (A.D.R.) 252,975
----------
TOTAL PREFERRED STOCKS
(Cost $549,632) $ 859,057
----------
COMMON STOCKS - 93.8%
Basic Materials - 1.6%
Chemicals - 0.3%
3,200 E.I. du Pont de Nemours & Co. $ 132,600
----------
Chemicals (Diversified) - 1.3%
7,001 Aventis SA $ 516,509
45,000 WMC Ltd. 185,815
----------
$ 702,324
----------
Total Basic Materials $ 834,924
----------
Capital Goods - 5.4%
Electrical Equipment - 3.1%
12,000 American Power Conversion Corp.* $ 230,250
11,400 General Electric Co. 657,638
3,700 Sanmina Corp.* 346,412
8,000 Solectron Corp.* 369,000
----------
$1,603,300
----------
Machinery (Diversified) - 0.5%
44,000 Komatsu Ltd. $ 267,977
----------
Manufacturing (Diversified) - 0.5%
5,000 Tyco International Ltd. $ 259,375
----------
Manufacturing (Specialized) - 0.8%
60,000 Pierelli SpA $ 175,155
8,050 Tomra Systems ASA 264,998
----------
$ 440,153
----------
Office Equipment & Supplies - 0.5%
6,000 Canon Inc. $ 266,419
----------
Total Capital Goods $2,837,224
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 9/30/00 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Communication Services - 10.0%
Cellular/Wireless Telecommunications - 4.7%
8,500 Libertel NV* $ 102,889
31 NTT Mobile Communications Networks, Inc. 890,846
52,000 Smartone Telecommunications Holdings Ltd. 81,703
5,700 Sonera Group Plc 145,044
57,000 Telecom Italia Mobile SpA 271,504
264,479 Vodafone AirTouch Plc 984,724
----------
$2,476,710
----------
Telecommunications (Long Distance) - 1.3%
7,550 Colt Telecom Group Plc* $ 215,505
5,200 KPNQwest NV* 148,171
10,500 Worldcom Inc. 318,938
----------
$ 682,614
----------
Telephone - 4.0%
5,000 BellSouth Corp. $ 201,250
20,238 British Telecom Plc 213,109
100,000 Carso Global Telecom* 242,610
43,800 Global Telesystems Group, Inc.* 199,837
4,430 KPN NV 96,601
3,000 Korea Telecom Corp. 100,875
37 Nippon Telegraph & Telephone Corp. 363,569
7,200 SBC Communications, Inc. 360,000
16,488 Telefonica SA* 327,051
----------
$2,104,902
----------
Total Communication Services $5,264,226
----------
Consumer Cyclicals - 7.5%
Distributors (Durables) - 0.5%
60,000 Itochu Corp.* $ 278,656
----------
Household Furniture & Appliances - 2.1%
25,000 Sharp Corp. $ 387,486
7,000 Sony Corp. 711,193
----------
$1,098,679
----------
Publishing - 0.5%
3,800 McGraw Hill Co. Inc. $ 241,538
----------
Retail (Building Supplies) - 0.4%
4,200 Home Depot Inc. $ 222,863
----------
</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>
Retail (General Merchandise) - 1.5%
5,300 Lawson Inc. $ 200,454
2,900 Ryohin Keikaku Co. Ltd. 228,505
7,000 Target Corp. 179,375
4,000 Wal-Mart Stores, Inc. 192,500
----------
$ 800,834
----------
Services (Advertising/Marketing) - 0.7%
620 Publigroupe SA $ 393,417
----------
Services (Commercial & Consumer) - 1.8%
30,000 Hays Plc $ 172,372
600 Kuoni Reisen Holding AG (Series B) (Registered Shares) 267,725
10,700 TNT Post Group NV 249,113
3,290 Vivendi 244,759
----------
$ 933,969
----------
Total Consumer Cyclicals $3,969,956
----------
Consumer Staples - 7.8%
Broadcasting (Television/Radio/Cable) - 1.7%
1,500 Canal Plus $ 224,908
2,900 Grupo Televisa SA (A.D.R.)* 167,294
2,200 PT Multimedia Services, Inc.* 80,668
8,000 Rogers Communications, Inc. (Class B)* 189,187
3,500 Sogecable SA* 112,781
5,700 United Pan-Europe Communications NV* 111,704
----------
$ 886,542
----------
Entertainment - 1.6%
3,000 Oriental Land Co., Ltd. $ 247,509
11,454 Pearson Plc 317,623
4,525 Viacom, Inc. (Class B) 264,712
----------
$ 829,844
----------
Foods - 1.4%
3,000 ConAgra, Inc. $ 60,188
3,400 General Mills, Inc. 120,700
2,000 Groupe Danone 274,961
130 Nestle SA (Registered Shares) 271,202
----------
$ 727,051
----------
Household Products (Non-Durables) - 0.2%
2,000 Colgate-Palmolive Co. $ 94,400
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 9/30/00 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Restaurants - 0.9%
24,000 Compass Group Plc $ 224,505
8,000 McDonald's Corp. 241,500
----------
$ 466,005
----------
Retail Stores (Drug Stores) - 0.5%
7,600 Walgreen Co. $ 288,325
----------
Retail Stores (Food Chains) - 0.4%
3,300 Carrefour SA $ 244,045
----------
Services (Employment) - 1.1%
350 Adecco SA $ 227,161
10,000 Robert Half International, Inc.* 346,875
----------
$ 574,036
----------
Total Consumer Staples $4,110,248
----------
Energy - 3.6%
Oil & Gas (Exploration/Production) - 0.4%
6,500 Canadian Natural Resources Ltd.* $ 217,313
----------
Oil (International Integrated) - 1.9%
30,000 BP Amoco Plc $ 265,102
1,900 Chevron Corp. 161,975
2,112 Exxon Mobil Corp. 188,232
50,000 Shell Transport & Trading Co. 408,191
----------
$1,023,500
----------
Oil & Gas (Refining & Marketing) - 1.3%
49,000 ENI SpA $ 259,764
2,733 Total Fina Elf SA 400,364
----------
$ 660,128
----------
Total Energy $1,900,941
----------
Financial - 17.8%
Banks (Major Regional) - 5.4%
36,000 Banca Fideuram SpA $ 597,892
23,720 Banco Santander Central Hispano SA 260,715
55,000 Bipop-Carire SA 483,475
1,500 Comerica, Inc. 87,656
1,800 Depfa Deutsche Pfandbriefbank AG 147,906
7,000 FleetBoston Financial Corp. 273,000
100 Julius Baer Holding Ltd. 519,514
</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>
Banks (Major Regional) - (continued)
3,800 Mellon Bank Corp. $ 176,225
2,500 State Street Corp. 325,000
----------
$2,871,383
----------
Banks (Money Center) - 1.6%
41,500 Lloyds TSB Group Plc $ 386,978
21,000 Royal Bank of Scotland Group 441,955
21,000 Royal Bank of Scotland Group (Bonus Shares) 25,235
----------
$ 854,168
----------
Banks (Regional) - 0.7%
12,000 Toronto-Dominion Bank $ 351,841
----------
Financial (Diversified) - 2.1%
7,400 Axa Financial, Inc. $ 376,937
11,200 Fortis NV 343,383
1,850 Lagardere SCA 112,213
1,800 Marschollek Lautenschlaeger Und Partner AG 267,186
----------
$1,099,719
----------
Insurance (Life/Health) - 2.4%
9,000 Aegon NV $ 339,946
21,000 Manulife Financial Corp.* 440,199
18,000 Mediolanum SpA 305,498
12,000 Prudential Corp. Plc 163,188
----------
$1,248,831
----------
Insurance (Multi-Line) - 1.5%
4,062 American International Group, Inc. $ 388,683
1,600 Axa SA 209,225
450 Zurich Allied AG (New Shares) 208,356
----------
$ 806,264
----------
Insurance (Property/Casualty) - 0.2%
4,000 Skandia Forsakrings AB $ 79,476
----------
Insurance Brokers - 0.5%
2,100 Marsh & McLennan Co., Inc. $ 278,775
----------
Investment Banking/Brokerage - 1.2%
54,000 Daiwa Securities Co., Ltd. $ 634,234
----------
Investment Management - 2.2%
28,000 Amvescap Plc $ 604,595
24,000 Asahi Bank Ltd. 99,004
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 9/30/00 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Investment Management - (continued)
10,000 Stillwell Financial Inc. $ 435,000
----------
$1,138,599
----------
Total Financial $9,363,290
----------
Healthcare - 9.8%
Biotechnology - 2.2%
4,200 Amgen Inc.* $ 293,278
2,500 Human Genome Sciences Inc.* 432,813
8,600 Qiagen NV* 412,676
----------
$1,138,767
----------
Healthcare (Diversified) - 1.7%
5,000 American Home Products Corp. $ 282,813
6,000 Bristol-Myers Squibb Co. 342,750
3,000 Johnson & Johnson 281,812
----------
$ 907,375
----------
Healthcare (Drugs/Major Pharmaceuticals) - 5.9%
13,000 Daiichi Pharmaceutical Co. $ 330,799
10,900 Glaxo Wellcome Plc 329,182
7,000 Merck & Co., Inc. 521,063
230 Novartis AG 353,200
7,700 Pfizer Inc. 346,019
40 Roche Holdings AG 352,331
10,000 Schering-Plough Corp. 465,000
31,000 Smithkline Beecham Plc 423,631
----------
$3,121,225
----------
Total Healthcare $5,167,367
----------
Technology - 27.7%
Communications Equipment - 6.3%
4,800 Alcatel $ 307,476
32,000 China Unicom 71,622
5,000 China Unicom (A.D.R.) 109,062
2,000 Comverse Technology, Inc* 216,000
17,600 Ericsson LM (B Shares) 268,220
2,700 Gilat Satellite Networks Ltd* 207,563
7,630 Lucent Technologies, Inc. 233,192
9,600 Motorola Inc. 271,200
2,400 Next Level Communication Inc.* 158,700
</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>
Communications Equipment - (continued)
21,000 Nokia Oyj $ 852,026
10,133 Nortel Networks Corp. 603,752
----------
$3,298,813
----------
Computers (Hardware) - 3.3%
3,500 Hewlett-Packard Co. $ 339,500
4,700 IBM Corp. 528,750
10,000 JUMPtec Industrielle Computertechnik AG* 174,060
4,000 Sun Microsystems, Inc.* 467,000
1,400 Samsung Electronics Co. 253,598
----------
$1,762,908
----------
Computers (Networking) - 1.5%
10,000 Cisco Systems, Inc.* $ 552,500
3,160 Equant NV* 115,171
1,650 Intershop Comunication AG* 107,881
----------
$ 775,552
----------
Computers (Software & Services) - 5.7%
4,000 America Online Inc. $ 215,000
7,800 Autonomy Corp Plc* 436,800
2,100 Brokat Infosystems AG* 149,364
1,200 Cap Gemini SA 225,836
2,200 Check Point Software Technologies Ltd.* 346,500
7,233 Dassault Systemes SA 588,905
3,200 Framtidsfabriken AB 25,133
1,800 GFT Technologies AG* 111,327
3,040 Microsoft Corp. 183,160
6,000 NIIT Ltd.* 186,016
4,000 Oracle Corp.* 315,000
3,000 Ser System AG* 108,703
4,900 Tietoenator Corp. (B Shares) 138,541
----------
$3,030,285
----------
Electronics (Component Distributors) - 3.0%
4,000 Felxtronics International Ltd.* $ 328,500
5,000 Hoya Corp.* 392,584
3,200 Siemens AG (Registered Shares)* 413,078
46,000 Toshiba Corp. 371,411
58,000 Varitronix International Ltd. 80,716
----------
$1,586,289
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer World Equity Fund
SCHEDULE OF INVESTMENTS 9/30/00 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Electronics (Semiconductors) - 3.9%
19,000 Fujitsu Ltd. $ 442,086
1,800 Infineon Technologies AG* 87,106
14,800 Intel Corp. 615,125
1,000 Rohm Co., Ltd. 274,484
3,750 STMicroelectronics 184,055
5,900 Texas Instruments, Inc. 278,406
2,000 Tokyo Electron Ltd. 181,692
-----------
$ 2,062,954
-----------
Services (Computer Systems) - 1.9%
15,600 Getronics NV $ 156,855
4,000 Igenico, Inc. 155,045
16,000 SunGard Data Systems, Inc.* 685,000
-----------
$ 996,900
-----------
Services (Data Processing) - 1.8%
8,800 Automatic Data Processing, Inc. $ 588,500
6,900 First Data Corp. 269,531
6,100 Infonet Services Corp.* 64,431
-----------
$ 922,462
-----------
Photography/Imaging - 0.3%
3,500 Eastman Kodak Co. $ 143,063
-----------
Total Technology $14,579,226
-----------
Transportation - 1.8%
Air Freight - 0.5%
6,500 FedEx Corp. $ 288,210
-----------
Railroads - 0.6%
18,000 Bombardier Inc. (Class B) $ 310,448
-----------
Shipping - 0.7%
13,500 Brambles Industries Ltd. $ 352,948
-----------
Total Transportation $ 951,606
-----------
Utilities - 0.8%
Electric Companies - 0.4%
12,500 Union Electrica Fenosa SA $ 225,416
-----------
Natural Gas - 0.4%
5,200 Williams Companies, Inc. $ 219,700
-----------
Total Utilities $ 445,116
-----------
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
<TABLE>
<CAPTION>
Value
<S> <C> <C>
TOTAL COMMON STOCKS
(Cost $39,194,687) $49,424,124
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $39,744,319) (a) $50,283,181
-----------
Principal
Amount
TEMPORARY CASH INVESTMENT - 4.6%
Commercial Paper - 4.6%
$2,420,000 Household Finance Corp., 6.65%, due 10/2/00 $ 2,420,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $2,420,000) $ 2,420,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $42,164,319) (b) $52,703,181
-----------
</TABLE>
* 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 35.7%
Japan 13.1%
United Kingdom 11.2%
France 7.6%
Switzerland 5.1%
Canada 4.2%
Italy 4.2%
Germany 4.0%
Netherlands 3.9%
Finland 2.3%
Spain 1.8%
Israel 1.1%
Australia 1.0%
Others (individually less than 1%) 4.8%
-----
100.0%
-----
</TABLE>
(b) At September 30, 2000, the net unrealized gain on investments
based on cost for federal income tax purposes of $42,165,442
was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $14,031,026
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (3,493,287)
-----------
Net unrealized gain $10,537,739
-----------
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended September 30, 2000 aggregated $9,771,207 and $15,959,913,
respectively.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer World Equity Fund
BALANCE SHEET 9/30/00 (unaudited)
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary
cash investment of $2,420,000) (cost $42,164,319) $52,703,181
Foreign currencies, at value 117,095
Receivables -
Fund shares sold 543,582
Dividends, interest and foreign taxes withheld 70,778
Other 4,774
-----------
Total assets $53,439,410
-----------
LIABILITIES:
Payables -
Fund shares repurchased $ 79,292
Due to bank 23,442
Due to affiliates 70,850
Accrued expenses 95,315
Other 109
-----------
Total liabilities $ 269,008
-----------
NET ASSETS:
Paid-in capital $39,969,089
Accumulated net investment loss (351,927)
Accumulated undistributed net realized gain on
investments and foreign currency transactions 3,016,757
Net unrealized gain on investments 10,538,862
Net unrealized loss on forward foreign currency
contracts and other assets and liabilities
denominated in foreign currencies (2,379)
-----------
Total net assets $53,170,402
-----------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $31,198,673/1,308,898 shares) $ 23.84
-----------
Class B (based on $19,205,101/833,031 shares) $ 23.05
-----------
Class C (based on $2,766,628/120,147 shares) $ 23.03
-----------
MAXIMUM OFFERING PRICE:
Class A $ 25.29
-----------
</TABLE>
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
STATEMENT OF OPERATIONS (unaudited)
For the Six Months Ended 9/30/00
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $14,902) $ 258,386
Interest 67,186
------------
Total investment income $ 325,572
------------
EXPENSES:
Management fees $ 305,724
Transfer agent fees
Class A 61,872
Class B 40,805
Class C 8,600
Distribution fees
Class A 44,589
Class B 111,597
Class C 15,777
Administrative fees 15,412
Custodian fees 40,616
Registration fees 23,230
Professional fees 33,318
Printing 18,790
Fees and expenses of nonaffiliated trustees 14,385
Miscellaneous 8,911
------------
Total expenses $ 743,626
Less management fees waived by Pioneer
Investment Management, Inc. (99,632)
Less fees paid indirectly (6,483)
------------
Net expenses $ 637,511
------------
Net investment loss $ (311,939)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ 1,500,040
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (7,948) $ 1,492,092
------------ ------------
Change in net unrealized gain (loss) from:
Investments $(10,283,992)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (4,718) $(10,288,710)
------------ ------------
Net loss on investments and foreign currency
transactions $ (8,796,618)
------------
Net decrease in net assets resulting from operations $ (9,108,557)
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer World Equity Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended 9/30/00 and the Year Ended 3/31/00
<TABLE>
<CAPTION>
Six Months Ended
9/30/99 Year Ended
(unaudited) 3/31/00
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (311,939) $ (255,693)
Net realized gain on investments and foreign currency
transactions 1,492,092 4,576,901
Change in net unrealized gain (loss) on investments
and foreign currency transactions (10,288,710) 14,822,184
------------- -------------
Net increase (decrease) in net assets resulting from
operations $ (9,108,557) $ 19,143,392
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.00 and $0.08 per share, respectively) $ -- $ (100,825)
------------- -------------
Total distributions to shareholders $ -- $ (100,825)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 14,571,569 $ 45,129,534
Reinvestment of distributions -- 96,590
Cost of shares repurchased (21,559,085) (33,183,927)
------------- -------------
Net increase (decrease) in net assets resulting from
fund share transactions $ (6,987,516) $ 12,042,197
------------- -------------
Net increase (decrease) in net assets $ (16,096,073) $ 31,084,764
NET ASSETS:
Beginning of year 69,266,475 38,181,711
------------- -------------
End of year (including accumulated net investment loss
of $351,927 and $39,988, respectively) $ 53,170,402 $ 69,266,475
------------- -------------
</TABLE>
20 The accompanying notes are an integral part of these financialstatements.
<PAGE>
Pioneer World Equity Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended 9/30/00 and the Year Ended 3/31/00
<TABLE>
<CAPTION>
9/00 Shares 9/00 Amount
(unaudited) (unaudited) 3/00 Shares 3/00 Amount
<S> <C> <C> <C> <C>
CLASS A
Shares sold 440,823 $11,143,356 1,276,247 $28,055,957
Reinvestment of distributions -- -- 3,890 96,590
Less shares repurchased (632,846) (15,799,590) (1,089,726) (23,098,348)
-------- ----------- ---------- -----------
Net increase (decrease) (192,023) $(4,656,234) 190,411 $ 5,054,199
-------- ----------- ---------- -----------
CLASS B
Shares sold 123,688 $ 3,064,264 586,899 $13,491,272
Reinvestment of distributions -- -- -- --
Less shares repurchased (207,959) (5,137,953) (332,802) (7,228,176)
-------- ----------- ---------- -----------
Net increase (decrease) (84,271) $(2,073,689) 254,097 $ 6,263,096
-------- ----------- ---------- -----------
CLASS C
Shares sold 14,853 $ 363,949 167,297 $ 3,582,305
Reinvestment of distributions -- -- -- --
Less shares repurchased (25,520) (621,542) (139,357) (2,857,403)
-------- ----------- ---------- -----------
Net increase (decrease) (10,667) $ (257,593) 27,940 $ 724,902
-------- ----------- ---------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended
9/30/00 Year Ended
(unaudited) 3/31/00
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 27.50 $ 18.55
-------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.08) $ (0.06)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (3.58) 9.09
---------- -------
Net increase (decrease) from investment operations $ (3.66) $ 9.03
Distributions to shareholders:
Net investment income -- (0.08)
Net realized gain -- --
---------- -------
Net increase (decrease) in net asset value $ (3.66) $ 8.95
---------- -------
Net asset value, end of period $ 23.84 $ 27.50
---------- -------
Total return* (13.31)% 48.70%
Ratio of net expenses to average net assets+ 1.78** 1.76%
Ratio of net investment income (loss) to average net assets+ (0.72)%** (0.23)%
Portfolio turnover rate 33%** 59%
Net assets, end of period (in thousands) $ 31,199 $41,276
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.11%** 2.10%
Net investment loss (1.05)%** (0.57)%
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 1.75%** 1.75%
Net investment income (loss) (0.69)%** (0.22)%
<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 investment income -- -- --
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 all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios 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 9/30/99
<TABLE>
<CAPTION>
Six Months Ended
9/30/00 Year Ended
(unaudited) 3/31/00
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 26.71 $ 18.11
-------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.38) $ (0.15)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (3.28) 8.75
-------- -------
Net increase (decrease) from investment operations $ (3.66) $ 8.60
Distributions to shareholders:
Net realized gain -- --
-------- -------
Net increase (decrease) in net asset value $ (3.66) $ 8.60
-------- -------
Net asset value, end of period $ 23.05 $ 26.71
-------- -------
Total return* (13.70)% 47.49%
Ratio of net expenses to average net assets+ 2.55%** 2.57%
Ratio of net investment loss to average net assets+ (1.48)%** (1.08)%
Portfolio turnover rate 33%** 59%
Net assets, end of period (in thousands) $ 19,205 $24,499
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.88%** 2.91%
Net investment loss (1.81)%** (1.42)%
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.54%** 2.56%
Net investment loss (1.47)%** (1.07)%
<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 all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios 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 9/30/00
<TABLE>
<CAPTION>
Six Months Ended
9/30/00 Year Ended
(unaudited) 3/31/00
<S> <C> <C>
CLASS C
Net asset value, beginning of period $ 26.69 $ 18.13
-------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.23) $ (0.22)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (3.43) 8.78
-------- -------
Net increase (decrease) from investment operations $ (3.66) $ 8.56
Distributions to shareholders:
Net realized gain -- --
-------- -------
Net increase (decrease) in net asset value $ (3.66) $ 8.56
-------- -------
Net asset value, end of period $ 23.03 $ 26.69
-------- -------
Total return* (13.71)% 47.21%
Ratio of net expenses to average net assets+ 2.73%** 2.79%
Ratio of net investment loss to average net assets+ (1.66)%** (1.29)%
Portfolio turnover rate 33%** 59%
Net assets, end of period (in thousands) $ 2,767 $ 3,491
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 3.06%** 3.13%
Net investment loss (1.99)%** (1.63)%
Ratios assuming waiver of management fees and assumption
of expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.71%** 2.77%
Net investment loss (1.64)%** (1.27)%
<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 all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios 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 9/30/00 (unaudited)
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. After shareholder and regulatory approval, UniCredito
Italiano S.p.A. completed its acquisition of the Pioneer Group, Inc. (PGI) on
October 24, 2000. 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
accounting principles generally accepted in the United States 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 as of trade date. The net value asset
value is computed once daily, on each day the New York Exchange is open, as
of the close of 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
25
<PAGE>
Pioneer World Equity Fund
NOTES TO FINANCIAL STATEMENTS 9/30/00 (unaudited) (continued)
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 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.
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
26
<PAGE>
Pioneer World Equity Fund
exchange rates, and any resulting unrealized gains or losses are recorded in
the Fund's financial statements. The Fund records realized gains and losses
at the time a portfolio hedge is offset by entry into a closing transaction
or extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar.
As of September 30, 2000 the Fund had no outstanding portfolio hedges.
D. 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 six months ended September 30, 2000, the Fund paid no such taxes.
In determining the daily net asset value, the Fund estimates the reserve for
such taxes, if any, associated with investments in certain countries. The
estimated reserve for capital gains taxes, if any, is based on the net
unrealized appreciation 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 September 30, 2000, the Fund had
no reserve for capital gains taxes. The estimated reserve for repatriation
of foreign currencies is based on the principal balances and/or unrealized
appreciation of applicable securities, the holding period of such
investments and the related tax rates and other such factors. As of
September 30, 2000, the Fund had no reserve 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.
27
<PAGE>
Pioneer World Equity Fund
NOTES TO FINANCIAL STATEMENTS 9/30/00 (unaudited) (continued)
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Fund Distributors, Inc. (PFD), the principal underwriter for the
Fund and an indirect subsidiary of The Pioneer Group, Inc. (PGI), earned $51
in underwriting commissions on the sale of Fund shares during the six months
ended September 30, 2000.
F. Class Allocations
Distribution fees are calculated based on the average daily net asset values
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), 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 September 30, 2000, $24,882 was payable to
PIM related to management fees, administrative 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 $17,331 in transfer agent fees payable to PSC at September 30,
2000.
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 average daily net assets attributable to Class A
shares 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 $28,637
in distribution fees payable to PFD at September 30, 2000.
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 4.00%, based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase
29
<PAGE>
Pioneer World Equity Fund
NOTES TO FINANCIAL STATEMENTS 9/30/00 (unaudited) (continued)
are subject to a CDSC of 1.00%. Proceeds from the CDSC are paid to PFD. For the
six months ended September 30, 2000, CDSCs in the amount of $42,203 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, 2000, the Fund's expenses were reduced by $6,483 under such
arrangements.
6. 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.
The average daily amount of borrowings outstanding during the six months ended
September 30, 2000 was $34,754. The average daily shares outstanding during the
period were 2,433,448 resulting in an average borrowing of $.01 per share. The
related weighted average annualized interest rate for the period was 7.10%, and
the total interest expense on such borrowings was $1,764.
30
<PAGE>
Pioneer World Equity Fund
RESULTS OF SHAREOWNER MEETING
On September 11, 2000, Pioneer World Equity Fund held a special meeting of
shareowners to approve a new management contract between the Fund and Pioneer
Investment Management, Inc. ("Pioneer"), the Fund's investment adviser. The new
contract will take effect only if the proposed acquisition of The Pioneer
Group, Inc., the parent of Pioneer, by UniCredito Italiano S.p.A. is
consummated. Shareowners also voted to elect trustees. Both proposals passed by
shareowner vote. Here are the detailed results of the votes.
Proposal 1 -- To approve a new management contract.
<TABLE>
<CAPTION>
Affirmative Against Abstain
<S> <C> <C>
1,743,043.178 42,867.639 37,570.051
</TABLE>
Proposal 2 -- To elect trustees.
<TABLE>
<CAPTION>
Nominee Affirmative Withheld
<S> <C> <C>
M.K. Bush 1,778,751.672 44,729.196
J.F. Cogan, Jr. 1,782,230.135 41,250.733
Dr. R. H. Egdahl 1,773,415.076 50,065.792
M.B.W. Graham 1,782,068.699 41,412.169
M.A. Piret 1,776,913.505 46,567.363
D.D. Tripple 1,783,453.098 40,027.770
S.K. West 1,784,284.963 39,195.905
J. Winthrop 1,783,977.903 39,502.965
</TABLE>
31
<PAGE>
Pioneer World Equity Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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 President
Margaret B.W. Graham Patrick M. Smith, Vice President
Marguerite A. Piret Eric W. Reckard, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
32
<PAGE>
THE PIONEER FAMILY OF MUTUAL FUNDS
For information about any Pioneer mutual fund, please contact your investment
professional, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds Income Funds
United States Taxable
Pioneer Growth Shares Pioneer America Income Trust
Pioneer Micro-Cap Fund Pioneer Bond Fund
Pioneer Mid-Cap Fund Pioneer High Yield Fund
Pioneer Mid-Cap Fund Pioneer Limited Maturity Bond Fund
Pioneer Mid-Cap Value Fund Pioneer Strategic Income Fund
Pioneer Science & Technology Fund
Pioneer Small Company Fund Tax-Free
Pioneer Tax-Managed Fund Pioneer Tax-Free Income Fund
Money Market Fund
International/Global Pioneer Cash Reserves Fund*
Pioneer Emerging Markets Fund
Pioneer Europe 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.
33
<PAGE>
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
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.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 13 - digit account number and four-digit personal identification number at
hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as
you meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
34
<PAGE>
Automatic Exchange Program
A simple way to move money from 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
<PAGE>
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 Plans
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 70-1/2 with earned
income to contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
The Roth IRA came about as part of the Taxpayer Relief Act of 1997 and became
available to investors in 1998. Contributions, up to $2,000 a year, are not
tax-deductible, but earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $10,500 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 a plan; it
resembles a traditional 401(k), but has no administration costs. Employees can
make pre-tax contributions of up to $6,000 per year, and an employer
contribution is required.
36
<PAGE>
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 certain 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
<PAGE>
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
Investments]
Pioneer Investment Management, Inc. 9090-00-1100
60 State Street (C) Pioneer Funds Distributor, Inc.
Boston, Massachusetts 02109 [recycle logo] Printed on Recycled Paper
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