[Pioneer logo]
Pioneer
World Equity
Fund
---------------------
ANNUAL REPORT 3/31/00
---------------------
<PAGE>
T a b l e of C o n t e n t s
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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 20
Notes to Financial Statements 27
Report of Independent Public Accountants 33
Trustees, Officers and Service Providers 34
The Pioneer Family of Mutual Funds 35
Programs and Services for Pioneer Shareowners 36
</TABLE>
<PAGE>
Pioneer World Equity Fund
----------------------------------
LETTER FROM THE CHAIRMAN 3/31/00
----------------------------------
D e a r S h a r e o w n e r ,
--------------------------------------------------------------------------------
Only three months into the new millennium and already financial markets have
seen their share of activity. In March, for the fifth time in just nine months,
the Federal Reserve raised short-term interest rates in an effort to brake
unusually strong economic growth and deflect inflationary pressures.
In the United States stocks have continued to roar ahead, albeit in an uneven
manner. Increasingly, the financial media has distinguished between what's
become known as old economy and new economy stocks. In fact, so far in 2000,
we've seen a sharp divergence between the so-called old economy traditional
non-technology stocks and the new economy technology- and e-commerce-oriented
issues. Reflecting this divergence, the NASDAQ Composite Index, boosted by
strong technology stock performance, was up over 12%, while the Dow Jones
Industrial Index, composed of a select group of 30 blue-chip stocks, returned
-5%. Meanwhile, long-term interest rates not only failed to rise in concert with
short-term rates but - in atypical fashion - have fallen below those rates,
enabling longer-term bond prices to remain fairly steady.
The recent market activity underscores the need for you to take a diversified
approach to your investment portfolio, making sure you have the optimal blend of
stocks, bonds and shorter-term investments like money market funds. Experience
tells us that over the long term, maintaining a diversified portfolio can help
to smooth out the periodic jolts that are characteristic of financial markets.
Sharp market swings are often a good reminder to take another look at your risk
threshold and your investment time horizon. As always, an investment
professional who is familiar with your individual circumstances can assist you
in that exercise.
I encourage you to read this report closely. It offers you an opportunity to
review your Fund in depth. I would draw your attention to the Portfolio Manager
Discussion with Patrick Smith, the manager of your Fund. It's a chance to hear
how the Fund performed and what the manager sees as he looks ahead. If you have
questions, please contact your investment professional or call Pioneer at
1-800-225-6292. You may also want to visit our web site at www.pioneerfunds.com.
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 3/31/00
--------------------------------------------------------------------------------
P o r t f o l i o D i v e r s i f i c a t i o n
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Pie chart]
International Common Stocks 62%
U.S. Common Stocks 30%
Short-Term Cash Equivalents 6%
Depositary Reciepts for International Stocks 1%
International Preferred Stocks 1%
[End pie chart]
G e o g r a p h i c a l D i s t r i b u t i o n
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[Bar chart]
<TABLE>
<S> <C> <C> <C>
United States 32.4% Israel 1.6%
Japan 13.9% Mexico 1.3%
United Kingdom 10.6% Australia 1.0%
France 6.8% Brazil 0.9%
Germany 5.1% Norway 0.8%
Canada 3.9% Hong Kong 0.5%
Switzerland 3.7% India 0.4%
Netherlands 3.7% Portugal 0.4%
Italy 3.5% Singapore 0.3%
Finland 2.9% South Africa 0.2%
Spain 2.3% Malaysia 0.2%
Sweden 1.8% Thailand 0.1%
South Korea 1.7%
</TABLE>
[End bar chart]
1 0 L a r g e s t H o l d i n g s
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
1. Vodafone AirTouch Plc 2.38% 6. Intel Corp. 1.59%
2. NTT Mobile 1.95 7. Daiwa Securities Co., Ltd. 1.55
Communication
Network, Inc.
3. Oracle Corp. 1.79 8. Sun Microsystems, Inc. 1.43
4. Nokia Oyj 1.77 9. Cisco Systems, Inc. 1.36
5. BCE, Inc. 1.71 10. Check Point Software 1.31
Technologies Ltd.
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer World Equity Fund
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PERFORMANCE UPDATE 3/31/00 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 3/31/00 3/31/99
$27.50 $18.55
Distributions per Share Income Short-Term Long-Term
(3/31/99 -3/31/00) Dividends Capital Gains Capital Gains
$0.076 - -
</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.
Average Annual Total Returns
(As of March 31, 2000)
<TABLE>
<CAPTION>
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 19.93% 17.86%
(10/31/96)
1 Year 48.70 40.16
</TABLE>
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvest-ment of distributions at net asset value.
Growth of $10,000
[Mountain chart]
<TABLE>
<CAPTION>
Pioneer World
Equity Fund* MSCI World Index
<S> <C> <C>
10/96 9425 10000
10174 10387
3/97 10488 10417
11784 11984
11841 12327
10765 12023
3/98 12728 13745
12347 14024
9818 12343
11561 14948
3/99 11797 15483
12674 16222
12604 15982
16323 18677
3/00 17542 18869
</TABLE>
[End mountain chart]
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 23 markets. It includes the United States, Canada and all countries in
the MSCI EAFE (Europe, Australasia, Far East) Index. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
3
<PAGE>
Pioneer World Equity Fund
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PERFORMANCE UPDATE 3/31/00 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
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 3/31/00 3/31/99
$ 26.71 $ 18.11
Distributions per Share Income Short-Term Long-Term
(3/31/99 -3/31/00) 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>
Average Annual Total Returns
(As of March 31, 2000)
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 18.75% 18.17%
(10/31/96)
1 Year 47.49 43.49
</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.
Growth of $10,000
[Mountain chart]
<TABLE>
<CAPTION>
Pioneer World
Equity Fund* MSCI World Index
<S> <C> <C>
10/96 10000 10000
10747 10387
3/97 11060 10417
12393 11984
12427 12327
11273 12023
3/98 13300 13745
12869 14024
10202 12343
11996 14948
3/99 12205 15483
13088 16222
12993 15982
16788 18677
3/00 17701 18869
</TABLE>
[End mountain chart]
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 23 markets. It includes the United States, Canada and all countries in
the MSCI EAFE (Europe, Australasia, Far East) Index. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
4
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 3/31/00 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 3/31/00 3/31/99
$ 26.69 $ 18.13
Distributions per Share Income Short-Term Long-Term
(3/31/99 -3/31/00) 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>
Average Annual Total Returns
(As of March 31, 2000)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 18.73% 18.73%
(10/31/96)
1 Year 47.21 47.21
</TABLE>
* Assumes reinvestment of distributions. The 1% contingent deferred sales charge
(CDSC) applies to shares sold within one year of purchase.
Growth of $10,000
[Mountain chart]
<TABLE>
<CAPTION>
Pioneer World
Equity Fund* MSCI World Index
<S> <C> <C>
10/96 10000 10000
10773 10387
3/97 11080 10417
12413 11984
12447 12327
11286 12023
3/98 13313 13745
12876 14024
10202 12343
11996 14948
3/99 12218 15483
13101 16222
13000 15982
16787 18677
3/00 17987 18869
</TABLE>
[End mountain chart]
The MSCI World Index is an unmanaged, capitalization-weighted measure of stocks
traded in 23 markets. It includes the United States, Canada and all countries in
the MSCI EAFE (Europe, Australasia, Far East) Index. Index returns are
calculated monthly, assume reinvestment of dividends and, unlike Fund returns,
do not reflect any fees, expenses or sales charges. You cannot invest directly
in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
5
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 3/31/00
--------------------------------------------------------------------------------
The world's stock markets flourished during the year ended March 31, 2000,
amidst rising global growth and economic prosperity. Investors may have cast a
suspicious eye toward technology stocks in the waning days of the reporting
period, but their faith in these stocks contributed to explosive gains for your
Fund over the course of its fiscal year. In the following interview, portfolio
manager Patrick M. Smith provides a detailed account of these and other factors
that influenced your Fund's performance over the past 12 months.
Q: Were the Fund's gains in technology-related holdings significant?
A: Absolutely. Technology, media and telecommunication stocks appreciated
substantially and contributed greatly to performance. Equally important,
the Fund holds considerable investments in these sectors, which enabled it
to actively participate in the rally. Not surprisingly, the tremendous draw
of these companies made for less dramatic performance in other sectors.
However, the recovery of the Fund's financial and pharmaceutical stocks
toward the end of the year was also quite remarkable. All told, Class A, B
and C shares posted total returns of 48.70%, 47.49% and 47.21% at net asset
value, respectively, for the 12 months ended March 31, 2000. This
performance surpassed the 21.87% return for the MSCI World Index. The 260
global funds tracked by Lipper, Inc. had an average return of 37.71% for
the same period. (Lipper is an independent firm that tracks mutual fund
performance.)
Q: Are you reassessing the Fund's technology-related holdings in light of
their recent volatility?
A: In the current environment, we're proceeding cautiously but generally view
the pullback in stock prices as an opportunity to add to existing
positions. Technology stocks, by their very nature, can experience wide
price swings. We're convinced of the fundamental strengths of each company
and believe their longer-term growth prospects remain exceptionally strong.
Many of these premier companies comprise the Fund's largest holdings.
Oracle (United States) provides software for accessing complex corporate
information over the World Wide Web. Vodafone AirTouch (United Kingdom)
and NTT Mobile Communication Network (Japan)
6
<PAGE>
Pioneer World Equity Fund
rank among the world's largest cellular telecommunication providers. Nokia
(Finland) is the leading provider of equipment for the burgeoning mobile
phone industry. Like the aforementioned cellular providers, Nokia is well
positioned to benefit from the next generation in Internet technology - the
transmission of data across the wireless platform. Check Point Software
Technologies (Israel) is the world's leading maker of firewall security
software designed to protect online networks from incoming transmissions.
Q: What other sectors look attractive?
A: Advertising companies are well positioned to benefit from the Internet
revolution. Smaller, newer companies are turning to advertising agencies to
roll out their products and services. The communications explosion is also
favorably impacting information-dependent media companies. With the
exception of Grupo Televisa (Mexico), which is the world's largest
Spanish-language media company, most of the Fund's holdings within this
sector reside in Europe. Pearson (United Kingdom), one of the largest
educational publishing companies, owns the Financial Times. Toward the end
of the reporting period, we trimmed positions in United Pan-Europe
Communications (Netherlands) and PT Multimedia Services (Portugal) to
capture strong price appreciation.
We increased the Fund's weighting in financial stocks during the last three
months of the fiscal year. With the trend toward higher interest rates,
stock valuations across Europe and the United States became quite
compelling. We added to positions in Lloyds TSB Group (United Kingdom),
Royal Bank of Scotland Group (United Kingdom) and Manulife Financial
(Canada).
Beleaguered for months, pharmaceutical stocks also represented an
attractive buying opportunity. The sequencing of the entire human genetic
makeup is boosting prospects for the industry. In the next decade, the
human genome project will create myriad opportunities for drug companies.
Fund holding SmithKline Beecham (United Kingdom) is investing heavily in
the research and development of gene-derived drugs and could profit
accordingly. We also believe the future
7
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 3/31/00 (continued)
--------------------------------------------------------------------------------
looks bright for Merck & Co. (United States) and Roche Holdings
(Switzerland). By year-end, the Fund's weighting in health care stocks
approximated that of its benchmark, the MSCI World Index.
Q: With globalization, stocks of companies within a sector increasingly move
in tandem, regardless of their domicile. Is it still possible for an
investor to achieve effective diversification?
A: Yes. It's true that certain groups of stocks tend to be highly correlated
across national borders. For instance, semiconductors - as with many
industries under the technology umbrella - represent a global sector that
often moves in sync. Positive earnings announcements by U.S. companies are
likely to reflect favorably on their European and Asian counterparts. But
that's where the correlation ends. Within each sector, there are vast
differences among companies, which is reflected in their stock prices.
We firmly believe that strong performance gains over time are the result of
buying high-quality stocks when their prices and investor expectations are
low and having the patience to allow them to achieve their full potential.
Today, many of the large telephone companies in Europe are more expensive
than U.S. regional telephone companies. European semiconductor companies
represent better value than those in the United States. Ultimately, buying
less expensive companies lays the groundwork for strong price appreciation
over time. Herein lies the diversification investors are looking for.
Q: What is your outlook for global equities?
A: I'm quite optimistic. Asian and Latin American markets are well on the road
to recovery, generating strong returns that stand in marked contrast to
the economic crisis of 1997 and 1998. In Europe, an American-style recovery
is taking hold after a decade of corporate restructuring and policy reform.
Inflation and interest rates have fallen, productivity is climbing and a
technologically driven economy is emerging. And the U.S. economy, despite
repeated interest rate increases, continues to prosper. In summary,
prospects for global growth in 2000 appear bright indeed.
8
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 94.5%
PREFERRED STOCKS - 1.5%
890,000 Petrobras Brasileiro SA $ 241,216
800 SAP AG 569,725
9,900 Tele Norte Leste Participacoes (A.D.R.) 263,588
-----------
TOTAL PREFERRED STOCKS
(Cost $674,576) $ 1,074,529
-----------
COMMON STOCKS - 93.0%
Basic Materials - 1.0%
Chemicals - 0.2%
3,200 E.I. du Pont de Nemours & Co. $ 169,200
-----------
Chemicals (Diversified) - 0.8%
7,001 Aventis SA* $ 381,976
45,000 WMC Ltd. 175,833
-----------
$ 557,809
-----------
Total Basic Materials $ 727,009
-----------
Capital Goods - 3.9%
Electrical Equipment - 2.0%
6,000 American Power Conversion Corp.* $ 257,250
2,800 General Electric Co. 434,525
5,000 Sanmina Corp.* 337,813
9,000 Solectron Corp.* 360,563
-----------
$ 1,390,151
-----------
Machinery (Diversified) - 1.0%
69,000 Invensys Plc $ 307,593
44,000 Komatsu Ltd. 209,146
2,600 Sidel, SA 169,233
-----------
$ 685,972
-----------
Manufacturing (Specialized) - 0.5%
60,000 Pierelli SpA $ 155,928
10,050 Tomra Systems ASA 201,202
-----------
$ 357,130
-----------
Office Equipment & Supplies - 0.4%
6,000 Canon Inc. $ 260,069
-----------
Total Capital Goods $ 2,693,322
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/00 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Communication Services - 16.6%
Cellular/Wireless Telecommunications - 5.7%
10,000 Libertel NV* $ 213,455
31 NTT Mobile Communication Network, Inc. 1,271,222
52,000 Smartone Telecommunications Holdings Ltd. 189,994
5,700 Sonera Group Plc 389,561
75,000 Sunday Communications Ltd.* 23,358
57,000 Telecom Italia Mobile SpA 272,802
279,480 Vodafone AirTouch Plc 1,557,359
-----------
$ 3,917,751
-----------
Telecommunications (Long Distance) - 2.1%
6,000 AT&T Corp. $ 337,500
14,000 Cable & Wireless Plc 262,792
5,150 Colt Telecom Group Plc* 247,209
1,700 KPNQwest NV* 90,475
8,500 Sprint Corp. 535,500
-----------
$ 1,473,476
-----------
Telephone - 8.8%
9,000 BCE, Inc. $ 1,120,743
7,100 Bell Atlantic Corp. 433,988
7,500 BellSouth Corp. 352,500
35,238 British Telecom Plc 658,082
100,000 Carso Global Telecom* 307,469
23,700 Global Telesystems Group, Inc.* 485,850
5,500 GTE Corp. 390,500
4,000 Hanaro Telecom Stk* 62,972
4,400 KPN NV 503,927
3,000 Korea Telecom Corp. 131,250
22 Nippon Telegraph & Telephone Corp. 349,291
7,200 SBC Communications, Inc. 302,400
120,000 Singapore Telecommunications, Ltd. 171,048
350 Swisscom AG 134,279
26,488 Telefonica SA* 669,354
-----------
$ 6,073,653
-----------
Total Communication Services $11,464,880
-----------
</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>
Consumer Cyclicals - 7.6%
Automobiles - 0.3%
5,000 Ford Motor Co. $ 229,688
----------
Distributors (Durables) - 0.5%
60,000 Itochu Corp.* $ 319,681
----------
Household Furnishings & Appliances - 2.7%
1,900 Ryohin Keikaku Co., Ltd. $ 344,226
25,000 Sharp Corp. 534,505
3,500 Sony Corp. 494,326
3,500 Sony Corp. (New Shares)* 497,735
----------
$1,870,792
----------
Publishing - 0.3%
3,800 McGraw-Hill Co., Inc. $ 172,900
----------
Publishing (Newspapers) - 0.2%
12,000 Nasper Ltd. (New Shares) $ 146,706
----------
Retail (Building Supplies) - 0.4%
4,200 Home Depot, Inc. $ 270,900
----------
Retail (Discounters) - 0.3%
6,375 Dollar General Corp. $ 171,328
----------
Retail (General Merchandise) - 0.7%
3,500 Target Corp. $ 261,625
3,500 Wal-Mart Stores, Inc. 194,250
----------
$ 455,875
----------
Retail (Specialty) - 0.2%
73,000 Walmart de Mexico SA de CV $ 168,241
----------
Services (Advertising/Marketing) - 0.7%
470 Publigroupe SA $ 517,779
----------
Services (Commercial & Consumer) - 1.3%
80 Kuoni Reisen Holding AG (Series B) (Registered Shares) $ 370,426
7,700 TNT Post Group NV 172,984
3,290 Vivendi 379,477
----------
$ 922,887
----------
Total Consumer Cyclicals $5,246,777
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/00 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Consumer Staples - 6.9%
Broadcasting (Television/Radio/Cable) - 2.7%
1,500 Canal Plus $ 330,234
5,000 CBS Corp. 283,125
2,900 Grupo Televisa SA (A.D.R.)* 197,200
1,900 NDS Group Plc (A.D.R.)* 133,950
2,600 PT Multimedia Services Inc.* 231,451
8,000 Rogers Communications, Inc. (Class B)* 236,670
3,500 Sogecable SA* 161,312
5,700 United Pan-Europe Communications NV* 266,418
----------
$1,840,360
----------
Entertainment - 0.9%
3,000 Oriental Land Co., Ltd. $ 327,862
9,000 Pearson Plc 312,657
----------
$ 640,519
----------
Foods - 0.9%
5,000 ConAgra, Inc. $ 90,625
3,400 General Mills, Inc. 123,038
800 Groupe Danone 176,891
3,000 H.J. Heinz Co. 104,625
1,700 Wrigley (Wm.) Jr. Co. 130,581
----------
$ 625,760
----------
Household Products (Non-Durables) - 0.2%
2,000 Colgate-Palmolive Co. $ 112,750
----------
Restaurants - 0.9%
24,000 Compass Group Plc $ 311,797
8,000 McDonald's Corp. 300,500
----------
$ 612,297
----------
Retail Stores (Drug Stores) - 0.4%
9,400 Walgreen Co. $ 242,050
----------
Retail Stores (Food Chains) - 0.2%
1,300 Carrefour SA $ 166,620
----------
Services (Employment) - 0.7%
350 Adecco SA $ 242,040
5,000 Robert Half International, Inc.* 237,188
----------
$ 479,228
----------
Total Consumer Staples $4,719,584
----------
</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>
Energy - 2.9%
Oil (International Integrated) - 1.5%
1,900 Chevron Corp. $ 175,631
2,112 Exxon Mobil Corp. 164,340
56,000 Shell Transport & Trading Co. 465,180
4,600 Texaco, Inc. 246,675
----------
$1,051,826
----------
Oil & Gas (Exploration/Production) - 0.4%
11,000 Canadian Natural Resources Ltd.* $ 290,609
----------
Oil & Gas (Refining & Marketing) - 1.0%
33,000 ENI SpA $ 165,203
3,333 Total Fina Elf SA 499,289
----------
$ 664,492
----------
Total Energy $2,006,927
----------
Financial - 13.0%
Banks (Major Regional) - 4.0%
40,000 Banca Fideuram SpA $ 585,040
6,000 Banca Popolare di Brescia 631,178
23,720 Banco Santander Central Hispano SA 254,975
50,000 Bangkok Bank Ltd. 85,933
1,500 Comerica, Inc. 62,813
1,500 Depfa-Bank Europe Plc 143,580
140 Julius Baer Holding Ltd. 527,015
3,800 Mellon Bank Corp. 112,100
2,500 State Street Corp. 242,188
3,250 Uniao de Bancos Brasileiros SA (G.D.R.) 103,188
----------
$2,748,010
----------
Banks (Money Center) - 0.8%
23,500 Lloyds TSB Group Plc $ 248,431
21,000 Royal Bank of Scotland Group 310,101
----------
$ 558,532
----------
Banks (Regional) - 0.5%
12,000 Toronto-Dominion Bank $ 317,028
----------
Financial (Diversified) - 2.2%
7,400 Axa Financial, Inc. $ 265,475
11,200 Fortis NV 286,777
40,000 Grupo Financiero Inbursa* 193,851
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/00 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Financial (Diversified) - (continued)
6,300 ICICI Ltd. (A.D.R.)* $ 141,750
1,850 Lagardere SCA 150,254
800 Marschollek Lautenschlaeger Und Partner AG 474,771
----------
$1,512,878
----------
Insurance (Life/Health) - 1.2%
17,000 Manulife Financial Corp. $ 249,123
21,000 Mediolanum SpA 371,269
12,000 Prudential Corp. Plc 182,073
----------
$ 802,465
----------
Insurance (Multi-Line) - 0.9%
2,175 American International Group, Inc. $ 238,163
1,600 Axa SA 226,818
350 Zurich Allied AG (New Shares) 176,373
----------
$ 641,354
----------
Insurance (Property/Casualty) - 0.6%
8,850 Skandia Forsakrings AB $ 419,524
----------
Insurance Brokers - 0.3%
2,100 Marsh & McLennan Co., Inc. $ 231,656
----------
Investment Banking/Brokerage - 1.7%
1,000 Consors Discount Broker AG* $ 140,230
54,000 Daiwa Securities Co., Ltd. 1,015,146
----------
$1,155,376
----------
Investment Management - 0.8%
33,000 Amvescap Plc $ 448,160
24,000 Ashi Bank Ltd. 134,418
----------
$ 582,578
----------
Total Financial $8,969,401
----------
Healthcare - 5.4%
Biotechnology - 1.1%
4,200 Amgen Inc.* $ 257,775
2,500 Celltech Chiroscience Plc* 44,778
3,000 Qiagen NV* 427,868
----------
$ 730,421
----------
Healthcare (Diversified) - 1.1%
6,000 Bristol-Myers Squibb Co. $ 346,500
2,000 Johnson & Johnson 140,125
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare (Diversified) - (continued)
2,800 Warner-Lambert Co., Inc. $ 273,000
----------
$ 759,625
----------
Healthcare (Drugs/Major Pharmaceuticals) - 3.0%
14,000 Glaxo Wellcome Plc $ 398,980
7,000 Merck & Co., Inc. 434,875
150 Novartis AG 205,117
25 Roche Holdings AG 271,505
10,000 Schering-Plough Corp. 367,500
31,000 Smithkline Beecham Plc 406,686
----------
$2,084,663
----------
Healthcare (Medical Products/Supplies) - 0.2%
30,750 F.H. Faulding & Co., Ltd. $ 130,150
----------
Total Healthcare $3,704,859
----------
Technology - 33.5%
Communications Equipment - 6.2%
1,100 Alcatel $ 241,434
1,000 Comverse Technology, Inc.* 189,000
3,500 Completel Europe NV 69,718
6,600 Ericsson LM (B Shares) 580,598
1,400 Gilat Satellite Networks Ltd.* 164,150
10,330 Lucent Technologies, Inc. 627,548
3,000 Matsushita Communication Industrial Ltd. 552,282
3,000 Motorola Inc. 427,125
2,500 Next Level Communication Inc.* 271,875
5,500 Nokia Oyj 1,157,948
----------
$4,281,678
----------
Computers (Hardware) - 3.7%
3,500 Hewlett-Packard Co. $ 463,969
4,700 IBM Corp. 554,600
2,000 JUMPtec Industrielle Computertechnik AG* 197,375
10,000 Sun Microsystems, Inc.* 937,031
1,400 Samsung Electronics Co. 424,338
----------
$2,577,313
----------
Computers (Networking) - 2.5%
11,500 Cisco Systems, Inc.* $ 889,094
400 E.Biscom SpA* 105,292
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/00 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Networking) - (continued)
2,660 Equant NV* $ 220,751
1,100 Freenet.DE AG* 122,139
650 Intershop Comunication AG* 327,889
14,000 Lastminute.com Plc* 54,609
5,200 Stepstone ASA* 13,429
----------
$1,733,203
----------
Computers (Software & Services) - 8.0%
2,900 Autonomy Corp Plc* $ 493,000
2,100 Brokat Infosystems AG* 251,265
1,200 Cap Gemini SA 325,065
5,000 Check Point Software Technologies Ltd.* 855,313
8,033 Dassault Systemes SA 758,154
6,400 Framtidsfabriken AB* 156,514
775 GFT Technologies AG 186,199
2,300 Lernout & Hauspie Speech RPO* 254,150
3,000 NIIT Ltd.* 141,124
15,000 Oracle Corp.* 1,170,938
3,000 Ser System AG* 136,688
600 Softbank Corp. 534,749
3,300 Tietoenator Corp. (B Shares) 198,338
13,000 TJ Group Oyj* 128,169
----------
$5,589,666
----------
Electronics (Component Distributors) - 3.1%
4,000 Felxtronics International Ltd.* $ 281,750
5,000 Hoya Corp.* 472,410
4,000 NXT Plc* 116,223
4,600 Siemens AG 660,424
46,000 Toshiba Corp. 468,670
58,000 Varitronix International Ltd. 134,822
----------
$2,134,299
----------
Electronics (Semiconductors) - 5.5%
21,000 Fujitsu Ltd. $ 644,329
21,000 Hyundai Electronics Industries Co.* 467,406
1,800 Infineon Technologies AG* 98,295
7,900 Intel Corp. 1,042,306
1,000 Rohm Co., Ltd. 347,733
</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>
Electronics (Semiconductors) - (continued)
1,250 STMicroelectronics $ 229,728
4,300 Texas Instruments, Inc. 688,000
2,000 Tokyo Electron Ltd. 301,953
-----------
$ 3,819,750
-----------
Services (Computer Systems) - 2.0%
5,200 Getronics NV $ 397,697
1,500 Ingenico, Inc. 178,039
21,000 SunGard Data Systems, Inc.* 792,750
-----------
$ 1,368,486
-----------
Services (Data Processing) - 2.2%
8,800 Automatic Data Processing, Inc. $ 424,600
22,000 CGI Group, Inc.* 308,772
6,900 First Data Corp. 305,325
5,600 Infonet Services Corp.* 126,700
35,650 Merkantildata ASA 337,855
-----------
$ 1,503,252
-----------
Photography/Imaging - 0.3%
3,500 Eastman Kodak Co. $ 190,094
-----------
Total Technology $23,197,741
-----------
Transportation - 1.1%
Railroads - 0.6%
3,700 Kansas City Southern Industries, Inc. $ 317,969
75,000 Malaysia International Shipping Bhd. 115,461
-----------
$ 433,430
-----------
Shipping - 0.5%
13,500 Brambles Industries Ltd. $ 343,095
-----------
Total Transportation $ 776,525
-----------
Utilities - 1.1%
Electric Companies - 0.6%
21,500 Union Electrica Fenosa SA $ 441,642
-----------
Natural Gas - 0.3%
5,200 Williams Companies, Inc. $ 228,475
-----------
Power Producers (Independent) - 0.2%
13,700 Thus Plc* $ 104,697
-----------
Total Utilities $ 774,814
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 3/31/00 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
<S> <C> <C>
TOTAL COMMON STOCKS
(Cost $43,858,938) $64,281,839
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $44,533,514) (a) $65,356,368
-----------
Principal
Amount
TEMPORARY CASH INVESTMENT - 5.5%
Repurchase Agreement - 5.5%
$3,800,000 Credit Suisse First Boston Group, Inc., 6.05%, 4/3/00,
repurchase price of $3,800,000 plus accrued interest on
4/3/00, collateralized by $3,007,000 U.S. Treasury
Bonds, 13.75%, 8/15/2004 $ 3,800,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $3,800,000) $ 3,800,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $48,333,514) (b) $69,156,368
-----------
</TABLE>
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
* Non-income producing security.
(a) Distribution of investments by country of issue, as a percentage of equity
holdings, is as follows:
<TABLE>
<S> <C>
United States 32.4%
Japan 13.9
United Kingdom 10.6
France 6.8
Germany 5.1
Canada 3.9
Switzerland 3.7
Netherlands 3.7
Italy 3.5
Finland 2.9
Spain 2.3
Sweden 1.8
South Korea 1.7
Israel 1.6
Mexico 1.3
Australia 1.0
Others (Individually less than 1%) 3.8
-----
100.0%
-----
</TABLE>
(b) At March 31, 2000, the net unrealized gain on investments based on cost for
federal income tax purposes of $48,334,637 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $22,660,786
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (1,839,055)
-----------
Net unrealized gain $20,821,731
-----------
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
year ended March 31, 2000 aggregated $34,809,849 and $26,142,969, respectively.
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
BALANCE SHEET 3/31/00
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash investment
of $3,800,000) (cost $48,333,514) $69,156,368
Receivables -
Fund shares sold 200,782
Dividends, interest and foreign taxes withheld 104,635
Other 3,439
-----------
Total assets $69,465,224
-----------
LIABILITIES:
Payables -
Investment securities purchased $ 7,279
Fund shares repurchased 36,400
Due to bank 1,913
Forward foreign currency settlement contracts, open-net 43
Due to affiliates 92,998
Accrued expenses 60,116
-----------
Total liabilities $ 198,749
-----------
NET ASSETS:
Paid-in capital $46,956,605
Accumulated net investment loss (39,988)
Accumulated undistributed net realized gain on investments
and foreign currency transactions 1,524,665
Net unrealized gain on investments 20,822,854
Net unrealized gain on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies 2,339
-----------
Total net assets $69,266,475
-----------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $41,276,256/1,500,921 shares) $ 27.50
-----------
Class B (based on $24,498,798/917,302 shares) $ 26.71
-----------
Class C (based on $3,491,421/130,814 shares) $ 26.69
-----------
MAXIMUM OFFERING PRICE:
Class A $ 29.18
-----------
</TABLE>
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
For the Year Ended 3/31/00
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $45,440) $ 584,515
Interest 121,956
-----------
Total investment income $ 706,471
-----------
EXPENSES:
Management fees $ 465,368
Transfer agent fees
Class A 100,885
Class B 61,533
Class C 14,176
Distribution fees
Class A 72,752
Class B 151,768
Class C 22,592
Administrative fees 28,849
Custodian fees 60,195
Registration fees 30,222
Professional fees 52,326
Printing 30,860
Fees and expenses of nonaffiliated trustees 25,950
Miscellaneous 8,424
-----------
Total expenses $ 1,125,900
Less management fees waived by Pioneer
Investment Management, Inc. (157,524)
Less fees paid indirectly (6,212)
-----------
Net expenses $ 962,164
-----------
Net investment loss $ (255,693)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $ 5,412,373
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (835,472) $ 4,576,901
----------- -----------
Change in net unrealized gain or loss from:
Investments $14,259,794
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 562,390 $14,822,184
----------- -----------
Net gain on investments and foreign currency
transactions $19,399,085
-----------
Net increase in net assets resulting from operations $19,143,392
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
For the Years Ended 3/31/00 and 3/31/99
<TABLE>
<CAPTION>
Year Ended Year Ended
3/31/00 3/31/99
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (255,693) $ (87,755)
Net realized gain (loss) on investments and foreign
currency transactions 4,576,901 (2,357,249)
Change in net unrealized gain or loss on investments
and foreign currency transactions 14,822,184 (1,418,208)
----------- -----------
Net increase (decrease) in net assets resulting
from operations $19,143,392 $(3,863,212)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.08 and $0.00 per share, respectively) $ (100,825) $ -
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 $ (100,825) $ (28,878)
----------- -----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $45,129,534 $61,811,613
Reinvestment of distributions 96,590 26,557
Cost of shares repurchased (33,183,927) (64,228,228)
----------- -----------
Net increase (decrease) in net assets resulting
from fund share transactions $12,042,197 $(2,390,058)
----------- -----------
Net increase (decrease) in net assets $31,084,764 $(6,282,148)
NET ASSETS:
Beginning of year 38,181,711 44,463,859
----------- -----------
End of year (including accumulated net investment
income (loss) of $(39,988) and $187,983,
respectively) $69,266,475 $38,181,711
----------- -----------
</TABLE>
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
'00 Shares '00 Amount '99 Shares '99 Amount
<S> <C> <C> <C> <C>
CLASS A
Shares sold 1,276,247 $28,055,957 2,272,092 $42,059,107
Reinvestment of distributions 3,890 96,590 974 17,291
Less shares repurchased (1,089,726) (23,098,348) (2,564,172) (47,222,710)
---------- ----------- ---------- -----------
Net increase (decrease) 190,411 $ 5,054,199 (291,106) $(5,146,312)
---------- ----------- ---------- -----------
CLASS B
Shares sold 586,899 $13,491,272 356,595 $ 6,535,375
Reinvestment of distributions - - 472 8,193
Less shares repurchased (332,802) (7,228,176) (256,431) (4,494,547)
---------- ----------- ---------- -----------
Net increase 254,097 $ 6,263,096 100,636 $ 2,049,021
---------- ----------- ---------- -----------
CLASS C
Shares sold 167,297 $ 3,582,305 695,909 $13,217,131
Reinvestment of distributions - - 62 1,073
Less shares repurchased (139,357) (2,857,403) (657,018) (12,510,971)
---------- ----------- ---------- -----------
Net increase 27,940 $ 724,902 38,953 $ 707,233
---------- ----------- ---------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 23
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 3/31/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
3/31/00 3/31/99
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 18.55 $ 20.03
------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.05) $ 0.01
Net realized and unrealized gain (loss) on investments and foreign currency
transactions 9.08 (1.48)
------- -------
Net increase (decrease) from investment operations $ 9.03 $ (1.47)
Distributions to shareholders:
Net investment income (0.08) -
Net realized gain - (0.01)
------- -------
Net increase (decrease) in net asset value $ 8.95 $ (1.48)
------- -------
Net asset value, end of period $ 27.50 $ 18.55
------- -------
Total return* 48.70% (7.32)%
Ratio of net expenses to average net assets+ 1.76% 1.76%
Ratio of net investment income (loss) to average net assets+ (0.23)% 0.00%
Portfolio turnover rate 59% 72%
Net assets, end of period (in thousands) $41,276 $24,304
Ratios assuming no waiver of management fees and assumption of expenses by
PIM and no reduction for fees paid indirectly:
Net expenses 2.10% 2.15%
Net investment loss (0.57)% (0.39)%
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) (0.22)% 0.01%
<CAPTION>
Year Ended 10/31/96 to
3/31/98 3/31/97
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 16.67 $ 15.00
------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ 0.01
Net realized and unrealized gain (loss) on investments and foreign currency
transactions 3.54 1.69
------- -------
Net increase (decrease) from investment operations $ 3.53 $ 1.70
Distributions to shareholders:
Net investment income - -
Net realized gain (0.17) (0.03)
------- -------
Net increase (decrease) in net asset value $ 3.36 $ 1.67
------- -------
Net asset value, end of period $ 20.03 $ 16.67
------- -------
Total return* 21.36% 11.32%
Ratio of net expenses to average net assets+ 1.79% 1.80%**
Ratio of net investment income (loss) to average net assets+ (0.07)% 0.08%**
Portfolio turnover rate 39% 18%**
Net assets, end of period (in thousands) $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 2.59% 3.70%**
Net investment loss (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%**
Net investment income (loss) (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.
24 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 3/31/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
3/31/00 3/31/99
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 18.11 $ 19.75
------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.15) $ (0.11)
Net realized and unrealized gain (loss) on investments and foreign currency
transactions 8.75 (1.52)
------- -------
Net increase (decrease) from investment operations $ 8.60 $ (1.63)
Distributions to shareholders:
Net realized gain - (0.01)
------- -------
Net increase (decrease) in net asset value $ 8.60 $ (1.64)
------- -------
Net asset value, end of period $ 26.71 $ 18.11
------- -------
Total return* 47.49% (8.23)%
Ratio of net expenses to average net assets+ 2.57% 2.42%
Ratio of net investment loss to average net assets+ (1.08)% (0.69)%
Portfolio turnover rate 59% 72%
Net assets, end of period (in thousands) $24,499 $12,012
Ratios assuming no waiver of management fees and assumption of expenses by
PIM and no reduction for fees paid indirectly:
Net expenses 2.91% 2.97%
Net investment loss (1.42)% (1.24)%
Ratios assuming waiver of management fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 2.56% 2.41%
Net investment loss (1.07)% (0.68)%
<CAPTION>
Year Ended 10/31/96 to
3/31/98 3/31/97
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 16.59 $ 15.00
------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.14) $ (0.03)
Net realized and unrealized gain (loss) on investments and foreign currency
transactions 3.47 1.62
------- -------
Net increase (decrease) from investment operations $ 3.33 $ 1.59
Distributions to shareholders:
Net realized gain (0.17) -
------- -------
Net increase (decrease) in net asset value $ 3.16 $ 1.59
------- -------
Net asset value, end of period $ 19.75 $ 16.59
------- -------
Total return* 20.25% 10.60%
Ratio of net expenses to average net assets+ 2.68% 2.85%**
Ratio of net investment loss to average net assets+ (0.97)% (0.99)%**
Portfolio turnover rate 39% 18%**
Net assets, end of period (in thousands) $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 3.48% 4.51%**
Net investment loss (1.77)% (2.65)%**
Ratios assuming waiver of management fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 2.64% 2.77%* *
Net investment loss (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. 25
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 3/31/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
3/31/00 3/31/99
<S> <C> <C>
CLASS C
Net asset value, beginning of period $ 18.13 $ 19.77
------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.22) $ (0.04)
Net realized and unrealized gain (loss) on investments and foreign currency
transactions 8.78 (1.59)
------- -------
Net increase (decrease) from investment operations $ 8.56 $ (1.63)
Distributions to shareholders:
Net realized gain - (0.01)
------- -------
Net increase (decrease) in net asset value $ 8.56 $ (1.64)
------- -------
Net asset value, end of period $ 26.69 $ 18.13
------- -------
Total return* 47.21% (8.22)%
Ratio of net expenses to average net assets+ 2.79% 2.37%
Ratio of net investment loss to average net assets+ (1.29)% (0.65)%
Portfolio turnover rate 59% 72%
Net assets, end of period (in thousands) $ 3,491 $ 1,865
Ratios assuming no waiver of management fees and assumption of expenses by
PIM and no reduction for fees paid indirectly:
Net expenses 3.13% 2.89%
Net investment loss (1.63)% (1.17)%
Ratios assuming waiver of management fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 2.77% 2.35%
Net investment loss (1.27)% (0.63)%
<CAPTION>
Year Ended 10/31/96 to
3/31/98 3/31/97
<S> <C> <C>
CLASS C
Net asset value, beginning of period $ 16.62 $ 15.00
------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.11) $ (0.07)
Net realized and unrealized gain (loss) on investments and foreign currency
transactions 3.43 1.69
------- -------
Net increase (decrease) from investment operations $ 3.32 $ 1.62
Distributions to shareholders:
Net realized gain (0.17) -
------- -------
Net increase (decrease) in net asset value $ 3.15 $ 1.62
------- -------
Net asset value, end of period $ 19.77 $ 16.62
------- -------
Total return* 20.16% 10.80%
Ratio of net expenses to average net assets+ 2.73% 3.74%**
Ratio of net investment loss to average net assets+ (1.11)% (1.77)%**
Portfolio turnover rate 39% 18%**
Net assets, end of period (in thousands) $ 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 3.53% 4.91%**
Net investment loss (1.91)% (2.94)%**
Ratios assuming waiver of management fees and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 2.67% 3.69%**
Net investment loss (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.
26 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer World Equity Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 3/31/00
--------------------------------------------------------------------------------
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 as of trade date. The net value asset
value is computed once daily, on each day the New York Stock Exchange is
open, as of the close of the regular trading on the Exchange. In computing
the net asset value, securities are valued at the last sale price on the
principal exchange where they are traded. Securities that have not traded on
the date of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of, the Board
of Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the Exchange. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Dividend income is recorded on the ex-dividend
date, except that certain dividends from foreign securities where the
ex-dividend date may have passed are recorded as soon as the Fund is informed
of the ex-dividend data in the exercise of reasonable
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NOTES TO FINANCIAL STATEMENTS 3/31/00 (continued)
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diligence. Interest income is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities that have
the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
The Fund's investments in emerging markets or countries with limited or
developing markets may subject the Fund to a greater degree of risk than in a
developed market. Risks associated with these developing markets include
political, social or economic factors and may affect the price of the Funds's
investment and income generated by these investments, as well as the Fund's
ability to repatriate such amounts.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollar actually received. Further, the
effects of changes in foreign currency exchange rates on investments are not
segregated in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the time
a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of
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Pioneer World Equity Fund
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the contract and from unanticipated movements in the value of foreign
currencies relative to the U.S. dollar.
As of March 31, 2000 the Fund had no outstanding portfolio hedges. The Fund's
gross forward foreign currency settlement contracts receivable and payable
were $10,753 and $10,796, respectively, resulting in a net payable of $43.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the repatriation of certain foreign
currencies and/or net realized capital gains in certain countries. During the
year ended March 31, 2000, the Fund paid no such taxes.
In determining 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 carry-forward (if
applicable) and other such factors. As of March 31, 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 March 31, 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.
At March 31, 2000, the Fund reclassified $128,547 and $404,035 from paid-in
capital to accumulated net investment loss and accumulated
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Pioneer World Equity Fund
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NOTES TO FINANCIAL STATEMENTS 3/31/00 (continued)
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undistributed net realized gain on investments and foreign currency
transactions, respectively. The reclassification has no impact on the net
asset value of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
In order to comply with Federal income tax regulations, the Fund has
designated $1,626,613 as a capital gain dividend for the purposes of the
dividend paid deduction.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and an indirect subsidiary of The Pioneer Group, Inc., earned $10,297 in
underwriting commissions on the sale of fund shares during the year ended
March 31, 2000.
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 Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest received
from counterparties, is required to be at least equal to or in excess of the
value of the repurchase agreement at the time of purchase. The collateral for
all repurchase agreements is held in safekeeping in the customer-only account
of the Fund's custodian, or subcustodians. The Fund's investment adviser,
Pioneer Investment Management, Inc.
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Pioneer World Equity Fund
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(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.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At March 31, 2000, $46,025 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 $10,851 in transfer agent fees payable to PSC at March 31, 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
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Pioneer World Equity Fund
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NOTES TO FINANCIAL STATEMENTS 3/31/00 (continued)
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shares. Included in due to affiliates is $36,122 in distribution fees payable
to PFD at March 31,2000.
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 are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to
PFD. For the year ended March 31, 2000, CDSCs in the amount of $53,724 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 year ended March 31, 2000, the
Fund's expenses were reduced by $6,212 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. For the year ended March 31, 2000, the Fund had no borrowings under this
agreement.
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Pioneer World Equity Fund
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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 March 31, 2000, and the related
statement of operations, the statements of changes in net assets, and the
financial highlights for the periods presented. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 2000 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer World Equity Fund as of March 31, 2000, the results of its operations,
the changes in its net assets, and the financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
May 5, 2000
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Pioneer World Equity Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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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
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
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 Value Fund Pioneer Limited Maturity Bond Fund
Pioneer Science & Technology 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.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information,
have your 13-digit account number and four-digit personal identification
number at hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as you
meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need to
do is authorize a set amount of money to be moved out of your bank account into
the Pioneer fund of your choice. Investomatic also allows you to change the
dollar amount, frequency and investment date right over the phone. By putting
aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing Pioneer
to deduct from participating employees' paychecks. You specify the dollar amount
you want to invest into the Pioneer fund(s) of your choice.
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Automatic Exchange Program
A simple way to move money from 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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HOW TO CONTACT PIONEER
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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.
[Pioneer logo]
Pioneer Investment Management, Inc.
60 State Street 8142-00-0500
Boston, MA 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [Recycle Logo] Printed on Recycled Paper
