PIONEER EQUITY-INCOME FUND
60 State Street
Boston, Massachusetts 02109
OFFICERS
JOHN F. COGAN, JR., Chairman and President
DAVID D. TRIPPLE, Executive Vice President
JOHN A. CAREY, Vice President
WILLIAM H. KEOUGH, Treasurer
JOSEPH P. BARRI, Secretary
TRUSTEES
JOHN F. COGAN, JR.
RICHARD H. EGDAHL, M.D.
MARGARET B.W. GRAHAM
JOHN W. KENDRICK
MARGUERITE A. PIRET
DAVID D. TRIPPLE
STEPHEN K. WEST
JOHN WINTHROP
INVESTMENT ADVISER
PIONEERING MANAGEMENT
CORPORATION
PRINCIPAL UNDERWRITER
PIONEER FUNDS
DISTRIBUTOR, INC.
CUSTODIAN
BROWN BROTHERS
HARRIMAN & CO.
INDEPENDENT PUBLIC
ACCOUNTANTS
ARTHUR ANDERSEN LLP
LEGAL COUNSEL
HALE AND DORR
SHAREHOLDER SERVICES
AND TRANSFER AGENT
PIONEERING SERVICES
CORPORATION
60 State Street
Boston, Massachusetts 02109
Please call Pioneer for information on:
Existing accounts, new accounts,
prospectuses, applications,
and service forms 1-800-225-6292
Fund yields and prices 1-800-225-4321
Toll-free fax 1-800-225-4240
Retirement plans 1-800-622-0176
Telecommunications Device for
the Deaf (TDD) 1-800-225-1997
When distributed to persons who are not shareowners of the Fund, this report
must be accompanied by an official prospectus, which discusses the objectives,
policies, sales charges, and other information about the Fund.
0695-2525
((c))Pioneer Funds Distributor, Inc.
[Pioneer logo]
Pioneer
Equity-Income
Fund
SEMIANNUAL REPORT
APRIL 30, 1995
<PAGE>
Dear Shareowners:
April 30 marked the midpoint of the 1995 fiscal year for Pioneer Equity-Income
Fund. The six months that have elapsed since we last reported to you were quite
eventful for stock investors. The Dow Jones Industrial Average crossed, and
stayed above, the 4000 mark -- a major milestone in its history. The positive
momentum in stock prices came even as the Federal Reserve raised short-term
interest rates for the seventh time in a year, and the U.S. dollar sunk to
historic lows versus other major currencies. Apparently, investors were
encouraged by increased corporate earnings and signs that the U.S. economy may
actually achieve a "soft landing" with slower, controlled growth and low
inflation. In response, long-term interest rates came down significantly as the
period progressed.
As one should expect, your Fund performed well in this environment, although it
is not designed to achieve the double-digit returns some growth-oriented funds
posted. Shareowners enjoyed a solid total return and continued to receive
quarterly income dividends and, meeting the Fund's objective, a yield above
that of the Standard & Poor's (S&P) 500 Index. We are pleased to report the
following results for the semiannual period from October 31, 1994, through
April 30, 1995.
Class A Shares
(bullet) Your Fund paid a total of $0.27 per share in quarterly dividends,
and made a $0.40 per share capital gains distribution in December.
(bullet) The Fund's 12-month yield was 3.34% on April 30, versus 2.56% for
the unmanaged S&P 500 Index.
(bullet) Net asset value rose slightly to $16.17 per share on April 30, up
from $16.16 per share on October 31.
(bullet) The Fund generated a six-month total return of 4.51% at net asset
value. For shareowners who paid the maximum public offering price, total return
was -1.52% for the semiannual period. Total return reflects the change in share
price, assuming the reinvestment of all distributions at net asset value.
Class B Shares
(bullet) Your Fund paid a total of $0.24 per share in quarterly dividends,
and made a $0.40 per share capital gains distribution in December.
(bullet) The Fund's 12-month yield was 2.98% on April 30, versus 2.56% for
the unmanaged S&P 500 Index.
(bullet) Net asset value was $16.13 per share on April 30, down slightly
from $16.14 per share on October 31, in part reflecting the payment of
distributions.
(bullet) The Fund generated a six-month total return of 4.19%, assuming
shares were held the entire period. Total return would have been 0.19% if
shares were redeemed at the end of the six months. Total return reflects the
change in share price, assuming the reinvestment of all distributions at net
asset value.
The Fund's longer-term results have been even more rewarding, as the
accompanying table shows.
Average Annual Total Returns
(For periods ended April 30, 1995)
At Net At Public
Class A Shares Asset Value Offering Price*
Life-of-Fund (7/25/90) 12.06% 10.68%
Three Years 10.74 8.58
One Year 7.37 1.17
Class B Shares If Not Redeemed If Redeemed**
Life-of-Fund (4/4/94) 9.56% 5.88%
One Year 6.71 2.71
A Portfolio of Dividend-Paying Stocks
Pioneer Equity-Income Fund's mandate is to provide shareowners with regular
income dividends by investing in stocks, or securities convertible into stocks.
In order to achieve the Fund's goal, we keep the portfolio fully invested. We
also concentrate investments in companies that tend to pay the highest
dividends, typically utility (26% of the portfolio at period end) and financial
(16%) companies. As interest rates came down over the course of the past six
months, prices of financial stocks rose sharply and contributed nicely to the
Fund's total return. Utility stock prices, on the other hand, remained bogged
down by regulatory concerns. Throughout the semiannual period, we tended to
favor telephone companies, a strategy that helped the Fund avoid weakening
prices of many electric and gas stocks. We took advantage of reduced prices to
upgrade holdings across the utility universe, a move that also helped the
Fund's performance.
*Assumes deduction of the 5.75% maximum public offering price at the beginning
of the period, and reinvestment of all distributions at net asset value.
**Assumes deduction of the 4.0% maximum contingent deferred sales charge at the
end of the period, and reinvestment of all distributions at net asset value.
Past performance is no guarantee of future results. Share price and return
fluctuate so that your shares, when redeemed, may be worth more or less than
their original price.
<PAGE>
Every security we buy for the Fund must be expected to contribute income.
Typically, the Fund invests in established, blue-chip companies with
demonstrated ability to sustain attractive dividend payments. Where possible,
your Fund's management has branched out into a variety of market sectors. For
example, we added Apple Computers, Inc. to get some participation in the good
fortunes of the technology sector, and Lockheed Martin Corp. to capture some
benefit of the aerospace industry's renewed strength. In the airline industry,
we added convertible debentures of AMR Corp. (parent of American Airlines). HJ
Heinz Co. is a new position in the food and agriculture group, where we also
increased the Fund's investment in Quaker Oats Co. and CPC International Inc.
We raised the Fund's exposure to the motor vehicle industry to 7%, from 4% in
October, with a new position in Chrysler Corp. and significant additions to
holdings in Ford Motor Company and General Motors Corp. The accompanying chart
shows the sectors represented in the Fund's portfolio on April 30.
[Pie chart]
Portfolio Distribution
(as of April 30, 1995)
Utilities 26%
Financial 16%
Consumer Non-Durables 11%
Basic Industries 8%
Convertible Bonds/Preferred Stocks 9%
Consumer Durables 7%
Services 6%
Energy 5%
Transportation 5%
Other 7%
[End of pie chart]
Looking Ahead
As we move ahead through 1995, we will adhere to our disciplined investment
style and stock selection process. The Fund will continue to invest only in
U.S. companies, and there will be no investments in exotic derivatives or
companies whose primary business is alcohol, tobacco or gambling.
To date, Fund shareowners have enjoyed solid total returns and above-market
yields. Even if the economy slows significantly, we believe the Fund's
investments will still provide attractive dividends. In fact, companies in the
portfolio have continued to announce dividend increases. We are confident that
our careful approach to investing will help us bring real value to you as a
Fund shareowner.
Please read on through the following pages, which include the Fund's audited
Schedule of Investments and financial statements. If you have any questions
about your investment in Pioneer Equity-Income Fund, please contact your
investment representative, or call Pioneer at 1-800-225-6292. Thank you for
your support.
Respectfully submitted,
[Signature of John F. Cogan, Jr.]
John F. Cogan, Jr.
Chairman and President,
Pioneer Equity-Income Fund
June 7, 1995
2
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER EQUITY-INCOME FUND--APRIL 30, 1995
Principal
Amount Value
INVESTMENT IN SECURITIES--99.3%
CONVERTIBLE CORPORATE
BONDS--1.6%
$1,500,000 AMR Corp., Conv. Sub. Deb., 6.125%,
2024 $ 1,453,125
1,310,000 Guilford Mills Inc., Conv. Sub. Deb.,
6.00%, 2012 1,254,325
1,000,000 Raymond Corp., Conv. Sub. Deb.,
6.50%, 2003 1,192,500
TOTAL CONVERTIBLE
CORPORATE BONDS
(Cost $3,475,000) $ 3,899,950
Shares
CONVERTIBLE PREFERRED
STOCKS--7.0%
20,000 Ashland, Inc., 3.125% $ 1,190,000
20,300 Bowater, Inc., 7.00%, Series B 654,675
10,000 Case Corp., $4.50, Series A 685,000
75,000 Delta Air Lines, Inc., $3.50, Series
C 4,106,250
20,000 Reading & Bates, $1.625 537,500
70,000 Reynolds Metals, 7.00% 3,377,500
100,000 Rouse Co., 6.50%, Series A 4,725,000
1,840 Stepan Company, 5.50% 36,800
33,000 U.S. Steel Corp., 6.50% 1,480,875
TOTAL CONVERTIBLE
PREFERRED STOCKS
(Cost $16,738,248) $16,793,600
COMMON STOCKS--90.7%
BASIC INDUSTRIES--8.3%
Chemicals--3.5%
86,200 ARCO Chemical Company $ 4,008,300
40,000 Borden Chemicals and Plastics, L.P. 675,000
56,500 E.I. du Pont de Nemours and Company 3,721,938
$ 8,405,238
Iron & Steel--1.7%
232,625 Roanoke Electric Steel Corp. $ 3,983,703
Metals & Mining--1.8%
2,000 Great Northern Iron Ore Properties
CBI $ 84,500
75,000 Phelps Dodge Corp. 4,246,875
$ 4,331,375
Paper Products--1.3%
25,800 Kimberly Clark Corp. $ 1,460,925
31,000 Union Camp Corp. 1,553,875
$ 3,014,800
TOTAL BASIC INDUSTRIES $19,735,116
CAPITAL GOODS--3.3%
Aerospace Manufacturing--0.9%
35,860 Lockheed Martin Corp. $ 2,070,915
Producer Goods--2.4%
27,400 Briggs & Stratton Corp. $ 962,425
187,650 The Gorman-Rupp Company 2,838,206
8,000 Manitowoc Company, Inc. 209,000
28,000 Minnesota Mining & Manufacturing Co. 1,669,500
$ 5,679,131
TOTAL CAPITAL GOODS $ 7,750,046
CONSUMER DURABLES--7.1%
Motor Vehicles--7.1%
106,650 Chrysler Corp. $ 4,599,281
296,100 Ford Motor Company 7,994,700
98,000 General Motors Corp. 4,422,250
5,480 Strattec Security Corp.* 63,705
TOTAL CONSUMER DURABLES $17,079,936
CONSUMER NON-DURABLES--11.1%
Agriculture & Food--7.8%
100,900 CPC International, Inc. $ 5,915,263
78,125 Flowers Industries, Inc. 1,357,422
20,000 Heinz H. J. Co. 840,000
20,000 Kellogg Co. 1,270,000
79,200 Lance, Inc. 1,386,000
82,500 Nash-Finch Company 1,314,844
100,000 Quaker Oats Co. 3,587,500
102,300 Sara Lee Corp. 2,851,612
$18,522,641
Consumer Luxuries--0.3%
20,000 Cedar Fair, L.P. $ 627,500
Retail Non-Food--3.0%
60,000 J.C. Penney Co., Inc. $ 2,625,000
55,000 May Department Stores Co. 1,993,750
30,000 Mercantile Stores Co., Inc. 1,327,500
25,000 Sears Roebuck and Co. 1,356,250
$ 7,302,500
TOTAL CONSUMER
NON-DURABLES $26,452,641
ENERGY--4.6%
Oil & Gas Extraction--4.6%
63,500 Amoco Corp. $ 4,167,187
26,000 Atlantic Richfield Co. 2,977,000
52,900 BP Prudhoe Bay Royalty Trust 985,263
24,000 Chevron Corp. 1,137,000
37,000 Sabine Royalty Trust 365,375
19,000 Texaco, Inc. 1,299,125
TOTAL ENERGY $10,930,950
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
FINANCIAL--15.7%
Commercial Banks--15.3%
103,100 AmSouth Bancorp $ 3,221,875
70,400 The Bank of New York Company, Inc. 2,314,400
95,000 Boatmen's Bancshares, Inc. 3,158,750
144,000 CoreStates Financial Corp. 4,698,000
109,000 FirsTier Financial, Inc. 3,651,500
160,000 First Security Corp. 3,820,000
50,000 First Tennessee National Corp. 2,125,000
153,125 Huntington Bancshares, Inc. 2,880,664
65,000 Magna Group, Inc. 1,365,000
108,000 National City Corp. 2,956,500
181,550 Old Kent Financial Corp. 5,628,050
30,000 Southtrust Corp. 645,000
$ 36,464,739
Real Estate--0.4%
62,900 Rouse Co. $ 1,108,613
TOTAL FINANCIAL $ 37,573,352
SERVICES--6.2%
Broadcasting and Media--0.9%
71,999 Park Communications, Inc.* $ 2,186,970
Health & Personal Care--0.8%
69,700 U.S. Healthcare, Inc. $ 1,864,475
Publishing--2.9%
50,000 Dun & Bradstreet Corp. $ 2,606,250
40,000 McGraw-Hill Companies, Inc. 2,985,000
60,000 New York Times Co. 1,357,500
$ 6,948,750
Pharmaceuticals--1.6%
18,000 Johnson & Johnson $ 1,170,000
35,000 Schering-Plough 2,638,125
$ 3,808,125
TOTAL SERVICES $ 14,808,320
TECHNOLOGY--3.2%
Electronics--1.8%
84,587 Joslyn Corp. $ 2,114,675
36,500 Thomas & Betts Corp. 2,326,875
$ 4,441,550
Business Machines--0.5%
30,000 Apple Computers, Inc. $ 1,147,500
Photo/Instrumentation--0.9%
37,000 Eastman Kodak Co. $ 2,127,500
TOTAL TECHNOLOGY $ 7,716,550
TRANSPORTATION--5.2%
Railroad & Bus--5.2%
78,000 Conrail, Inc. $ 4,260,750
71,600 Norfolk Southern Corp. 4,824,050
59,000 Union Pacific Corp. 3,237,625
TOTAL TRANSPORTATION $ 12,322,425
UTILITIES--26.0%
Electric Utility--4.0%
147,100 Allegheny Power System, Inc. $ 3,456,850
58,100 Pacific Gas & Electric Co. 1,561,437
50,000 IES Industries, Inc. 1,037,500
114,650 Western Resources, Inc. 3,482,494
$ 9,538,281
Gas Utility--4.6%
102,900 Brooklyn Union Gas Co. $ 2,495,325
83,450 Connecticut Energy Corp. 1,595,982
85,950 Indiana Energy, Inc. 1,579,331
30,000 North Carolina Natural Gas Corp. 675,000
34,200 Northwest Natural Gas Company 1,058,062
41,700 NUI Corp. 635,925
50,500 Pennsylvania Enterprises, Inc. 1,634,938
98,000 Public Service Co. of North Carolina,
Inc. 1,457,750
$ 11,132,313
Telecommunications--14.4%
142,000 Ameritech Corp. $ 6,390,000
82,100 Bell Atlantic Corp. 4,505,237
34,200 BellSouth Corp. 2,094,750
104,000 GTE Corp. 3,549,000
275,500 Lincoln Telecommunications Co. 4,270,250
84,500 NYNEX Corp. 3,453,937
146,000 Pacific Telesis Group 4,507,750
40,000 SBC Communications, Inc. 1,765,000
89,877 U.S. West, Inc. 3,718,661
$ 34,254,585
Utility/Other--3.0%
75,200 American Water Works, Inc. $ 2,171,400
23,000 Aquarion Company 508,875
10,500 California Water Service Co. 334,687
58,000 ETown Corp. 1,544,250
62,200 MIddlesex Water Co. 995,200
99,200 Southern California Water Co. 1,698,800
$ 7,253,212
TOTAL UTILITIES $ 62,178,391
TOTAL COMMON STOCKS
(Cost $206,896,457) $216,547,727
TOTAL INVESTMENT IN
SECURITIES
(Cost $227,109,705) (a) $237,241,277
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
Principal
Amount Value
TEMPORARY CASH
INVESTMENTS--0.7%
$1,552,000 Household Finance Corp., 5.85%,
5/1/95 $ 1,552,757
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $1,552,000) $ 1,552,757
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENTS
(Cost $228,661,705) $238,794,034
* Non-income producing security.
(a) At April 30, 1995, the net unrealized appreciation on investments based on
cost for federal income tax purposes of $227,109,705 was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost $17,122,796
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost
over value (6,991,224)
Net unrealized appreciation $10,131,572
Purchases and sales of investment securities (excluding temporary cash
investments) for the six months ended April 30, 1995, aggregated $54,466,413
and $11,633,623, respectively.
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
PIONEER EQUITY-INCOME FUND
BALANCE SHEET--April 30, 1995
ASSETS:
Investment in securities, at value (including temporary
cash investments of $1,552,757) (cost $228,661,705; see
Schedule of Investments and Note 1) $238,794,034
Cash 16,297
Receivables--
Trust shares sold 2,451,419
Dividends 742,214
Interest 57,098
Other 9,041
Total assets $242,070,103
LIABILITIES:
Payables--
Investment securities purchased $ 3,452,240
Trust shares repurchased 191,559
Accrued expenses--
Management fees (Note 2) 21,098
Other (Notes 2, 3 and 4) 150,400
Total liabilities $ 3,815,297
NET ASSETS:
Paid-in capital (Note 1) $228,260,085
Accumulated undistributed net investment income 441,322
Accumulated net realized loss on investments (Note 1) (578,173)
Net unrealized gain on investments 10,131,572
Total net assets $238,254,806
Net Asset Value Per Share:
Class A--(based on $205,822,955/12,726,274 shares of
beneficial interest outstanding--unlimited number of
shares authorized with no par value) $ 16.17
Class B--(based on $32,431,851/2,010,214 shares of
beneficial interest outstanding--unlimited number of
shares authorized with no par value) $ 16.13
Maximum Offering Price:
Class A $ 17.16
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
PIONEER EQUITY-INCOME FUND
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1995
Investment Income (Note 1):
Dividends $ 4,827,752
Interest 164,281
Total investment income $ 4,992,033
Expenses:
Management fees (Note 2) $ 654,937
Distribution fees (Note 4)
Class A 226,372
Class B 102,107
Transfer fees (Note 3)
Class A 215,730
Class B 18,678
Registration fees 56,500
Professional fees 40,260
Accounting (Note 2) 41,425
Custodian fees 18,615
Printing 6,130
Fees and expenses of nonaffiliated trustees 5,150
Miscellaneous 35,113
Total expenses $ 1,421,017
Net investment income $ 3,571,016
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments (Note 1) $ (464,987)
Increase in net unrealized gain on investments 6,977,702
Net gain on investments $ 6,512,715
Net increase in net assets resulting from operations $10,083,731
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
PIONEER EQUITY-INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 1995
and the Year Ended October 31, 1994
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, October 31,
1995 1994
<S> <C> <C>
From Operations:
Net investment income $ 3,571,016 $ 5,565,571
Net realized gain (loss) on investments (464,987) 4,766,366
Increase (decrease) in net unrealized gain on
investments 6,977,702 (9,777,231)
Net increase in net assets resulting from
operations $ 10,083,731 $ 554,706
Distributions to Shareholders From:
Investment income
Class A--net ($0.27 and $0.54 per share,
respectively) $ (3,133,569) $ (5,293,281)
Class B--net ($0.24 and $0.24 per share,
respectively) (306,081) (103,611)
Realized gain on investments
Class A--net ($0.40 and $0.23 per share,
respectively) (4,472,959) (2,041,544)
Class B--net ($0.40 and $0.00 per share,
respectively) (399,278) --
Decrease in net assets resulting from
distributions to shareholders $ (8,311,887) $ (7,438,436)
From Trust Share Transactions:
Net proceeds from sale of shares $ 63,450,394 $ 86,133,165
Net asset value of shares issued to shareholders in
reinvestment of dividends 7,753,988 6,765,985
Cost of shares repurchased (23,327,344) (40,434,920)
Increase in net assets resulting from trust share
transactions $ 47,877,038 $ 52,464,230
Net increase in net assets $ 49,648,882 $ 45,580,500
Net Assets:
Beginning of period 188,605,924 143,025,424
End of period (including accumulated undistributed
net investment income of
$441,322 and $309,956, respectively) $238,254,806 $188,605,924
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994
SHARES AMOUNT SHARES AMOUNT
CLASS A
Shares sold 2,649,397 $ 41,621,013 4,451,676 $ 72,541,569
Shares issued to shareholders in reinvestment of
distributions 467,496 7,093,772 409,140 6,673,425
Less shares repurchased (1,278,707) (19,992,849) (2,425,325) (39,468,824)
Net increase 1,838,186 $ 28,721,936 2,435,491 $ 39,746,170
CLASS B*
Shares sold 1,395,952 $ 21,829,381 838,390 $ 13,591,596
Shares issued to shareholders in reinvestment of
distributions 43,462 660,216 5,631 92,560
Less shares repurchased (213,633) (3,334,495) (59,588) (966,096)
Net increase 1,225,781 $ 19,155,102 784,433 $ 12,718,060
</TABLE>
*Class B shares were first publicly offered April 4, 1994.
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
PIONEER EQUITY-INCOME FUND
FINANCIAL HIGHLIGHTS
Selected Data for a Share Outstanding for the Periods Presented
<TABLE>
<CAPTION>
July 25,
Six Months 1990 to
Ended October
April 30, For the Year Ended October 31, 31,
CLASS A 1995 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.16 $ 16.92 $ 14.56 $ 13.25 $ 10.35 $ 12.50
Increase (decrease) from investment
operations:
Net investment income $ 0.28 $ 0.55 $ 0.50 $ 0.52 $ 0.61 $ 0.22
Net realized and unrealized gain (loss) on
investments 0.40 (0.54) 2.46 1.57 2.94 (2.24)
Total increase (decrease) from investment
operations $ 0.68 $ 0.01 $ 2.96 $ 2.09 $ 3.55 $ (2.02)
Distribution to shareholders from:
Net investment income (0.27) (0.54) (0.50) (0.56) (0.65) (0.13)
Net realized gain (0.40) (0.23) (0.10) (0.22) -- --
Net increase (decrease) in net asset value $ 0.01 $ (0.76) $ 2.36 $ 1.31 $ 2.90 $ (2.15)
Net asset value, end of period $ 16.17 $ 16.16 $ 16.92 $ 14.56 $ 13.25 $ 10.35
Total return* 4.51% 0.09% 20.71% 16.53% 35.10% (13.40%)
Ratio of net operating expenses to average
net assets 1.34%** 1.24% 1.33% 1.73% 1.75% 1.75%**
Ratio of net investment income to average
net assets 3.63%** 3.43% 3.20% 4.01% 5.54% 8.44%**
Porfolio turnover rate 11.50%** 26.67% 13.57% 18.13% 54.37% 3.83%**
Net assets, end of period (in thousands) $205,823 175,943 $143,025 $39,269 $10,616 $ 3,212
Ratios assuming no waiver of management fees
or assumption of expenses by PMC for the
periods impacted are:
Net operating expenses -- -- -- 1.77% 2.92% 6.62%**
Net investment income -- -- -- 3.97% 4.37% 3.57%**
</TABLE>
<TABLE>
<CAPTION>
Six Months
Ended April 4, 1994 to
April 30, 1995 October 31, 1994
CLASS B***
<S> <C> <C>
Net asset value, beginning of period $ 16.14 $ 15.46
Increase from investment operations:
Net investment income $ 0.25 $ 0.21
Net realized and unrealized gain on
investments 0.38 0.71
Total increase from investment operations $ 0.63 $ 0.92
Distribution to shareholders from:
Net investment income (0.24) (0.24)
Net realized gain (0.40) --
Net increase (decrease) in net asset value $ (0.01) $ 0.68
Net asset value, end of period $ 16.13 $ 16.14
Total return* 4.19% 5.93%
Ratio of net operating expenses to average
net assets 2.02%** 1.92%**
Ratio of net investment income to average
net assets 2.77%** 2.35%**
Porfolio turnover rate 11.50%** 26.67%
Net assets, end of period (in thousands) $32,432 $12,663
</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.
*** Class B shares were first publicly offered on April 4, 1994.
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS-April 30, 1995
1.Pioneer Equity Income Fund (the Fund) is one of three funds that currently
form Pioneer Growth Trust (the Trust), a Massachusetts business trust,
organized on April 7, 1990 and registered under the Investment Company Act of
1940 as a diversified, open-end management company.
The Board of Trustees (the Trustees) authorized the issuance of two classes of
the Fund, designated as Class A and Class B shares. Class B shares were first
publicly offered on April 4, 1994. Shares issued and outstanding prior to April
4, 1994 were designated as Class A shares. The shares of each class represent
an interest in the same portfolio of investments of the Fund and have equal
rights to voting, redemptions, dividends, and liquidations, 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 holders of Class A and Class B shares, respectively.
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.Investment Securities--Security transactions are recorded on the date the
securities are purchased or sold. Investments in 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. Temporary cash investments are valued at cost plus accrued
interest, which approximates value. Dividend income is recorded on the
ex-dividend date, and interest income is recorded on the accrual basis.
Gains and losses from 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 first to select for sale those securities that have the
highest cost and also qualify for long-term capital gain or loss treatment for
tax purposes.
B.Federal 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 provisions are required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with 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 capital, depending on the type of
book/tax differences that may exist.
C.Trust Shares--The Fund records sales and repurchases of its trust shares on
the trade date. Net losses, if any, as a result of cancellations are absorbed
by Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned subsidiary of The Pioneer Group, Inc.(PGI). PFD earned
$82,633 in underwriting commissions on the sale of shares of the Fund during
the six months ended April 30, 1995. Dividends and distributions to
shareholders are recorded as of the ex-dividend date. Dividends paid by the
Fund, if any, with respect to each class of shares are calculated in the same
manner, at the same time and on the same day and are in the same amount, except
that Class A and Class B shares can bear different transfer agent and
distribution fees.
D.Class Allocations--Distribution expenses are calculated based on the
average daily net asset value attributable to Class A and Class B shares of the
Fund, respectively. Shareholders of Class A and Class B share all expenses and
fees paid to the transfer service organization, 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 expenses (see
Note 3). Income, common expenses and realized and unrealized gains (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.
2.Pioneering Management Corporation (PMC) is the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 0.65% of the Fund's
average daily net assets up to $300,000,000, 0.60% of such assets between
$300,000,000 and $500,000,000, 0.50% of such assets between $500,000,000 and
$1,000,000,000 and 0.45% of such assets in excess of $1,000,000,000.
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In addition, under the management agreement, certain services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. Included in Accrued expenses--Other is $7,016 in accounting fees
payable to PMC at April 30, 1995.
3.PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund, at negotiated rates. Included in
Accrued expenses--Other are $31,373 in transfer fees payable to PSC at April
30, 1995.
4.The Fund has adopted a Plan of Distribution for both Class A shares (Class A
Plan) and Class B shares (Class B Plan) in accordance with Rule 12b-1 under the
Investment Company Act of 1940 pursuant to which certain distribution and
service fees are paid to PFD.
Pursuant to the Class A Plan, the Fund reimburses PFD for its actual
expenditures to finance any activity primarily intended to result in the sale
of Class A shares or to provide services to holders of Class A shares. Plan
expenses are accrued daily and may not exceed 0.25% of the Fund's average
annual net assets attributable to Class A shares. The Class B Plan provides
that the Fund will pay a distribution fee at an annual rate of 0.75% of the
Fund's average daily net assets attributable to Class B shares and will pay PFD
a service fee at the annual rate of 0.25% of the Fund's average daily net
assets attributable to Class B shares. Included in Accrued expenses--Other are
$78,852 in distribution fees payable to PFD at April 30, 1995.
Class B shares that are redeemed within six years of purchase are subject to a
contingent deferred sales charge (CDSC) at declining rates beginning at 4.0% of
the lesser of the current market value at the time of redemption or the
original purchase cost of the shares being redeemed. Proceeds from the CDSC are
paid to PFD. For the six months ended April 30, 1995, CDSC in the amount of
$13,742 was paid to PFD.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER EQUITY-INCOME FUND:
We have audited the accompanying balance sheet of Pioneer Equity-Income
Fund (one of three funds that comprise Pioneer Growth Trust, a Massachusetts
business trust), including the schedule of investments, as of April 30, 1995,
and the related statement of operations, the statements of changes in net
assets and financial highlights for the periods presented. These financial
statements and financial highlights are the responsibility of the Trust'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
April 30, 1995, 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 Equity-Income Fund as of April 30, 1995, and 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.
Boston, Massachusetts ARTHUR ANDERSEN LLP
May 26, 1995
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