<PAGE>
[logo] PIONEER
Investments(R)
Pioneer Europe Fund
ANNUAL REPORT 10/31/00
<PAGE>
Table of Contents
-------------------------------------------------------------------------------
-
<TABLE>
<S> <C>
Letter from the President 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 7
Schedule of Investments 10
Financial Statements 16
Notes to Financial Statements 24
Report of Independent Public Accountants 30
Results of Shareowner Meeting 31
Trustees, Officers and Service Providers 32
The Pioneer Family of Mutual Funds 33
Retirement Plans From Pioneer 34
Programs and Services for Pioneer Shareowners 36
</TABLE>
<PAGE>
Pioneer Europe Fund
LETTER FROM THE PRESIDENT 10/31/00
Dear Shareowner,
-------------------------------------------------------------------------------
-
Just as the year 2000, the last year of the old millennium, is coming to a
close, we at Pioneer are embarking on a new beginning. I'm happy to report
that,
on October 24, 2000, Pioneer Investment Management became a wholly owned
subsidiary of UniCredito Italiano S.p.A., one of Italy's largest and most
successful banking groups. UniCredito's investment operations have been
combined
to form Pioneer Global Asset Management S.p.A. (Pioneer Global), which will
manage more than $110 billion for global individual and institutional clients.
Pioneer Global will bring to Pioneer greater analytical resources that
complement our broad set of investment skills, reinforcing Pioneer's tradition
of fundamental investment analysis and sound long-term portfolio
management. We
believe fund shareholders will benefit from this merger.
The global strength of the new Pioneer Global is already being put to work.
Pioneer Europe Fund has always been supported by a strong analytical team.
Thanks to the merger, the Fund will henceforth be managed by a team drawing on
the integrated resources and expertise of Pioneer's Boston office and our
partners in Dublin. After a six-year stewardship of Pioneer Europe Fund,
portfolio manager Patrick Smith has decided to pursue other interests.
Providing
stock recommendations going forward is Pioneer's European Equities group,
headed
by Riccardo Cavo. This Dublin-based team has a strong and consistent track
record of managing European equity portfolios, using an approach that combines
analyst-driven fundamental research with disciplined risk control. They
will be
supported by our global research team, now 24 analysts strong, covering stocks
from both Boston and Dublin. Theresa Hamacher, Chief Investment Officer of
Pioneer, assisted by Michael Bradshaw, will coordinate the effort,
implementing
the team's decisions and monitoring the portfolio.
We are excited about bringing our global offices even closer together,
devoting
greater resources to the management of your Fund. With our collective
resources,
we feel we can continue to provide our shareowners the performance they have
come to expect.
Thank you for investing with Pioneer; we look forward to helping you reach
your
financial goals.
Sincerely,
/s/ David Tripple
David Tripple
Pioneer Investment Management Inc.
1
<PAGE>
Pioneer Europe Fund
PORTFOLIO SUMMARY 10/31/00
Portfolio Diversification
-------------------------------------------------------------------------------
-
(As a percentage of total investment portfolio)
[pie chart]
Financial 25.2%
Technology 22.5%
Communication Services 14.4%
Consumer Staples 9.9%
Healthcare 9.1%
Energy 6.9%
Consumer Cyclicals 6.0%
Capital Goods 2.5%
Basic Materials 2.3%
Utilities 1.2%
Geographical Distribution
-------------------------------------------------------------------------------
-
(As a percentage of equity holdings)
[bar chart]
United Kingdom 29.1%
France 17.4%
Switzerland 12.6%
Italy 9.3%
Netherlands 8.8%
Germany 8.2%
Finland 5.1%
Spain 5.0%
Norway 1.7%
Sweden 1.5%
United States 0.9%
Portugal 0.4%
10 Largest Holdings
-------------------------------------------------------------------------------
-
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C>
1. Vodafone AirTouch Plc 6.03%
2. Nokia Oyj 4.55
3. Dassault Systemes SA 3.01
4. Amvescap Plc 2.99
5. Banca Fideuram SpA 2.66
6. Aventis SA 2.35
7. Julius Baer Holding AG 2.31
8. Shell Transport & Trading Co. 2.20
9. Lloyds TSB Group Plc 2.12
10. Autonomy Corporation Plc 2.11
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Europe Fund
PERFORMANCE UPDATE 10/31/00 CLASS A SHARES
Share Prices and Distributions
-------------------------------------------------------------------------------
-
<TABLE>
<CAPTION>
Net Asset Value
per Share 10/31/00 10/31/99
<S> <C> <C>
$32.75 $31.71
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(10/31/99 - 10/31/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.002 - $1.111
</TABLE>
Investment Returns
-------------------------------------------------------------------------------
-
The mountain chart on the right shows the growth of a $10,000 investment
made in
Pioneer Europe Fund at public offering price, compared to the growth of the
Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns
(As of October 31, 2000)
<TABLE>
<CAPTION>
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life of Fund
(4/2/91) 13.07% 12.37%
5 Years 15.05 13.69
1 Year 6.83 0.70
</TABLE>
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
[mountain chart]
<TABLE>
<CAPTION>
Pioneer Europe Fund* MSCI Europe Index
<S> <C> <C>
4/91 9425 10000
10/91 9524 10353
9194 10159
11353 12766
10/94 13159 14201
15148 16078
17845 18885
10/97 22894 23793
26215 29280
28577 32948
10/00 30528 33257
</TABLE>
+ Index comparison begins April 30, 1991. The Morgan Stanley Capital
International (MSCI) Europe Index is a capitalization-weighted index of the 15
European country indexes included in the MSCI EAFE (Europe, Australasia, Far
East) Index. These countries are: Austria, Belgium, Denmark, Finland, France,
Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom. 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. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their
original cost.
3
<PAGE>
Pioneer Europe Fund
PERFORMANCE UPDATE 10/31/00 CLASS B SHARES
Share Prices and Distributions
-------------------------------------------------------------------------------
-
<TABLE>
<CAPTION>
Net Asset Value
per Share 10/31/00 10/31/99
<S> <C> <C>
$31.06 $30.38
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(10/31/99 - 10/31/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
- - $1.111
</TABLE>
Investment Returns
-------------------------------------------------------------------------------
-
The mountain chart on the right shows the growth of a $10,000 investment
made in
Pioneer Europe Fund, compared to the growth of the Morgan Stanley Capital
International (MSCI) Europe Index.
Average Annual Total Returns
(As of October 31, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life of Fund
(4/4/94) 14.56% 14.56%
5 Years 14.10 13.98
1 Year 5.90 1.90
</TABLE>
* Reflects deduction of the maximum applicable contingent deferred sales
charge
(CDSC) at the end of the period and assumes reinvestment of
distributions. The
maximum CDSC of 4% declines over six years.
[mountain chart]
<TABLE>
<CAPTION>
Pioneer Europe Fund* MSCI Europe Index
<S> <C> <C>
4/94 10000 10000
10/94 10539 10309
10838 10926
12060 11672
13048 12668
10/96 14089 13709
15707 15323
17943 17272
23571 22293
10/98 20367 21256
21398 23554
22021 23919
27376 25907
10/00 23322 24143
</TABLE>
+ Index comparison begins April 30, 1994. The Morgan Stanley Capital
International (MSCI) Europe Index is a capitalization-weighted index of the 15
European country indexes included in the MSCI EAFE (Europe, Australasia, Far
East) Index. These countries are: Austria, Belgium, Denmark, Finland, France,
Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom. 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. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their
original cost.
4
<PAGE>
Pioneer Europe Fund
PERFORMANCE UPDATE 10/31/00 CLASS C SHARES
Share Prices and Distributions
-------------------------------------------------------------------------------
-
<TABLE>
<CAPTION>
Net Asset Value
per Share 10/31/00 10/31/99
<S> <C> <C>
$30.95 $30.27
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(10/31/99 - 10/31/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
- - $1.111
</TABLE>
Investment Returns
-------------------------------------------------------------------------------
-
The mountain chart on the right shows the growth of a $10,000 investment
made in
Pioneer Europe Fund, compared to the growth of the Morgan Stanley Capital
International (MSCI) Europe Index.
Average Annual Total Returns
(As of October 31, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life of Fund
(1/31/96) 14.37% 14.37%
1 Year 5.93 5.93
</TABLE>
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to investments sold within one year of purchase.
[mountain chart]
<TABLE>
<CAPTION>
Pioneer Europe Fund* MSCI Europe Index
<S> <C> <C>
1/96 10000 10000
10542 10378
10678 10441
10/96 11391 11232
12505 12063
12705 12553
14226 14389
14520 14151
15559 15513
19095 18264
19567 19213
10/98 16509 17414
17850 19020
17343 19297
17036 18855
17862 19596
21391 20608
22198 21225
20835 21160
10/00 18921 19780
</TABLE>
The Morgan Stanley Capital International (MSCI) Europe Index is a
capitalization-weighted index of the 15 European country indexes included
in the
MSCI EAFE (Europe, Australasia, Far East) Index. These countries are: Austria,
Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands,
Norway,
Portugal, Spain, Sweden, Switzerland and the United Kingdom. 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. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their
original cost.
5
<PAGE>
Pioneer Europe Fund
PERFORMANCE UPDATE 10/31/00 CLASS Y SHARES
Share Prices and Distributions
-------------------------------------------------------------------------------
-
<TABLE>
<CAPTION>
Net Asset Value
per Share 10/31/00 10/31/99
<S> <C> <C>
$33.19 $31.97
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(10/31/99 - 10/31/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.002 - $1.111
</TABLE>
Investment Returns
-------------------------------------------------------------------------------
-
The mountain chart on the right shows the growth of a $10,000 investment
made in
Pioneer Europe Fund, compared to the growth of the Morgan Stanley Capital
International (MSCI) Europe Index.
Average Annual Total Returns*
(As of October 31, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed
<S> <C> <C>
Life of Fund
(7/2/98) 0.67% 0.67%
1 Year 7.35 7.35
</TABLE>
* Assumes reinvestment of distributions.
[mountain chart]
<TABLE>
<CAPTION>
Pioneer Europe Fund* MSCI Europe Index
<S> <C> <C>
7/98 10000 10000
10/98 8458 9064
9173 9899
4/99 8942 10044
8814 9814
10/99 9269 10199
11143 10726
4/00 11602 11047
10925 11013
10/00 9950 10295
</TABLE>
+ Index comparison begins July 31, 1998. The Morgan Stanley Capital
International (MSCI) Europe Index is a capitalization-weighted index of the 15
European country indexes included in the MSCI EAFE (Europe, Australasia, Far
East) Index. These countries are: Austria, Belgium, Denmark, Finland, France,
Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland and the United Kingdom. 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. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their
original cost.
6
<PAGE>
Pioneer Europe Fund
PORTFOLIO MANAGEMENT DISCUSSION 10/31/00
Charles Dickens said it best in A Tale of Two Cities: "It was the best of
times,
it was the worst of times, it was the age of wisdom, it was the age of
foolishness . . . we had everything before us, we had nothing before us. .
. ."
How interesting that Mr. Dickens' prose, written in the mid-19th century,
could
so succinctly describe the performance of European markets - and global
markets
for that matter - during the fiscal year ended October 31, 2000. In the
following discussion, Theresa Hamacher, Chief Investment Officer,
discusses this
challenging but exciting time for European investments and the factors that
could shape Pioneer Europe Fund's performance in the months ahead.
Q: How did the Fund perform in this bipolar market?
A: Technology and telecommunications investments rallied dramatically
during the
first half of your Fund's fiscal year and promptly retreated in the second
half following sharp declines last spring. However, other sectors -
including
financial and pharmaceutical stocks - picked up steam in the later six
months
as the momentum in technology-related stocks ebbed. These contrasting
trends
illustrate an important advantage of your Fund - diversification across
different industries helps soften market volatility.
For the year ended October 31, 2000, Class A, B and C Shares rose 6.83%,
5.90% and 5.93%, respectively, at net asset value. In comparison, the MSCI
Europe Index increased 0.94%. The 157 European Region Funds tracked by
Lipper, Inc. climbed, on average, 12.53% for the same period. (Lipper is an
independent firm that measures mutual fund performance.)
Q: Is the degree to which technology and telecommunications stocks retreated
fully warranted?
A: No. While the correction was not altogether a surprise, given the
spectacular
rise in stock prices, many solid European companies were unfairly tarnished
in the rush to judgment. When investors began to question business models,
especially internet companies that had not become profitable, the slightest
hint of bad news became a reason to sell - even if the long-term
prospects of
a company were still quite compelling.
7
<PAGE>
Pioneer Europe Fund
PORTFOLIO MANAGEMENT DISCUSSION 10/31/00 (continued)
For instance, during the course of the summer, wireless telecommunications
companies came under selling pressure, as investors became concerned about
the large fees these companies were paying for next-generation mobile
licenses. However, we remain quite optimistic about the Fund's investments
in mobile phone leaders Vodafone Airtouch (United Kingdom), Libertel
(Netherlands), Sonera (Finland) and Telecom Italia Mobile (Italy), because
they are positioning themselves to dominate the next wave of mobile
data-communications services. Along that same vein, cellular handset
providers Nokia (Finland), Alcatel (France) and Ericsson (Sweden) - all
sizable holdings in your Fund - predicted slower phone sales for the second
half of 2000. Naturally, their stock prices took a beating. Yet, we expect
these companies to fully recover when the new cellular phone models arrive
next year.
We believe technology, media and telecommunications will continue to be a
major force shaping the global economy and your Fund as well. The emphasis
has moved from these sectors as a whole to individual companies that can
deliver real earnings and strong growth momentum - not just a promise. This
thinking has always been at the heart of our research efforts.
Q: Which investments helped the Fund in this environment?
A: Many businesses come to mind, but a few stand out. The software industry is
profiting from old-economy businesses using new technologies to remain
competitive. In many cases, the instant reach of the internet is allowing
businesses to communicate with customers, contractors and suppliers more
efficiently. The Fund holds a relatively large weighting in this sector,
which proved very positive. Brokat Infosystems (Germany) provides internet
commerce software, and Autonomy (United Kingdom) produces artificial
intelligence software.
Our investment in Pearson (United Kingdom), a publisher of educational
textbooks, proved rewarding, as management successfully increased
circulation for its well-known newspaper - the Financial Times. Aventis
(France), our largest pharmaceutical holding, is one of the world's leading
life sciences companies. Since the merger between Rhone-Poulenc and Hoechst
created the company in 1999, investors have gained a better
understanding of
Aventis' research and innovations in the fields of health and nutrition.
8
<PAGE>
Pioneer Europe Fund
Q: Do financial stocks still represent a large weighting in the Fund?
A: Absolutely. On October 31, financial holdings represented 24% of total
assets. Solid earnings growth and Europe's growing appreciation for savings
and investment strategies, particularly for retirement, are favorably
impacting this sector. Fund holdings are focused on private banking and
investment management companies rather than traditional commercial banking
institutions. Banca Fideuram (Italy), Marschollek Lautenschlager und
Partner
or MLP (Germany) and Amvescap (United Kingdom) were up considerably for the
year.
Q: What is your outlook?
A: Prices in European stock markets currently are reflecting expectations of a
gradually slowing economy, a decrease in the momentum of corporate earnings
and lower interest rates. We think the conditions are especially favorable
for technology, media and telecommunications stocks and may attract
investors
back to the market. In these sectors, we continue to focus on sales growth
and earnings in our decision-making, investing in high quality medium- to
large-sized companies. We are concerned about the valuations of
software and
internet companies and have limited our investments in their stocks as well
as those of small-capitalization companies. In defensive sectors, which
tend
to move independently of the general economy, we are setting price
targets as
stocks are beginning to look fully valued. As the stocks reach the targets,
we expect to sell them to lock in profits. Among cyclical sectors,
which tend
to be sensitive to changes in the economy, we are selectively investing in
quality companies that we believe are undervalued. While we expect that
volatility may continue to characterize European stock markets, we
think dips
in prices can translate into attractive buying opportunities.
9
<PAGE>
Pioneer Europe Fund
SCHEDULE OF INVESTMENTS 10/31/00
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
PREFERRED STOCK - 1.7%
42,000 Sap AG $ 8,446,968
-----------
Total Preferred Stock
(Cost $5,025,958) $ 8,446,968
-----------
COMMON STOCKS - 93.6%
Basic Materials - 2.3%
Chemicals (Diversified) - 2.3%
157,846 Aventis SA $11,322,639
-----------
Total Basic Materials $11,322,639
-----------
Capital Goods - 2.3%
Manufacturing (Specialized) - 2.3%
1,200,000 Pirelli SpA $ 3,482,656
207,300 Tomra Systems ASA 8,333,107
-----------
$11,815,763
-----------
Total Capital Goods $11,815,763
-----------
Communication Services - 13.7%
Cellular/Wireless Telecommunications - 7.3%
139,400 Libertel NV* $ 1,815,826
130,000 Sonera Group Plc 2,863,857
570,000 Telecom Italia Mobile SpA 3,023,139
6,956,486 Vodafone AirTouch Plc 29,094,579
-----------
$36,797,401
-----------
Telecommunications (Long Distance) - 1.6%
164,650 Colt Telecom Group Plc* $ 5,243,836
120,900 KPNQwest NV* 2,929,110
-----------
$ 8,172,946
-----------
Telephone - 4.8%
486,904 British Telecom Plc $ 5,722,439
1,227,000 Global Telesystems Group, Inc.* 3,297,563
100,699 Koninklijke KPN NV 2,039,768
400,000 Telecom Italia Mobile SpA 3,401,190
524,687 Telefonica SA* 10,004,758
-----------
$24,465,718
-----------
Total Communication Services $69,436,065
-----------
</TABLE>
10 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer Europe Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Consumer Cyclicals - 5.7%
Services (Advertising/Marketing) - 1.6%
14,036 Publigroupe SA $ 8,237,639
-----------
Services (Commercial & Consumer) - 4.1%
700,000 Hays Plc $ 3,897,618
13,060 Kuoni Reisen Holding AG (Series B) (Registered) 5,594,237
261,700 TNT Post Group NV 5,543,085
76,454 Vivendi 5,495,242
-----------
$20,530,182
-----------
Total Consumer Cyclicals $28,767,821
-----------
Consumer Staples - 9.4%
Broadcasting (Television/Radio/Cable) - 2.1%
35,000 Canal Plus $ 5,064,023
60,300 PT Multimedia Servicos* 1,709,098
87,000 Sogecable* 2,126,253
107,600 United Pan-Europe Communications NV* 1,885,539
-----------
$10,784,913
-----------
Entertainment - 1.4%
267,272 Pearson Plc $ 7,185,909
-----------
Foods - 2.7%
42,000 Groupe Danone $ 5,873,672
3,800 Nestle Corp. (Registered) 7,874,388
-----------
$13,748,060
-----------
Restaurants - 1.0%
570,400 Granada Compass Plc* $ 4,965,736
-----------
Retail Stores (Food Chains) - 0.9%
70,000 Carrefour Supermarche SA $ 4,698,700
-----------
Services (Employment) - 1.3%
9,129 Adecco SA $ 6,312,498
-----------
Total Consumer Staples $47,695,816
-----------
Energy - 6.6%
Oil (International Integrated) - 3.4%
800,000 BP Amoco Plc $ 6,784,648
1,320,000 Shell Transport & Trading Co. 10,629,669
-----------
$17,414,317
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Pioneer Europe Fund
SCHEDULE OF INVESTMENTS 10/31/00 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Oil & Gas (Refining & Marketing) - 3.2%
1,125,000 ENI SpA $ 6,090,829
69,148 Total Fina Elf SA 9,893,282
------------
$ 15,984,111
------------
Total Energy $ 33,398,428
------------
Financial - 24.0%
Banks (Major Regional) - 8.4%
835,000 Banca Fideuram SpA $ 12,839,493
655,760 Banco Santander Central Hispano SA 6,354,981
1,250,000 Bipop-Carire SpA 9,886,194
29,520 Depfa Deutsche Pfandbriefbank AG 2,154,359
2,250 Julius Baer Holding AG 11,139,853
------------
$ 42,374,880
------------
Banks (Money Center) - 4.0%
1,000,000 Lloyds TSB Group Plc $ 10,214,697
428,100 Royal Bank of Scotland Group 9,615,437
428,100 Royal Bank of Scotland Group (Bonus Shares)* 506,239
------------
$ 20,336,373
------------
Financial (Diversified) - 3.2%
280,900 Fortis NV $ 8,581,386
41,200 Marschollek Lautenschlager Und Partner AG 5,584,534
37,000 Lagardere SCA 2,100,540
------------
$ 16,266,460
------------
Insurance (Life/Health) - 3.3%
175,000 Aegon NV $ 6,950,037
395,000 Mediolanum SpA 5,788,855
280,000 Prudential Corp. Plc 3,784,372
------------
$ 16,523,264
------------
Insurance (Multi-Line) - 1.9%
38,000 Axa SA $ 5,030,503
10,000 Zurich Financial Services AG 4,839,786
------------
$ 9,870,289
------------
Insurance (Property/Casualty) - 0.4%
109,800 Skandia Forsakrings AB $ 1,862,544
------------
Investment Management - 2.8%
635,000 Amvescap Plc $ 14,437,619
------------
Total Financial $121,671,429
------------
</TABLE>
12 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer Europe Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare - 8.7%
Biotechnology - 1.8%
208,000 Qiagen NV* $ 9,090,207
-----------
Healthcare (Drugs/Major Pharmaceuticals) - 6.9%
280,000 Glaxo Wellcome Plc $ 8,056,262
5,700 Novartis AG 8,647,029
900 Roche Holdings AG 8,220,961
780,000 Smithkline Beecham Plc 10,083,821
-----------
$35,008,073
-----------
Total Healthcare $44,098,280
-----------
Technology - 19.8%
Communications Equipment - 6.6%
102,000 Alcatel SA $ 6,223,465
533,000 Nokia Oyj 21,932,221
400,000 Telefonaktiebologet LM Ericsson AB (B Shares) 5,324,100
-----------
$33,479,786
-----------
Computers (Hardware) - 0.7%
200,000 Jumptec Industrielle Computertechnik AG* $ 3,469,078
-----------
Computers (Networking) - 0.8%
66,580 Equant NV* $ 2,228,918
38,000 Intershop Communications AG* 1,973,505
-----------
$ 4,202,423
-----------
Computers (Software & Services) - 6.9%
200,550 Autonomy Corporation Plc* $10,184,590
54,450 Brokat Infosystems AG* 2,458,175
25,000 Cap Gemini SA 3,988,422
190,591 Dassault Systemes SA 14,531,943
39,150 GFT Technologies AG* 1,833,893
70,000 Ser System AG 2,020,263
-----------
$35,017,286
-----------
Electronics (Component Distributors) - 1.9%
74,000 Siemens AG $ 9,337,829
-----------
Electronics (Semiconductors) - 1.3%
57,900 Infineon Technologies AG* $ 2,431,148
81,000 ST Microelectronics NV* 4,086,393
-----------
$ 6,517,541
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
Pioneer Europe Fund
SCHEDULE OF INVESTMENTS 10/31/00 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Services (Computer Systems) - 1.4%
90,000 Ingenico, Inc. $ 3,349,001
338,700 Getronics NV 3,808,327
------------
$ 7,157,328
------------
Services (Data Processing) - 0.2%
130,800 Infonet Services Corp.* $ 850,200
------------
Total Technology $100,031,471
------------
Utilities - 1.1%
Electric Companies - 1.1%
300,000 Union Electrica Fenosa SA $ 5,547,301
------------
Total Utilities $ 5,547,301
------------
Total Common Stocks
(Cost $389,056,414) (a) $473,785,013
------------
WARRANTS - 0.0%
5,000 Banca Popolaredi Bergamo, 3/31/04 $ 85,709
------------
TOTAL WARRANTS
(Cost $74,392) $ 85,709
------------
TOTAL INVESTMENT IN SECURITIES - 95.3%
(Cost $394,156,764) (a) $482,317,690
------------
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 4.7%
Commercial Paper - 4.7%
$24,044,000 American Express, 6.63%, 11/1/00 $ 24,044,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $24,044,000) $ 24,044,000
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $418,200,764) (b)(c) $506,361,690
============
</TABLE>
14 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer Europe Fund
* Non-income producing security.
(a) Distribution of investments by country of issue, as a percentage of total
equity holdings, is as follows:
<TABLE>
<S> <C>
United Kingdom 29.1%
France 17.4
Switzerland 12.6
Italy 9.3
Netherlands 8.8
Germany 8.2
Finland 5.1
Spain 5.0
Norway 1.7
Sweden 1.5
United States 0.9
Portugal 0.4
-----
100.0%
=====
</TABLE>
<TABLE>
<S>
<C>
(b) At October 31, 2000, the net unrealized gain on investments based on cost
for federal income tax purposes of $418,374,392 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost
$136,809,643
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value
(48,822,345)
------------
Net unrealized gain
$ 87,987,298
============
(c) As of October 31, 2000, the Fund had a capital loss carryforward of
$5,276,444, which will expire in 2008 if not utilized.
</TABLE>
Purchases and sales of securities (excluding temporary cash investments)
for the
year ended October 31, 2000, aggregated $276,165,545 and $242,108,401,
respectively.
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
Pioneer Europe Fund
BALANCE SHEET 10/31/00
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash
investment of $24,044,000) (cost $418,200,764) $506,361,690
Cash 28
Foreign currency, at value 1,534,756
Receivables -
Investment securities sold 2,014,231
Fund shares sold 10,277,971
Dividends, interest and foreign taxes withheld 634,030
Other 63,767
-------------
Total assets $520,886,473
-------------
LIABILITIES:
Payables -
Investment securities purchased $ 3,900,961
Fund shares repurchased 1,257,947
Forward foreign currency settlement contracts - net 21,652
Due to affiliates 755,366
Accrued expenses 235,793
-------------
Total liabilities $ 6,171,719
-------------
NET ASSETS:
Paid-in capital $432,053,748
Accumulated undistributed net investment income 21,652
Accumulated net realized loss on investments and foreign
currency transactions
(5,450,072)
Net unrealized gain on investments 88,160,926
Net unrealized loss on forward foreign currency contracts
and other assets and liabilities denominated in
foreign currencies
(71,500)
-------------
Total net assets $514,714,754
=============
NET ASSET VALUE PER SHARE:
Class A (based on $314,781,421/9,611,222 shares) $ 32.75
=============
Class B (based on $150,435,858/4,844,160 shares) $ 31.06
=============
Class C (based on $46,544,118/1,504,057 shares) $ 30.95
=============
Class Y (based on $2,953,357/88,994 shares) $ 33.19
=============
MAXIMUM OFFERING PRICE:
Class A $ 34.75
=============
</TABLE>
16 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer Europe Fund
STATEMENT OF OPERATIONS
For the Year Ended 10/31/00
<TABLE>
<S> <C>
<C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $517,262) $ 5,232,111
Interest 1,261,566
-----------
Total investment income
$ 6,493,677
-----------
EXPENSES:
Management fees $ 5,180,080
Transfer agent fees
Class A 771,053
Class B 543,805
Class C 143,826
Class Y 685
Distribution fees
Class A 838,271
Class B 1,737,752
Class C 509,573
Administrative fees 137,252
Custodian fees 367,074
Registration fees 121,768
Professional fees 61,434
Printing 74,724
Fees and expenses of nonaffiliated trustees 31,946
Miscellaneous 9,020
-----------
Total expenses
$10,528,263
Less fees paid indirectly
(95,803)
-----------
Net expenses
$10,432,460
-----------
Net investment loss
$(3,938,783)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments $(5,450,072)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (176,678)
$(5,626,750)
-----------
-----------
Change in net unrealized gain from:
Investments $31,155,902
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (87,494)
$31,068,408
-----------
-----------
Net gain on investments and foreign currency
transactions
$25,441,658
-----------
Net increase in net assets resulting from
operations
$21,502,875
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Pioneer Europe Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended 10/31/00 and 10/31/99
<TABLE>
<CAPTION>
Year Ended
Year Ended
10/31/00
10/31/99
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (3,938,783)
$ 64,643
Net realized gain (loss) on investments
and foreign currency transactions (5,626,750)
16,304,327
Change in net unrealized gain on investments
and foreign currency transactions 31,068,408
25,007,483
------------
------------
Net increase in net assets resulting
from operations $ 21,502,875
$ 41,376,453
------------
------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.00 and $0.09 per share, respectively) $ (14,780)
$ (1,013,262)
Class Y ($0.00 and $0.04 per share, respectively) (344)
(9,758)
Net realized gain:
Class A ($1.11 and $0.73 per share, respectively) (9,227,766)
(7,894,337)
Class B ($1.11 and $0.73 per share, respectively) (4,718,179)
(3,614,535)
Class C ($1.11 and $0.73 per share, respectively) (1,546,249)
(1,071,435)
Class Y ($1.11 and $0.73 per share, respectively) (214,866)
(191,688)
------------
------------
Total distributions to shareowners $(15,722,184)
$(13,795,015)
------------
------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $654,852,723
$710,992,780
Reinvestment of distributions 13,588,676
10,819,404
Cost of shares repurchased (607,100,393)
(799,643,032)
------------
------------
Net increase (decrease) in net assets resulting
from Fund share transactions $ 61,341,006
$(77,830,848)
------------
------------
Net increase (decrease) in net assets $ 67,121,697
$(50,249,410)
NET ASSETS:
Beginning of year 447,593,057
497,842,467
------------
------------
End of year (including accumulated net investment
income (loss) of $21,652 and $(1,924),
respectively) $514,714,754
$447,593,057
============
============
</TABLE>
18 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer Europe Fund
<TABLE>
<CAPTION>
'00 Shares '00 Amount '99
Shares '99 Amount
<S> <C> <C> <C>
<C>
CLASS A
Shares sold 14,125,954 $ 509,409,078
16,523,710 $ 504,349,032
Reinvestment of distributions 253,765 8,223,595
224,356 6,892,212
Less shares repurchased (13,235,358) (478,649,390)
(18,838,071) (576,240,562)
----------- --------------
----------- --------------
Net increase (decrease) 1,144,361 $ 38,983,283
(2,090,005) $ (64,999,318)
=========== ==============
=========== ==============
CLASS B
Shares sold 2,407,123 $ 89,500,182
2,086,760 $ 61,633,662
Reinvestment of distributions 129,890 4,023,979
102,586 3,040,634
Less shares repurchased (1,950,746) (68,939,374)
(2,639,051) (77,154,350)
----------- --------------
----------- --------------
Net increase (decrease) 586,267 $ 24,584,787
(449,705) $ (12,480,054)
=========== ==============
=========== ==============
CLASS C
Shares sold 1,594,382 $ 54,395,241
4,935,240 $ 144,141,809
Reinvestment of distributions 36,484 1,125,892
23,208 685,112
Less shares repurchased (1,566,045) (53,306,764)
(4,888,732) (143,228,740)
----------- --------------
----------- --------------
Net increase 64,821 $ 2,214,369
69,716 $ 1,598,181
=========== ==============
=========== ==============
CLASS Y
Shares sold 41,193 $ 1,548,222
28,302 $ 868,277
Reinvestment of distributions 6,580 215,210
6,534 201,446
Less shares repurchased (154,344) (6,204,865)
(98,056) (3,019,380)
----------- --------------
----------- --------------
Net decrease (106,571) $ (4,441,433)
(63,220) $ (1,949,657)
=========== ==============
=========== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
Pioneer Europe Fund
FINANCIAL HIGHLIGHTS 10/31/00
<TABLE>
<CAPTION>
Year
Ended Year Ended
10/31/00 10/31/99
<S> <C>
<C>
CLASS A
Net asset value, beginning of year $
31.71 $ 29.87
--------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $
(0.15) $ 0.12
Net realized and unrealized gain on investments
and foreign currency transactions
2.30 2.54
--------- --------
Net increase from investment operations $
2.15 $ 2.66
Distributions to shareowners:
Net investment income
(0.00)(a) (0.09)
Net realized gain
(1.11) (0.73)
--------- --------
Net increase in net asset value $
1.04 $ 1.84
--------- --------
Net asset value, end of year $
32.75 $ 31.71
========= ========
Total return*
6.83% 9.01%
Ratio of net expenses to average net assets+
1.54% 1.63%
Ratio of net investment income (loss) to average net assets+
(0.39)% 0.29%
Portfolio turnover rate
46% 60%
Net assets, end of year (in thousands) $
314,781 $268,446
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses
1.54% 1.63%
Net investment income (loss)
(0.39)% 0.29%
Ratios assuming waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses
1.52% 1.62%
Net investment income (loss)
(0.37)% 0.30%
<CAPTION>
Year Ended
Year Ended Year Ended
10/31/98
10/31/97 10/31/96
<S> <C>
<C> <C>
CLASS A
Net asset value, beginning of year $ 27.60
$ 23.25$ 21.19
--------
-------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.10
$ 0.04 $ 0.11
Net realized and unrealized gain on investments
and foreign currency transactions 3.72
6.11 3.38
--------
-------- -------
Net increase from investment operations $ 3.82
$ 6.15 $ 3.49
Distributions to shareowners:
Net investment income -
(0.22) -
Net realized gain (1.55)
(1.58) (1.43)
--------
-------- -------
Net increase in net asset value $ 2.27
$ 4.35 $ 2.06
--------
-------- -------
Net asset value, end of year $ 29.87
$ 27.60 $ 23.25
========
======== =======
Total return* 14.51%
28.30% 17.80%
Ratio of net expenses to average net assets+ 1.54%
1.78% 1.94%
Ratio of net investment income (loss) to average net assets+ 0.47%
0.19% 0.57%
Portfolio turnover rate 39%
32% 56%
Net assets, end of year (in thousands) $315,309
$152,267 $99,915
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.54%
1.78% 2.00%
Net investment income (loss) 0.47%
0.19% 0.51%
Ratios assuming waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 1.49%
1.77% 1.93%
Net investment income (loss) 0.52%
0.20% 0.58%
</TABLE>
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
year,
reinvestment of all distributions, the complete redemption of the
investment
at net asset value at the end of each year, and no sales charges. Total
return would be reduced if sales charges were taken into account.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
Pioneer Europe Fund
FINANCIAL HIGHLIGHTS 10/31/00
<TABLE>
<CAPTION>
Year Ended Year
Ended Year Ended Year Ended Year Ended
10/31/00
10/31/99 10/31/98(a) 10/31/97 10/31/96
<S> <C> <C>
<C> <C> <C>
CLASS B
Net asset value, beginning of year $ 30.38 $
28.79 $ 26.88 $ 22.74 $ 20.92
--------
-------- -------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.40) $
(0.18) $ (0.09) $ (0.10) $ (0.04)
Net realized and unrealized gain on investments
and foreign currency transactions 2.19
2.50 3.55 5.93 3.29
--------
-------- -------- ------- -------
Net increase from investment operations $ 1.79 $
2.32 $ 3.46 $ 5.83 $ 3.25
Distributions to shareowners:
Net investment income -
- - (0.11) -
Net realized gain (1.11)
(0.73) (1.55) (1.58) (1.43)
--------
-------- -------- ------- -------
Net increase in net asset value $ 0.68 $
1.59 $ 1.91 $ 4.14 $ 1.82
--------
-------- -------- ------- -------
Net asset value, end of year $ 31.06 $
30.38 $ 28.79 $ 26.88 $ 22.74
========
======== ======== ======= =======
Total return* 5.90%
8.12% 13.50% 27.35% 16.82%
Ratio of net expenses to average net assets+ 2.37%
2.48% 2.35% 2.57% 2.76%
Ratio of net investment loss to average net assets+ (1.21)%
(0.52)% (0.34)% (0.55)% (0.23)%
Portfolio turnover rate 46%
60% 39% 32% 56%
Net assets, end of year (in thousands) $150,436
$129,336 $135,535 $42,472 $20,228
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 2.37%
2.48% 2.35% 2.57% 2.80%
Net investment loss (1.21)%
(0.52)% (0.34)% (0.55)% (0.27)%
Ratios assuming waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 2.36%
2.47% 2.31% 2.55% 2.74%
Net investment loss (1.20)%
(0.51)% (0.30)% (0.53)% (0.21)%
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the year presented.
* Assumes initial investment at net asset value at the beginning of each
year,
reinvestment of all distributions, the complete redemption of the
investment
at net asset value at the end of each year, and no sales charges. Total
return would be reduced if sales charges were taken into account.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
Pioneer Europe Fund
FINANCIAL HIGHLIGHTS 10/31/00
<TABLE>
<CAPTION>
Year Ended Year
Ended Year Ended Year Ended 1/31/96 to
10/31/00
10/31/99 10/31/98(a) 10/31/97(a) 10/31/96
<S> <C> <C>
<C> <C> <C>
CLASS C
Net asset value, beginning of period $ 30.27 $
28.67 $ 26.73 $ 22.69 $ 19.92
-------
------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.39) $
(0.13) $ (0.04) $ (0.12) $ -
Net realized and unrealized gain on investments
and foreign currency transactions 2.18
2.46 3.53 5.94 2.77
-------
------- ------- ------- -------
Net increase from investment operations $ 1.79 $
2.33 $ 3.49 $ 5.82 $ 2.77
Distributions to shareowners:
Net investment income -
- - (0.20) -
Net realized gain (1.11)
(0.73) (1.55) (1.58) -
-------
------- ------- ------- -------
Net increase in net asset value $ 0.68 $
1.60 $ 1.94 $ 4.04 $ 2.77
-------
------- ------- ------- -------
Net asset value, end of period $ 30.95 $
30.27 $ 28.67 $ 26.73 $ 22.69
=======
======= ======= ======= =======
Total return* 5.93%
8.19% 13.70% 27.47% 13.91%
Ratio of net expenses to average net assets+ 2.34%
2.42% 2.28% 2.49% 2.74%**
Ratio of net investment loss to average net assets+ (1.19)%
(0.44)% (0.20)% (0.52)% (0.00)%**
Portfolio turnover rate 46%
60% 39% 32% 56%
Net assets, end of period (in thousands) $46,544
$43,559 $39,261 $ 6,266 $ 1,175
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 2.34%
2.42% 2.28% 2.49% 2.75%**
Net investment loss (1.19)%
(0.44)% (0.20)% (0.52)% (0.01)%**
Ratios assuming waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 2.33%
2.40% 2.22% 2.46% 2.71%**
Net investment loss (1.18)%
(0.42)% (0.14)% (0.49)% 0.03%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* 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.
22
<PAGE>
Pioneer Europe Fund
FINANCIAL HIGHLIGHTS 10/31/00
<TABLE>
<CAPTION>
Year Ended Year
Ended 7/2/98 to
10/31/00(a)
10/31/99 10/31/98
<S> <C> <C>
<C>
CLASS Y
Net asset value, beginning of period $31.97
$29.90 $ 34.63
------
------ -------
Increase (decrease) from investment operations:
Net investment income $ - $
0.35 $ 0.07
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions 2.33
2.49 (4.80)
------
------ --------
Net increase (decrease) from
investment operations $ 2.33 $
2.84 $ (4.73)
Distributions to shareowners:
Net investment income (0.00)(b)
(0.04) -
Net realized gain (1.11)
(0.73) -
------
------ -------
Net increase (decrease) in net asset value $ 1.22 $
2.07 $ (4.73)
------
------ -------
Net asset value, end of period $33.19
$31.97 $ 29.90
======
====== =======
Total return* 7.35%
9.59% (13.66)%
Ratio of net expenses to average net assets+ 1.08%
1.12% 1.12%**
Ratio of net investment income (loss) to
average net assets+ (0.01)%
0.90% 0.95%**
Portfolio turnover rate 46%
60% 39%
Net assets, end of period (in thousands) $2,953
$6,252 $ 7,738
Ratios assuming reduction for fees paid
indirectly:
Net expenses 1.07%
1.12% 1.11%**
Net investment income (loss) (0.00)%
0.90% 0.96%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
(b) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption
of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
Pioneer Europe Fund
NOTES TO FINANCIAL STATEMENTS 10/31/00
1. Organization and Significant Accounting Policies
Pioneer Europe Fund (the Fund) is a Massachusetts 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 four classes of shares - Class A, Class B, Class C, and
Class Y
shares. Each class of shares represents an interest in the same portfolio of
investments of the Fund and have equal rights to voting, redemptions,
dividends
and liquidation, except that the level of transfer agent and distribution fees
may differ among classes. Class A, Class B and Class C shareowners have
exclusive voting rights with respect to the distribution plan for each class.
There is no distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with
accounting
principles generally accepted in the United States that require the management
of the Fund to, among other things, make estimates and assumptions that affect
the reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements, and the
reported
amounts of revenues and expenses during the reporting periods. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Fund, which are in conformity
with those generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset
value is
computed once daily, on each day the New York Stock Exchange is open,
as of
the close of regular trading on the Exchange. In computing the net asset
value, securities are valued at the last sale price on the principal
exchange where they are traded. Securities that have not traded on the
date
of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are
valued
at their fair values as determined by, or under the direction of, the
Board
of Trustees. Trading in foreign securities is substantially completed each
day at various times prior to the close of the New York Stock
24
<PAGE>
Pioneer Europe Fund
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,
including interest on income bearing cash accounts, 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
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.
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
25
<PAGE>
Pioneer Europe Fund
NOTES TO FINANCIAL STATEMENTS 10/31/00 (continued)
these contracts from the potential inability of counterparties to meet the
terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar.
As of October 31, 2000, the Fund had no outstanding portfolio hedges. The
Fund's gross forward foreign currency settlement contracts receivable and
payable were $352,355 and $374,007, respectively, resulting in a net
payable
of $21,652 as of October 31, 2000.
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
shareowners. Therefore, no federal income tax provision is required.
The characterization of distributions to shareowners 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 October 31, 2000 the Fund reclassified $3,977,483 and $178,036 from
paid-in capital to accumulated net investment loss and accumulated
undistributed net realized loss 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.
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 a wholly owned subsidiary of UniCredito Italiano S.p.A.
(UniCredito
Italiano), earned $11,472 in underwriting commissions on the sale of fund
shares during the year ended October 31, 2000.
26
<PAGE>
Pioneer Europe Fund
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. Class Y shares are not subject to a distribution plan.
Shareowners 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 shareowners 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, Class C, and Class Y shares can bear
different
transfer agent and distribution fees.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned subsidiary of UniCredito
Italiano. 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.
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 October 31, 2000, $417,651 was payable
to PIM
related to management fees, administrative fees and certain other services.
3. Transfer Agent
PSC, a wholly owned subsidiary of UniCredito Italiano, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
Included in due to affiliates is $107,844 in transfer agent fees payable
to PSC
at October 31, 2000.
27
<PAGE>
Pioneer Europe Fund
NOTES TO FINANCIAL STATEMENTS 10/31/00 (continued)
4. Distribution Plans
The Fund adopted Plans of Distribution with respect to Class A, Class B and
Class C shares (Class A Plan, Class B Plan and Class C Plan) in accordance
with
Rule 12b-1 of the Investment Company Act of 1940. Pursuant to the Class A
Plan,
the Fund pays PFD a service fee of up to 0.25% of the average daily net assets
attributable to Class A shares in reimbursement of its actual expenditures to
finance activities primarily intended to result in the sale of Class A shares.
Pursuant to the Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of
the average daily net assets attributable to each class of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Included
in due
to affiliates is $229,871 in distribution fees payable to PFD at October 31,
2000.
In addition, redemptions of each class of shares (except Class Y 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 October 31, 2000,
CDSCs in the amount of $752,392 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 October 31,
2000, the
Fund's expenses were reduced by $95,803 under such arrangements.
28
<PAGE>
Pioneer Europe Fund
6. Line of Credit Facility
The Fund, along with certain other Funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $50 million committed, unsecured
revolving
line of credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of $50 million or the
limits set
by its prospectus for borrowings. Interest on collective borrowings of up
to $25
million is payable at the Federal Funds Rate plus 3/8% on an annualized basis,
or at the Federal Funds Rate plus 1/2% if the borrowing exceeds $25 million at
any one time. The Funds pay an annual commitment fee for this facility. The
commitment fee is allocated among such Funds based on their respective
borrowing
limits.
The average daily amount of borrowings outstanding during the year ended
October
31, 2000 was $14,656. The average daily shares outstanding during the period
were 15,517,031 resulting in an average borrowing per share of less than one
cent per share. The related weighted average annualized interest rate for the
period was 6.375%, and the total interest expense on such borrowings was $950.
29
<PAGE>
Pioneer Europe Fund
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareowners and the Board of Trustees
of Pioneer Europe Fund:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Europe Fund as of October 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 auditing standards generally
accepted
in the United States. 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 October 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 Europe Fund as of October 31, 2000, the results of its operations, the
changes in its net assets, and the financial highlights for the periods
presented, in conformity with accounting principles generally accepted in the
United States.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
December 5, 2000
30
<PAGE>
Pioneer Europe Fund
RESULTS OF SHAREOWNER MEETING
On September 11, 2000, Pioneer Europe Fund held a special meeting of
shareowners
to approve a new management contract between the Fund and Pioneer Investment
Management, Inc., the Fund's investment adviser. Shareowners also voted to
elect
trustees. Both proposals passed by shareowner vote. The new management
contract
took effect when UniCredito Italiano S.p.A. completed its acquisition of The
Pioneer Group, Inc. on October 24, 2000. Here are the detailed results of the
votes.
Proposal 1 - To approve a new management contract.
<TABLE>
<CAPTION>
Affirmative Against Abstain
<S> <C> <C>
11,948,857.947 333,402.072 229,685.641
</TABLE>
Proposal 2 - To elect Trustees.
<TABLE>
<CAPTION>
Nominee Affirmative Withheld
<S> <C> <C>
M.K. Bush 12,258,907.726 253,037.934
J.F. Cogan, Jr. 12,254,889.623 257,056.037
Dr. R. H. Egdahl 12,260,964.428 250,981.232
M.B.W. Graham 12,265,448.704 246,496.956
M.A. Piret 12,267,607.998 244,337.662
D.D. Tripple 12,259,608.241 252,337.419
S.K. West 12,259,041.442 252,904.218
J. Winthrop 12,267,372.851 244,572.809
</TABLE>
31
<PAGE>
Pioneer Europe Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr., Chairman John F. Cogan, Jr., President
Mary K. Bush David D. Tripple, Executive Vice President
Richard H. Egdahl, M.D. Vincent Nave, Treasurer
Margaret B.W. Graham Joseph P. Barri, Secretary
Marguerite A. Piret
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
32
<PAGE>
THE PIONEER FAMILY OF MUTUAL FUNDS
For information about any Pioneer mutual fund, please contact your investment
professional, or call Pioneer at 1-800-225-6292. Ask for a free fund
information
kit, which includes a fund prospectus. Please read the prospectus carefully
before you invest or send money.
Growth Funds
United States
Pioneer Growth Shares
Pioneer Micro-Cap Fund
Pioneer Mid-Cap Fund
Pioneer Mid-Cap Value Fund
Pioneer Science & Technology Fund
Pioneer Small Company Fund
Pioneer Tax-Managed Fund
International/Global
Pioneer Emerging Markets Fund
Pioneer Europe Fund
Pioneer Indo-Asia Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Fund
Pioneer II
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Real Estate Shares
Income Funds
Taxable
Pioneer America Income Trust
Pioneer Bond Fund
Pioneer High Yield Fund
Pioneer Limited Maturity Bond Fund
Pioneer Strategic Income Fund
Tax-Free
Pioneer Tax-Free Income Fund
Money Market Fund
Pioneer Cash Reserves Fund*
*An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1 per share, it is possible to
lose money by investing in the Fund.
33
<PAGE>
RETIREMENT PLANS FROM PIONEER
Pioneer has a long history of helping people work toward their retirement
goals,
offering plans suited to the individual investor and businesses of all sizes.
For more information on Pioneer retirement plans, contact your investment
professional, or call Pioneer at 1-800-622-0176.
Individual Plans
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 70-1/2 with
earned
income to contribute up to $2,000 annually. Spouses may contribute up to
$2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
The Roth IRA came about as part of the Taxpayer Relief Act of 1997 and became
available to investors in 1998. Contributions, up to $2,000 a year, are not
tax-deductible, but earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $10,500 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match PLan for Employees) IRA Plan
Businesses with 100 or fewer eligible employees can establish a plan; it
resembles a traditional 401(k), but with less testing and lower administration
costs. Employees can make pre-tax contributions of up to $6,000 per year,
and an
employer contribution is required.
34
<PAGE>
403(b) Plan
Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is available
only to
employees of public schools, not-for-profit hospitals and other tax-exempt
organizations. A 403(b) plan lets employees set aside a portion of their
salary,
before taxes, through payroll deduction.
Simplified Employee Pension Plan (SEP)
SEPs let self-employed people and small-business owners make tax-deductible
contributions of up to 15% of their income. Generally, employers must
contribute
the same percentage of pay for themselves and any eligible employees;
contributions are made directly to employees' IRAs. SEPs are easy to
administer
and can be an especially good choice for firms with few or no employees.
Profit Sharing Plan
Profit sharing plans offer companies considerable flexibility, allowing
them to
decide each year whether a contribution will be made and how much, up to
15% of
each participant's pay. These plans can include provisions for loans and
vesting
schedules.
Age-Weighted Profit Sharing Plan
Like traditional profit sharing plans, employer contributions are
flexible, but
age-weighted plans allocate contributions based on both age and salary.
Age-weighted plans are designed for employers who want to maximize their own
contributions while keeping contributions to employees affordable.
Money Purchase Pension Plan (MPP)
Money purchase plans are similar to profit-sharing plans, but allow for higher
annual contributions - up to 25% of pay. MPPs aren't as flexible as profit
sharing plans; a fixed percentage of pay must be contributed each year,
determined when the plan is established. Businesses often set up both MPPs and
profit sharing plans.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
35
<PAGE>
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
Your investment professional can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-8O0-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone(SM) 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 informa
tion,
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.
36
<PAGE>
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer
funds you
wish to invest in. You choose the amounts and dates for Pioneer to sell shares
of your original fund and use the proceeds to buy shares of the other
funds you
have chosen. Over time, your investment will be shifted out of the original
fund. (Automatic Exchange is available for originating accounts with a balance
of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set
intervals. You
decide the frequency and the day of the month you want. Pioneer will send the
proceeds by check to the address you designate, or electronically to your bank
account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available for accounts with a value of $10,000 or
more.)
37
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, propectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus.
[logo] PIONEER
Investments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, Massachusetts 02109
www.pioneerfunds.com
9445-00-1200
(Copyright) Pioneer Funds Distributor, Inc.
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