<PAGE>
[logo]
Pioneer Europe Fund
SEMIANNUAL REPORT 4/30/00
<PAGE>
Table of Contents
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 7
Schedule of Investments 10
Financial Statements 16
Notes to Financial Statements 24
Trustees, Officers and Service Providers 30
The Pioneer Family of Mutual Funds 31
Retirement Plans From Pioneer 32
Programs and Services for Pioneer Shareowners 34
</TABLE>
<PAGE>
Pioneer Europe Fund
LETTER FROM THE CHAIRMAN 4/30/00
Dear Shareowner,
--------------------------------------------------------------------------------
As you may know, on May 15, 2000 The Pioneer Group, Inc. and UniCredito Italiano
Group announced an agreement under which UniCredito is expected to purchase all
of the outstanding stock of Pioneer Group. UniCredito is Italy's second largest
banking group and has over $150 billion in assets. We are pleased to be joining
with UniCredito not only because of its reputation and breadth, but also because
of the similar business strategies shared by the two companies. UniCredito
employs many of the same investment philosophies that Pioneer has believed in
for over 70 years. In the meantime, your mutual fund will be managed by the same
portfolio management team, which is overseen by a Board of Trustees. In
addition, the union with UniCredito will give Pioneer Investment Management,
your fund's investment adviser, access to greater resources, enabling us to
strengthen and support our money management efforts for all Pioneer shareowners.
We expect that the transition resulting from the acquisition will not have a
direct impact on fund shareowners. At Pioneer we always strive to provide our
shareowners with exemplary customer service and a diverse product line. Going
forward, we will continue to work as hard as we can to ensure that our
investors' needs are met and that you are satisfied in any dealings you have
with Pioneer.
Soon you will receive a letter and a proxy statement that will contain more
information about the transaction along with information about a special
shareholder meeting. We are excited about the acquisition(which is subject to
regulatory approval)and hope you are as well. I feel confident about prospects
for the days ahead and I truly believe that Pioneer Group has entered into a
relationship that will be beneficial to you.
Please read this report closely, particularly the Portfolio Manager Discussion
with Patrick Smith. The Q&A in this section gives you the opportunity to read
about your Fund and its performance over the period covered in the report. If
you have questions, please contact your investment professional or call Pioneer
at 1-800-225-6292. You can also visit our web site at www.pioneerfunds.com for
more information.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer Europe Fund
PORTFOLIO SUMMARY 4/30/00
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[pie chart]
International Common Stocks 94.0%
Short-Term Cash Equivalents 2.2%
U.S. Common Stocks 1.9%
International Preferred Stocks 1.6%
Depositary Receipts for
International Stocks 0.3%
Geographical Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[bar chart]
United Kingdom 24.2%
France 16.1%
Germany 10.6%
Switzerland 9.6%
Netherlands 7.9%
Italy 7.7%
Finland 7.5%
Sweden 6.0%
Spain 5.0%
United States 3.0%
Norway 1.8%
Portugal 0.6%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C>
1. Nokia Oyj 5.10%
2. Vodafone AirTouch Plc 4.94
3. Dassault Systemes SA 2.57
4. TelefonaktieBolaget LM Ericsson AB (B Shares) 2.34
5. Banca Fideuram SpA 2.18
6. Banca Popolare di Brescia 2.15
7. Telefonica SA 2.05
8. Siemens AG 1.95
9. British Telecom Plc 1.90
10. Publigroupe SA 1.90
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Europe Fund
PERFORMANCE UPDATE 4/30/00 CLASS A SHARES
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 4/30/00 10/31/99
<S> <C> <C>
$38.26 $31.71
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(10/31/99 - 4/30/00) 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 April 30, 2000)
<TABLE>
<CAPTION>
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life of Fund
(4/2/91) 15.82% 15.06%
5 Years 21.32 19.89
1 Year 28.99 21.58
</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.
Growth of $10,000+
[mountain chart]
<TABLE>
<CAPTION>
Pioneer Europe Fund* MSCI Europe Index
<S> <C> <C>
4/91 9425 10000
9524 10353
4/92 10320 11139
9194 10159
10265 11308
11353 12766
4/94 12423 13775
13159 14201
13568 15051
15148 16078
4/96 16448 17450
17845 18885
19974 21107
22894 23793
4/98 30209 30709
26215 29280
27649 32445
28577 32948
4/00 35664 35687
</TABLE>
[End Mountain Chart]
+ 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 4/30/00 CLASS B SHARES
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 4/30/00 10/31/99
<S> <C> <C>
$36.46 $30.38
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(10/31/99 - 4/30/00) 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 April 30, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life of Fund
(4/4/94) 18.95% 18.95%
5 Years 20.36 20.26
1 Year 27.94 23.94
</TABLE>
* Reflects deduction of the maximum applicable contingent deferred sales charge
(CDSC) at the end of the period and assumes reinvestment of distributions. The
maximum CDSC of 4% declines over six years.
Growth of $10,000+
[mountain chart]
<TABLE>
<CAPTION>
Pioneer Europe Fund* MSCI Europe Index
<S> <C> <C>
4/94 10000 10000
10539 10309
4/95 10838 10926
12060 11672
4/96 13048 12668
14089 13709
4/97 15707 15323
17943 17272
4/98 23571 22293
20367 21256
4/99 21398 23554
22021 23919
4/00 27376 25907
</TABLE>
[End Mountain Chart]
+ 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 4/30/00 CLASS C SHARES
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 4/30/00 10/31/99
<S> <C> <C>
$36.31 $30.27
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(10/31/99 - 4/30/00) 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 April 30, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life of Fund
(1/31/96) 20.64% 20.64%
1 Year 27.99 27.99
</TABLE>
* Assumes reinvestment of distributions. The 1% contingent deferred sales charge
(CDSC) applies to investments sold within one year of purchase.
Growth of $10,000
[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
10/97 14520 14151
15559 15513
19095 18264
19567 19213
10/98 16509 17414
17850 19020
17343 19297
17036 18855
10/99 17862 19596
21391 20608
4/00 22198 21225
</TABLE>
[End Mountain Chart]
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 4/30/00 CLASS Y SHARES
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 4/30/00 10/31/99
<S> <C> <C>
$38.70 $31.97
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(10/31/99 - 4/30/00) 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 April 30, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed
<S> <C> <C>
Life of Fund
(7/2/98) 9.69% 9.69%
1 Year 29.76 29.76%
</TABLE>
* Assumes reinvestment of distributions.
Growth of $10,000+
[mountain chart]
<TABLE>
<CAPTION>
Pioneer Europe Fund* MSCI Europe Index
<S> <C> <C>
7/98 10000 10000
8436 8742
7822 8392
10/98 8458 9064
8778 9546
9133 9963
9173 9899
8733 9648
8744 9753
4/99 8942 10044
8646 9562
8776 9723
8814 9814
8907 9914
8892 9837
10/99 9269 10199
9941 10475
11494 11548
11143 10726
13041 11285
12660 11557
4/00 11602 11047
</TABLE>
[End Mountain Chart]
+ 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 4/30/00
Driven primarily by technology, media and telecommunications stocks, your Fund
delivered strong results for the six months ended April 30, 2000. A storm of
investor fears made for choppy seas in the later weeks of the period, but the
Fund's considerable headway in the early months enabled it to post stellar
gains. In the following discussion, portfolio manager Patrick M. Smith discusses
the factors that influenced your Fund's performance.
Q: Did the spring correction in technology, media and telecommunications stocks
have much of an impact on the Fund's performance?
A: The sharp sell-off in these sectors, which began in mid-March, did erode
some of the gains achieved up to that point. However, the correction, which
was brought on by investors' concerns about lofty valuations and profit
expectations, only dimmed what was ultimately a very successful six-month
period.
Financial stocks, another significant area of investment for your Fund,
succumbed to the pressure of rising interest rates. However, our decision to
entirely avoid the retail, automobile, steel and paper sectors allowed the
Fund to completely sidestep these poorly performing industries.
The impact of these crosscurrents was overwhelmingly positive. Class A, B
and C shares delivered returns of 24.80%, 24.32% and 24.27%, respectively,
at net asset value - surpassing the 8.31% return for the Morgan Stanley
Capital International (MSCI) Europe Index for the six months ended April 30,
2000. The Fund's performance also exceeded the 21.51% average return for the
161 European regional funds tracked by Lipper, Inc. (Lipper is an
independent firm that tracks mutual fund performance.)
Q: Will technology, media and telecommunications investments continue to play a
dominant role in the Fund's strategy?
A: There is no question in my mind. The pivotal role of technology, media and
telecommunications investments cannot be understated. Despite the recent
correction in prices, the computer hardware and software, telecommunications
equipment, media and telecommunications services sectors, as measured by the
Bloomberg European 500 Index, climbed 60%, 90%, 70% and 30%, respectively,
for the six months ended April 30, 2000.
7
<PAGE>
Pioneer Europe Fund
PORTFOLIO MANAGEMENT DISCUSSION 4/30/00 (continued)
We are in the midst of a technological renaissance, and we believe prospects
for tomorrow are just as bright as they are today. Yes, technology stocks by
their very nature can experience wide price swings. However, in our
estimation, the long-term benefits far outweigh any short-term volatility.
We'll proceed cautiously but generally view the pull-back in stock prices as
an opportunity to add to existing positions.
Q: Which companies are most attractive in these sectors?
A: Opportunities abound; however, we are very excited about the communications
sector - both wireless and traditional fixed-wire. Fund holdings Telecom
Italia Mobile, Sonera Group (Finland) and Libertel (Netherlands) are
recognized cellular network carriers with a significant share in their
respective markets. Another holding, Vodafone AirTouch (UK), is the world's
leading mobile communications company offering voice, messaging, paging and
data services. The company recently announced the renaming of its coast to
coast service to Verizon. In addition to Bell Atlantic in the United States
it also holds stakes in wireless carriers in 23 countries. While we are
still quite positive about prospects for the company, its stock has dropped
in recent months as it absorbs the cost of its purchase of German-based
Mannesmann and new licensing fees for next-generation technology.
In the equipment industry, wireless technology leaders Nokia (Finland) and
TelefonaktieBolaget LM Ericsson (Sweden) equally climbed 123% in U.S.
dollars for the period. These two companies, which rank among the Fund's
largest holdings, have strong market share and are well on their way in the
development of next-generation cellular hardware designed to transmit data
across the wireless platform.
We are also emphasizing fixed-wire companies that are focused on
high-bandwidth data transmission. Colt Telecom Group (UK) and Equant
(France), both newly acquired during the period, and Global Telesystems
Group (a U.S.-based company that derives 100% of its revenues from Europe)
are telephone operators helping businesses speed the flow of information
across the Internet.
8
<PAGE>
Pioneer Europe Fund
Q: Is software still a big theme for the Fund?
A: Yes. With Y2K concerns behind them, software companies offer bright promise
as companies big and small retool for Internet business. Companies providing
software and information-technology services should profit from increased
corporate spending on technology and the increasing motivation to outsource
important services. Several Fund holdings are well positioned to benefit
from this opportunity. Framtidsfabriken (Sweden) and TJ Group (Finland)
offer the expertise to help build web sites on the Internet. Intershop
Communications (Germany) and Brokat Infosystems (Germany) provide e-commerce
software.
Q: Within the financial sector, did asset managers fare better than banks?
A: Yes, asset mangers did very well during the six months - helped in large
part by the success of the region's rising stock markets. Fund holdings
Banca Fideuram (Italy) and Marschillek Lautenschlaeger und Patner (Germany)
delivered triple digit returns. These stunning results helped to stem the
deleterious effect of rising interest rates on banking institutions. Lloyds
TSB Group (UK), Royal Bank of Scotland, Zurich Allied (Switzerland) and
Fortis (Netherlands) turned in negative performance for the six months.
Q: What is your outlook?
A: Weaker-than-expected growth, political turmoil in Italy and the tensions
between Austria and the European Union all took a toll on investor
confidence in the euro during the reporting period. However, inflation
remains under control, despite rising oil prices and the weaker euro. The
European Central Bank's preemptive efforts to raise interest rates should
help to strengthen the currency and dispel any inflationary tendencies in
the region's economy. Overall, we're optimistic about Europe's economic
growth potential and fully anticipate steady improvement, which would
ultimately improve investors' outlook and invite more investment in the
region's stock markets. Investors should keep in mind that investing in
non-U.S. securities involves special risks, including, but not limited to,
currency fluctuations and social and economic instability.
9
<PAGE>
Pioneer Europe Fund
SCHEDULE OF INVESTMENTS 4/30/00 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 97.8%
PREFERRED STOCK - 1.6%
16,000 Sap AG $ 9,440,606
------------
Total Preferred Stock
(Cost $5,770,702) $ 9,440,606
------------
COMMON STOCKS - 96.2%
Basic Materials - 1.5%
Chemicals (Diversified) - 1.5%
157,846 Aventis SA* $ 8,717,504
------------
Total Basic Materials $ 8,717,504
------------
Capital Goods - 3.3%
Machinery (Diversified) - 2.0%
1,568,000 Invensys Plc $ 7,570,691
63,701 Sidel SA (Bearer Shares) 3,987,536
------------
$ 11,558,227
------------
Manufacturing (Specialized) - 1.3%
1,200,000 Pirelli SpA $ 2,876,946
227,300 Tomra Systems ASA 4,700,744
------------
$ 7,577,690
------------
Total Capital Goods $ 19,135,917
------------
Communication Services - 16.8%
Cellular/Wireless Telecommunications - 6.9%
154,400 Libertel NV* $ 2,711,281
130,000 Sonera Group Plc 7,179,628
570,000 Telecom Italia Mobile SpA 2,245,601
6,156,487 Vodafone AirTouch Plc 28,190,842
------------
$ 40,327,352
------------
Telecommunications (Long Distance) - 1.7%
174,650 Colt Telecom Group Plc* $ 7,766,091
45,900 KPNQwest NV* 1,908,529
------------
$ 9,674,620
------------
Telephone - 8.2%
606,904 British Telecom Plc $ 10,870,402
606,700 Global Telesystems Group, Inc.* 8,835,069
100,000 Koninklijke KPN NV 10,085,690
8,000 Swisscom AG (Registered) 2,823,147
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Europe Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Telephone - (continued)
400,000 Telecom Italia Mobile SpA $ 3,821,371
524,687 Telefonica SA* 11,686,423
-----------
$48,122,102
-----------
Total Communication Services $98,124,074
-----------
Consumer Cyclicals - 4.6%
Services (Advertising/Marketing) - 1.9%
14,036 Publigroupe SA $10,835,150
-----------
Services (Commercial & Consumer) - 2.7%
1,206 Kuoni Reisen Holding AG (Series B) (Registered) $ 5,228,870
141,700 TNT Post Group NV 3,094,219
76,454 Vivendi 7,568,311
-----------
$15,891,400
-----------
Total Consumer Cyclicals $26,726,550
-----------
Consumer Staples - 7.8%
Broadcasting (Television/Radio/Cable) - 3.1%
35,000 Canal Plus $ 6,751,089
11,650 NDS Group Plc (A.D.R.)* 658,225
45,300 PT Multimedia Servicos* 3,163,345
70,000 Sogecable* 2,964,747
132,600 United Pan-Europe Communications NV* 4,829,464
-----------
$18,366,870
-----------
Entertainment - 1.2%
210,000 Pearson Plc $ 7,107,335
-----------
Foods - 0.6%
16,000 Groupe Danone $ 3,501,104
-----------
Restaurants - 1.0%
420,400 Compass Group Plc $ 6,056,646
-----------
Retail Stores (Food Chains) - 0.7%
60,000 Carrefour Supermarch SA $ 3,908,717
-----------
Services (Employment) - 1.2%
8,129 Adecco SA $ 6,676,263
-----------
Total Consumer Staples $45,616,935
-----------
Energy - 4.1%
Oil (International Integrated) - 1.7%
1,200,000 Shell Transport & Trading Co. $ 9,835,606
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Europe Fund
SCHEDULE OF INVESTMENTS 4/30/00 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Oil & Gas (Refining & Marketing) - 2.4%
725,000 ENI SpA $ 3,608,239
69,148 Total Fina Elf SA 10,500,400
------------
$ 14,108,639
------------
Total Energy $ 23,944,245
------------
Financial - 20.2%
Banks (Major Regional) - 7.5%
835,000 Banca Fideuram SpA $ 12,459,489
535,760 Banca Popolare di Brescia 12,282,978
135,000 Banco Santander Central Hispano SA 5,591,182
2,900 Deutsche Pfandbriefbank AG 3,035,042
29,520 Julius Baer Holding AG 10,149,748
------------
$ 43,518,439
------------
Banks (Money Center) - 2.8%
900,000 Lloyds TSB Group Plc $ 8,788,967
498,100 Royal Bank of Scotland Group 7,773,418
------------
$ 16,562,385
------------
Financial (Diversified) - 2.9%
240,900 Fortis NV $ 6,062,600
16,300 Marschillek Lautenschlaeger Und Patner AG 2,508,002
37,000 Lagardere SCA 8,631,385
------------
$ 17,201,987
------------
Insurance (Life/Health) - 1.9%
395,000 Mediolanum SpA $ 6,558,883
280,000 Prudential Corp. Plc 4,356,636
------------
$ 10,915,519
------------
Insurance (Multi-Line) - 1.6%
38,000 Axa SA $ 5,639,070
8,000 Zurich Allied AG 3,403,563
------------
$ 9,042,633
------------
Insurance (Property/Casualty) - 1.5%
179,900 Skandia Forsakrings AB $ 8,619,287
------------
Investment Banking/Brokerage - 0.4%
22,700 Consors Discount Broker AG* $ 2,540,393
------------
Investment Management - 1.6%
635,000 Amvescap Plc $ 9,296,711
------------
Total Financial $117,697,354
------------
</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 - 9.5%
Biotechnology - 1.8%
51,935 Celltech Chiroscience Plc* $ 857,420
67,000 Qiagen NV* 9,686,539
-----------
$10,543,959
-----------
Healthcare (Drugs/Major Pharmaceuticals) - 6.0%
300,000 Glaxo Wellcome Plc $ 9,274,906
4,700 Novartis AG 6,571,652
900 Roche Holdings AG 9,407,975
710,000 Smithkline Beecham Plc 9,731,254
-----------
$34,985,787
-----------
Healthcare (Medical Products/Supplies) - 1.7%
1,451,980 Biora AB+* $ 8,756,636
133,000 Biora AB (A.D.R.)+* 1,363,250
-----------
$10,119,886
-----------
Total Healthcare $55,649,632
-----------
Technology - 27.0%
Communications Equipment - 8.1%
20,400 Alcatel SA $ 4,733,041
508,000 Nokia Oyj 29,118,846
150,000 TelefonaktieBolaget LM Ericsson AB (B Shares) 13,351,575
-----------
$47,203,462
-----------
Computers (Hardware) - 0.6%
40,000 JumPtec Industrielle Computertechnik AG* $ 3,803,174
-----------
Computers (Networking) - 2.2%
79,580 Equant NV* $ 6,165,361
14,700 Intershop Communications AG* 6,533,589
-----------
$12,698,950
-----------
Computers (Software & Services) - 9.5%
66,850 Autonomy Corporation Plc* $ 8,891,050
54,450 Brokat Infosystems AG* 6,638,540
25,000 Cap Gemini SA 4,913,191
190,591 Dassault Systemes SA 14,670,424
144,000 Framtidsfabriken AB* 2,364,083
17,050 GFT Technologies AG* 2,714,766
60,000 Lernout & Hauspie Speech RPO* 5,805,000
70,000 Ser System AG 2,936,087
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Europe Fund
SCHEDULE OF INVESTMENTS 4/30/00 (unaudited) (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Software & Services) - (continued)
85,000 Tietonator Corp. (B Shares)* $ 4,033,139
355,400 TJ Group Oyj* 2,328,197
------------
$ 55,294,477
------------
Electronics (Component Distributors) - 2.2%
100,000 NXT Plc* $ 1,837,849
75,000 Siemens AG 11,122,919
------------
$ 12,960,768
------------
Electronics (Semiconductors) - 1.4%
42,900 Infineon Technologies AG* $ 2,956,718
27,000 STMicroelectronics NV 5,156,394
------------
$ 8,113,112
------------
Services (Computer Systems) - 1.7%
35,000 Ingenico, Inc. $ 3,461,525
112,900 Getronics NV 6,738,569
------------
$ 10,200,094
------------
Services (Data Processing) - 1.3%
120,800 Infonet Services Corp.* $ 2,038,500
772,220 Merkantildata ASA 5,308,985
------------
$ 7,347,485
------------
Total Technology $157,621,522
------------
Utilities - 1.4%
Electric Companies - 1.4%
440,000 Union Electrica Fenosa SA $ 8,435,039
------------
Total Utilities $ 8,435,039
------------
Total Common Stocks
(Cost $423,324,913) $561,668,772
------------
WARRANTS - 0.0%
5,000 Banca Popolare di Bergamo, 3/31/04* $ 90,576
------------
Total Warrants
(Cost $74,392) $ 90,576
------------
TOTAL INVESTMENT IN SECURITIES - 97.8%
(Cost $429,170,007)(a) $571,199,954
------------
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Europe Fund
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 2.2%
Commercial Paper - 2.2%
$12,866,000 CitiCorp Inc., 6.0%, 5/4/00 $ 12,866,000
-------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $12,866,000) $ 12,866,000
-------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $442,036,007)(b) $ 584,065,954
=============
</TABLE>
* Non-income producing security.
+ Investment held by Fund representing 5% or more of the outstanding voting
stock of such company.
(a) Distribution of investments by country of issue, as a percentage of total
equity holdings, is as follows:
<TABLE>
<S> <C>
United Kingdom 24.2%
France 16.1
Germany 10.6
Switzerland 9.6
Netherlands 7.9
Italy 7.7
Finland 7.5
Sweden 6.0
Spain 5.0
United States 3.0
Norway 1.8
Portugal 0.6
-----
100.0%
=====
</TABLE>
(b) At April 30, 2000, the net unrealized gain on investments based on cost for
federal income tax purposes of $442,036,007 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $183,839,759
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (41,809,812)
------------
Net unrealized gain $142,029,947
============
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2000, aggregated $193,384,874 and $153,248,061,
respectively.
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Europe Fund
BALANCE SHEET 4/30/00 (unaudited)
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash
investment of $12,866,000) (cost $442,036,007) $584,065,954
Cash 92
Receivables -
Investment securities sold 10,081,502
Fund shares sold 4,061,593
Dividends, interest and foreign taxes withheld 1,778,846
Other 3,501
------------
Total assets $599,991,488
------------
LIABILITIES:
Payables -
Investment securities purchased $ 2,459,267
Fund shares repurchased 1,894,664
Forward foreign currency settlement contracts - net 8,862
Due to affiliates 945,842
Accrued expenses 179,652
------------
Total liabilities $ 5,488,287
------------
NET ASSETS:
Paid-in capital $431,329,487
Accumulated net investment loss (2,168,858)
Accumulated undistributed net realized gain on investments
and foreign currency transactions 23,407,652
Net unrealized gain on investments 142,029,947
Net unrealized loss on forward foreign currency contracts
and other assets and liabilities denominated in
foreign currencies (95,027)
------------
Total net assets $594,503,201
============
NET ASSET VALUE PER SHARE:
Class A (based on $349,855,782/9,144,871 shares) $ 38.26
============
Class B (based on $189,474,748/5,197,347 shares) $ 36.46
============
Class C (based on $51,470,978/1,417,573 shares) $ 36.31
============
Class Y (based on $3,701,693/95,660 shares) $ 38.70
============
MAXIMUM OFFERING PRICE:
Class A $ 40.59
============
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Europe Fund
STATEMENT OF OPERATIONS (unaudited)
For the Six Months Ended 4/30/00
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $300,278) $ 2,733,313
Interest 486,941
-----------
Total investment income $ 3,220,254
------------
EXPENSES:
Management fees $ 2,608,242
Transfer agent fees
Class A 441,128
Class B 279,019
Class C 87,710
Class Y 398
Distribution fees
Class A 423,190
Class B 869,431
Class C 260,613
Administrative fees 75,632
Custodian fees 203,853
Registration fees 19,934
Professional fees 38,220
Printing 72,800
Fees and expenses of nonaffiliated trustees 14,560
Miscellaneous 10,544
-----------
Total expenses $ 5,405,274
Less fees paid directly (33,213)
------------
Net expenses $ 5,372,061
------------
Net investment loss $ (2,151,807)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments (including $252,412 realized loss from
affiliated companies) $23,488,928
Forward foreign curerncy contracts and other assets
and liabilities denominated in foreign currencies (79,925) $ 23,409,003
----------- ------------
Change in net unrealized gain from:
Investments $85,024,923
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (111,021) $ 84,913,902
----------- ------------
Net gain on investments and foreign currency
transactions $108,322,905
------------
Net increase in net assets resulting from
operations $106,171,098
============
</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 Six Months Ended 4/30/00 and the Year Ended 10/31/99
<TABLE>
<CAPTION>
Six Months Ended
4/30/00 Year Ended
(unaudited) 10/31/99
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (2,151,807) $ 64,643
Net realized gain on investments
and foreign currency transactions 23,409,003 16,304,327
Change in net unrealized gain on investments
and foreign currency transactions 84,913,902 25,007,483
------------- -------------
Net increase in net assets resulting
from operations $ 106,171,098 $ 41,376,453
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.00 and $0.09 per share, respectively) $ (14,783) $ (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) (9,227,796) (7,894,337)
Class B ($1.11 and $0.73 per share, respectively) (4,718,142) (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 shareholders $ (15,722,180) $ (13,795,015)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 324,995,021 $ 710,992,780
Reinvestment of distributions 13,588,663 10,819,404
Cost of shares repurchased (282,122,458) (799,643,032)
------------- -------------
Net increase (decrease) in net assets resulting
from fund share transactions $ 56,461,226 $ (77,830,848)
------------- -------------
Net increase (decrease) in net assets $ 146,910,144 $ (50,249,410)
NET ASSETS:
Beginning of period 447,593,057 497,842,467
------------- -------------
End of period (including accumulated net investment
loss of $2,168,858 and $1,924, respectively) $ 594,503,201 $ 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
(unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
CLASS A
Shares sold 5,907,958 $ 227,803,965 16,523,710 $ 504,349,032
Reinvestment of distributions 253,766 8,223,628 224,356 6,892,212
Less shares repurchased (5,483,714) (210,820,373) (18,838,071) (576,240,562)
---------- -------------- ----------- --------------
Net increase (decrease) 678,010 $ 25,207,220 (2,090,005) $ (64,999,318)
========== ============== =========== ==============
CLASS B
Shares sold 1,759,064 $ 67,493,475 2,086,760 $ 61,633,662
Reinvestment of distributions 129,888 4,023,933 102,586 3,040,634
Less shares repurchased (949,498) (35,467,070) (2,639,051) (77,154,350)
---------- -------------- ----------- --------------
Net increase (decrease) 939,454 $ 36,050,338 (449,705) $ (12,480,054)
========== ============== =========== ==============
CLASS C
Shares sold 803,326 $ 28,773,053 4,935,240 $ 144,141,809
Reinvestment of distributions 36,484 1,125,892 23,208 685,112
Less shares repurchased (861,473) (30,532,739) (4,888,732) (143,228,740)
---------- -------------- ----------- --------------
Net increase (decrease) (21,663) $ (633,794) 69,716 $ 1,598,181
========== ============== =========== ==============
CLASS Y
Shares sold 23,632 $ 924,528 28,302 $ 868,277
Reinvestment of distributions 6,580 215,210 6,534 201,446
Less shares repurchased (130,117) $ (5,302,276) (98,056) (3,019,380)
---------- -------------- ----------- --------------
Net decrease (99,905) $ (4,162,538) (63,220) $ (1,949,657)
========== ============== =========== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Europe Fund
FINANCIAL HIGHLIGHTS 4/30/00
<TABLE>
<CAPTION>
Six Months Ended
4/30/00 Year Ended
(unaudited) 10/31/99
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 31.71 $ 29.87
-------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.09) $ 0.12
Net realized and unrealized gain on investments
and foreign currency transactions 7.75 2.54
-------- --------
Net increase from investment operations $ 7.66 $ 2.66
Distributions to shareholders:
Net investment income 0.00(b) (0.09)
Net realized gain (1.11) (0.73)
-------- --------
Net increase in net asset value $ 6.55 $ 1.84
-------- --------
Net asset value, end of period $ 38.26 $ 31.71
======== ========
Total return* 24.80 % 9.01%
Ratio of net expenses to average net assets+ 1.57%** 1.63%
Ratio of net investment income (loss) to average net assets+ (0.45)%** 0.29%
Portfolio turnover rate 57%** 60%
Net assets, end of period (in thousands) $349,856 $268,446
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.57%** 1.63%
Net investment income (loss) (0.45)%** 0.29%
Ratios assuming waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 1.56%** 1.62%
Net investment income (loss) (0.44)%** 0.30%
<CAPTION>
Year Ended Year Ended Year Ended Year Ended
10/31/98 10/31/97 10/31/96 10/31/95(a)
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 27.60 $ 23.25 $ 21.19 $ 19.91
-------- -------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.10 $ 0.04 $ 0.11 $ 0.12
Net realized and unrealized gain on investments
and foreign currency transactions 3.72 6.11 3.38 2.57
-------- -------- ------- -------
Net increase from investment operations $ 3.82 $ 6.15 $ 3.49 $ 2.69
Distributions to shareholders:
Net investment income - (0.22) - (0.01)
Net realized gain (1.55) (1.58) (1.43) (1.40)
-------- -------- ------- -------
Net increase in net asset value $ 2.27 $ 4.35 $ 2.06 $ 1.28
-------- -------- ------- -------
Net asset value, end of period $ 29.87 $ 27.60 $ 23.25 $ 21.19
======== ======== ======= =======
Total return* 14.51% 28.30% 17.80% 15.12%
Ratio of net expenses to average net assets+ 1.54% 1.78% 1.94% 1.76%
Ratio of net investment income (loss) to average net assets+ 0.47% 0.19% 0.57% 0.59%
Portfolio turnover rate 39% 32% 56% 62%
Net assets, end of period (in thousands) $315,309 $152,267 $99,915 $78,505
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.54% 1.78% 2.00% 2.10%
Net investment income (loss) 0.47% 0.19% 0.51% 0.25%
Ratios assuming waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 1.49% 1.77% 1.93% 1.75%
Net investment income (loss) 0.52% 0.20% 0.58% 0.60%
</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, 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.
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Europe Fund
FINANCIAL HIGHLIGHTS 4/30/00
<TABLE>
<CAPTION>
Six Months Ended
4/30/00 Year Ended
(unaudited) 10/31/99
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 30.38 $ 28.79
-------- --------
Increase (decrease) from investment operations:
Net investment loss $ (0.16) $ (0.18)
Net realized and unrealized gain on investments
and foreign currency transactions 7.35 2.50
-------- --------
Net increase from investment operations $ 7.19 $ 2.32
Distributions to shareholders:
Net investment income - -
Net realized gain (1.11) (0.73)
-------- --------
Net increase in net asset value $ 6.08 $ 1.59
-------- --------
Net asset value, end of period $ 36.46 $ 30.38
======== ========
Total return* 24.32% 8.12%
Ratio of net expenses to average net assets+ 2.38%** 2.48%
Ratio of net investment loss to average net assets+ (1.24)%** (0.52)%
Portfolio turnover rate 57%** 60%
Net assets, end of period (in thousands) $189,475 $129,336
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 2.38%** 2.48%
Net investment loss (1.24)%** (0.52)%
Ratios assuming waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 2.38%** 2.47%
Net investment loss (1.24)%** (0.51)%
<CAPTION>
Year Ended Year Ended Year Ended Year Ended
10/31/98(a) 10/31/97 10/31/96 10/31/95(a)
<S> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 26.88 $ 22.74 $ 20.92 $19.80
-------- ------- ------- ------
Increase (decrease) from investment operations:
Net investment loss $ (0.09) $ (0.10) $ (0.04) $(0.02)
Net realized and unrealized gain on investments
and foreign currency transactions 3.55 5.93 3.29 2.56
-------- ------- ------- ------
Net increase from investment operations $ 3.46 $ 5.83 $ 3.25 $ 2.54
Distributions to shareholders:
Net investment income - (0.11) - (0.02)
Net realized gain (1.55) (1.58) (1.43) (1.40)
-------- ------- ------- ------
Net increase in net asset value $ 1.91 $ 4.14 $ 1.82 $ 1.12
-------- ------- ------- ------
Net asset value, end of period $ 28.79 $ 26.88 $ 22.74 $20.92
======== ======= ======= ======
Total return* 13.50% 27.35% 16.82% 14.43%
Ratio of net expenses to average net assets+ 2.35% 2.57% 2.76% 2.49%
Ratio of net investment loss to average net assets+ (0.34)% (0.55)% (0.23)% (0.13)%
Portfolio turnover rate 39% 32% 56% 62%
Net assets, end of period (in thousands) $135,535 $42,472 $20,228 $8,826
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 2.35% 2.57% 2.80% 2.85%
Net investment loss (0.34)% (0.55)% (0.27)% (0.49)%
Ratios assuming waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 2.31% 2.55% 2.74% 2.46%
Net investment loss (0.30)% (0.53)% (0.21)% (0.10)%
</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. 21
<PAGE>
Pioneer Europe Fund
FINANCIAL HIGHLIGHTS 4/30/00
<TABLE>
<CAPTION>
Six Months Ended
4/30/00 Year Ended Year Ended Year Ended 1/31/96 to
(unaudited) 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 $ (0.23) $ (0.13) $ (0.04) $(0.12) $ -
Net realized and unrealized gain on investments
and foreign currency transactions 7.38 2.46 3.53 5.94 2.77
------- ------- ------- ------ ------
Net increase from investment operations $ 7.15 $ 2.33 $ 3.49 $ 5.82 $ 2.77
Distributions to shareholders:
Net investment income - - - (0.20) -
Net realized gain (1.11) (0.73) (1.55) (1.58) -
------- ------- ------- ------ ------
Net increase in net asset value $ 6.04 $ 1.60 $ 1.94 $ 4.04 $ 2.77
------- ------- ------- ------ ------
Net asset value, end of period $ 36.31 $ 30.27 $ 28.67 $26.73 $22.69
======= ======= ======= ====== ======
Total return* 24.27% 8.19% 13.70% 27.47% 13.91%
Ratio of net expenses to average net assets+ 2.40%** 2.42% 2.28% 2.49% 2.74%**
Ratio of net investment loss to average net assets+ (1.28)%** (0.44)% (0.20)% (0.52)% (0.00)%**
Portfolio turnover rate 57%** 60% 39% 32% 56%
Net assets, end of period (in thousands) $51,471 $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 2.40%** 2.42% 2.28% 2.49% 2.75%**
Net investment loss (1.28)%** (0.44)% (0.20)% (0.52)% (0.01)%**
Ratios assuming waiver of management fees by
PIM and reduction for fees paid indirectly:
Net expenses 2.39%** 2.40% 2.22% 2.46% 2.71%**
Net investment income (loss) (1.27)%** (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.
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Europe Fund
FINANCIAL HIGHLIGHTS 4/30/00
<TABLE>
<CAPTION>
Six Months Ended
4/30/00 Year Ended 7/2/98 to
(unaudited)(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 (loss) $(0.01) $ 0.35 $ 0.07
Net realized and unrealized gain (loss) on
investments 7.85 2.49 (4.80)
------ ------ -------
Net increase (decrease) from
investment operations $ 7.84 $ 2.84 $ (4.73)
Distributions to shareholders:
Net investment income (0.00)(b) (0.04) -
Net realized gain (1.11) (0.73) -
------ ------ -------
Net increase (decrease) in net asset value $ 6.73 $ 2.07 $ (4.73)
------ ------ -------
Net asset value, end of period $38.70 $31.97 $ 29.90
====== ====== =======
Total return* 25.17% 9.59% (13.66)%
Ratio of net expenses to average net assets+ 1.09%** 1.12% 1.12%**
Ratio of net investment income (loss) to
average net assets+ (0.08)%** 0.90% 0.95%**
Portfolio turnover rate 57%** 60% 39%
Net assets, end of period (in thousands) $3,702 $6,252 $ 7,738
Ratios assuming reduction for fees paid
indirectly:
Net expenses 1.09%** 1.12% 1.11%**
Net investment income (loss) (0.08)%** 0.90% 0.96%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for 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 4/30/00 (unaudited)
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 has 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 shareholders 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 generally
accepted accounting principles that require the management of the Fund to, among
other things, make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and
expenses during the reporting periods. Actual results could differ from those
estimates. The following is a summary of significant accounting policies
consistently followed by the Fund, which are in conformity with those generally
accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net 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 Exchange. The
values of such securities used in computing the net
24
<PAGE>
Pioneer Europe Fund
asset value of the Fund's shares are determined as of such times. Dividend
income is recorded on the ex-dividend date, except that certain dividends
from foreign securities where the ex-dividend date may have passed are
recorded as soon as the Fund is informed of the ex-dividend data in the
exercise of reasonable diligence. Interest income is recorded on the accrual
basis, net of unrecoverable foreign taxes withheld at the applicable country
rates. Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities that have
the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
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
25
<PAGE>
Pioneer Europe Fund
NOTES TO FINANCIAL STATEMENTS 4/30/00 (unaudited) (continued)
by delivery of the currency. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms
of the contract and from unanticipated movements in the value of foreign
currencies relative to the U.S. dollar.
As of April 30, 2000, the Fund had no outstanding portfolio hedges. The
Fund's gross forward foreign currency settlement contracts receivable and
payable were $6,242,107 and $6,250,969, respectively, resulting in a net
payable of $8,862 as of April 30, 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
shareholders. Therefore, no federal income tax provision is required.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and an indirect subsidiary of The Pioneer Group, Inc. (PGI), earned
$48,534 in underwriting commissions on the sale of fund shares during the
six months ended April 30, 2000.
F. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Class Y shares are not subject to a distribution plan.
Shareholders of each class share all expenses and fees paid to the transfer
agent, Pioneering Services Corporation (PSC), for their services, which are
allocated based on the number of
26
<PAGE>
Pioneer Europe Fund
accounts in each class and the ratable allocation of related out-of-pocket
expense (see Note 3).
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning
of the day.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, 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 PGI. Management
fees are calculated daily at the annual rate of 1.00% of the Fund's average
daily net assets up to $300 million; 0.85% of the next $200 million; and 0.75%
of the excess over $500 million.
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 April 30, 2000, $470,826 was payable to PIM
related to management fees, administrative fees and certain other services.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer agent
and shareholder services to the Fund at negotiated rates. Included in due to
affiliates is $202,481 in transfer agent fees payable to PSC at April 30, 2000.
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
27
<PAGE>
Pioneer Europe Fund
NOTES TO FINANCIAL STATEMENTS 4/30/00 (unaudited) (continued)
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 $272,535
in distribution fees payable to PFD at April 30, 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 six months ended April 30,
2000, CDSCs in the amount of $383,562 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the six months ended April 30, 2000,
the Fund's expenses were reduced by $33,213 under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other Funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $50 million committed, unsecured revolving
line of credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of $50 million or the limits set
by its prospectus for borrowings. Interest on collective borrowings of up to $25
million is payable at the Federal Funds Rate plus 3/8% on an annualized basis,
or at the Federal Funds Rate plus 1/2% if the borrowing exceeds $25 million at
any one time. The Funds pay an annual commitment fee for this facility. The
commitment fee is allocated among such Funds based on their respective borrowing
limits.
28
<PAGE>
Pioneer Europe Fund
The average daily amount of borrowings outstanding during the six months ended
April 30, 2000 was $29,473. The average daily shares outstanding during the
period were 15,159,916 resulting in an average borrowing 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.
7. Affiliated Companies
The Fund's investments in certain companies exceed 5% of the outstanding voting
stock. Such companies are deemed affiliates of the Fund for financial reporting
purposes. The following summarizes transactions with affiliates of the Fund as
of April 30, 2000:
<TABLE>
<CAPTION>
Dividend
Affiliates Purchases Sales Income Value
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Biora AB $- $165,319 $- $10,119,886
</TABLE>
29
<PAGE>
Pioneer Europe Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham Eric W. Reckard, Treasurer
Marguerite A. Piret Joseph P. Barri, Secretary
David D. Tripple
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
30
<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.
31
<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 is
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 $40,000 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match PLan for Employees) IRA Plan
Businesses with 100 or fewer eligible employees can establish 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.
32
<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.
33
<PAGE>
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
Your investment professional can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-8O0-225-6292.
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 information,
have your 13-digit account number and four-digit personal identification number
at hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as you
meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need to
do is authorize a set amount of money to be moved out of your bank account into
the Pioneer fund of your choice. Investomatic also allows you to change the
dollar amount, frequency and investment date right over the phone. By putting
aside affordable amounts of money regularly, you can build a long-term
investment without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing Pioneer
to deduct from participating employees' paychecks. You specify the dollar amount
you want to invest into the Pioneer fund(s) of your choice.
34
<PAGE>
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds you
wish to invest in. You choose the amounts and dates for Pioneer to sell shares
of your original fund and use the proceeds to buy shares of the other funds you
have chosen. Over time, your investment will be shifted out of the original
fund. (Automatic Exchange is available for originating accounts with a balance
of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals. You
decide the frequency and the day of the month you want. Pioneer will send the
proceeds by check to the address you designate, or electronically to your bank
account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available for accounts with a value of $10,000 or more.)
35
<PAGE>
This page for your notes.
36
<PAGE>
This page for your notes.
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 Investment Management, Inc.
60 State Street
Boston, Massachusetts 02109
www.pioneerfunds.com
8275-00-0600
(Copyright) Pioneer Funds Distributor, Inc.
[recycle symbol] Printed on Recycled Paper
