[Pioneer Logo]
Pioneer
Equity-Income
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 28
The Pioneer Family of Mutual Funds 29
</TABLE>
----------------------------------------------------
<PAGE>
Pioneer Equity-Income 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 John Carey. 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 Equity-Income Fund
PORTFOLIO SUMMARY 4/30/00
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Begin Pie Chart]
U.S Common Stocks 96%
Depositary Receipts for
International Stocks 2%
U.S. Convertible Securities 2%
[End Pie Chart]
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[Begin Pie Chart]
Financial 16%
Communication Services 16%
Utilities 16%
Healthcare 9%
Consumer Cyclicals 9%
Consumer Staples 9%
Energy 9%
Capital Goods 5%
Basic Materials 5%
Other 6%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
1. SBC Communications, Inc 5.00% 6. Exxon Mobil Corp. 2.97%
2. U.S. West Communications 3.70 7. BestFoods 2.60
Group, Inc
3. Schering-Plough Corp 3.66 8. Constellation Energy Group 2.54
4. Ford Motor Co 3.06 9. BP Amoco Plc (A.D.R.) 2.45
5. Chevron Corp 3.06 10. BellSouth Corp. 2.33
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/00 CLASS A SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/00 10/31/99
$26.64 $29.97
Distributions per Share Income Short-Term Long-Term
(10/31/99-4/30/00) Dividends Capital Gains Capital Gains
$0.247 $0.008 $1.752
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Equity-Income Fund at public offering price, compared to the growth of
the Standard & Poor's 500 Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of April 30, 2000)
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 14.45% 13.75%
(7/25/90)
5 Years 16.76 15.38
1 Year -5.23 -10.69
</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 Plot Points]
<TABLE>
<CAPTION>
Pioneer Standard &
Equity-Income Poor's
Fund* 500 Index
<S> <C> <C>
7/25/90 9425 10000
9913 10824
4/92 11947 12346
14517 13484
4/94 15111 14202
16234 16679
4/96 20517 21701
23654 27151
4/98 33108 38284
37167 46631
4/00 35222 51335
</TABLE>
The Standard & Poor's (S&P) 500 Index is an unmanaged measure of 500 widely held
common stocks listed on the New York Stock Exchange, American Stock Exchange and
the over-the-counter market. Index returns assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
3
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/00 CLASS B SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/00 10/31/99
$26.47 $29.78
Distributions per Share Income Short-Term Long-Term
(10/31/99-4/30/00) Dividends Capital Gains Capital Gains
$0.128 $0.008 $1.752
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Equity-Income Fund, compared to the growth of the Standard & Poor's 500
Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of April 30, 2000)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 14.73% 14.73%
(4/4/94)
5 Years 15.88 15.77
1 Year -5.98 -9.48
</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 Plot Points]
<TABLE>
<CAPTION>
Pioneer Standard &
Equity-Income Poor's
Fund* 500 Index
<S> <C> <C>
4/4/94 10000 10000
10343 10273
10593 10922
4/95 11036 12065
12568 13802
4/96 13854 15698
14416 17116
4/97 15853 19641
18646 22613
4/98 22009 27694
21971 27585
4/99 24529 33732
24263 34653
4/00 23061 37135
</TABLE>
The Standard & Poor's (S&P) 500 Index is an unmanaged measure of 500 widely
held common stocks listed on the New York Stock Exchange, American Stock
Exchange and the over-the-counter market. Index returns assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
4
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/00 CLASS C SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/00 10/31/99
$26.42 $29.75
Distributions per Share Income Short-Term Long-Term
(10/31/99-4/30/00) Dividends Capital Gains Capital Gains
$0.122 $0.008 $1.752
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Equity-Income Fund, compared to the growth of the Standard & Poor's 500
Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of April 30, 2000)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 13.00% 13.00%
(1/31/96)
1 Year -6.11 -6.11
</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 Plot Points]
<TABLE>
<CAPTION>
Pioneer Standard
Equity-Income & Poor's
Fund* 500 Index
<S> <C> <C>
1/96 10000 10000
4/96 10133 10340
9745 10173
10534 11274
11405 12631
4/97 11580 12937
13563 15473
13622 14894
14795 16030
4/98 16075 18241
15828 18456
16047 18169
16858 21230
4/99 17908 22218
17879 22177
17708 22825
16551 23419
4/00 16813 24459
</TABLE>
The Standard & Poor's (S&P) 500 Index is an unmanaged measure of 500 widely held
common stocks listed on the New York Stock Exchange, American Stock Exchange and
the over-the-counter market. Index returns assume reinvestment of dividends and,
unlike Fund returns, do not reflect any fees, expenses or sales charges. You
cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
5
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 4/30/00 CLASS Y SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/00 10/31/99
$26.66 $30.00
Distributions per Share Income Short-Term Long-Term
(10/31/99-4/30/00) Dividends Capital Gains Capital Gains
$0.299 $0.008 $1.752
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Equity-Income Fund, compared to the growth of the Standard & Poor's 500
Index.
<TABLE>
<CAPTION>
Average Annual Total Returns*
(As of April 30, 2000)
If If
Period Held Redeemed
<S> <C> <C>
Life-of-Fund 2.74% 2.74%
(7/2/98)
1 Year -4.88 -4.88
</TABLE>
* Assumes reinvestment of distributions.
Gerowth of $10,000
[Mountain Chart Plot Points]
<TABLE>
<CAPTION>
Pioneer Equity- Standard &
Income Fund* Poor's 500
Index
<S> <C> <C>
7/2/98 10000 10000
9680 9788
8663 8361
9229 8919
10/98 9841 9635
10201 10205
10564 10815
10366 11259
10156 10895
10091 11352
4/99 11045 11783
10955 11488
11315 12150
11060 11761
10849 11687
10481 11392
10/99 10990 12105
10784 12336
10679 13086
10307 12420
9504 12170
10207 13383
4/00 10506 12971
</TABLE>
The Standard & Poor's (S&P) 500 Index is an unmanaged measure of 500 widely
held common stocks listed on the New York Stock Exchange, American Stock
Exchange and the over-the-counter market. Index returns assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
6
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/00
--------------------------------------------------------------------------------
In the following discussion, John Carey, the portfolio manager of Pioneer
Equity-Income Fund, reviews the market environment and the Fund's performance
for the six month period ended April 30, 2000.
Q: Why have the last six months been rough for investors in dividend-paying
stocks? How did Pioneer Equity-Income Fund perform in this environment?
A: The focus of the stock market on high-growth, technology stocks reached a
fever pitch in the last few months of 1999 and the first couple months of
2000. Valuation disparities between the so-called "new economy" and "old
economy" stocks grew wider and wider as investors, and mutual funds, poured
money into the former and ignored the latter. Naturally this was a difficult
period for a distinctly "old economy" portfolio like that of Pioneer
Equity-Income Fund. However, after the first week of March, a significant
alternation appeared to begin in the market. Investors grew skittish over the
sky-high price-to-earnings multiples on leading technology stocks--especially
in view of rising interest rates and somewhat lower earnings
expectations--and a sharp "correction" in that sector ensued.
The investment results for the six months ended April 30, 2000 still
reflect the different performances during most of that period between the
higher dividend-paying stocks in the Fund and the leading growth stocks
that drive the Standard & Poor's 500 Index. The Fund's Class A shares
returned -4.56% at net asset value for the period, versus a gain of 7.15%
on the unmanaged S&P 500. In the same period the average equity-income
fund, as classified by Lipper, Inc., returned -0.66%. (Lipper is an
independent firm that tracks mutual fund performance.)
Q: Is it difficult to maintain a consistent approach in today's market?
A: While we are troubled by near-term underperformance versus our benchmarks, we
believe that the longer-term record of the Fund justifies our confidence in
the conservative, dividend-oriented strategy we have pursued. Of course it is
tempting to chase fads and follow fashions and bend with every beguiling wind
that blows through the stock market, but we do not think that frequently
changing course would be
7
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/00 (continued)
--------------------------------------------------------------------------------
prudent. By the time a fad or fashion is well established, it is probably
about to become outmoded and replaced by something else. Yes, discipline in
investing, like discipline in general, is difficult, but we believe it is
important.
Q: Was there one market sector that particularly affected Fund performance over
the last six months?
A: The main stock group affecting performance was the one we largely did not
own, namely technology. The Fund is perennially underweighted in this sector
relative to the "tech" weighting in the S&P 500 Index due to the general lack
of dividend income from technology stocks. On April 30, 2000, about 4% of the
Fund's assets were invested in that sector, versus the 31% weighting for that
sector in the S&P 500. However, with the "turning of the tables" that we have
seen since early March, the relative price performance of stocks in our
favored sectors has improved considerably. We are hopeful for the rest of the
year, but cannot make any predictions or promises.
Q: What changes did you make in the portfolio during the most recent quarter?
A: The quarter ended April 30 was an active one for the Fund. We took advantage
of market volatility to consolidate the portfolio into a shorter list of
securities. We realized gains in some cases, for instance in our liquidations
of Sprint, Bank of New York, and Minnesota Mining & Manufacturing, as well as
in the sale of a large part of our position in Hewlett-Packard. In other
cases we took losses, for example in our disposals of Goodyear Tire & Rubber,
Lockheed Martin and Harris. In all, we liquidated 13 positions and had one
more, Public Service of North Carolina, purchased from us in a cash
acquisition offer by another company. The other positions liquidated were AK
Steel Holdings, Sara Lee, Chase Manhattan, North Fork Bancorp, American
National Insurance, Astoria Financial and Queens County Bancorp. In addition,
our Indiana Energy became Vectren, and we received shares of BP Amoco in
exchange for our shares of Atlantic Richfield in yet another corporate
merger. Reflecting our aim to focus the portfolio, we did not add any
positions during the quarter.
8
<PAGE>
Pioneer Equity-Income Fund
Q: What is your view of the current stock-market environment?
A: Clearly we are a bit relieved that the "spell" of high tech has been broken
and that investor interest appears to have broadened to include stocks in
other sectors. Risks remain, however--as they always do. The main concern for
us is the rising level of interest rates and the possibility that rates will
go up more than the stock market has "factored in." Overall, higher rates can
have a dampening effect on economic growth and stock-market performance.
Lately there have even been descriptions of the current stock market as a
"bear" market; and should that be confirmed over the next several months,
investor nerves, already frazzled, will be further tested.
It is at times like this when experience is a friend. We take comfort from
our 72 years of experience at Pioneer in managing through all kinds of
different markets. We believe conservative attention to underlying value
has served us and our shareholders well, and in the case of Pioneer
Equity-Income, the emphasis on dividends has meant that even in downturns
our shareholders have had regular quarterly income distributions. Those
distributions can be used for automatic reinvestment in additional shares
of the Fund at net asset value and indeed this is the choice of the vast
majority of our shareowners. Otherwise, we would counsel patience, and
remind you to focus on the long-term investment goals that led to your
initial interest in the Fund. We are much appreciative for your support.
9
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Value Value
<S> <C> <C>
CONVERTIBLE CORPORATE BOND - 0.1%
$800,000 Commscope Inc., 4.0%, 12/15/06 (144A) $ 1,000,464
-----------
Total Convertible Corporate Bond
(Cost $800,000) $ 1,000,464
-----------
Shares
CONVERTIBLE PREFERRED STOCKS - 2.0%
123,000 Cox Communications, Inc., 7.0%, 8/16/02 $ 7,103,250
84,700 Union Pacific Capital Trust, 6.25%, 4/1/28 3,634,223
123,000 Union Pacific Capital Trust, 6.25%, 4/1/28 (144A) 5,277,561
-----------
Total Convertible Preferred Stocks
(Cost $15,543,900) $16,015,034
-----------
COMMON STOCKS - 97.9%
Basic Materials - 5.5%
Aluminum - 0.7%
88,000 Alcoa Inc. $ 5,709,000
-----------
Chemicals - 1.1%
197,632 E.I. du Pont de Nemours and Co. $ 9,375,168
-----------
Iron & Steel - 1.5%
523,405 Roanoke Electric Steel Corp. $ 9,028,736
250,000 Worthington Industries, Inc. 3,093,750
-----------
$12,122,486
-----------
Metals Mining - 1.2%
217,600 Phelps Dodge Corp. $10,064,000
-----------
Paper & Forest Products - 1.0%
210,000 Consolidated Papers, Inc. $ 7,953,750
-----------
Total Basic Materials $45,224,404
-----------
Capital Goods - 5.1%
Aerospace/Defense - 0.3%
38,700 General Dynamics Corp. $ 2,263,950
-----------
Machinery (Diversified) - 1.6%
505,957 The Gorman-Rupp Co.+ $ 8,285,046
272,600 The Timken Co. 5,043,100
-----------
$13,328,146
-----------
Manufacturing (Diversified) - 0.9%
117,800 Johnson Controls, Inc. $ 7,458,212
-----------
</TABLE>
10 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Manufacturing (Specialized) - 0.5%
156,150 Diebold, Inc. $ 4,508,831
------------
Trucks & Parts - 1.8%
310,500 PACCAR, Inc. $ 14,768,156
------------
Total Capital Goods $ 42,327,295
------------
Communication Services - 15.6%
Telephone - 15.6%
184,585 Alltel Corp. $ 12,297,976
115,000 Bell Atlantic Corp. 6,813,750
396,400 BellSouth Corp. 19,299,725
280,700 GTE Corp. 19,017,425
944,669 SBC Communications, Inc. 41,388,311
429,877 U.S. West Communications Group, Inc. 30,601,869
------------
Total Communication Services $129,419,056
------------
Consumer Cyclicals - 8.8%
Automobiles - 5.0%
463,800 Ford Motor Co. $ 25,364,062
175,000 General Motors Corp. 16,384,375
------------
$ 41,748,437
------------
Auto Parts & Equipment - 1.6%
682,366 Delphi Automotive Systems Corp. $ 13,050,250
------------
Publishing - 1.0%
160,000 The McGraw-Hill Co., Inc. $ 8,400,000
------------
Publishing (Newspapers) - 0.1%
20,000 Tribune Co. $ 777,500
------------
Retail (Department Stores) - 0.5%
141,000 May Department Stores Co. $ 3,877,500
------------
Services (Advertising/Marketing) - 0.6%
117,800 The Interpublic Group of Companies, Inc. $ 4,829,800
------------
Total Consumer Cyclicals $ 72,683,487
------------
Consumer Staples - 7.9%
Beverages - 0.5%
121,300 Pepsico, Inc. $ 4,450,194
------------
Entertainment - 1.2%
531,200 Cedar Fair, L.P. $ 10,192,400
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Foods - 5.4%
429,000 BestFoods $21,557,250
180,000 Campbell Soup Co. 4,680,000
256,000 General Mills, Inc. 9,312,000
177,750 H.J. Heinz Co. 6,043,500
50,000 Quaker Oats Co. 3,259,375
-----------
$44,852,125
-----------
Household Products (Non-Durables) - 0.5%
66,000 Colgate-Palmolive Co. $ 3,770,250
-----------
Personal Care - 0.3%
50,000 Gillette Co. $ 1,850,000
-----------
Total Consumer Staples $65,114,969
-----------
Energy - 8.9%
Oil (Domestic Integrated) - 0.5%
153,305 Conoco, Inc. (Class B) $ 3,813,462
-----------
Oil (International Integrated) - 8.4%
396,880 BP Amoco Plc (A.D.R.) $20,240,880
297,700 Chevron Corp. 25,341,712
316,939 Exxon Mobil Corp. 24,622,199
-----------
$70,204,791
-----------
Total Energy $74,018,253
-----------
Financial - 16.2%
Banks (Major Regional) - 4.0%
50,000 Comerica, Inc. $ 2,118,750
98,440 Fleet Boston Financial, Inc. 3,488,467
266,600 Mellon Financial Corp. 8,564,525
364,000 National City Corp. 6,188,000
425,788 Old Kent Financial Corp. 12,826,863
-----------
$33,186,605
-----------
Banks (Regional) - 2.8%
807,500 First Security Corp. $11,405,937
269,300 First Tennessee National Corp. 5,116,700
283,900 SouthTrust Corp. 6,778,112
-----------
$23,300,749
-----------
Insurance (Life/Health) - 0.7%
136,000 ReliaStar Financial Corp. $ 5,856,500
-----------
</TABLE>
12 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Insurance (Property/Casualty) - 2.9%
170,100 Chubb Corp. $ 10,822,612
175,050 HSB Group, Inc. 5,076,450
227,800 St. Paul Companies, Inc. 8,115,375
------------
$ 24,014,437
------------
Investment Banking/Brokerage - 1.8%
175,000 Edwards (AG), Inc. $ 6,584,375
184,100 Paine Webber Group, Inc. 8,077,388
------------
$ 14,661,763
------------
Investment Management - 3.6%
232,600 Alliance Capital Management, L.P. $ 10,423,387
104,000 Eaton Vance Corp. (Non-voting) 4,400,500
402,000 T. Rowe Price Associates, Inc. 15,326,250
------------
$ 30,150,137
------------
Savings & Loan Companies - 0.4%
122,000 Washington Mutual, Inc. $ 3,118,625
------------
Total Financial $134,288,816
------------
Healthcare - 9.6%
Healthcare (Diversified) - 4.0%
356,600 Abbott Laboratories $ 13,706,813
200,000 Bristol-Myers Squibb Co. 10,487,500
105,000 Johnson & Johnson 8,662,500
------------
$ 32,856,813
------------
Healthcare (Drugs/Major Pharmaceuticals) - 5.0%
160,400 Merck & Co., Inc. $ 11,147,800
751,600 Schering-Plough Corp. 30,298,875
------------
$ 41,446,675
------------
Healthcare (Medical Products/Supplies) - 0.6%
188,000 Becton, Dickinson & Co. $ 4,817,500
------------
Total Healthcare $ 79,120,988
------------
Technology - 3.8%
Computers (Hardware) - 2.3%
115,600 Hewlett-Packard Co. $ 15,606,000
30,000 IBM Corp. 3,348,750
------------
$ 18,954,750
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Photography/Imaging - 1.5%
220,000 Eastman Kodak Co. $12,306,250
-----------
Total Technology $31,261,000
-----------
Transportation - 0.9%
Railroads - 0.9%
105,000 Burlington Northern Santa Fe Corp. $ 2,533,125
293,600 Norfolk Southern Corp. 5,174,700
-----------
Total Transportation $ 7,707,825
-----------
Utilities - 15.6%
Electric Companies - 10.2%
296,200 Allegheny Energy, Inc. $ 8,997,075
235,400 American Electric Power Co., Inc. 8,621,525
636,500 Constellation Energy Group 21,044,281
372,350 DPL, Inc. 8,657,138
200,000 DQE, Inc. 7,650,000
229,000 Duke Energy Corp. 13,167,500
60,000 FPL Group, Inc. 2,711,250
284,400 Kansas City Power & Light Co. 7,305,525
140,000 NSTAR 6,168,750
-----------
$84,323,044
-----------
Natural Gas - 4.9%
100,600 Buckeye Partners, L.P. $ 2,722,488
454,700 KeySpan Energy Corp. 13,356,813
110,882 Kinder Morgan Energy Partners, L.P. 4,324,398
72,200 Lakehead Pipe Line Partners, L.P. (Preferred Units) 2,563,100
191,200 NICOR, Inc. 6,476,900
147,933 Vectren Corp. 2,977,152
446,600 Questar Corp. 8,401,663
-----------
$40,822,514
-----------
</TABLE>
14 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer Equity-Income Fund
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Power Producers (Independent) - 0.1%
100,000 Consol Energy, Inc. $ 1,037,500
------------
Water Utility - 0.4%
150,400 American Water Works Co., Inc. $ 3,412,200
------------
Total Utilities $129,595,258
------------
TOTAL COMMON STOCKS
(Cost $612,149,171) $810,761,351
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $628,493,071)(a) $827,776,849
============
</TABLE>
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At April 30, 2000, the
value of these securities amounted to $6,278,025 or 0.8% of total net
assets.
+ Investment held by Fund representing 5% or more of the outstanding voting
stock of such company.
(a) At April 30, 2000, the net unrealized gain on investments based on cost
for federal income tax purposes of $624,338,921 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $234,351,532
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (30,913,604)
------------
Net unrealized gain $203,437,928
============
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended April 30, 2000 aggregated $24,665,892 and $158,190,865,
respectively.
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
BALANCE SHEET 4/30/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $628,493,071) $827,776,849
Cash 295
Receivables -
Investment securities sold 2,180,807
Fund shares sold 453,250
Dividends and interest 1,865,891
Other 57,836
------------
Total assets $832,334,928
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 1,231,060
Due to affiliates 925,089
Accrued expenses 467,144
Other 498,000
------------
Total liabilities $ 3,121,293
------------
NET ASSETS:
Paid-in capital $596,004,596
Accumulated undistributed net investment income 4,667,595
Accumulated undistributed net realized gain on investments 29,257,666
Net unrealized gain on investments 199,283,778
------------
Total net assets $829,213,635
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $537,531,216/20,181,386 shares) $ 26.64
============
Class B (based on $257,176,152/9,717,595 shares) $ 26.47
============
Class C (based on $31,981,626/1,210,481 shares) $ 26.42
============
Class Y (based on $2,524,641/94,699 shares) $ 26.66
============
MAXIMUM OFFERING PRICE:
Class A $ 28.27
============
</TABLE>
16 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended 4/30/00
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends $13,869,108
Interest 156,514
-----------
Total investment income $ 14,025,622
------------
EXPENSES:
Management fees $ 2,725,075
Transfer agent fees
Class A 554,432
Class B 325,511
Class C 70,402
Class Y 330
Distribution fees
Class A 730,566
Class B 1,424,043
Class C 181,165
Administrative fees 113,455
Custodian fees 42,769
Registration fees 122,651
Professional fees 33,282
Printing 237,156
Fees and expenses of nonaffiliated trustees 18,994
Miscellaneous 27,685
-----------
Total expenses $ 6,607,516
Less fees paid indirectly (93,522)
------------
Net expenses $ 6,513,994
------------
Net investment income $ 7,511,628
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 31,412,085
Change in net unrealized gain on investments (93,223,954)
------------
Net loss on investments $(61,811,869)
------------
Net decrease in net assets resulting from operations $(54,300,241)
============
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Equity-Income 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 $ 7,511,628 $ 13,786,196
Net realized gain on investments 31,412,085 61,324,548
Change in net unrealized gain on investments (93,223,954) 25,524,442
-------------- --------------
Net increase (decrease) in net assets resulting
from operations $ (54,300,241) $ 100,635,186
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.25 and $0.47 per share, respectively) $ (5,427,026) $ (10,285,113)
Class B ($0.13 and $0.23 per share, respectively) (1,372,594) (2,531,367)
Class C ($0.12 and $0.21 per share, respectively) (167,333) (249,159)
Class Y ($0.30 and $0.58 per share, respectively) (31,230) (65,967)
Net realized gain:
Class A ($1.76 and $0.76 per share, respectively) (38,673,782) (15,956,369)
Class B ($1.76 and $0.76 per share, respectively) (19,330,433) (7,785,465)
Class C ($1.76 and $0.76 per share, respectively) (2,471,114) (736,803)
Class Y ($1.76 and $0.76 per share, respectively) (206,267) (80,223)
-------------- --------------
Total distributions to shareholders $ (67,679,779) $ (37,690,466)
-------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 94,966,134 $ 277,147,856
Reinvestment of distributions 61,924,259 34,629,922
Cost of shares repurchased (240,492,205) (234,614,664)
-------------- --------------
Net increase (decrease) in net assets resulting
from fund share transactions $ (83,601,812) $ 77,163,114
-------------- --------------
Net increase (decrease) in net assets $ (205,581,832) $ 140,107,834
NET ASSETS:
Beginning of period 1,034,795,467 894,687,633
-------------- --------------
End of period (including accumulated undistributed net
investment income of $4,667,595 and $4,154,150,
respectively) $ 829,213,635 $1,034,795,467
============== ==============
</TABLE>
18 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
'00 Shares '00 Amount
(unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
CLASS A
Shares sold 2,394,505 $ 64,312,740 5,534,197 $ 162,178,227
Reinvestment of distributions 1,497,102 41,129,607 858,056 24,507,206
Less shares repurchased (5,787,050) (151,689,233) (5,110,961) (150,324,477)
---------- -------------- ---------- --------------
Net increase (decrease) (1,895,443) $ (46,246,886) 1,281,292 $ 36,360,956
========== ============== ========== ==============
CLASS B
Shares sold 924,323 $ 24,478,785 3,060,616 $ 89,638,439
Reinvestment of distributions 669,170 18,313,984 322,601 9,146,739
Less shares repurchased (2,903,763) (75,295,575) (2,438,832) (71,739,397)
---------- -------------- ---------- --------------
Net increase (decrease) (1,310,270) $ (32,502,806) 944,385 $ 27,045,781
========== ============== ========== ==============
CLASS C
Shares sold 223,131 $ 5,980,276 834,174 $ 24,434,881
Reinvestment of distributions 82,154 2,246,754 29,295 829,857
Less shares repurchased (483,954) (12,493,365) (404,784) (11,931,328)
---------- -------------- ---------- --------------
Net increase (decrease) (178,669) $ (4,266,335) 458,685 $ 13,333,410
========== ============== ========== ==============
CLASS Y
Shares sold 7,182 $ 194,333 30,456 $ 896,309
Reinvestment of distributions 8,511 233,914 5,108 146,120
Less shares repurchased (38,250) (1,014,032) (20,985) (619,462)
---------- -------------- ---------- --------------
Net increase (decrease) (22,557) $ (585,785) 14,579 $ 422,967
========== ============== ========== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Equity-Income 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 $ 29.97 $ 28.10
------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.28 $ 0.48
Net realized and unrealized gain (loss) on investments (1.60) 2.62
-------- -------
Net increase (decrease) from investment operations $ (1.32) $ 3.10
Distributions to shareholders:
Net investment income (0.25) (0.47)
Net realized gain (1.76) (0.76)
-------- --------
Net increase (decrease) in net asset value $ (3.33) $ 1.87
-------- --------
Net asset value, end of period $ 26.64 $ 29.97
======== =======
Total return* (4.56)% 11.26%
Ratio of net expenses to average net assets+ 1.17%** 1.09%
Ratio of net investment income to average net assets+ 1.92%** 1.62%
Portfolio turnover rate 5%** 23%
Net assets, end of period (in thousands) $537,531 $661,598
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.15%** 1.07%
Net investment income 1.94%** 1.64%
<CAPTION>
Year Ended Year Ended Year Ended Year Ended
10/31/98 10/31/97 10/31/96 10/31/95
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 24.78 $ 20.37 $ 18.22 $ 16.16
------- ------- ------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.49 $ 0.50 $ 0.55 $ 0.54
Net realized and unrealized gain (loss) on investments 4.04 5.36 2.24 2.45
------- ------- ------- --------
Net increase (decrease) from investment operations $ 4.53 $ 5.86 $ 2.79 $ 2.99
Distributions to shareholders:
Net investment income (0.48) (0.50) (0.50) (0.53)
Net realized gain (0.73) (0.95) (0.14) (0.40)
-------- -------- -------- --------
Net increase (decrease) in net asset value $ 3.32 $ 4.41 $ 2.15 $ 2.06
-------- -------- -------- --------
Net asset value, end of period $ 28.10 $ 24.78 $ 20.37 $ 18.22
======== ======== ======== ========
Total return* 18.69% 30.40% 15.53% 19.51%
Ratio of net expenses to average net assets+ 1.05% 1.11% 1.19% 1.29%
Ratio of net investment income to average net assets+ 1.82% 2.22% 2.85% 3.26%
Portfolio turnover rate 12% 18% 47% 13%
Net assets, end of period (in thousands) $584,389 $452,300 $336,384 $249,981
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.04% 1.10% 1.18% 1.27%
Net investment income 1.83% 2.23% 2.86% 3.28%
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
Pioneer Equity-Income 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 $ 29.78 $ 27.91
------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.17 $ 0.25
Net realized and unrealized gain (loss) on investments (1.59) 2.61
-------- -------
Net increase (decrease) from investment operations $ (1.42) $ 2.86
Distributions to shareholders:
Net investment income (0.13) (0.23)
Net realized gain (1.76) (0.76)
-------- --------
Net increase (decrease) in net asset value $ (3.31) $ 1.87
-------- --------
Net asset value, end of period $ 26.47 $ 29.78
======== ========
Total return* (4.95)% 10.43%
Ratio of net expenses to average net assets+ 1.96%** 1.87%
Ratio of net investment income to average net assets+ 1.13%** 0.84%
Portfolio turnover rate 5%** 23%
Net assets, end of period (in thousands) $257,176 $328,360
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.94%** 1.85%
Net investment income 1.15%** 0.86%
<CAPTION>
Year Ended Year Ended Year Ended Year ended
10/31/98 10/31/97 10/31/96 10/31/95
<S> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 24.63 $ 20.26 $ 18.15 $ 16.14
------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.29 $ 0.33 $ 0.41 $ 0.45
Net realized and unrealized gain (loss) on investments 4.01 5.32 2.22 2.41
------- ------- ------- -------
Net increase (decrease) from investment operations $ 4.30 $ 5.65 $ 2.63 2.86
Distributions to shareholders:
Net investment income (0.29) (0.33) (0.38) (0.45)
Net realized gain (0.73) (0.95) (0.14) (0.40)
-------- -------- -------- -------
Net increase (decrease) in net asset value $ 3.28 $ 4.37 $ 2.11 $ 2.01
-------- -------- -------- -------
Net asset value, end of period $ 27.91 $ 24.63 $ 20.26 $ 18.15
======== ======== ======= =======
Total return* 17.83% 29.35% 14.70% 18.64%
Ratio of net expenses to average net assets+ 1.82% 1.88% 1.95% 2.02%
Ratio of net investment income to average net assets+ 1.05% 1.45% 2.06% 2.35%
Portfolio turnover rate 12% 18% 47% 13%
Net assets, end of period (in thousands) $281,469 $201,360 $134,657 $60,433
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.81% 1.87% 1.94% 1.98%
Net investment income 1.06% 1.46% 2.07% 2.39%
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
Pioneer Equity-Income 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 10/31/97 10/31/96
<S> <C> <C> <C> <C> <C>
CLASS C
Net asset value, beginning of period $ 29.75 $ 27.88 $ 24.61 $ 20.25 $ 19.49
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.14 $ 0.22 $ 0.27 $ 0.32 $ 0.27
Net realized and unrealized gain (loss) on investments (1.59) 2.62 4.02 5.32 0.76
-------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (1.45) $ 2.84 $ 4.29 $ 5.64 $ 1.03
Distributions to shareholders:
Net investment income (0.12) (0.21) (0.29) (0.33) (0.27)
Net realized gain (1.76) (0.76) (0.73) (0.95) --
-------- ------- ------- ------- --------
Net increase (decrease) in net asset value $ (3.33) $ 1.87 $ 3.27 $ 4.36 $ 0.76
-------- ------- ------- ------- --------
Net asset value, end of period $ 26.42 $ 29.75 $ 27.88 $ 24.61 $ 20.25
======== ======= ======= ======= ========
Total return* (5.06)% 10.35% 17.80% 29.32% 5.34%
Ratio of net expenses to average net assets+ 2.12%** 1.97% 1.89% 1.93% 1.98%**
Ratio of net investment income to average net assets+ 0.98%** 0.74% 0.97% 1.35% 1.91%**
Portfolio turnover rate 5%** 23% 12% 18% 47%
Net assets, end of period (in thousands) $31,982 $41,320 $25,941 $12,324 $ 4,144
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.10%** 1.94% 1.87% 1.91% 1.94%**
Net investment income 1.00%** 0.77% 0.99% 1.37% 1.95%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
4/30/00 Year Ended 7/2/98 to
(unaudited) 10/31/99 10/31/98
<S> <C> <C> <C>
CLASS Y
Net asset value, beginning of period $ 30.00 $ 28.13 $ 28.72
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.35 $ 0.59 $ 0.18
Net realized and unrealized gain (loss) on
investments (1.63) 2.62 (0.64)
-------- ------- --------
Net increase (decrease) from investment
operations $ (1.28) $ 3.21 $ (0.46)
Distributions to shareholders:
Net investment income (0.30) (0.58) (0.13)
Net realized gain (1.76) (0.76) --
-------- -------- --------
Net increase (decrease) in net asset value $ (3.34) $ 1.87 $ (0.59)
-------- -------- --------
Net asset value, end of period $ 26.66 $ 30.00 $ 28.13
======== ======== ========
Total return* (4.40)% 11.67% (1.59)%
Ratio of net expenses to average net assets+ 0.76%** 0.70% 0.74%**
Ratio of net investment income to average net
assets+ 2.34%** 2.01% 2.07%**
Portfolio turnover rate 5%** 23% 12%
Net assets, end of period (in thousands) $ 2,525 3,517 $ 2,888
Ratios assuming reduction for fees paid indirectly:
Net expenses 0.75%** 0.69% 0.74%**
Net investment income 2.35%** 2.02% 2.07%**
</TABLE>
* 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.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 23
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/00 (unaudited)
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Equity-Income Fund (the Fund), is a Delaware business trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objectives of the Fund are current income
and 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 shareholders.
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.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. 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 pur-
24
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
poses. 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.
Settlements from litigation and class action suits are recognized when the
Fund acquires an enforceable right to such awards. Included in net realized
gain from investments is $2,708 of class action settlements received by the
Fund during the six months ended April 30, 2000.
B. 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.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. Net
losses, if any, as a result of cancellations are absorbed by Pioneer Funds
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $54,565 in
underwriting commissions on the sale of fund shares during the six months
ended April 30, 2000.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C 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 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.
25
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
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 at the annual rate of 0.60% of the Fund's
average daily net assets up to $10 billion and 0.575% of the excess over $10
billion.
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, $439,679 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 $137,179 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 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 $348,231 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
26
<PAGE>
Pioneer Equity-Income Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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 $649,137 were paid to
PFD.
5. Expense Offsets
The Fund has entered into certain directed brokerage and 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 $93,522 under
such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $50 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $50 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
of up to $25 million is payable at the Federal Funds Rate plus 3/8% on an
annualized basis, or at the Federal Funds Rate plus 1/2% if the borrowing
exceeds $25 million at any one time. The Funds pay an annual commitment fee for
this facility. The commitment fee is allocated among such Funds based on their
respective borrowing limits.
The average daily amount of borrowings outstanding during the six months ended
April 30, 2000 was $206,566. The average daily shares outstanding during the
period were 34,347,178 resulting in an average borrowing per share of $0.01.
The related weighted average annualized interest rate for the period was 6.34%,
and the total interest expense on such borrowings was $9,887.
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>
The Gorman-Rupp Co. $ - $ - $151,787 $8,285,046
</TABLE>
-------------------------------------------------------------------------------
27
<PAGE>
Pioneer Equity-Income Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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Officers Trustees
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice
Margaret B.W. Graham President
Marguerite A. Piret Eric W. Reckard, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
28
<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.
29
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer Logo]
Pioneer Investment Management, Inc.
60 State Street 8277-00-0600
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [recycle logo] Printed on Recycled Paper
