Dear Fellow Shareowners,
This semiannual report for Pioneer International Growth Fund covers the six
months ended May 31, 1995. A number of events affected foreign markets during
the period, from widely fluctuating currency exchange rates to falling U.S.
interest rates. The results for international investors varied, depending on
the market. Japan, for example, became less attractive as its currency
continued to appreciate significantly against the U.S. dollar. On the other
hand, many emerging markets improved as 1995 progressed, primarily in
response to a more favorable U.S. interest rate environment.
How Your Fund Performed
For the six months ended May 31, 1995, Pioneer International Growth Fund
posted the following results:
* Class A shares -- The Fund paid shareowners a capital gains
distribution of $1.10 per share in December 1994. Net asset value was $19.64
per share on May 31, versus $21.55 six months earlier, in part reflecting the
payment of the distribution. Assuming reinvestment of the distribution, the
Fund produced a six-month total return of -3.87% based on net asset value,
and -9.38% based on maximum public offering price.
* Class B shares -- The Fund paid shareowners a capital gains
distribution of $1.10 per share in December 1994. Net asset value stood at
$19.46 per share on May 31, versus $21.45 six months earlier, in part
reflecting the payment of the distribution. Assuming reinvestment of the
distribution, your Fund produced a six-month total return of -4.28% if shares
were held throughout the period, and -8.11% if shares were redeemed at the
end of the six months.
In comparison, the Morgan Stanley Capital International (MSCI) Europe,
Australia, Far East (EAFE) Index, an unmanaged measure of international stock
markets, returned 5.09% for the six-month period.
Average Annual Total Returns
(as of May 31, 1995)
<TABLE>
<CAPTION>
Net Public
Asset Offering
Class A Shares Value Price*
- --------------------- ------- -------------
<S> <C> <C>
Life-of-Fund
(3/25/93) 19.49% 16.27%
1 Year -6.18 -11.58
</TABLE>
<TABLE>
<CAPTION>
Return If
Not Return If
Class B Shares Redeemed Redeemed**
- -------------------- ----------- -----------
<S> <C> <C>
Life-of-Fund
(4/4/94) -2.17% -5.37%
1 Year -6.93 -10.46
- -------------------- --------- ---------
</TABLE>
Favorable U.S. Interest Rates Set Stage for Improving Emerging Markets
Pioneer International Growth Fund's management looks for value in both
emerging and established markets. With the highest growth opportunities
typically coming from developing countries, your Fund tends to be biased
toward these fast-growth areas.
Emerging markets were significantly affected by the devaluation of the
Mexican peso in December. Confidence in Latin America was shaken, prompting
uncertainty in other emerging areas, such as Southeast Asia. More recently,
however, the situation has improved. On March 9, Argentina assembled an
international financial aid and economic austerity package, reassuring
investors and sending Argentine stock prices up 40%. This event triggered
stock price increases of 15% or more in many other emerging Asian and Latin
American markets since that date. While Latin America's interest rates and
price-to-earnings ratios remain high (and are the reasons why your
management maintains minimal exposure there), the outlook for long-term
investing grew more optimistic with these events.
*Reflects deduction of the maximum 5.75% sales charge and assumes
reinvestment of all distributions at net asset value.
**Reflects deduction of the maximum 4.0% contingent deferred sales charge and
assumes reinvestment of all distributions.
Past performance does not guarantee future results. Return and share price
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
<PAGE>
Also benefiting emerging markets were favorable U.S. interest rates. After an
increase in short-term interest rates on February 1, long-term U.S. rates
started trending lower, giving many emerging countries greater freedom to
adjust their own rates downward to enhance economic growth and become more
attractive to investors. While the impact of 1994's U.S. interest rate
increases remains a concern for some investors, the improved interest rate
climate has set the stage for stronger performance in developing areas. Your
Fund's more recent results reflect this; its three-month total return, based
on net asset value, through May was 4.52% for Class A shares, and 4.29% for
Class B shares.
Presently, your management believes Korea and Malaysia offer the greatest
opportunities for Asian-oriented investors. We are impressed by Korea's
dynamic industrial economy and growing electronics industry, in addition to
its stock market's low price-to-earnings ratio. We think Malaysia also offers
an excellent stock market environment, with an economic growth rate of almost
10% and relatively low inflation.
Another advantage to these and other emerging Asian markets has been the
continued appreciation of the yen, which has made these countries' products
and services attractive versus those of more expensive Japanese competitors.
Reflecting this, companies in emerging countries are receiving work contracts
from the United States, primarily in the telecommunications and technology
areas. Korea-based Samsung Electronics, one of your Fund's holdings, has
benefited from the trend. An additional strength of developing countries is
their vast infrastructure development. Your Fund is invested in Renong, a
Malaysian company developing tollroads throughout its country. In addition,
the company has received an important contract to build a bridge between
Malaysia and Singapore. Finally, a huge, developing middle class also bodes
well for Asian consumer goods companies. A company already taking advantage
of this growing market segment is Siam Makro (Thailand), a cash-and-carry
retailer.
In Japan, Strong Yen and Weak Economic Growth
In our last report to you, we discussed our intent to increase the Fund's
weighting in Japanese holdings. We did this fairly early in the period; the
country's improved market strength had made it preferable to many
less-developed markets. More recently, however, Japan's competitive market
position has been hurt by the country's continued strong currency, which
reached historic highs versus the U.S. dollar. Japanese companies have begun
to cut costs, driving the jobless rate to 3.2% in April, the highest level
since the nation began keeping records in 1953. This development, various
other economic problems, and events such as the Kobe earthquake, have made
Japan less appealing. By May 31, Japanese holdings totaled 15% of your Fund's
equity investments, versus 13% on November 30 and down from a high of 28% in
January.
Over the past six months, as the yen and deutschemark appreciated sharply
versus the U.S. dollar, we began to anticipate that the dollar would
strengthen. That strategic outlook, also reflected in our country allocation
and stock selections, led us to place defensive currency hedges on a portion
of the Fund's Japanese and German holdings. While the intent was to minimize
the impact of changing monetary exchange rates, the hedges worked against the
Fund's return during the period as the dollar remained weak. Despite this, we
think the dollar's recent decline was overdone, and we contine to be
optimistic about the dollar's recovery. Accordingly, the Fund remains
positioned to benefit from improving dollar strength.
European Economic Recovery Continues
Your Fund holds a sizable weighting in Europe, distributed among mature and
less-developed markets. Presently, your management sees good value in
Scandinavia, namely Sweden (11% of the Fund's equity holdings) and Finland
(5%). We think these countries are offering more attractive prices and
stronger earnings growth than currently can be found in Germany and the
United Kingdom. While national finance problems (e.g., huge budget deficits)
exist, these Scandinavian countries nonetheless are benefiting from increased
exports and global growth, and stocks in these markets are selling at
relatively low prices compared to the rest of Europe. For example, Volvo
(Sweden) continues to produce impressive earnings growth, and currently is
trading at less than six times its 1995 earnings. By comparison, most other
car companies in Europe are trading at 14 times earnings. Another Swedish
company we like is Skandia Forsakrings, an insurance company. We expect
Skandia to benefit from the anticipated growth of private life insurance in
Europe. In the technology industry, the Fund continues to hold Nokia
(Finland); the growth of telephone networks in Europe should further benefit
this already dominant cellular phone company.
2
<PAGE>
Your management initiated the Fund's first position in Poland during the
period, and Polish stocks totaled 2% of the Fund's equity investments on May
31. Eastern Europe's overall market decline presented some good long-term
opportunities for your Fund. We acquired Jelfa, a pharmaceutical company, and
Polifarb-Cieszyn, a chemical company. We are excited by the long-term
opportunities present in the Polish market and expect the Fund will benefit
accordingly. The accompanying chart summarizes the Fund's geographical
distribution as of May 31.
(bar chart - Geographical Distribution
Geographical Distribution
(percentage of equity holdings as of May 31, 1995
Argentina 1.08%
Australia 1.54%
China 0.32%
Columbia 0.60%
Denmark 0.20%
Finland 4.83%
France 6.16%
Germany 3.56%
Hong Kong 7.39%
India 1.01%
Indonesia 2.46%
Israel 0.67%
Italy 1.59%
Japan 14.75%
Malaysia 3.93%
Mexico 4.07%
Netherlands 5.44%
Norway 2.09%
Phillipines 0.05%
Poland 2.45%
Singapore 3.46%
South Africa 0.57%
South Korea 9.88%
Spain 0.55%
Sweden 10.64%
Switzerland 1.83%
Taiwan 1.25%
Thailand 1.66%
United Kingdom 5.97%
(end bar chart)
Looking Ahead into International Markets
With U.S. interest rates down, we think emerging regions will continue to
attract investors. Over the short term, we expect to focus on developing
Asian markets since we see significant growth potential there. We also will
keep a watchful eye on events in Latin America and expect to increase the
Fund's weighting in that region once we see lower interest rates and
price-to-earnings ratios. We continue to believe that Fund shareowners should
benefit over time if we maintain a position in developing, fast-growth
markets. We also expect positive long-term results from European regions,
thanks to stronger corporate earnings and low interest rates and inflation.
Japan, despite current economic difficulties, also is benefiting from low
interest rates (corporate dividends have exceeded short-term interest rates
for the first time in 20 years). We believe that value will return for
investors who can wait out the yen's sizable appreciation.
3
<PAGE>
Currency fluctuations, as well as economic and political instabilities,
remain an unavoidable part of international investing, regardless of the
foreign market. However, these events generally tend to have an impact only
over the short term, and therefore should not cloud the long-term rewards we
think are possible. We are optimistic about the worldwide selection of
investment choices, and we remain committed to identifying opportunities we
believe will offer value and rewarding long-term returns for shareowners.
Please refer to the following pages for audited financial statements and the
complete list of portfolio holdings as of May 31, 1995. If you have any
questions about your investment in Pioneer International Growth Fund, please
contact your investment representative, or call Pioneer at 1-800-225-6292.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President,
Pioneer International Growth Fund
July 7, 1995
4
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
- ---------- ----------
<S> <C> <C>
INVESTMENT IN SECURITIES--97.5%
CONVERTIBLE CORPORATE BONDS--3.7%
$11,104,900 Cemex S.A., 4.25%, 11/1/97 144A $ 8,439,724
1,660,000 United Micro Electronics, 1.25%, 6/8/04 2,830,300
--------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $10,039,998) $11,270,024
--------
Shares
- ----------
PREFERRED STOCKS--5.7%
100,000 Banco Ganadero S.A. (A.D.R.) $ 1,775,000
79,000 LG Electronics* 1,806,101
750 Merck AG 532,362
100,903 News Corp., Ltd. (Voting) 485,404
44,763 Samsung Electronics 3,701,357
7,414 Samsung Electronics (New Preferred 1)* 581,586
7,105 SAP AG 8,313,907
--------
TOTAL PREFERRED STOCKS (Cost $13,991,963) $17,195,717
--------
COMMON STOCKS--87.9%
BASIC INDUSTRIES--3.7%
Chemicals--1.6%
175,000 Chemicals & Plastics India Ltd.* $ 1,085,919
45,000 European Vinyls Corp., Intl.* 2,035,452
16,000 Indo Gulf Fertilizers (G.D.R.)* 36,400
2,200 Kothari Sugar & Chemical 3,150
103,389 Polifarb-Cieszyn 451,152
350 Sakthi Sugars 807
610,000 Shanghai Chlor-Alkali Chemical Company (B
shares) 141,520
2,930,000 Yizheng Chemical Fibre Company, Ltd. 1,089,001
--------
$ 4,843,401
--------
Iron & Steel--1.1%
39,000 China Steel Corp. (G.D.R.) $ 843,375
64,350 Koninklijke Hoogovens & Staalfabrienken CVA 2,601,739
--------
$ 3,445,114
--------
Metals & Mining--0.5%
23,000 Eramet* $ 1,629,466
--------
Paper Products--0.0%
318 Hansol Paper (G.D.S.)* $ 6,201
--------
Tire & Rubber--0.5%
60,000 Debica $ 805,989
499,000 PT Andayani Megah 565,899
--------
$ 1,371,888
--------
TOTAL BASIC INDUSTRIES $11,296,070
--------
CAPITAL GOODS--9.1%
Aerospace Manufacturing--1.1%
400,000 British Aerospace Plc $ 3,325,200
--------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Shares Value
- ---------- ----------
<S> <C> <C>
Construction, Building Materials &
Engineering--4.3%
230,000 Elektrim S.A.* $ 811,765
458,500 Filinvest Land, Inc.* 154,610
30,888 Hocheng Group Corp. (G.D.R.)* 451,737
36,710 Hyundai Cement Co. 1,583,977
84,900 Metra Oy 3,406,653
1,000,000 Prism Cement, Ltd. 420,048
306,000 PT Indocement Tunggal Prakarsa 1,126,971
45,000 Tostem Corp. 1,520,827
21,750 Unitech, Ltd. 88,592
265,000 United Engineers Malaysia Bhd. 1,752,688
280,000 Wolseley Plc 1,630,236
--------
$12,948,104
--------
Machinery--0.7%
460,000 Powerscreen International Plc $ 2,167,409
--------
Producer Goods--3.0%
115,000 Autoliv AB $ 5,595,943
231,000 Minebea Co., Ltd. 1,501,329
33,333 Premier Instruments 198,354
378,000 PT Kabelmetal Indonesia 649,382
210,000 Shanghai Diesel Engine Co., Ltd. (B Shares) 138,600
72,000 Toto, Ltd. 1,106,056
--------
$ 9,189,664
--------
TOTAL CAPITAL GOODS $27,630,377
--------
CONSUMER DURABLES--6.6%
Consumer Durables--0.0%
2,000 TVS Whirlpool, Ltd. $ 2,546
--------
Motor Vehicles--6.6%
275,000 Catena AB $ 1,609,535
37,000 Comp. Interamer Auto 192,410
600,000 Fiat SpA di Risp (Non-convertible) 1,426,849
98,000 Honda Motor Co. 1,447,563
383,000 PT Astra International, Inc. 688,075
210,000 Perusahaan Otomobil Nasional Bhd 754,108
32,000 Valeo 1,773,090
690,000 AB Volvo (Series B) 12,115,411
--------
$20,007,041
--------
TOTAL CONSUMER DURABLES $20,009,587
--------
CONSUMER NON-DURABLES--9.1%
Agriculture & Food Manufacturing--0.8%
296 Hillsdown Holdings Plc $ 869
3,000 KCP, Ltd.* 9,642
640,000 Pioneer International, Ltd. 1,507,225
48,000 Siedleckie Zaklady Drobiarskie Drosed S.A. 482,567
500,000 Sokolowskie Zaklady Miesne* 491,979
--------
$ 2,492,282
--------
6
<PAGE>
Consumer Luxuries--0.6%
4,600 Sommer Allibert $ 1,759,082
--------
Retail Food--0.6%
567,710 Iceland Group Plc $1,670,694
--------
Retail Non-Food--1.3%
85,000 Best Denki Co., Ltd. $ 1,305,761
3,250 Galeries Lafayette 1,262,453
25,000 Hennes & Mauritz AB (B Shares) 1,446,200
--------
$ 4,014,414
--------
Retail--General--0.3%
204,000 Siam Makro Public Co., Ltd. $ 818,314
--------
Soft Drinks--1.1%
39,200 Buenos Aires Embotelladora (A.D.R.) $ 1,180,900
300,000 Cadbury Schweppes Plc 2,260,692
--------
$ 3,441,592
--------
Textiles/Clothes--4.4%
56,960 Chargeurs $11,808,151
81,000 Precot Mills 463,962
27,000 Precot Mills (New) 154,654
470,000 Shanghai Lianhua Fibre Corp. 150,400
1,066 Super Spinning Mills 4,850
79,867 Tuntex Distinct Corp. (G.D.S.)* 878,537
--------
$13,460,554
--------
TOTAL CONSUMER NON-DURABLES $27,656,932
--------
ENERGY--1.2%
Oil & Gas--1.2%
190,000 Engen, Ltd. $ 1,342,300
50,000 Repsol, S.A. 1,616,088
37,000 YPF S.A. (Class D) (A.D.R.) 749,250
--------
TOTAL ENERGY $ 3,707,638
--------
FINANCIAL--17.5%
Commercial Bank--10.1%
137,300 Bangkok Bank $ 1,502,066
672,000 Bank Inicjatyw Gospodadarczych 488,727
32,000 Bank Przemyslowo Handlowy 1,136,257
30,000 Bank Rozwoju Eksportu 414,545
32,000 Bank Slaski* 1,642,781
586,400 Dah Sing Financial Holdings, Ltd. 1,353,178
260,000 DCB Holdings Bhd 780,686
408,000 Development Bank of Singapore, Ltd. 4,774,157
1,725,000 Guoco Group, Ltd. 8,117,332
253,000 Hong Leong Bank Bhd* 800,730
440,000 Krung Thai Bank, Ltd. 1,577,796
630,000 PT Bank Dagang Nasional Indonesia 1,096,452
538,500 PT Bank International Indonesia 1,499,528
67,000 Sanwa Bank, Ltd. 1,433,028
796,000 Siam City Bank, Ltd. 1,007,901
100,000 Sumitomo Trust & Banking Co., Ltd. 1,370,753
180,000 United Overseas Bank 1,796,123
--------
$30,792,040
7
<PAGE>
- --------
Finance--Miscellaneous--2.2%
340,000 HSBC Holdings Plc $ 4,417,411
670,000 Lion Land Bhd 791,114
43,000 Orix Corp. 1,382,097
--------
$ 6,590,622
--------
Insurance--General--4.0%
220,000 Malayan Banking Bhd $ 1,812,132
270,000 Malaysian Assurance Alliance Bhd 958,612
2,313,000 National Mutual Asia, Ltd. 1,465,192
1,705 QBE Insurance Group, Ltd. 6,978
411,000 Skandia Forsakrings AB 7,887,880
--------
$12,130,794
--------
Real Estate--1.2%
799,000 DBS Land $ 2,672,893
754,000 PT Duta Anggada 575,702
200,000 PT Kawasan Industries Jababeka* 413,205
--------
$ 3,661,800
--------
TOTAL FINANCIAL $53,175,256
--------
SERVICES--2.5%
Broadcasting & Media--0.8%
200,905 News Corporation, Ltd. $ 1,066,006
520,000 Publishing & Broadcasting, Ltd. 1,500,907
3,200 Zee Telefilms, Ltd. 21,384
--------
$ 2,588,297
--------
Hotel & Restaurant--0.0%
900 Sterling Holiday Resorts $ 2,950
--------
Pharmaceuticals--1.7%
48,000 AB Astra $ 1,404,685
42,000 Jelfa* 544,428
288 Roche Holding AG 1,773,922
61,000 Yamanouchi Pharmaceutical 1,362,363
--------
$ 5,085,398
--------
TOTAL SERVICES $ 7,676,645
--------
TECHNOLOGY--15.8%
Computer Software--0.7%
1,780 SAP AG $ 2,227,596
--------
Electronics--14.4%
56,000 Canon, Inc. $ 873,501
395,000 Hitachi, Ltd. 3,813,471
91,000 Kyocera Corp. 6,914,387
101,000 Matsushita Electric Industrial Co. 1,563,486
293,000 NEC Corp. 3,116,100
97,000 Nichicon Corp. 1,169,158
249,000 Philips Electronics NV 9,910,035
2,940,000 QPL International Holdings, Ltd. 883,676
120,000 Rohm Co. 5,473,560
37,730 Samsung Electronics 5,707,618
7,466 Samsung Electronics (New Common 1) 1,119,196
8
<PAGE>
Electronics--Continued
1,000 Samtel Colour, Ltd. $ 1,527
31,000 Sony Corp. 1,494,594
97,056 Yageo Corp. (G.D.R.)* 1,540,764
--------
$ 43,581,073
--------
Telephone Networks--0.7%
118,000 ECI Telecom, Ltd. $ 1,991,250
TOTAL TECHNOLOGY $ 47,799,919
--------
TRANSPORTATION--3.4%
Air Transport--0.1%
435,500 Modiluft, Ltd.* $ 318,743
--------
Ships & Shipping--3.3%
71,000 Finnlines Oy $ 1,473,574
110,075 Great Eastern Shipping Co. Ltd. 172,515
58,000 IHC Caland* 1,549,900
141,500 Kvaerner Industrier 6,193,053
2,296,000 Shanghai Haixing Shipping 495,691
400,000 Shekou Zhaosheng Harbour Service Holdings Co.,
Ltd.* 212,015
--------
$ 10,096,748
--------
TOTAL TRANSPORTATION $ 10,415,491
--------
UTILITIES--12.9%
Electric Utility--0.2%
30,500 Huaneng Power International, Inc. (A.D.R.)* $ 518,500
--------
Telecommunications--12.7%
620 DDI Corp. $ 4,117,459
20,400 Telefonaktiebolaget LM Ericsson (Series B) 1,457,769
20,810 Korea Mobile Telecom Corp. 14,762,098
147,000 Nokia Corp. 6,813,721
56,000 Nokia Corp. (A.D.R.) 2,604,000
17,000 PT Indosat (A.D.R.) 671,500
21,800 Telecom Argentina Stet France (A.D.R.) 1,076,375
1,250,000 Telecom Italia SpA 3,269,103
21,000 Tele Danmark (A.D.R.) 598,500
1,000,000 Vodafone Group Plc 3,283,952
--------
$ 38,654,477
--------
TOTAL UTILITIES $ 39,172,977
--------
MISCELLANEOUS--6.1%
Conglomerates & Holding Companies--6.1%
3,050 BBC Brown Boveri AG $ 3,114,059
327,000 First Capital Corp., Ltd. 1,000,014
1,098,200 First Pacific Corp. 1,029,301
1,000,000 Grupo Sidek S.A. (Series B) 780,488
781,750 Jardine Strategic Holdings, Ltd. 2,736,125
512,000 Land & General Holdings Bhd 1,610,063
394,000 Mitsubishi Heavy Industries, Ltd. 2,705,040
1,277,000 Renong Bhd 2,362,800
815,000 Tomkins Plc 3,148,354
--------
TOTAL MISCELLANEOUS $ 18,486,244
--------
TOTAL COMMON STOCKS (Cost $257,319,968) $267,027,136
--------
9
<PAGE>
- --------
RIGHTS & WARRANTS--0.0%
149,750 Jardine Strategic Holdings, Ltd. 5/2/98 $ 75,624
--------
TOTAL RIGHTS & WARRANTS (Cost $0) $ 75,624
--------
UNITS--0.2%
16,000 British Aerospace Plc+* $ 181,998
13,300 DeBeers Centenary AG 336,091
TOTAL UNITS (Cost $474,996) $ 518,089
--------
TOTAL INVESTMENT IN SECURITIES (Cost
$281,826,925) (a) $296,086,590
--------
Principal
Amount
- ----------
TEMPORARY CASH INVESTMENT--2.5%
$7,718,000 Ford Motor Credit Co., 6.10%, 6/1/95 $ 7,719,308
--------
TOTAL TEMPORARY CASH INVESTMENT (Cost
$7,718,000) $ 7,719,308
--------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT--100%
(COST $289,544,925) $303,805,898
========
* Non-income producing security.
144A Security exempt from registration under rule 144A of Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At May 31, 1995,
the value of these securities amounted to $8,439,724 or 2.7% of total net
assets.
+ Partly-paid security--additional subscription payments of
(pound)16.00/share may be required at the issuer's discretion.
(a) At May 31, 1995, the net unrealized appreciation on securities based on
cost for federal income tax purposes of $283,347,565 was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value over tax
cost. $ 25,862,131
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost over
value (13,123,106)
--------
Net unrealized appreciation $ 12,739,025
========
Purchases and sales of securities (excluding temporary cash
investments) for the six months ended May 31, 1995, aggregated
$359,891,484 and $300,662,879, respectively.
</TABLE>
10
<PAGE>
PIONEER INTERNATIONAL GROWTH FUND
BALANCE SHEET--May 31, 1995
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash
investment of $7,719,308)
(cost $289,544,925; see Schedule of Investments and Note 1) $303,805,898
Cash 71,767
Foreign currencies, at value (Note 1) 2,208,038
Receivables--
Investment securities sold 6,057,097
Forward foreign currency settlement contracts--net (Notes
1, 5 and 6) 39,496
Forward foreign currency hedge contracts, open--net (Notes
1, 5 and 6) 2,099,092
Trust shares sold 1,905,143
Dividends, interest and foreign taxes withheld (Note 1) 927,947
Other 66,287
--------
Total assets $317,180,765
--------
LIABILITIES:
Payables--
Investment securities purchased, at value $ 2,231,169
Forward foreign currency hedge contracts, closed--net
(Notes 1, 5 and 6) 927,042
Trust shares repurchased 2,869,975
Accrued expenses (Notes 2, 3 and 4) 571,416
--------
Total liabilities $ 6,599,602
--------
NET ASSETS:
Paid-in capital (Note 1) $332,806,043
Accumulated undistributed net investment income (Note 1) 89,771
Accumulated net realized loss on investments and foreign
currency transactions
(Notes 1, 5 and 6) (38,662,576)
Net unrealized gain on investments (Note 1) 14,259,665
Net unrealized gain on forward foreign currency contracts
and other assets and liabilities denominated in foreign
currencies (Notes 1, 5 and 6) 2,088,260
--------
Total Net Assets $310,581,163
========
Net Asset Value Per Share:
Class A--(based on $283,768,691/14,450,671 shares of
beneficial interest outstanding-- unlimited number of
shares authorized) $19.64
========
Class B--(based on $26,812,472/1,377,503 shares of
beneficial interest outstanding-- unlimited number of
shares authorized) $19.46
========
Maximum Offering Price:
Class A $20.84
========
</TABLE>
11
<PAGE>
PIONEER INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS
For the Six Months Ended May 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME (NOTE 1):
Dividends (net of foreign taxes withheld of $355,732) $ 2,340,717
Interest 920,606
-------
Total investment income $ 3,261,323
--------
EXPENSES:
Management fees (Note 2) 1,492,968
Distribution fees (Note 4)
Class A 342,946
Class B 118,453
Transfer agent fees (Note 3)
Class A 392,660
Class B 38,830
Registration fees 116,773
Professional fees 52,810
Accounting (Note 2) 149,900
Custodian fees 351,800
Printing 23,032
Fees and expenses of nonaffiliated trustees 4,099
Miscellaneous 87,281
-------
Total expenses $ 3,171,552
--------
Net investment income $ 89,771
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments (Note 1) $(25,302,639)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies
(Notes 1, 5 and 6) (11,003,300) $(36,305,939)
------- --------
Net unrealized gain from:
Increase in net unrealized gain on investments (Note
1) $ 23,142,941
Increase in net unrealized gain on forward foreign
currency contracts and other assets and liabilities
denominated in foreign currencies (Notes 1, 5 and 6) 1,164,717 24,307,658
------- --------
Net loss on investments and other foreign currency
transactions $(11,998,281)
--------
Net decrease in net assets resulting from operations $(11,908,510)
========
</TABLE>
12
<PAGE>
PIONEER INTERNATIONAL GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1995 and the Year Ended November 30, 1994
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
May 31, November 30,
1995 1994
---------- ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 89,771 $ 1,881,843
Net realized gain (loss) on investments and foreign currency
transactions (36,305,939) 12,500,948
Increase (decrease) in net unrealized gain (loss) on
investments and foreign currency transactions 24,307,658 (13,963,466)
-------- ----------
Net increase (decrease) in net assets resulting from
operations $(11,908,510) $ 419,325
-------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
In excess of investment income:
Class A--net ($0.00 and $0.03 per share, respectively) $ -- $ (141,256)
From realized gains on investments:
Class A--net ($1.10 and $1.39 per share, respectively) (14,551,013) (6,409,195)
Class B--net ($1.10 and $0.00 per share, respectively) (1,141,813) --
-------- ----------
Decrease in net assets resulting from distributions to
shareholders $(15,692,826) $ (6,550,451)
-------- ----------
FROM TRUST SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 83,189,549 $314,570,209
Net asset value of shares issued to shareholders in
reinvestment of dividends 13,573,797 5,796,000
Cost of shares repurchased (61,849,753) (97,889,597)
-------- ----------
Increase in net assets resulting from trust share
transactions $ 34,913,593 $222,476,612
-------- ----------
Net increase in net assets $ 7,312,257 $216,345,486
NET ASSETS:
Beginning of period 303,268,906 86,923,420
-------- ----------
End of period (including accumulated undistributed net
investment income of $89,771 and $0, respectively) $310,581,163 $303,268,906
======== ==========
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended May 31, Year Ended November 30,
1995 1994
------------------------- ---------------------------
Shares Amount Shares Amount
---------- ----------- ---------- -------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold 3,795,438 $ 73,556,644 13,001,452 $290,807,757
Shares issued to shareholders in reinvestment
of distributions 629,149 12,633,315 275,866 5,796,000
Less shares repurchased (3,060,279) (58,827,352) (4,348,049) (95,939,185)
-------- --------- -------- -----------
Net increase 1,364,308 $ 27,362,607 8,929,269 $200,664,572
======== ========= ======== ===========
CLASS B*
Shares sold 498,388 $ 9,632,905 1,078,378 $ 23,762,452
Shares issued to shareholders in reinvestment
of distributions 47,077 940,482 -- --
Less shares repurchased (158,020) (3,022,401) (88,320) (1,950,412)
-------- --------- -------- -----------
Net increase 387,445 $ 7,550,986 990,058 $ 21,812,040
======== ========= ======== ===========
</TABLE>
*Class B shares were first publicly offered on April 4, 1994
13
<PAGE>
PIONEER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
Selected Data for a Share Outstanding for the Periods Presented
<TABLE>
<CAPTION>
Year
Six Months Ended April 1, 1993
Ended November to
May 31, 30, November 30,
1995 1994+ 1993 (a)
----------- ----------- -------------
<S> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 21.55 $ 20.91 $ 15.00
--------- --------- -----------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.01 $ 0.19 $ (0.03)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.82) 1.87 5.94
--------- --------- -----------
Total increase (decrease) from investment operations $ (0.81) $ 2.06 $ 5.91
Distributions to shareholders:
In excess of net investment income -- (0.03) --
From net realized gain (1.10) (1.39) --
--------- --------- -----------
Net increase (decrease) in net asset value $ (1.91) $ 0.64 $ 5.91
--------- --------- -----------
Net asset value, end of period $ 19.64 $ 21.55 $ 20.91
========= ========= ===========
Total return* (3.87%) 10.03% 39.40%
Ratio of net operating expenses to average net assets 2.06%** 1.95% 1.73% **
Ratio of net investment income (loss) to average net assets 0.12%** 0.84% (0.48%) **
Portfolio turnover rate 220.25%** 274.89% 184.69% **
Net assets, end of period (in thousands) $283,769 $282,033 $ 86,923
Ratios assuming no waiver of management fees or assumption of
expenses by PMC:
Net operating expenses -- -- 2.88% **
Net investment loss -- -- (1.63%)**
CLASS B ***
Net asset value, beginning of period $ 21.45 $ 21.06
--------- ---------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.05) $ 0.06
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (0.84) 0.33
--------- ---------
Total increase (decrease) from investment operations $ (0.89) $ 0.39
Distributions to shareholders from:
Net realized gain (1.10) --
--------- ---------
Net increase (decrease) in net asset value $ (1.99) $ 0.39
--------- ---------
Net asset value, end of period $ 19.46 $ 21.45
========= =========
Total return* (4.28%) 1.85%
Ratio of net operating expenses to average net assets 2.86%** 3.02%**
Ratio of net investment income (loss) to average net assets (0.62%)** 0.72%**
Porfolio turnover rate 220.25%** 274.89%
Net assets, end of period (in thousands) $ 26,812 $ 21,236
</TABLE>
(+) The per share data presented above is based upon average shares
outstanding and average net assets 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.
*** Class B shares were first publicly offered on April 4,1994.
(a) Certain reclassifications have been made to the 1993 balances to conform
with the 1994 presentation.
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS-May 31, 1995
1. Pioneer International Growth Fund (the Fund), a Massachusetts business
trust, is registered under the Investment Company Act of 1940 as a
diversified, open-end management company.
The Board of Trustees (the Trustees) has authorized the issuance of two
classes of the Fund, designated as Class A and Class B shares. Class B shares
were first publicly offered on April 4, 1994. Shares issued and outstanding
prior to April 4, 1994 were designated as Class A shares. The shares of each
class represent an interest in the same portfolio of investments of the Fund
and have equal rights to voting, redemption, dividends and liquidations,
except that each class of shares can bear different transfer agent and
distribution fees and have exclusive voting rights with respect to the
distribution plans that have been adopted by holders of Class A and Class B
shares, respectively.
The following is a summary of significant accounting policies consistently
followed by the Fund, which are in conformity with those generally accepted
in the investment company industry.
A. Security Valuation--Security transactions are recorded on the date the
securities are purchased or sold. Each day, 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 sales 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 will be valued at their fair value as determined by, or under the
direction of, the Trustees. Trading in foreign securities is substantially
completed each day at various times prior to the close of the New York Stock
Exchange. The value of such securities used in computing the net asset value
of the Fund's shares is determined as of such times. Temporary cash
investments are stated at cost plus accrued interest, which approximates
market value. Dividend income is recorded on the ex-dividend date, except
that certain dividends from foreign securities that are not known on the
ex-dividend date are recorded as soon as the Fund is informed of the
dividends. Interest income is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Gains and losses from sales of investments are calculated on the "identified
cost" method for both financial reporting and federal income tax purposes. It
is the Fund's practice 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. In addition, net realized capital gains on
securities in certain countries give rise to capital gains taxes. It is the
Fund's policy to provide a reserve against net unrealized gains for capital
gains taxes on certain foreign securities held by the Fund. The Fund paid no
capital gains taxes on gains realized on the sale of certain foreign
securities during the six months ended May 31, 1995.
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 (see Note 6).
C. Forward Foreign Currency Contracts--The Fund is authorized to enter 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 translation rates, and any resulting
unrealized gains or losses are recorded in the Fund's financial statements.
The Fund records realized gains or losses at the time a portfolio hedge is
offset by entry into a closing transaction or extinguished by delivery of the
currency. Risks may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of the contracts and
from unanticipated movements in the value of foreign currencies relative to
the U.S. Dollar (see Note 5).
D. Federal Taxes--It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if any,
to its shareholders. Therefore, no federal income tax provisions are
required.
15
<PAGE>
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with income tax rules.
Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
capital, depending on the type of book/tax differences that may exist.
E. Trust Shares--The Fund records sales and repurchases of its shares on the
trade date. Net losses, if any, as a result of cancellations are absorbed by
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned subsidiary of The Pioneer Group, Inc. (PGI). PFD retained
$221,001 in underwriting commissions on the sale of trust shares during the
six months ended May 31, 1995. Dividends and distributions to shareholders
are recorded as of the ex-dividend date. Dividends paid by the Fund, if any,
with respect to each class of shares are calculated in the same manner, at
the same time, on the same day and are in the same amount, except that Class
A and Class B shares can bear different transfer agent and distribution fees.
F. Class Allocations--Distribution expenses are calculated based on the
average daily net asset value attributable to Class A and Class B shares of
the Fund, respectively. Shareholders of Class A and Class B share all
expenses and fees paid to the transfer service organization, Pioneering
Services Corporation (PSC), for their services, which are allocated based on
number of accounts in each class and the ratable allocation of related
out-of-pocket expenses (see Note 3). Income, common expenses and realized and
unrealized gains (losses) are calculated at the Fund level and allocated
daily to each class of shares based on the respective percentage of adjusted
net assets at the beginning of the day.
2. Pioneering Management Corporation (PMC) is the Funds' 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 $300,000,000, 0.85% of the next
$200,000,000 and 0.75% of such assets in excess of $500,000,000.
In addition, under the management agreement, certain services and costs,
including accounting, regulatory reporting and insurance premiums, are paid
by the Fund. Included in Accrued expenses is $7,017 in accounting fees
payable to PMC at May 31, 1995.
3. PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in
Accrued expenses is $62,814 in transfer agent fees payable to PSC at May 31,
1995.
4. The Fund has adopted a Plan of Distribution for both Class A shares (Class
A Plan) and Class B shares (Class B Plan) in accordance with Rule 12b-1 under
the Investment Company Act of 1940, pursuant to which certain distribution
and service fees are paid to PFD.
Pursuant to the Class A Plan, the Fund reimburses PFD for its actual
expenditures to finance any activities primarily intended to result in the
sale of Class A shares or to provide services to holders of Class A shares.
Reimbursement for such expenditures, if any, may not exceed 0.25% of the
Fund's average net assets attributable to Class A shares. The Class B Plan
provides that the Fund may pay a distribution fee at an annual rate of 0.75%
of the Fund's average net assets attributable to Class B shares and may pay
PFD a service fee at the annual rate of 0.25% of the Fund's average daily net
assets attributable to Class B shares. Included in accrued expenses is
$154,340 in distribution fees payable to PFD at May 31, 1995.
Class B shares that are redeemed within six years of purchase are subject to
a contingent deferred sales charge (CDSC) at declining rates beginning at
4.0% of the lesser of the current market value at the time of redemption or
the original purchase cost of the shares being redeemed. Proceeds from the
CDSC are paid to PFD. For the six months ended May 31, 1995, CDSC in the
amount of $ 24,891 was paid to PFD.
16
<PAGE>
5. At May 31, 1995, the Fund had entered into various contracts that obligate
the Fund to deliver currencies at specified future dates. At the maturity of
a portfolio hedge, the Fund must make delivery of the currency.
Alternatively, prior to the settlement date of a portfolio hedge, the Fund
may close out such contract by entering into an offsetting hedge contract.
Open portfolio hedges at May 31, 1995, were as follows:
<TABLE>
<CAPTION>
In Net Unrealized
Contracts Exchange Settlement Appreciation/
Currency to Deliver For Date Value (Depreciation)
- --------- ------------ ---------- -------- ---------- --------------
<S> <C> <C> <C> <C> <C>
DEM 6,270,825 $ 4,269,643 2/21/96 $ 4,478,520 $ (208,878)
DEM 13,712,400 10,149,815 3/07/96 9,798,071 351,745
DEM 15,671,585 11,604,284 3/07/96 11,197,989 406,295
DEM 12,243,600 9,000,000 5/17/96 8,767,975 232,025
FRF 61,404,000 12,000,000 5/17/96 12,257,511 (257,511)
YEN 3,506,452,000 44,600,000 3/07/96 43,024,584 1,575,416
-------- -------- ------------
$91,623,742 $89,524,650 $2,099,092
======== ======== ============
</TABLE>
Included in Accumulated net realized loss on investments and foreign currency
transactions is $927,042, which represents the net realized loss on closed
but unsettled contracts totaling approximately $45,300,000.
At May 31, 1995, the gross forward foreign currency settlement contracts
receivable and payable were $3,366,053 and $3,326,557 respectively, resulting
in a net receivable of $39,496.
6. In accordance with Statement of Position 93-4 (SOP 93-4): Foreign Currency
Accounting and Financial Statement Presentation for Investment Companies, net
realized gains and losses on forward foreign currency transactions and other
assets and liabilities denominated in foreign currencies 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 amount actually received.
Further, as permitted under SOP 93-4, the effects of changes in foreign
currency exchange rates on investments in securities 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 securities.
17
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER INTERNATIONAL GROWTH
FUND:
We have audited the accompanying balance sheet of Pioneer International
Growth Fund, including the schedule of investments, as of May 31, 1995, and
the related statement of operations, statements of changes in net assets and
financial highlights for the periods presented. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of May 31, 1995, by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Pioneer International Growth Fund as of May 31, 1995, the results of its
operations, the changes in its net assets and financial highlights for the
periods presented, in conformity with generally accepted accounting
principles.
Boston, Massachusetts ARTHUR ANDERSEN LLP
June 30, 1995
18
<PAGE>
PIONEER INTERNATIONAL GROWTH FUND
60 State Street
Boston, Massachusetts 02109
OFFICERS
JOHN F. COGAN, JR., Chairman and President
DAVID D. TRIPPLE, Executive Vice President
NORMAN KURLAND, Senior Vice President
WILLIAM H. KEOUGH, Treasurer
JOSEPH P. BARRI, Secretary
TRUSTEES
JOHN F. COGAN, JR.
RICHARD H. EGDAHL, M.D.
MARGARET B.W. GRAHAM
JOHN W. KENDRICK
MARGUERITE A. PIRET
DAVID D. TRIPPLE
STEPHEN K. WEST
JOHN WINTHROP
INVESTMENT ADVISER
PIONEERING MANAGEMENT
CORPORATION
PRINCIPAL UNDERWRITER
PIONEER FUNDS
DISTRIBUTOR, INC.
CUSTODIAN
BROWN BROTHERS
HARRIMAN & CO.
LEGAL COUNSEL
HALE AND DORR
INDEPENDENT PUBLIC
ACCOUNTANTS
ARTHUR ANDERSEN LLP
SHAREHOLDER SERVICES AND TRANSFER AGENT
PIONEERING SERVICES CORPORATION
60 State Street
Boston, Massachusetts 02109
Please call Pioneer for information on:
Existing accounts, new accounts,
prospectuses, applications,
and service forms 1-800-225-6292
Fund yields and prices 1-800-225-4321
Toll-free fax 1-800-225-4240
Retirement plans 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
When distributed to persons who are not shareowners of the Fund, this report
must be accompanied by an official prospectus, which discusses the
objectives, policies, sales charges, and other information about the Fund.
0795-2591
((c))Pioneer Funds Distributor, Inc.
Pioneer
International
Growth Fund
Semiannual Report
May 31, 1995
