<PAGE>
Dear Fellow Shareowners,
Pioneer International Growth Fund completed its third fiscal year on November
30, 1995. It was a challenging time for markets outside the United States; on
the heels of 1994's rising U.S. interest rates came the devaluation of the
Mexican peso in December and the subsequent lack of confidence in Latin
American economies and markets. This anxiety reverberated into other corners
of the world, including emerging Asian markets. The earthquake in Kobe, Japan
in January added to the turmoil, as did ongoing political and fiscal
troubles. In response, many international investors turned toward relatively
stable and developed areas, namely Europe.
How Your Fund Performed
For the 12 months ended November 30, 1995, Pioneer International Growth Fund
posted the following results:
(bullet) Class A shares -- Net asset value was $21.21 per share on November
30, versus $21.55 one year earlier. Shareowners received a capital
gains distribution of $1.10 per share in December 1994. Assuming
reinvestment of the distribution, the Fund produced a 12-month total
return of 3.81% based on net asset value, and -2.13% based on
maximum public offering price.
(bullet) Class B shares -- Net asset value stood at $20.94 per share on
November 30, versus $21.45 one year earlier. Shareowners received a
capital gains distribution of $1.10 per share in December 1994.
Assuming reinvestment of the distribution, your Fund produced a
one-year total return of 3.00% if shares were held throughout the
period, and -0.90% if shares were redeemed at the end of the 12
months.
In comparison, the Morgan Stanley Capital International (MSCI) Europe,
Australia, Far East (EAFE) Index, an unmanaged measure of international stock
markets, returned 7.90% for the same 12-month period. Your Fund is more
widely diversified than the Index. For additional performance information,
please turn to pages 4 and 5.
Identifying Overseas Opportunities
To pursue your Fund's objective of long-term capital growth, your management
searches for value in both established and emerging markets. Many areas in
Europe, for example, are attractive investment choices because they tend to
offer a relatively high level of stability. However, developing countries,
specifically in Southeast Asia, are where your management thinks the greatest
growth opportunities will unfold. We believe the long-term growth potential
of these markets ultimately will overcome short-term considerations such as
currency fluctuations and economic and political instabilities, which are an
unavoidable part of international investing. The accompanying chart
summarizes the Fund's geographical distribution at the period's end.
Geographical Distribution
(Percentage of equity holdings as of Novemger 30, 1995)
*********************************[BAR CHART]*********************************
Argentina 0.9% Korea 12.1%
Australia 1.9% Malaysia 1.9%
Austria 0.3% Mexico 0.8%
Belgium 0.9% Netherlands 1.8%
China 0.5% Norway 1.6%
Colombia 0.2% Peru 0.2%
Denmark 0.9% Philippines 0.5%
Finland 4.9% Poland 2.3%
France 8.5% Portugal 0.7%
Germany 5.6% Singapore 1.1%
Hong Kong 3.1% Spain 1.6%
India 4.0% Sweden 6.3%
Indonesia 7.7% Switzerland 1.6%
Israel 1.1% Taiwan 4.0%
Italy 1.8% Thailand 4.4%
Japan 13.9% United Kingdom 2.9%
*****************************************************************************
<PAGE>
When conditions or events surface that may have a significant impact on a
country's market, we take steps to minimize the effect on your Fund. For
example, when the German deutschemark and Japanese yen appreciated
significantly versus the U.S. dollar, your management placed defensive
currency hedges on a portion of the Fund's German and Japanese holdings.
While the hedges worked against the Fund's return during the first half of
the period when the dollar was weakest, they augmented the Fund's results
when the dollar later strengthened. By actively addressing these and other
conditions, we hope to protect your Fund as best we can from short-term
byproducts of international investing.
European Markets Generally Solid Despite Slow Economic Growth
Performance in Europe generally was positive for the fiscal year, with help
from weakness in the U.S. dollar versus many European currencies. (Remember
that returns for U.S.-based investors generally increase when the dollar
weakens versus other currencies.) For example, German, French and Italian
stock markets generated gains when the dollar was weak, even though prices of
many individual stocks did not appreciate to any significant extent. Stock
performance did improve in these countries when the dollar started to rebound
later in the period. Many European companies became able to price goods for
export more competitively and profitably than their U.S. counterparts,
enhancing company earnings. The decision by Germany's Bundesbank (the major
driver of interest rate changes for the Continent) to lower short-term
interest rates further helped European markets by giving other countries
latitude to also lower rates and enhance growth potential.
European investments totaled 43% of the Fund's portfolio at fiscal year-end.
The strongest results over the year came from Scandinavia; the region's
attractive prices and strong earnings growth, as well as increased exports
and global demand, more than compensated for national finance problems.
Companies such as Nokia (Finland) and Ericsson (Sweden), producers of
cellular equipment, were impressive. Kvaerner (Norway) is a conglomerate and
Norway's largest privately owned enterprise; it has the largest shipbuilding
operation in Europe and leads the world in special carriers. Finally, we
expect Skandia Forsakrings (Sweden) to benefit from the anticipated growth of
private life insurance in Europe. On the other side of the coin, we sold
Volvo (Sweden), given the softening prospects for auto sales.
Technology and technology-related companies continued to benefit from strong
demand. Your Fund profited from holdings in Telecom Italia Mobile (Italy), an
operator of cellular networks, and SAP (Germany), a software firm with the
dominant position in the client-server segment of corporate information
systems. In other sectors, results have been dependent on individual company
strengths. An example is Carrefour (France), a hypermarket retailer that has
prospered, even as the retail industry has lagged due to low consumer
spending. While concerns remain about Europe's economic growth, we still see
many good valuations and will continue to pursue cost-conscious companies
with a global perspective.
Uncovering Value in Emerging Markets
Emerging markets did not perform as well as markets in Europe. Nonetheless,
we believe developing markets offer some of the world's best long-term
investment potential. Southeast Asian countries, along with Korea and Hong
Kong, made up 31% of the portfolio at the period's end, and generally are
experiencing low interest rates and inflation. They also have not undergone
currency debacles like Mexico and other Latin American countries. In fact,
smaller Asian countries were able to take advantage of the strong yen to sell
products and services more cheaply than Japanese competitors.
In Korea, growth has been fueled by strong performance in the electronics
industry. Two of your Fund's 10 largest holdings fall in this sector and have
performed particularly well: LG Electronics and Samsung Electronics. Another
strong area, in terms of consumer demand, is the cellular industry. Cellular
subscriber growth in Korea is among the highest in Asia, with an estimated
compound annual growth rate of 40% to the year 2000. Your Fund's largest
position, Korea Mobile Telecom, has taken advantage of this extensive demand
and dominates cellular operations. Finally, we see opportunities in banking,
where continuing deregulation should boost earnings. Your management likes
Shinhan Bank, a highly efficient and competitive company. Another bank we
like is Krung Thai Bank in Thailand. We think the company has good growth
potential because of Thailand's rapidly developing provincial areas. In
Indonesia, we see value in Bimantara Citra, a diversified conglomerate
benefiting from the country's cellular telecommunications, television
broadcasting and natural gas pipeline development. Hong Kong is a more
developed market and has been helped along by improving economic stability in
China and optimism over lower U.S. interest rates. As many holdings
appreciated there near the end of the period, however, we sold, taking gains
and re-deploying the assets in less-developed Asian markets.
2
<PAGE>
We limited the Fund's exposure to Latin America, which continued to
experience problems stemming from the devaluation of the Mexican peso in
December. In June, Brazil announced a devaluation of its currency, although
here the news was not entirely unexpected, given the country's trade deficit.
Nonetheless, Latin American currencies, notably the peso, remained weak
against the U.S. dollar because of ongoing economic and political concerns.
While investors have begun to return to the region, we think Latin America's
interest rates and price-to-earnings ratios remain too high. Your Fund has
minimal exposure there, 2% at the period's end. The largest portion of this
is in Argentina, which offers a more stable economy than its neighbors, along
with some attractive valuations.
Selective Investing in Japan
Japan, one of the most developed nations in the portfolio, had a tumultuous
year. There was a major earthquake in Kobe in January, the country's
political concerns worsened as 1995 progressed, and the yen hit historic
highs versus the U.S. dollar. While the Bank of Japan successfully weakened
the yen in the summer, the country suffered other major setbacks, namely real
estate problems and a brewing banking crisis. After beginning the year with
some optimism toward the Japanese market, your management lowered the Fund's
Japanese weighting as the year progressed. As a result, your Fund's
investments in Japan stood at 14% as of November 30, about the same as a year
ago, and down from a high of 28% in January. While your management expects to
limit exposure to Japan until we see more lasting signs of improvement, we
nonetheless have uncovered companies we think offer good value. Rohm is an
electrical component manufacturer poised to benefit from the weaker yen. We
also see potential in DDI Corp., a leading provider of cellular telephone
service.
Looking Ahead
The decline in U.S. interest rates should help emerging markets stay
attractive to investors even while lowering their own rates to enhance
economic growth. Our research shows that valuations are reasonable in many
developing markets, and liquidity has improved. While our bias remains toward
Southeast Asia, we will continue to monitor events in Latin America. If and
when valuations return to more reasonable levels, we will consider allocating
more of your Fund's assets there.
Established markets also show some encouraging signs. Europe, now in the
second year of its economic recovery, is following the pattern seen in the
United States. Companies are streamlining and restructuring to increase their
global competitiveness, and we expect to see earnings and profits grow at a
faster pace. The region's continued low interest rates and low inflation
should encourage investors and help push financial markets higher over the
next few years. As for Japan, we think high valuations and a variety of
lingering troubles limit its appeal over the short-term. On a more positive
note, the country continues to address its problems, offering signs of
promise. The government's implementation of expansionary fiscal and monetary
policies to stimulate the economy offers a good example. This strategy, as
well as successful attempts to weaken the yen, should ultimately be positive
for corporate profits and lead to a stronger stock market.
Your management remains optimistic about international investing; the
combination of more stable currencies and modest economic growth should
create an overall healthy environment for equity markets worldwide. We will
continue to pursue well-valued opportunities and expect the Fund's
investments in developing areas -- along with its solid footing in
established markets -- ultimately will prove rewarding to long-term
investors. The following pages contain your Fund's complete, audited
portfolio holdings and financial statements as of November 30, 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
January 10, 1996
3
<PAGE>
Growth of a $10,000 Investment*
This chart shows the growth of a $10,000 investment made in Pioneer
International Growth Fund Class A shares at public offering price, compared
with the growth of the MSCI EAFE Index.(+)
********************************[LINE CHART]********************************
PIONEER INTERNATIONAL GROWTH FUND CLASS A:
Average Annual Total Returns
(as of November 30, 1995)
Life of Fund
1 Year (3/25/93)
---------- -----------
Net Asset Value 3.81% 18.95%
Public Offering Price* -2.13 16.34
Pioneer Morgan Stanley
International Capital
Growth Fund International
Class A EAFE Index
3/31/93 9425 10000
4/31/93 9667 10952
5/31/93 10170 11186
6/31/93 10584 11014
7/31/93 10804 11402
8/31/93 11727 12020
9/31/93 11715 11752
10/31/93 12795 12117
11/30/93 13134 11060
12/31/93 14968 11861
1/28/94 15860 12867
2/28/94 15618 12834
3/28/94 14344 12284
4/28/94 14679 12808
5/31/94 14807 12737
6/28/94 14082 12920
7/28/94 14585 13047
8/31/94 15196 13359
9/28/94 15055 12941
10/28/94 15263 13375
11/30/94 14451 12735
12/28/94 14161 12818
1/28/95 13340 12328
2/28/95 13291 12296
3/28/95 12987 13066
4/28/95 13659 13561
5/31/95 13892 13403
6/28/95 14316 13172
7/28/95 15278 13995
8/31/95 15186 13465
9/28/95 15802 13731
10/28/95 15215 13366
11/30/95 15002 13741
*****************************************************************************
The Morgan Stanley Capital International (MSCI) Europe, Australia, Far East
(EAFE) Index is an unmanaged, capitalization-weighted index of international
stock markets. The Index includes: Australia, Austria, Belgium, Denmark,
Finland, France, Germany, Hong Kong, Italy, Japan, the Netherlands, New
Zealand, Norway, Singapore/Malaysia, Spain, Sweden, Switzerland, and the
United Kingdom. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Index.
* Reflects deduction of the maximum 5.75% sales charge at the beginning of
the period and assumes reinvestment of all distributions at net asset
value.
(+) Index comparison begins March 31, 1993.
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.
4
<PAGE>
Growth of a $10,000 Investment*
This chart shows the growth of a $10,000 investment made in Pioneer
International Growth Fund Class B shares, compared with the growth of the
MSCI EAFE Index.(+)
**********************************[LINE CHART]*********************************
PIONEER INTERNATIONAL GROWTH FUND CLASS B:
Average Annual Total Returns
(as of November 30, 1995)
Life of Fund
1 Year (4/4/94)
---------- -----------
Return If Held 3.00% 2.93%
Return If Redeemed* -0.90 0.56
Pioneer Morgan Stanley
International Capital
Growth Fund International
Class A EAFE Index
4/30/94 10000 10000
5/31/94 10087 9945
6/28/94 9584 10087
7/28/94 9922 10187
8/31/94 10329 10430
9/28/94 10229 10104
10/28/94 10366 10443
11/30/94 9803 9943
12/28/94 9605 10008
1/28/95 9046 9626
2/28/95 9002 9601
3/28/95 8795 10202
4/28/95 9239 10588
5/31/95 9388 10465
6/28/95 9673 10284
7/28/95 10319 10927
8/31/95 10247 10513
9/28/95 10652 10721
10/28/95 10252 10436
11/30/95 9717 10729
*****************************************************************************
The Morgan Stanley Capital International (MSCI) Europe, Australia, Far East
(EAFE) Index is an unmanaged, capitalization-weighted index of international
stock markets. The Index includes: Australia, Austria, Belgium, Denmark,
Finland, France, Germany, Hong Kong, Italy, Japan, the Netherlands, New
Zealand, Norway, Singapore/Malaysia, Spain, Sweden, Switzerland, and the
United Kingdom. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Index.
* Reflects deduction of the maximum 4.0% contingent deferred sales charge
at the end of the period and assumes reinvestment of all distributions.
(+) Index comparison begins April 30, 1994.
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.
5
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER INTERNATIONAL GROWTH FUND--NOVEMBER 30, 1995
Principal
Amount Value
---------- ----------
INVESTMENT IN SECURITIES--96.5%
CONVERTIBLE CORPORATE BONDS--1.4%
$1,255,000 Metro International Financial Bank, Ltd., 2.75%,
9/10/00 $ 1,298,925
1,294,000 Walsin Lihwa Co., 3.25%, 6/16/04 1,604,560
1,280,000 United Microelectronics Corp., Ltd., 1.25%, 6/8/04 1,702,400
--------
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $5,063,633) $ 4,605,885
--------
Shares
----------
PREFERRED STOCKS--9.2%
100,000 Banco Ganadero S.A. (Sponsored A.D.R.) $ 1,050,000
1,230 Hornbach Holding AG (Non-voting) 1,028,897
630,000 LG Electronics Inc. (G.D.R.) 8,016,750
28,000 LG Electronics Inc. (Non-voting) 713,034
41,949 Samsung Electronics Co., Ltd. 4,915,869
8,914 Samsung Electronics Co., Ltd. (New Preferred 1) 1,053,903
83,955 SAP AG (Non-voting) 13,244,750
--------
TOTAL PREFERRED STOCKS (Cost $24,866,013) $30,023,203
--------
COMMON STOCKS--85.9%
BASIC INDUSTRIES--8.5%
Chemicals--2.9%
159,000 Chemplast Sanmar Ltd.* $ 519,444
115,000 Grasim Industries Ltd. 1,667,574
7,200 Hoechst AG 1,863,090
585,000 Indo Gulf Fertilizers and Chemicals Corp., Ltd.
(G.D.R) 789,750
103,389 Polifarb-Cieszyn S.A. (Bearer) 414,130
127,350 Reliance Industries, Ltd. 780,997
107,700 Reliance Industries, Ltd. (G.D.R.) 1,583,190
149,000 Sekisui Chemical Co. 1,918,706
1,000 Yizheng Chemical Fibre Company, Ltd. 244
--------
$ 9,537,125
--------
Iron & Steel--2.4%
123,000 China Steel Corp. (G.D.S.)* $ 2,037,495
201,100 Usinor Sacilor* 2,897,207
355,500 Yodogawa Steel Works 2,795,636
--------
$ 7,730,338
--------
Paper Products--2.1%
318 Hansol Paper Co. (G.D.S.) $ 6,519
174,650 Kymmene Oy 4,752,413
40,030 Mo och Domsjo AB (Series B) 2,002,420
--------
$ 6,761,352
--------
Manufacturing--0.6%
7,200 Sommer-Allibert $ 1,887,030
--------
Tire & Rubber--0.5%
60,000 Debica S.A. $ 980,369
998,000 PT Andayani Megah 732,056
--------
$ 1,712,425
--------
TOTAL BASIC INDUSTRIES $27,628,270
--------
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
Shares Value
---------- ----------
CAPITAL GOODS--12.3%
Construction, Building Materials & Engineering--5.8%
106,000 Cemex, S.A. $ 340,438
117,000 Cheung Kong Holdings Ltd. 667,067
230,000 Elektrim Spolka Akcyjna S.A. 757,089
573,125 Filinvest Land, Inc.* 153,213
11,400 FLS Industries A/S 984,704
21,000 JGC Corp. 218,815
126,000 Kaneshita Construction Co. 1,610,145
156,750 Kvaerner AS 5,167,856
133,000 Legris Industries S.A.* 4,477,127
156,200 Powerscreen International Plc 848,678
1,000,000 Prism Cement, Ltd.* 250,752
980,500 PT Mulia Industrindo 2,608,512
4,050 Unitech, Ltd. 11,838
127,900 Wolseley Plc 888,710
2,300 Wolseley Plc** 15,981
--------
$19,000,925
--------
Machinery--3.9%
718,000 Hitachi, Ltd. $ 7,269,635
2,000 Mannesmann AG 643,899
159,050 Raymond, Ltd. (G.D.R.) 2,147,175
56,600 Stork N.V. 1,422,616
9,500 VA Technologie AG 1,095,833
--------
$12,579,158
--------
Producer Goods--2.6%
192,000 Canon, Inc. $ 3,378,354
39,000 Glory, Ltd. 1,449,130
4,256,000 M.C. Packaging, Ltd. 1,540,653
33,333 Premier Instruments* 167,167
378,000 PT Kabelmetal Indonesia 326,932
20,700 Samas-Groep N.V. 779,789
21,000 Sankyo Co., Ltd. 1,001,180
--------
$ 8,643,205
--------
TOTAL CAPITAL GOODS $40,223,288
--------
CONSUMER DURABLES--1.7%
Motor Vehicles--1.7%
15,000 Calsonic Corp. $ 103,804
223,200 Catena AB (Series A) 1,770,082
158,333 CIADEA S.A.* 681,138
55,000 Honda Motor Co., Ltd. 994,790
210,000 Shanghai Diesel Engine Co., Ltd. 81,060
167,000 Suzuki Motor Co., Ltd. 1,855,008
--------
TOTAL CONSUMER DURABLES $ 5,485,882
--------
CONSUMER NON-DURABLES--10.8%
Agriculture & Food Manufacturing--0.8%
10,800 Cerebos Pacifico, Ltd. $ 71,974
48,000 Drosed S.A. 552,052
296 Hillsdown Holdings Plc 700
640,000 Pioneer International, Ltd. 1,634,578
500,000 Sokolowskie Zaklady Miesne S.A. 396,589
--------
$ 2,655,893
--------
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
Shares Value
---------- ----------
Retail Food--1.6%
26,900 Buenos Aires Embotelladora S.A. $ 682,588
53,000 Centro Comerciales Pryca S.A. 1,032,178
352,000 Cifra S.A. de C.V. (Series B) 397,080
343,900 McBride Plc* 1,057,942
15,050 Panamerican Beverages, Inc. 485,363
835,000 PT Matahari Putra Prima 1,544,942
--------
$ 5,200,093
--------
Retail Non-Food--0.2%
14,200 Stockmann AB (Class B) $ 759,584
--------
Retail--General--0.8%
1,197,620 David Jones, Ltd.* $ 1,778,346
204,000 Siam Makro Public Co., Ltd 701,351
--------
$ 2,479,697
--------
Textiles/Clothes--7.4%
74,360 Chargeurs S.A. $16,091,691
11,500 Hennes & Mauritz AB (Series B) 714,696
975 Hugo Boss AG 808,849
33,000 Maruko Co., Ltd. 2,033,913
81,000 Precot Mills Ltd.* 275,068
26,667 Precot Mills Ltd. (New)* 90,559
270,000 Shanghai Lianhua Fibre Corp. (B Shares) 45,360
17,000 Shin Won Corp. 726,038
800 Super Spinning Mills 2,636
266 Super Spinning Mills (New) 877
101,000 Xebio Co., Ltd. 3,514,597
--------
$24,304,284
--------
TOTAL CONSUMER NON-DURABLES $35,399,551
--------
ENERGY--1.3%
Oil & Gas--1.3%
80,000 Bharat Petroleum Corp., Ltd. $ 522,711
63,000 Hindustan Petroleum Corp., Ltd. 512,738
45,000 Hindustan Petroleum Corp., Ltd.+ 154,750
10,600 Elf Aquitaine 742,533
50,000 Repsol S.A. 1,576,262
35,000 YPF S.A. (A.D.R.) 682,500
--------
TOTAL ENERGY $ 4,191,494
--------
FINANCIAL--12.7%
Commercial Bank--8.6%
56,000 AMMB Holdings Bhd. $ 579,425
330,000 Bank of Ayudhya Public Co., Ltd. 1,783,784
219,800 Bangkok Bank Ltd. 2,341,272
18,000 Banco Portugese de Investiment 200,956
32,000 Bank Przemyslowo Handlowy 958,160
30,000 Bank Rozwoju Exportu S.A. 472,338
32,000 Bank Slaski S.A. 1,840,175
672,000 Bank Inicjatyw Gospodarczych S.A. 351,791
654,400 Dah Sing Financial Holdings Ltd. 1,429,800
143,400 Development Bank of Singapore Ltd. 1,677,490
1,000 Hong Leong Bank Bhd. 2,582
641,000 Krung Thai Bank Public Co., Ltd. 2,369,356
3,807,500 PT Bank Dagang Nasional Indonesia 3,168,053
2,048,500 PT Bank International Indonesia 6,548,741
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
Shares Value
---------- ----------
Commercial Bank--Continued
44,000 Shinhan Bank $ 1,009,947
523,000 Siam City Bank, Ltd. 566,445
212,000 Thai Farmers Bank, Ltd. 1,887,440
340,000 Unitas Bank Ltd. 846,101
--------
$28,033,856
--------
Finance--Miscellaneous--0.7%
645,650 Industrial Credit and Investment Corp. of India Ltd. $ 1,452,458
694,000 Peregrine Investment Holdings Ltd. 910,691
--------
$ 2,363,149
--------
Insurance--General--2.7%
26,200 Corporacion Mapfre $ 1,475,462
528,750 Malaysia Assurance Alliance Bhd. 2,084,155
1,235,000 National Mutual Asia Ltd. 950,012
238,000 Pacific & Orient Bhd.* 663,717
1,766 QBE Insurance Group, Ltd. 7,946
131,700 Skandia Forsakrings AB 3,494,868
--------
$ 8,676,160
--------
Investment--0.2%
670,000 Lion Land Bhd.* $ 697,201
--------
Real Estate--0.5%
4,900 Housing Development Finance Corporation Ltd. $ 335,607
1,885,000 PT Duta Anggada Realty 990,585
200,000 PT Kawasan Industries Jababeka 319,685
--------
$ 1,645,877
--------
TOTAL FINANCIAL $41,416,243
--------
SERVICES--3.7%
Commercial--0.2%
6,700 Sophus Berendsen A/S (Class B) $ 723,412
--------
Broadcasting & Media--0.9%
520,000 Publishing & Broadcasting Ltd. $ 1,845,434
61,000 Tokyo Broadcasting System 1,019,365
--------
$ 2,864,799
--------
Pharmaceuticals--2.6%
78,000 Astra AB (Series A) $ 2,908,501
1,900 Ciba-Geigy AG 1,695,360
42,000 Jelfa* 471,386
444 Roche Holdings AG 3,356,935
--------
$ 8,432,182
--------
TOTAL SERVICES $12,020,393
--------
TECHNOLOGY--10.3%
Electronics--5.9%
330,300 Alphatec Electronics Public Co., Ltd. $ 4,056,546
5,100 Otra, N.V. 881,871
66,200 Philips Electronics N.V. 2,604,200
28,000 Rohm Co. 1,709,230
13,280 Samsung Electronics Co., Ltd. 2,514,282
1,083 Samsung Electronics Co., Ltd. (New Common 3) 200,959
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
Shares Value
---------- ----------
Electronics--Continued
500 Samtel Colour, Ltd. $ 537
367,350 Siliconware Precision Industries Co. (G.D.R.)* 5,693,925
163,469 Yageo Corporation (G.D.R.)* 1,430,763
--------
$19,092,313
--------
Telephone Networks--4.4%
119,800 Nokia Corp. (A Shares) $ 6,575,496
10,000 Nokia Corp. (A.D.R.) 542,500
311,260 Telefonaktielbologet LM Ericsson (Series B) 7,334,113
--------
$14,452,109
--------
TOTAL TECHNOLOGY $33,544,422
--------
TRANSPORTATION--1.0%
Air Transport--0.3%
250,000 Modiluft, Ltd.* $ 137,914
185,500 Modiluft, Ltd. (New)* 102,332
40,000 Qantas Airways Ltd. (A.D.R.) 144A 680,000
--------
$ 920,246
--------
Ships & Shipping--0.7%
440,000 China Merchants Shekou Port Service Co. Ltd.
(Class B) $ 161,553
116,000 Finnlines Oy 1,969,430
55,050 Great Eastern Shipping Co. 74,147
400 Great Eastern Shipping Co. (New) 539
2,296,000 Shanghai Haixing Shipping Co. 166,228
--------
$ 2,371,897
--------
TOTAL TRANSPORTATION $ 3,292,143
--------
UTILITIES--18.3%
Electric Utility--2.7%
405,200 CESC, Ltd. (G.D.R.)* $ 1,073,780
30,500 Huaneng Power International, Inc. (A.D.R.)* 484,188
245,000 Nichison Corp. 3,708,837
100,000 Shandong Huaneng Power (A.D.R.) 712,500
2,064,000 QPL International Holdings Ltd. 1,961,292
149,300 Union Electrica Fenosa S.A. 809,289
--------
$ 8,749,886
--------
Telecommunications--15.6%
7,300 Alcatel Alsthom S.A. $ 608,199
19,100,000 Champion Technology Holdings Ltd. 2,173,008
1,149 DDI Corp. 9,238,986
162,300 ECI Telecommunications Ltd. 3,448,875
30,000 Korea Mobile Telecommunication Corp. (G.D.S.) 1,143,750
20,245 Korea Mobile Telecommunication Corp. 17,703,374
4,608 LG Electronics Inc. (New Common 1) 168,020
112,500 Portugal Telecom S.A. (A.D.R.)* 2,109,375
39,500 PT Indonesian Satellite Corp. (A.D.R.) 1,352,875
604,000 Stet Societa Finanziaria Telefonica SpA 1,641,229
15,000 Telecom Argentina Stet France S.A. (A.D.R.) 656,250
1,433,400 Telecom Italia SpA 1,949,706
1,235,300 Telecom Italia Mobile SpA* 1,993,125
39,000 Tele Danmark A/S (A.D.R.) 1,087,125
1,606,407 Vodafone Group Plc 5,728,554
--------
$51,002,451
--------
TOTAL UTILITIES $59,752,337
--------
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
Shares Value
---------- ----------
MISCELLANEOUS--5.3%
Conglomerates & Holding Companies--5.3%
122,000 ALFA, S.A. $ 1,441,009
17,500 ASEA AB (B Shares) 1,689,420
27,800 Desc S.A. de CV (C Shares)* 368,350
9,000 Barco Industries 1,005,097
45,000 G.I.B. Holdings, Ltd. 1,786,167
647,000 First Capital Corp., Ltd. 1,743,070
9,148,500 PT Bimantara Citra* 6,710,636
692,000 Technology Resources Industries Bhd.* 1,936,618
163,697 Tompkins Plc 661,427
--------
TOTAL MISCELLANEOUS $ 17,341,794
--------
TOTAL COMMON STOCKS (Cost $285,957,163) $280,295,817
--------
Units
----------
WARRANTS--0.0%
149,750 Jardine Strategic Holdings, Ltd., 5/2/98 $ 39,684
--------
TOTAL WARRANTS (Cost $0) $ 39,684
--------
TOTAL INVESTMENT IN SECURITIES (Cost
$315,886,809) (a) (b) $314,964,589
--------
Principal
Amount TEMPORARY CASH INVESTMENTS--3.5%
----------
$6,409,000 Household Finance Corp., 5.65%, 12/01/95 $ 6,409,992
5,108,000 Prudential Funding Corp., 5.70%, 12/04/95 5,108,798
--------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $11,517,000) $ 11,518,790
--------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENTS--100%
(COST $327,403,809) $326,483,379
========
* Non-income producing security.
+ Partly-paid security--additional subscription payments of INR85.00 per
share will be required on December 15, 1995. Future subscription
payments thereafter may be required upon company's discretion.
** Restricted from re-sale until a later date to be determined by the
company. At November 30, 1995, the value of this security amounted to
$15,981 or 0.0% of total net assets.
144A Security exempted 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 November
30, 1995, the value of these securities amounted to $680,000 or 0.2% of
total net assets.
(a) At November 30, 1995, the net unrealized gain on investments based on
cost for federal income tax purposes of $316,908,595 was as follows:
Aggregate gross unrealized gain for the investments in
which there is an excess of value over tax cost $ 21,136,527
Aggregate gross unrealized loss for the investments in
which there is an excess of tax cost over value (23,080,533)
--------------
Net unrealized loss $ (1,944,006)
==============
(b) Investments by country of issue, as a percentage of total value of
investment in securities, is as follows:
Japan 13.9% India 4.0% Italy 1.8%
Korea 12.1 Taiwan 4.0 Norway 1.6
France 8.5 Hong Kong 3.1 Switzerland 1.6
Indonesia 7.7 United Kingdom 2.9 Spain 1.6
Sweden 6.3 Poland 2.3 Singapore 1.1
Germany 5.6 Malaysia 1.9 Israel 1.1
Finland 4.9 Australia 1.9 Others (individually
Thailand 4.4 Netherlands 1.8 less than 1%) 5.9
------
100.0%
======
Purchases and sales of securities (excluding temporary cash investments)
for the year ended November 30, 1995 aggregated $706,153,797 and
$646,282,405, respectively.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
PIONEER INTERNATIONAL GROWTH FUND
BALANCE SHEET--November 30, 1995
ASSETS:
Investment in securities, at value (including temporary cash
investments of $11,518,790) cost $327,403,809; see
Schedule of Investments and Note 1) $326,483,379
Cash 671,737
Foreign currencies, at value (Note 1) 6,949,174
Receivables--
Investment securities sold 18,795,536
Forward foreign currency portfolio hedge contracts,
open--net (Notes 1 and 6) 6,767,011
Forward foreign currency portfolio hedge contracts,
closed--net (Notes 1 and 6) 3,002,958
Trust shares sold 840,253
Dividends, interest and foreign taxes withheld (Note 1) 416,395
Other 57,672
----------
Total assets $363,984,115
----------
LIABILITIES:
Payables--
Investment securities purchased $ 20,101,599
Forward foreign currency settlement contracts--net
(Notes 1 and 6) 20,917
Trust shares repurchased 361,927
Due to affiliates (Notes 2, 3 and 4) 273,525
Accrued expenses 353,079
----------
Total liabilities $ 21,111,047
----------
NET ASSETS:
Paid-in capital (Note 1) $340,358,493
Accumulated net investment loss (Note 1) (6,767,011)
Accumulated net realized gain on investments and foreign
currency transactions (Notes 1 and 6) 3,414,450
Net unrealized loss on investments (Note 1) (922,220)
Net unrealized gain on forward foreign currency contracts and
other assets and liabilities denominated in foreign
currencies (Notes 1 and 6) 6,789,356
----------
Total Net Assets $342,873,068
==========
Net Asset Value Per Share:
Class A--(based on $308,487,766/14,547,300 shares of
beneficial interest outstanding--unlimited
number of shares authorized) $21.21
==========
Class B--(based on $34,385,302/1,642,361 shares of
beneficial interest outstanding--unlimited
number of shares authorized) $20.94
==========
Maximum Offering Price:
Class A $22.50
==========
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
PIONEER INTERNATIONAL GROWTH FUND
STATEMENT OF OPERATIONS
For the Year Ended November 30, 1995
INVESTMENT INCOME (Note 1):
Dividends (net of foreign taxes withheld of
$547,728) $ 4,132,272
Interest 1,544,722
----------
Total investment income $ 5,676,994
----------
EXPENSES:
Management fees (Note 2) 3,168,659
Distribution fees (Note 4)
Class A 728,979
Class B 275,280
Transfer agent fees (Note 3)
Class A 858,088
Class B 94,998
Registration fees 183,997
Professional fees 96,730
Accounting (Note 2) 314,600
Custodian fees 700,427
Printing 52,191
Fees and expenses of nonaffiliated trustees 8,674
Miscellaneous 140,785
----------
Total expenses $ 6,623,408
Less fees paid indirectly (Note 5) (57,756)
----------
Net expenses $ 6,565,652
----------
Net investment loss $ (888,658)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from:
Investments (Note 1) $ 6,962,427
Forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies (Notes 1 and 6) (7,070,023) $ (107,596)
---------- ----------
Net unrealized gain from:
Change in net unrealized gain on
investments (Note 1) $ 7,961,056
Change in net unrealized gain on forward
foreign currency contracts and other
assets and liabilities denominated in
foreign currencies (Notes 1 and 6) 5,865,813 13,826,869
---------- ----------
Net gain on investments and other foreign
currency transactions $13,719,273
----------
Net increase in net assets resulting from
operations $12,830,615
==========
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
PIONEER INTERNATIONAL GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended November 30, 1995 and November 30, 1994
Year Ended Year Ended
November 30, November 30,
1995 1994
------------- --------------
FROM OPERATIONS:
Net investment income (loss) $ (888,658) $ 1,881,843
Net realized gain (loss) on investments and
foreign currency transactions (107,596) 12,500,948
Change in net unrealized gain (loss) on
investments and foreign currency
transactions 13,826,869 (13,963,466)
------------ ------------
Net increase in net assets resulting from
operations $ 12,830,615 $ 419,325
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.00 and $0.03 per share,
respectively) $ -- $ (141,256)
Net realized gain:
Class A ($1.10 and $1.39 per share,
respectively) (14,551,013) (6,409,195)
Class B ($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 $ 157,292,002 $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 (128,399,426) (97,889,597)
------------ ------------
Increase in net assets resulting from trust
share transactions $ 42,466,373 $222,476,612
------------ ------------
Net increase in net assets $ 39,604,162 $216,345,486
NET ASSETS:
Beginning of year 303,268,906 86,923,420
------------ ------------
End of year (including accumulated net
investment loss of $6,767,011 and $0,
respectively) $ 342,873,068 $303,268,906
============ ============
Year Ended November 30, Year Ended November 30,
1995 1994
------------------------ ---------------------------
Shares Amount Shares Amount
--------- ------------ ------------ -------------
CLASS A
Shares sold 6,826,057 $138,243,337 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 (5,994,269) (121,564,361) (4,348,049) (95,939,185)
-------- ---------- ----------- -----------
Net Increase 1,460,937 $ 29,312,291 8,929,269 $200,664,572
======== ========== =========== ===========
CLASS B*
Shares sold 944,288 $ 19,048,665 1,078,378 $ 23,762,452
Shares issued to
shareholders in
reinvestment of
distributions 47,077 940,482 -- --
Less shares
repurchased (339,062) (6,835,065) (88,320) (1,950,412)
-------- ---------- ----------- -----------
Net increase 652,303 $ 13,154,082 990,058 $ 21,812,040
======== ========== =========== ===========
*Class B shares were first publicly offered on April 4, 1994.
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
PIONEER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS
Selected Data for a Share Outstanding for the Periods Presented
Year Year April 1, 1993
Ended Ended to
November 30, November 30, November 30,
1995 1994(+) 1993 ((a))
------------ ----------- -----------
CLASS A
Net asset value, beginning of
period $ 21.55 $ 20.91 $ 15.00
-------- -------- --------
Increase (decrease) from
investment operations:
Net investment income (loss) $ (0.04) $ 0.19 $ (0.03)
Net realized and unrealized
gain on investments and foreign
currency transactions 0.80 1.87 5.94
-------- -------- --------
Total increase from
investment operations $ 0.76 $ 2.06 $ 5.91
Distributions to shareholders
from:
Net investment income -- (0.03) --
Net realized gain (1.10) (1.39) --
-------- -------- --------
Net increase (decrease) in net
asset value $ (0.34) $ 0.64 $ 5.91
-------- -------- --------
Net asset value, end of period $ 21.21 $ 21.55 $ 20.91
======== ======== ========
Total return* 3.81% 10.03% 39.40%
Ratio of net operating expenses
to average net assets 2.00%(+++) 1.95% 1.73%**
Ratio of net investment income
(loss) to average net assets (0.23%)(+++) 0.84% (0.48%)**
Portfolio turnover rate 219.26% 274.89% 184.69%**
Net assets, end of period (in
thousands) $308,488 $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%)**
Ratios assuming reduction for
fees paid indirectly:
Net operating expenses 1.98% -- --
Net investment loss (0.21%) -- --
(+) The per share data presented above is based upon average shares
outstanding for the period presented.
(+++) Ratios assuming no reduction for fees paid indirectly.
* 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.
((a)) Certain reclassifications have been made to the 1993 balances to
conform with the 1994 presentation.
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
PIONEER INTERNATIONAL GROWTH FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Selected Data for a Share Outstanding for the Periods Presented
Year April 4, 1994
Ended to
November 30, November 30,
1995 1994(+)
------------ -------------
CLASS B***
Net asset value, beginning of period $21.45 $21.06
---------- ----------
Increase (decrease) from investment
operations:
Net investment income (loss) $(0.17) $ 0.06
Net realized and unrealized gain on
investments and foreign currency
transactions 0.76 0.33
---------- ----------
Total increase from investment
operations $ 0.59 $ 0.39
Distributions to shareholders from net
realized gain (1.10) --
---------- ----------
Net increase (decrease) in net asset value $(0.51) $ 0.39
---------- ----------
Net asset value, end of period $20.94 $21.45
========== ==========
Total return* 3.00% 1.85%
Ratio of net operating expenses to average
net assets 2.80%(+++) 3.02%**
Ratio of net investment income (loss) to
average net assets (1.04%)(+++) 0.72%**
Porfolio turnover rate 219.26% 274.89%
Net assets, end of period (in thousands) $34,385 $21,236
Ratios assuming reduction for fees paid
indirectly:
Net operating expenses 2.77% --
Net investment loss (1.01%) --
(+) The per share data presented above is based upon average shares
outstanding for the period presented.
(+++) Ratios assuming no reduction for fees paid indirectly.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
*** Class B shares were first publicly offered on April 4,1994.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS--November 30, 1995
1. Pioneer International Growth Fund (the Fund) is a Massachusetts business
trust registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The investment objective of the Fund
is to seek long-term growth of capital by investing in a portfolio consisting
primarily of foreign equity securities and of Depositary Receipts for such
securities.
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 Class A and Class B
shareholders, respectively.
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 on trade date.
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 are 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
values of such securities used in computing the net asset value of the Fund's
shares are determined as of such times. Temporary cash investments are valued
at amortized cost plus accrued interest, which approximates market value.
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund is informed of the ex-dividend date.
Interest income is recorded on the accrual basis net of unrecoverable foreign
taxes withheld at the applicable country rates.
In addition, net realized 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 anticipated capital gains taxes on such
securities held by the Fund. During the year ended November 30, 1995, the
Fund paid $22,045 in capital gains taxes on gains realized on the sale of
certain foreign securities.
Gains and losses on sales of investments are calculated on the
"identified cost" method for both financial reporting and federal income tax
purposes. It is the Fund's practice to select for sale those securities that
have the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
The Fund's investments in emerging markets or countries with limited or
developing markets may subject the Fund to greater degree of risk than in a
developed market. Risks associated with these developing markets,
attributable to political, social or economic factors, may affect the price
of the Fund's investments and income generated by these investments, as well
as the Fund's ability to repatriate such amounts.
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.
17
<PAGE>
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollar actually received. Further, the
effects of changes in foreign currency exchange rates on investments are not
segregated in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts--The Fund enters into forward
foreign currency contracts (contracts) for the purchase or sale of a specific
foreign currency at a fixed price on a future date as a hedge or cross-hedge
against either specific investment transactions (settlement hedges) or
portfolio positions (portfolio hedges). All contracts are marked to market
daily at the applicable exchange rates, and any resulting unrealized gains or
losses are recorded in the Fund's financial statements. The Fund records
realized gains 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 6).
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 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.
The Fund has reclassified $5,878,353 to accumulated net investment loss,
$5,878,683 to accumulated net realized gain on investments and foreign
currency transactions and $330 from paid-in capital. This reclassification
has no impact on the net asset value of the Fund and is designed to present
the Fund's capital accounts on a tax basis.
E. Trust Shares--The Fund records sales and repurchases of its trust
shares on the trade date. Net losses, if any, as a result of cancellations
are absorbed by Pioneer Funds Distributor, Inc. (PFD), the principal
underwriter for the Fund and an indirect subsidiary of The Pioneer Group,
Inc. (PGI). PFD earned $375,082 in underwriting commissions on the sale of
the Fund's trust shares during the year ended November 30, 1995.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions 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 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. Shareholders of Class A and Class B share all expenses and fees
paid to the transfer agent, 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 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.
G. Repurchase Agreements--The Fund may enter into repurchase agreements.
At the time the Fund enters into a repurchase agreement, the value of the
underlying security (collateral), including accrued interest, will be equal
to or exceed the value of the repurchase agreement, and in the case of
repurchase agreements exceeding one day, the value of the underlying
security, including accrued interest, is required during the term of the
agreement to be equal to or exceed the value of the repurchase agreement. The
underlying securities for all repurchase agreements are held in safekeeping
in the customer-only account of the Fund's custodian or at the Federal
Reserve Bank. If the seller defaults and the value of the collateral
declines, or if bankruptcy proceedings commence with respect to the seller of
the security, realization of the collateral by the Fund may be delayed or
limited. As of November 30, 1995, the Fund had no outstanding repurchase
agreements.
18
<PAGE>
2. Pioneering Management Corporation (PMC), the Fund's investment adviser,
manages the Fund's portfolio, and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 1.00% of the
Fund's average daily net assets up to $300,000,000; 0.85% of the next
$200,000,000; and 0.75% of excess over $500,000,000.
In addition, under the management agreement, certain other services and
costs, including accounting, regulatory reporting and insurance premiums, are
paid by the Fund. Included in due to affiliates is $6,861 and $5,522 in
management fees and accounting fees, respectively, payable to PMC at
November 30, 1995.
3. PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in
due to affiliates is $63,218 in transfer agent fees payable to PSC at
November 30, 1995.
4. The Fund adopted a Plan of Distribution for 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. These plans allow for Class A shares and
Class B shares to reimburse and compensate PFD for providing varying levels
of distribution services and other account maintenance services. The Class A
Plan and Class B Plan provide for reimbursement of PFD's distribution
services in an amount up to 0.25% and 0.75%, respectively, of the average
daily net assets of the respective classes of shares. The Fund may also
compensate PFD for additional services in an amount up to 0.25% of the Fund's
average daily net assets attributable to Class B shares. Included in due to
affiliates is $197,924 in distribution fees payable to PFD at November 30,
1995.
In addition, 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% based on the lower of cost or market value of shares being
redeemed. Proceeds from the CDSC are paid to PFD. For the year ended
November 30, 1995, CDSC in the amount of $71,275 was paid to PFD.
5. The Fund has entered into certain expense offset arrangements resulting in
a reduction in the Fund's total expenses. For the year ended November 30,
1995, the Fund's expenses were reduced by $57,756 under such arrangements.
6. At November 30, 1995, the Fund had entered into various contracts that
obligate the Fund to deliver currencies at specified future dates. At the
maturity of a contract, the Fund must make delivery of the foreign currency.
Alternatively, prior to the settlement date of a portfolio hedge, the Fund
may close out such contracts by entering into an offsetting hedge contract.
Open portfolio hedges at November 30, 1995, were as follows:
Net
Contracts In Exchange Settlement Unrealized
Currency to Deliver For Date Value Gain (Loss)
------ -------------- ------------ ---------- ------------ ------------
DEM 23,337,600 $17,000,000 5/17/96 $16,257,471 $ 742,529
DEM 7,738,940 5,500,000 2/21/96 5,369,789 130,211
DEM 9,560,800 6,800,000 12/04/96 6,800,000 --
FRF 160,480,000 32,000,000 10/11/96 32,058,812 (58,812)
JPY 1,150,976,500 14,639,742 3/07/96 11,469,210 3,170,532
JPY 1,636,390,000 19,400,000 7/22/96 16,617,449 2,782,551
----------- ----------- ----------
$95,339,742 $88,572,731 $6,767,011
=========== =========== ==========
Included in accumulated net realized loss on investments and foreign
currency transactions is $3,002,958, which represents the net realized gain
on closed but unsettled portfolio hedges totaling approximately $122,314,357.
At November 30, 1995, the gross forward foreign currency settlement
contracts receivable and payable were $23,988,889 and $24,009,806
respectively, resulting in net payable of $20,917.
19
<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 November 30, 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 November 30, 1995, by correspondence with the
custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Pioneer International Growth Fund as of November 30, 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
December 29, 1995
20
<PAGE>
TRUSTEES' FEES, PRINCIPAL SHAREHOLDERS AND SHARE OWNERSHIP OF TRUSTEES AND
OFFICERS (UNAUDITED)
The aggregate direct remuneration paid by the Fund to nonaffiliated trustees
and officers during the period ended November 30, 1995, including expenses
incurred in attending trustees meetings, was approximately $8,000. Fees of
trustees who are affiliated with or "interested persons" of Pioneering
Management Corporation and Pioneer Funds Distributor, Inc., investment
adviser and principal underwriter, respectively, of the Fund ($1,000 in 1995)
are reimbursed to the Fund by Pioneering Management Corporation in accordance
with the management contract with the Fund. At November 30, 1995, the
trustees and officers of the Fund owned beneficially 79,248 Class A shares of
the Fund (0.54% of the outstanding Class A shares). The Pioneer Group, Inc.,
the parent company of Pioneering Management Corporation and Pioneer Funds
Distributor, Inc., is a publicly held corporation of which Mr. Cogan,
Chairman and President of the Fund, owned approximately 15% of the
outstanding shares of capital stock at November 30, 1995.
21
<PAGE>
TAX TREATMENT OF DISTRIBUTIONS MADE DURING THE YEAR ENDED NOVEMBER 30, 1995
During the year ended November 30, 1995, the Fund paid the following
distributions to Class A and Class B shareholders:
Distribution Per Share
-----------------------------
From Net Realized Gain
-----------------------------
To Shareholders
of Record Payment Date Short-term Long-term
- ---------------- --------------- ------------- --------------
12/20/94 12/28/94 $1.06 $0.04
On a per share basis, the $1.06 distribution from the short-term capital gain
represents ordinary income.
Class A and Class B shareholders who elected to take the Capital Gain
Distribution in additional shares of the Fund should report the distribution
as explained above. The tax cost of the shares received on December 28, 1994
is $20.08 and $19.97 per share for Class A and Class B shares, respectively.
22
<PAGE>
<PAGE>
[BACK COVER]
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.
0196-2982
(c) Pioneer Funds Distributor, Inc.
[FRONT COVER]
Pioneer
International
Growth Fund
ANNUAL REPORT
NOVEMBER 30, 1995
