(PIONEER LOGO)
Pioneer
International Growth
Fund
ANNUAL REPORT 11/30/96
<PAGE>
T a b l e o f C o n t e n t s
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 10
Financial Statements 20
Notes to Financial Statements 26
Report of Independent Public Accountants 32
Tax Treatment of Distributions 33
Trustees' Fees and Share Ownership 34
Trustees, Officers and Service Providers 35
Programs and Services for Pioneer Shareowners 36
</TABLE>
<PAGE>
Pioneer International Growth Fund
LETTER FROM THE CHAIRMAN 11/30/96
Dear Shareowner,
-----------------------------------------------------------------------------
It is with pleasure that I introduce this report for Pioneer International
Growth Fund, covering the year ended November 30, 1996. We wish to welcome new
shareowners, particularly those who joined the Fund through Class C Shares,
which were introduced on January 31.
Your Fund had a good year, thanks in part to its increasing diversification
among a wide variety of countries. It was clearly an environment that rewarded
careful country and company selection, and the Fund's emphasis on buying
reasonably priced stocks proved particularly important. As U.S. investors have
learned, there can be significant risks for those who chase "hot" stocks; we
still think a stock should be purchased because it represents a good value for a
company with strong prospects over time. This approach is especially prudent
when investing in countries in varying stages of economic development or growth.
A final note. As you see, we've given your Fund's annual report a facelift. The
new, improved style reflects what shareowners told us they want to see in fund
reports. Our thanks to all of you who took the time to respond to our questions.
Now you'll find a Table of Contents and consistent, easy- to-read summaries of
portfolio information and performance. There's also a Portfolio Management
Discussion of the portfolio management team's insights into market conditions,
portfolio strategy and results. We hope you find them informative.
Please contact your investment representative, or us at 1-800-225-6292, if you
have questions about your investment in Pioneer International Growth Fund. Thank
you for your continued support.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer International Growth Fund
PORTFOLIO SUMMARY 11/30/96
P o r t f o l i o D i v e r s i f i c a t i o n
-----------------------------------------------------------------------------
(As a percentage of total investment portfolio)
(PIE CHART)
International Common Stocks 79%
Convertible
Securities 1%
[pie chart]
International
Preferred Stocks 3%
Short-Term Cash Equivalents 8% Depositary Receipts for
International Stocks 9%
G e o g r a p h i c a l D i s t r i b u t i o n
-----------------------------------------------------------------------------
(As a percentage of equity holdings)
Japan 11.7% Israel 1.9%
France 9.1% Argentina 1.8%
United Kingdom 8.5% Switzerland 1.8%
Thailand 5.9% Taiwan 1.5%
South Korea 5.6% Austria 1.2%
Italy 5.5% Denmark 1.2%
Hong Kong 5.4% Greece 1.2%
Indonesia 4.0% Portugal 1.2%
Sweden 3.9% Philippines 1.1%
Germany 3.5% Mexico 1.0%
Brazil 3.4% Peru 1.0%
India 3.2% Singapore 0.8%
Netherlands 2.8% Finland 0.7%
Malaysia 2.4% China 0.6%
Australia 2.3% Bermuda 0.5%
Norway 2.2% Turkey 0.5%
Spain 2.2% South Africa 0.4%
1 0 L a r g e s t H o l d i n g s
-----------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1. Canon, Inc. 6. Stet Societa Finanziaria
2.33% Telefonica SpA 1.56%
2. Nintendo Corp., Ltd. 1.87 7. Telecom Brasileiras SA 1.56
3. Korea Mobile
Telecommunication
Corp. 1.76 8. Medeva Plc 1.49
4. Astra AB (Series A) 9. Malaysian Assurance
1.62 Alliance Bhd. 1.42
5. Telecom Italia SpA 1.57 10. HSBC Holdings Plc 1.27
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer International Growth Fund
PERFORMANCE UPDATE 11/30/96 CLASS A SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net Asset Value
per Share 11/30/96 11/30/95
$23.39 $21.21
Distributions per Share Income Short-Term Long-Term
(11/30/95-11/30/96) Dividends Capital Gains Capital Gains
- $0.243 -
</TABLE>
I n v e s t m e n t R e t u r n s
- -------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer International Growth Fund at public offering price, compared to the
growth of the Morgan Stanley Capital International (MSCI) EAFE Index.
<TABLE>
<CAPTION>
<S> <C> <C>
Average Annual Total Returns
(As of November 30, 1996)
Period Net Asset Public Offering
Value Price*
Life-of-Fund 16.80% 14.93%
(3/25/93)
1 Year 11.40 5.01
</TABLE>
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvest ment of distributions at net asset value.
(MOUNTAIN CHART)
Growth of $10,000+
Pioneer MSCI
International EAFE
Growth Fund Index
3/93 9425 10000
5/93 10170 11180
8/93 11727 12006
11/93 13134 11040
2/94 15618 12802
5/94 14807 12697
8/94 15196 13307
11/94 14451 12678
2/95 13291 12232
5/95 13892 13323
8/95 15186 13373
11/95 15002 13637
2/96 16318 14293
5/96 17153 14744
8/96 16270 14426
11/96 16713 15241
+ Index comparison begins March 31, 1993. The Morgan Stanley Capital
International (MSCI) EAFE (Europe, Australasia, Far East) 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.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
3
<PAGE>
Pioneer International Growth Fund
PERFORMANCE UPDATE 11/30/96 CLASS B SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
-----------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net Asset Value
per Share 11/30/96 11/30/95
$22.89 $20.94
Distributions per Share Income Short-Term Long-Term
(11/30/95-11/30/96) Dividends Capital Gains Capital Gains
- $0.243 -
</TABLE>
I n v e s t m e n t R e t u r n s
------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer International Growth Fund, compared to the growth of the Morgan Stanley
Capital International (MSCI) EAFE Index.
<TABLE>
<CAPTION>
<S> <C> <C>
Average Annual Total Returns
(As of November 30, 1996)
Period If If
Held Redeemed*
Life-of-Fund 5.69% 4.65%
(4/4/94)
1 Year 10.45 6.44
</TABLE>
* Reflects deduction of the maximum applicable contingent deferred sales charge
(CDSC) at the end of the period and assumes reinvestment of distributions. The
maximum CDSC of 4% declines over six years.
(MOUNTAIN CHART)
Growth of $10,000+
Pioneer MSCI
International EAFE
Growth Fund Index
04/94 10000 10000
05/94 10087 9943
06/94 9584 10083
07/94 9922 10180
08/94 10329 10421
09/94 10229 10093
10/94 10366 10429
11/94 9803 9927
12/94 9605 9990
01/95 9046 9606
02/95 9002 9579
03/95 8795 10176
04/95 9239 10559
05/95 9388 10433
06/95 9673 10251
07/95 10319 10889
08/95 10247 10474
09/95 10652 10679
10/95 10252 10391
11/95 10102 10680
12/95 10247 11111
01/96 10835 11156
02/96 10966 11194
03/96 10956 11431
04/96 11694 11764
05/96 11506 11548
06/96 11411 11612
07/96 10777 11273
08/96 10884 11298
09/96 11011 11599
10/96 10660 11480
11/96 10857 11937
MSCI EAFE Index
+ Index comparison begins April 30, 1994. The Morgan Stanley Capital
International (MSCI) EAFE (Europe, Australasia, Far East) 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.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
4
<PAGE>
Pioneer International Growth Fund
PERFORMANCE UPDATE 11/30/96 CLASS C SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net Asset Value
per Share 11/30/96 1/31/96
$22.84 $22.46
Distributions per Share Income Short-Term Long-Term
(1/31/96-11/30/96) Dividends Capital Gains Capital Gains
- $0.243 -
</TABLE>
I n v e s t m e n t R e t u r n s
- ------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer International Growth Fund, compared to the growth of the Morgan Stanley
Capital International (MSCI) EAFE Index.
<TABLE>
<CAPTION>
<S> <C> <C>
Cumulative Total Returns
(As of November 30, 1996)
Period If If
Held Redeemed*
Life-of-Fund 2.75% 1.75%
(1/31/96)
</TABLE>
* Reflects deduction of the 1% contingent deferred sales charge (CDSC) at the
end of the period and assumes reinvestment of distributions.
(MOUNTAIN CHART)
Growth of $10,000
Pioneer MSCI
International EAFE
Growth Fund Index
1/31/96 10000 10000
2/29/96 10076 10034
3/31/96 10053 10247
4/30/96 10752 10545
5/31/96 10588 10351
6/30/96 10500 10409
7/31/96 9919 10105
8/31/96 10023 10127
9/30/96 10140 10397
10/31/96 9816 10290
11/30/96 10175 10700
The Morgan Stanley Capital International (MSCI) EAFE (Europe, Australasia, Far
East) 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.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
5
<PAGE>
Pioneer International Growth Fund
PORTFOLIO MANAGEMENT DISCUSSION 11/30/96
D e a r S h a r e o w n e r,
------------------------------------------------------------------------------
Pioneer International Growth Fund's fourth fiscal year concluded on November 30,
1996. The 12-month period generally was positive; the Morgan Stanley Capital
International (MSCI) EAFE (Europe, Australasia, Far East) Index, an unmanaged
benchmark of international stock market performance, returned 11.76% for the
fiscal year.
Pioneer International Growth Fund's one-year total return of 11.40% (Class A
Shares) was a bit below the figure turned in by the Index. Unlike the Index,
however, your Fund is more diversified, investing in the less-popular markets of
Korea, Thailand, Indonesia, Taiwan, Philippines and India, in addition to more
traditional countries. The Fund's holdings in major, established markets
generally were rewarding; however, poor results in Korea, Thailand and India -
due to assorted earnings downgrades and worries about export growth created by a
stronger U.S. dollar - somewhat offset the stronger-performing markets.
Investing for Opportunities, Diversification
Pioneer International Growth Fund invests in non-U.S. securities that, based on
our research, are undervalued. We consider factors that affect stocks at both
the country and corporate level, evaluating broad economic and political
conditions as well as individual company fundamentals. Of course, if we find a
stock that is an extremely good buy, we'll invest if we believe it will
eventually appreciate in price regardless of what the country's overall market
or economy is doing.
Our investing style keeps the portfolio broadly diversified and gives investors
a way to sample established and developing markets around the globe. In
addition, diversification helps minimize poor performance in one area with
potentially stronger results in another. We believe a diversified portfolio also
helps offset international investing risks, such as currency fluctuations, and
economic and political instabilities. Of course, we carefully monitor events
that could affect performance; for example,
6
<PAGE>
Pioneer International Growth Fund
we placed defensive currency hedges on a variety of the Fund's holdings when
their local currencies appreciated versus the U.S. dollar, or other major
currencies, for part of the period. In this way, we try to offset the impact
that varying currencies can have on portfolio holdings.
Slow Economy, Stronger Market Performance in Europe
European economies were subdued for much of the fiscal year, as corporate
restructurings and downsizings kept domestic consumer spending down. Much of the
strong performance was export-driven, fueled by demand from the United States,
particularly in the second half of the year when the dollar strengthened. Low
inflation and interest rates, and, to some extent, strong performance from the
U.S. market also gave European markets a lift. Overall, Continental markets
increased 12% for the 12 months. While short-term interest rates moved up in the
United Kingdom late in the fiscal year, its market remained strong, thanks to a
strengthening pound.
We think select opportunities exist throughout Europe, despite its uneven
economies. We added Forbo Holdings (Switzerland), a flooring and conveyor belt
manufacturer trading at very cheap valuations relative to the Swiss market;
Sidel (France), a global leader in the production of equipment used for making
plastic bottles; and Wassall (United Kingdom), a diversified industrial company
that has demonstrated its ability to make acquisitions while managing a diverse
portfolio of businesses.
Asian Emerging Markets Mixed
Results in emerging Asian markets varied; countries closely tied to U.S.
interest rates - Hong Kong, Malaysia, Indonesia, Taiwan and the Philippines (up
38%, 32%, 36% and 49%, respectively) - performed better than those that are not.
Hong Kong and Taiwan also benefited from optimism over a Chinese economic
recovery for 1997, the year China resumes control of Hong Kong. On the other
side of the coin, Korea, Thailand and India did not perform well for the period
(falling 32%, 23% and 4%, respectively, for the fiscal year). Nonetheless, our
conviction holds that Taiwan, Korea and
7
<PAGE>
Pioneer International Growth Fund
PORTFOLIO MANAGEMENT DISCUSSION 11/30/96 (continued)
India will eventually be noticed by value-seeking investors, especially since
their markets currently are trading at their lowest average price-to-earnings
ratios in years, while earnings remain at depressed levels. While we did
decrease some of the Fund's weighting in companies such as Korea Mobile
Telecommunication and Korea First Bank in order to put the money to use in
other, better-performing areas, we think our patience in these markets will
prove rewarding for the Fund.
Companies we added over the course of the year include State Bank of India, the
country's leading bank and most actively traded stock. We also continue to see
value in banks elsewhere in the region since they stand to benefit from growing
economies; we especially like Panin Bank (Indonesia) and HSBC Holdings (Hong
Kong). Hong Kong also offers attractive property stocks, thanks to a recovery in
the Chinese economy and a favorable supply and demand outlook for the next two
to three years. Two examples in the Fund's portfolio are Cheung Kong Holdings
and New World Development. Finally, China Steel, that country's leading producer
of steel, appreciated significantly after being added to the portfolio; we sold
after it reached our target price.
Latin America Gains Strength
Results in Latin America improved (its markets increased 22% as a group), thanks
in part to the strong U.S. market and impressive strength from Venezuela. We
continued to favor Argentina and Brazil because of better valuations and
stronger macroeconomic fundamentals, especially versus Chile and Mexico. Even
with the recovery of the Mexican peso, we think political concerns will continue
to weigh on its market. One company we especially like is Telecommunications
Brasileiras (Brazil), the leading telecommunications company that continues to
demonstrate excellent earnings potential at a reasonable valuation.
Selecting Value in Japan
Japan (down 5% for the fiscal year), in our view, remains overpriced, given its
continued slow economy and political uncertainties. While interest rates
8
<PAGE>
Pioneer International Grwoth
remain low as the government attempts to stimulate economic growth, the
country's profit outlook is weak over the near term. Your Fund's investments in
Japan stood at 12% at November 30, versus the 35% allocation for the MSCI EAFE
Index. Of course, good valuations did exist, although they were hard to come by
over the fiscal year. Our bias remained for exporters, including Canon and
Nintendo.
Looking Ahead
International markets offer investors a way to participate in companies doing
business all over the world. With a move toward a global economy, it makes sense
to take part in the growth potential that exists overseas. Clearly, short-term
setbacks and volatility are unavoidable byproducts of international investing.
On the other hand, poor performance in one market often is offset by strong
results in another, the benefit of diversification.
Regions around the world are working to become more competitive to attract
foreign investors. In Europe, it's the European Monetary Union, which would
create a single currency for member nations; in Japan, efforts are underway to
regulate the economy; and in many emerging markets, budget deficits and archaic
regulations are being addressed to help enhance competitiveness and entice
investors.
We believe international markets are, as a group, attractively valued,
particularly when viewed against the high-flying U.S. stock market. Pioneer
International Growth Fund gives you access to these countries and companies, all
while helping diversify your portfolio. We are encouraged by the vast array of
growth opportunities we see overseas, and we are optimistic the Fund will reward
patient investors. Thank you for your support.
Respectfully,
/s/ Norman Kurland,
Norman Kurland,
Portfolio Manager
9
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/96
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 92.3%
Convertible Corporate Bonds - 0.8%
$3,312,000 Bangkok Land, 4.5%, 10/13/03 $ 2,268,720
1,400,000 Republic of Italy Privatization Note (INA),
5.0%, 6/28/01 1,407,000
-------------
Total Convertible Corporate Bonds
(Cost $3,869,915) $ 3,675,720
-------------
Shares
PREFERRED STOCKS - 3.5%
92,000 Banco Comercial Portugues, 8%, Non-Cum.,
Conv. (Series A)* $ 4,841,500
55,800,000 Companhia Energetica de Minas Gerais 1,798,780
5,549 Samsung Electronics Co. (New Preferred 1) 209,456
33,100 SAP AG (Non-voting) 4,572,715
29,500 Telecom Brasileiras SA (Sponsored A.D.R.) 2,234,625
82,900,000 Unibanco 2,279,148
-------------
Total Preferred Stocks
(Cost $15,472,773) $15,936,224
-------------
COMMON STOCKS - 88.0%
Basic Industries - 3.3%
Chemicals - 0.7%
33,450 Grasim Industries Ltd. $ 359,577
255,350 Reliance Industries Ltd. 1,292,047
129,700 Reliance Industries Ltd. (G.D.R.) 1,494,793
-------------
$ 3,146,417
-------------
Containers - 0.5%
98,500 NV Koninklijke KNP BT $ 2,245,519
-------------
Iron & Steel - 1.3%
31,000 Boehler-Uddeholm AG $ 2,145,041
1,786,500 Sahaviriya Steel Industries Public Co. Ltd.* 629,530
4,850 Tata Iron & Steel Co., Ltd. 20,807
213,100 Usinor Sacilor 3,187,140
-------------
$ 5,982,518
-------------
Metals & Mining - 0.8%
78,000 Kloof Gold Mining Co., Ltd. $ 639,636
921,000 Orogen Minerals Ltd.* 1,971,537
5,300 Vaal Reefs Exploration & Mining Co., Ltd. 369,086
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
Pioneer International Growth Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Metals & Mining - (continued)
67,000 Vaal Reefs Exploration &
Mining Co., Ltd. (A.D.R.) $ 464,813
------------
$ 3,445,072
------------
Total Basic Industries $14,819,526
------------
Capital Goods - 8.3%
Construction, Building Materials & Engineering - 3.5%
195,000 Bouygues Offshore SA (Sponsored A.D.R.)* $ 2,291,250
21,500 Felten & Guillaume Energietechnik AG 2,425,075
7,400 Hollandsche Beton Groep NV 1,403,678
2,280,000 Kumagai Gumi Ltd. 2,580,186
69,000 Lafarge SA 4,357,645
18,050 Portland Valderrivas SA 1,099,318
176,000 Powerscreen International Plc 1,769,469
100 Prism Cement Ltd.* 14
1,150 Unitech Ltd. 1,722
2,300 Wolseley Plc 17,652
------------
$15,946,009
------------
Machinery - 2.3%
6,730 GEA AG $ 2,021,363
452,000 Sasib SpA Di Risp 860,399
113,600 Stork NV 3,775,903
1,800,000 PT United Tractors 3,837,953
------------
$10,495,618
------------
Producer Goods - 2.5%
11,700 IWKA AG $ 2,574,730
3,206,000 M.C. Packaging Ltd. 1,046,967
14,550 Schmalbach Lubeca AG* 3,178,260
68,000 Sidel, SA 4,333,531
------------
$11,133,488
------------
Total Capital Goods $37,575,115
------------
Consumer Durables - 1.8%
Motor Vehicles - 1.3%
300 Ashok Leyland Ltd. $ 722
758,000 Cowie Group Plc 5,046,537
560,000 Magneti Marelli SpA 648,456
------------
$ 5,695,715
------------
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/96 (continued)
Shares Value
------------
Office Furnishings - 0.5%
57,641 Samas-Groep NV $ 2,303,768
------------
Total Consumer Durables $ 7,999,483
------------
Consumer Non-Durables - 9.0%
Agriculture & Food Manufacturing - 0.5%
61,000 Louis Dreyfus Citrus* $ 2,063,958
------------
Cosmetics - 1.1%
1,451,900 McBride Plc $ 3,344,154
141,000 Shiseido Co., Ltd. 1,695,961
------------
$ 5,040,115
------------
Retail Food - 1.4%
3,430,000 Dairy Farm International Holdings Ltd. $ 2,212,350
270,000 Kwik Save Group Plc 1,366,342
41,100 Panamerican Beverages Inc. 1,921,425
430,000 Standard Foods Taiwan Ltd.* 1,008,967
------------
$ 6,509,084
------------
General Retail - 4.3%
46,200 Autobacs Seven Co., Ltd. $ 3,427,480
51,000 Makro Atacadista SA (G.D.R.)* 420,750
444,800 Merloni Elettrodomestici SpA 880,443
5,150 Forbo Holdings AG 2,093,978
110,700 Nintendo Corp., Ltd. 7,823,838
2,069,000 PT Matahari Putra Prima 2,338,102
426,000 Siam Makro Public Co., Ltd. 1,851,412
43,500 Zag Industries Ltd.* 701,438
------------
$19,537,441
------------
Textiles - 1.7%
32,300 Chargeurs International SA* $ 1,440,281
160,000 Marzotto & Figli SpA 1,002,903
100 Precot Mills Ltd. 249
68,755 Shin won Corp. 1,675,434
50 Super Spinning Mills 109
16 Super Spinning Mills (New)* 35
107,000 Xebio Co., Ltd. 3,710,711
------------
$ 7,829,722
------------
Total Consumer Non-Durables $40,980,320
------------
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
Pioneer International Growth Fund
Shares Value
------------
Energy - 0.9%
Oil & Gas - 0.9%
28,300 Elf Aquitaine SA $ 2,470,218
45,000 Hindustan Petroleum Corp., Ltd. 403,428
57,000 YPF S.A. (Class D) (Sponsored A.D.R.) 1,325,250
------------
Total Energy $ 4,198,896
------------
Financial - 26.6%
Commercial Banks - 13.2%
480,000 Australia & New Zealand Banking Group Ltd. $ 3,152,857
167,400 Banco Wiese Ltd. (Sponsored A.D.R.) 962,550
1,644,500 PT Bank Dagang Nasional 1,630,474
3,110,000 PT Bank Negara (Local Shares)* 1,558,316
1,680,000 Christiania Bank Og Kreditkasse 5,156,747
520,590 Commercial Bank of Korea 3,592,225
85,000 Credit National 4,940,291
30,000 CS Holdings AG 3,193,326
188,400 Development Bank of Singapore Ltd. 2,431,401
4,490,500 First Bangkok City Bank Public Co., Ltd. 5,010,836
618,000 Grupo Financiero Banamex Accival S.A. de C.V.
(Class L)* 1,120,502
265,330 Hanil Bank 1,768,760
246,000 HSBC Holdings Plc 5,310,424
2,130 Julius Baer Holding AG 2,287,687
479,250 Korea First Bank* 2,775,077
833,000 Krung Thai Bank Public Co., Ltd. 2,380,885
1,160,000 PT Pan Indonesia Bank 1,273,774
4,352,000 Siam City Bank Public Co., Ltd. 5,111,881
206,000 Skandia Enskilda Banken 1,916,493
29,000 State Bank of India Ltd. 177,181
166,000 State Bank of India Ltd. (G.D.R.)* 2,701,650
42,000 Svenska Handelbanken 1,150,342
------------
$59,603,679
------------
Financial Services - 2.6%
38,000 Compagnie Bancaire SA $ 4,319,752
91,000 Housing and Commercial Bank (New Common 1) 1,600,774
1,943,000 MBF Capital Bhd. 3,044,828
661,000 National Finance & Securities Co., Ltd. 1,514,007
6,300 Shohkoh Fund 1,382,792
------------
$11,862,153
------------
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/96
Shares Value
------------
Misc. Finance - 2.2%
1,559,500 PT Bimantara Citra $ 2,144,728
192,360 Cho Hung Bank Ltd. 1,576,101
888,271 Industrial Credit & Investment Corp. of India Ltd. 1,299,260
180,000 Industrial Credit & Investment Corp. of India
Ltd. (G.D.R.)* 1,552,500
28,000 Nichiei Co., Ltd. 1,964,179
100 SCICI Ltd. 62
767,000 Peregrine Investment Holdings Ltd. 1,418,533
------------
$ 9,955,363
------------
Investments - 1.2%
440,000 Dhana Siam Finance & Securities Public Co., Ltd. $ 1,335,134
493,000 Jardine Matheson Holdings Ltd. 3,253,800
357,000 Pacific & Orient Bhd. 911,219
------------
$ 5,500,153
------------
Insurance - 5.7%
128,000 Assurances Generales de France $ 4,188,850
26,200 Corporacion Mapfre 1,383,602
2,960 Corporacion Mapfre (Class E) 156,315
1,550,000 INA SpA 2,157,891
2,155,000 PT Lippo Life Insurance 1,792,004
1,201,000 Malaysian Assurance Alliance Bhd. 5,940,839
1,255,000 National Mutual Asia Ltd. 1,144,303
873,000 National Mutual Holdings Ltd.* 1,229,277
975,000 Reinsurance Australia Corp. 3,491,779
148,200 Skandia Forsakrings AB 4,224,516
------------
$ 25,709,376
------------
Real Estate - 1.7%
290,000 Cheung Kong Holdings Ltd. $ 2,550,440
690,000 New World Development Co., Ltd. 4,662,765
462,900 Property Perfect Public Co., Ltd. 797,463
------------
$ 8,010,668
------------
Total Financial $120,641,392
------------
Services - 9.4%
Commercial - 0.5%
114,000 Loxley Public Co., Ltd $ 1,098,021
172,800 PT Tigaraksa Satria 260,674
751,000 PT Wicaksana Overseas International 848,678
------------
$ 2,207,373
------------
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
Pioneer International Growth Fund
Shares Value
------------
Broadcasting & Media - 1.1%
25,700 Benesse Corp. $ 1,620,070
78,000 Central European Media Enterprises Ltd.* 2,184,000
308,000 Television Broadcasting Ltd. 1,183,083
------------
$ 4,987,153
------------
Health & Personal Care - 0.5%
1,015,000 TC Group Plc $ 2,457,297
------------
Hotel & Restaurants - 0.2%
205,000 Overseas Union Enterprise Ltd. $ 1,008,556
------------
Pharmaceuticals - 4.5%
141,000 Astra AB (Series A) $ 6,758,261
57,000 Eisai Co. Ltd. 1,120,983
1,440,000 Medeva Plc 6,246,133
118,000 Takeda Chemical Industries 2,310,272
629,500 PT Tempo Scan Pacific 979,819
60,000 Teva Pharmaceutical Industries Ltd. (Sponsored
A.D.R.) 2,775,000
------------
$ 20,190,468
------------
Publishing - 1.5%
295,000 Arnoldo Mondadori Editore SpA $ 2,476,824
230,000 Schibsted ASA 4,192,895
------------
$ 6,669,719
------------
Misc. Sevices - 1.1%
176,000 ISS International Service System AS (Class B) $ 4,867,901
------------
Total Services $ 42,388,467
------------
Technology - 10.3%
Business Machines - 2.7%
463,000 Canon, Inc. $ 9,755,927
101,905 Esselte AB (Series B) 2,336,018
------------
$ 12,091,945
------------
Electronics - 6.9%
51,000 Alcatel Alsthom SA $ 4,634,145
38,800 Austria Micro Systeme International AG 2,917,751
434,900 K.R. Precision Plc 2,843,652
49,000 Philips Electronics NV 1,981,147
36,000 Rohm Co. Ltd. 2,212,467
29,610 Samsung Display Devices Co. 1,878,044
12,448 Samsung Electronics Co. (New Common 1) 905,470
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/96 (continued)
Shares Value
Electronics - (continued)
300 Samtel Color Ltd. $ 118
34,000 Secom Co. 2,050,746
912,000 Siliconware Precision Industries Co. Ltd.* 1,791,586
147,360 Siliconware Precision Industries Co. Ltd. (G.D.R.)* 1,458,864
71,000 Sony Corp. 4,544,249
592,500 Tatung Co., Ltd. 1,207,050
37,000 TDK Corp. 2,384,372
60,620 Yageo Corp. (G.D.R.)* 625,144
------------
$31,434,805
------------
Telephone Networks - 0.7%
54,800 Nokia Corp. (Class A) $ 3,034,258
------------
Total Technology $46,561,008
------------
Transportation - 0.3%
Air Transport - 0.0%
203,500 Modiluft Ltd. $ 17,375
185,500 Modiluft Ltd. (New)* 15,838
------------
$ 33,213
------------
Ships & Shipping - 0.3%
1,470,050 Great Eastern Shipping Co. $ 1,172,847
400 Great Eastern Shipping Co. (New)* 319
------------
$ 1,173,166
------------
Total Transportation $ 1,206,379
------------
Utilities - 15.6%
Electric Utility - 2.7%
129,000 C.E.S.C. Ltd. (G.D.R.) $ 109,650
65,000 Centrais Electricas Brasileiras SA (Sponsored A.D.R.) 1,072,663
376,775 Iberdrola SA 4,342,526
784,950 Scottish Power Plc 4,447,346
251,000 Shandong Huaneng Power Co. Ltd. (Sponsored A.D.R.) 2,415,875
------------
$12,388,060
------------
Telecommunications - 12.9%
110,000 Cable & Wireless Plc $ 880,296
13,597,568 Champion Technology Holdings Ltd. 2,391,709
394 DDI Corp. 2,819,227
118,700 ECI Telecommunications Ltd. 2,374,000
100,000 Grupo Iusacell S.A. (Series L) (Sponsored A.D.R.)* 937,500
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
Pioneer International Growth Fund
Shares Value
Telecommunications - (continued)
153,000 Hellenic Telecommunications Organization SA $ 2,655,482
95,720 Intracom SA 2,327,833
7,260 Korea Mobile Telecommunication Corp. 7,349,972
470,000 Mahanagar Telephone Nigam Ltd. 2,835,368
1,340,000 Olivetti SpA* 471,246
1,534,000 Stet Societa Finanziaria Telefonica SpA 6,518,184
70,600 Tadiran Ltd. (Sponsored A.D.R.) 1,879,725
98,000 Telecom Argentina Stet-France SA (Class B)
(Sponsored A.D.R.) 3,858,750
101,000,000 Telecommunications Brasileiras SA 6,501,936
2,778,400 Telecom Italia SpA 6,544,529
94,000 Telefonica de Argentina SA (Class B) (Sponsored
A.D.R.) 2,397,000
102,000 Telefonica de Espana 2,233,252
164,800 Telefonica del Peru SA (Class B) (Sponsored
A.D.R.) 3,193,000
------------
$ 58,169,009
------------
Total Utilities $ 70,557,069
------------
Miscellaneous - 2.5%
Conglomerates & Holdings - 2.5%
628,000 Benpres Holdings Corp. (G.D.R.)* $ 4,741,400
69,075,000 Net Holdings AS 1,990,926
946,400 Wassall Plc 4,542,656
------------
Total Miscellaneous $ 11,274,982
------------
Total Common Stock
(Cost $392,679,420) $398,202,637
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $412,022,108)(a) $417,814,581
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/96 (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
TEMPORARY CASH INVESTMENTS - 7.7%
Commercial Paper - 7.7%
$11,987,000 Chevron Oil Finance Co., 5.25%, 12/2/96 $ 11,987,000
10,937,000 Exxon Credit Corp., 5.28%, 12/3/96 10,937,000
6,180,000 Ford Motor Credit Co., 5.38%, 12/4/96 6,180,000
5,714,000 General Electric Capital Corp., 5.45%, 12/5/96 5,714,000
-------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $34,818,000) $ 34,818,000
-------------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY
CASH INVESTMENTS - 100%
(Cost $446,840,108)(b) $452,632,581
-------------
</TABLE>
* Non-income producing security.
(a) Distribution of investments by country of issue, as a percentage of
total equity holdings, is as follows:
<TABLE>
<CAPTION>
<S> <C>
Japan 11.7%
France 9.1
United Kingdom 8.5
Thailand 5.9
South Korea 5.6
Italy 5.5
Hong Kong 5.4
Indonesia 4.0
Sweden 3.9
Germany 3.5
Brazil 3.4
India 3.2
Netherlands 2.8
Malaysia 2.4
Australia 2.3
Norway 2.2
Spain 2.2
Israel 1.9
Argentina 1.8
Switzerland 1.8
Taiwan 1.5
Austria 1.2
Greece 1.2
Denmark 1.2
Portugal 1.2
Philippines 1.1
Peru 1.0
Mexico 1.0
Others (individually less than 1%) 3.5
-------------
100.0%
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
Pioneer International Growth Fund
(b) At November 30, 1996, the net unrealized gain on investments based on cost
for federal income tax purposes of $447,573,290 was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $38,845,479
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (33,786,188)
--------------
Net unrealized gain $ 5,059,291
--------------
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
year ended November 30, 1996, aggregated $713,334,757 and $644,552,271,
respectively.
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
Pioneer International Growth Fund
BALANCE SHEET 11/30/96
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary
cash investments of $34,818,000) (cost $446,840,108) $452,632,581
Cash 666,721
Foreign currencies, at value 2,166,814
Receivables -
Investment securities sold 2,869,909
Fund shares sold 2,539,894
Dividends, interest and foreign taxes withheld 767,693
Forward foreign currency portfolio hedge contracts,
open - net 496,645
Forward foreign currency portfolio hedge contracts,
closed - net 218,171
Other 4,688
--------------
Total assets $462,363,116
--------------
LIABILITIES:
Payables -
Investment securities purchased $ 6,963,525
Fund shares repurchased 362,679
Forward foreign currency settlement contracts - net 26,896
Due to affiliates 673,384
Accrued expenses 246,540
--------------
Total liabilities $ 8,273,024
--------------
NET ASSETS:
Paid-in capital $416,935,951
Accumulated undistributed net investment income 4,642,854
Accumulated undistributed net realized gain on investments
and foreign currency transactions 26,225,619
Net unrealized gain on investments 5,792,473
Net unrealized gain on forward foreign currency contracts
and other assets and liabilities denominated in foreign
currencies 493,195
--------------
Total net assets $454,090,092
--------------
Net Asset Value Per Share:
(Unlimited number of shares authorized)
Class A (based on $378,956,363/16,204,755 shares) $ 23.39
--------------
Class B (based on $69,055,554/3,016,566 shares) S 22.89
--------------
Class C (based on $6,078,175/266,108 shares) $ 22.84
--------------
Maximum Offering Price:
Class A $ 24.82
--------------
The accompanying notes are an integral part of these financial statements.
</TABLE>
20
<PAGE>
Pioneer International Growth Fund
STATEMENT OF OPERATIONS
For the Year Ended 11/30/96
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of
$863,544) $ 6,874,546
Interest (net of foreign taxes withheld of
$5,969) 1,525,465
------------
Total investment income $ 8,400,011
-------------
EXPENSES:
Management fees $ 3,960,548
Transfer agent fees
Class A 936,117
Class B 187,876
Class C 6,294
Distribution fees
Class A 823,265
Class B 538,668
Class C 23,250
Accounting 146,228
Custodian fees 819,249
Registration fees 85,542
Professional fees 82,542
Printing 55,439
Fees and expenses of nonaffiliated trustees 27,558
Miscellaneous 71,972
------------
Total expenses $ 7,764,548
Less fees paid indirectly (54,400)
-------------
Net expenses $ 7,710,148
-------------
Net investment income $ 689,863
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain from:
Investments (net of capital gains taxes paid
of $178,362) $27,073,267
Forward foreign currency contracts and other
assets and liabilities denominated in
foreign currencies 10,898,365 $37,971,632
------------ -------------
Change in net unrealized gain or loss from:
Investments $ 6,714,693
Forward foreign currency contracts and other
assets and liabilities denominated in
foreign currencies (6,296,161) $ 418,532
------------ -------------
Net gain on investments and foreign currency
transactions $38,390,164
-------------
Net increase in net assets resulting from
operations $39,080,027
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
Pioneer International Growth Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended 11/30/96 and 11/30/95
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/96 11/30/95
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 689,863 $ (888,658)
Net realized gain (loss) on investments and foreign
currency transactions 37,971,632 (107,596)
Change in net unrealized gain or loss on investments and
foreign currency transactions 418,532 13,826,869
-------------- ----------------
Net increase in net assets resulting from operations $ 39,080,027 $ 12,830,615
-------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain:
Class A ($0.24 and $1.10 per share, respectively) $ (3,794,326) $ (14,551,013)
Class B ($0.24 and $1.10 per share, respectively) (626,360) (1,141,813)
Class C ($0.24 per share) (19,775) -
-------------- ----------------
Total distributions to shareholders $ (4,440,461) $ (15,692,826)
-------------- ----------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 199,339,404 $ 157,292,002
Reinvestment of distributions 3,837,019 13,573,797
Cost of shares repurchased (126,598,965) (128,399,426)
-------------- ----------------
Net increase in net assets resulting from fund share
transactions $ 76,577,458 $ 42,466,373
-------------- ----------------
Net increase in net assets $ 111,217,024 $ 39,604,162
NET ASSETS:
Beginning of year 342,873,068 303,268,906
-------------- ----------------
End of year (including accumulated net investment income
(loss) of $4,642,854 and $(6,767,011), respectively) $ 454,090,092 $ 342,873,068
-------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
'96 Shares '96 Amount '95 Shares '95 Amount
<S> <C> <C> <C> <C>
Class A
Shares sold 6,477,892 $ 149,250,090 6,826,057 $ 138,243,337
Reinvestment of distributions 138,777 3,316,804 629,149 12,633,315
Less shares repurchased (4,959,214) (113,576,365) (5,994,269) (121,564,361)
------------ -------------- ------------ ----------------
Net increase 1,657,455 $ 38,990,529 1,460,937 $ 29,312,291
------------ -------------- ------------ ----------------
Class B
Shares sold 1,914,824 $ 43,742,430 944,288 $ 19,048,665
Reinvestment of distributions 21,671 509,038 47,077 940,482
Less shares repurchased (562,290) (12,781,275) (339,062) (6,835,065)
------------ -------------- ------------ ----------------
Net increase 1,374,205 $ 31,470,193 652,303 $ 13,154,082
------------ -------------- ------------ ----------------
Class C*
Shares sold 276,408 $ 6,346,884
Reinvestment of distributions 477 11,177
Less shares repurchased (10,777) (241,325)
------------ --------------
Net increase 266,108 $ 6,116,736
------------ --------------
</TABLE>
*Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
Pioneer International Growth Fund
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended 4/1/93 to
11/30/96 11/30/95 11/30/94(a) 11/30/93(b)
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 21.21 $ 21.55 $ 20.91 $ 15.00
---------- ---------- ---------- -----------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.10 $ (0.04) $ 0.19 $ (0.03)
Net realized and unrealized gain on
investments and foreign currency
transactions 2.32 0.80 1.87 5.94
---------- ---------- ---------- -----------
Net increase from investment
operations $ 2.42 $ 0.76 $ 2.06 $ 5.91
Distributions to shareholders:
Net investment income - - (0.03) -
Net realized gain (0.24) (1.10) (1.39) -
---------- ---------- ---------- -----------
Net increase (decrease) in net asset value $ 2.18 $ (0.34) $ 0.64 $ 5.91
---------- ---------- ---------- -----------
Net asset value, end of period $ 23.39 $ 21.21 $ 21.55 $ 20.91
---------- ---------- ---------- -----------
Total return* 11.40% 3.81% 10.03% 39.40%
Ratio of net expenses to average net
assets 1.77%+ 2.00%+ 1.95% 1.73%**
Ratio of net investment income (loss) to
average net assets 0.26%+ (0.23)%+ 0.84% (0.48)%**
Portfolio turnover rate 173% 219% 275% 185% **
Average commission rate paid(1) $ 0.0055 - - -
Net assets, end of period (in thousands) $378,956 $308,488 $282,033 $86,923
Ratios assuming no waiver of management
fees and assumption of expenses by PMC
and no reduction for fees paid
indirectly:
Net expenses - - - 2.88%**
Net investment loss - - - (1.63)%**
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.76% 1.98% - -
Net investment income (loss) 0.27% (0.21)% - -
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
(b) Certain reclassifications have been made to the 1993 balances to conform
with the 1994 presentation.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
Pioneer International Growth Fund
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Year Ended Year Ended 4/4/94 to
11/30/96 11/30/95 11/30/94(a)
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 20.94 $ 21.45 $ 21.06
---------- ---------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.15 $ (0.17) $ 0.06
Net realized and unrealized gain on
investments and foreign currency
transactions 2.04 0.76 0.33
---------- ---------- --------
Net increase from investment
operations $ 2.19 $ 0.59 $ 0.39
Distributions to shareholders:
Net realized gain (0.24) (1.10) -
---------- ---------- ---------
Net increase (decrease) in net asset value $ 1.95 $ (0.51) $ 0.39
---------- ---------- ---------
Net asset value, end of period $ 22.89 $ 20.94 $ 21.45
---------- ---------- ---------
Total return* 10.45% 3.00% 1.85%
Ratio of net expenses to average net
assets 2.60%+ 2.80%+ 3.02% **
Ratio of net investment income (loss) to
average net assets (0.51)%+ (1.04)%+ 0.72% **
Portfolio turnover rate 173% 219% 275%
Average commission rate paid(1) $0.0055 - -
Net assets, end of period (in thousands) $69,056 $34,385 $21,236
Ratios assuming reduction for fees paid
indirectly:
Net expenses 2.58% 2.77% -
Net investment loss (0.49)% (1.01)% -
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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 sale charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
Pioneer International Growth Fund
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
1/31/96 to
11/30/96
<S> <C>
CLASS C (a)
Net asset value, beginning of period $ 22.46
-----------
Increase from investment operations:
Net investment income $ 0.02
Net realized and unrealized gain on investments and foreign
currency transactions 0.60
-----------
Net increase from investment operations $ 0.62
Distributions to shareholders:
Net realized gain (0.24)
-----------
Net increase in net asset value $ 0.38
-----------
Net asset value, end of period $ 22.84
-----------
Total return* 2.75%
Ratio of net expenses to average net assets 2.36%**+
Ratio of net investment income to average net assets 0.13%**+
Portfolio turnover rate 173%
Average commission rate paid(1) $0.0055
Net assets, end of period (in thousands) $ 6,078
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.31%**
Net investment income 0.18%**
</TABLE>
(a) Class C shares were first publicly offered on January 31, 1996.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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 sale charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
Pioneer International Growth Fund
NOTES TO FINANCIAL STATEMENTS 11/30/96
1. Organization and Significant Accounting Policies
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 primarily in equity securities of
issuers in foreign countries.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
Class C shares were first publicly offered on January 31, 1996. Shares of Class
A, Class B and Class C each represent an interest in the same portfolio of
investments of the Fund and have equal rights to voting, redemptions, dividends
and liquidation, 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, Class B and Class C
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 sale prices are not generally reported, are valued at
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available are valued at their fair values as
determined by, or under the direction of, the Board of Trustees. Trading in
foreign securities is substantially completed each day at various times prior
to the close of the New York Stock Exchange. The values of such securities
used in computing the net asset value of the Fund's shares are determined as
of such times. Dividend income is recorded on the ex-dividend date, except
that certain dividends from foreign securities where the ex-dividend date may
have passed are recorded as soon as the Fund is informed of the ex-dividend
data in the exercise of
26
<PAGE>
Pioneer International Growth Fund
reasonable diligence. Interest income is recorded on the accrual basis, net
of unrecoverable foreign taxes withheld at the applicable country rates.
Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
It is the Fund's practice to first select for sale those securities that
have the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
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 include
political, social or economic factors and 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. In addition, delays are common in
registering transfers of securities in certain foreign countries, such as
India, and the Fund may be unable to sell portfolio securities until the
registration process is completed.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollar actually received. Further, the
effects of changes in foreign currency exchange rates on investments are not
segregated in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are
27
<PAGE>
Pioneer International Growth Fund
NOTES TO FINANCIAL STATEMENTS 11/30/96 (continued)
recorded in the Fund's financial statements. The Fund records realized gains
and losses at the time a portfolio hedge is offset by entry into a closing
transaction or extinguished by delivery of the currency. Risks may arise upon
entering into these contracts from the potential inability of counterparties
to meet the terms of the contract and from unanticipated movements in the
value of foreign currencies relative to the U.S. dollar (see Note 6).
D. 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. In
addition to the requirements of the Internal Revenue Code, the Fund may also
be required to pay local taxes on net realized capital gains in certain
countries. The required capital gains taxes, if any, are determined in
accordance with local tax laws. In determining daily net asset value, the
Fund estimates the reserve for capital gains taxes, if any, associated with
net unrealized gains on certain portfolio securities. The estimated reserve
for capital gains taxes, if any, is based on the holding periods of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. During the year ended November 30, 1996, the Fund
paid $178,362 in capital gains taxes on the sale of certain foreign
securities.
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.
At November 30, 1996, the Fund reclassified $10,720,002 from accumulated
undistributed net realized gain on investments and foreign currency
transactions to accumulated net investment loss. 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. Fund Shares
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations are absorbed by Pioneer
28
<PAGE>
Pioneer International Growth Fund
Funds Distributor, Inc. (PFD), the principal underwriter for the Fund and
an indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned
$417,659 in underwriting commissions on the sale of fund shares during the
year ended November 30, 1996.
F. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Shareholders of each class share all expenses and fees paid to
the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expense. Income, common
expenses and realized and unrealized gains and losses are calculated at the
Fund level and allocated daily to each class of shares based on the
respective percentage of adjusted net assets at the beginning of the day.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest received
from counterparties, is required to be at least equal to or in excess of the
value of the repurchase agreement at the time of purchase. The collateral for
all repurchase agreements is held in safekeeping in the customer-only account
of the Fund's custodian, or subcustodians. The Fund's investment adviser,
Pioneering Management Corporation (PMC), is responsible for determining that
the value of the collateral remains at least equal to the repurchase price.
2. Management Agreement
PMC manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 1.00% of the Fund's
average daily net assets up to $300 million; 0.85% of the next $200 million; and
0.75% of excess over $500 million.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums,
29
<PAGE>
Pioneer International Growth Fund
NOTES TO FINANCIAL STATEMENTS 11/30/96 (continued)
are paid by the Fund. At November 30, 1996, $361,980 was payable to PMC related
to management fees and certain other services.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer agent
and shareholder services to the Fund at negotiated rates. Included in due to
affiliates is $97,913 in transfer agent fees payable to PSC at November 30,
1996.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the Investment
Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service
fee of up to 0.25% of the Fund's average daily net assets in reimbursement of
its actual expenditures to finance activities primarily intended to result in
the sale of Class A shares. Pursuant to the Class B Plan and the Class C Plan,
the Fund pays PFD 1.00% of the average daily net assets attributable to each
class of shares. The fee consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Included in due to affiliates is $213,491 in distribution fees payable
to PFD at November 30, 1996.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of purchase.
Class B shares that are redeemed within 6 years of purchase are subject to a
CDSC at declining rates beginning at 4.0%, based on the lower of cost or market
value of shares being redeemed. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSC are paid to PFD.
For the year ended November 30, 1996, CDSCs in the amount of $111,542 were paid
to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the year ended November 30, 1996,
the Fund's expenses were reduced by $54,400 under such arrangements.
30
<PAGE>
Pioneer International Growth Fund
6. Forward Foreign Currency Contracts
At November 30, 1996, the Fund had entered into various contracts that obligate
the Fund to deliver currencies at specified future dates. At the maturity of a
contact, 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, 1996 were as follows:
<TABLE>
<CAPTION>
Contracts In Exchange Settlement Net
Currency to Deliver For Date Value Unrealized Gain
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FRF 67,097,500 $13,047,642 5/30/97 $12,972,938 $ 74,704
DEM 22,659,000 15,000,000 5/30/97 14,901,012 98,988
DEM 18,702,500 12,500,000 4/16/97 12,265,004 234,996
DEM 6,449,015 4,310,263 3/21/97 4,222,306 87,957
------------ ------------ ----------------
$44,857,905 $44,361,260 $496,645
------------ ------------ ----------------
</TABLE>
Included in accumulated net realized gain on investments and foreign currency
transactions is $218,171, which represents the realized gain on closed but
unsettled portfolio hedges totaling $64,118,322.
At November 30, 1996, the gross forward foreign currency settlement contracts
receivable and payable were $5,659,512 and $5,686,408, respectively, resulting
in a net payable of $26,896.
31
<PAGE>
Pioneer International Growth Fund
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, including the schedule of
investments, of Pioneer International Growth Fund as of November 30, 1996, and
the related statement of operations, the statements of changes in net assets,
and the financial highlights for the periods presented. These financial
statements and the 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, 1996 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, 1996, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
January 3, 1997
32
<PAGE>
Pioneer International Growth Fund
TAX TREATMENT OF DISTRIBUTIONS
Made during the Year Ended 11/30/96
During the year ended November 30, 1996 Pioneer International Growth Fund paid
the following distributions per share for Class A, Class B Class C shares:
<TABLE>
<CAPTION>
Record Payment Net Short-Term
Date Date Realized Gain
<S> <C> <C>
June 18, 1996 June 28, 1996 $0.243
</TABLE>
On a per share basis, distributions of $0.243 from short-term capital gain
should be reported as ordinary income.
The Fund hereby designates $9,845,698 as a capital gain dividend for the
purposes of the dividend paid deduction.
33
<PAGE>
Pioneer International Growth Fund
TRUSTEES' FEES AND SHARE OWNERSHIP 11/30/96
Trustees' Fees, Principal Shareholders and Share
Ownership of Trustees and Officers (Unaudited)
The aggregate remuneration paid by the Fund to nonaffiliated trustees and
officers during the year ended November 30, 1996 was $15,560, plus expenses
incurred in attending trustees meetings of $3,498. 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 1996 are reimbursed to the Fund by
Pioneering Management Corporation in accordance with the management agreement
with the Fund. At November 30, 1996, the trustees and officers of the Fund owned
beneficially 23,179 of Class A shares of the Fund, (0.14% 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 14% of the outstanding shares of capital stock at November 30,
1996.
34
<PAGE>
Pioneer International Growth Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Richard H. Egdahl, M.D. President
Margaret B.W. Graham David D. Tripple, Executive Vice President
John W. Kendrick Norman Kurland, Vice President
Marguerite A. Piret William H. Keough, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareholder Services and Transfer Agent
Pioneering Services Corporation
35
<PAGE>
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
Your investment representative can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-800-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 13-digit account number and four-digit personal identification number at
hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as you
meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need to
do is authorize a set amount of money to be moved out of your bank account into
the Pioneer fund of your choice. Investomatic also allows you to change the
dollar amount, frequency and investment date right over the phone. By putting
aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing Pioneer
to deduct from participating employees' paychecks. You specify the dollar amount
you want to invest into the Pioneer fund(s) of your choice.
36
<PAGE>
Automatic Exchange Program
A simple way to move money from a money market or bond fund into a stock fund
over a period of time. Just invest a lump sum in a Pioneer money market fund or
bond fund. Then, select the Pioneer equity fund or funds you wish to invest in,
and choose the amounts and dates for Pioneer to sell shares of your money market
or bond fund and use the proceeds to buy shares of the Pioneer equity fund you
have chosen. Over time, your original investment will be shifted to your Pioneer
equity fund.
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals. You
decide the frequency and the day of the month you want. Pioneer will send the
proceeds by check to the address you designate, or electronically to your bank
account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available only for accounts with a value of $10,000 or
more.)
37
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Or write to us at:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
This report must be preceded or accompanied by a current Fund prospectus.
(PIONEER LOGO)
Pioneer Funds Distributor, Inc. 0197-3855
60 State Street (c) Pioneer Funds Distributor, Inc.
Boston, Massachusetts 02109 (recycle logo) Printed on Recycled Paper
