<PAGE>
[Pioneer Logo]
Pioneer
International Growth
Fund
ANNUAL REPORT 11/30/97
<PAGE>
Table of Contents
- --------------------------------------------------------------------------------
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 10
Financial Statements 21
Notes to Financial Statements 28
Report of Independent Public Accountants 33
Trustees, Officers and Service Providers 34
The Pioneer Family of Mutual Funds 35
Programs and Services for Pioneer Shareowners 36
<PAGE>
Pioneer International Growth Fund
LETTER FROM THE CHAIRMAN 11/30/97
Dear Shareowner,
- --------------------------------------------------------------------------------
I am pleased to present this report for Pioneer International Growth Fund,
covering its fiscal year ended November 30, 1997. I thank you for your interest
and this opportunity to comment briefly on today's investing environment.
Since October, the world's emerging markets have taken on a whole new look.
After a 12-year period of tremendous growth, Southeast Asia is facing tremendous
financial and economic setbacks, and stock markets and currencies there have
plunged to nearly unimaginable depths. European markets have bounced around,
heartened by the relative strength of the U.S. stock market but shaken by the
drop in Asia. In today's truly global economy, Latin America is feeling
pressures on currency and interest rates. At this moment in time, it is
difficult to say when and how Asia's vast difficulties will be resolved and what
the real effects will be on companies and countries there and in other regions.
One thing is clear, however. Over the past year, as is so often the case with
emerging markets, it did not pay to share the group mentality of investors who
piled out of Asia in near unison. I am pleased to say that thinking
independently helped your Fund make 1997 a profitable year. Your investment
team's willingness to invest where research and logic show long-term opportunity
- - rather than where popular opinion may reside in the short term - again proved
to be the difference between investment success and disappointment.
I encourage you to read on to learn more about Pioneer International Growth Fund
and your investment team's strategy. If you have questions about your Fund,
please contact your investment professional, or Pioneer at 1-800-225-6292.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
<PAGE>
Pioneer International Growth Fund
PORTFOLIO SUMMARY 11/30/97
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Pie chart]
International Common Stocks 85.1%
Depositary Receipts for International Stocks 7.9%
Short-Term Cash Equivalents 5.1%
International Preferred Stocks 1.8%
Convertible Securities 0.1%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[bar chart]
United Kingdom 13.3% Austria 1.9%
Japan 9.4% Argentina 1.9%
France 9.2% Isreal 1.8%
Germany 5.4% Mexico 1.8%
Netherlands 4.9% Thailand 1.6%
Italy 4.7% Philippines 1.4%
Finland 4.4% Malaysia 1.2%
Brazil 4.3% Bermuda 1.1%
Norway 3.7% Indonesia 1.0%
Spain 3.4% Denmark 0.6%
Sweden 3.3% New Zealand 0.6%
Switzerland 3.3% Peru 0.5%
Belgium 2.7% Portugal 0.5%
South Korea 2.5% China 0.3%
Hong Kong 2.5% Greece 0.2%
Australia 2.3% South Africa 0.2%
Singapore 2.0% Canada 0.1%
India 2.0%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
1. SK Telecom Co. Ltd. 2.21% 6. Telefonica de Argentina SA 1.31%
(Class B) (Sponsored A.D.R.)
2. Schibsted ASA 1.92 7. Societe Television Francaise 1.28
3. Arriva Plc 1.86 8. Sony Corp. 1.28
4. Telecomunicacoes 1.32 9. Sylea 1.27
Brasileiras SA
5. Shohkoh Fund 1.31 10. Nichiei Co., Ltd. 1.26
2 Fund holdings will vary for other periods.
<PAGE>
Pioneer International Growth Fund
PERFORMANCE UPDATE 11/30/97 CLASS A SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 11/30/97 11/30/96
$23.66 $23.39
Distributions per Share Income Short-Term Long-Term
(11/30/96-11/30/97) Dividends Capital Gains Capital Gains
$0.259 $0.955 $0.517
Investment Returns
- --------------------------------------------------------------------------------
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.
[boxed text]
Average Annual Total Returns
(As of November 30, 1997)
Net Asset Public Offering
Period Value Price*
Life-of-Fund 15.16% 13.70%
(3/25/93)
1 Year 9.28 2.98
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
******************************[MOUNTAIN CHART]*********************************
Growth of $10,000+
Pioneer
International MSCI
Growth EAFE
Fund* Index
3/93 9425 10000
10170 11180
11727 12006
11/93 13134 11040
15618 12802
14807 12697
15196 13308
11/94 14451 12678
13291 12233
13892 13323
15186 13374
11/95 15002 13638
16318 14294
17153 14746
16270 14427
11/96 16713 15242
17919 14757
18542 15857
19136 15733
11/97 18263 15181
*******************************************************************************
+ Index comparison begins March 31, 1993. The MSCI EAFE Index is an unmanaged,
capitalization-weighted index of international stock markets. The Index
includes: Australia, Austria, Belgium, Denmark, Finland, France, Germany,
Hong Kong, Ireland, Italy, Japan, Malaysia, the Netherlands, New Zealand,
Norway, Singapore, 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
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Pioneer International Growth Fund
PERFORMANCE UPDATE 11/30/97 CLASS B SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 11/30/97 11/30/96
$23.09 $22.89
Distributions per Share Income Short-Term Long-Term
(11/30/96-11/30/97) Dividends Capital Gains Capital Gains
$0.117 $0.955 $0.517
Investment Returns
- --------------------------------------------------------------------------------
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.
[boxed text]
Average Annual Total Returns
(As of November 30, 1997)
If If
Period Held Redeemed*
Life-of-Fund 6.43% 5.73%
(4/4/94)
1 Year 8.44 4.44
* 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
International MSCI
Growth EAFE
Fund* Index
4/94 10000 10000
10087 9943
10329 10421
11/94 9803 9928
9002 9579
5/95 9388 10433
10247 10473
11/95 10102 10679
10966 11193
5/96 11506 11546
10884 11297
11/96 11157 11935
11941 11555
5/97 12333 12417
12701 12319
11/97 11799 11887
*******************************************************************************
+ Index comparison begins April 30, 1994. The MSCI EAFE Index is an unmanaged,
capitalization-weighted index of international stock markets. The Index
includes: Australia, Austria, Belgium, Denmark, Finland, France, Germany,
Hong Kong, Ireland, Italy, Japan, Malaysia, the Netherlands, New Zealand,
Norway, Singapore, 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
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Pioneer International Growth Fund
PERFORMANCE UPDATE 11/30/97 CLASS C SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 11/30/97 11/30/96
$22.90 $22.84
Distributions per Share Income Short-Term Long-Term
(11/30/96-11/30/97) Dividends Capital Gains Capital Gains
$0.242 $0.955 $0.517
Investment Returns
- --------------------------------------------------------------------------------
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.
[boxed text]
Average Annual Total Returns
(As of November 30, 1997)
If If
Period Held Redeemed*
Life-of-Fund 6.09% 6.09%
(1/31/96)
1 Year 8.45 8.45
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
******************************[MOUNTAIN CHART]*********************************
Growth of $10,000
Pioneer
International MSCI
Growth EAFE
Fund* Index
1/96 10000 10000
10076 10034
10053 10247
10752 10545
5/96 10588 10351
10500 10409
9919 10105
8/96 10023 10127
10140 10396
9816 10290
11/96 10275 10699
10416 10561
10823 10192
2/97 10998 10358
10935 10396
10867 10451
5/97 11362 11131
12038 11745
12602 11935
8/97 11702 11044
12364 11662
11308 10766
11/97 11143 10656
*******************************************************************************
The MSCI EAFE Index is an unmanaged, capitalization-weighted index of
international stock markets. The Index includes: Australia, Austria, Belgium,
Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Malaysia,
the Netherlands, New Zealand, Norway, Singapore, 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 11/30/97
Dear Shareowner,
- --------------------------------------------------------------------------------
Pioneer International Growth Fund completed its fiscal year on November 30,
1997, as markets worldwide worked to regain their footing in spite of the
burgeoning financial crisis in Southeast Asia. In this environment, your Fund's
performance slowed from the strength it showed earlier in the year, but still
bested returns offered by the Morgan Stanley Capital International (MSCI) EAFE
(Europe, Australasia, Far East) Index and the average international stock fund.
Class A Shares of your Fund posted a total return of 9.28% for the fiscal year,
Class B Shares, 8.44% and Class C Shares, 8.45%. The MSCI EAFE Index declined
0.40%, and the 410 funds in Lipper Analytical Service's International Funds
category returned an average of 4.88% for the twelve-month period. (Lipper is
an independent firm that tracks fund performance using total returns based on
net asset value. Returns assume reinvestment of distributions and do not
include sales charges.)
Your Fund: Value Oriented and Diversified
We use a value style of investing, preferring stocks that are inexpensive given
a company's financial condition or business prospects. Your Fund invests
primarily in foreign equity securities and depositary receipts (which trade in
lieu of direct stock shares), with a widely diversified portfolio - more than
270 securities as of November 30 - invested in both established and emerging
markets. As we saw this year, diversification can minimize the impact that one
poorly performing security or market can have on the portfolio and also can
help reduce the effect of some other risks of international investing, such as
economic and political instabilities, as well as currency fluctuations.
Performance Factors
Global market volatility at the end of October brought down stock prices around
the world and erased some gains made by the Fund earlier in the period. We
adjusted the portfolio both before and in response to this turbulence. For
instance, we lightened the Fund's holdings in Japan from 16% on May 31 to less
than 10% by the close of the period. The strategy proved
6
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Pioneer International Growth Fund
effective: Japan's continued economic and banking problems roiled its stock
market, but the Fund's lowered exposure helped reduce losses in the portfolio.
The emerging markets of Asia suffered to an extreme degree from currencies and
stock markets that fell as much as 80% in the final months of the fiscal year.
Again, we had reduced holdings in a timely manner, dampening the downward
effect. The Fund's large position in European stocks made a significant
positive contribution to total return, and Latin American holdings also helped
boost performance despite their increased volatility in October and November.
Europe Shows Continued Strength
European stocks proved to be among the Fund's strongest performers over the
year. Given Europe's slow but real progress and the developments in other parts
of the world, we increased holdings in European stocks almost across the board.
Many European currencies were weak relative to the U.S dollar, helping
companies that export to the United States. Cellular phone maker Nokia
(Finland) benefited from exports and performed well for the year even after
declining late in the period. We sold the stock, taking profits. Banking and
financial stocks also rose, helped by a recent trend of increased equity
investment by Europeans. Fund holdings in these two areas include commercial
bank Skandia Enskilda Banken (Sweden) and financial services provider Julius
Baer Holding (Switzerland). We were disappointed by the performance of Italian
clothier Fila Holding, whose stock slumped along with apparel sales.
Japan Works to Recover
Japan's difficulties accelerated over the period. The near collapse of the
country's banking system, exacerbated by the currency declines of its emerging
market neighbors, contributed to a 20.2% decline in the Nikkei Index over the
fiscal year. Recent steps to increase economic growth, such as a tax cut, were
overshadowed by a weakening yen, an increase in sales tax and investor concerns
over the growing budget deficit. On the plus side, Japan's stock market is
likely to be more resilient than many other global markets, due to its already
low price levels. And the weaker yen makes
7
<PAGE>
Pioneer International Growth Fund
PORTFOLIO MANAGEMENT DISCUSSION 11/30/97 (continued)
Japanese exports a better value to dollar-based buyers. Companies in the
portfolio that export goods include consumer electronics makers Sony, Canon and
Nintendo, which turned in a good year and helped the Fund's performance.
Emerging Markets: A Tale of Two Regions
For most of the year, the emerging markets of Asia and Latin America offered a
contrast in performance. Asian emerging markets labored under slow economies
hindered by declining currencies, lagging corporate earnings growth and heavily
regulated securities markets - all of which drove down stock prices. The
region's weakening currencies were the catalyst for the worldwide decline in
stocks at the end of October. However, even as these crises unfold, trade
deficits are turning to surpluses because of the lower-valued currencies, and
governments and companies have the impetus to reorganize in meaningful ways.
While the emerging markets of Latin America are inherently volatile, they
showed considerably more stability than their Asian counterparts. Seasoned from
their own crises of the 1980s, they have already undergone the currency and
banking tests that face Asia, and inflation and interest rates now are under
control. These markets, which posted significant gains in the first half of the
year, swooned along with the rest of the world during October's stock sell-off
but recovered nicely in the aftermath. A number of Latin American stocks
contributed gains for the year, most notably in telecommunications, including
Telefonica de Argentina and Telecomunicacoes Brasileiras. We continue to
believe great opportunities lie ahead for Latin America, especially related to
ongoing privatization. And we have the Fund positioned to benefit: As of
November 30, Latin American stocks comprised 8.5% of equity holdings.
Going Forward
Region by region, the outlooks for the world's stock markets vary, but our
experience tells us there is plenty of value and untapped potential across the
globe. We believe compelling values still exist in the developed markets of
Europe and that the economic fundamentals that precipitated the Continent's
rise in stock prices are still in place. Japan has a way to go
8
<PAGE>
Pioneer International Growth Fund
toward economic recovery, but many Japanese companies are restructuring,
indicating a commitment to success.
We have an ongoing commitment to emerging markets. Although they offer greater
risks at times, as recent months have shown vividly, they also provide unique
opportunities for long-term growth not present in more established markets. In
Asia, the emerging markets have the potential to become very competitive,
offering some of the world's lowest production costs and reduced stock prices;
the key in this region is to separate likely winners from losers. In Latin
America, we think infrastructure development offers tremendous investment
potential. Keep a long-term perspective, and we are confident the Fund's
diversified portfolio can offer solid long-term performance.
Respectfully,
/s/ Norman Kurland
Norman Kurland,
Portfolio Manager
9
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/97
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 94.9%
CONVERTIBLE CORPORATE BOND - 0.1%
$1,912,000 Bangkok Land Public Co., Ltd., 4.50%, 10/13/03 $ 286,800
-----------
Total Convertible Corporate Bond
(Cost $1,393,400) $ 286,800
-----------
Shares
PREFERRED STOCKS - 2.8%
22,000 Centrais Electricas Brasileiras S/A (Sponsored A.D.R.) $ 511,500
6,200 Krones AG Herman Kronseder Maschinenfabrik 2,111,199
18,950,000 Petroleo Brasileiro SA 4,100,054
3,050 Suedzucker AG 1,584,236
39,570 Telecomunicacoes Brasileiras SA (Sponsored A.D.R.) 4,130,119
193,250 Usinas Siderurgicas de Minas Gerais SA 1,236,884
-----------
Total Preferred Stocks
(Cost $14,477,333) $13,673,992
-----------
COMMON STOCKS - 92.0%
Basic Industries - 6.3%
Chemicals - 0.2%
1,215,000 Montediison SpA $ 1,004,266
20,654 Reliance Industries Ltd. 84,506
-----------
$ 1,088,772
-----------
Containers - 2.1%
269,800 Gerresheimer Glas AG $ 4,436,745
30,550 Schmalbach Lubeca AG 5,725,418
-----------
$10,162,163
-----------
Iron & Steel - 1.1%
74,000 Boehler--Uddeholm AG $ 4,997,139
4,850 Tata Iron & Steel Co., Ltd. 16,250
23,500 Usinor Sacilor 369,420
-----------
$ 5,382,809
-----------
Metals & Mining - 1.4%
100,000 Broken Hill Proprietary Co., Ltd. $ 916,933
78,000 Kloof Gold Mining Co., Ltd. 274,529
1,725,000 M.I.M. Holdings Ltd. 1,248,408
1,794,225 Orogen Minerals Ltd. 3,675,021
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Metals & Mining - (continued)
5,300 Vaal Reefs Exploration & Mining Co., Ltd. $ 183,266
67,000 Vaal Reefs Exploration & Mining Co., Ltd. (A.D.R.) 238,688
-----------
$ 6,536,845
-----------
Forest Products - 0.6%
141,000 UPM--Kymmene Corp. $ 3,029,243
-----------
Paper Products - 0.9%
176,000 NV Koninklijke KNP BT $ 3,798,561
1,943,000 PT Indah Kiat Pulp & Paper Corp. 452,790
474,000 PT Pabrik Kertas Tjiwi Kimia 146,196
-----------
$ 4,397,547
-----------
Total Basic Industries $30,597,379
-----------
Capital Goods - 11.9%
Construction, Building Materials & Engineering - 8.6%
229,100 Asko OY $ 4,298,674
720,000 Ashtead Group Plc 2,091,161
37,800 Brisa-Auto Estradas de Portugal, SA* 1,160,431
2,360 Bucher Holding AG 2,117,609
354,000 Cemex, SA (Class B)* 1,743,386
218,500 Charter Plc 2,663,883
33,406,000 DMCI Holdings Inc.* 1,758,714
14,000 Felten & Guillaume Energietechnik AG* 1,111,426
6,730 GEA AG 2,385,172
1,450 Gujarat Ambuja Cements Ltd. 10,025
64,700 Koramic Building Products SA 4,267,106
31,000 Lafarge SA 2,048,007
195,000 Larsen & Toubro (G.D.R.) 1,901,250
520,000 Leighton Holdings Ltd. 2,023,671
117,000 Munters AB* 1,121,677
19,200 Plettac AG 2,945,052
14,800 Portland Valderrivas SA 1,206,117
117,600 Sho-Bond Corp. 2,285,195
10,600 Siam Cement Public Co., Ltd. 82,199
285,774 Siam City Cement Co., Ltd. 417,265
35,400 Stork NV 1,296,534
66,100 Svedala Industri AB 1,224,582
200 Unitech Ltd. 273
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/97 (continued)
Shares Value
Construction, Building Materials
& Engineering - (continued)
13,000 Zardoya Otis SA $ 1,512,845
1,300 Zardoya Otis SA (New E Shares)* 151,284
-----------
$41,823,538
-----------
Producer Goods - 2.9%
316,000 Alfa, SA de CV $ 2,377,647
50,665 Esselte AB (Series B) 1,046,933
20,000 Hoya Corp. 611,165
13,164 Sidel, SA 748,591
288,000 Valmet Corp. 4,296,048
880,000 Varitronix International Ltd. 1,491,275
685,692 Wassall Plc 3,728,305
-----------
$14,299,964
-----------
Telecommunications - 0.4%
447,800 Jasmine International Public Co., Ltd. $ 107,692
1,336,100 Loxley Public Co., Ltd. 500,013
14,000 Telecel-Comunicacaoes Pessoais, SA* 1,281,909
-----------
$ 1,889,614
-----------
Total Capital Goods $58,013,116
-----------
Consumer Durables - 3.5%
Motor Vehicles - 1.8%
200 Ashok Leyland Ltd. $ 196
72,450 Baja Auto Ltd. 1,137,166
10,400 BERU AG* 218,202
294,000 Ciadea SA 394,104
94,000 Edaran Otomobile Nassional Bhd. 217,217
9,850 KTM Motorradholding AG* 570,704
64,931 Sylea 5,851,522
151,000 Thai Rung Union Car Public Co., Ltd. 214,920
-----------
$ 8,604,031
-----------
Misc. Consumer Durables - 1.7%
138,000 Hunter Douglas NV $ 5,491,674
57,641 Samas-Groep NV 2,682,393
-----------
$ 8,174,067
-----------
Total Consumer Durables $16,778,098
-----------
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
Shares Value
Consumer Non-Durables - 13.3%
Agriculture & Food Manufacturing - 1.6%
1,045,000 Grupo Industrial Maseca SA de CV $ 1,028,015
182,890 Louis Dreyfus Citrus 5,350,415
147,100 McBride Plc 454,559
8,000 Raiso Group Plc 915,650
-----------
$ 7,748,639
-----------
Retail Food - 2.5%
83,400 Circle K Japan Co., Ltd. $ 4,188,787
99,400 Delhaize--Le Lion, SA 5,025,996
61,110 Delta Dairy SA 760,811
47,000 Kentucky Fried Chicken Bhd. 69,724
325,800 Kwik Save Group Plc 1,694,448
1,500,000 Universal Robina Corp. 192,060
-----------
$11,931,826
-----------
General Retail - 7.8%
68,500 Aldeasa SA* $ 1,431,199
30,200 Autobacs Seven Co., Ltd. 1,088,501
7,350 Benckiser NV (B Shares)* 258,102
581,000 Carpetright Plc 5,032,036
36,500 Castorama Dubois Investisse 4,365,185
5,150 Forbo Holding AG 2,059,422
13,594,000 Giordano International Ltd. 3,561,033
68,200 Hutamaiki OY (Series I) 2,930,416
65,000 Industrie Natuzzi SpA (Sponsored A.D.R.) 1,397,500
789,300 MFI Furniture Group Plc 1,639,358
55,700 Nintendo Corp., Ltd. 5,760,940
11,562,500 PT Matahari Putra Prima* 1,901,987
10,500 Selectra Group* 1,406,973
570,000 Storehouse Plc 2,330,601
17,330 Tag Heur International SA* 1,683,882
86,000 Xebio Co., Ltd. 1,037,728
-----------
$37,884,863
-----------
Textiles - 1.4%
48,373 Chargeurs International SA $ 2,867,161
162,200 Fila Holding SpA (Sponsored A.D.R.) 4,278,025
16 Super Spinning Mills (New Shares) 22
-----------
$ 7,145,208
-----------
Total Consumer Non-Durables $64,710,536
-----------
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/97 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Energy - 2.6%
Oil & Gas Extraction - 2.6%
625,000 Cultus Petroleum NL* $ 1,109,469
2,337 Elf Gabon 431,114
277,900 ENI SpA 1,622,216
672,000 Fletcher Challenge Energy 2,736,296
1,180,000 Ocean Rig ASA* 1,477,257
115,000 Oil & Natural Gas Commission Ltd. 928,447
98,500 Repsol SA 4,261,352
-----------
Total Energy $12,566,151
-----------
Financial - 12.9%
Commercial Banks - 5.2%
335,000 Banco Popolare di Milano $ 1,819,799
167,400 Banco Wiese Ltd. (Sponsored A.D.R.) 795,150
2,570,000 Bank International Indonesia 334,681
10,228 Daegu Bank 27,751
43,000 DePfa-Bank 2,438,333
290,400 Development Bank of Singapore Ltd. 2,732,319
238,500 First Bangkok City Bank Public Co., Ltd. 93,644
145,500 Housing & Commercial Bank (G.D.R.)* 854,813
53,200 HSBC Holding Plc 1,371,981
669,661 Industrial Credit & Investment Corp. of India Ltd. 1,251,299
51,600 Industrial Credit & Investment Corp. of India Ltd. (G.D.R.) 606,300
1,280 Julius Baer Holding AG 2,087,835
492,400 Overseas-Chinese Banking Corp., Ltd. 2,949,613
1,732,100 PT Bank Bira 201,821
2,115,000 PT Pan Indonesia Bank TBK 347,910
1,411,800 Siam City Bank Public Co., Ltd. 273,699
165,000 Skandia Enskilda Banken 1,945,251
37,600 Societe Generale 4,942,591
1,000 State Bank of India Ltd. 5,670
-----------
$25,080,460
-----------
Misc. Finance - 4.3%
41,350 Dexia France $ 4,293,793
2,617,200 Dhana Siam Finance and Securities Public Co., Ltd. 786,766
218,500 Finance One Public Co., Ltd.* 8,997
1,271,000 Hong Leong Finance Ltd. 1,769,873
3,651,000 JCG Holdings Ltd. 1,487,736
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
Shares Value
Misc. Finance - (continued)
6,724,850 Metro Pacific Corp. $ 384,827
1,337,600 National Finance Public Co., Ltd. 385,688
53,000 Nichiei Co., Ltd. 5,813,908
21,300 Shohkoh Fund 6,058,296
-----------
$20,989,884
-----------
Investments - 0.3%
448,000 Daiwa Securities Co. Ltd. $ 1,562,076
-----------
Insurance--General - 1.8%
49,000 Assicurazioni Generali $ 1,099,036
19,500 Catalana Occidente SA 980,951
1,927,800 Malaysian Assurance Alliance Bhd. 2,254,898
659,180 Reinsurance Australia Corp. 1,593,195
275,000 Royal & Sun Alliance Group Plc 2,502,926
-----------
$ 8,431,006
-----------
Life Insurance - 0.8%
174,000 Alleanza Assicurazioni $ 1,603,884
46,050 Skandia Forsakrings AB 2,428,143
-----------
$ 4,032,027
-----------
Real Estate - 0.5%
5,568,000 C & P Homes Inc. $ 350,489
26,000 Cheung Kong Holdings Ltd. 183,305
318,000 DBS Land Ltd. 540,555
1,035,760 HKR International Ltd. 837,419
462,900 Property Perfect Public Co., Ltd.* 17,039
449,000 Wing Tai Holdings Ltd. 577,356
-----------
$ 2,506,163
-----------
Total Financial $62,601,616
-----------
Services - 13.7%
Commercial Services - 0.6%
490 SGS Societe Generale de Surveillance Holding SA $ 915,785
379,000 Williams Plc 2,060,732
-----------
$ 2,976,517
-----------
Broadcasting & Media - 4.2%
300,000 Asia Satellite Telecommunications Holdings Ltd. $ 655,861
205,100 Central European Media Enterprises Ltd. 5,230,050
13,730 Pathe SA 2,646,781
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/97 (continued)
Shares Value
Broadcasting & Media - (continued)
127,300 Pearson Plc $ 1,773,409
82,500 Polygram NV 4,171,278
66,800 Societe Television Francaise 5,895,482
-----------
$20,372,861
-----------
Hotel/Restaurant - 0.1%
199,000 Overseas Union Enterprise Ltd. $ 461,847
-----------
Pharmaceuticals - 4.7%
326,666 Astra AB $ 5,670,991
47,900 Fabrica Esanola de Productos Quimicos y
Farmaceuticos SA 2,152,592
1,272,000 Medeva Plc 4,295,795
2,345 Novartis AG 3,747,657
14,250 Radiometer A/S 594,422
51,735 Rhone-Poulenc 2,325,897
120 Roche Holdings AG 1,074,225
1,050,000 SkyePharma Plc* 921,975
516,500 PT Tempo Scan Pacific 198,245
38,000 Teva Pharmaceutical Industries Ltd.
(Sponsored A.D.R.) 1,881,000
-----------
$22,862,799
-----------
Publishing - 1.9%
24,000 Grupo Anaya SA $ 456,369
522,000 Schibsted ASA 8,858,534
-----------
$ 9,314,903
-----------
Misc. Services - 2.2%
145,800 Compass Group Plc $ 1,743,080
13,625 Falck AS 635,335
177,000 Hays Plc 2,181,838
215,500 International Container Terminal Services, Inc.* 35,146
45,800 ISS International Service System AS (Class B)* 1,535,218
272,000 Jaakko Poyry Group* 3,240,799
122,000 Select Appointments Holdings Plc 1,201,033
-----------
$10,572,449
-----------
Total Services $66,561,376
-----------
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
Shares Value
Technology - 7.2%
Electronics - 6.1%
4,712,000 A(SM) Pacific Technology Ltd. $ 2,925,837
17,800 Austria Micro Systeme International AG 1,075,789
16,330 Barco Industries 3,051,498
105,000 Canon, Inc. 2,533,986
10,100 Delta Electronics (Thailand) Public Co., Ltd. 97,157
5,000 Elec & Eltek International Co., Ltd. 36,750
275,000 GSS Array Technology Public Co., Ltd.* 553,374
174,000 Hana Microelectronics Public Co., Ltd. 399,239
947,900 KCE Electronics Public Co., Ltd. 2,744,839
26,200 K.R. Precision Plc 164,594
62,000 Kyocera Corp. 2,992,517
44,300 Mabuchi Motor Co., Ltd. 2,322,170
45,000 Malaysian Pacific Industries Bhd. 123,244
9,000 Rohm Co., Ltd. 888,541
20,131 Samsung Display Devices Co. 604,188
69,000 Sony Corp. 5,893,046
5,000 TDK Corp. 407,444
535,800 TT Group Plc 2,669,016
-----------
$29,483,229
-----------
Computer Services - 1.1%
157,900 Merkantildata ASA $ 5,447,100
-----------
Total Technology $34,930,329
-----------
Transportation - 3.5%
Air Transport - 0.5%
53,000 Flughafen Wien AG $ 2,159,805
203,500 Modi Luft Ltd.* 26,224
185,500 Modi Luft Ltd. (New)* 23,905
-----------
$ 2,209,934
-----------
Railroad & Bus - 2.4%
1,330,000 Arriva Plc $ 8,566,293
241,000 Stagecoach Holdings Plc 3,068,420
-----------
$11,634,713
-----------
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/97 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Ships & Shipping - 0.6%
40,950 Finnlines OY $ 1,628,918
305,000 Frontline Ltd.* 1,476,422
526 Great Eastern Shipping Co. 542
-----------
$ 3,105,882
-----------
Total Transportation $16,950,529
-----------
Utilities - 15.1%
Electric Utilities - 2.5%
8,250,000 Centrais Electricas Brasilerias SA $ 3,837,555
163,775 Iberdrola SA 2,092,638
20,000 Powertek Bhd. 22,595
496,950 Scottish Power Plc 4,027,916
50,800 Shandong Huaneng Power Co., Ltd. (N Shares)
(Sponsored A.D.R.) 333,375
3,870 Viag AG 1,966,711
-----------
$12,280,790
-----------
Telecommunications - 12.6%
8,500 Advanced Service Co., Ltd. $ 43,804
19,050 Bell Canada International Inc.* 277,118
129,000 ECI Telecommunications Ltd. 3,507,188
3,000 Hellenic Telecommunication Organization SA 59,087
218,800 Mahanagar Telephone Nigam Ltd. 1,291,371
2,820,700 Nanjing Posts & Telecommunications Equipment Co., Ltd.
(B Shares)* 1,025,338
4,000 PT Indonesian Satellite Corp. (Sponsored A.D.R.) 89,500
545,000 PT Telekomunikasi Indonesia 399,692
119,000 Royal PTT Nederland NV (Orders) 4,777,482
24,000 Shinawatra Computer Co., Plc 86,577
29,909 SK Telecom Co. Ltd. 10,211,769
3,353,000 Technology Resources Industries Bhd.* 2,716,645
80,000 Telecom Argentina Stet-France Telecom SA (Class B)
(Sponsored A.D.R.) 2,455,000
775,488 Telecom Italia SpA 4,834,316
1,800,000 Telecom Italia Mobile SpA 3,938,298
64,658,000 Telecomunicacoes Brasileiras SA 6,067,698
182,500 Telefonica de Argentina SA (Class B) (Sponsored A.D.R.) 6,033,906
51,000 Telefonica de Espana 1,470,924
67,800 Telefonica del Peru SA (Class B) (Sponsored A.D.R.) 1,423,800
</TABLE>
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Telecommunications - (continued)
65,500 Telefonos de Mexico SA (L Shares) (Sponsored A.D.R.) $ 3,242,250
91,800 United Communication Industry Public Co., Ltd. 45,055
149,600 Videsh Sanchar Nigam Ltd. (G.D.R.) 1,982,200
783,000 Vodafone Group Plc 5,215,972
------------
$ 61,194,990
------------
Total Utilities $ 73,475,780
------------
Miscellaneous - 2.0%
Conglomerates & Holdings - 2.0%
1,074,500 Benpres Holdings Corp. (G.D.R.)* $ 3,193,951
150 Grasim Industries Ltd. 1,269
72,000 Hutchinson Whampoa Ltd. 479,671
9,321,000 JG Summit Holding Inc. 853,425
139,300 Nobel Biocare 1,624,216
302,800 PT Tigaraksa Satria 240,746
1,913,160 PT Wicaksana Overseas International 196,692
79,600 Tadiran Ltd. (Sponsored A.D.R.) 3,109,375
------------
Total Miscellaneous $ 9,699,345
------------
Total Common Stocks
(Cost $486,002,064) $446,884,255
------------
RIGHTS & WARRANTS - 0.0%
429,800 Benpress (Lopez) 12/01/97* $ -
33,166 Housing & Commercial 12/10/97* -
51,735 Rhone--Poulenc (India) Ltd., 11/05/01* 191,926
------------
Total Rights & Warrants
(Cost $331,636) $ 191,926
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $502,204,433) (a) $461,036,973
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/97 (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
TEMPORARY CASH INVESTMENTS - 5.1%
COMMERCIAL PAPER - 5.1%
$14,579,000 American Express Co., 5.65%, 12/02/97 $ 14,579,000
10,000,000 Household Financial Corp., 5.70%, 12/01/97 10,000,000
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $24,579,000) $ 24,579,000
------------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY
CASH INVESTMENTS - 100%
(Cost $526,783,433) (b) $485,615,973
============
* Non-income producing security
(a) Distribution of investments by country, as a percentage of total equity
holdings, is as follows:
United Kingdom 13.3%
Japan 9.4
France 9.2
Germany 5.4
Netherlands 4.9
Italy 4.7
Finland 4.4
Brazil 4.3
Norway 3.7
Spain 3.4
Sweden 3.3
Switzerland 3.3
Belgium 2.7
South Korea 2.5
Hong Kong 2.5
Australia 2.3
Singapore 2.0
India 2.0
Austria 1.9
Argentina 1.9
Israel 1.8
Mexico 1.8
Thailand 1.6
Philippines 1.4
Malaysia 1.2
Bermuda 1.1
Indonesia 1.0
Others (Individually less than 1%) 3.0
-----
100.0%
=====
(b) At November 30, 1997, the net unrealized loss on investments based on
cost for federal income tax purposes of $531,760,540 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $ 33,612,053
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (79,756,620)
------------
Net unrealized loss $(46,144,567)
============
Purchases and sales of securities (excluding temporary cash investments) for
the year ended November 30, 1997, aggregated $733,290,576 and $711,538,551,
respectively.
</TABLE>
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
BALANCE SHEET 11/30/97
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash
investments of $24,579,000) (cost $526,783,433) $485,615,973
Foreign currencies, at value 3,904,037
Receivables -
Investment securities sold 25,480,842
Fund shares sold 717,249
Dividends, interest and foreign taxes withheld 738,093
Forward foreign currency settlement hedge contracts 163,026
Forward foreign currency portfolio hedge contracts, open - net 2,511,025
Forward foreign currency portfolio hedge contracts, closed - net 2,479,009
Other 7,043
-------------
Total assets $521,616,297
-------------
LIABILITIES:
Payables -
Investment securities purchased $ 25,132,814
Due to bank 8,222,332
Fund shares repurchased 730,602
Due to affiliates 829,063
Accrued expenses 329,117
Reserve for capital gains taxes 59,048
-------------
Total liabilities $ 35,302,976
-------------
NET ASSETS:
Paid-in capital $441,194,657
Accumulated undistributed net investment income 17,373,634
Accumulated undistributed net realized gain on investments and
foreign currency transactions 66,653,153
Net unrealized loss on investments (41,167,460)
-------------
Net unrealized gain on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies 2,259,337
-------------
Total net assets $486,313,321
=============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $395,571,707/16,722,074 shares) $ 23.66
=============
Class B (based on $81,438,419/3,527,681 shares) $ 23.09
=============
Class C (based on $9,303,195/406,211 shares) $ 22.90
=============
MAXIMUM OFFERING PRICE:
Class A $ 25.10
=============
</TABLE>
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer International Growth Fund
STATEMENT OF OPERATIONS
For the Year Ended 11/30/97
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $783,086) $ 9,742,356
Interest (net of foreign taxes withheld of $9,849) 1,263,934
------------
Total investment income $ 11,006,290
------------
EXPENSES:
Management fees $ 4,664,496
Transfer agent fees
Class A 1,002,895
Class B 235,227
Class C 22,416
Distribution fees
Class A 1,000,910
Class B 808,233
Class C 75,689
Accounting 148,383
Custodian fees 743,516
Registration fees 121,935
Professional fees 104,778
Printing 126,055
Fees and expenses of nonaffiliated trustees 17,075
Miscellaneous 51,658
------------
Total expenses $ 9,123,266
Less fees paid indirectly (94,385)
------------
Net expenses $ 9,028,881
------------
Net investment income $ 1,977,409
------------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain from:
Investments (net of capital gains taxes of
$492,501) $ 67,871,012
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 16,385,371 $ 84,256,383
------------ ------------
Change in net unrealized gain from:
Investments $(46,959,933)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 1,766,142 $(45,193,791)
------------ ------------
Net gain on investments and foreign currency
transactions $ 39,062,592
------------
Net increase in net assets resulting from operations $ 41,040,001
============
</TABLE>
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended 11/30/97 and 11/30/96
<TABLE>
<CAPTION>
Year Ended Year Ended
FROM OPERATIONS: 11/30/97 11/30/96
<S> <C> <C>
Net investment income $ 1,977,409 $ 689,863
Net realized gain on investments and foreign currency
transactions 84,256,383 37,971,632
Change in net unrealized gain on investments and foreign
currency transactions (45,193,791) 418,532
------------ -------------
Net increase in net assets resulting from operations $ 41,040,001 $ 39,080,027
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.26 and $0.00 per share, respectively) $ (4,209,556) $ --
Class B ($0.12 and $0.00 per share, respectively) (388,111) --
Class C ($0.24 and $0.00 per share, respectively) (68,180) --
Net realized gain:
Class A ($1.47 and $0.24 per share, respectively) (23,543,245) (3,794,326)
Class B ($1.47 and $0.24 per share, respectively) (4,472,638) (626,360)
Class C ($1.47 and $0.24 per share, respectively) (393,748) (19,775)
------------ -------------
Total distributions to shareholders $(33,075,478) $ (4,440,461)
------------ -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $187,745,265 $199,339,404
Reinvestment of distributions 28,780,975 3,837,019
Cost of shares repurchased (192,267,534) (126,598,965)
------------ -------------
Net increase in net assets resulting from fund
share transactions $ 24,258,706 $ 76,577,458
------------ -------------
Net increase in net assets $ 32,223,229 $111,217,024
NET ASSETS:
Beginning of year 454,090,092 342,873,068
------------ -------------
End of year (including accumulated undistributed net
investment income of $17,373,634 and $4,642,854,
respectively) $486,313,321 $454,090,092
============ =============
</TABLE>
The accompanying notes are an integral part of these financial statements. 23
<PAGE>
Pioneer International Growth Fund
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the Years Ended 11/30/97 and 11/30/96
<TABLE>
<CAPTION>
CLASS A '97 Shares '97 Amount '96 Shares '96 Amount
<S> <C> <C> <C> <C>
Shares sold 5,456,967 $ 131,194,746 6,477,892 $149,250,090
Reinvestment of distributions 1,142,596 24,704,550 138,777 3,316,804
Less shares repurchased (6,082,244) (146,346,003) (4,959,214) (113,576,365)
---------- -------------- ---------- -------------
Net increase 517,319 $ 9,553,293 1,657,455 $ 38,990,529
========== ============== ========== =============
CLASS B
Shares sold 1,034,695 $ 24,566,818 1,914,824 $ 43,742,430
Reinvestment of distributions 181,443 3,859,829 21,671 509,038
Less shares repurchased (705,023) (16,791,077) (562,290) (12,781,275)
---------- -------------- ---------- -------------
Net increase 511,115 $ 11,635,570 1,374,205 $ 31,470,193
========== ============== ========== =============
CLASS C*
Shares sold 1,309,647 $ 31,983,701 276,408 $ 6,346,884
Reinvestment of distributions 10,261 216,596 477 11,177
Less shares repurchased (1,179,805) (29,130,454) (10,777) (241,325)
---------- -------------- ---------- -------------
Net increase 140,103 $ 3,069,843 266,108 $ 6,116,736
========== ============== ========== =============
</TABLE>
*Class C shares were first publicly offered on January 31, 1996.
24 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
FINANCIAL HIGHLIGHTS 11/30/97
<TABLE>
<CAPTION>
Year Ended Year Ended
CLASS A 11/30/97 11/30/96
<S> <C> <C>
Net asset value, beginning of period $ 23.39 $ 21.21
-------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.13 $ 0.10
Net realized and unrealized gain on investments and foreign currency transactions 1.87 2.32
-------- --------
Net increase from investment operations $ 2.00 $ 2.42
Distributions to shareholders:
Net investment income (0.26) --
Net realized gain (1.47) ( 0.24)
---------- ----------
Net increase (decrease) in net asset value $ 0.27 $ 2.18
---------- ----------
Net asset value, end of period $ 23.66 $ 23.39
========== ==========
Total return* 9.28% 11.40%
Ratio of net expenses to average net assets 1.69%+ 1.77%+
Ratio of net investment income (loss) to average net assets 0.51%+ 0.26%+
Portfolio turnover rate 154% 173%
Average commission rate paid(1) $ 0.0034 $ 0.0055
Net assets, end of period (in thousands) $395,572 $378,956
Ratios assuming no waiver of management fees and assumption of expenses
by PMC and no reduction for fees paid indirectly:
Net expenses -- --
Net investment loss -- --
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.67% 1.76%
Net investment income (loss) 0.53% 0.27%
<CAPTION>
Year Ended Year Ended 4/1/93 to
11/30/95 11/30/94(a) 11/30/93(b)
<S> <C> <C> <C>
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
-------- ------- -----------
Net increase from investment operations $ 0.76 $ 2.06 $ 5.91
Distributions to shareholders:
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 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% 275% 185%
Average commission rate paid(1) -- -- --
Net assets, end of period (in thousands) $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 1.98% -- --
Net investment income (loss) ( 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. 25
<PAGE>
Pioneer International Growth Fund
FINANCIAL HIGHLIGHTS 11/30/97
Year Ended
CLASS B 11/30/97
Net asset value, beginning of period $22.89
---------
Increase (decrease) from investment operations:
Net investment income (loss) $(0.06)
Net realized and unrealized gain on investments and foreign
currency transactions 1.85
----------
Net increase from investment operations $1.79
Distributions to shareholders:
Net investment income (0.12)
Net realized gain (1.47)
----------
Net increase (decrease) in net asset value $ 0.20
----------
Net asset value, end of period $23.09
==========
Total return* 8.44%
Ratio of net expenses to average net assets 2.49%+
Ratio of net investment income (loss) to average net assets (0.23)%+
Portfolio turnover rate 154%
Average commission rate paid(1) $0.0034
Net assets, end of period (in thousands) $81,438
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.47%
Net investment income (loss) (0.21)%
<TABLE>
<CAPTION>
Year Ended Year Ended 4/4/94 to
11/30/96 11/30/95 11/30/94(a)
<S> <C> <C> <C>
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 investment income -- -- --
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 income (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 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.
26 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
FINANCIAL HIGHLIGHTS 11/30/97
Year Ended 1/31/96 to
CLASS C 11/30/97(a) 11/30/96
Net asset value, beginning of period $ 22.84 $22.46
--------- ---------
Increase from investment operations:
Net investment income $ -- $ 0.02
Net realized and unrealized gain on
investments and foreign currency
transactions 1.77 0.60
--------- ---------
Net increase from investment operations $ 1.77 $ 0.62
Distributions to shareholders:
Net investment income (0.24) --
Net realized gain (1.47) (0.24)
--------- ---------
Net increase in net asset value $ 0.06 $ 0.38
--------- ---------
Net asset value, end of period $ 22.90 $22.84
========= =========
Total return* 8.45% 2.75%
Ratio of net expenses to average net assets 2.50% +2.36%**+
Ratio of net investment income (loss)
to average net assets (0.03) %0.13%**+
Portfolio turnover rate 154% 173%
Average commission rate paid(1) $0.0034 $0.0055
Net assets, end of period (in thousands) $ 9,303 $ 6,078
Ratios assuming reduction for fees paid
indirectly:
Net expenses 2.47% 2.31%**
Net investment income 0.00% 0.18%**
(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 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. 27
<PAGE>
Pioneer International Growth Fund
NOTES TO FINANCIAL STATEMENTS 11/30/97
1. Organization and Significant Accounting Policies
Pioneer International Growth Fund (the Fund) is a Delaware business trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to seek
long-term growth of capital.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
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 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.
28
<PAGE>
Pioneer International Growth Fund
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,
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. In addition, delays are
common in registering transfers of securities in 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 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).
29
<PAGE>
Pioneer International Growth Fund
NOTES TO FINANCIAL STATEMENTS 11/30/97 (continued)
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
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, 1997, the Fund
incurred $492,501 in capital gains taxes on the sale of certain foreign
securities.
At November 30, 1997, the Fund reclassified $15,419,218 from accumulated
undistributed net realized gain on investments and foreign currency
transactions to accumulated undistributed net investment income. The
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.
In order to comply with federal income tax regulations, the Fund has
designated $20,447,389 as a capital gain dividend for the purposes of the
dividend paid deduction.
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 Funds
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $353,722 in
underwriting commissions on the sale of fund shares during the year ended
November 30, 1997.
F. Class Allocations
Distribution fees are calculated based on the average daily net assets
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 (see
30
<PAGE>
Pioneer International Growth Fund
Note 3). Income, common expenses and realized and unrealized gains and
losses are calculated at the Fund level and allocated daily to each class of
shares based on the respective percentage of adjusted net assets at the
beginning of the day.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
2. Management Agreement
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 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, are paid by
the Fund. At November 30, 1997, $381,611 was payable to PMC related to
management fees and certain other expenses.
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 $206,911 in transfer agent fees payable to PSC at November 30,
1997.
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 $240,541 in distribution fees
payable to PFD at November 30, 1997.
31
<PAGE>
Pioneer International Growth Fund
NOTES TO FINANCIAL STATEMENTS 11/30/97 (continued)
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 six 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, 1997, CDSCs in the amount
of $198,272 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, 1997,
the Fund's expenses were reduced by $94,385 under such arrangements.
6. Forward Foreign Currency Contracts
At November 30, 1997, 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, 1997 were as follows:
<TABLE>
<CAPTION>
Contracts In Exchange Settlement Net Unrealized
Currency to Deliver For Date Value Gain
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DEM 42,281,000 $25,000,000 11/10/98 $24,390,387 $ 609,613
THB 269,362,500 8,250,000 2/9/98 6,445,576 1,804,424
HKD 120,986,250 15,000,000 10/23/98 15,011,248 (11,248)
MYR 17,852,500 5,000,000 10/29/98 4,891,764 108,236
----------- ----------- -----------
$53,250,000 $50,738,975 $2,511,025
=========== =========== ===========
</TABLE>
Included in accumulated net realized gain on forward foreign currency contracts
and other assets and liabilities denominated in foreign currencies is
$2,479,009, which represents the realized gain on closed but unsettled
portfolio hedges totaling $41,140,104.
At November 30, 1997, the gross forward currency settlement contracts
receivable and payable were $7,865,415 and $7,702,389 respectively, resulting
in a net receivable of $163,026.
32
<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, 1997, 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, 1997 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, 1997, 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 5, 1998
33
<PAGE>
Pioneer International Growth Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice
Margaret B.W. Graham 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
Shareowner Services and Transfer Agent
Pioneering Services Corporation
34
<PAGE>
THE PIONEER FAMILY OF MUTUAL FUNDS
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds
Global/International
Pioneer Emerging Markets Fund
Pioneer Europe Fund
Pioneer Gold Shares
Pioneer India Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
United States
Pioneer Capital Growth Fund
Pioneer Growth Shares
Pioneer Micro-Cap Fund*
Pioneer Mid-Cap Fund
Pioneer Small Company Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
Income Funds
Taxable
Pioneer America Income Trust
Pioneer Bond Fund
Pioneer Short-Term Income Trust*
Tax-Exempt
Pioneer Intermediate Tax-Free Fund
Pioneer Tax-Free Income Fund
Money Market Fund
Pioneer Cash Reserves Fund
*Offers Class A and B Shares only
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.
Call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[PIONEER logo]
Pioneer Funds Distributor, Inc.
60 State Street 0198-467
Boston, Massachusetts 02109 (C) Pioneer Funds Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [Recycle symbol] Printed on Recycled Paper
