<PAGE>
[Pioneer logo]
Pioneer
International Growth
Fund
ANNUAL REPORT 11/30/98
<PAGE>
Table of Contents
- --------------------------------------------------------------------------------
<TABLE>
<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 27
Report of Independent Public Accountants 33
Trustees, Officers and Service Providers 34
The Pioneer Family of Mutual Funds 35
Retirement Plans from Pioneer 36
</TABLE>
<PAGE>
Pioneer International Growth Fund
LETTER FROM THE CHAIRMAN 11/30/98
Dear Shareowner,
- --------------------------------------------------------------------------------
I am pleased to introduce this report for Pioneer International Growth Fund,
covering the fiscal year ended November 30, 1998. On behalf of the Fund's
investment team, I thank you for your interest and this opportunity to comment
briefly on today's investing environment.
While Japan, Europe and emerging markets around the world are in various stages
of development, all are trying to build or improve their economic infrastructure
to compete in a global economy and offer international investors a compelling
reason to invest. At Pioneer, we continue to believe in the value opportunities
available not only in emerging markets and the smaller companies in Europe and
Asia, but in some of the larger "blue-chip" companies as well. We believe this
balanced, diversified approach to international investing can work for patient,
long-term investors.
I would like to take a moment to note that the end of this fiscal year marks the
end of an era. Current portfolio manager and the Fund's originator, Dr. Norman
Kurland, stepped down after almost six years at the helm of Pioneer
International Growth Fund. We wish him all the best and thank him for his years
of service. His successor, Pavlos M. Alexandrakis, assumed responsibility for
the day to day management of the Fund on January 8, 1999. He has been an
international investment manager for our institutional clients since joining
Pioneer in October 1998. We're confident that his 14 years of industry
experience will serve you well.
I encourage you to read on to learn more about your Fund. The Portfolio
Management Discussion in this report is especially important as it discusses
changes to your Fund's portfolio over the past year and likely changes for 1999.
Please contact your investment professional, or us at 1-800-225-6292, if you
have questions about Pioneer International Growth Fund.
Respectfully,
/s/John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer International Growth Fund
PORTFOLIO SUMMARY 11/30/98
Portfolio Diversification
- -------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[pie chart begins]
International Common Stocks 92%
Short-Term Cash Equivalent 4%
Depositary Receipts for International Stocks 3%
International Preferred Stocks 1%
[pie chart ends]
Geographical Distribution
- -------------------------------------------------------------------------------
(As a percentage of equity holdings)
[bar chart begins]
United Kingdom 11.4%
Japan 10.5%
Italy 10.4%
France 9.5%
Netherlands 7.8%
Switzerland 6.3%
Germany 5.9%
Spain 5.2%
Finland 3.5%
Sweden 3.4%
Austrailia 3.0%
Singapore 3.0%
Malaysia 2.3%
India 2.0%
Hong Kong 1.9%
Thailand 1.9%
Israel 1.8%
Belgium 1.5%
Austria 1.3%
Phillippines 1.2%
South Korea 1.2%
Brazil 0.9%
Taiwan 0.9%
Norway 0.8%
Indonesia 0.7%
Argentina 0.5%
Mexico 0.4%
Czech Republic 0.3%
New Zealand 0.2%
Greece 0.1%
South Africa 0.1%
Turkey 0.1%
[bar chart ends]
10 Largest Holdings
- -------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
1. Novartis AG 2.45% 6. San Paolo - IMI SpA 1.52%
2. Telecom Italia SpA 1.77 7. Schmalbach Lubeca AG 1.49
3. Nokia AB 1.74 8. Banca Popolare di Milano 1.49
4. Philips Electronics NV 1.59 9. Telefonica SA 1.36
5. Repsol SA (L Shares) 1.52 10. Hays Plc 1.30
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer International Growth Fund
PERFORMANCE UPDATE 11/30/98 CLASS A SHARES
Share Prices and Distributions
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 11/30/98 11/30/97
$17.14 $23.66
Distributions per Share Income Short-Term Long-Term
(11/30/97 -11/30/98) Dividends Capital Gains Capital Gains
$1.154 $2.459 $0.995
</TABLE>
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.
- ----------------------------------------------
Average Annual Total Returns
(As of November 30, 1998)
<TABLE>
<S> <C> <C>
Net Asset Public Offering
Period Value Price*
Life-of-Fund 10.41% 9.26%
(3/25/93)
5 Years 4.74 3.50
1 Year -9.35 -14.55
</TABLE>
- ----------------------------------------------
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
[mountain chart plot points begin]
Growth of $10,000+
<TABLE>
<CAPTION>
Pioneer International Growth Fund* MSCI EAFE Index
<S> <C> <C>
5/93 9425 10000
11/93 10170 10211
13134 10083
11/94 14807 11597
14451 11580
11/95 13892 12169
15002 12456
11/96 17153 13468
16713 13921
11/97 18635 14483
18263 13865
11/98 19831 16092
16556 16146
</TABLE>
[mountain chart plot points end]
+ Index comparison begins March 31, 1993. The 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, Ireland, Italy,
Japan, Malaysia, the Netherlands, New Zealand, Portugal, 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
<PAGE>
Pioneer International Growth Fund
PERFORMANCE UPDATE 11/30/98 CLASS B SHARES
Share Prices and Distributions
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 11/30/98 11/30/97
$16.63 $23.09
Distributions per Share Income Short-Term Long-Term
(11/30/97 -11/30/98) Dividends Capital Gains Capital Gains
$0.996 $2.459 $0.995
</TABLE>
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.
- ----------------------------------------------
Average Annual Total Returns
(As of November 30, 1998)
<TABLE>
<S> <C> <C>
If If
Period Held Redeemed*
Life-of-Fund 2.65% 2.34%
(4/4/94)
1 Year -10.09 -12.97
</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 plot points begin]
Growth of $10,000+
<TABLE>
<CAPTION>
Pioneer International Growth Fund* MSCI EAFE Index
<S> <C> <C>
4/94 10000 10000
10087 9943
11/94 10329 10421
9803 9928
9002 9579
11/95 9388 10433
10247 10473
10102 10679
10966 11193
11/96 11506 11546
10884 11297
11157 11935
11941 11555
11/97 12396 12417
12701 12319
12099 11887
13395 13344
11/98 13082 13796
9824 12302
10725 13842
</TABLE>
[mountain chart plot points end]
+ Index comparison begins April 30, 1994. The 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, Ireland, Italy,
Japan, Malaysia, the Netherlands, New Zealand, Norway, Portugal, 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
<PAGE>
Pioneer International Growth Fund
PERFORMANCE UPDATE 11/30/98 CLASS C SHARES
Share Prices and Distributions
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 11/30/98 11/30/97
$ 16.53 $ 22.90
Distributions per Share Income Short-Term Long-Term
(11/30/97 -11/30/98) Dividends Capital Gains Capital Gains
$ 1.030 $ 2.459 $ 0.995
</TABLE>
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.
- ----------------------------------------------
Average Annual Total Returns
(As of November 30, 1998)
<TABLE>
<S> <C> <C>
If If
Period Held Redeemed*
Life-of-Fund 0.28% 0.28%
(1/31/96)
1 Year -9.55 -9.55
</TABLE>
- ----------------------------------------------
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
[mountain chart plot points begin]
Growth of $10,000
<TABLE>
<CAPTION>
Pioneer International Growth Fund* MSCI EAFE Index
<S> <C> <C>
1/96 10000 10000
10076 10034
10588 10351
11/96 10023 10127
10275 10699
10998 10358
11420 11131
11/97 11702 11044
11143 10656
12353 11962
12067 12368
11/98 9067 11028
10079 12409
</TABLE>
[mountain chart plot points end]
The 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, Ireland, Italy, Japan, Malaysia, the Netherlands, New Zealand, Norway,
Portugal, 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 11/30/98
As Pioneer International Growth Fund's fiscal year came to a close, one of the
most volatile periods in international investing showed signs that it too may be
coming to an end or at least turning the corner. Following is an interview with
Pavlos M. Alexandrakis, senior vice-president and the Fund's portfolio manager.
Mr. Alexandrakis handles the day-to-day management of the Fund.
Q: How did volatility affect the Fund's performance over the last year?
A: Although the Fund showed strong results in the last quarter of the fiscal
year, its strong finish was not enough to erase the first nine months of
losses. Interestingly, the investment strategies that hurt performance in
the first three quarters produced its outperformance in the last. For the
fiscal year as a whole, Class A Shares posted a total return of -9.35% at
net asset value, while the 511 funds in Lipper's International category had
an average return of 10.4%. The Fund's comparative index, the Morgan Stanley
Capital International (MSCI) EAFE (Europe, Australasia, Far East) Index
returned 16.51%. (Lipper Analytical Services, Inc. is an independent
research firm that tracks mutual fund performance.)
Q: What caused the Fund's underperformance?
A: The Fund has always relied on an investment strategy that favors
value-oriented stocks. That means we like inexpensive stocks - as long as
the underlying companies meet our requirements for strong financial health
and sound business fundamentals. This investment approach led us away from
expensive European large company stocks and directed us to the extraordinary
values in emerging markets and small company stocks in Europe. This was a
different direction than many other funds took. It proved to be a costly
decision, since large companies led one of the strongest bull markets in
Europe's history. At the same time, Asia continued to suffer through one of
its worst bear markets ever. Generally speaking, international investors
fled small company stocks - and Asia nearly altogether - pumping money into
large "blue-chip" stocks in Europe and the United States.
6
<PAGE>
Pioneer International Growth Fund
In late August, Russia defaulted on loans, sending investors out of even the
blue chips. To forestall widespread and lasting panic and economic collapse,
governments around the world cut interest rates. Confidence returned,
especially for emerging markets where hard-pressed companies used the lower
rates to restructure debt and improve their balance sheets. Investors began
to notice the outstanding values available in these areas. When money
started flowing back into the neglected developing markets in October and
November, your Fund was fully invested and well-positioned to benefit from
the rally.
Q: Where, specifically, did the Fund benefit from the rally?
A: As of November 30, the Fund's portfolio was overweighted in emerging markets
compared to the MSCI EAFE Index. Many of these investments helped in the
last quarter. PT Matahari Putra Prima (Indonesia) which owns that nation's
largest chain of super-malls, Pohang Iron and Steel (Korea) and Samsung
Electronics (Korea) both did well. Despite a slow Korean economy and a tough
global steel market, Pohang found a way to deliver relatively strong
operating results. Samsung Electronics is one of the world's largest
manufacturers of memory chips, or DRAMs, used in consumer electronics and
personal computers.
Korea itself had a good year. Working with the International Monetary Fund,
it stabilized its currency, brought down interest rates and turned around
its current account status. Although Korea still has problems, including
huge debts, it is a good example of an emerging markets country that has
worked hard to put itself back on the global investing map - helping to
break the wall of fear around emerging markets.
7
<PAGE>
Pioneer International Growth Fund
PORTFOLIO MANAGEMENT DISCUSSION 11/30/98 (continued)
In Europe, value-oriented small capitalization companies like Powerscreen
International (U.K.), which makes equipment for recycling in
materials-handling industries, recovered strongly after a steep decline.
Other examples of price recovery include BTR and Siebe, two large companies
held by the Fund; they're now merging to form a global leader in the key
controls and automation markets.
Q: How was the year's volatility handled?
A: Last year illustrated the risks of investing overseas (especially in
emerging markets) where currency fluctuations, political strife and other
factors can affect the performance of international investments.
Over the course of the year, to balance the portfolio and reduce volatility,
we shed more than half of portfolio holdings in emerging markets and also
cut down investments in small companies. By the end of November, the Fund's
emerging markets component was about 10% of equity assets, with less than a
quarter of the portfolio in small caps. We moved the portfolio into
larger-capitalization stocks including DaimlerChrysler (Germany) and more
defensive stocks, such as Scottish Power (U.K.) and the French water
utility, Suez Lyonnaise Des Eaux. In Europe - especially Finland,
Switzerland and Italy - the Fund continued to invest in a surging worldwide
telecommunications industry.
Q: What do you see ahead for international investing and the Fund in 1999?
A: We're encouraged as Europe swings into the first phase of its unification,
starting in January 1999. We expect the removal of trade barriers throughout
Europe will increase competition and produce stronger more efficient
companies and that bodes well for Europe's economic future. When we can find
large European companies with solid business fundamentals and good prices,
we will add them to the portfolio. This includes investing in the more
defensive pharmaceutical and utility sectors. We will also continue to
decrease the portfolio's overall exposure to small company stocks.
8
<PAGE>
Pioneer International Growth Fund
Although the Fund won't return to the heavy allocation at the beginning of
the year, we will continue to be active in emerging markets. We expect to
concentrate on Asia where we see positive signs for a future recovery. Latin
America, we think, may have some slow years ahead, and we have chosen to
pull most investments from there for the time being. Our goal is to build a
balanced portfolio of quality stocks we think can provide our shareowners
with a solid return in 1999. In addition, a potential recovery in
undervalued emerging markets and small company stocks should add some spice
to returns.
9
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/98
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 96.3%
CONVERTIBLE CORPORATE BOND - 0.0%
$1,912,000 Bangkok Land Public Co., Ltd., 4.5%, 10/13/03 $ 61,184
----------
Total Convertible Corporate Bond
(Cost $1,393,400) $ 61,184
----------
Shares
PREFERRED STOCKS - 1.5%
1,420,000 Companhia Riograndenese de Telecomunicacoes $ 697,643
13,200 Henkel KGAA 1,116,567
2,855 Suedzucker AG 1,312,682
747,264 Telecomunicacoes de Sao Paulo SA 126,940
23,400,000 Telecomunicacoes de Sao Paulo SA (Class B)* 1,646,515
35,600 Telesudeste Celular (A.D.R.)* 961,200
----------
Total Preferred Stocks
(Cost $7,548,897) $5,861,547
----------
COMMON STOCKS - 94.8%
Basic Materials - 7.1%
Agricultural Products - 0.8%
4,183,000 IOI Corporation Bhd. $1,840,520
6,096,000 London Sumatra Indonesia 1,087,838
----------
$2,928,358
----------
Chemicals - 0.5%
46,700 BASF AG $1,767,302
----------
Chemicals (Diversified) - 1.1%
8,900 Henkel KGAA $ 684,636
4,200,000 Montedison SpA* 3,700,551
----------
$4,385,187
----------
Chemicals (Specialty) - 0.0%
3,818 Reliance Industries Ltd. $ 10,043
----------
Containers & Packaging (Paper) - 1.6%
383,000 Malaysian Pacific Industries Bhd. $ 427,347
37,950 Schmalbach Lubeca AG 5,469,525
----------
$5,896,872
----------
Gold & Precious Metals & Mining - 0.7%
2,160,715 Orogen Minerals Ltd. $2,796,831
----------
</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>
Iron & Steel - 1.1%
39,000 Boehler - Uddeholm AG $ 1,820,185
182,000 Broken Hill Proprietary Co., Ltd. 1,446,650
15,130 Pohang Iron & Steel Co. 846,005
------------
$ 4,112,840
------------
Paper & Forest Products - 1.3%
230,000 Buhrmann N.V. $ 3,739,740
1,302,000 Jaya Tiasa Holdings Bhd. 1,315,705
------------
$ 5,055,445
------------
Total Basic Materials $ 26,952,878
------------
Capital Goods - 11.7%
Electrical Equipment - 1.8%
6,954,000 IDT International Ltd. $ 1,023,836
91,900 Philips Electronics NV 5,813,719
------------
$ 6,837,555
------------
Engineering & Construction - 2.2%
579,000 Ashtead Group Plc $ 1,604,452
406,166 Powerscreen International Plc* 830,738
35,000 Technip 2,965,268
200 Unitech Ltd. 199
34,850 VA Technologies AG 2,920,106
------------
$ 8,320,763
------------
Machinery (Diversified) - 2.8%
53,300 Sampo Insurance Co., Ltd. $ 1,901,173
49,000 Sidel SA 3,712,121
900,000 Siebe Plc 3,236,219
131,000 Valmet Corp. 1,714,161
------------
$ 10,563,674
------------
Manufacturing (Diversified) - 2.4%
86,000 Bodycote International Plc $ 1,241,211
1,657,000 BTR Plc 3,389,090
12,600 Plettac AG 1,142,315
936,800 TT Group Plc 3,167,668
------------
$ 8,940,284
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/98 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Office Equipment & Supplies - 1.8%
166,000 Canon, Inc. $ 3,664,935
80,500 Koninklije Ahrend NV 1,893,920
79,789 Samas-Groep NV 1,297,348
------------
$ 6,856,203
------------
Trucks & Parts - 0.7%
1,200 Bucher Holding AG $ 1,100,050
113,300 Svedala Industri AB 1,684,955
------------
$ 2,785,005
------------
Total Capital Goods $ 44,303,484
------------
Communication Services - 9.8%
Cellular/Wireless Telecommunications - 1.1%
382,500 Cable & Wireless Optus Ltd.* $ 716,225
5,200 Panafon Hellenic Telecom SA* 93,144
14,200 Sonera Group Plc* 199,574
663,000 Telecom Italia Mobile SpA 2,790,540
759,600 United Communication Industry Public Co., Ltd.* 378,747
------------
$ 4,178,230
------------
Telephone - 8.7%
392,700 Mahanagar Telephone Nigam Ltd.* $ 1,588,600
690 NTT Data Corp. 3,013,149
104 NTT Mobile Communication Network, Inc.* 3,967,533
8,600 Swisscom AG* 2,894,793
4,221,000 Technology Resources Industries Bhd. 1,910,558
1,582,100 TelecomAsia Corp. Public Co., Ltd.* 734,077
740,000 Telecom Italia SpA Di Risp 4,621,283
802,488 Telecom Italia SpA 6,499,687
52,500 Telefonica de Argentina SA (Class B) (A.D.R.) 1,699,688
105,909 Telefonica SA 4,974,458
106,600 Videsh Sanchar Nigam Ltd. (G.D.R.) 1,089,985
------------
$ 32,993,811
------------
Total Communication Services $ 37,172,041
------------
Consumer Cyclicals - 13.4%
Automobiles - 0.5%
18,500 DaimlerChrysler AG* $ 1,737,186
------------
Auto Parts & Equipment - 0.6%
61,000 AutoLiv, Inc. $ 2,200,447
------------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Building Materials - 1.3%
97,310 Asko OY $ 1,565,713
10,620 Cemex SA de CV 25,782
554,000 Cemex SA de CV (Class B) 1,608,369
310,154 Williams Plc 1,918,436
------------
$ 5,118,300
------------
Consumer (Jewelry, Novelties, & Gifts) - 0.3%
182,000 Safilo SpA $ 987,064
------------
Homebuilding - 0.5%
23,189,000 DMCI Holdings Inc. $ 1,165,336
1,266,600 Land & House Public Co., Ltd.* 938,547
------------
$ 2,103,883
------------
Household Furniture & Appliances - 2.3%
5,150 Forbo Holding AG $ 2,268,316
24,800 Ryohin Keikaku Ltd. 2,818,182
54,000 Sony Corp. 3,949,188
------------
$ 9,035,686
------------
Leisure Time (Products) - 0.0%
1,370 Bajaj Auto Ltd. $ 17,889
200 Bajaj Auto Ltd. (Dematerialized Shares) 2,549
------------
$ 20,438
------------
Publishing (Newspapers) - 0.2%
705,000 Star Publications $ 749,526
------------
Retail (Department Stores) - 0.5%
56,411,500 PT Matahari Putra Prima* $ 1,899,377
------------
Retail (General Merchandise) - 0.1%
826,000 Woolworths Holdings Ltd. $ 413,526
------------
Retail (Home Shopping) - 0.9%
436,500 Next Plc $ 3,563,924
------------
Retail (Specialty) - 1.1%
370,000 Arriva Plc $ 2,538,832
498,000 Carpetright Plc 1,634,637
------------
$ 4,173,469
------------
Retail (Specialty/Apparel) - 0.3%
6,252,000 Giordano International Ltd.* $ 1,025,448
------------
Services (Commercial & Consumer) - 3.8%
54,700 Hagemeyer NV $ 1,918,947
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/98 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Services (Commercial & Consumer) - (continued)
565,000 Hays Plc $ 4,771,527
1,647,800 Jasmine International Public Co., Ltd.* 456,454
71,502,200 Net Holding AS* 311,892
326,000 Rentokil Initial Plc 2,123,996
185,500 Select Appointments Holdings Plc 1,915,390
108,900 Stork NV 2,772,745
------------
$ 14,270,951
------------
Textiles (Apparel) - 0.2%
4,955,000 Goldiron Holdings Ltd. $ 601,537
16 Super Spinning Mills* 12
------------
$ 601,549
------------
Textiles (Home Furnishings) - 0.8%
23,323 Chargeurs International SA $ 1,223,707
85,000 Industrie Natuzzi SpA (A.D.R.) 1,880,625
------------
$ 3,104,332
------------
Total Consumer Cyclicals $ 51,005,106
------------
Consumer Staples - 7.0%
Beverages (Non-Alcoholic) - 0.5%
62,096 Louis Dreyfus Citrus $ 1,743,080
------------
Broadcasting (Television/Radio/Cable) - 0.9%
15,782,000 Benpres Holdings Corp. (G.D.R.)* $ 2,323,239
186,600 Central European Media Enterprises Ltd.* 1,212,900
------------
$ 3,536,139
------------
Distributors (Food & Health) - 0.4%
24,000 Gehe AG $ 1,534,970
------------
Entertainment - 1.4%
13,730 Pathe SA $ 2,896,013
139,800 Pearson Plc 2,513,464
------------
$ 5,409,477
------------
Foods - 1.0%
27,200 Huhtamaki (Series I) $ 1,001,842
12,335,625 JG Summit Holding Inc. (Series B)* 798,372
4,096,875 JG Summit Holding Inc. (Series B)+* 265,153
417,800 Thai Union Frozen Products Public Co., Ltd. 1,475,609
------------
$ 3,540,976
------------
Household Products (Non-Durables) - 1.3%
138,000 Hunter Douglas NV $ 4,747,425
------------
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Restaurants - 0.2%
1,165,000 Kentucky Fried Chicken Bhd. $ 833,895
------------
Retail Stores (Food Chains) - 0.8%
39,400 Delhaize-Le Lion, SA $ 3,231,631
------------
Services (Facilities & Environment) - 0.5%
76,700 Brambles Industries Ltd. $ 1,879,872
------------
Total Consumer Staples $ 26,457,465
------------
Energy - 5.0%
Oil (International Integrated) - 1.6%
19,300 Elf Aquitaine $ 2,405,206
844,000 Saipem SpA 3,675,464
------------
$ 6,080,670
------------
Oil & Gas (Exploration & Production) - 1.2%
1,187,000 Cultus Petroleum NL* $ 537,013
3,230 Oil & Natural Gas Commission Ltd. 14,049
73,000 Veba AG 4,044,917
------------
$ 4,595,979
------------
Oil & Gas (Refining & Marketing) - 2.2%
138,900 Hindustan Petroleum Corp., Ltd. $ 793,668
98,500 Repsol SA (L Shares) 5,581,780
15,600 Total SA (Class B) 1,933,136
------------
$ 8,308,584
------------
Total Energy $ 18,985,233
------------
Financial - 14.0%
Banks (Major Regional) - 5.9%
598,000 Banca Popolare di Milano $ 5,464,682
119,340 Banco De Santander SA 2,438,885
220,000 Dao Heng Bank Ltd. 642,129
21,000 DePfa-Bank 1,733,031
262,220 Development Bank of Singapore Ltd. 1,987,117
132,000 Housing & Commercial Bank 901,541
4,290,000 JCG Holdings Ltd. 1,523,634
119,831 Kookmin Bank 562,609
2,247,600 National Finance Public Co., Ltd.* 747,125
28,000 Societe Generale 4,409,759
750 State Bank of India Ltd. (Dematerialized Shares) 2,589
250 State Bank of India Ltd. 884
47,950 Svenska Handelbanken 1,933,016
------------
$ 22,347,001
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/98 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Banks (Money Center) - 1.4%
338,500 San Paolo - IMI SpA* $ 5,551,823
------------
Banks (Regional) - 0.5%
296,000 Australia & New Zealand Banking Ltd. $ 1,954,771
------------
Financial (Diversified) - 3.2%
124,500 AMP Ltd.* $ 1,613,015
2,384 Industrial Credit & Investment Corp. of India Ltd. 2,393
4,722 Industrial Credit & Investment Corp. of India Ltd.
(Dematerialized Shares) 4,741
64,000 ING Groep NV CVA 3,663,931
37,900 Nichiei Co., Ltd. 3,051,688
11,300 Shohkoh Fund 3,723,864
------------
$ 12,059,632
------------
Insurance (Multi-Line) - 2.0%
10,350 Axa Colonia Konzern AG $ 1,214,094
39,000 Catalana Occidente SA 1,056,391
1,564,800 Malaysian Assurance Alliance Bhd.* 1,238,663
5,500 Zurich Allied AG* 3,927,164
------------
$ 7,436,312
------------
Savings & Loan Companies - 1.0%
2,406,000 Hong Leong Finance Ltd. $ 3,865,353
------------
Total Financial $ 53,214,892
------------
Healthcare - 6.7%
Healthcare (Drugs/Generic & Other) - 0.4%
70,000 Sankyo Co. Ltd. $ 1,590,909
------------
Healthcare (Drugs/Major Pharmaceuticals) - 5.0%
104,666 Astra AB $ 1,916,748
75,860 Fabrica Espanola de Productos Quimicos y Farmaceuticos, SA 1,261,268
283,400 Medeva Plc 481,477
4,785 Novartis AG 8,978,515
67,135 Rhone-Poulenc SA 3,345,421
156 Roche Holdings AG 1,832,271
870,000 SkyePharma Plc* 1,191,067
------------
$ 19,006,767
------------
Healthcare (Medical Products/Supplies) - 1.3%
196,200 Biora AB* $ 1,350,393
168,000 Terumo Corp. 3,729,545
------------
$ 5,079,938
------------
Total Healthcare $ 25,677,614
------------
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Technology - 15.7%
Communications Equipment - 4.4%
24,400 Alcatel Alsthom SA $ 3,225,199
38,750 ECI Telecommunications Ltd. 1,385,313
63,700 Nokia AB 6,365,678
115,200 Tadiran Telecommunications Ltd. 2,253,600
122,300 Telefonaktiebolaget LM Ericsson (Series B) 3,397,097
-----------
$16,626,887
-----------
Computers (Hardware) - 0.5%
40,000 Samsung Electronics Co. $ 2,138,042
-----------
Computers (Peripherals) - 0.5%
13,500 Logitech International AG* $ 1,677,469
26,300 Logitech International AG (A.D.R.)* 318,888
-----------
$ 1,996,357
-----------
Computers (Software & Services) - 1.8%
31,000 NIIT Ltd. (Dematerialized Shares) $ 963,927
86,000 Pentafour Software & Exports Ltd. 982,598
45,000 Pentafour Software & Exports Ltd. (G.D.R.) 514,152
100,000 Satyam Computer Services Ltd. 1,233,560
226,500 Tecnomatix Technologies Ltd.* 3,086,063
-----------
$ 6,780,300
-----------
Electronics (Component Distributors) - 2.4%
8,100 Barco N.V $ 2,169,043
854,200 KCE Electronics Public Co., Ltd.* 1,407,892
463,000 Toshiba Corp. 2,593,101
582,000 Varitronix International Ltd. 1,112,437
510,000 Venture Manufacturing Ltd.* 1,947,863
-----------
$ 9,230,336
-----------
Electronics (Instrumentation) - 0.9%
649,500 Elec & Eltek International Co., Ltd. $ 3,344,925
-----------
Electronics (Semiconductors) - 4.1%
843,000 Advanced Semiconductor Engineering Inc.* $ 1,701,849
40,100 Rohm Co., Ltd. 3,385,065
40,000 SGS Thomson Microelectronics (A.D.R.)* 2,685,000
42,700 STMicroelectronics NV* 2,987,169
696,000 Taiwan Semiconductors Manufacturing Co.* 1,683,956
81,000 Tokyo Electron Ltd. 3,024,351
-----------
$15,467,390
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer International Growth Fund
SCHEDULE OF INVESTMENTS 11/30/98 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Equipment (Semiconductor) - 0.2%
2,356,000 ASM Pacific Technology Ltd. $ 897,611
------------
Services (Computer Systems) - 0.2%
1,366,000 Loxley Public Co., Ltd.* $ 586,510
------------
Services (Data Processing) - 0.7%
253,000 Merkantildata ASA $ 2,737,144
------------
Total Technology $ 59,805,502
------------
Transportation - 0.4%
Airlines - 0.4%
222,000 British Airways Plc $ 1,501,329
389,000 Modi Luft Ltd.* 27,407
------------
$ 1,528,736
------------
Railroads - 0.0%
526 Great Eastern Shipping Co. $ 295
------------
Total Transportation $ 1,529,031
------------
Utilities - 4.0%
Electric Companies - 2.1%
2,250 BSES Ltd. (Dematerialized Shares) $ 8,323
50 BSES Ltd. 170
136,500 Endesa SA 3,560,253
402,000 Scottish Power Plc 4,263,595
------------
$ 7,832,341
------------
Natural Gas - 0.2%
393,000 Fletcher Challenge Energy* $ 829,491
------------
Power Producers - 0.7%
1,867,000 AEM SpA* $ 2,800,917
------------
Water Utilities - 1.0%
19,200 Suez Lyonnaise Des Eaux $ 3,789,918
------------
Total Utilities $ 15,252,667
------------
Total Common Stocks
(Cost $388,304,191) $360,355,913
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $397,246,488) (a) $366,278,644
------------
</TABLE>
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
TEMPORARY CASH INVESTMENT - 3.7%
Commercial Paper - 3.7%
$13,897,000 Household Finance Corp., 5.38%, 12/1/98 $ 13,897,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $13,897,000) $ 13,897,000
------------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY
CASH INVESTMENT - 100%
(Cost $411,143,488) (b)(c) $380,175,644
============
</TABLE>
* Non-income producing security.
+ Security is restricted for resale until receipt of shares in six month
intervals from January 1999 through January 2000.
(a) Distribution of investments by country of issue, as a percentage of total
equity holdings, is as follows:
<TABLE>
<S> <C>
United Kingdom 11.4%
Japan 10.5
Italy 10.4
France 9.5
Netherlands 7.8
Switzerland 6.3
Germany 5.9
Spain 5.2
Finland 3.5
Sweden 3.4
Australia 3.0
Singapore 3.0
Malayasia 2.3
India 2.0
Hong Kong 1.9
Thailand 1.9
Israel 1.8
Belgium 1.5
Austria 1.3
Philippines 1.2
South Korea 1.2
Others (Individually less than 1%) 5.0
-----
100.0%
=====
</TABLE>
(b) At November 30, 1998, the net unrealized loss on investments based on cost
for federal income tax purposes of $417,748,694 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 33,160,641
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (70,733,691)
------------
Net unrealized loss $(37,573,050)
============
</TABLE>
(c) At November 30, 1998, the Fund had a capital loss carry forward of
$46,222,643 which will expire in 2006 if not used.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended November 30, 1998, aggregated $527,456,526 and $580,104,542,
respectively.
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer International Growth Fund
BALANCE SHEET 11/30/98
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash
investment of $13,897,000)(cost $411,143,488) $380,175,644
Cash 3,797
Foreign currencies, at value 2,264,906
Receivables -
Investment securities sold 1,012,289
Fund shares sold 1,226,990
Dividends, interest and foreign taxes withheld 862,319
Forward foreign currency settlement hedge contracts, net 3,422
Forward foreign currency portfolio hedge contracts, closed - net 1,454,516
Other 8,052
-------------
Total assets $387,011,935
-------------
LIABILITIES:
Payables -
Investment securities purchased $ 3,065,071
Fund shares repurchased 3,016,159
Forward foreign currency portfolio hedge contracts, open - net 1,135,439
Due to affiliates 641,435
Accrued expenses 223,141
-------------
Total liabilities $ 8,081,245
-------------
NET ASSETS:
Paid-in capital $467,262,338
Accumulated undistributed net investment income 1,728,003
Accumulated net realized loss on investments and
foreign currency transactions (57,958,814)
Net unrealized loss on investments (30,967,844)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (1,132,993)
-------------
Total net assets $378,930,690
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $314,380,838/18,342,162 shares) $ 17.14
============
Class B (based on $58,519,117/3,519,688 shares) $ 16.63
============
Class C (based on $6,030,735/364,870 shares) $ 16.53
============
MAXIMUM OFFERING PRICE:
Class A $ 18.19
============
</TABLE>
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
STATEMENT OF OPERATIONS
For the Year Ended 11/30/98
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $900,669) $ 9,465,472
Interest (net of foreign taxes withheld of $937) 983,784
------------
Total investment income $ 10,449,256
------------
EXPENSES:
Management fees $ 4,258,952
Transfer agent fees
Class A 988,565
Class B 264,720
Class C 13,969
Distribution fees
Class A 926,433
Class B 734,354
Class C 83,597
Accounting 126,622
Custodian fees 711,640
Registration fees 32,478
Professional fees 139,808
Printing 94,078
Fees and expenses of nonaffiliated trustees 17,450
Miscellaneous 38,877
------------
Total expenses $ 8,431,543
Less fees paid indirectly (36,425)
------------
Net expenses $ 8,395,118
------------
Net investment income $ 2,054,138
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $(52,397,204)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 4,513,365 $(47,883,839)
------------ ------------
Change in net unrealized gain or loss from:
Investments $ 10,199,616
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (3,392,330) $ 6,807,286
------------ ------------
Net loss on investments and foreign currency
transactions $(41,076,553)
------------
Net decrease in net assets resulting from operations $(39,022,415)
============
</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 11/30/98 and 11/30/97
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/98 11/30/97
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 2,054,138 $ 1,977,409
Net realized gain (loss) on investments and foreign
currency transactions (47,883,839) 84,256,383
Change in net unrealized gain or loss on investments
and foreign currency transactions 6,807,286 (45,193,791)
------------- ------------
Net increase (decrease) in net assets resulting from
operations $ (39,022,415) $ 41,040,001
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($1.15 and $0.26 per share, respectively) $ (19,268,038) $ (4,209,556)
Class B ($1.00 and $0.12 per share, respectively) (3,505,142) (388,111)
Class C ($1.03 and $0.24 per share, respectively) (357,766) (68,180)
Net realized gain:
Class A ($3.45 and $1.47 per share, respectively) (57,897,428) (23,543,245)
Class B ($3.45 and $1.47 per share, respectively) (12,190,151) (4,472,638)
Class C ($3.45 and $1.47 per share, respectively) (1,209,372) (393,748)
------------- ------------
Total distributions to shareholders $ (94,427,897) $(33,075,478)
------------- ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 354,096,823 $187,745,265
Reinvestment of distributions 81,627,184 28,780,975
Cost of shares repurchased (409,656,326) (192,267,534)
------------- ------------
Net increase in net assets resulting from fund share
transactions $ 26,067,681 $ 24,258,706
------------- ------------
Net increase (decrease) in net assets $(107,382,631) $ 32,223,229
NET ASSETS:
Beginning of year 486,313,321 454,090,092
------------- ------------
End of year (including accumulated undistributed net
investment income of $1,728,003 and $17,373,634,
respectively) $ 378,930,690 $486,313,321
============= ============
</TABLE>
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
For the Years Ended 11/30/98 and 11/30/97
<TABLE>
<CAPTION>
CLASS A '98 Shares '98 Amount '97 Shares '97 Amount
<S> <C> <C> <C> <C>
Shares sold 12,785,423 $236,139,826 5,456,967 $131,194,746
Reinvestment of distributions 3,705,396 68,196,730 1,142,596 24,704,550
Less shares repurchased (14,870,731) (276,970,065) (6,082,244) (146,346,003)
----------- ------------ ---------- ------------
Net increase 1,620,088 $ 27,366,491 517,319 $ 9,553,293
=========== ============ ========== ============
CLASS B
Shares sold 1,155,440 $ 21,251,455 1,034,695 $ 24,566,818
Reinvestment of distributions 695,509 12,514,722 181,443 3,859,829
Less shares repurchased (1,858,942) (33,266,363) (705,023) (16,791,077)
----------- ------------ ---------- ------------
Net increase (decrease) (7,993) $ 499,814 511,115 $ 11,635,570
=========== ============ ========== ============
CLASS C
Shares sold 5,432,534 $ 96,705,542 1,309,647 $ 31,983,701
Reinvestment of distributions 51,487 915,732 10,261 216,596
Less shares repurchased (5,525,362) (99,419,898) (1,179,805) (29,130,454)
----------- ------------ ---------- ------------
Net increase (decrease) (41,341) $ (1,798,624) 140,103 $ 3,069,843
=========== ============ ========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements. 23
<PAGE>
Pioneer International Growth Fund
FINANCIAL HIGHLIGHTS 11/30/98
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended Year Ended
11/30/98 11/30/97 11/30/96 11/30/95 11/30/94(a)
<S> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year $ 23.66 $ 23.39 $ 21.21 $ 21.55 $ 20.91
------- ------- ------- -------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.14 $ 0.13 $ 0.10 $ (0.04) $ 0.19
Net realized and unrealized gain (loss) on investments and
foreign currency transactions ( 2.06) 1.87 2.32 0.80 1.87
------- ------- ------- -------- -------
Net increase (decrease) from investment operations $ (1.92) $ 2.00 $ 2.42 $ 0.76 $ 2.06
Distributions to shareholders:
Net investment income (1.15) (0.26) - - (0.03)
Net realized gain (3.45) (1.47) (0.24) (1.10) (1.39)
------- ------- ------- -------- --------
Net increase (decrease) in net asset value $ (6.52) $ 0.27 $ 2.18 $ (0.34) $ 0.64
------- ------- ------- -------- --------
Net asset value, end of year $ 17.14 $ 23.66 $ 23.39 $ 21.21 $ 21.55
======= ======= ======= ======== ========
(9.35)% 9.28% 11.40% 3.81% 10.03%
Ratio of net expenses to average net assets 1.73%+ 1.69%+ 1.77%+ 2.00%+ 1.95%
Ratio of net investment income (loss) to average net assets 0.60%+ 0.51%+ 0.26%+ (0.23)%+ 0.84%
Portfolio turnover rate 123% 154% 173% 219% 275%
Net assets, end of year (in thousands) $314,381 $395,572 $378,956 $308,488 $282,033
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.72% 1.67% 1.76% 1.98% -
Net investment income (loss) 0.61% 0.53% 0.27% ( 0.21)% -
</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.
+ Ratio assuming no reduction for fees paid indirectly.
24 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
FINANCIAL HIGHLIGHTS 11/30/98
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/98(a) 11/30/97
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 23.09 $ 22.89
------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.04) $ (0.06)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions (1.97) 1.85
------- -------
Net increase (decrease) from investment operations $ (2.01) $ 1.79
Distributions to shareholders:
Net investment income (1.00) (0.12)
Net realized gain (3.45) (1.47)
------- -------
Net increase (decrease) in net asset value $ (6.46) $ 0.20
------- -------
Net asset value, end of period $ 16.63 $ 23.09
======= =======
Total return* (10.09)% 8.44%
Ratio of net expenses to average net assets 2.57%+ 2.49%+
Ratio of net investment income (loss) to average net assets (0.24)%+ (0.23)%+
Portfolio turnover rate 123% 154%
Net assets, end of period (in thousands) $58,519 $81,438
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.56% 2.47%
Net investment loss (0.23)% (0.21)%
</TABLE>
Pioneer International Growth Fund
FINANCIAL HIGHLIGHTS 11/30/98
<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 (loss) on investments and
foreign currency transactions 2.04 0.76 0.33
------- ------- ------
Net increase (decrease) 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%
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 sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 25
<PAGE>
Pioneer International Growth Fund
FINANCIAL HIGHLIGHTS 11/30/98
<TABLE>
<CAPTION>
Year Ended Year Ended 1/31/96 to
11/30/98(a) 11/30/97(a) 11/30/96
<S> <C> <C> <C>
CLASS C
Net asset value, beginning of period $22.90 $22.84 $22.46
------ ------ -------
Increase (decrease) from investment operations:
Net investment income (loss) $(0.02) $ - $ 0.02
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (1.87) 1.77 0.60
------ ------ -------
Net increase (decrease) from investment
operations $(1.89) $ 1.77 $ 0.62
Distributions to shareholders:
Net investment income (1.03) (0.24) -
Net realized gain (3.45) (1.47) (0.24)
------ ------ -------
Net increase (decrease) in net asset value $(6.37) $ 0.06 $ 0.38
------ ------ -------
Net asset value, end of period $16.53 $22.90 $22.84
====== ====== =======
Total return* (9.55)% 8.45% 2.75%
Ratio of net expenses to average net assets 2.38%+ 2.50%+ 2.36%**+
Ratio of net investment income (loss) to average
net assets (0.13)%+ (0.03)%+ 0.13%**+
Portfolio turnover rate 123% 154% 173%
Net assets, end of period (in thousands) $6,031 $9,303 $6,078
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.35% 2.47% 2.31%**
Net investment income (loss) (0.10)% 0.00% 0.18%**
</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.
26 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
NOTES TO FINANCIAL STATEMENTS 11/30/98
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. The net
asset value is computed once daily, on each day the New York Stock Exchange
is open, as of the close of regular trading on the Exchange. In computing the
net asset value, securities are valued at the last sale price on the
principal exchange where they are traded. Securities that have not traded on
the date of valuation, or securities for which sale prices are not generally
reported, are valued at the mean between the last bid and asked prices.
Securities for which market quotations are not readily available are valued
at their fair values as determined by, or under the direction of, the Board
of Trustees. 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
27
<PAGE>
Pioneer International Growth Fund
NOTES TO FINANCIAL STATEMENTS 11/30/98 (continued)
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.
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.
At November 30, 1998, the Fund also had investments in certain securities
with a market value of $8,316,214 which, if sold, cannot be repatriated until
one year after sale.
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
28
<PAGE>
Pioneer International Growth Fund
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).
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, 1998, the Fund
paid no capital gains taxes on the sale of certain foreign securities.
At November 30, 1998, the Fund has reclassified $5,431,177 from accumulated
net realized loss on investments and foreign currency transactions to
distributions in excess of 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.
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 $237,661 in
underwriting commissions on the sale of fund shares during the year ended
November 30, 1998.
29
<PAGE>
Pioneer International Growth Fund
NOTES TO FINANCIAL STATEMENTS 11/30/98 (continued)
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 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.
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,
Pioneer Investment Management, Inc. (PIM) (formerly Pioneering Management
Corp.), is responsible for determining that the value of the collateral
remains at least equal to the repurchase price.
2. Management Agreement
PIM 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 the excess over $500 million.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At November 30, 1998,
30
<PAGE>
Pioneer International Growth Fund
$318,398 was payable to PIM related to management fees, administrative 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 $207,090 in transfer agent fees payable to PSC at November 30,
1998.
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 $115,947 in distribution fees payable
to PFD at November 30, 1998.
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, 1998, CDSCs in the amount of $228,747 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, 1998,
the Fund's expenses were reduced by $36,425 under such arrangements.
31
<PAGE>
Pioneer International Growth Fund
NOTES TO FINANCIAL STATEMENTS 11/30/98 (continued)
6. Forward Foreign Currency Contracts
At November 30, 1998, 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, 1998 were as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Contracts In Exchange Settlement Net Unrealized
Currency to Deliver For Date Value Gain (Loss)
- ---------- ------------------- ----------------- ------------ ---------------- ---------------
<S> <C> <C> <C> <C> <C>
GBP (5,975,143) $(10,000,000) 10/19/99 $ (9,763,731) $ 236,269
GBP (15,121,273) (25,000,000) 11/19/99 (24,692,902) 307,098
HKD (37,081,500) (4,553,789) 2/12/99 (4,782,179) (228,390)
JPY (614,310,000) (5,139,360) 1/28/99 (5,028,127) 111,233
JPY (3,773,830,000) (30,000,000) 6/16/99 (31,458,647) (1,458,647)
KRW (1,557,000,000) (1,116,129) 8/4/99 (1,219,131) (103,002)
------------ ------------ -----------
$(75,809,278) $(76,944,717) $(1,135,439)
============ ============ ===========
</TABLE>
- -------------------------------------------------------------------------------
Included in accumulated net realized loss on investments and foreign currency
transactions is $1,454,516, which represents the realized gain on closed but
unsettled portfolio hedges totaling $58,013,101.
At November 30, 1998, the gross forward foreign currency settlement contracts
receivable and payable were $842,267 and $838,845 respectively, resulting in a
net receivable of $3,422.
7. Line of Credit Facility
Effective April 14, 1998, the Fund, along with certain other funds in the
Pioneer Family of Funds (the Funds), collectively participate in a $50 million
committed, unsecured revolving line of credit facility. Borrowings are used
solely for temporary or emergency purposes. The Fund may borrow up to the lesser
of $50 million or the limits set by its prospectus for borrowings. Interest on
collective borrowings of up to $25 million is payable at the Federal Funds Rate
plus 3/8% on an annualized basis, or at the Federal Funds Rate plus 1/2% if the
borrowing exceeds $25 million at any one time. The Funds pay an annual
commitment fee for this facility. The commitment fee is allocated among such
Funds based on their respective borrowing limits. For the period ended November
30, 1998, the Fund had no borrowings under this agreement.
32
<PAGE>
Pioneer International Growth Fund
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareowners 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, 1998, 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 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, 1998, 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, 1998, 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 8, 1999
33
<PAGE>
Pioneer International Growth Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
<TABLE>
<CAPTION>
Trustees Officers
<S> <C>
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham Norman Kurland, Vice President
John W. Kendrick John A. Boynton, Treasurer
Marguerite A. Piret Joseph P. Barri, Secretary
David D. Tripple
Stephen K. West
John Winthrop
</TABLE>
Investment Adviser
Pioneer Investment Management, Inc.
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.
<TABLE>
<S> <C>
Growth Funds Income Funds
United States Taxable
Pioneer Capital Growth Fund Pioneer America Income Trust
Pioneer Growth Shares Pioneer Bond Fund
Pioneer Micro-Cap Fund Pioneer Short-Term Income Trust
Pioneer Mid-Cap Fund
Pioneer Small Company Fund Tax-Free
Pioneer Tax-Free Income Fund
International/Global
Pioneer Emerging Markets Fund Money Market Fund
Pioneer Europe Fund Pioneer Cash Reserves Fund
Pioneer Gold Shares
Pioneer Indo-Asia Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
</TABLE>
35
<PAGE>
RETIREMENT PLANS FROM PIONEER
Pioneer has a long history of helping people work toward their retirement goals,
offering plans suited to the individual investor and businesses of all sizes.
For more information on Pioneer retirement plans, contact your investment
professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 701/2 with earned
income to contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
The Roth IRA lets investors contribute up to $2,000 a year. Contributions are
not tax-deductible, but earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $9,500 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match Plan for Employees)
401(k) or IRA Plan
Businesses with 100 or fewer eligible employees can establish either plan; both
resemble the traditional 401(k), but with less testing and lower administration
costs. Employees can make pre-tax contributions of up to $6,000 per year, and an
employer contribution is required.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
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<PAGE>
403(b) Plan
Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is available only to
employees of public schools, not-for-profit hospitals and other tax-exempt
organizations. A 403(b) plan lets employees set aside a portion of their salary,
before taxes, through payroll deduction.
Simplified Employee Pension Plan (SEP)
SEPs let self-employed people and small-business owners make tax-deductible
contributions of up to 15% of their income. Generally, employers must contribute
the same percentage of pay for themselves and any eligible employees;
contributions are made directly to employees' IRAs. SEPs are easy to administer
and can be an especially good choice for firms with few or no employees.
Profit Sharing Plan
Profit sharing plans offer companies considerable flexibility, allowing them to
decide each year whether a contribution will be made and how much, up to 15% of
each participant's pay. These plans can include provisions for loans and vesting
schedules.
Age-Weighted Profit Sharing Plan
Like traditional profit sharing plans, employer contributions are flexible, but
age-weighted plans allocate contributions based on both age and salary. Age-
weighted plans are designed for employers who want to maximize their own
contributions while keeping contributions to employees affordable.
Money Purchase Pension Plan (MPP)
Money purchase plans are similar to profit-sharing plans, but allow for higher
annual contributions - up to 25% of pay. MPPs aren't as flexible as profit
sharing plans; a fixed percentage of pay must be contributed each year,
determined when the plan is established. Businesses often set up both MPPs and
profit sharing plans.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
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 Investment Management, Inc.
60 State Street 0199-5882
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [recycle logo] Printed on Recycled Paper
