<PAGE>
[Graphic: Pioneer Logo]
Pioneer
International Growth
Fund
- ----------------------
ANNUAL REPORT 11/30/99
- ----------------------
<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 9
Financial Statements 17
Notes to Financial Statements 24
Report of Independent Public Accountants 30
Trustees, Officers and Service Providers 31
Retirement Plans from Pioneer 32
Programs and Services for Pioneer Shareowners 34
The Pioneer Family of Mutual Funds 36
</TABLE>
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
LETTER FROM THE CHAIRMAN 11/30/99
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
As we move forward into the new millennium, it seems a suitable time to look
back on how the world of investing has changed since Pioneer was founded in
1928. The creation of affordable investment options, including mutual funds,
has brought opportunity to millions of people worldwide and surely should be
counted among this century's greatest accomplishments. Just consider the impact
a few notable innovations - money market funds, employer-sponsored retirement
vehicles and the concept of international investing - have had on your life.
In some ways, investing has changed a great deal. One thing, however, remains
the same - our belief in the importance of a long-term perspective. Attempts at
market timing and the advent of day-trading unfortunately have led some to
adopt a "get rich quick" mentality. Looking back over time, lasting wealth has
come to investors who held to their discipline and didn't veer off course to
chase the rising star of the day. A solid, forward-thinking plan can offer
great rewards, even though it can be a tad dull moment to moment.
For those of you who are interested in new Pioneer products, we are pleased to
introduce Pioneer Tax-Managed Fund. The Fund builds on Pioneer's 71-year value
tradition, focusing on companies with quality management, market leadership,
solid assets and attractively priced stocks. To receive a prospectus for our
newest fund, which contains more information, including charges or expenses,
please contact your investment professional or call Pioneer at 1-800-225-6292.
Please read the prospectus carefully before you invest.
I encourage you to read on to learn more about your Fund, including
the question and answer session with portfolio manager Pavlos
M. Alexandrakis.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 11/30/99
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Data for pie chart]
<TABLE>
<S> <C>
International Common Stocks 95%
Depositary Receipts for International Stocks 3%
International Preferred Stocks 1%
Convertible Corporate Bonds 1%
</TABLE>
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
Japan 23% Israel 1%
United Kingdom 19% United States 1%
France 10% South Korea 1%
Germany 9% Hong Kong 1%
Finland 5% Mexico 1%
Netherlands 5% Malaysia 1%
Switzerland 4% Sweden 1%
Italy 4% Taiwan 1%
Spain 4% Canada 1%
Australia 3% Norway 1%
Singapore 2%
Brazil 2%
</TABLE>
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. NTT Mobile Communications Network, Inc. 3.19%
2. Softbank Corp. 2.51
3. Mannesman AG 2.25
4. Nokia AB 2.13
5. Sony Corp. 1.83
6. Telefonica SA 1.80%
7. Matsushita Communication Industrial Ltd. 1.80
8. Rohm Co., Ltd. 1.74
9. Siemens AG 1.64
10. Ryohin Keikaku Ltd. 1.62
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 11/30/99 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 11/30/99 11/30/98
$21.24 $17.14
Distributions per Share Income Short-Term Long-Term
(11/30/98 -11/30/99++) Dividends Capital Gains Capital Gains
$0.130 - -
</TABLE>
++ The Fund also paid non-taxable distributions of $0.065 per share.
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.
<TABLE>
<CAPTION>
- ----------------------------------------
Average Annual Total Returns
(As of November 30, 1999)
Public
Net Asset Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund
(3/25/93) 12.45% 11.45%
5 Years 7.41 6.15
1 Year 24.77 17.57
- ----------------------------------------
</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.
[Data for mountain chart]
Growth of $10,000+
<TABLE>
<CAPTION>
Pioneer
International MSCI
Growth EAFE
Fund* Index
<S> <C> <C>
3/93 9425 10000
10170 11180
11/93 13134 11040
14807 12696
11/94 14451 12676
13892 13322
11/95 15002 13638
17153 14745
11/96 16713 15243
18635 15858
11/97 18263 15180
19821 17617
11/98 16556 17673
17051 18381
11/99 20656 21402
</TABLE>
+ 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 11/30/99 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 11/30/99 11/30/98
$20.56 $16.63
Income Short-Term Long-Term
Distributions per Share
(11/30/98 -11/30/99)++ Dividends Capital Gains Capital Gains
$0.007 -- --
</TABLE>
++ The Fund also paid non-taxable distributions of $0.003 per share.
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.
<TABLE>
<CAPTION>
- ----------------------------------------
Average Annual Total Returns
(As of November 30, 1999)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 6.09% 5.96%
(4/4/94)
5 Years 6.54 6.39
1 Year 23.71 19.71
- ----------------------------------------
</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.
[Data for mountain chart]
Growth of $10,000+
<TABLE>
<CAPTION>
Pioneer
International MSCI
Growth EAFE
Fund* Index
<S> <C> <C>
4/94 10000 10000
10087 9943
11/94 9803 9927
9388 10433
11/95 10102 10680
11506 11548
11/96 11157 11937
12396 12419
11/97 12099 11888
13076 13796
11/98 10877 13841
11146 14395
11/99 13362 16761
</TABLE>
+ 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 11/30/99 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 11/30/99 11/30/98
$20.43 $16.53
Income Short-Term Long-Term
Distributions per Share Dividends Capital Gains Capital Gains
(11/30/98 -11/30/99)++ $0.009 -- --
</TABLE>
++ The Fund also paid non-taxable distributions of $0.004 per share.
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.
<TABLE>
<CAPTION>
- ---------------------------------------
Average Annual Total Returns
(As of November 30, 1999)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 5.93% 5.93%
(1/31/96)
1 Year 23.69 23.69
- ---------------------------------------
</TABLE>
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
period and assumes reinvestment of distributions at net asset value.
[Data for mountain chart]
Growth of $10,000+
<TABLE>
<CAPTION>
Pioneer
International MSCI
Growth EAFE
Fund* Index
<S> <C> <C>
1/96 10000 10000
10076 10034
10588 10351
10023 10127
11/96 10275 10700
10998 10359
11420 11132
11702 11044
11/97 11143 10656
12353 11962
12061 12367
9067 11027
11/98 10079 12406
9812 12551
10331 12903
11277 13855
11/99 12467 15024
</TABLE>
+ Index Comparison begins January 31, 1996. 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 11/30/99
- --------------------------------------------------------------------------------
One can sense an air of optimism in international markets these days. In the
following interview, portfolio manager Pavlos M. Alexandrakis discusses factors
that influenced your Fund's performance over the 12 months ending November 30,
1999.
Q: Was the rally in international markets widespread?
A: Very much so. From the Pacific Rim to Europe, stock markets made notable
advances - helped in large part by technology and telecommunication
stocks. The Fund was well positioned to benefit, given its broad country
diversity and prudent stock picking. Class A, B and C shares generated
total returns of 24.77%, 23.71% and 23.69%, respectively, at net asset
value for the year ending November 30, 1999. The Fund's comparative
benchmark, the Morgan Stanley Capital International (MSCI) EAFE (Europe,
Australasia, Far East) Index returned 21.10% for the same period.
Q: What accounts for the Fund's good performance relative to its benchmark?
A: Our emphasis on stock-picking in the top-performing countries of Finland
and Singapore and our decision to dramatically increase Japanese
investments proved wise. Fund holding Nokia (Finland), a leader in
wireless technology, climbed 191% for the year. In Singapore, we
concentrated holdings in businesses implementing U.S.-style management
techniques to improve returns on equity, including Development Bank of
Singapore. Elsewhere in Asia's emerging markets, our limited but highly
successful investments in blue-chip telecommunication stocks appreciated
handsomely.
Economic recovery, reform and fiscal discipline are improving Japan's
prospects. NTT Mobile Communications Network, the Fund's largest holding,
rose more than 300%. We doubled our investments in Japan to 23% of equity
assets by November 30, but this weighting is still a bit shy of the
benchmark's allocation. However, we feel some caution is warranted, since
the yen may need to weaken in the coming months. (A weaker yen would help
maintain the competitiveness of Japanese products abroad.)
6
<PAGE>
Pioneer International Growth Fund
Q: Please comment on the Fund's current structure.
A: The Fund is structured as a core international fund to complement a
well-diversified portfolio of U.S. investments. We use a research-intensive,
bottom-up approach that focuses on fundamentally sound companies that are
selling below their intrinsic worth. About 80% of your Fund's assets are
invested in undervalued, high-quality companies that we expect will be the
market leaders for years to come. News Corp. (Australia) and Sony (Japan)
exemplify this strategy. The remaining 20% of equity assets is invested a
bit more opportunistically. Here, we are searching for companies that are
trying to capitalize on specific lifestyle trends that may have a much
shorter investment window. For instance, Club Mediterranee (France) is
profiting from the booming economy and an aging population with travel
interests; further, the company is restructuring its operations. We also
consider traditional value stocks in economically sensitive or cyclical
industries, such as paper and pulp producer Kymmene (Finland). We buy
these stocks early in their recovery cycle, when their prices are
bottoming, and sell when we think prices are peaking. If our timing is off
or some unforeseen event depresses prices temporarily, the Fund's limited
exposure minimizes the impact on the portfolio.
Q: Did the weaker euro hurt the Fund's European stocks?
A: Yes. Currency risks, along with political change and economic fluctuations,
will influence international stock returns. Investments in European Union
(EU) member nations performed well, given positive gains in gross national
products. However, the euro's weak performance diminished these gains when
returns were translated into U.S. dollars. To illustrate, the MSCI Euro
Index posted a 27.9% increase in euro terms, but only an 11.3% increase in
U.S. dollar terms.
Q: Is the Fund capitalizing on corporate restructuring and deregulation
worldwide?
A: Absolutely. Deregulation has unleashed a wave of mergers and acquisitions
as corporations consolidate to maintain global competitiveness. This
development plays well into our strategy of searching for undervalued
companies. We also think lower-profile
7
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 11/30/99 (continued)
- --------------------------------------------------------------------------------
banks in the United Kingdom offer compelling value and represent
attractive take-over candidates, especially Barclays.
Today, companies are building shareholder value by closing inefficient
factories, and selling non-core businesses. This trend is clearly evident
in the banking and telecommunications industries across Europe, and to a
lesser degree, in Japan and the emerging markets. Asian companies are
becoming more efficient, enabling them to prosper even in slow-growth
economies. In Latin America, previously state-owned businesses are being
privatized and re-emerging as world-class companies.
Q: Why do technology and telecommunication stocks represent a third of the
Fund's assets?
A: While these sectors are susceptible to sharp swings in prices, we believe
their significant influence on global economic growth is undeniable.
Technology and telecommunication stocks were among the best performers for
the year, and your Fund had its fair share of winners. The sectors are
expensive, however, given their wide appeal. In-depth research is
especially critical to identify the best values. Fund holding Matsushita
Communication Industrial is the leading provider of well constructed,
sleek cellular phones in Japan and manufacturer of Panasonic products for
export to the United States.
Q: What's in store for 2000?
A: Your Fund is well positioned to participate in the dynamic growth
opportunities in international markets. As we enter 2000, inflation is
less of a threat than ever before - thanks in no small part to technology.
Many foreign businesses are turning to U.S. companies to emulate their
successful transition to an era of long-term growth. And, people all over
the world are beginning to adopt an equity culture similar to that here in
the United States. Given the recent progress of international markets,
it's not hard to imagine that the economic prosperity in the United States
could be repeated abroad.
8
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
CONVERTIBLE CORPORATE BOND - 0.5%
$1,000,000 Finlayson Global Corp., Ltd. 0.00%, 2/19/04 (144A)* $ 2,019,500
-----------
TOTAL CONVERTIBLE CORPORATE BOND
(Cost $1,036,522) $ 2,019,500
-----------
Shares
PREFERRED STOCKS - 2.3%
361,173 News Corp. Ltd. $ 2,809,214
6,000,000 Petrobras Brasileiro SA 1,212,799
24,000 Telecomunicacoes Brasileiras (A.D.R.) 2,178,000
40,000 Tele Norte Leste Participacoes (A.D.R.) 712,500
77,100 Tele Sudeste Celular Participacoes (A.D.R.) 1,585,369
-----------
TOTAL PREFERRED STOCKS $ 8,497,882
-----------
(Cost $7,803,566) $ 8,497,882
-----------
COMMON STOCKS - 97.2%
Basic Materials - 4.8%
Chemicals (Diversified) - 2.2%
100,000 Hoechst AG* $ 4,927,895
700,000 WMC Ltd. 3,216,871
-----------
$ 8,144,766
-----------
Construction (Cement & Aggregates) - 1.4%
380,003 Cemex, SA (CPO) $ 1,859,477
2,740 Holderbank Financiere Glarus AG (Bearer Shares) 3,434,694
-----------
$ 5,294,171
-----------
Paper & Forest Products - 1.2%
140,000 Kymmene OY $ 4,698,129
-----------
Total Basic Materials $18,137,066
-----------
Capital Goods - 7.1%
Aerospace/Defense - 1.4%
500,000 British Aerospace Plc $ 2,870,818
80,000 Thomson CSF 2,322,661
-----------
$ 5,193,479
-----------
Electrical Equipment - 0.5%
20,000 ABB Ltd.* $ 1,978,112
-----------
Machinery (Diversified) - 0.5%
400,000 Invensys Plc $ 1,818,185
-----------
Manufacturing (Diversified) - 2.3%
40,000 Mannesman AG $ 8,424,787
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Office Equipment & Supplies - 1.7%
140,000 Canon, Inc. $ 4,125,939
60,000 Societe BIC SA 2,358,134
-----------
$ 6,484,073
-----------
Trucks & Parts - 0.7%
40,000 Valeo $ 2,680,614
-----------
Total Capital Goods $26,579,250
-----------
Communication Services - 17.2%
Cellular/Wireless Telecommunications - 7.6%
116,400 Libertel NV* $ 2,375,366
340 NTT Mobile Communications Network, Inc. 11,957,365
185,000 Orange Plc* 5,606,070
45,000 SK Telecom Co., Ltd. (A.D.R.) 1,065,938
96,000 Sonera Group Plc 3,995,526
750,000 Vodafone Group Plc 3,534,695
-----------
$28,534,960
-----------
Telecommunications (Long Distance) - 1.6%
270,000 Cable & Wireless Optus Plc $ 3,429,910
40,000 Colt Telecom Group Plc* 1,511,964
27,900 KPNQwest NV* 1,044,517
-----------
$ 5,986,391
-----------
Telephone - 8.0%
28,000 BCE, Inc. $ 1,883,792
224,138 British Telecom Plc 4,497,066
8,500 Deltathree.com, Inc.* 249,156
20,000 Deutsche Telekom* 1,145,811
17,000 France Telecom* 1,971,864
126,000 Global Telesystems Group, Inc.* 4,024,125
13,000 Korea Telecom Corp. (A.D.R.)* 689,000
400 Mahanagar Telephone Nigam Ltd.* 1,750
90 Nippon Telegraph & Telephone Corp. 1,617,958
10,000 NTL Inc.* 911,875
83,000 Philippine Long Distance Telephone Co. (A.D.R.) 1,701,500
740,000 Telecom Italia SpA Di Risp 3,989,681
324,081 Telefonica SA* 6,753,933
60,000 Telekomunikasi Indonesia SA (A.D.R.) 506,250
-----------
$29,943,761
-----------
Total Communication Services $64,465,112
-----------
</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>
Consumer Cyclicals - 10.3%
Auto Parts & Equipment - 0.3%
40,000 Autoliv Inc. (Swedish Depository Receipt) $ 1,198,872
-----------
Automobiles - 1.9%
130,000 Bayerische Motoren Werke AG $ 3,457,286
80,000 Renault SA 3,517,449
-----------
$ 6,974,735
-----------
Building Materials - 0.4%
310,153 Williams Plc $ 1,605,180
-----------
Hardware & Tools - 0.8%
311,000 Makita Corp. $ 2,841,299
-----------
Household Furnishings & Appliances - 3.6%
220,000 Fisher & Paykel Industries Ltd. $ 690,436
25,700 Ryohin Keikaku Ltd. 6,071,860
37,000 Sony Corp. 6,869,689
-----------
$13,631,985
-----------
Leisure Time (Products) - 1.6%
500,000 Berjaya Sports Toto Bhd. $ 1,032,895
26,000 Club Mediterranee SA* 2,633,250
350,000 Tabcorp Holdings Ltd. 2,392,158
-----------
$ 6,058,303
-----------
Publishing (Newspapers) - 0.7%
400,000 Reed International Plc $ 2,505,586
-----------
Services (Commercial & Consumer) - 1.0%
5,900 Ebookers.com Plc (A.D.R.)* $ 135,700
45,818 Vivendi 3,670,759
-----------
$ 3,806,459
-----------
Total Consumer Cyclicals $38,622,419
-----------
Consumer Staples - 7.4%
Beverages (Non-Alcoholic) - 1.0%
365,000 Cadbury Schweppes Plc $ 2,302,356
34,000 Coca-Cola West Japan Co. Ltd. 1,369,419
-----------
$ 3,671,775
-----------
Broadcasting (Cable/Television/Radio) - 2.2%
35,000 Grupo Televisa, SA (A.D.R.)* $ 1,708,437
90,000 Reuters Group Plc 1,005,504
57,000 United Pan-Europe Communications NV* 5,600,568
-----------
$ 8,314,509
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Entertainment - 1.2%
47,000 Oriental Land Co., Ltd. $ 4,455,523
-----------
Foods - 1.2%
7,500 Groupe Danone $ 1,740,635
1,365,625 JG Summit Holdings, Inc.+* 98,925
1,000 Nestle SA 1,800,113
150,000 Tate & Lyle Plc 1,013,758
-----------
$ 4,653,431
-----------
Household Products (Non-Durables) - 1.3%
160,000 Kao Corp. $ 4,762,513
-----------
Retail Stores (Drug Stores) - 0.5%
175,000 Boots Company Plc $ 1,745,816
-----------
Total Consumer Staples $27,603,567
-----------
Energy - 4.2%
Oil (International Integrated) - 1.5%
700,000 Fortum Oyj $ 3,181,465
300,000 Shell Transport & Trading Co. 2,311,008
-----------
$ 5,492,473
-----------
Oil & Gas (Refining & Marketing) - 2.7%
400,000 ENI SpA $ 2,192,863
105,000 Repsol SA (L Shares) 2,296,157
43,833 Total Fina SA 5,835,212
-----------
$10,324,232
-----------
Total Energy $15,816,705
-----------
Financial - 16.6%
Banks (Major Regional) - 4.9%
96,000 Banca Popolare di Brescia $ 4,837,198
365,000 Banca Popolare di Milano 2,078,232
318,680 Banco Santander Central Hispano, SA 3,503,743
29,000 Deutsche Pfanbriefbank AG 2,191,563
179,102 Development Bank of Singapore Ltd. 2,323,370
60,000 Housing & Commercial Bank, Korea 1,682,122
123,000 Svenska Handelbanken 1,677,010
-----------
$18,293,238
-----------
Banks (Money Center) - 2.5%
70,000 Allied Irish Banks Plc $ 902,238
97,000 Barclays Plc 2,800,164
</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>
Banks (Money Center) - (continued)
190,000 Lloyds TSB Group Plc $ 2,436,368
180,000 Royal Bank of Scotland Group 3,467,948
-----------
$ 9,606,718
-----------
Banks (Regional) - 0.7%
226,000 Halifax Plc $ 2,584,406
-----------
Financial (Diversified) - 2.9%
556,000 Canary Wharf Plc* $ 3,431,776
144,000 Cheung Kong Holdings Ltd. 1,617,717
70,000 Fortis NV 2,400,560
61,000 Nichiei Co., Ltd. 1,504,101
360,000 Swire Pacific Ltd. 2,067,341
-----------
$11,021,495
-----------
Insurance (Life/Health) - 1.4%
60,600 Manulife Financial Corp.* $ 778,349
180,000 Prudential Corp. Plc 2,965,555
12,000 Union des Assurance Federal 1,451,159
-----------
$ 5,195,063
-----------
Insurance (Multi-Line) - 2.9%
4,500 Allianz AG $ 1,311,712
240,000 Allied Zurich Plc 2,909,096
27,000 Axa 3,643,317
5,000 Zurich Allied AG 2,864,960
-----------
$10,729,085
-----------
Investment Banking/Brokerage - 1.2%
350,000 AMMB Holdings $ 750,658
19,000 Consors Discount Broker AG* 1,225,424
170,000 Daiwa Securities Group, Inc. 2,434,894
-----------
$ 4,410,976
-----------
Investment Management - 0.1%
80,000 Asahi Bank Ltd. $ 561,914
-----------
Total Financial $62,402,895
-----------
Healthcare - 4.4%
Healthcare (Drugs/Major Pharmaceuticals) - 3.2%
112,000 Glaxo Wellcome Plc $ 3,352,860
1,250 Novartis AG 1,949,022
40,000 Rhone-Poulenc SA 2,479,064
350 Roche Holdings AG 4,226,681
-----------
$12,007,627
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare (Medical Products/Supplies) - 1.2%
145,000 Terumo Corp. $ 4,415,738
-----------
Total Healthcare $16,423,365
-----------
Technology - 19.5%
Communications Equipment - 4.7%
53,107 ECI Telecommunications Ltd. $ 1,330,994
18,000 Gilat Satellite Networks Ltd.* 1,384,875
35,000 Matsushita Communication Industrial Ltd. 6,739,034
56,000 Nokia AB 7,985,408
-----------
$17,440,311
-----------
Computers (Hardware) - 0.3%
400,000 Compal Electronics Corp. $ 1,275,857
-----------
Computers (Networking) - 1.0%
38,000 Equant NV* $ 3,676,271
-----------
Computers (Peripherals) - 0.1%
20,049 Korea Data System $ 390,864
-----------
Computers (Software & Services) - 3.5%
18,000 Check Point Software Technologies Ltd.* $ 2,549,250
7,500 NIIT Ltd. 406,059
15,500 NIIT Ltd. (New Shares)* 838,296
100 Satyam Computer Services (Bonus Shares) 4,415
13,000 Softbank Corp. 9,412,054
-----------
$13,210,074
-----------
Electronics (Componet Distributors) - 3.7%
36,800 Philips Electronics NV $ 4,481,745
61,000 Siemens AG 6,141,125
463,000 Toshiba Corp. 3,415,816
-----------
$14,038,686
-----------
Electronics (Instrumentation) - 0.5%
500,000 Elec & Eltek International Co., Ltd. $ 1,870,000
-----------
Electronics (Semiconductors) - 4.5%
97,000 Fujitsu Ltd. $ 3,449,482
24,000 Rohm Co., Ltd. 6,526,057
315,000 Taiwan Semiconductor Manufacturing Co.* 1,477,262
52,000 Tokyo Electron Ltd. 5,414,804
-----------
$16,867,605
-----------
</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>
Services (Computer Systems) - 0.6%
37,000 Getronics NV $ 2,265,169
------------
Services (Data Processing) - 0.6%
200,000 Merkantildata ASA $ 2,059,656
------------
Total Technology $ 73,094,493
------------
Transportation - 2.2%
Railroads - 0.9%
1,000,000 Malaysia International Shipping Bhd. $ 1,486,842
125,000 Railtrack Group Plc 1,923,847
------------
$ 3,410,689
------------
Shipping - 1.3%
102,000 Brambles Industries Ltd. $ 2,801,168
140,000 Peninsular & Orient Steam Navigation Co. 2,054,230
------------
$ 4,855,398
------------
Total Transportation $ 8,266,087
------------
Utilities - 3.5%
Electric Companies - 2.4%
358,333 British Energy Plc $ 2,040,272
400,000 British Energy Plc (Deferred Shares)* 1
80,000 Endesa SA 1,588,213
391,400 Enel SpA* 1,731,562
402,000 Scottish Power Plc 3,545,556
------------
$ 8,905,604
------------
Power Producers (Independent) - 1.1%
111,500 Thus Plc (144A)* $ 697,098
73,000 Veba AG 3,585,593
------------
$ 4,282,691
------------
Total Utilities $ 13,188,295
------------
TOTAL COMMON STOCKS
(Cost $283,372,630) $364,599,254
------------
RIGHTS - 0.0%
400 Compal Electronics Corp., 1/4/00* $ 265
------------
TOTAL RIGHTS
(Cost $383) $ 265
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $292,213,101) (a)(b)(c) $375,116,901
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 11/30/99 (continued)
- --------------------------------------------------------------------------------
* Non-income producing security.
+ Security is restricted for resale until receipt of shares in six month
intervals through January 2000.
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
November 30, 1999, the value of these securities amounted to $2,716,598
or 0.7% of total net assets.
(a) Distribution of investments by country of issue, as a percentage of total
equity holdings, is as follows:
<TABLE>
<S> <C>
Japan 23.4%
United Kingdom 18.7
France 10.1
Germany 8.6
Finland 5.3
Netherlands 4.8
Switzerland 4.3
Italy 4.0
Spain 3.8
Australia 3.0
Singapore 1.7
Brazil 1.5
Israel 1.4
United States 1.4
South Korea 1.0
Hong Kong 1.0
Mexico 1.0
Others (Individually less than 1%) 5.0
-----
100.0%
-----
</TABLE>
(b) At November 30, 1999, the net unrealized gain on investments based on
cost for federal income tax purposes of $293,487,424 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $102,361,746
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (20,732,269)
------------
Net unrealized gain $81,629,477
------------
</TABLE>
(c) At November 30, 1999, the Fund had a net capital loss carryforward of
$85,218,392 which will expire between 2006 and 2007 if not utilized.
Purchase and sales of securities (excluding temporary cash investments) for the
year ended November 30, 1999, aggregated $304,055,731 and $383,214,311,
respectively.
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 11/30/99
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $292,213,101) $375,116,901
Foreign currencies, at value 351,001
Receivables -
Investment securities sold 582,725
Fund shares sold 635,378
Dividends, interest and foreign taxes withheld 847,562
Forward foreign currency settlement hedge contracts - net 11,337
Other 10,256
------------
Total assets $377,555,160
------------
LIABILITIES:
Payables -
Investment securities purchased $ 931,545
Fund shares repurchased 2,077,082
Forward foreign currency portfolio hedge contracts, open - net 7,382,223
Due to bank 524,135
Due to affiliates 604,591
Accrued expenses 401,341
Reserve for capital gains taxes 67,445
Line of credit 1,291,220
Other 7,763
------------
Total liabilities $ 13,287,345
------------
NET ASSETS:
Paid-in capital $368,544,953
Accumulated undistributed net investment income 7,054,898
Accumulated net realized loss on investments and
foreign currency transactions (86,766,718)
Net unrealized gain on investments (including reserve for capital gains
taxes of $67,445) 82,836,355
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (7,401,673)
------------
Total net assets $364,267,815
------------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $289,291,136/13,682,977 shares) $ 21.14
------------
Class B (based on $69,000,884/3,355,713 shares) $ 20.56
------------
Class C (based on $5,975,795/292,502 shares) $ 20.43
------------
MAXIMUM OFFERING PRICE:
Class A $ 22.43
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 11/30/99
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $472,474) $ 5,143,220
Interest (net of foreign taxes withheld of $591) 447,681
------------
Total investment income $ 5,590,901
------------
EXPENSES:
Management fees $ 3,388,179
Transfer agent fees
Class A 1,098,857
Class B 256,140
Class C 29,425
Distribution fees
Class A 704,977
Class B 551,027
Class C 68,185
Administrative fees 83,583
Custodian fees 409,449
Registration fees 109,259
Professional fees 105,342
Printing 131,593
Fees and expenses of nonaffiliated trustees 29,016
Miscellaneous 86,705
------------
Total expenses $ 7,051,737
Less fees paid indirectly (35,801)
------------
Net expenses $ 7,015,936
------------
Net investment loss $ (1,425,035)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments $(25,661,678)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (307,327) $(25,969,005)
------------ ------------
Change in net unrealized loss from:
Investments $113,804,199
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (6,268,680) $107,535,519
------------ ------------
Net gain on investments and foreign currency
transactions $ 81,566,514
------------
Net increase in net assets resulting from operations $ 80,141,479
------------
</TABLE>
18 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 11/30/99 and 11/30/98
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/99 11/30/98
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (1,425,035) $ 2,054,138
Net realized loss on investments and foreign currency
transactions (25,969,005) (47,883,839)
Change in net unrealized loss on investments and foreign
currency transactions 107,535,519 6,807,286
------------- -------------
Net increase (decrease) in net assets resulting from
operations $ 80,141,479 $ (39,022,415)
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.13 and $1.15 per share, respectively) $ (2,399,549) $ (19,268,038)
Class B ($0.01 and $1.00 per share, respectively) (23,042) (3,505,142)
Class C ($0.01 and $1.03 per share, respectively) (4,556) (357,766)
Net realized gain:
Class A ($0.00 and $3.45 per share, respectively) - (57,897,428)
Class B ($0.00 and $3.45 per share, respectively) - (12,190,151)
Class C ($0.00 and $3.45 per share, respectively) - (1,209,372)
Tax return of capital:
Class A ($0.07 and $0.00 per share, respectively) (1,204,656) -
Class B ($0.00 and $0.00 per share, respectively) (11,568) -
Class C ($0.00 and $0.00 per share, respectively) (2,288) -
------------- -------------
Total distributions to shareholders $ (3,645,659) $ (94,427,897)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $732,186,890 $ 354,096,823
Reinvestment of distributions 3,122,489 81,627,184
Cost of shares repurchased (826,468,074) (409,656,326)
------------- -------------
Net increase (decrease) in net assets resulting from
fund share transactions $(91,158,695) $ 26,067,681
------------- -------------
Net decrease in net assets $(14,662,875) $(107,382,631)
NET ASSETS:
Beginning of year 378,930,690 486,313,321
------------- -------------
End of year (including accumulated undistributed net
investment income of $7,054,898 and $1,728,003,
respectively) $364,267,815 $ 378,930,690
------------- -------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer International Growth Fund
<TABLE>
<CAPTION>
CLASS A '99 Shares '99 Amount '98 Shares '98 Amount
<S> <C> <C> <C> <C>
Shares sold 32,091,205 $ 570,168,660 12,785,423 $ 236,139,826
Reinvestment of distributions 183,719 3,090,161 3,705,396 68,196,730
Less shares repurchased (36,934,109) (660,076,431) (14,870,731) (276,970,065)
----------- ------------- ----------- -------------
Net increase (decrease) (4,659,185) $ (86,817,610) 1,620,088 $ 27,366,491
----------- ------------- ----------- -------------
CLASS B
Shares sold 1,569,989 $ 28,634,272 1,155,440 $ 21,251,455
Reinvestment of distributions 1,713 28,243 695,509 12,514,722
Less shares repurchased (1,735,677) (30,479,670) (1,858,942) (33,266,363)
----------- ------------- ----------- -------------
Net increase (decrease) (163,975) $ (1,817,155) (7,993) $ 499,814
----------- ------------- ----------- -------------
CLASS C
Shares sold 7,828,598 $ 133,383,958 5,432,534 $ 96,705,542
Reinvestment of distributions 249 4,085 51,487 915,732
Less shares repurchased (7,901,215) (135,911,973) (5,525,362) (99,419,898)
----------- ------------- ----------- -------------
Net decrease (72,368) $ (2,523,930) (41,341) $ (1,798,624)
----------- ------------- ----------- -------------
</TABLE>
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 11/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended Year Ended
11/30/99 11/30/98 11/30/97 11/30/96 11/30/95
<S> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year $ 17.14 $ 23.66 $ 23.39 $ 21.21 $ 21.55
-------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.09) $ 0.14 $ 0.13 $ 0.10 $ (0.04)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 4.29 (2.06) 1.87 2.32 0.80
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations $ 4.20 $ (1.92) $ 2.00 $ 2.42 $ 0.76
Distributions to shareholders:
Net investment income (0.13) (1.15) (0.26) - -
Net realized gain - (3.45) (1.47) (0.24) (1.10)
Tax return of capital (0.07) - - - -
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ 4.00 $ (6.52) $ 0.27 $ 2.18 $ (0.34)
-------- -------- -------- -------- --------
Net asset value, end of year $ 21.14 $ 17.14 $ 23.66 $ 23.39 $ 21.21
-------- -------- -------- -------- --------
Total return* 24.77% (9.35)% 9.28% 11.40% 3.81%
Ratio of net expenses to average net assets+ 1.89% 1.73% 1.69% 1.77% 2.00%
Ratio of net investment income (loss) to average net assets+ (0.27)% 0.60% 0.51% 0.26% (0.23)%
Portfolio turnover rate 90% 123% 154% 173% 219%
Net assets, end of year (in thousands) $289,291 $314,381 $395,572 $378,956 $308,488
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.88% 1.72% 1.67% 1.76% 1.98%
Net investment income (loss) (0.26)% 0.61% 0.53% 0.27% (0.21)%
</TABLE>
* 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.
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 11/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended Year Ended
11/30/99 11/30/98(a) 11/30/97 11/30/96 11/30/95
<S> <C> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of year $ 16.63 $ 23.09 $ 22.89 $ 20.94 $ 21.45
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.19) $ (0.04) $ (0.06) $ 0.15 $ (0.17)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 4.13 (1.97) 1.85 2.04 0.76
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 3.94 $ (2.01) $ 1.79 $ 2.19 $ 0.59
Distributions to shareholders:
Net investment income (0.01) (1.00) (0.12) - -
Net realized gain - (3.45) (1.47) (0.24) (1.10)
Tax return of capital (0.00)(b) - - - -
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 3.93 $ (6.46) $ 0.20 $ 1.95 $ (0.51)
------- ------- ------- ------- -------
Net asset value, end of year $ 20.56 $ 16.63 $ 23.09 $ 22.89 $ 20.94
------- ------- ------- ------- -------
Total return* 23.71% (10.09)% 8.44% 10.45% 3.00%
Ratio of net expenses to average net assets+ 2.72% 2.57% 2.49% 2.60% 2.80%
Ratio of net investment loss to average net assets+ (1.14)% (0.24)% (0.23)% (0.51)% (1.04)%
Portfolio turnover rate 90% 123% 154% 173% 219%
Net assets, end of year (in thousands) $69,001 $58,519 $81,438 $69,056 $34,385
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.71% 2.56% 2.47% 2.58% 2.77%
Net investment loss (1.13)% (0.23)% (0.21)% (0.49)% (1.01)%
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
(b) Amount rounds to less than one cent per share.
* 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.
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 11/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended 1/31/96 to
11/30/99(a) 11/30/98(a) 11/30/97(a) 11/30/96
<S> <C> <C> <C> <C>
CLASS C
Net asset value, beginning of period $ 16.53 $ 22.90 $ 22.84 $ 22.46
------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.17) $ (0.02) $ - $ 0.02
Net realized and unrealized gain (loss) on investments and foreign
currency transactions 4.08 (1.87) 1.77 0.60
------- ------- ------- -------
Net increase (decrease) from investment operations $ 3.91 $ (1.89) $ 1.77 $ 0.62
Distributions to shareholders:
Net investment income (0.01) (1.03) (0.24) -
Net realized gain - (3.45) (1.47) (0.24)
Tax return of capital (0.00)(b) - - -
------- ------- ------- -------
Net increase (decrease) in net asset value $ 3.90 $ (6.37) $ 0.06 $ 0.38
------- ------- ------- -------
Net asset value, end of period $ 20.43 $ 16.53 $ 22.90 $ 22.84
------- ------- ------- -------
Total return* 23.69% (9.55)% 8.45% 2.75%
Ratio of net expenses to average net assets+ 2.67% 2.38% 2.50% 2.36%**
Ratio of net investment income (loss) to average net assets+ (1.00)% (0.13)% (0.03)% 0.13%**
Portfolio turnover rate 90% 123% 154% 173%
Net assets, end of period (in thousands) $ 5,976 $ 6,031 $ 9,303 $ 6,078
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.64% 2.35% 2.47% 2.31%**
Net investment income (loss) (0.97)% (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.
(b) Amount rounds to less than one cent per share.
* 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. 23
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/99
- --------------------------------------------------------------------------------
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 has 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 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 have passed are recorded as soon as the Fund is
informed of the ex-dividend
24
<PAGE>
Pioneer International Growth Fund
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.
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
25
<PAGE>
Pioneer International Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/99 (continued)
- --------------------------------------------------------------------------------
Fund's financial statements. The Fund records realized gains and losses at
the time a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar (see Note 6).
D. Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or repatriation of foreign currencies in certain countries. During the
year ended November 30, 1999, the Fund paid $57,184 in such taxes.
In determining the daily net asset value, the Fund estimates the reserve for
such taxes, if any, associated with investments in certain countries. The
estimated reserve for capital gains is based on the net unrealized
appreciation on certain portfolio securities, the holding period of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. As of November 30, 1999, the Fund had a reserve of
$67,445 related to capital gains. The estimated reserve for repatriation of
foreign currencies is based on principal balances and/or unrealized
appreciation of applicable securities, the holding period of such
investments and the related tax rates and other such factors. As of November
30, 1999, the Fund had no reserve related to taxes on the repatriation of
foreign currencies.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
At November 30, 1999, the Fund reclassified $2,838,899 and $6,340,178 from
accumulated net realized loss on investments and foreign currency
transactions and paid-in capital, respectively, to accumulated net
investment loss. The reclassification has no impact on the net
26
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Pioneer International Growth Fund
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 $98,218 in
underwriting commissions on the sale of fund shares during the year ended
November 30, 1999.
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.
2. Management Agreement
Pioneer Investment Management, Inc. (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 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, 1999, $316,132 was payable to
PIM related to management fees, administrative fees and certain other expenses.
27
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Pioneer International Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 11/30/99 (continued)
- --------------------------------------------------------------------------------
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 $166,571 in transfer agent fees payable to PSC at November 30,
1999.
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 average daily net assets attributable to Class A
shares 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 $121,888
in distribution fees payable to PFD at November 30, 1999.
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 4.00%, 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
CDSCs are paid to PFD. For the year ended November 30, 1999, CDSCs in the
amount of $261,036 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, 1999, the Fund's expenses were reduced by $35,801 under such
arrangements.
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Pioneer International Growth Fund
6. Forward Foreign Currency Contracts
At November 30, 1999, 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, 1999 were as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Contracts In Exchange Settlement Net Unrealized
Currency to Deliver For Date Value Loss
- ---------- --------------- ------------- ------------ -------------- --------------
<S> <C> <C> <C> <C> <C>
JPY 5,519,990,000 $46,978,638 12/17/99 $54,360,861 $7,382,223
- ----------------------------------------------------------------------------------------------
</TABLE>
At November 30, 1999, the gross forward currency settlement contracts
receivable and payable were $317,224 and $305,887, respectively, resulting in a
net receivable of $11,337.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participates 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.
The average daily amount of borrowings outstanding during the year ended
November 30, 1999 was $1,242,485. The average daily shares outstanding during
the year were 19,164,855 resulting in an average borrowing per share of $0.06.
The related weighted average annualized interest rate for the year was 5.31%,
and the total interest expense on such borrowings was $68,885.
29
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Pioneer International Growth Fund
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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 (the Fund) as of November 30,
1999, 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, 1999 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, 1999, 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 7, 2000
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Pioneer International Growth Fund
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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 Eric W. Reckard, Treasurer
Marguerite A. Piret Joseph P. Barri, Secretary
David D. Tripple
Stephen K. West
John Winthrop
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
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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 70-1/2 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 $10,000 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.
33
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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.
34
<PAGE>
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a
period of time. Just invest a lump sum in one fund, and select the other
Pioneer funds you wish to invest in. You choose the amounts and dates for
Pioneer to sell shares of your original fund and use the proceeds to buy shares
of the other funds you have chosen. Over time, your investment will be shifted
out of the original fund. (Automatic Exchange is available for originating
accounts with a balance of $5,000 or more.)
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 trans-fer
(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 for accounts
with a value of $10,000 or more.)
35
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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 Income Funds
United States Taxable
Pioneer Capital Growth Fund Pioneer America Income Trust
Pioneer Growth Shares Pioneer Bond Fund
Pioneer Micro-Cap Fund Pioneer Limited Maturity Bond Fund
Pioneer Mid-Cap Fund Pioneer Strategic Income Fund
Pioneer Small Company Fund
Pioneer Tax-Managed 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 Indo-Asia Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Fund
Pioneer II
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Real Estate Shares
*An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1 per share, it is possible to
lose money by investing in the Fund.
36
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This page for your notes.
37
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- --------------------------------------------------------------------------------
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.
[Graphic: Pioneer Logo]
Pioneer Investment Management, Inc.
60 State Street 7247-00-0100
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [Recycle logo] Printed on Recycled Paper
