PIONEER EMERGING MARKETS FUND
60 STATE STREET
BOSTON, MASSACHUSETTS 02109
OFFICERS TRUSTEES
JOHN F. COGAN, JR. JOHN F. COGAN, JR.
Chairman and President RICHARD H. EGDAHL, M.D.
DAVID D. TRIPPLE MARGARET B.W. GRAHAM
Executive Vice President JOHN W. KENDRICK
NORMAN KURLAND MARGUERITE A. PIRET
Senior Vice President DAVID D. TRIPPLE
WILLIAM H. KEOUGH STEPHEN K. WEST
Treasurer JOHN WINTHROP
JOSEPH P. BARRI
Secretary
INVESTMENT ADVISER LEGAL COUNSEL
PIONEERING MANAGEMENT HALE AND DORR
CORPORATION
SHAREHOLDER
PRINCIPAL UNDERWRITER SERVICES AND
PIONEER FUNDS TRANSFER AGENT
DISTRIBUTOR, INC. PIONEERING SERVICES
CORPORATION
CUSTODIAN 60 State Street
BROWN BROTHERS Boston, Massachusetts
HARRIMAN & CO. 02109
INDEPENDENT PUBLIC
ACCOUNTANTS
ARTHUR ANDERSEN LLP
Please call Pioneer for information on:
Existing accounts, new accounts, prospectuses,
applications, and services forms 1-800-225-6292
Fund yields and prices 1-800-225-4321
Toll-free fax 1-800-225-4240
Retirement plans 1-800-622-0176
Telecommunications Device for the
Deaf (TDD) 1-800-225-1997
When distributed to persons who are not shareowners of
the Fund, this report must be accompanied by an official
prospectus, which discusses the objectives, policies, sales
charges, and other information about the Funds.
0795-2592
(C)Pioneer Funds Distributor, Inc.
Pioneer
Emerging
Markets
Fund
SEMIANNUAL REPORT
MAY 31, 1995
PIONEER EMERGING MARKETS FUND
DEAR FELLOW SHAREOWNERS,
Pioneer Emerging Markets Fund reached the half-way mark of its second fis-
cal year on May 31, 1995. The six-month period put investors in overseas
markets to the test -- the yen rose to historic highs versus the U.S. dol-
lar; Japan experienced a serious earthquake, terrorist attacks and sharp-
ening economic and political challenges; and Mexico, considered relatively
"mature" among emerging markets, devalued its peso. Financial markets
around the world, particularly emerging markets, suffered early setbacks
as these events occurred, but went on to gain strength as the Fund's semi-
annual period came to a close. Helped in part by declining U.S. interest
rates, developing nations began to attract renewed attention from inves-
tors in search of fast-paced growth and opportunity.
HOW YOUR FUND PERFORMED
The Fund's performance reflects these overall trends. We report the fol-
lowing results for the semiannual period from November 30, 1994, through
May 31, 1995.
* CLASS A SHARES -- Shareowners received $0.055 per share in income divi-
dends, along with a $0.082 per share capital gains distribution made in
December. Net asset value closed the period at $11.59 per share, versus
$12.24 on November 30, in part reflecting the payment of the distribu-
tions. As a result, the Fund's six-month total return was -4.21% at net
asset value. For shareowners who paid the maximum public offering price,
total return was -9.74% for the semiannual period.
* CLASS B SHARES -- Shareowners received income dividends of $0.031 per
share, in addition to a $0.082 per share capital gains distribution made
in December. Net asset value closed the period at $11.53 per share, ver-
sus $12.19 on November 30, in part reflecting the payment of the distri-
butions. As a result, the Fund's six-month total return was -4.51%, as-
suming shares were held throughout the period. For shareowners who re-
deemed at the end of the six months, total return was -8.29%.
The Fund gained positive momentum toward the close of the period, however.
Class A shares generated a total return of 11.98% for the three months
ended May 31, at net asset value, while Class B shares posted a 11.83%
total return. By way of comparison, the unmanaged Morgan Stanley Capital
International (MSCI) Emerging Markets Index returned -11.20% for the semi-
annual period, and 7.12% over the last three months. Total return reflects
the change in share price, assuming the reinvestment of all distributions
at net asset value.
FUND'S OBJECTIVE IS LONG-TERM GROWTH
Pioneer Emerging Markets Fund's goal is to provide shareowners with strong
long-term capital growth. To help achieve this objective, the Fund takes
an aggressive approach, investing in undervalued companies located or
doing business in the world's developing nations. Pioneer's analysts re-
search and evaluate companies on a case-by- case basis, with the important
addition of information about country and regional characteristics, trends
and risks. The result is a portfolio diversified across a wide variety of
nations where we see opportunity and potential long-term reward. The ac-
companying chart shows where the Fund's assets were invested on May 31.
GEOGRAPHICAL DISTRIBUTION
(PERCENTAGE OF EQUITY HOLDINGS AS OF MAY 31, 1995)
Belize 1%
Brazil 8%
Hong Kong 4%
India 1%
Indonesia 7%
Israel 3%
Korea 12%
Malaysia 12%
Mexico 16%
Panama 1%
Philippines 4%
Poland 10%
Singapore 4%
South Africa 3%
Sweden 2%
Switzerland 1%
Taiwan 2%
Thailand 7%
LOOKING FOR FAVORABLE TRENDS, CHARACTERISTICS
Over the past six months, your Fund's investments were concentrated in the
developing markets of Asia and Europe, with Latin American countries play-
ing a reduced role until the second half of the period. The strengthening
Japanese yen, which gained 20% versus the U.S. dollar, was one factor that
led us to Asian economies outside Japan. As the yen increased in value,
Japanese goods and labor became more expensive to individuals and institu-
tions in the many Asian emerging markets that operate in dollars or in
currencies linked to the value of the dollar.
We focused on Asian countries -- specifically Malaysia and Korea -- we be-
lieve stand to benefit as producers competing against higher-cost Japanese
companies. Malaysia, already exhibiting strong economic growth, is now
benefiting from Japanese outsourcing. Investments in Malaysia include Land
and General Holdings, Renong and United Engineers -- diversified companies
involved in property, transportation and communication systems develop-
ment.
In Korea, we have favored companies involved in electronics, technology
and finance. Investments include LG Electronics and Samsung Electronics,
both of which are positioned to benefit from increased outsourcing and ex-
ports, and Korea Mobile Telecom, the nation's leading cellular phone oper-
ator. In the finance sector, we have preferred stable, well-run banks, in-
cluding Hanil Bank and Shinhan Bank. Globally, we believe that many estab-
lished, well-capitalized banks are positioned to benefit from expanding
loan demand and healthy profit margins, and that their current stock
prices don't reflect their true value. As a result, on May 31, 26% of the
Fund's portfolio was invested in financial companies located in nine na-
tions.
The Fund broke new ground during the period when we introduced Polish com-
panies to the portfolio. By May 31, Poland accounted for 10% of equity
holdings, representing 12 companies. The Fund entered this market in
December, and we continued to add to investments through February. While
the Fund is an early investor in the still-volatile Polish stock market,
we find the values there compelling. The economy is experiencing tremen-
dous export-led growth, production and output are rising, and the nation
has become attractive as a low-cost labor provider to the rest of Europe.
We believe Poland's current interest rate environment, which is actually
providing negative inflation-adjusted returns on fixed- income invest-
ments, will lead an increasing number of Poles to reallocate their savings
to the stock market. Your Fund's Polish holdings include Debica, a low-
cost tire manufacturer, Jelfa, a general pharmaceutical manufacturer, and
Polifarb-Cieszyn, a paint manufacturer.
We minimized the Fund's participation in Latin American markets during the
first part of the period, and then substantially increased exposure to the
region in late February and early March. After the tremendous price appre-
ciation of stocks in Latin American markets during March, April and May,
we again reduced the allocation to the region. The remaining investments
are in Mexican, Brazilian and Argentine companies we believe will
strengthen their market position or profitability as a result of economic
volatility. In Mexico, holdings include Apasco, the region's second larg-
est cement producer, CIFRA, partner in a retailing joint-venture with Wal-
Mart, Grupo Financiero Banamex, a top bank, and Grupo Financiero Inbursa,
a financial company. Brazilian companies in the portfolio are Companhia
Vale Do Rio Doce, which exports iron ore and minerals to the United
States, Rhodia-Ster, a producer of resin used to manufacture plastic bot-
tles, and Usina Siderurgica Do Minas Gerais, a major steel producer. In
Argentina, we continue to like YPF, the giant oil company.
LOOKING AHEAD
So far in 1995, we have been encouraged by the persistent economic
strength of many emerging markets, as well as the renewed interest inves-
tors have shown. Many countries continue to pursue regulations and poli-
cies that encourage money to flow into these markets. Despite some short-
term obstacles and disappointments, we believe many developing economies
are on track to achieve sustained long-term growth and increased competi-
tiveness. In the long run, we believe emerging markets should provide con-
siderable rewards to investors who persevere through shorter-term periods
of volatility.
Please read on to the following pages, which provide the Fund's audited
portfolio and financial statements. If you have any questions about your
investment in Pioneer Emerging Markets Fund, please contact your invest-
ment representative, or call Pioneer at 1-800-225-6292. Thank you for your
continued support.
Respectfully,
John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President,
Pioneer Emerging Markets Fund
July 7, 1995
PIONEEER EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS
May 31, 1995
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES -- 100.0%
CONVERTIBLE CORPORATE BONDS -- 7.6%
$ 350,000 Banco De Galicia, 7.00%, 8/01/02 $ 246,750
500,000 Banco Nacional De Mexico, 7.00%, 12/15/99 144A 350,000
300,000 Cemex S. A., 4.25%, 11/01/97 228,000
1,150,000 Empresas ICA Sociedad, 5.00%, 3/15/04 511,750
120,000 United Micro Electronics, 1.25%, 6/08/04 204,600
TOTAL CONVERTIBLE CORPORATE BONDS (Cost $1,294,400) $1,541,100
Shares
PREFERRED STOCKS -- 7.6%
1,110,000 Brasmotor S. A. $ 241,224
15,000 Centrais Electricas Brasileiras (B Shares) (A. D. R.)* 210,000
2,470,000 Companhia Vale Do Rio Doce 373,320
4,000 LG Electronics 91,448
1,400 Samsung Electronics 115,763
277 Samsung Electronics (New Preferred 1)* 21,729
24,440 Shinwon* 477,158
TOTAL PREFERRED STOCKS (Cost $1,885,981) $1,530,642
COMMON STOCKS -- 84.8%
BASIC INDUSTRIES -- 9.1%
CHEMICALS -- 2.8%
14,800 Rhodia-Ster S. A. (G. D. R.) 144A $ 224,782
58,800 Polifarb-Cieszyn 256,582
35,000 Polifarb Wroclaw* 88,342
$ 569,706
IRON & STEEL -- 2.1%
33,000 Maruichi Malaysia Steel Tube $ 121,181
26,000 Usina Siderurgica Do Minas Gerais S. A. (A. D. R.) 289,250
$ 410,431
METALS & MINING -- 2.0%
6,800 Driefontein Consolidated Mines, Ltd. $ 93,309
10,200 Free State Consolidated Gold Mines, Ltd. 105,319
103,000 PT International Nickel Indonesia 208,174
$ 406,802
TIRE & RUBBER -- 0.7%
11,000 Debica $ 147,765
ELECTRICAL EQUIPMENT -- 1.5%
19,411 Yageo Corp. (G. D. R.)* $ 308,150
TOTAL BASIC INDUSTRIES $1,842,854
CAPITAL GOODS -- 6.4%
CONSTRUCTION BUILDING MATERIALS & ENGINEERING -- 5.8%
86,000 Apasco S. A. de CV* $ 297,854
6,000 Bufete Industrial S. A. (A. D. R.) 59,250
130 Holderbank Financiere Glaris AG 103,420
13,200 Mostostal-Export S. A.* 63,247
55,000 PT Indocement Tunggal Prakarsa 202,560
68,000 United Engineers, Ltd. 449,746
$1,176,077
MACHINERY -- 0.6%
13,000 Fabryka Kotlow Rafako S. A.* $ 122,353
TOTAL CAPITAL GOODS $1,298,430
CONSUMER DURABLES -- 2.5%
MOTOR VEHICLES -- 2.5%
7,000 Autoliv AB $ 340,623
50,000 Mirgor Sacifia (A. D. R.)* 153,150
TOTAL CONSUMER DURABLES $ 493,773
COMMON STOCKS (continued)
CONSUMER NON-DURABLES -- 9.1%
AGRICULTURE & FOOD MANUFACTURING -- 4.0%
24,100 Charoen Pokphand Feedmill Co., Ltd. $ 170,887
10,500 Siedleckie Zaklady Drobiarskie Drosed S. A. 105,561
75,000 Jugos Del Valle S. A. (Series B)* 181,707
68,000 Premier Group Holdings, Ltd. 87,766
126,000 Sokolowskie Zaklady Miesne* 123,979
248,400 Victorias Milling Co., Inc. 129,977
$ 799,877
TEXTILES/CLOTHES -- 2.2%
109,800 Asia Fiber Co., Ltd. $ 88,979
20,000 Garden Silk Mills, Ltd. (G.D.R.) 117,500
260,000 PT Indosepamas Anggun 230,631
$ 437,110
RETAIL FOOD -- 0.8%
175,000 Dairy Farm International Holdings, Ltd. $ 173,250
RETAIL NON-FOOD -- 1.1%
185,000 CIFRA S. A. de CV (Series B) $ 234,634
SOFT DRINKS -- 1.0%
220,000 Embotelladores Del Valle de Anahuac (B Shares)* $ 196,748
TOTAL CONSUMER NON-DURABLES $1,841,619
ENERGY -- 4.6%
OIL REFINING -- 2.8%
27,000 Engen, Ltd. $ 190,748
33,300 Yukong, Ltd. (G. D. R.) 366,300
$ 557,048
OIL & GAS EXTRACTION -- 1.8%
18,000 YPF S. A. (Class D) (A. D. R.) $ 364,500
TOTAL ENERGY $ 921,548
FINANCIAL -- 25.6%
COMMERCIAL BANKS -- 14.1%
32,000 Bangkok Bank Co., Ltd. $ 350,081
307,800 Bank Inicjatyw Gospodadarczych 223,855
5,100 Bank Slaski* 261,818
13,000 Daegu Bank 159,530
2,836 Daegu Bank (New Common 1)* 34,802
37,000 Development Bank of Singapore, Ltd. 432,950
165,000 Grupo Financiero Banamex (Class L) 246,829
21,500 Hanil Bank 245,114
8,200 Korea Exchange Bank 77,905
7,563 Korea Exchange Bank (New)* 65,566
90,000 PT Bank International Indonesia 250,618
13,790 Shinhan Bank 283,861
170,000 Siam City Bank, Ltd. 215,255
$ 2,848,184
FINANCE -- MISCELLANEOUS -- 5.3%
6,500 Banco Latinoamericano de Exportaciones $ 224,250
14,550 Bank Rozwoju Eksportu S. A. 201,056
100,000 Grupo Financiero Inbursa S. A. de CV (B Shares)* 186,992
40,000 Malayan Banking Bhd. 329,479
90,000 Peregrine Investment Holdings, Ltd. 114,604
$ 1,056,381
INVESTMENT -- 0.9%
35,000 Siam City Credit Finance & Securities Company, Ltd. $ 184,360
REAL ESTATE -- 5.3%
75,000 Bangkok Land Company, Ltd. $ 158,023
102,000 DBS Land, Ltd. 341,220
248,500 PT Jakarta International Hotel & Development 284,606
50,000 PT Kawasan Industries Jababeka* 103,301
460,000 Grupo Situr S. A. de CV* 184,748
$ 1,071,898
TOTAL FINANCIAL $ 5,160,823
SERVICES -- 1.4%
PHARMACEUTICALS -- 1.4%
22,000 Jelfa* $ 285,176
TOTAL SERVICES $ 285,176
TECHNOLOGY -- 4.7%
ELECTRONICS -- 1.2%
5,500 Loxley Co., Ltd. $ 117,220
21,700 Muramoto Electron Co. 119,579
$ 236,799
TELEPHONE NETWORKS -- 3.5%
42,000 E. C. I. Telecommunications, Ltd. $ 708,750
TOTAL TECHNOLOGY $ 945,549
TRANSPORTATION -- 1.1%
SHIPS & SHIPPING -- 1.1%
467,000 PT Berlian Laju Tankers $ 209,746
TOTAL TRANSPORTATION $ 209,746
UTILITIES -- 4.9%
TELECOMMUNICATIONS -- 4.9%
4,255,553 Champion Technology Holdings $ 363,097
610 Korea Mobile Telecom Corp. 432,719
250,000 Pilipino Telephone Corp.* 195,832
TOTAL UTILITIES $ 991,648
MISCELLANEOUS -- 15.4%
INDUSTRIAL MATERIALS -- 0.5%
2,000 Anglo American Industrial Corp., Ltd. $ 101,080
CONGLOMERATES & HOLDINGS -- 14.9%
24,000 AMMB Holdings Bhd. $ 306,756
13,000 Belize Holdings, Inc. 195,000
53,900 Benpres Holdings Corp. (G. D. R.)* 441,441
350,000 Grupo Sidek S. A. de C. V. (Series B)* 273,171
400,000 Itausa Investimentos Itau S. A. 220,629
39,375 Jardine Strategic Holdings, Ltd. 137,813
154,000 Land & General Holdings Bhd. 484,277
170,000 Renong Bhd. 314,547
9,000 Stalexport S. A.* 91,251
167,000 Technology Resources Industries Bhd.* 545,486
$ 3,010,371
TOTAL MISCELLANEOUS $ 3,111,451
TOTAL COMMON STOCKS (Cost $17,175,054) $17,102,617
WARRANTS -- 0.0%
4,375 Jardine Strategic Holdings, Ltd., 5/2/98 $ 2,209
TOTAL WARRANTS (Cost $0) $ 2,209
TOTAL INVESTMENT IN SECURITIES (Cost $20,355,435)(a) $20,176,568
<FN>
* Non-income producing security.
144A Security exempt from registration under rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At
May 31, 1995, the value of these securities amounted to $574,782 or
2.7% of total net assets.
(a) At May 31, 1995, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $20,463,509 was as
follows:
</FN>
</TABLE>
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all investments in which there is
an excess of value over tax cost $1,943,535
Aggregate gross unrealized depreciation for all investments in which there is
an excess of tax cost over value (2,230,476)
Net unrealized depreciation $ (286,941)
</TABLE>
Purchases and sales of securities (excluding temporary cash invest-
ments) for the six months ended May 31, 1995, aggregated $22,681,678
and $17,739,725, respectively.
The accompanying notes are an integral part of these financial statements.
PIONEER EMERGING MARKETS FUND
BALANCE SHEET
May 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $20,355,435; see Schedule of Investments
and Note 1) $ 20,176,568
Cash 355,948
Foreign currencies, at value (Note 1) 19,889
Receivables --
Investment securities sold 552,739
Trust shares sold 386,863
Dividends, interest and foreign taxes withheld (Note 1) 90,100
Due from Pioneering Management Corporation (Note 2) 127,328
Other 282
Total assets $ 21,709,717
LIABILITIES:
Payables --
Investment securities purchased $ 219,407
Forward foreign currency settlement contracts -- net (Notes 1 and 5) 765
Trust share repurchased 60,852
Accrued expenses (Notes 2, 3 and 4) 153,541
Total liabilities $ 434,565
NET ASSETS:
Paid-in capital $ 24,270,798
Accumulated undistributed net investment income (Note 1) 84,339
Accumulated net realized loss on investments and foreign currency transactions
(Notes 1 and 5) (2,899,341)
Net unrealized loss on investments (Note 1) (178,867)
Net unrealized loss on forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (Notes 1 and 5) (1,777)
Total net assets $21,275,152
NET ASSET VALUE PER SHARE:
Class A -- (based on $15,945,982 / 1,376,007 shares of beneficial interest
outstanding -- unlimited number of shares authorized) $ 11.59
Class B -- (based on $5,329,170 / 462,383 shares of beneficial interest outstanding
-- unlimited number of shares authorized) $ 11.53
MAXIMUM OFFERING PRICE:
Class A $ 12.30
</TABLE>
The accompanying notes are an integral part of these financial statements.
PIONEER EMERGING MARKETS FUND
STATEMENT OF OPERATIONS
For the Six Months Ended May 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME (NOTE 1):
Dividends (net of foreign taxes withheld of $16,131) $ 152,625
Interest 131,706
Total investment income $ 284,331
EXPENSES:
Management fees (Note 2) $ 118,085
Distribution fees (Note 4)
Class A 14,420
Class B 23,133
Transfer agent fees (Note 3)
Class A 24,715
Class B 5,768
Registration fees 9,100
Professional fees 44,878
Accounting (Note 2) 88,270
Custodian fees 111,670
Printing 4,987
Fees and expenses of nonaffiliated trustees 5,484
Miscellaneous 23,457
Total expenses $ 473,967
Less management fees waived and expenses assumed by Pioneering Management
Corporation (Note 2) (245,413)
Net expenses $ 228,554
Net investment income $ 55,777
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments (Note 1) $ (2,879,611)
Forward foreign currency contracts and other assets and liabilities denominated
in foreign currencies (Notes 1 and 5) (58,057)
$ (2,937,668)
Net unrealized gain (loss) from:
Increase in net unrealized gain on investments (Note 1) $ 2,093,270
Decrease in net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (Notes 1 and 5) (6,462)
$ 2,086,808
Net loss on investments and other foreign currency related transactions $ (850,860)
Net decrease in net assets resulting from operations $ (795,083)
</TABLE>
The accompanying notes are an integral part of these financial statements.
PIONEER EMERGING MARKETS FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1995 and Period Ended November 30, 1994*
<TABLE>
<CAPTION>
Six Months Ended Period Ended
May 31, 1995 November 30, 1994*
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 55,777 $ 115,129
Net realized gain (loss) on investments and foreign currency transactions (2,937,668) 180,913
Increase (decrease) in net unrealized gain (loss) on investments and foreign
currency transactions 2,086,808 (2,267,452)
Net decrease in net assets resulting from operations $ (795,083) $ (1,971,410)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment Income:
Class A ($0.06 and $0.00 per share, respectively) $ (74,851) --
Class B ($0.03 and $0.00 per share, respectively) (11,716) --
Net realized gain on investments:
Class A ($0.08 and $0.00 per share, respectively) (111,595) --
Class B ($0.08 and $0.00 per share, respectively) (30,991) --
Decrease in net assets resulting from distributions to shareholders $ (229,153) --
FROM TRUST SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 11,954,379 $ 30,183,625
Net asset value of shares issued to shareholders in reinvestment of dividends 196,290 --
Cost of shares repurchased (11,237,086) (7,826,410)
Net increase in net assets resulting from trust share transactions $ 913,583 $ 22,357,215
Net increase (decrease) in net assets $ (110,653) $ 20,385,805
NET ASSETS:
Beginning of period 21,385,805 1,000,000
End of period (including undistributed net investment income of $84,339 and
$115,129, respectively) $ 21,275,152 $ 21,385,805
<FN>
* The Fund commenced operations on June 23, 1994.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
PIONEER EMERGING MARKETS FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1995 and Period Ended November 30, 1994*
(continued)
<TABLE>
<CAPTION>
Six Months Ended Period Ended
May 31, 1995 November 30, 1994*
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
CLASS A
Shares sold 788,114 $ 8,677,900 1,871,054 $ 25,054,207
Shares issued to shareholders in reinvestment of
distributions 13,494 159,498 -- --
Less shares repurchased (820,187) (9,078,674) (536,468) (7,156,547)
Net increase (decrease) (18,579) $ (241,276) 1,334,586 $ 17,897,660
CLASS B
Shares sold 298,901 $ 3,276,479 385,239 $ 5,129,418
Shares issued to shareholders in reinvestment of
distributions 3,121 36,792 -- --
Less shares repurchased (193,837) (2,158,412) (51,041) (669,863)
Net increase 108,185 $ 1,154,859 334,198 $ 4,459,555
<FN>
* The Fund commenced operations on June 23, 1994.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
PIONEER EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
Selected Data for a Share Outstanding for the Periods Presented
<TABLE>
<CAPTION>
Six Months Ended Period Ended
May 31, 1995 November 30, 1994+#
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 12.24 $ 12.50
Increase (decrease) from investment operations:
Net investment income $ 0.04 $ 0.08
Net realized and unrealized loss on investments and foreign currency
transactions (0.55) (0.34)
Total decrease from investment operations $ (0.51) $ (0.26)
Distributions to shareholders from:
Net investment income (0.06) --
Net realized gain (0.08) --
Net decrease in net asset value $ (0.65) $ (0.26)
Net asset value, end of period $ 11.59 $ 12.24
Total return* (4.21)% (2.08)%
Ratio of net operating expenses to average net asset 2.25%** 2.25%**
Ratio of net investment income to average net asset 0.74%** 1.85%**
Portfolio turnover rate 189.94%** 259.22%**
Net assets, end of period (in thousands) $ 15,946 $ 17,067
Ratios assuming no waiver of fees or assumption of expenses by PMC:
Net operating expenses 4.86%** 4.13%**
Net investment loss (1.86)%** (0.03)%**
<FN>
+ The per share data presented above is based upon average shares out-
standing and average net assets for the period presented.
# The Fund commenced operations on June 23, 1994.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
PIONEER EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
Selected Data for a Share Outstanding for the Periods Presented
(continued)
<TABLE>
<CAPTION>
Six Months Ended Period Ended
May 31, 1995 November 30, 1994+#
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 12.19 $ 12.50
Increase (decrease) from investment operations:
Net investment income $ 0.01 $ 0.02
Net realized and unrealized loss on investments and foreign currency
transactions (0.56) (0.33)
Total decrease from investment operations $ (0.55) $ (0.31)
Distributions to shareholders from:
Net investment income (0.03) --
Net realized gain (0.08) --
Net decrease in net asset value $ (0.66) $ (0.31)
Net asset value, end of period $ 11.53 $ 12.19
Total return* (4.51)% (2.48)%
Ratio of net operating expenses to average net asset 2.94%** 3.33%**
Ratio of net investment income to average net asset 0.12%** 0.77%**
Portfolio turnover rate 189.94%** 259.22%**
Net assets, end of period (in thousands) $ 5,329 $ 4,319
Ratios assuming no waiver of fees or assumption of expenses by PMC:
Net operating expenses 5.51%** 5.21%**
Net investment loss (2.45)%** (1.11)%**
<FN>
+ The per share data presented above is based upon average shares out-
standing and average net assets for the period presented.
# The Fund commenced operations on June 23, 1994.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of
the investment at net asset value at the end of each period and no
sales charges. Total return would be reduced if sales charges were
taken into account.
** Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
PIONEER EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS
May 31, 1995
1. Pioneer Emerging Markets Fund (the Fund), a Delaware business trust, is
registered under the Investment Company Act of 1940 as a diversified,
open-end management company.
The Board of Trustees (the Trustees) has authorized the issuance of two
classes of the Fund, designated as Class A and Class B shares. The shares
of each class represent an interest in the same portfolio of investments
of the Fund and have equal rights to voting, redemptions, dividends and
liquidations, except that each class of shares can bear different transfer
agent and distribution fees and have exclusive voting rights with respect
to the distribution plans that have been adopted by holders of Class A and
Class B shares, respectively.
The following is a summary of significant accounting policies consistently
followed by the Fund, which are in conformity with those generally ac-
cepted in the investment company industry:
A. Security Valuation -- Security transactions are recorded on the date
the securities are purchased or sold. Each day, securities are valued at
the last sale price on the principal exchange where they are traded. Secu-
rities that have not traded on the date of valuation or securities for
which sales prices are not generally reported are valued at the mean be-
tween the last bid and asked prices. Securities for which market quota-
tions are not readily available will be valued at their fair value as de-
termined by, or under the direction of, the Trustees. Trading in foreign
securities is substantially completed each day at various times prior to
the close of the New York Stock Exchange. The value of such securities
used in computing the net asset value of the Fund's shares is determined
as of such times. Temporary cash investments are stated at cost plus ac-
crued interest, which approximates market value. Dividend income is re-
corded on the ex-dividend date, except that certain dividends from foreign
securities that are not known on the ex-dividend date are recorded as soon
as the Fund is informed of the dividends. Interest income is recorded on
the accrual basis, net of unrecoverable foreign taxes withheld at the ap-
plicable country rates.
Gains and losses from sales of investments are calculated on the "identi-
fied cost" method for both financial reporting and federal income tax pur-
poses. It is the Fund's practice first to select for sale those securities
that have the highest cost and also qualify for long-term capital gain or
loss treatment for tax purposes. In addition, net realized capital gains
on securities in certain countries give rise to capital gains taxes. It is
the Fund's policy to provide a reserve against net unrealized gains for
capital gains taxes on certain foreign securities held by the Fund. The
Fund paid no capital gains taxes realized on the sale of certain foreign
securities during the six months ended May 31, 1995.
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 (see Note 5).
C. Forward Foreign Currency Contracts -- The Fund is authorized to enter
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 investments transactions
(settlement hedges) or portfolio positions (portfolio hedges). All con-
tracts are marked-to-market daily at the applicable translation rates, and
any resulting unrealized gains or losses are recorded in the Fund's finan-
cial statements. The Fund records realized gains or losses at the time a
portfolio hedge is offset by entry into a closing transaction or extin-
guished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of the contracts and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar. As of May 31, 1995, the
Fund had no outstanding portfolio hedges. The Fund's gross forward foreign
currency settlement contracts receivable and payable were $486,927 and
$487,692, respectively, resulting in a net payable of $765.
D. Federal Taxes -- It is the Fund's policy to comply with the require-
ments of the Internal Revenue Code applicable to regulated investment com-
panies and to distribute all of its taxable income and net realized capi-
tal gains, if any, to its shareholders. Therefore, no federal income tax
provisions are required.
The characterization of distributions to shareholders for financial re-
porting purposes is determined in accordance with income tax rules. There-
fore, the source of the Fund's distributions may be shown in the accompa-
nying financial statements as either from or in excess of net investment
income or net realized gain on investment transactions, or from capital,
depending on the type of book/tax differences that may exist.
E. Trust Shares -- The Fund records sales and repurchases of its shares on
the trade date. Net losses, if any, as a result of cancellations are ab-
sorbed by Pioneer Funds Distributor, Inc. (PFD), the principal underwriter
for the Fund and a wholly owned subsidiary of The Pioneer Group, Inc.
(PGI). PFD earned $11,248 in underwriting commissions on the sale of trust
shares during the six months ended May 31, 1995. Dividends and distribu-
tions to shareholders are recorded as of the ex-dividend date. Dividends
paid by the Fund, if any, with respect to each class of shares are calcu-
lated in the same manner, at the same time, on the same day and are in the
same amount, except that Class A and Class B shares can bear different
transfer agent and distribution fees.
F. Class Allocations -- Distribution expenses are calculated based on the
average daily net asset value attributable to Class A and Class B shares
of the Fund, respectively. Shareholders of Class A and Class B share all
expenses and fees paid to the transfer service organization, Pioneering
Services Corporation (PSC), for their services, which are allocated based
on the number of accounts in each class and the ratable allocation of re-
lated out-of-pocket expense (see Note 3). Income, common expenses and re-
alized and unrealized gains (losses) are calculated at the Fund level and
allocated daily to each class of shares based on the respective percentage
of adjusted net assets at the beginning of the day.
G. Repurchase Agreements -- The Fund may enter into repurchase agreements.
At the time the Fund enters into a repurchase agreement, the value of the
underlying security (collateral), including accrued interest, will be
equal to or exceed the value of the repurchase agreement, and in the case
of repurchase agreements exceeding one day, the value of the underlying
security, including accrued interest, is required during the term of the
agreement to be equal to or exceed the value of the repurchase agreement.
The underlying securities for all repurchase agreements are held in safe-
keeping in the customer-only account of the Fund's custodian, or at the
Federal Reserve Bank. If the seller defaults and the value of the collat-
eral declines, or if bankruptcy proceedings commence with respect to the
seller of the security, realization of the collateral by the Fund may be
delayed or limited. As of May 31, 1995, the Fund did not have any out-
standing repurchase agreements.
2. Pioneering Management Corporation (PMC) is the Fund's investment ad-
viser, manages the Fund's portfolio and is a wholly owned subsidiary of
PGI. Management fees are calculated daily at the annual rate of 1.25% of
the Fund's average daily net assets.
In addition, under the management agreement, certain services and costs,
including accounting, regulatory reporting and insurance premiums, are
paid by the Fund. Included in Accrued expenses is $8,583 in accounting
fees payable to PMC at May 31, 1995.
PMC has agreed not to impose a portion of its management fee and to assume
other expenses of the Fund to the extent necessary to limit Class A ex-
penses to 2.25% of the average daily net assets attributable to Class A
shares; the portion of the Fund-wide expenses attributable to Class B
shares will be reduced only to the extent such expenses are reduced for
Class A shares. PMC's agreement is voluntary and temporary and may be re-
vised or terminated at any time.
3. PSC, a wholly owned subsidiary of PGI, provides substantially all
transfer agent and shareholder services to the Fund at negotiated rates.
Included in Accrued Expenses is $3,463 in transfer agent fees payable to
PSC at May 31, 1995.
4. The Fund has adopted a Plan of Distribution for both Class A shares
(Class A Plan) and Class B shares (Class B Plan) in accordance with Rule
12b-1 under the Investment Company Act of 1940 pursuant to which certain
distribution and service fees are paid to PFD.
Pursuant to the Class A Plan, the Fund reimburses PFD for its actual ex-
penditures to finance any activities primarily intended to result in the
sale of Class A shares or to provide services to holders of Class A
shares. Reimbursement for such expenditures, if any, may not exceed 0.25%
of the Fund's average daily net assets attributable to Class A shares. The
Class B Plan provides that the Fund may pay a distribution fee at an an-
nual rate of 0.75% of the Fund's average daily net assets attributable to
Class B shares and may pay PFD a service fee at the annual rate of 0.25%
of the Fund's average daily net assets attributable to Class B shares. In-
cluded in Accrued expenses is $19,407 in distribution fees payable to PFD
at May 31, 1995.
Class B shares that are redeemed within six years of purchase are subject
to a contingent deferred sales charge (CDSC) at declining rates beginning
at 4.0% of the lesser of the current market value at the time of redemp-
tion or the original purchase cost of the shares being redeemed. Proceeds
of the CDSC are paid to PFD. For the six months ended May 31, 1995, CDSC
in the amount of $4,755 was paid to PFD.
5. In accordance with Statement of Position 93-4 (SOP 93-4): Foreign Cur-
rency Accounting and Financial Statement Presentation for Investment Com-
panies, net realized gains and losses on forward foreign currency transac-
tions and other assets and liabilities denominated in foreign currencies
represent, among other things, the net realized gains and losses on for-
eign currency contracts, disposition of foreign currencies and the differ-
ence between the amount of income accrued and the U.S. dollar amount actu-
ally received. Further, as permitted under SOP 93-4, the effects of
changes in foreign currency exchange rates on investments in securities
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 in securities.
PIONEER EMERGING MARKETS FUND
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER EMERGING MARKETS
FUND:
We have audited the accompanying balance sheet of Pioneer Emerging Markets
Fund, including the schedule of investments, as of May 31, 1995, and the
related statement of operations, statements of changes in net assets and
financial highlights for the periods presented. These financial statements
and financial highlights are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial statements
and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and fi-
nancial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclo-
sures in the financial statements. Our procedures included confirmation of
securities owned as of May 31, 1995, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and sig-
nificant 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 Emerging Markets Fund as of May 31, 1995, the results of its
operations, the changes in its net assets and financial highlights for the
periods presented, in conformity with generally accepted accounting
principles.
Boston, Massachusetts
June 30, 1995 ARTHUR ANDERSEN LLP
