[PIONEER LOGO]
Pioneer
Emerging Markets
Fund
ANNUAL REPORT 11/30/96
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Table of Contents
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Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 16
Notes to Financial Statements 22
Report of Independent Public Accountants 27
Trustees' Fees and Share Ownership 28
Trustees, Officers and Service Providers 29
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Pioneer Emerging Markets Fund
LETTER FROM THE CHAIRMAN 11/30/96
Dear Shareowner,
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It is with pleasure that I introduce this report for Pioneer Emerging Markets
Fund, covering the year ended November 30, 1996. We wish to welcome new
shareowners, particularly those who joined the Fund through Class C Shares,
which were introduced on January 31.
Your Fund had a good year, thanks in large part to your portfolio management
team's inclination - and ability - to invest in a wide variety of countries.
It was clearly an environment that rewarded careful country and company
selection, and the Fund's emphasis on buying reasonably priced stocks proved
particularly important. As U.S. investors have learned, there can be
significant risks for those who chase "hot" stocks; we still think a stock
should be purchased because it represents a good value for a company with
strong prospects over time. This approach is especially prudent when
investing in countries in varying stages of economic development or growth.
A final note. As you see, we've given your Fund's annual report a facelift. The
new, improved style reflects what shareowners told us they want to see in fund
reports. Our thanks to all of you who took the time to respond to our questions.
Now you'll find a Table of Contents and consistent, easy-to-read summaries of
portfolio information and performance. There's also a Portfolio Management
Discussion of the portfolio management team's insights into market conditions,
portfolio strategy and results. We hope you find them informative.
Please contact your investment representative, or us at 1-800-225-6292, if you
have questions about your investment in Pioneer Emerging Markets Fund. Thank you
for your continued support.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
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Pioneer Emerging Markets Fund
PORTFOLIO SUMMARY 11/30/96
P o r t f o l i o D i v e r s i f i c a t i o n
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(As a percentage of total investment portfolio)
Other International Securities 0.2%
Short-Term Cash Equivalents 1.7%
International Preferred Stocks 7.8%
Depositary Receipts for International Stocks 30.8%
International Common Stocks 59.5%
G e o g r a p h i c a l D i s t r i b u t i o n
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(As a percentage of equity holdings)
Brazil 16.4% Malaysia 1.9%
Hong Kong 11.7% Pakistan 1.9%
Mexico 10.9% Venezuela 1.5%
South Korea 9.4% Peru 1.2%
Israel 8.9% Russia 1.1%
Thailand 7.2% Spain 1.0%
Turkey 6.5% Philippines 1.0%
Argentina 5.5% Ireland 0.9%
India 3.3% Singapore 0.8%
Indonesia 3.1% Portugal 0.2%
China 2.8% Australia 0.2%
Bermuda 2.5% Japan 0.1%
10 L a r g e s t H o l d i n g s
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(As a percentage of equity holdings)
1. Telecommunications 3.47% 6. EK Chor China 2.32%
Brasileiras SA Motorcycle Co., Ltd.
(Sponsored A.D.R.)
2. Grupo Iusacell SA (Series L) 3.36 7. Korea First Bank 2.22
(Sponsored A.D.R.)
3. ECI Telecommunication Ltd. 2.93 8. China Tire Holdings Ltd. 2.14
4. Teva Pharmaceutical 2.90 9. CIADEA SA 2.03
Industries Ltd.
(Sponsored A.D.R.)
5. Central European Media 2.53 10. Cemex, SA de CV (Class B) 1.95
Enterprises Ltd. (Sponsored A.D.R.)
Fund holdings will vary for other periods.
2
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Pioneer Emerging Markets Fund
PERFORMANCE UPDATE 11/30/96 CLASS A SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
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Net Asset Value
per Share 11/30/96 11/30/95
$13.94 $11.56
Distributions per Share Income Short-Term Long-Term
(11/30/95-11/30/96) Dividends Capital Gains Capital Gains
- - -
I n v e s t m e n t R e t u r n s
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The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Emerging Markets Fund at public offering price, compared to the growth
of the Morgan Stanley Capital International (MSCI) Emerging Markets Free Index.
Average Annual Total Returns
(As of November 30, 1996)
Period Net Asset Public Offering
Value Price*
Life-of-Fund 5.24% 2.72%
(6/23/94)
1 Year 20.59 13.61
* Reflects deduction of the maximum 5.75% sales charge at the beginning
of the period and assumes reinvestment of distributions at net asset value.
[TABULAR REPRESENTATION OF LINE CHART]
Growth of $10,000+
Pioneer Emerging MSCI Emerging
Markets Fund* Markets Free Index
6/94 9425 10000
8/94 10483 11940
11/94 9231 11242
2/95 7896 9002
5/95 8842 9970
8/95 9031 9983
11/95 8847 9385
2/96 10203 10332
5/96 11122 10780
8/96 10509 10365
11/96 10678 10347
+ Index comparison begins June 30, 1994. The MSCI Emerging Markets Free Index
is an unmanaged, capitalization-weighted measure of 1,013 securities
trading in 26 emerging markets; it reflects only those securities available
to foreign investors. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any
sales charges, fees or expenses. You cannot invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
3
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Pioneer Emerging Markets Fund
PERFORMANCE UPDATE 11/30/96 CLASS B SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
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Net Asset Value
per Share 11/30/96 11/30/95
$ 13.73 $ 11.47
Distributions per Share Income Short-Term Long-Term
(11/30/95-11/30/96) Dividends Capital Gains Capital Gains
- - -
I n v e s t m e n t R e t u r n s
- -------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Emerging Markets Fund, compared to the growth of the Morgan Stanley
Capital International (MSCI) Emerging Markets Free Index.
Average Annual Total Returns
(As of November 30, 1996)
Period If If
Held Redeemed*
Life-of-Fund 4.50% 3.34%
(6/23/94)
1 Year 19.70 15.70
* 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.
[TABULAR REPRESENTATION OF LINE CHART]
Growth of $10,000+
Pioneer Emerging MSCI Emerging
Markets Fund* Markets Free Index
6/94 10000 10000
8/94 11112 11940
11/94 9752 11242
2/95 8327 9002
5/95 9312 9970
8/95 9505 9983
11/95 9294 9385
2/96 10705 10332
5/96 11646 10780
8/96 10981 10365
11/96 10835 10347
+ Index comparison begins June 30, 1994. The MSCI Emerging Markets Free Index
is an unmanaged, capitalization-weighted measure of 1,013 securities
trading in 26 emerging markets; it reflects only those securities available
to foreign investors. Index returns are calculated monthly, assume
reinvestment of dividends and, unlike Fund returns, do not reflect any
sales charges, fees or expenses. You cannot invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
4
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Pioneer Emerging Markets Fund
PERFORMANCE UPDATE 11/30/96 CLASS C SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
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Net Asset Value
per Share 11/30/96 1/31/96
$ 13.73 $ 13.22
Distributions per Share Income Short-Term Long-Term
(1/31/96-11/30/96) Dividends Capital Gains Capital Gains
- - -
I n v e s t m e n t R e t u r n s
- -------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Emerging Markets Fund, compared to the growth of the Morgan Stanley
Capital International (MSCI) Emerging Markets Free Index.
Cumulative Total Returns
(As of November 30, 1996)
Period If If
Held Redeemed*
Life-of-Fund 3.86% 2.86%
(1/31/96)
1 Year 20.59 13.61
* Reflects deduction of the 1% contingent deferred sales charge (CDSC) at the
end of the period and assumes reinvestment of distributions.
[TABULAR REPRESENTATION OF LINE CHART]
Growth of $10,000+
Pioneer Emerging MSCI Emerging
Markets Fund* Markets Free Index
1/96 10000 10000
2/96 9970 9841
3/96 9864 9918
4/96 10537 10314
5/96 10855 10268
6/96 11067 10332
7/96 10129 9626
8/96 10234 9872
9/96 10424 9958
10/96 10038 9692
11/96 10286 9855
The MSCI Emerging Markets Free Index is an unmanaged, capitalization-weighted
measure of 1,013 securities trading in 26 emerging markets; it reflects only
those securities available to foreign investors. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Fund returns, do not
reflect any sales charges, fees or expenses. You cannot invest directly in the
Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
5
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Pioneer Emerging Markets Fund
PORTFOLIO MANAGEMENT DISCUSSION 11/30/96
D e a r S h a r e o w n e r ,
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The fiscal year ended November 30, 1996, was volatile for emerging stock
markets. Markets in Russia, Venezuela, Argentina, Brazil, Taiwan and Hong Kong
rose more than 20%, while others - including India, Thailand and Korea - fell
4%-32%. We are pleased to report that Pioneer Emerging Markets Fund performed
quite well in what was a rather unpredictable environment. The Fund's Class A
Shares delivered a 21% total return for the year, versus an average of 13% for
the 85 emerging market funds followed by Lipper Analytical Services for the
12-month period.
Looking Around the Globe for Opportunity
The Fund's return during the fiscal year was derived from a number of countries,
reflecting our belief that a diversified portfolio is the best way to pursue
opportunity and reduce risk. During the first half of the year, the Fund
profited from its relatively large allocations to Argentina, India, Mexico and
Poland.
In the last six months of the fiscal year, investments in Brazil, Israel, Russia
and Turkey were significant contributors to the Fund's strong performance.
Russian equities, which accounted for as much as 12% of the Fund's portfolio at
the beginning of July, were standouts. We first purchased Russian holdings in
March, well in advance of the June elections, when confidence in Russia's future
was at low ebb. As it became clear in the polls that Boris Yeltsin would win the
presidential election, the price of Russian stocks soared. The Fund locked in
substantial gains when we sold after the market rallied some 150% in U.S. dollar
terms from March to July. Later in the period, prices of Russian securities
wavered, and so we bought back in with an eye to Russia's still-considerable
potential.
There were instances, however, where hindsight shows our decisions to increase
asset allocations were premature. The Fund's positions in Korea and Thailand are
examples, and the relatively large positions there did offset some of the gains
from Russian holdings, although we continue to believe these markets offer
substantial potential looking out over the next several years.
6
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Pioneer Emerging Markets Fund
A Diversified Portfolio
We continued to manage the portfolio by investing in countries and stocks we
think offer opportunity and are reasonably priced relative to alternatives we
see globally. One good example is Telecommunications Brasileiras, Brazil's
state-owned holding company for 27 telecommunications operating companies. It is
a treasure trove of hidden assets; its subsidiaries are being privatized and
restructured. Grupo Iusacell, another example, is a Mexican cellular telephone
operator in which Bell Atlantic recently increased its stake. The company's
operating performance should improve dramatically as the Mexican economy
recovers over the next several years.
In Israel, the Fund holds stock in several truly multinational companies whose
products are sold globally and whose manufacturing operations are based in
Israel and other countries. These include Tadiran (telecommunications equipment
and defense electronics), Teva Pharmaceutical Industries (generic and ethical
pharmaceuticals) and ECI Telecommunication (telecommunications equipment). As
the Israeli economy recovers from years of deficit spending - and with the
Palestinian peace process on track - we expect these stocks will deliver
attractive returns.
Other large holdings include companies such as Ek Chor China Motorcycle
(manufacturer of motorcycles and carburetors in China), Shandong Huaneng Power
(electric power generation) and China Tire Holdings (tire manufacturer). At
current stock prices, these companies are trading at reasonable valuations and
their operating results should improve if the Chinese economy accelerates in
1997.
Looking Ahead
As we end fiscal year 1996, we are bullish on the prospects for Latin American
and Asian stock markets. Brazil is undergoing a major transformation in its
economy. The privatization process is moving forward in the electric and
telecommunications sectors, and foreign direct investment is on the rise. In
both Argentina and Mexico, interest rates are falling and the economy is
recovering from the recession triggered by the devaluation of the Mexican peso
in December 1994.
7
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Pioneer Emerging Markets Fund
PORTFOLIO MANAGEMENT DISCUSSION 11/30/96 (continued)
In Asia, we are excited about the prospects for higher economic growth in China.
Growth there should have positive implications for Hong Kong and other East
Asian economies, including Thailand and Korea. In most of these stock markets,
we are seeing valuations near or below those that existed prior to the
tremendous emerging market rally of 1993. Bearish sentiment abounds in many of
these countries, particularly in Korea, Thailand and India. Currently, stocks
are trading at 1992 and 1993 price levels, even after many companies have
improved their products, increased efficiencies and expanded capacity through
substantial capital spending. As a result, stocks are trading at very attractive
valuation levels.
When investing on your behalf, we never overlook the risks that are part and
parcel of emerging markets - currency fluctuations, social and economic
instability, differing securities regulations and accounting standards, possible
changes in taxation and periods of illiquidity. Despite these challenges, we
believe emerging markets offer the potential for substantial gains. The stage
has been set by the dramatic corrections various markets experienced from 1994
through 1996 - notably Korea, Thailand and India - and weak prices in many other
emerging stock markets over the past several years. Barring a major correction
in the U.S. market, emerging stock markets around the globe should do well over
the next several years. Should a correction occur in the U.S. stock market, we
believe emerging markets would also suffer in the short-term. In the longer run,
however, we are convinced they have the potential to outperform the U.S. or
other established markets. In any event, we expect our disciplined investment
process, which involves both top-down asset allocation by country and bottom-up
company specific analysis, will prove valuable in our efforts to deliver good
results to shareowners in the coming years.
Respectfully,
/s/ Mark H. Madden
Mark H. Madden,
Portfolio Manager
8
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Pioneer Emerging Markets Fund
SCHEDULE OF INVESTMENTS 11/30/96
SCHEDULE OF INVESTMENTS 11/30/96 (continued)
Shares Value
INVESTMENT IN SECURITIES - 98.3%
PREFERRED STOCKS - 13.2%
93,000,000 Banco Bradesco SA $ 675,218
59,450 Centrais Electricas Brasileiras SA (Class B)
(Sponsored A.D.R.) 981,074
1,410,000 Cia Cimento Portland Itau 402,662
28,000,000 Companhia Energetica de Minas Gerais 902,614
37,000 Companhia Vale Do Rio Doce (Sponsored A.D.R.) 771,798
84,000,000 Ericsson Telecomunicacoes SA 1,309,197
610,000 Itausa Investimentos Itau SA NPV 454,695
30,010 L.G. Securities Co., Ltd.* 213,594
50,600,000 Metal Leve SA* 401,665
15,700 Multicanal Participacoes SA (A.D.R.)* 221,763
60,900,000 OSA SA 400,891
11,100,000 Petrobras Distribuidora SA 1,525,847
999,900,000 Randon Participacoes SA 522,697
8,000 Samsung Display Devices Co. 273,445
25,940 Shin Won Corp. 275,375
45,000 Telecommunications Brasileiras SA
(Sponsored A.D.R.) 3,408,750
16,910,000 Unibanco 464,902
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Total Preferred Stocks
(Cost $15,288,382) $13,206,187
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COMMON STOCKS - 84.9%
Basic Industries - 5.9%
Chemicals - 0.5%
325,800 Corimon S.A.C.A. (Sponsored A.D.R.)* $ 214,800
50 Grasim Industries Ltd. 537
407,500 Indo Gulf Fertilizers and Chemicals Corp., Ltd.
(G.D.R.) 244,500
4,279 Reliance Industries Ltd. 21,651
-----------
$ 481,488
-----------
Containers - 0.9%
2,930,000 M.C. Packaging Ltd. $ 956,835
-----------
Forest Products - 0.3%
190,000 ITC Bhadrachalam Paperboards Ltd. $ 279,240
-----------
Iron & Steel - 0.9%
1,335,000 NTS Steel Groups Co., Ltd.* $ 588,037
969,300 Sahaviriya Steel Industries Public Co., Ltd.* 341,563
The accompanying notes are an integral part of these financial statements.
9
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Pioneer Emerging Markets Fund
SCHEDULE OF INVESTMENTS 11/30/96 (continued)
Shares Value
Iron & Steel - (continued)
3,000 Tata Iron & Steel Co., Ltd. $ 12,870
----------
$ 942,470
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Metals & Mining - 0.8%
11,400 Hindalco Industries Ltd. $ 187,729
28,000 Hindalco Industries Ltd. (G.D.R.)* 571,200
----------
$ 758,929
----------
Paper Products - 0.4%
83,500 Asia Pacific Resources International Holding
Ltd.* $ 417,500
30,856 PT Indah Kiat Pulp & Paper Corp. 22,369
----------
$ 439,869
----------
Tire & Rubber - 2.1%
227,000 China Tire Holdings Ltd. $2,099,750
----------
Total Basic Industries $5,958,581
----------
Capital Goods - 5.9%
Construction & Engineering - 5.1%
75,000 Apasco, SA de CV $ 498,288
265,000 Cemex, SA de CV (Class B) (Sponsored A.D.R.) 1,912,969
19,500,000 EGE Seramik Sanayi ve Ticaret AS* 666,830
69,000 Empresas ICA Sociodad Contradadora SA De CV
(Sponsored A.D.R.)* 991,875
426,000 PT United Tractors 908,316
20,000 Siam City Cement 133,122
----------
$5,111,400
----------
Producer Goods - 0.8%
50,000 Zag Industries Ltd.* $ 806,250
----------
Total Capital Goods $5,917,650
----------
Consumer Durables - 4.4%
Motor Vehicles - 4.4%
455,900 CIADEA SA* $1,997,641
308,600 EK Chor China Motorcycle Co., Ltd. 2,275,925
100,000 Mirgor Sacifia (Class C) (Sponsored A.D.R.)* 137,500
----------
Total Consumer Durables $4,411,066
----------
Consumer Non-Durables - 3.8%
Beverages - 1.1%
485,000 Embotelladores del Valle de Anahuac SA (Class
B)* $ 282,256
245,000 Jugos de Valle SA (B Series)* 380,531
10,000 Panamerican Beverages, Inc. 467,500
----------
$1,130,287
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The accompanying notes are an integral part of these financial statements.
10
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Pioneer Emerging Markets Fund
Shares Value
---------
Retail Non-Food - 1.9%
536,300 Cifra, SA de CV (Series B)* $ 737,098
1,025,000 PT Matahari Putra Prima 1,158,316
-----------
$ 1,895,414
-----------
Textiles/Clothes - 0.8%
347,700 Asia Fiber Co., Ltd. $ 123,884
26,890 Shin Won Corp. 655,260
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$ 779,144
-----------
Total Consumer Non-Durables $ 3,804,845
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Financial - 24.2%
Brokerage - 1.5%
29,343 Daewoo Securities Co., Ltd. $ 477,870
40,000 L.G. Securities Co., Ltd.* 521,141
40,000 Sangyong Investment Securities Co.* 487,364
-----------
$ 1,486,375
-----------
Commercial Banks - 10.4%
2,633,000 Akbank T.A.S. $ 295,843
13,000 Banco Totta & Acores (B Shares) 228,959
202,000 Banco Wiese Ltd. (Sponsored A.D.R.) 1,161,500
273,200 Commercial Bank of Korea 1,885,161
250,000 Dah Sing Financial Holdings Ltd. 1,005,561
450,000 First Bangkok City Bank Public Co., Ltd. 502,144
430,575 Grupo Financiero Banamex Accival SA de CV
(Class L)* 780,680
376,000 Korea First Bank* 2,177,212
415,000 PT Pan Indonesia Bank 455,704
685,000 Siam City Bank Public Co., Ltd. 804,604
2,300 State Bank of India Ltd. 14,052
65,000 State Bank of India Ltd. (G.D.R.)* 1,057,875
-----------
$10,369,295
-----------
Misc. Finance - 7.8%
361,000 CMIC Finance and Securities Co., Ltd. $ 692,586
270,000 Dhana Siam Finance and Securities Public Co.,
Ltd. 819,287
255,000 Finance One Public Co., Ltd. 728,842
72,092,000 Global Menkul Degerler AS 739,586
1,870,000 Grupo Financiero Bancomer (B Shares)* 751,604
54,000 Grupo Financiero Inbursa, SA de CV (B Shares) 171,852
The accompanying notes are an integral part of these financial statements.
11
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Pioneer Emerging Markets Fund
SCHEDULE OF INVESTMENTS 11/30/96 (continued)
Shares Value
Misc. Finance - (continued)
147,000 Hong Leong Finance Ltd. $ 509,390
65,000 Industrial Credit & Investment Corp. of India
Ltd. (G.D.R.)* 560,625
385,000 National Finance & Securities Co., Ltd. 881,835
346,200 Pakistan Investment Fund Inc.* 1,904,100
-----------
$ 7,759,707
-----------
Insurance - 3.0%
130,000 Ayudhya Life Insurance Co. $ 508,996
285,000 Malaysian Assurance Alliance Bhd. 1,409,774
450,000 National Mutual Asia Ltd. 410,308
141,000 National Mutual Holdings Ltd.* 198,543
195,000 Pacific & Orient Bhd. 497,725
-----------
$ 3,025,346
-----------
Real Estate - 1.5%
656,000 China Resources Beijing Land Ltd.* $ 407,243
167,000 New World Development Co., Ltd. 1,128,524
-----------
$ 1,535,767
-----------
Total Financial $24,176,490
-----------
Services - 10.0%
Health & Personal Care - 0.1%
2,600 Nu Skin Asia Pacific Inc.* $ 77,025
-----------
Hotel/Restaurant - 0.5%
876,000 Cafe de Coral Holdings Ltd. $ 254,915
40,000 Overseas Union Enterprise Ltd. 196,791
-----------
$ 451,706
-----------
Broadcasting & Media - 5.2%
88,900 Central European Media Enterprises Ltd.* $ 2,489,200
75,000,000 Medya Holding* 879,336
245,000 Television Broadcasting Ltd. 941,089
63,000 TV Filme, Inc.* 866,250
-----------
$ 5,175,875
-----------
Pharmaceuticals - 3.7%
29,000 Elan Corp. Plc (Sponsored A.D.R.)* $ 862,750
61,500 Teva Pharmaceutical Industries Ltd. (Sponsored
A.D.R.) 2,844,375
-----------
$ 3,707,125
-----------
Misc. Services - 0.5%
180,000 Hong Kong Aircraft Engineering Co., Ltd. $ 520,305
-----------
Total Services $ 9,932,036
-----------
The accompanying notes are an integral part of these financial statements.
12
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Pioneer Emerging Markets Fund
Shares Value
Technology - 1.6%
Computer Services - 0.4%
107,500 Oshap Technologies, Ltd.* $ 436,719
----------
Electronics - 1.2%
14,000 Samsung Display Devices Co. $ 887,964
19,200 Shinawatra Computer Co., Plc 254,090
----------
$1,142,054
----------
Total Technology $1,578,773
----------
Transportation - 0.5%
Ships & Shipping - 0.5%
66,700 Transportacion Maritima Mexicana SA de CV
(Series L) (Sponsored A.D.R.) $ 458,562
----------
Total Transportation $ 458,562
----------
Utilities - 25.3%
Electric Utility - 4.2%
3,200,000 Centrais Electricas Brasileira SA $1,022,265
140,000 Hongkong Electric Holdings Ltd. 449,043
56,000 Huaneng Power International, Inc. (Series N)
(Sponsored A.D.R.)* 1,022,000
177,100 Shandong Huaneng Power Co., Ltd.
(Sponsored A.D.R.) 1,704,587
----------
$4,197,895
----------
Telecommunications - 21.1%
50,000 Compania Anonima Nacional Telefonos de Venezuela
(Class D) (Sponsored A.D.R.)* $1,268,750
2,516,946 Champion Technology Holdings Ltd. 442,712
144,000 ECI Telecommunications Ltd. 2,880,000
352,500 Grupo Iusacell SA (Series L) (Sponsored A.D.R.)* 3,304,687
315,000 Hong Kong Telecommunications Ltd. 545,913
1,340 Korea Mobile Telecommunication Corp. 1,356,606
45,000 Mahanagar Telephone Nigam Ltd. 271,471
3,200,000 Netas-Northern Elektrik Telekomunikasyon AS 680,020
164,600 Shinawatra Satellite Public Co., Ltd. 228,786
66,500 Tadiran Ltd. (Sponsored A.D.R.) 1,770,563
45,950 Telecom Argentina Stet-France Telecom SA (Class
B) (Sponsored A.D.R.) 1,809,281
202,000 TelecomAsia Corp. Public Co., Ltd.* 419,177
The accompanying notes are an integral part of these financial statements.
13
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Pioneer Emerging Markets Fund
SCHEDULE OF INVESTMENTS 11/30/96 (continued)
Shares Value
Telecommunications - (continued)
26,900,000 Telecomunicacoes Brasileiras SA $ 1,731,704
58,000 Telefonica de Argentina SA (Class B)
(Sponsored A.D.R.) 1,479,000
45,000 Telefonica de Espana 985,258
10,000,000 Teletas Telekomunikasyon Endustrive Ticaret AS* 830,484
40,000 Vimpel-Communications (Sponsored A.D.R.)* 1,100,000
-----------
$21,104,412
-----------
Total Utilities $25,302,307
-----------
Miscellaneous - 3.3%
124,000 Benpres Holdings Corp. (G.D.R.)* $ 936,200
3,000,000 Koc Holdings AS 615,535
59,429,000 Net Holding AS 1,712,902
-----------
SCHEDULE OF INVESTMENTS 11/30/96
(continued)Total Miscellaneous $ 3,264,637
-----------
Total Common Stocks
(Cost $88,007,509) $84,804,947
WARRANTS - 0.2%
114,000 Overseas Union Enterprise Ltd., 07/20/98* $ 170,695
102,648 PT Indah Kiat Pulp & Paper Corp., 04/13/01* 29,328
-----------
Total Warrants
(Cost $240,673) $ 200,023
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $103,536,564) (a) $98,211,157
-----------
Principal
Amount
TEMPORARY CASH INVESTMENT - 1.7%
Commercial Paper - 1.7%
$1,680,000 Household Financial Corp., 5.75%, 12/2/96 $ 1,680,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,680,000) $ 1,680,000
-----------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY
CASH INVESTMENT - 100%
(Cost $105,216,564) (b) $99,891,157
-----------
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
Pioneer Emerging Markets Fund
* Non-income producing security
(a) Distribution of investments by country of issue, as a percentage of total
equity holdings, is as follows:
Brazil 16.4%
Hong Kong 11.7
Mexico 10.9
South Korea 9.4
Israel 8.9
Thailand 7.2
Turkey 6.5
Argentina 5.5
India 3.3
Indonesia 3.1
China 2.8
Bermuda 2.5
Malaysia 1.9
Pakistan 1.9
Venezuela 1.5
Peru 1.2
Russia 1.1
Spain 1.0
Others (individually less than 1%) 3.2
-----
100.0%
-----
(b) At November 30, 1996, the net unrealized loss on investments based on
cost for federal income tax purposes of $105,292,272 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 6,248,837
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (11,649,952)
------------
Net unrealized loss $ (5,401,115)
------------
Purchases and sales of securities (excluding temporary cash investments) for
the year ended November 30, 1996 aggregated $154,367,861 and $78,606,561,
respectively.
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
Pioneer Emerging Markets Fund
BALANCE SHEET 11/30/96
ASSETS:
Investment in securities, at value (including temporary
cash investments of $1,680,000) (cost $105,216,564) $ 99,891,157
Cash 797,474
Foreign currencies, at value 2,613,838
Receivables -
Fund shares sold 1,116,567
Dividends, interest and foreign taxes withheld 93,981
Other 1,539
------------
Total assets $104,514,556
------------
LIABILITIES:
Payables -
Investment securities purchased $ 2,195,596
Fund shares repurchased 122,002
Due to affiliates 154,939
Accrued expenses 117,980
------------
Total liabilities $ 2,590,517
------------
NET ASSETS:
Paid-in capital $100,423,103
Accumulated undistributed net realized gain on investments
and foreign currency transactions 6,826,288
Net unrealized loss on investments (5,325,407)
Net unrealized gain on forward foreign currency contracts
and other assets and liabilities denominated in foreign
currencies 55
------------
Total net assets $101,924,039
------------
Net Asset Value Per Share:
(Unlimited number of shares authorized)
Class A (based on $56,465,072/4,049,512 shares) $ 13.94
------------
Class B (based on $39,892,773/2,904,984 shares) $ 13.73
------------
Class C (based on $5,566,194/405,469 shares) $ 13.73
------------
Maximum Offering Price:
Class A $ 14.79
------------
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
Pioneer Emerging Markets Fund
STATEMENT OF OPERATIONS
For the Year Ended 11/30/96
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of
$79,171) $ 786,847
Interest (net of foreign taxes withheld of $1,011) 162,262
-----------
Total investment income $ 949,109
-----------
EXPENSES:
Management fees $ 734,703
Transfer agent fees
Class A 107,648
Class B 70,798
Class C 5,780
Distribution fees
Class A 86,365
Class B 206,898
Class C 23,551
Accounting 153,065
Custodian fees 227,032
Registration fees 75,632
Professional fees 138,126
Printing 24,230
Fees and expenses of nonaffiliated trustees 16,858
Miscellaneous 48,000
-----------
Total expenses $ 1,918,686
Less management fees waived
by Pioneering Management Corporation (409,378)
Less fees paid indirectly (21,984)
-----------
Net expenses $ 1,487,324
-----------
Net investment loss $ (538,215)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments (net of capital gains taxes paid of
$177,168) $ 8,583,064
Forward foreign currency contracts and other
assets and liabilities denominated in foreign
currencies (163,561) $ 8,419,503
----------- -----------
Change in net unrealized loss from:
Investments $(3,455,569)
Forward foreign currency contracts and other
assets and liabilities denominated in foreign
currencies 25,443 $(3,430,126)
----------- -----------
Net gain on investments and foreign currency
transactions $ 4,989,377
-----------
Net increase in net assets resulting from
operations $ 4,451,162
-----------
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Pioneer Emerging Markets Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended 11/30/96 and 11/30/95
<TABLE>
<CAPTION>
Year Ended Year Ended
11/30/96 11/30/95
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ (538,215) $ 19,075
Net realized gain (loss) on investments and foreign
currency transactions 8,419,503 (1,124,331)
Change in net unrealized gain (loss) on investments and
foreign currency transactions (3,430,126) 372,226
------------ ------------
Net increase (decrease) in net assets resulting from
operations $ 4,451,162 $ (733,030)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.00 and $0.06 per share, respectively) $ -- $ (74,851)
Class B ($0.00 and $0.03 per share, respectively) - (11,716)
Net realized gain:
Class A ($0.00 and $0.13 per share, respectively) - (175,464)
Class B ($0.00 and $0.13 per share, respectively) - (52,148)
------------ ------------
Total distributions to shareholders $ -- $ (314,179)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $113,084,559 $ 21,995,056
Reinvestment of distributions - 273,812
Cost of shares repurchased (36,695,790) (21,538,201)
------------ ------------
Net increase in net assets resulting from fund share
transactions $ 76,388,769 $ 730,667
------------ ------------
ADDITIONAL PAID-IN CAPITAL $ 14,845 $ --
------------ ------------
Net increase (decrease) in net assets $ 80,854,776 $ (316,542)
NET ASSETS:
Beginning of year 21,069,263 21,385,805
------------ ------------
End of year (including accumulated net investment
loss of $0 and $3,984, respectively) $101,924,039 $ 21,069,263
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
'96 Shares '96 Amount '95 Shares '95 Amount
<S> <C> <C> <C> <C>
Class A
Shares sold 4,732,811 $ 65,088,650 1,402,890 $ 15,895,702
Reinvestment of distributions - - 18,565 217,663
Less shares repurchased (2,016,882) (27,460,481) (1,482,458) (16,889,924)
---------- ------------ ---------- ------------
Net increase (decrease) 2,715,929 $ 37,628,169 (61,003) $ (776,559)
---------- ------------ ---------- ------------
Class B
Shares sold 3,061,963 $ 41,971,587 539,792 $ 6,099,354
Reinvestment of distributions - - 4,819 56,149
Less shares repurchased (650,489) (8,752,592) (405,299) (4,648,277)
---------- ------------ ---------- ------------
Net increase 2,411,474 $ 33,218,995 139,312 $ 1,507,226
---------- ------------ ---------- ------------
Class C*
Shares sold 441,727 $ 6,024,322
Reinvestment of distributions - -
Less shares repurchased (36,258) (482,717)
---------- ------------
Net increase 405,469 $ 5,541,605
---------- ------------
</TABLE>
* Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
Pioneer Emerging Markets Fund
FINANCIAL HIGHLIGHTS 11/30/96
<TABLE>
<CAPTION>
Year Ended Year Ended 6/23/94 to
11/30/96 11/30/95 11/30/94(a)
<S> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 11.56 $ 12.24 $ 12.50
------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.07) $ 0.04 $ 0.08
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions 2.45 (0.53) (0.34)
------- ------- -------
Net increase (decrease) from investment
operations $ 2.38 $ (0.49) $ (0.26)
Distributions to shareholders from:
Net investment income - (0.06) -
Net realized gain - (0.13) -
------- ------- -------
Net increase (decrease) in net asset value $ 2.38 $ (0.68) $ (0.26)
------- ------- -------
Net asset value, end of period $ 13.94 $ 11.56 $ 12.24
------- ------- -------
Total return* 20.59% (4.07%) (2.08%)
Ratio of net expenses to average net assets 2.28%+ 2.27%+ 2.25%**
Ratio of net investment income (loss) to average
net assets (0.61%)+ 0.24%+ 1.85%**
Portfolio turnover rate 143% 247% 259%**
Average commission rate paid(1) $0.0003 $ -- $ --
Net assets, end of period (in thousands) $56,465 $15,411 $17,067
Ratios assuming no waiver of management fees and
assumption of expenses by PMC and no reduction
for fees paid indirectly:
Net expenses 3.00% 3.95% 4.13%**
Net investment loss (1.33%) (1.44%) (0.03%)**
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction
for fees paid indirectly:
Net expenses 2.25% 2.25% -
Net investment income (loss) (0.58%) 0.27% -
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sale charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
Pioneer Emerging Markets Fund
FINANCIAL HIGHLIGHTS 11/30/96
<TABLE>
<CAPTION>
Year Ended Year Ended 6/23/94 to
11/30/96 11/30/95 11/30/94(a)
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 11.47 $12.19 $ 12.50
------- ------ --------
Increase (decrease) from investment
operations:
Net investment income (loss) $ (0.03) $(0.04) $ 0.02
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions 2.29 (0.52) (0.33)
------- ------ --------
Net increase (decrease) from investment
operations $ 2.26 $(0.56) $ (0.31)
Distributions to shareholders from:
Net investment income - (0.03) -
Net realized gain - (0.13) -
------- ------ --------
Net increase (decrease) in net asset value $ 2.26 $(0.72) $ (0.31)
------- ------ --------
Net asset value, end of period $ 13.73 $11.47 $ 12.19
------- ------ --------
Total return* 19.70% (4.62%) (2.48%)
Ratio of net expenses to average net assets 3.00%+ 3.00%+ 3.33%**
Ratio of net investment income (loss) to
average net assets (1.47%)+ (0.47%)+ 0.77%**
Portfolio turnover rate 143% 247% 259%**
Average commission rate paid(1) $0.0003 - -
Net assets, end of period (in thousands) $39,893 $5,658 $ 4,319
Ratios assuming no waiver of management fees
and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 3.66% 4.57% 5.21%**
Net investment loss (2.13%) (2.05%) (1.11%)**
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction
for fees paid indirectly:
Net expenses 2.96% 2.96% -
Net investment loss (1.43%) (0.43%) -
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sale charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
Pioneering Emerging Markets Fund
FINANCIAL HIGHLIGHTS 11/30/96
<TABLE>
<CAPTION>
1/31/96 to
11/30/96
<S> <C>
CLASS C(a)
Net asset value, beginning of period $ 13.22
-------
Increase (decrease) from investment operations:
Net investment loss $ (0.09)
Net realized and unrealized gain on investments and foreign currency
transactions 0.60
-------
Net increase in net asset value $ 0.51
-------
Net asset value, end of period $ 13.73
-------
Total return* 3.86%
Ratio of net expenses to average net assets 2.91%**+
Ratio of net investment loss to average net assets (1.51%)**+
Portfolio turnover rate 143%
Average commission rate paid(1) $0.0003
Net assets, end of period (in thousands) $ 5,566
Ratios assuming no waiver of management fees
by PMC and no reduction for fees paid indirectly:
Net expenses 3.48%**
Net investment loss (2.08%)**
Ratios assuming waiver of management fees by PMC
and reduction for fees paid indirectly:
Net expenses 2.86%**
Net investment loss (1.46%)**
</TABLE>
(a) Class C shares were first publicly offered on January 31, 1996.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sale charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
Pioneer Emerging Markets Fund
NOTES TO FINANCIAL STATEMENTS 11/30/96
1. Organization and Significant Accounting Policies
Pioneer Emerging Markets 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 by investing primarily in securities of issuers in countries
with emerging economies or securities markets.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
Class C shares were first publicly offered on January 31, 1996. Shares of Class
A, Class B and Class C each represent an interest in the same portfolio of
investments of the Fund and have equal rights to voting, redemptions, dividends
and liquidation, except that each class of shares can bear different transfer
agent and distribution fees and have exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B and Class C
shareholders, respectively.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to, among
other things, make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and
expenses during the reporting periods. Actual results could differ from those
estimates. The following is a summary of significant accounting policies
consistently followed by the Fund, which are in conformity with those generally
accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded on trade date. Each day, securities are
valued at the last sale price on the principal exchange where they are
traded. Securities that have not traded on the date of valuation, or
securities for which sale prices are not generally reported, are valued at
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available are valued at their fair values as
determined by, or under the direction of, the Board of Trustees. Trading in
foreign securities is substantially completed each day at various times prior
to the close of the New York Stock Exchange. The values of such securities
used in computing the net asset value of the Fund's shares are determined as
of such times. Dividend income is recorded on the ex-dividend date, except
that certain dividends from foreign securities where the ex-dividend date may
have passed are recorded as soon as the Fund is informed of the data in the
exercise of reasonable
22
<PAGE>
Pioneer Emerging Markets Fund
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.
The Fund's investments in emerging markets or countries with limited or
developing markets may subject the Fund to greater degree of risk than in a
developed market. Risks associated with these developing markets include
political, social or economic factors and may affect the price of the Fund's
investments and income generated by these investments, as well as the Fund's
ability to repatriate such amounts. In addition, delays are common in
registering transfers of securities in certain foreign countries, such as
India, and the Fund may be unable to sell portfolio securities until the
registration process is completed.
B. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollar actually received. Further, the
effects of changes in foreign currency exchange rates on investments are not
segregated in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts
The Fund enters into forward foreign currency contracts (contracts) for the
purchase or sale of a specific foreign currency at a fixed price on a future
date as a hedge or cross-hedge against either specific investment
transactions (settlement hedges) or portfolio positions (portfolio hedges).
All contracts are marked to market daily at the applicable exchange rates,
and any resulting unrealized gains or losses are recorded in the Fund's
financial statements. The Fund records realized gains and losses at the time
a portfolio hedge is offset by entry into a closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar.
23
<PAGE>
Pioneer Emerging Markets Fund
NOTES TO FINANCIAL STATEMENTS 11/30/96 (continued)
D. Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required. In
addition to the requirements of the Internal Revenue Code, the Fund may also
be required to pay local taxes on net realized capital gains in certain
countries. The required capital gains taxes, if any, are determined in
accordance with local tax laws. In determining daily net asset value, the
Fund estimates the reserve for capital gains taxes, if any, associated with
net unrealized gains on certain portfolio securities. The estimated reserve
for capital gains taxes, if any, is based on the holding periods of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. During the year ended November 30, 1996, the Fund
paid $177,168 in capital gains taxes on the sale of certain foreign
securities.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
At November 30, 1996, the Fund reclassified from accumulated undistributed
net realized gain on investments and foreign currency transactions $542,199
and $1,386 to accumulated net investment loss and paid-in capital,
respectively. This reclassification has no impact on the net asset value of
the Fund and is designed to present the Fund's capital accounts on a tax
basis.
The Fund hereby designates $223,512 as a capital gain dividend for the
purposes of the dividend paid deduction.
E. Fund Shares
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations are absorbed by Pioneer Funds
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $86,393 in
underwriting commissions on the sale of fund shares during the year ended
November 30, 1996.
24
<PAGE>
Pioneer Emerging Markets Fund
F. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Shareholders of each class share all expenses and fees paid to
the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expense (see Note 3).
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning of
the day.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
G. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest received
from counterparties, is required to be at least equal to or in excess of the
value of the repurchase agreement at the time of purchase. The collateral for
all repurchase agreements is held in safekeeping in the customer-only account
of the Fund's custodian, or subcustodians. The Fund's investment adviser,
Pioneering Management Corporation (PMC), is responsible for determining that
the value of the collateral remains at least equal to the repurchase price.
2. Management Agreement
PMC manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 1.25% of the
Fund's average daily net assets.
PMC has agreed not to impose a portion of its management fee and to assume
other operating expenses of the Fund to the extent necessary to limit Class A
expenses 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 and
Class C shares will be reduced only to the extent that such expenses are
reduced for Class A shares. PMC's agreement is voluntary and temporary and
may be revised or terminated at any time.
25
<PAGE>
Pioneer Emerging Markets Fund
NOTES TO FINANCIAL STATEMENTS 11/30/96 (continued)
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. At November 30, 1996, $74,238 was payable to PMC related to management
fees and certain other services.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer agent
and shareholder services to the Fund at negotiated rates. Included in due to
affiliates is $22,731 in transfer agent fees payable to PSC at November 30,
1996.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the Investment
Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service
fee of up to 0.25% of the Fund's average daily net assets in reimbursement of
its actual expenditures to finance activities primarily intended to result in
the sale of Class A shares. Pursuant to the Class B Plan and the Class C Plan,
the Fund pays PFD 1.00% of the average daily net assets attributable to each
class of shares. The fee consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Included in due to affiliates is $57,970 in distribution fees payable to
PFD at November 30, 1996.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of purchase.
Class B shares that are redeemed within six years of purchase are subject to a
CDSC at declining rates beginning at 4.0%, based on the lower of cost or market
value of shares being redeemed. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSC are paid to PFD.
For the year ended November 30, 1996, CDSCs in the amount of $46,478 were paid
to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the year ended November 30, 1996,
the Fund's expenses were reduced by $21,984 under such arrangements.
6. Other
During the year ended November 30, 1996, PMC reimbursed the Fund $14,845 in
connection with cost incurred on certain portfolio transactions.
26
<PAGE>
Pioneer Emerging Markets Fund
To the Shareholders and the Board of Trustees of Pioneer Emerging Markets Fund:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Emerging Markets Fund as of November 30, 1996, and the
related statement of operations, the statements of changes in net assets, and
the financial highlights for the periods presented. These financial statements
and the financial highlights are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
November 30, 1996 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Emerging Markets Fund as of November 30, 1996, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
January 3, 1997
27
<PAGE>
Pioneer Emerging Markets Fund
NOTES TO FINANCIAL STATEMENTS 11/30/96
T r u s t e e s ' F e e s , P r i n c i p a l S h a r e h o l d e r s
a n d S h a r e O w n e r s h i p o f T r u s t e e s a n d
O f f i c e r s ( U n a u d i t e d )
The aggregate remuneration paid by the Fund to nonaffiliated trustees and
officers during the year ended November 30, 1996 was $3,351, plus expenses
incurred in attending trustees meetings of $9,424. Fees of trustees who are
affiliated with or "interested persons" of Pioneering Management Corporation and
Pioneer Funds Distributor, Inc., investment adviser and principal underwriter,
respectively, of the Fund ($1,000 in 1996) are reimbursed to the Fund by
Pioneering Management Corporation in accordance with the management agreement
with the Fund. At year-end, the trustees and officers of the Fund owned
beneficially 8,291 of Class A shares of the Fund (0.2% of the outstanding Class
A shares). The Pioneer Group, Inc., the parent company of Pioneering Management
Corporation and Pioneer Funds Distributor, Inc., is a publicly held corporation
of which Mr. Cogan, Chairman and President of the Fund, owned approximately 14%
of the outstanding shares of capital stock at year end.
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Pioneer Emerging Markets Fund
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Richard H. Egdahl, M.D. President
Margaret B.W. Graham David D. Tripple, Executive Vice President
John W. Kendrick Norman Kurland, Senior Vice President
Marguerite A. Piret William H. Keough, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareholder Services and Transfer Agent
Pioneering Services Corporation
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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.
You can call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Or write to us at:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
This report must be preceded or accompanied by a current
Fund prospectus.
(PIONEER LOGO)
Pioneer Funds Distributor, Inc. 0197-3854
60 State Street (c) Pioneer Funds Distributor, Inc.
Boston, Massachusetts 02109 [Recycle Logo] Printed on Recycled Paper
