<PAGE>
[Pioneer logo]
Pioneer
Emerging Markets
Fund
SEMIANNUAL REPORT 5/31/99
<PAGE>
Table of Contents
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 7
Schedule of Investments 11
Financial Statements 18
Notes to Financial Statements 25
Report of Independent Public Accountants 31
Trustees, Officers and Service Providers 32
The Pioneer Family of Mutual Funds 33
Programs and Services for Pioneer Shareowners 34
Retirement Plans from Pioneer 36
</TABLE>
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
LETTER FROM THE CHAIRMAN 5/31/99
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
I am pleased to introduce this semiannual report for Pioneer Emerging Markets
Fund, covering the six months ended May 31, 1999. Thank you for your investment
with Pioneer and your patience over the last 18 months as we've ridden out one
of the worst recessions in emerging markets history. I am happy to report that
your patience and our hard work have been rewarded with an outstanding six
months.
Investor interest returned to Asia early in the period as inexpensive stocks and
dropping interest rates created an investing environment too tempting for many
investors to pass up. Money poured into the region as word spread through the
business media and momentum built. Now, with Singapore, Taiwan and South Korea
all reporting positive economic numbers for the first quarter of 1999, real
signs of an economic recovery are in place. Coupled with a reform-minded and
resilient Brazilian economy, emerging markets are instilling greater confidence
in investors around the world.
Of course, extracting the potential reward from an area notorious for volatility
and risk takes hard work. It requires time and experience. Nowhere are the
fundamentals of long-term investing more important than overseas. At Pioneer, we
invest from the ground up. It means talking face to face with management -
wherever they live and work - to garner concrete facts, facts that tell us about
a company's balance sheet, management's commitment to excellence and any
competitive edge the company might have. These are among the key elements that
define a successful company over time and, we believe a successful investment as
well.
I encourage you to read on and learn more about Pioneer Emerging Markets Fund.
If you have any questions about your Fund, please contact your investment
professional, or call Pioneer at 1-800-225-6292.
Respectfully,
[Signature of John F. Cogan, Jr.]
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PORTFOLIO SUMMARY 5/31/99
- --------------------------------------------------------------------------------
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Pie Chart data]
International Common Stocks 66.9%
Depositary Receipts for International Stocks 28.7%
International Preferred Stocks 2.3%
Convertible Corporate Bonds 1.9%
Warrants 0.2%
Geographical Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[Bar Chart data]
Mexico 13% Phillippines 4%
Israel 11% Czech Republic 3%
Brazil 10% Russia 3%
India 10% South Africa 3%
Indonesia 8% Thailand 3%
Malaysia 6% Hong Kong 2%
Turkey 6% Greece 1%
South Korea 6% Pakistan 1%
Singapore 5% Taiwan 1%
Argentina 4%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
1. Tecnomatix Technologies Ltd. 3.30% 6. Grupo Radio Centro SA de 2.08%
CV (A.D.R.)
2. Benpres Holdings Corp. 2.86 7. Grupo Televisa SA (G.D.R.) 2.06
3. Telekomunikasi Indonesia 2.42 8. Ceske Radiokomunikace AS 1.95
(A.D.R.) (G.D.R.)
4. Pacific Internet Ltd. 2.39 9. Grupo Carso Global 1.92
Telecom
5. Kentucky Fried Chicken Bhd. 2.30 10. Finlayson Global Corp. Ltd., 1.89
0.00%, 2/19/04 (Convertible)
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/99 CLASS A SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 5/31/99 11/30/98
$10.90 $8.79
Distributions per Share Income Short-Term Long-Term
(11/30/98-5/31/99) Dividends Capital Gains Capital Gains
- - -
</TABLE>
Investment Returns
- --------------------------------------------------------------------------------
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.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of May 31, 1999)
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 1.02% -0.18%
(6/23/94)
1 Year -13.30 -18.30
- --------------------------------------------------------------------------------
</TABLE>
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
[Mountain Chart data]
Growth of $10,000+
<TABLE>
<CAPTION>
MSCI
Pioneer Emerging
Emerging Markets
Markets Free
Fund* Index
<S> <C> <C>
6/94 9425 10000
10365 11940
9128 11242
7808 9002
5/95 8743 9970
8930 9983
8756 9385
10127 10332
5/96 10998 10780
10392 10365
10558 10347
11967 11577
5/97 12385 11616
12558 10840
11653 8972
12109 9352
5/98 11311 8329
7182 5468
7902 6962
7776 6816
5/99 9798 8618
</TABLE>
+ Index comparison begins June 30, 1994. The MSCI Emerging Markets Free Index is
an unmanaged, capitalization-weighted measure of 1,009 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
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/99 CLASS B SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 5/31/99 11/30/98
$10.49 $8.49
Distributions per Share Income Short-Term Long-Term
(11/30/98-5/31/99) Dividends Capital Gains Capital Gains
- - -
</TABLE>
Investment Returns
- --------------------------------------------------------------------------------
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.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of May 31, 1999)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 0.27% -0.07%
(6/23/94)
1 Year -14.04 -17.42
- --------------------------------------------------------------------------------
</TABLE>
* Reflects deduction of the maximum applicable contingent deferred sales charge
(CDSC) at the end of the period and assumes reinvestment of distributions. The
maximum CDSC of 4% declines over six years.
[Mountain Chart data]
Growth of $10,000+
<TABLE>
<CAPTION>
MSCI
Pioneer Emerging
Emerging Markets
Markets Free
Fund* Index
<S> <C> <C>
6/94 10000 10000
10989 11940
9644 11242
8235 9002
5/95 9209 9970
9399 9983
9199 9385
10626 10332
5/96 11517 10780
10859 10365
11011 10347
12462 11577
5/97 12870 11616
13029 10840
12069 8972
12516 9352
5/98 11669 8329
7386 5468
8112 6962
7959 6816
5/99 9857 8618
</TABLE>
+ Index comparison begins June 30, 1994. The MSCI Emerging Markets Free Index is
an unmanaged, capitalization-weighted measure of 1,009 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
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/99 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 5/31/99 11/30/98
$10.42 $8.47
Distributions per Share Income Short-Term Long-Term
(11/30/98-5/31/99) Dividends Capital Gains Capital Gains
- - -
</TABLE>
Investment Returns
- --------------------------------------------------------------------------------
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.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of May 31, 1999)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund -1.87% -1.87%
(1/31/96)
1 Year -14.61 -14.61
- --------------------------------------------------------------------------------
</TABLE>
* Assumes reinvestment of distributions. The 1% contingent deferred sales charge
(CDSC) applies to redemptions made within one year of purchase.
[Mountain Chart data]
Growth of $10,000
<TABLE>
<CAPTION>
MSCI
Pioneer Emerging
Emerging Markets
Markets Free
Fund* Index
<S> <C> <C>
1/96 10000 10000
10008 9841
5/96 10855 10268
10234 9872
11/96 10386 9855
11746 11027
5/97 12131 11064
12281 10325
11/97 11384 8546
11796 8908
5/98 10997 7934
6966 5209
11/98 7633 6631
7480 6492
5/99 9390 8209
</TABLE>
The MSCI Emerging Markets Free Index is an unmanaged, capitalization-weighted
measure of 1,009 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
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/99 CLASS Y SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 5/31/99 11/30/98
$11.01 $8.85
Distributions per Share Income Short-Term Long-Term
(11/30/98-5/31/99) Dividends Capital Gains Capital Gains
- - -
</TABLE>
Investment Returns
- --------------------------------------------------------------------------------
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.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of May 31, 1999)
If If
Period Held Redeemed
<S> <C> <C>
Life-of-Fund -20.73% -20.73%
(4/9/98)
1 Year -12.57 -12.57
- --------------------------------------------------------------------------------
</TABLE>
* Assumes reinvestment of distributions.
[Mountain Chart data]
Growth of $10,000+
<TABLE>
<CAPTION>
MSCI
Pioneer Emerging
Emerging Markets
Markets Free
Fund* Index
<S> <C> <C>
4/98 10000 10000
5/98 8765 8630
7567 7725
7922 7960
8/98 5578 5666
5369 6025
5634 6659
11/98 6155 7213
6176 7109
6072 6994
2/99 6065 7062
6802 7993
7505 8982
5/99 7658 8929
</TABLE>
+ Index comparison begins April 30, 1998. The MSCI Emerging Markets Free Index
is an unmanaged, capitalization-weighted measure of 1,009 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.
6
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 5/31/99
- --------------------------------------------------------------------------------
Emerging markets posted decisive gains during the six months ended May 31, 1999
- - two years after the onset of the "Asian flu." What's particularly reassuring
is the fact that the correction is widespread, with the most politically and
economically challenged countries delivering the most dramatic returns over the
last six months. The following discussion with Mark H. Madden, who leads your
Fund's investment team, explains the factors and events that influenced their
strategy and your Fund's performance.
Q: Did the Fund benefit from the rally?
A: It was a very successful period. The Fund posted total returns at net asset
value of 24.00%, 23.56% and 23.02% for Class A, B and C Shares, respectively.
A timely decision to increase holdings in Brazil and Indonesia helped the
Fund outpace the 19.01% average annual total return for the 183 emerging
markets funds tracked by Lipper, Inc. The MSCI Emerging Markets Free Index
rose 23.79%. (Lipper is an independent firm that measures mutual fund
performance.)
Q: What accounts for the renewed investor confidence in these markets?
A: Investors, sensing a genuine turnaround in the fortunes of emerging markets,
have made a wholesale shift back into emerging markets. The trigger is the
growing belief that the worst of the crisis is over and that Asian countries
are making a long-term commitment to reform and are restructuring their way
to a recovery. While we are upbeat about recent headway, we remain alert to
the risks of investing in emerging markets, including, among others, currency
fluctuations and social and economic instability.
Q: Why did Brazil perform so well?
A: After devaluing its currency - the real - in January, Brazil continues to
surprise observers with its resilience and ability to manage through a severe
recession. Gross domestic product grew a higher-than-expected 1% in the first
quarter, helped in large part by the agricultural sector. A weaker currency
is making its exports more
7
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 5/31/99 (continued)
- --------------------------------------------------------------------------------
competitive in the world economy. Local interest rates are declining, and
inflation remains in check. Anticipating only modest inflation as opposed to
a resurgence of "hyper-inflation", we began adding to holdings in early March
- overweighting investments in telecommunications and banking. Fund holdings
Tele Sudeste Celular Participacoes and Uniao de Bancos Brasileiros both rose
more than 50%.
Furthermore, the Fund also benefited from rising prices of Mexican stocks.
Grupo Televisa, the world's largest Spanish-language media company, initiated
a program of cost reductions and is now experiencing a recovery in ad
revenues, both of which are increasing profitability. Televisa received
another boost when financier Carlos Slim bought a significant stake in
another Fund holding Grupo Carso Global Telecom, which owns the Internet
provider Prodigy.
Q: How did the Fund benefit from Asia's rally?
A: Seeing stocks in Asia at 10-year low valuation and price levels, we began to
reposition the Fund's allocation to certain Asian markets. We trimmed
holdings in South Korea and Thailand, which had already achieved large gains
in stock prices and reallocated assets to Indonesia, Malaysia and the
Philippines. Crippled by political and economic instability for some time,
these three countries are beginning to show strong promise. Our decision
proved fortuitous, for these same countries delivered some of the best
performance for the later half of the period. On May 31, Pacific Rim holdings
represented 33% of equity assets.
Q: Which were the best performing Asian markets?
A: Indonesia was one of the best performing markets, climbing 73% in U.S. dollar
terms in the last three months of the period. Its currency appreciated and
gross domestic product is recovering. Telekomunikasi Indonesia, one of the
Fund's largest holdings, is a fixed-lined telecommunications operator
benefiting from the expectations of an
8
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
improving economy and stronger consumer confidence. PT Astra International,
an automobile and motorcycle manufacturer, is an example of a company taking
the right steps to reform and restructure its business practices to take
advantage of an improving economy. There is great opportunity as Indonesia
rebuilds, and we believe the stock market will trade higher as more signs of
progress appear over the next few months. The outcome of the parliamentary
elections in June will be critical to continued stability, both politically
and economically.
Malaysia and the Philippines also experienced economic improvement. Fund
holdings benefited from increased consumer spending, including fast-food
company Kentucky Fried Chicken (Malaysia) and Benpres Holdings (Philippines),
which owns the highest-rated TV station in the country and a fixed-line and
mobile telecommunications business.
In the case of South Korea, we cut back holdings being skeptical of the
reform measures taken by the giant Korean business conglomerates or chaebols.
In the short term this worked against the Fund as interest rates dropped and
local investors, looking for a greater rate of return, moved their money into
equities boosting the Korean stock market.
Q: Israel and India have been an important part of the Fund's portfolio. Did
they play a role in the Fund's outperformance?
A: Absolutely. Although we trimmed Indian holdings to increase investments in
Southeast Asia, these two countries remain important components of the Fund's
portfolio. Technology stocks, which form the core of the Fund's Israeli
holdings, did quite well. Check Point Software Technologies is the world's
leading maker of firewall security software designed to protect online
networks from incoming transmissions. In India, we trimmed software holdings
and increased positions in companies poised to rally as the economy improves,
such as oil refinery Bharat Petroleum.
9
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 5/31/99 (continued)
- --------------------------------------------------------------------------------
Q: What's in store for the rest of 1999?
A: To their credit, many emerging nations have made great strides in stabilizing
their economies. However, governments must continue to press the private
sector for further reform to boost the chances of full recovery.
We are very confident about the ability of emerging market economies to fully
recover over the next several years and we expect continued high volatility
in the stock markets over that period. Interestingly, our research shows that
local investors have been some of the first investors buying back into these
stock markets.
The fundamental shift in investors' outlook is an important milestone. In
1998, investors were defensive - refusing to buy stocks regardless of their
bargain prices. Today, investors appear ready to take limited risk. Sentiment
has clearly turned more positive.
10
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
CONVERTIBLE CORPORATE BOND - 1.9%
$ 1,740,000 Finlayson Global Corp. Ltd., 0.00%, 2/19/04 (144A)* $ 2,183,700
-----------
TOTAL CONVERTIBLE CORPORATE BOND
(Cost $1,762,744) $ 2,183,700
-----------
Shares
PREFERRED STOCKS - 6.9%
3,667,000 Banco Itau SA $ 1,874,762
40,600,000 Companhia Energetica de Minas Gerais 855,107
88,150 Lukoil Holding (A.D.R.) 550,938
71,250 Tele Norte Leste Participacoes (A.D.R.) 1,166,719
23,200 Telecomunicacoes Brasileiras (A.D.R.)* 1,937,200
1,000 Telesp Celular Participacoes SA (A.D.R.)* 23,312
40,000 Telesp Participacoes SA (A.D.R.)* 875,000
30,000 Tele Sudeste Celular Participacoes SA (A.D.R.)* 731,250
-----------
TOTAL PREFERRED STOCKS
(Cost $7,418,046) $ 8,014,288
-----------
COMMON STOCKS - 91.0%
Basic Materials - 3.2%
Agricultural Products - 0.3%
43,000 Grupo Industrial Maseca, SA de CV (A.D.R.) $ 408,500
-----------
Chemicals (Specialty) - 0.0%
21 Reliance Industries Ltd. $ 76
-----------
Construction (Cement & Aggregates) - 2.9%
340,000 Cemex, SA (Class B) $ 1,518,447
539,817 Siam City Cement Co., Ltd.* 1,804,240
-----------
$ 3,322,687
-----------
Iron & Steel - 0.0%
50 Tata Iron & Steel Co., Ltd. $ 118
-----------
Total Basic Materials $ 3,731,381
-----------
Capital Goods - 0.8%
Electrical Equipment - 0.6%
155,000 Bharat Heavy Electricals Ltd.* $ 686,727
-----------
Machinery (Diversified) - 0.2%
2,000,000 PT Komatsu Indonesia Tbk (Local Shares) $ 233,846
-----------
Total Capital Goods $ 920,573
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Communication Services - 16.1%
Cellular/Wireless Telecommunications - 5.4%
60,800 Ceske Radiokomunikace AS (G.D.R.)* $ 2,249,600
140,575 Grupo Iusacell SA (Series L) (A.D.R.)* 1,739,616
535,000 Smartone Telecommunications Holdings Ltd. 1,659,187
23,400 Stet Hellas Telecomm SA (A.D.R.)* 532,350
-----------
$ 6,180,753
-----------
Telephone - 10.7%
49,000 Embratel Participacoes (A.D.R.)* $ 673,750
401,300 Grupo Carso Global Telecom* 2,214,635
37,450 Hellenic Telecommunication Organization SA 810,515
150,000 Mahanagar Telephone Nigam Ltd. 597,978
51,000 PT Indosat Tbk (Local Shares) (A.D.R.) 1,010,438
119,000 Rostelecom (A.D.R.) 795,812
49,500 Telefonica de Argentina (Class B) (A.D.R.) 1,602,562
370,000 Telekom Malaysia Bhd. 1,265,789
300,000 Telekomunikasi Indonesia (A.D.R.) 2,793,750
56,000 Videsh Sanchar Nigam Ltd. (G.D.R.) 637,000
-----------
$12,402,229
-----------
Total Communication Services $18,582,982
-----------
Consumer Cyclicals - 9.0%
Auto Parts & Equipment - 0.1%
200,000 Mirgor Sacifia (Class C) (A.D.R.) $ 160,000
-----------
Automobiles - 3.0%
17,200,000 Koc Holdings AS $ 1,330,272
7,000,000 PT Astra International Tbk* 2,153,846
-----------
$ 3,484,118
-----------
Leisure Time (Products) - 1.7%
47,000 Bajaj Auto Ltd. $ 598,425
660,000 Berjaya Sports Toto Bhd. 1,380,789
-----------
$ 1,979,214
-----------
Lodging (Hotels) - 0.8%
125,000 The Indian Hotels Co. Ltd. (G.D.R.) $ 890,625
-----------
Retail (Department Stores) - 2.5%
176,000 Edgars Stores Ltd. $ 1,327,300
15,000,000 PT Matahari Putra Prima (Local Shares)* 1,384,615
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Retail (Department Stores) (continued)
234,000 Ramayana Lestari Sentosa (Local Shares) $ 126,720
-----------
$ 2,838,635
-----------
Retail (Specialty) - 0.9%
641,000 Cifra, SA de CV (Series C)* $ 1,041,584
-----------
Textiles (Specialty) - 0.0%
347,700 Asia Fiber Co., Ltd.* $ 30,927
-----------
Total Consumer Cyclicals $10,425,103
-----------
Consumer Staples - 14.5%
Broadcasting (Television/Radio/Cable) - 8.6%
13,980,000 Benpres Holdings Corp.* $ 3,306,702
244,370 Central European Media Enterprises Ltd.* 1,466,220
468,300 Grupo Radio Centro SA de CV (A.D.R.)* 2,400,038
57,000 Grupo Televisa SA (G.D.R.)* 2,383,313
75,000 TV Azteca, SA de CV (A.D.R.)* 379,688
-----------
$ 9,935,961
-----------
Entertainment - 0.4%
150,000 Corporacion Interamericana de Entretenimiento SA
(Series B)* $ 475,217
-----------
Foods - 2.7%
33,000 Cheil Jedang Corp. $ 1,794,915
500,000 Daya Guna Samudera (Local Shares) 326,154
247,875 Thai Union Frozen Products Public Co. Ltd. 975,465
-----------
$ 3,096,534
-----------
Household Products (Non-durables) - 0.5%
17,000,000 Arcelik AS* $ 584,357
-----------
Restaurants - 2.3%
2,000,000 Kentucky Fried Chicken Bhd. $ 2,657,895
-----------
Total Consumer Staples $16,749,964
-----------
Energy - 2.4%
Oil & Gas (Exploration/Production) - 0.2%
76,950 Oil & Natural Gas Commission Ltd. $ 255,784
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Oil & Gas (Refining & Marketing) - 2.2%
43,989 SK Corp. $ 923,663
125,000 Bharat Petroleum Corp., Ltd. 694,735
151,660 Hindustan Petroleum Corp., Ltd. 779,099
28,640 Hindustan Petroleum Corp., Ltd. (New Shares)* 147,128
-----------
$ 2,544,625
-----------
Total Energy $ 2,800,409
-----------
Financial - 16.3%
Banks (Major Regional) - 12.4%
40,000,000 Akbank T.A.S. $ 658,016
40,000,000 Akbank T.A.S. (Receipts)* 607,187
68,800 Banco de Galicia y Buenos Aires SA de CV (A.D.R.) 1,440,500
64,900 Banco Frances Del Rio Plata SA (A.D.R.) 1,366,956
624,000 Grupo Financiero Banamex Accival (Class O)* 1,243,536
96,300 Kookmin Bank 1,457,676
141,900 Overseas-Union Bank Ltd. 728,854
20,000,000 PT Bank Internasional Indonesia (Local Shares)* 553,846
2,970,000 PT Lippo Bank Tbk* 173,631
132,200 Shinhan Bank 1,287,608
61,600,000 Turkiye Is Bankasi 1,209,964
96,000 Uniao de Bancos Brasileiros SA (G.D.R.) 2,166,000
64,503,520 Yapi ve Kredi Bankasi AS 823,547
51,602,816 Yapi ve Kredi Bankasi AS (Receipts)* 608,158
-----------
$14,325,479
-----------
Financial (Diversified) - 3.2%
4,685,970 Grupo Financiero Bancomer (B Shares) $ 1,589,925
28,500 Housing Development Finance Corp. Ltd. 1,456,906
277,400 Pakistan Investment Fund Inc. 606,813
-----------
$ 3,653,644
-----------
Insurance (Property/Casualty) - 0.0%
144,100 Ayudhya Jardine CMG Life Assurance Public Co., Ltd.* $ 39,812
-----------
Investment Banking/Brokerage - 0.7%
419,551,500 Global Menkul Degerler AS $ 813,793
-----------
Total Financial $18,832,728
-----------
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare - 0.1%
Healthcare (Drugs/Major Pharmaceuticals) - 0.1%
1,050 Cipla Ltd. $ 32,291
-----------
Total Healthcare $ 32,291
-----------
Technology - 22.5%
Communications Equipment - 3.2%
42,597 ECI Telecommunications Ltd. $ 1,474,921
9,000 Gilat Satellite Networks Ltd.* 474,750
70,700 Nice Systems Ltd. (A.D.R.)* 1,802,850
-----------
$ 3,752,521
-----------
Computers (Networking) - 0.6%
300,000 D-Link Corp.* $ 706,422
-----------
Computers (Software & Services) - 12.5%
42,000 Check Point Software Technologies Ltd.* $ 1,858,500
75,739 Formula Systems Ltd.* 1,746,176
29,700 Mastek Ltd. 470,146
30,000 NIIT Ltd. 1,265,691
20,000 NIIT Ltd. (New Shares)* 842,631
61,000 Pacific Internet Ltd.* 2,760,250
200 Pentafour Software & Exports Ltd. 4,765
54,000 Satyam Computer Services 1,688,285
227,500 Tecnomatix Technologies Ltd.* 3,810,625
-----------
$14,447,069
-----------
Electronics (Component Distributors) - 1.8%
150,400 KCE Electronics Public Co., Ltd.* $ 220,938
35,000 L.G. Electronics 667,032
300,000 Phoenixtec Power Co., Ltd.* 564,220
38,000 Samsung Corp.* 592,824
-----------
$ 2,045,014
-----------
Electronics (Semiconductors) - 2.0%
62,000 Daeduck Industries $ 711,051
37,000 Orbotech Ltd.* 1,581,750
-----------
$ 2,292,801
-----------
Photography/Imaging - 0.6%
3,000,000 PT Modern Photo Tbk (Local Shares)* $ 636,923
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Services (Computer Systems) - 1.8%
130,000 Datacraft Asia Ltd. $ 462,800
417,000 Dimension Data Holdings Ltd.* 1,672,764
------------
$ 2,135,564
------------
Total Technology $ 26,016,314
------------
Transportation - 1.1%
Railroads - 1.1%
730,000 Malaysia International Shipping Bhd. $ 1,277,500
------------
Total Transportation $ 1,277,500
------------
Utilities - 5.0%
Electric Companies - 3.9%
50,000 BSES Ltd. (G.D.R.) $ 493,750
83,000,000 Centrais Electricas Brasileiras SA 1,637,969
310,000 Mosenergo (A.D.R.) 820,982
300,000 Tata Power Co. Ltd.* 491,632
173,100 Unified Energy Systems (G.D.R.)* 1,109,968
------------
$ 4,554,301
------------
Power Producers (Independent) - 1.1%
1,000,000 First Philippine Holdings Corp. $ 1,261,498
------------
Total Utilities $ 5,815,799
------------
TOTAL COMMON STOCKS
(Cost $99,963,108) $105,185,044
------------
WARRANTS - 0.2%
629,000 Siam Commercial Bank, 5/10/02* $ 220,404
------------
TOTAL WARRANTS
(Cost $0) $ 220,404
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $109,143,898) (a) (b) (c) $115,603,436
============
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
* Non-income producing security.
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At May 31, 1999, the
value of these securities amounted to $2,183,700 or 1.8% of total net
assets.
(a) Distribution of investments by country of issue, as percentage of total
equity holdings, is as follows:
<TABLE>
<S> <C>
Mexico 13.3%
Israel 11.0
India 10.4
Brazil 10.3
Indonesia 8.1
South Korea 6.4
Turkey 5.8
Malaysia 5.7
Singapore 5.3
Argentina 4.0
Philippines 4.0
Czech Republic 3.2
Thailand 2.9
Russia 2.8
South Africa 2.6
Hong Kong 1.4
Greece 1.2
Taiwan 1.1
Pakistan 0.5
-----
100.0%
=====
</TABLE>
(b) At May 31, 1999, the net unrealized gain on investments based on cost for
federal income tax purposes of $109,345,317 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $21,836,251
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (15,578,132)
-----------
Net unrealized gain $ 6,258,119
===========
</TABLE>
(c) At November 30, 1998, the Fund had a capital loss carryforward of
$55,406,689 which will expire in 2006 if not utilized
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended May 31, 1999 aggregated $110,032,265 and $141,738,611,
respectively.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 5/31/99
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $109,143,898) $115,603,436
Cash 1,918,824
Foreign currencies, at value 1,438,703
Receivables -
Investment securities sold 8,244,987
Fund shares sold 3,535,542
Dividends, interest and foreign taxes withheld 596,000
Other 1,460
------------
Total assets $131,338,952
------------
LIABILITIES:
Payables -
Investment securities purchased $ 4,510,090
Fund shares repurchased 285,267
Forward foreign currency portfolio hedge contracts, open--net 460,046
Forward foreign currency portfolio hedge contracts, closed--net 1,061,830
Forward foreign currency settlement contracts--net 959
Due to affiliates 265,491
Accrued expenses 204,139
Reserve for repatriation taxes 662,998
Line of credit 1,900,000
------------
Total liabilities $ 9,350,820
------------
NET ASSETS:
Paid-in capital $183,284,349
Accumulated net investment loss (1,391,764)
Accumulated net realized loss on investments and foreign currency
transactions (65,182,770)
Net unrealized gain on investments 5,796,540
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (518,223)
------------
Total net assets $121,988,132
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $70,775,197/6,494,153 shares) $ 10.90
============
Class B (based on $40,905,865/3,899,410 shares) $ 10.49
============
Class C (based on $8,697,704/834,724 shares) $ 10.42
============
Class Y (based on $1,609,366/146,150 shares) $ 11.01
============
MAXIMUM OFFERING PRICE:
Class A $ 11.56
============
</TABLE>
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended 5/31/99
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $112,154) $ 1,345,735
Interest (net of foreign taxes withheld of $352) 106,904
-----------
Total investment income $ 1,452,639
-----------
EXPENSES:
Management fees $ 723,684
Transfer agent fees
Class A 206,791
Class B 116,559
Class C 54,206
Class Y 171
Distribution fees
Class A 88,101
Class B 177,674
Class C 42,086
Administrative fees 37,610
Custodian fees 148,643
Registration fees 12,809
Professional fees 32,758
Printing 11,538
Fees and expenses of nonaffiliated trustees 11,838
Miscellaneous 10,625
-----------
Total expenses $ 1,675,093
Less fees paid indirectly (16,521)
-----------
Net expenses $ 1,658,572
-----------
Net investment loss $ (205,933)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments $(4,871,222)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (1,402,977) $(6,274,199)
----------- -----------
Change in net unrealized loss from:
Investments (including reserve for repatriation taxes
of $662,998) $29,283,171
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 529,641 $29,812,812
----------- -----------
Net gain on investments and foreign currency
transactions $23,538,613
-----------
Net increase in net assets resulting from operations $23,332,680
===========
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 5/31/99 and the Year Ended 11/30/98
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
FROM OPERATIONS: 5/31/99 11/30/98
<S> <C> <C>
Net investment loss $ (205,933) $ (508,125)
Net realized loss on investments and foreign currency
transactions (6,274,199) (60,156,630)
Change in net unrealized loss on investments and
foreign currency transactions 29,812,812 (9,788,485)
------------ ------------
Net increase (decrease) in net assets resulting
from operations $ 23,332,680 $(70,453,240)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain:
Class A ($0.00 and $1.40 per share, respectively) $ -- $ (9,049,452)
Class B ($0.00 and $1.40 per share, respectively) -- (6,941,023)
Class C ($0.00 and $1.40 per share, respectively) -- (1,316,526)
Class Y ($0.00 and $0.15 per share, respectively) -- (19,972)
------------ ------------
Total distributions to shareholders $ -- $(17,326,973)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 99,624,287 $192,933,742
Reinvestment of distributions -- 12,603,272
Cost of shares repurchased (126,582,742) (162,719,585)
------------ ------------
Net increase (decrease) in net assets resulting
from fund share transactions $(26,958,455) $ 42,817,429
------------ ------------
Net decrease in net assets $ (3,625,775) $(44,962,784)
NET ASSETS:
Beginning of period 125,613,907 170,576,691
------------ ------------
End of period (including accumulated net investment
loss of $1,391,764 and $1,185,831, respectively) $121,988,132 $125,613,907
============ ============
</TABLE>
<TABLE>
<CAPTION>
CLASS A '99 Shares '99 Amount '98 Shares '98 Amount
<S> <C> <C> <C> <C>
Shares sold 9,047,420 $ 87,545,879 13,942,933 $ 160,340,967
Reinvestment of distributions -- -- 579,650 7,318,213
Less shares repurchased (11,224,112) (107,149,683) (11,929,436) (126,018,352)
----------- ------------- ----------- -------------
Net increase (decrease) (2,176,692) $ (19,603,804) 2,593,147 $ 41,640,828
=========== ============= =========== =============
CLASS B
Shares sold 1,061,945 $ 10,240,255 1,676,837 $ 19,436,392
Reinvestment of distributions -- -- 377,852 4,655,749
Less shares repurchased (1,395,523) (12,725,584) (2,806,525) (30,267,194)
----------- ------------- ----------- -------------
Net decrease (333,578) $ (2,485,329) (751,836) $ (6,175,053)
=========== ============= =========== =============
CLASS C
Shares sold 159,888 $ 1,516,692 1,081,822 $ 10,948,240
Reinvestment of distributions -- -- 49,729 609,339
Less shares repurchased (760,535) (6,446,833) (600,103) (6,206,936)
----------- ------------- ----------- -------------
Net increase (decrease) (600,647) $ (4,930,141) 531,448 $ 5,350,643
=========== ============= =========== =============
CLASS Y*
Shares sold 31,996 $ 321,461 162,101 $ 2,208,143
Reinvestment of distributions -- -- 1,834 19,971
Less shares repurchased (26,126) (260,642) (23,655) (227,103)
----------- ------------- ----------- -------------
Net increase 5,870 $ 60,819 140,280 $ 2,001,011
=========== ============= =========== =============
</TABLE>
*Class Y shares were first publicly offered on April 9, 1998.
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
5/31/99 11/30/98
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 8.79 $ 14.42
------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.00 $ 0.00
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 2.11 (4.23)
------- -------
Net increase (decrease) from investment operations $ 2.11 $ (4.23)
Distributions to shareholders:
Net investment income - -
Net realized gain - (1.40)
------- -------
Net increase (decrease) in net asset value $ 2.11 $ (5.63)
------- -------
Net asset value, end of period $ 10.90 $ 8.79
======= =======
Total return* 24.00% (32.19)%
Ratio of net expenses to average net assets 2.55%**+ 2.26%+
Ratio of net investment income (loss) to average net assets (0.05)%**+ 0.07%+
Portfolio turnover rate 194%** 195%
Net assets, end of period (in thousands) $70,775 $76,257
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.55%** 2.27%
Net investment income (loss) (0.05)%** 0.06%
Ratios assuming waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.51%** 2.25%
Net investment income (loss) (0.01)%** 0.08%
<CAPTION>
Year Ended Year Ended Year Ended 6/23/94 to
11/30/97 11/30/96 11/30/95 11/30/94(a)
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 13.94 $ 11.56 $ 12.24 $ 12.50
------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.05) $ (0.07) $ 0.04 $ 0.08
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 1.40 2.45 (0.53) (0.34)
------- ------- ------- -------
Net increase (decrease) from investment operations $ 1.35 $ 2.38 $ (0.49) $ (0.26)
Distributions to shareholders:
Net investment income - - (0.06) -
Net realized gain (0.87) - (0.13) -
------- ------- ------- -------
Net increase (decrease) in net asset value $ 0.48 $ 2.38 $ (0.68) $ (0.26)
------- ------- ------- -------
Net asset value, end of period $ 14.42 $ 13.94 $ 11.56 $ 12.24
======= ======= ======= =======
Total return* 10.37% 20.59% (4.07)% (2.08)%
Ratio of net expenses to average net assets 2.23%+ 2.28%+ 2.27%+ 2.25%**
Ratio of net investment income (loss) to average net assets (0.40)%+ (0.61)%+ 0.24%+ 1.85%**
Portfolio turnover rate 140% 143% 247% 259%**
Net assets, end of period (in thousands) $87,628 $56,465 $15,411 $17,067
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.25% 3.00% 3.95% 4.13%**
Net investment income (loss) (0.42)% (1.33)% (1.44)% (0.03)%**
Ratios assuming waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.19% 2.25% 2.25% -
Net investment income (loss) (0.36)% (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 sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
5/31/99 11/30/98
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 8.49 $ 14.09
------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.06) $ (0.12)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 2.06 (4.08)
------- -------
Net increase (decrease) from investment operations $ 2.00 $ (4.20)
Distributions to shareholders:
Net investment income - -
Net realized gain - (1.40)
------- -------
Net increase (decrease) in net asset value $ 2.00 $ (5.60)
------- -------
Net asset value, end of period $ 10.49 $ 8.49
======= =======
Total return* 23.56% (32.79)%
Ratio of net expenses to average net assets 3.37%**+ 3.09%+
Ratio of net investment income (loss) to average net assets (0.84%)**+ (0.84)%+
Portfolio turnover rate 194%** 195%
Net assets, end of period (in thousands) $40,906 $35,954
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 3.37%** 3.10%
Net investment income (loss) (0.84)%** (0.85)%
Ratios assuming waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 3.35%** 3.08%
Net investment loss (0.82)%** (0.83)%
<CAPTION>
Year Ended Year Ended Year Ended 6/23/94 to
11/30/97 11/30/96 11/30/95 11/30/94(a)
<S> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 13.73 $ 11.47 $12.19 $12.50
------- ------- ------ ------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.14) $ (0.03) $(0.04) $ 0.02
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 1.37 2.29 (0.52) (0.33)
------- ------- ------ ------
Net increase (decrease) from investment operations $ 1.23 $ 2.26 $(0.56) $(0.31)
Distributions to shareholders:
Net investment income - - (0.03) -
Net realized gain (0.87) - (0.13) -
------- ------- ------ ------
Net increase (decrease) in net asset value $ 0.36 $ 2.26 $(0.72) $(0.31)
------- ------- ------ ------
Net asset value, end of period $ 14.09 $ 13.73 $11.47 $12.19
======= ======= ====== ======
Total return* 9.61% 19.70% (4.62)% (2.48)%
Ratio of net expenses to average net assets 2.94%+ 3.00%+ 3.00%+ 3.33%**
Ratio of net investment income (loss) to average net assets (1.10)%+ (1.47)%+ 0.47%+ 0.77%**
Portfolio turnover rate 140% 143% 247% 259%**
Net assets, end of period (in thousands) $70,218 $39,893 $5,658 $4,319
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.95% 3.66% 4.57% 5.21%**
Net investment income (loss) (1.11)% (2.13)% (2.05)% 1.11%**
Ratios assuming waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.90% 2.96% 2.96% -
Net investment loss (1.06)% (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 sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended Year Ended 1/31/96 to
5/31/99 11/30/98 11/30/97 11/30/96
<S> <C> <C> <C> <C>
CLASS C
Net asset value, beginning of period $ 8.47 $ 14.08 $ 13.73 $13.22
------ ------- ------- ------
Increase (decrease) from investment
operations:
Net investment loss $(0.19) $ (0.08) $ (0.13) $(0.09)
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions 2.14 (4.13) 1.35 0.60
------ ------- ------- ------
Net increase (decrease) from
investment operations $ 1.95 $ (4.21) $ 1.22 $ 0.51
Distributions to shareholders:
Net realized gain - (1.40) (0.87) -
------ ------- ------- ------
Net increase (decrease) in net asset
value $ 1.95 $ (5.61) $ 0.35 $ 0.51
------ ------- ------- ------
Net asset value, end of period $10.42 $ 8.47 $ 14.08 $13.73
====== ======= ======= ======
Total return* 23.02 % (32.90)% 9.53% 3.86%
Ratio of net expenses to average net
assets 4.01%**+ 3.32%+ 2.89%+ 2.91%**+
Ratio of net investment loss to
average net assets (1.44)%**+ (1.08)%+ (1.09)%+ (1.51)%**+
Portfolio turnover rate 194%** 195% 140% 143%
Net assets, end of period
(in thousands) $8,698 $12,162 $12,730 $5,566
Ratios assuming no waiver of
management fees by PIM and no
reduction for fees paid indirectly:
Net expenses 4.01%** 3.33% 2.90% 3.48%**
Net investment loss (1.44)%** (1.09)% (1.10)% (2.08)%**
Ratios assuming waiver of
management fees by PIM and
reduction for fees paid indirectly:
Net expenses 3.98%** 3.31% 2.85% 2.86%**
Net investment loss (1.41)%** (1.07)% (1.05)% (1.46)%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 23
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended 4/9/98 to
5/31/99 11/30/98
<S> <C> <C>
CLASS Y
Net asset value, beginning of period $ 8.85 $14.55
------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.04 $ 0.00
Net realized and unrealized gain (loss) on investments
and foreign currency transactions 2.12 (5.55)
------ ------
Net increase (decrease) from investment
operations $ 2.16 $(5.55)
Distributions to shareholders:
Net realized gain - (0.15)
------ ------
Net increase (decrease) in net asset value $ 2.16 $(5.70)
------ ------
Net asset value, end of period $11.01 $ 8.85
====== ======
Total return* 24.41% (38.32)%
Ratio of net expenses to average net assets 1.74%**+ 1.75%**+
Ratio of net investment income to average net assets 0.76%**+ 0.06%**+
Portfolio turnover rate 194%** 195%
Net assets, end of period (in thousands) $1,609 $1,241
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.72%** 1.75%**
Net investment income 0.78%** 0.06%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
24 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/99
- --------------------------------------------------------------------------------
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.
The Fund offers four classes of shares - Class A, Class B, Class C and Class Y
shares. Each class of shares represent an interest in the same portfolio of
investments of the Fund and have equal rights to voting, redemptions, dividends
and liquidation, except that the level of transfer agent and distribution fees
may differ among classes. Class A, Class B, and Class C shareholders have
exclusive voting rights with respect to the distribution plan for each class.
There is no distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to, among
other things, make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and
expenses during the reporting periods. Actual results could differ from those
estimates. The following is a summary of significant accounting policies
consistently followed by the Fund, which are in conformity with those generally
accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded on trade date. The net asset value is
computed once daily, on each day the New York Stock Exchange is open, as of
the close of regular trading on the Exchange. In computing the net asset
value, securities are valued at the last sale price on the principal exchange
where they are traded. Securities that have not traded on the date of
valuation, or securities for which sale prices are not generally reported,
are valued at the mean between the last bid and asked prices. Securities for
which market quotations are not readily available are valued at their fair
values as determined by, or under the direction of, the Board of Trustees.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the New York Stock Exchange. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Dividend income is recorded on the ex-dividend
date, except that certain dividends from foreign securities where the
ex-dividend date may have passed are recorded as soon as the Fund is informed
of the ex-dividend data in the exercise of
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Pioneer Emerging Markets Fund
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NOTES TO FINANCIAL STATEMENTS 5/31/99 (continued)
- --------------------------------------------------------------------------------
reasonable diligence. Interest income is recorded on the accrual basis, net
of unrecoverable foreign taxes withheld at the applicable country rates.
Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities that have
the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
The Fund's investments in emerging markets or countries with limited or
developing markets may subject the Fund to a 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 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
26
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Pioneer Emerging Markets Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
portfolio hedge is offset by entry into a closing transaction or extinguished
by delivery of the currency. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
the contract and from unanticipated movements in the value of foreign
currencies relative to the U.S. dollar (see Note 6).
D. Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on the recognition of capital gains
and/or the repatriation of foreign currencies in certain countries. During
the six months ended May 31, 1999, the Fund paid no such taxes.
In determining the daily net asset value, the Fund estimates the reserve for
such taxes, if any, associated with investments in certain countries. The
estimated reserve for capital gains is based on the net unrealized
appreciation on certain portfolio securities, the holding period of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. As of May 31, 1999, the Fund had no reserve related
to capital gains. The estimated reserve for repatriation of foreign
currencies is based on principal balances and/or unrealized appreciation of
applicable securities, the holding period of such investments and the related
tax rates and other such factors. As of May 31, 1999, the Fund had a reserve
of $662,998 related to taxes on the repatriation of foreign currencies.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
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
27
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Pioneer Emerging Markets Fund
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NOTES TO FINANCIAL STATEMENTS 5/31/99 (continued)
- --------------------------------------------------------------------------------
an indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $11,375
in underwriting commissions on the sale of fund shares during the six months
ended May 31, 1999.
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. Class Y shares are not subject to a distribution plan.
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, Class C and Class Y shares can bear different
transfer agent and distribution fees.
G. Repurchase Agreeements
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 safe-keeping in the customer-only
account of the Fund's custodian, or subcustodians. The Fund's investment
adviser, Pioneer Investment Management, Inc. (PIM), is responsible for
determining that the value of the collateral remains at least equal to the
repurchase price.
2. Management Agreement
PIM manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 1.25% of the Fund's
average daily net assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At May 31, 1999, $140,757
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Pioneer Emerging Markets Fund
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- --------------------------------------------------------------------------------
was payable to PIM related to management fees, administrative 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 $65,430 in transfer agent fees payable to PSC at May 31, 1999.
4. Distribution Plans
The Fund adopted Plans of Distribution with respect to Class A, Class B, and
Class C 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 $59,304
in distribution fees payable to PFD at May 31, 1999.
In addition, redemptions of each class of shares (except Y 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 CDSCs are paid to PFD. For the six months ended May 31, 1999, CDSCs in
the amount of $121,840 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 six months ended May 31, 1999,
the Fund's expenses were reduced by $16,521 under such arrangements.
29
<PAGE>
Pioneer Emerging Markets Fund
NOTES TO FINANCIAL STATEMENTS 5/31/99 (continued)
6. Forward Foreign Currency Contracts
At May 31, 1999, the Fund had entered into various contracts that obligate the
Fund to deliver currencies at specified future dates. At the maturity of a
contract, the Fund must make delivery of the foreign currency. Alternatively,
prior to the settlement date of a portfolio hedge, the Fund may close out such
contracts by entering into an offsetting hedge contract. Open portfolio hedges
at May 31, 1999 were as follows:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Contracts In Exchange Settlement Net Unrealized
Currency to Deliver For Date Value Loss
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
THB (94,793,881) $(2,473,099) 11/2/99 $(2,538,011) $ (64,912)
KRW (3,501,096,750) (2,556,291) 11/2/99 (2,951,425) (395,134)
----------- ----------- ---------
$(5,029,390) $(5,489,436) $(460,046)
=========== =========== =========
- ---------------------------------------------------------------------------------------------------
</TABLE>
Included in accumulated net realized loss on forward foreign currency contracts
and other assets and liabilities denominated in foreign currencies is
$1,061,830, which represents the realized loss on closed but unsettled portfolio
hedges totaling $22,210,128.
At May 31, 1999, the gross forward foreign currency settlement contracts
receivable and payable were $475,741 and $476,700, respectively, resulting in a
net payable of $959.
7. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $50 million committed, unsecured revolving
line of credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of $50 million or the limits set
by its prospectus for borrowings. Interest on collective borrowings of up to $25
million is payable at the Federal Funds Rate plus 3/8% on an annualized basis,
or at the Federal Funds Rate plus 1/2% if the borrowing exceeds $25 million at
any one time. The Funds pay an annual commitment fee for this facility. The
commitment fee is allocated among such Funds based on their respective borrowing
limits.
The average daily amount of borrowings outstanding during the six months ended
May 31, 1999 was $199,830. The average daily shares outstanding during the
period were 12,553,814 resulting in an average borrowing per share of $0.02. The
related weighted average annualized interest rate for the period was 5.23%, and
the total interest expense on such borrowings was $5,682.
30
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Pioneer Emerging Markets Fund
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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To the Shareowners 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 (the Fund) as of May 31, 1999, and
the related statement of operations, the statements of changes in net assets,
and the financial highlights for the periods presented. These financial
statements and the financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of May
31, 1999 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Emerging Markets Fund as of May 31, 1999, the results of its operations,
the changes in its net assets, and the financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
July 9, 1999
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<PAGE>
Pioneer Emerging Markets Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Officers Trustees
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham Norman Kurland, Senior Vice President
John W. Kendrick Mark H. Madden, Vice President
Marguerite A. Piret Eric W. Reckard, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
32
<PAGE>
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THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds Income Funds
United States Taxable
Pioneer Capital Growth Fund Pioneer America Income Trust
Pioneer Growth Shares Pioneer Bond Fund
Pioneer Micro-Cap Fund Pioneer Short-Term Income Trust
Pioneer Mid-Cap Fund Pioneer Strategic Income Fund
Pioneer Small Company Fund
Tax-Free
International/Global Pioneer Tax-Free Income Fund
Pioneer Emerging Markets Fund
Pioneer Europe Fund Money Market Fund
Pioneer Indo-Asia Fund Pioneer Cash Reserves Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
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<PAGE>
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PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
- --------------------------------------------------------------------------------
Your investment representative can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-800-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 13-digit account number and four-digit personal identification number at
hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as you
meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need to
do is authorize a set amount of money to be moved out of your bank account into
the Pioneer fund of your choice. Investomatic also allows you to change the
dollar amount, frequency and investment date right over the phone. By putting
aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing Pioneer
to deduct from participating employees' paychecks. You specify the dollar amount
you want to invest into the Pioneer fund(s) of your choice.
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<PAGE>
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Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds you
wish to invest in. You choose the amounts and dates for Pioneer to sell shares
of your original fund and use the proceeds to buy shares of the other funds you
have chosen. Over time, your investment will be shifted out of the original
fund. (Automatic Exchange is available for originating accounts with a balance
of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals. You
decide the frequency and the day of the month you want. Pioneer will send the
proceeds by check to the address you designate, or electronically to your bank
account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available for accounts with a value of $10,000 or more.)
35
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RETIREMENT PLANS FROM PIONEER
- --------------------------------------------------------------------------------
Pioneer has a long history of helping people work toward their retirement goals,
offering plans suited to the individual investor and businesses of all sizes.
For more information on Pioneer retirement plans, contact your investment
professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 70 with earned
income to contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
New in 1998, $2,000 maximum annual contributions are not tax-deductible.
Earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $10,000 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match Plan for Employees) IRA Plan
Businesses with 100 or fewer eligible employees can establish a plan; it
resembles the traditional 401(k), but with less testing and lower administration
costs. Employees can make pre-tax contributions of up to $6,000 per year, and an
employer contribution is required.
403(b) Plan
Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is available only to
employees of public schools, not-for-profit hospitals and other tax-exempt
organizations. A 403(b) plan lets employees set aside a portion of their salary,
before taxes, through payroll deduction.
Most retirement plan withdrawals must meet specific
conditions to avoid penalties.
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Simplified Employee Pension Plan (SEP)
SEPs let self-employed people and small-business owners make tax-deductible
contributions of up to 15% of their income. Generally, employers must contribute
the same percentage of pay for themselves and any eligible employees;
contributions are made directly to employees' IRAs. SEPs are easy to administer
and can be an especially good choice for firms with few or no employees.
Profit Sharing Plan
Profit sharing plans offer companies considerable flexibility, allowing them to
decide each year whether a contribution will be made and how much, up to 15% of
each participant's pay. These plans can include provisions for loans and vesting
schedules.
Age-Weighted Profit Sharing Plan
Like traditional profit sharing plans, employer contributions are flexible, but
age-weighted plans allocate contributions based on both age and salary. Age-
weighted plans are designed for employers who want to maximize their own
contributions while keeping contributions to employees affordable.
Money Purchase Pension Plan (MPP)
Money purchase plans are similar to profit sharing plans, but allow for higher
annual contributions - up to 25% of pay. MPPs aren't as flexible as profit
sharing plans; a fixed percentage of pay must be contributed each year,
determined when the plan is established. Businesses often set up both MPPs and
profit sharing plans.
Most retirement plan withdrawals must meet specific
conditions to avoid penalties.
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225 - 4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer logo] Pioneer Investment Management, Inc.
60 State Street
Boston, Massachusetts 02109
www.pioneerfunds.com
0799 - 6711
(C) Pioneer Funds Distributor, Inc.
[Recycle bug] Printed on Recycled Paper
