<PAGE>
[LOGO] PIONEER
INVESTMENTS-Registered Trademark-
PIONEER
EMERGING MARKETS
FUND
ANNUAL REPORT 11/30/00
<PAGE>
TABLE OF CONTENTS
--------------------------------------------------------------------------------
Letter from the President 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 7
Schedule of Investments 10
Financial Statements 22
Notes to Financial Statements 29
Report of Independent Public Accountants 35
Results of Shareowner Meeting 36
Trustees, Officers and Service Providers 37
<PAGE>
PIONEER EMERGING MARKETS FUND
LETTER FROM THE PRESIDENT 11/30/00
DEAR SHAREOWNER,
--------------------------------------------------------------------------------
The year 2000, the last year of the old millennium, is ending on an
historically unsettling note. The bewildering final days of the presidential
election have come on top of a period of increased market volatility, leaving
us all feeling unsettled. We at Pioneer are convinced that the market's
volatility has its roots not in politics but in the signs of a slowing economy
and in the sudden realization by investors that some market valuations, notably
technology, had become irrational. As the new millennium unfolds we expect
investors to get back to work assessing the policies of the new administration,
evaluating the prospects for a growing economy and identifying undervalued
companies.
As seasoned investors we treat periods of turmoil as periods of opportunity,
looking for the few significant facts and trends that hide well behind the
clutter of daily events. I think that you should do the same thing. This is a
good year, and a good time of year, to evaluate your retirement program
contributions, to compare a Roth IRA with a traditional IRA and to reassess
your investment allocations in light of current market conditions. A
successful investment program requires not only money, but time and planning.
Your investment professional is your best guide to making these important
decisions.
AN IMPORTANT ANNOUNCEMENT FROM PIONEER
I'm very happy to report that, on October 24, 2000, Pioneer Investment
Management, Inc. became a wholly owned subsidiary of UniCredito Italiano
S.p.A., one of Italy's largest and most successful banking groups. Early in
2001 all of UniCredito's investment operations will be combined to form
Pioneer Global Asset Management S.p.A., which will manage over $110 billion
for global individual and institutional clients under the name Pioneer
Investments-Registered Trademark-. The new Pioneer Global will bring to
Pioneer greater analytical resources that complement our investment skills,
reinforcing Pioneer's tradition of fundamental investment analysis and sound
long-term portfolio management. We believe fund shareowners, will benefit
from this merger.
All of us at Pioneer appreciate your decision to invest with us and look
forward to helping you reach your financial goals.
Sincerely,
/s/ David Tripple
David Tripple
President
Pioneer Investment Management, Inc.
1
<PAGE>
PIONEER EMERGING MARKETS FUND
PORTFOLIO SUMMARY 11/30/00
PORTFOLIO DIVERSIFICATION
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[PIE CHART]
<TABLE>
<S> <C>
Transportation 1%
Capital Goods 2%
Healthcare 3%
Energy 4%
Basic Materials 4%
Utilities 4%
Consumer Cyclicals 7%
Consumer Staples 11%
Technology 13%
Financial 24%
Communication Services 27%
</TABLE>
GEOGRAPHICAL DISTRIBUTION
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[GRAPH]
<TABLE>
<S> <C>
Brazil 12.2%
Mexico 11.5%
India 10.8%
South Korea 9.6%
Taiwan 6.6%
Hong Kong 5.7%
Turkey 5.7%
South Africa 5.3%
Thailand 3.9%
Malaysia 3.6%
Russia 3.6%
Indonesia 3.4%
Israel 3.1%
Philippines 2.8%
Singapore 2.4%
Egypt 1.7%
Chile 1.6%
Poland 1.6%
Greece 1.0%
China 0.9%
Argentina 0.8%
Hungary 0.5%
Venezuela 0.4%
Pakistan 0.3%
British Virgin Islands 0.3%
Czech Republic 0.2%
United Kingdom 0.2%
Peru 0.2%
Columbia 0.1%
</TABLE>
10 LARGEST HOLDINGS
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. SK Telecom Co., Ltd. (A.D.R.) 2.10%
2. Telefonos de Mexico SA 1.94
(L Shares) (A.D.R.)
3. China Mobile Ltd. (Hong Kong) 1.94
4. Carso Global Telecom 1.80
5. Petroleo Brasileiro SA (A.D.R.) 1.51
6. Korea Electric Power Corp. (A.D.R.) 1.44
7. PT Indosat Indonesian Satellite 1.42
Corp. (A.D.R.) (Local Shares)
8. Samsung Electronics 1.32
9. Grupo Televisa SA (G.D.R.) 1.31
10. Telemig Celular Participacoes 1.26
SA (A.D.R.) (Preferred)
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
PIONEER EMERGING MARKETS FUND
PERFORMANCE UPDATE 11/30/00 CLASS A SHARES
SHARE PRICES AND DISTRIBUTIONS
--------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE 11/30/00 11/30/99
$10.82 $13.80
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(11/30/99-11/30/00) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
- - -
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.
------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
(As of November 30, 2000)
<TABLE>
<CAPTION>
NET ASSET PUBLIC OFFERING
PERIOD VALUE PRICE*
<S> <C> <C>
Life-of-Fund 0.66% -0.26%
(6/23/94)
5 Years 2.12 0.91
1 Year -21.59 -26.09
</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.
[GRAPH]
GROWTH OF $10,000+
<TABLE>
<CAPTION>
Pioneer Emerging MSCI Emerging
Markets Fund* Markets Free Index
<S> <C> <C>
6/94 $9,425 $10,000
11/94 $9,128 $11,242
$8,743 $9,970
$8,756 $9,385
$10,998 $10,780
11/96 $10,558 $10,347
$12,385 $11,616
$11,653 $8,972
$11,302 $8,329
11/98 $7,902 $6,962
$9,798 $8,618
$12,405 $10,130
$13,637 $10,150
11/00 $9,726 $7,738
</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 11/30/00 CLASS B SHARES
SHARE PRICES AND DISTRIBUTIONS
--------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE 11/30/00 11/30/99
$10.28 $13.23
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(11/30/99-11/30/00) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
- - -
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.
--------------------------------
AVERAGE ANNUAL TOTAL RETURNS
(As of November 30, 2000)
<TABLE>
<CAPTION>
IF IF
PERIOD HELD REDEEMED*
<S> <C> <C>
Life-of-Fund -0.11% -0.11%
(6/23/94)
5 Years 1.32 1.15
1 Year -22.30 -25.41
</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.
[GRAPH]
GROWTH OF $10,000+
<TABLE>
<CAPTION>
Pioneer Emerging MSCI Emerging Markets
Markets Fund* Free Index
<S> <C> <C>
6/94 $10,000 $10,000
11/94 $9,644 $11,242
$9,209 $9,970
$9,199 $9,385
$11,517 $10,780
11/96 $11,011 $10,347
$12,870 $11,616
$12,069 $8,972
$11,659 $8,329
11/98 $8,112 $6,962
$10,023 $8,618
$12,641 $10,130
$13,835 $10,150
11/00 $9,822 $7,738
</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 11/30/00 CLASS C SHARES
SHARE PRICES AND DISTRIBUTIONS
--------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE 11/30/00 11/30/99
$10.23 $13.12
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(11/30/99-11/30/00) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
- - -
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.
---------------------------------
AVERAGE ANNUAL TOTAL RETURNS
(As of November 30, 2000)
<TABLE>
<CAPTION>
IF IF
PERIOD HELD REDEEMED*
<S> <C> <C>
Life-of-Fund -1.67% -1.67%
(1/31/96)
1 Year -22.03 -22.03
</TABLE>
---------------------------------
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
[GRAPH]
GROWTH OF $10,000+
<TABLE>
<CAPTION>
Pioneer Emerging MSCI Emerging Markets
Markets Fund* Free Index
<S> <C> <C>
1/96 $10,000 $10,000
$10,008 $9,841
$10,855 $10,268
$10,234 $9,872
$10,386 $9,855
2/97 $11,746 $11,027
$12,131 $11,064
$12,281 $10,325
$11,384 $8,546
$11,796 $8,908
5/98 $10,997 $7,934
$6,966 $5,209
$7,633 $6,631
$7,480 $6,492
$9,390 $8,209
8/99 $9,670 $8,973
$11,824 $9,649
$16,825 $11,086
$12,932 $9,668
$12,914 $9,540
11/00 $9,219 $7,370
</TABLE>
+ Index comparison begins January 31, 1996. 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 11/30/00 CLASS Y SHARES
SHARE PRICES AND DISTRIBUTIONS
--------------------------------------------------------------------------------
NET ASSET VALUE
PER SHARE 11/30/00 11/30/99
$11.03 $13.99
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(11/30/99-11/30/00) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
- - -
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.
----------------------------------
AVERAGE ANNUAL TOTAL RETURNS*
(As of November 30, 2000)
<TABLE>
<CAPTION>
IF IF
PERIOD HELD REDEEMED
<S> <C> <C>
Life-of-Fund -9.45% -9.45%
(4/9/98)
1 Year -21.16 -21.16
</TABLE>
---------------------------------
* Assumes reinvestment of distributions.
[GRAPH]
GROWTH OF $10,000+
<TABLE>
<CAPTION>
Pioneer Emerging MSCI Emerging Markets
Markets Fund* Free Index
<S> <C> <C>
4/1998 $10,000 $10,000
$8,759 $8,630
8/1998 $5,578 $5,666
$6,155 $7,213
$6,065 $7,062
5/1999 $7,658 $8,929
$7,915 $9,760
$9,730 $10,495
2/2000 $13,889 $12,058
$10,725 $10,516
$10,739 $10,377
11/2000 $7,672 $8,017
</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 11/30/00
For the fiscal year ended November 30, 2000, Pioneer Emerging Markets Fund's
Class A, B, C and Y shares delivered total returns at net asset value of
-21.59%, -22.30%, -22.03% and -21.16, respectively. This performance surpassed
the -24.92% return for the MSCI Emerging Markets Free Index for the same period
while lagging the -20.76 average return posted by emerging market funds tracked
by Lipper Inc. (Lipper is an independent mutual fund monitor).
In the following discussion, Mark Madden, portfolio manager of Pioneer Emerging
Markets Fund, addresses the factors impacting the Fund's performance and the
outlook for the emerging markets.
Q: WHAT FACTORS INFLUENCED THE PERFORMANCE OF EMERGING MARKETS IN THE YEAR ENDED
NOVEMBER 30, 2000?
A: Despite the continued improvement in many developing economies, emerging
equity markets fell this year for a number of reasons. Most significant were
the concerns about rising interest rates and slowing growth in the United
States, which, along with rising oil prices, contributed to global equity
market weakness. Political uncertainty also contributed to equity market
weakness in some countries as elections approached or new leadership assumed
power. In Russia, Vladmir Putin, an obscure intelligence official, managed to
win the election to succeed Boris Yeltsin, but his political agenda and his
economic instincts remained vague and contradictory. In Mexico, meanwhile,
former Coca-Cola executive Vincente Fox, the first opposition candidate to
win the presidency in seven decades, outlined an ambitious program of reforms
but his ability to implement them was far from certain.
We believe that the emerging markets are oversold and already reflect many of
these risks and that prices of many stocks have reached attractive levels. In
Asia, valuations in some cases have approached those last seen during the
worst of the Asian crisis in 1998. In our view, this market reaction is an
opportunity to buy stocks at undervalued prices. We believe that the market
does not properly reflect the substantial progress we have observed during
the last two years in many emerging market
7
<PAGE>
PIONEER EMERGING MARKETS FUND
PORTFOLIO MANAGEMENT DISCUSSION 11/30/00 (CONTINUED)
companies, economies and financial systems. Banking and corporate sector
reforms in Asia, in particular, have reduced many of the risks of investing
in those markets while the long-term prospects for growth have improved.
Q: WHAT IS YOUR INVESTMENT STRATEGY?
A: Our investment process is driven by rigorous research that identifies
companies with strong long-term prospects, proven managerial teams and
attractive valuations. We look for companies that are well positioned in
industries with strong long-term growth potential. We are also careful to
manage the risk of investing in these markets by careful diversification of
the portfolio across countries and industrial sectors.
Q: WHERE ARE YOU FINDING ATTRACTIVE INVESTMENT OPPORTUNITIES IN THE EMERGING
MARKETS?
A: We are cautious in our view of the sustainability of strong demand in the
U.S. economy. We believe that U.S. imports of electronic equipment, autos and
other goods will slow in the near term, and so we have reduced our exposure
to companies that derive significant revenues from U.S. sales. We believe
there are better opportunities available in companies that derive revenues
from the domestic economy of their home country. In Asia, for example, local
demand in many countries is just beginning to recover after the crises of
1997-98. Moreover, while profit margins may have peaked in the United States,
we are looking for improvement in profit margins and earnings of Asian
companies in the financial, consumer and telecommunication sectors.
In Eastern Europe, a slowing German economy has hurt, but Poland, Hungary and
the Czech Republic look attractive as their economies continue to introduce
the market reforms that we believe will place them next in line for admission
to the European Union.
8
<PAGE>
PIONEER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
In all markets, we continue to find companies that benefit from a global
trend toward outsourcing. Increasingly, multinational corporations in the
United States and Europe are shifting production and services to firms in
developing countries to reduce costs and improve efficiency. While this
practice is already well entrenched in Mexico's MAQUILADORA, the assemblers
of inexpensive consumer goods along the U.S. border, the trend is expanding
in Asia and Eastern Europe. Outsourcing opportunities are also cutting across
industry lines to more sophisticated products such as pharmaceuticals,
software services, semiconductors and customer service calling centers.
Q: WHAT IS YOUR OUTLOOK FOR THE COMING YEAR?
A: The leading indicators show that the U.S. economy is beginning to decelerate,
which may enable the Federal Reserve to maintain a less restrictive monetary
policy and perhaps reduce interest rates. This could be a positive
development for domestic consumption in many emerging markets. In 2000,
global investors became increasingly risk averse as fears mounted over
inflation, interest rates, oil prices and growth prospects in the developed
world. We believe that many of these uncertainties will ease next year, and
investors will focus once again on the positive trends in emerging markets:
strong growth, stable inflation rates and, in many cases, corporate
restructuring. Emerging market valuations are low and earnings prospects have
improved in the past year, which leaves us optimistic about the months ahead.
INVESTING IN EMERGING MARKETS CARRIES ITS OWN SET OF RISKS, INCLUDING BUT NOT
LIMITED TO, CURRENCY FLUCTUATIONS AND SOCIAL AND ECONOMIC INSTABILITY. HOWEVER,
WE FEEL CONFIDENT THAT THE LONG-TERM PROSPECTS INVITE SERIOUS CONSIDERATION.
9
<PAGE>
PIONEER EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS 11/30/00
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
PREFERRED STOCKS - 5.7%
19,560,000 Banco Itau SA $ 1,487,830
97,000 Centrails Electricas Brasileiras SA* 806,313
17,500,000 Companhia Brasileira de Distribuicao Grupo Pao de Acucar 586,587
16 Companhia Brasileira de Distribuicao Grupo Pao de Acucar
(Certificate of Entitlement)* -
12,000,000 Eletropaulo Metropolitana SA* 554,969
35,300 Embraer Aircraft Corp. (A.D.R.) 972,956
61,894 Tele Norte Leste Participacoes (A.D.R.) 1,121,829
13,700 Telecomunicacoes Brasileiras SA(A.D.R.) 790,319
23,000 Telecular Sul Participoes (A.D.R.)* 460,000
44,800 Telemig Celular Participacoes (A.D.R.)* 2,296,000
57,400 Telesp Celular Participacoes SA (A.D.R.) 1,216,162
-------------
TOTAL PREFERRED STOCKS
(Cost $11,111,474) $ 10,292,965
-------------
COMMON STOCKS - 93.8%
BASIC MATERIALS - 4.1%
CHEMICALS - 0.4%
155,909 Daelim Industrial Co. $ 631,075
-------------
CHEMICALS (SPECIALITY) - 0.4%
641,000 Nan Ya Plastics Corp. $ 785,967
-------------
CONSTRUCTION (CEMENT & AGGREGATES) - 1.3%
38,500 Cemex SA (A.D.R.) $ 743,531
106,900 Siam Cement Public Co., Ltd. 1,098,538
225,400 Siam City Cement Co., Ltd. 566,202
-------------
$ 2,408,271
-------------
GOLD & PRECIOUS METALS MINING - 0.4%
25,650 Anglogold Ltd. $ 625,569
39,640 Gold Fields Ltd. 111,511
-------------
$ 737,080
-------------
IRON & STEEL - 0.4%
1,472,000 China Steel Corp., Ltd. $ 793,267
50 Tata Iron & Steel Co., Ltd. 131
-------------
$ 793,398
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
PIONEER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
METALS MINING - 1.2%
49,200 Comphania Vale do Rico Doce (A.D.R.) $ 971,700
76,200 KGHM Polska Miedz SA 443,043
2,650,000 Yanzhou Coal Mining 672,705
-------------
$ 2,087,448
-------------
TOTAL BASIC MATERIALS $ 7,443,239
-------------
CAPITAL GOODS - 2.4%
CONTAINERS (METAL & GLASS) - 0.2%
450,000 Cosco Pacific Ltd. $ 325,968
-------------
ELECTRICAL EQUIPMENT - 0.5%
331,196 Bharat Heavy Electricals Ltd.* $ 908,438
-------------
MANUFACTURING (DIVERSIFIED) - 0.9%
586,000 China Resources Enterprise Ltd. $ 676,167
2,800,000 Glorious Sun Enterprise Ltd. 466,676
87,000 Grasim Industries Ltd. 458,129
-------------
$ 1,600,972
-------------
TRUCKS & PARTS - 0.8%
382,467 Escorts Ltd. $ 760,360
167,500 Larsen & Tourbo Ltd. (New Shares) 648,289
42,000 Larsen & Tourbo Ltd. (Local Shares) 162,556
-------------
$ 1,571,205
-------------
TOTAL CAPITAL GOODS $ 4,406,583
-------------
COMMUNICATION SERVICES - 23.4%
CELLULAR/WIRELESS TELECOMMUNICATIONS - 8.9%
82,400 Advanced Information Service, Plc. $ 662,361
22,100 Advanced Service Co., Ltd. 221,050
646,000 China Mobile Ltd. 3,528,222
98,844 Grupo Iusacell SA (Series V) (A.D.R.)* 1,099,639
34,340 MIH Ltd. 485,053
33,600 Mobile Telesystems 739,200
89,600 Mobinil Ltd. 1,864,865
178,700 SK Telecom Co., Ltd. (A.D.R.) 3,808,544
11,050 Stet Hellas Telecomm SA (A.D.R.)* 113,263
787,000 Technology Resources Industries Bhd. 577,824
28,000 Tele Norte Celular Particpacoes SA (A.D.R.) 840,000
190,000 Total Access Communication Public Co. Ltd. 604,200
114,400 Turkcell Iletism Hizmet (A.D.R.) 707,850
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
PIONEER EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS 11/30/00 (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
CELLULAR/WIRELESS TELECOMMUNICATIONS - (CONTINUED)
888,300 United Communication Industry Public Co., Ltd. $ 709,991
16,300 Vimpel Communications (A.D.R.) 196,619
-------------
$ 16,158,681
-------------
TELECOMMUNICATIONS (LONG DISTANCE) - 0.8%
5,541,000 Celular CRT Particpacoes SA $ 1,517,312
181 Celular CRT Particpacoes SA (Bonus Shares) -
-------------
$ 1,517,312
-------------
TELEPHONE - 13.7%
101,200 Bezeq Israeli Telecommunications Corp., Ltd. $ 521,932
10,200 Brasil Telecom Participacoes SA 444,975
1,651,600 Carso Global Telecom 3,264,760
56,400 Compania de Telephonos de Venezuela 810,750
45,900 Compania Anonima Nacional Telefonos de Venezuela (A.D.R.) 731,531
93,200 Embratel Participacoes (A.D.R.)* 1,124,225
124,450 Hellenic Telecommunication Organization SA 1,784,281
65,300 Korea Telecom Corp. (A.D.R.) 1,779,425
42,000 Matav (A.D.R.) 669,375
77,950 Philippine Long Distance Telephone Co. (A.D.R.) 1,261,816
282,600 PT Indosat Indonesian Satellite Corp. (A.D.R.) 2,578,725
175,800 Rostelocom (A.D.R.) 1,010,850
158,100 Tele Centro Oeste Celular Participacoes SA (A.D.R.) * 1,393,256
75,300 Telefonos de Mexico SA (L Shares) (A.D.R.) 3,529,688
884,500 TelecomAsia Corp. Public Co., Ltd. 419,122
444,000 Telekomunikasi Indonesia (A.D.R.) 2,192,250
121,000 Telekomunikacja Poliska SA 644,219
76,000 Videsh Sanchar Nigam Ltd. (G.D.R.) (144A) 684,000
-------------
$ 24,845,180
-------------
TOTAL COMMUNICATION SERVICES $ 42,521,173
-------------
CONSUMER CYCLICALS - 7.5%
AUTO PARTS & EQUIPMENT - 0.6%
262,000 Cycle & Carriage Co. $ 516,801
21,000 Halla Climate Control Co. 490,662
200,000 Mirgor Sacifia (Class C) (A.D.R.) (144A) 100,000
-------------
$ 1,107,463
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
PIONEER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
AUTOMOBILES - 1.4%
28,400,000 Koc Holdings AS $ 1,060,633
312,000 Mahindra & Mahindra Ltd. (G.D.R.) 943,800
1,848,000 PT Astra International TbK (Local Shares)* 440,807
-------------
$ 2,445,240
-------------
BUILDING MATERIALS - 0.3%
68,000 Suez Cement Co. (G.D.R.) (144A) $ 623,900
-------------
HOUSEHOLD FURNITURE & APPLIANCES - 0.4%
5,050,000 Vestel Elektronik Sanayi Ve Ticaret AS* $ 684,131
-------------
LEISURE TIME (PRODUCTS) - 0.7%
40,000 Hero Honda Motors, Ltd* $ 728,892
120,000 TVS Suzuki, Ltd. 446,124
-------------
$ 1,175,016
-------------
LODGING (HOTELS) - 0.5%
125,000 The Indian Hotels Co., Ltd. (G.D.R.) (144A) $ 534,375
245,000 Resorts World Bhd. 373,947
-------------
$ 908,322
-------------
PUBLISHING - 0.6%
132,860,000 Dogan Sirketler Grubu Holding AS* $ 1,050,738
-------------
PUBLISHING (NEWSPAPERS) - 1.2%
125,800,000 Hurriyet Gazeteci ve Matbaacilik AS $ 921,206
287,260 Naspers, Ltd. 1,186,182
-------------
$ 2,107,388
-------------
RETAIL (DEPARTMENT STORES) - 0.3%
14,600 Shinsegae Department Store Co. $ 624,599
-------------
RETAIL (GENERAL MERCHANDISE) - 0.4%
19,500 39Shopping Corp.* $ 297,594
11,200 LG Home Shopping, Inc.* 455,187
-------------
$ 752,781
-------------
RETAIL (DISCOUNTERS) - 0.4%
394,000 Walmart De Mexico SA de CV (Series C) $ 774,643
-------------
SERVICES (ADVERTISING/MARKETING) - 0.5%
11,400 Cheil Communications Inc. $ 632,135
11,400 LG AD, Inc. 295,434
-------------
$ 927,569
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
PIONEER EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS 11/30/00 (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
TEXTILES (HOME FUNRNISHINGS) - 0.2%
516,920 Far Eastern Textile Ltd. $ 410,030
-------------
TEXTILES (SPECIALTY) - 0.0%
347,700 Asia Fiber Co., Ltd.* $ 49,626
-------------
TOTAL CONSUMER CYCLICALS $ 13,641,446
-------------
CONSUMER STAPLES - 11.1%
BEVERAGES (ALCOHOLIC) - 0.6%
183,000 South African Breweries Plc $ 1,088,625
-------------
BEVERAGES (NON-ALCOHOLIC) - 0.9%
26,700 Coca-Cola SA de CV (A.D.R.) $ 502,294
45,800 Embotelladors Andina SA (A.D.R.) 529,563
17,500 Fomento Economico Mexicano, SA de CV 598,281
-------------
$ 1,630,138
-------------
BROADCASTING (TELEVISION/RADIO/CABLE) - 4.6%
2,147,100 ABS-CBN Broadcasting Corp. (A.D.R.)* $ 2,011,892
18,758,000 Benpres Holdings Corp.* 1,001,687
11,000 Ceske Radiokomunikace AS (G.D.R.)* (144A) 345,400
101,250 Globo Cabo SA (A.D.R.)* 803,672
218,650 Grupo Radio Centro SA de CV (A.D.R.) 1,885,856
51,000 Grupo Televisa SA (G.D.R.)* 2,374,688
-------------
$ 8,423,195
-------------
DISTRIBUTORS (FOOD & HEALTH) - 0.8%
359,700 Kimbererly-Clark de Mexico SA de CV $ 898,342
1,024,000 Ng Fung Hong Ltd. 630,166
-------------
$ 1,528,508
-------------
ENTERTAINMENT - 0.9%
168,890 Corporacion Interamericana de Entretenimiento SA
(Series B)* $ 682,058
460,700 Tanjong Public Co., Ltd. 897,153
-------------
$ 1,579,211
-------------
FOODS - 1.1%
32,800 Cheil Jedang Corp. $ 854,068
654,000 President Enterprises Corp. 415,804
7,701,300 PT Indofood Sukses Makmur Tbk 666,168
-------------
$ 1,936,040
-------------
HOUSEHOLD PRODUCTS (NON-DURABLES) - 0.5%
49,422,000 Arcelik A.S. $ 940,958
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
PIONEER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
RESTAURANTS - 0.8%
1,184,900 Kentucky Fried Chicken Bhd. $ 1,502,952
-------------
RETAIL STORES (FOOD CHAINS) - 0.7%
1,327,400 Metro Cash and Carry Ltd. $ 301,468
3,000,000 Migros Turk T.A.S. 276,801
248,664 President Chain Store Corp. 670,030
-------------
$ 1,248,299
-------------
TOBACCO - 0.2%
187,000 PT Hanjaya Mandala Sampoerna Tbk $ 275,476
-------------
TOTAL CONSUMER STAPLES $ 20,153,402
-------------
ENERGY - 3.9%
OIL (INTERNATIONAL INTERGRATED) - 2.4%
106,640 Petroleo Brasileiro SA $ 2,745,980
7,500,000 Sinopec Zhenhai Refining and Chemical Company Limited 951,941
75,000 Surgutneftegaz (A.D.R.) 693,750
-------------
$ 4,391,671
-------------
OIL & GAS (EXPLORATION/PRODUCTION) - 0.7%
35,600 Lukoil Holding (A.D.R.) $ 1,272,700
-------------
OIL & GAS (REFINING & MARKETING) - 0.8%
402,150 Hindustan Petroleum Corp., Ltd. (New Shares)* $ 1,092,323
51,200 Polski Koncern Nafto (G.D.R.) 454,400
-------------
$ 1,546,723
-------------
TOTAL ENERGY $ 7,211,094
-------------
FINANCIAL - 22.3%
BANKS (MAJOR REGIONAL) - 10.0%
66,670,000 Akbank T.A.S. $ 312,455
114,700 Banco Bradesco SA 795,731
54,000 Banco Gandero (A.D.R.) 192,375
49,600 Banco Santander Chile (A.D.R.) 713,000
246,600 Bangkok Bank Ltd. 218,218
63,000 Commerical International Bank 591,471
65,200 Credicorp Ltd. 395,275
200,000 Development Bank of Singapore Ltd. 2,268,970
1,374,000 Grupo Financiero Banamex Accival (Class O)* 1,889,533
95,300 Grupo Financiero Galicia (A.D.R.) 1,328,244
59,980 Kookmin Bank 668,638
241,200 Malayan Banking Bhd. 888,632
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
PIONEER EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS 11/30/00 (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
BANKS (MAJOR REGIONAL) - (CONTINUED)
7,735,000 National Finance Public Co., Ltd.* $ 1,042,167
7,400 OTP Bank (G.D.R.)* 327,783
68,900 Powszechny Bank Kredy 1,327,656
63,700 Shinhan Bank 584,331
124,240 Standard Bank Investment Corporation Ltd. 427,253
87,300,000 Turkiye Garanti Bankasi* 536,995
55,600 Uniao de Bancos Brasileiros SA (G.D.R.) 1,237,100
375,000 Wing Hang Bank Ltd. 1,228,389
187,849,885 Yapi Ve Kredi Bankasi SA 990,421
-------------
$ 17,964,637
-------------
BANKS (MONEY CENTER) - 1.8%
204,100 Bank Hapoalim Ltd. $ 537,524
261,200 Bank Leumi Le-Israel 564,223
10,692,000 PT Lippo Bank Tbk (Certificate of Entitlement)* -
132,855,000 Turkeiy Is Bankasi 1,673,335
850,000 United World Chinese Commercial Bank 568,725
-------------
$ 3,343,807
-------------
BANKS (REGIONAL) - 0.4%
173,100 Commerce Asset Holdings Bhd. $ 341,645
68,000 ICICI Bank Ltd. (A.D.R.) 454,750
-------------
$ 796,395
-------------
CONSUMER FINANCE - 0.6%
1,593,050 African Bank Investments, Ltd.* $ 1,068,954
-------------
FINANCIAL (DIVERSIFIED) - 5.2%
189,500 ABSA Group Ltd. $ 594,213
270,000 Bank Of East Asia 586,742
106,500 Citic Pacific Ltd. 367,296
601,210 FirstRand Ltd. 543,063
556,400 Grupo Financiero Bancomer (B Shares)* 2,040,045
146,000 Henderson Land Development 563,421
119,400 Housing Development Finance Corp. Ltd. 1,347,999
34,700 ICICI Ltd. (A.D.R.) 342,662
123,470 Imperial Holdings Ltd.* 876,299
740,000 New World Development Co., Ltd. 773,220
277,400 Pakistan Investment Fund Inc. 554,800
7,982,000 SM Prime Holdings, Inc. 804,234
-------------
$ 9,393,994
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
PIONEER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
INSURANCE (LIFE/HEALTH) - 0.2%
51,430 Liberty Group Ltd. $ 394,875
-------------
INSURANCE (MULTI-LINE) - 0.2%
28,500,000 Aksigorta AS $ 354,789
-------------
INSURANCE (PROPERTY/CASUALTY) - 1.2%
144,100 Ayudhya Jardine CMG Life Assurance Public Co., Ltd.* $ 32,084
1,255,800 Cathay Life Insurance Co., Ltd. 2,243,179
-------------
$ 2,275,263
-------------
INVESTMENT BANKING/BROKERAGE - 1.0%
881,000 Arab Malay Merchant Bank Bhd. $ 871,726
17,340 Investec Group Ltd. 501,214
185,410 Old Mutual Plc. 397,317
-------------
$ 1,770,257
-------------
INVESTMENT MANAGEMENT - 1.4%
1,226,000 China Development Industrial $ 924,233
37,280 Coronation Holdings Ltd. 442,578
103,400,000 Haci Omer Sabanci Holding AS 757,176
22,750 Nedcor Ltd. 460,901
-------------
$ 2,584,888
-------------
REAL ESTATE - 0.3%
2,099,200 New World China Land Ltd. $ 565,180
-------------
TOTAL FINANCIAL $ 40,513,039
-------------
HEALTHCARE - 2.6%
BIOTECHNOLOGY - 0.6%
37,700 Dr. Reddy's Laboratories Ltd. $ 1,087,890
-------------
HEALTHCARE (DRUGS/MAJOR PHARMACEUTICALS) - 2.0%
76,000 E Merck (India) Ltd. $ 589,272
75,780 Hoechst Marion Roussel Ltd. 792,915
200 Knoll Pharmaceuticals Ltd. 1,329
41,800 Knoll Pharmaceuticals Ltd. (New Shares) 277,819
78,000 Ranbaxy Laboratories Ltd. 1,291,922
56,699 Sun Pharmaceutical Industries, Ltd.* 612,695
-------------
$ 3,565,952
-------------
TOTAL HEALTHCARE $ 4,653,842
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
PIONEER EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS 11/30/00 (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
TECHNOLOGY - 12.3%
COMMUNICATIONS EQUIPMENT - 1.3%
7,100 AudioCodes $ 117,150
509,000 China Unicom Ltd. 724,360
200 China Unicom Ltd. (A.D.R.) 2,825
10,400 Gilat Satellite Networks Ltd.* 408,850
21,400 Nice Systems Ltd. (A.D.R.)* 930,900
15,000 Radvision Ltd.* 243,750
-------------
$ 2,427,835
-------------
COMPUTERS (HARDWARE) - 1.5%
402,200 Acer Co. $ 247,189
18,000 Samsung Electronics 2,399,013
-------------
$ 2,646,202
-------------
COMPUTERS (PERIPHERALS) - 0.5%
83,731 Daou Technology, Inc.* $ 297,932
2,800,000 Grupo Dataflux SA de CV 532,653
-------------
$ 830,585
-------------
COMPUTERS (SOFTWARE & SERVICES) - 4.8%
100 BFL Software Ltd. * $ 985
15,700 Check Point Software Technologies Ltd.* 1,611,213
520,000 Idion Technology Holdings, Ltd.* 520,034
13,200 Infosys Technology, Ltd. 2,017,827
570,000 Ixchange Technology Holdings Ltd.* 338,344
61,200 Mastek Ltd. 738,569
30,232 NITT, Ltd. 1,096,015
150,000 Satyam Computer Services, Ltd. 1,097,053
660,000 Softline, Ltd.* 116,679
150,500 VocalTec Communications, Ltd.* 776,016
7,500 Wipro Limited (A.D.R.) 406,875
-------------
$ 8,719,610
-------------
ELECTRONICS (COMPONENT DISTRIBUTORS) - 0.4%
106,720 Asustek Computer, Inc. $ 450,725
33,454 L.G. Electronics Inc. 327,522
-------------
$ 778,247
-------------
ELECTRONICS (INSTRUMENTATION) - 0.5%
330,000 Elec & Eltek International Co., Ltd. $ 976,800
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
PIONEER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
ELECTRONICS (SEMICONDUCTORS) - 2.6%
345,100 Advanced Semiconductor Engineering Inc. $ 340,607
105,000 Hyundai Electronics Industries Co.* 590,868
77,858 Siliconware Precision Industries Co., Ltd. 296,834
622,540 Taiwan Semiconductor Manufacturing Co. 1,686,870
902,800 United Microelectronic Corp., Ltd. 1,421,302
36,800 Winbond Electronics Corp. (G.D.R.) 356,040
-------------
$ 4,692,521
-------------
SERVICES (DATA PROCESSING) - 0.7%
180,000 Shinawatra Computer Co., Plc. $ 645,353
832,000 Singapore Exchange Ltd. 626,099
-------------
$ 1,271,452
-------------
TOTAL TECHNOLOGY $ 22,343,252
-------------
TRANSPORTATION - 0.8%
RAILROADS - 0.6%
609,700 Malaysia International Shipping Bhd. $ 1,074,997
-------------
SHIPPING - 0.2%
2,100,000 Far Eastern Silo & Shipping Corp. $ 314,714
-------------
TOTAL TRANSPORTATION $ 1,389,711
-------------
UTILITIES - 3.4%
ELECTRIC COMPANIES - 2.2%
30,900 Empresa Nacional Electricidad Chile (A.D.R.) $ 310,931
35,000 Enersis S.A. (A.D.R.) 603,750
137,900 Korea Electric Power Corp. (A.D.R.)* 2,609,379
199,789 Mosenergo (A.D.R.) 474,499
-------------
$ 3,998,559
-------------
NATURAL GAS - 0.4%
119,700 Gazprom (A.D.R.) (144A) $ 763,087
-------------
POWER PRODUCERS (INDEPENDENT) - 0.8%
173,140 Unified Energy System (G.D.R.) (144A)* $ 1,369,805
-------------
TOTAL UTILITIES $ 6,131,451
-------------
TOTAL COMMON STOCKS
(Cost $231,804,248) $ 170,408,232
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
PIONEER EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS 11/30/00 (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
RIGHTS/WARRANTS - 0.5%
21,000 Cemex SA, 12/13/02* $ 7,253
16 Companhia Brasileira de Distribuicao Grupo
Pao de Acucar, 8/31/05* -
10,692,000 PT Lippo Bank, 4/15/02* -
26,130 Queenbee Restaurant, 3/24/03* 5,160
9,179,800 Siam Commercial Bank, 5/10/02* 691,787
470,211 TelecomAsia Public Co. Ltd., 4/3/02* 128,116
-------------
TOTAL WARRANTS
(Cost $1,971,559) $ 832,316
-------------
TOTAL INVESTMENT IN SECURITIES
(Cost $244,887,281)(a)(b)(c) $ 181,533,513
=============
</TABLE>
* 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 November 30, 2000,
the value of these securities amounted to $4,420,567 or 2.3% of total net
assets.
(a) Distribution of investments by country of issue, as percentage of total
equity holdings, is as follows:
<TABLE>
<S> <C>
Brazil 12.2%
Mexico 11.5
India 10.8
South Korea 9.6
Taiwan 6.6
Hong Kong 5.7
Turkey 5.7
South Africa 5.3
Thailand 3.9
Malaysia 3.6
Russia 3.6
Indonesia 3.4
Israel 3.1
Phillipines 2.8
Singapore 2.4
Egypt 1.7
Chile 1.6
Poland 1.6
Greece 1.0
Others (Individually less than 1%) 3.9
-----
100.0%
=====
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
PIONEER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
(b) At November 30, 2000, the net unrealized loss on investments based on cost
for federal income tax purposes of $247,070,956 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 8,646,518
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (74,183,961)
------------
Net Unrealized loss $(65,537,443)
============
</TABLE>
(c) At November 30, 2000, the Fund had a capital loss carryforward of
$9,796,063 which will expire in 2006 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended November 30, 2000 aggregated $411,634,415 and $346,817,174,
respectively.
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
PIONEER EMERGING MARKETS FUND
BALANCE SHEET 11/30/00
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $244,887,281) $181,533,513
Foreign currencies, at value 13,967,556
Receivables -
Investment securities sold 3,820,839
Fund shares sold 363,869
Dividends, interest and foreign taxes withheld 237,743
Forward foreign currency settlement contracts - net 183
Other 291,570
------------
Total assets $200,215,273
------------
LIABILITIES:
Payables -
Investment securities purchased $ 4,983,799
Fund shares repurchased 692,371
Due to bank 4,611,067
Due to affiliates 388,170
Accrued expenses 308,899
Reserve for repatriation taxes 54,788
------------
Total liabilities $ 11,039,094
------------
NET ASSETS:
Paid-in capital $273,892,326
Accumulated net investment loss (71,257)
Accumulated net realized loss on investments, futures
contracts and foreign currency transactions (21,124,676)
Net unrealized loss on investments (including reserve
for repatriation taxes of $54,788) (63,408,556)
Net unrealized loss on forward foreign currency contracts
and other assets and liabilities denominated in foreign
currencies (111,658)
------------
Total net assets $189,176,179
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $88,174,545/8,152,532 shares) $ 10.82
============
Class B (based on $40,762,886/3,965,962 shares) $ 10.28
============
Class C (based on $12,861,209/1,257,814 shares) $ 10.23
============
Class Y (based on $47,377,539/4,296,503 shares) $ 11.03
============
MAXIMUM OFFERING PRICE:
Class A $ 11.48
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
PIONEER EMERGING MARKETS FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED 11/30/00
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $285,448) $ 2,467,093
Interest (net of foreign taxes withheld of $8,667) 348,395
------------
Total investment income $ 2,815,488
------------
EXPENSES:
Management fees $ 3,351,434
Transfer agent fees
Class A 397,381
Class B 282,700
Class C 38,093
Class Y 98
Distribution fees
Class A 326,385
Class B 698,080
Class C 171,483
Administrative fees 84,693
Custodian fees 602,610
Registration fees 98,085
Professional fees 103,175
Printing 75,145
Fees and expenses of nonaffiliated trustees 26,445
Miscellaneous 46,003
------------
Total expenses $ 6,301,810
Less fees paid indirectly (65,382)
------------
Net expenses $ 6,236,428
------------
Net investment loss $ (3,420,940)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments (net of capital gains taxes paid of
$4,464,854) $ 28,647,702
Forward foreign currency contracts and other
assets and liabilities denominated in foreign
currencies (672,371) $ 27,975,331
------------ ------------
Change in net unrealized loss from:
Investments $(97,010,974)
Forward foreign currency contracts and other
assets and liabilities denominated in foreign
currencies (59,138) $(97,070,112)
------------ ------------
Net loss on investments and foreign currency
transactions $(69,094,781)
------------
Net decrease in net assets resulting from operations $(72,515,721)
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
PIONEER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
FOR THE YEARS ENDED 11/30/00 AND 11/30/99
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
11/30/00 11/30/99
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (3,420,940) $ (1,350,097)
Net realized gain on investments, futures
contracts and foreign currency transactions 27,975,331 2,804,075
Change in net unrealized gain (loss) on investments and
foreign currency transactions (97,070,112) 58,084,393
------------- -------------
Net increase (decrease) in net assets resulting from
operations $ (72,515,721) $ 59,538,371
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 329,505,782 $ 189,422,052
Reinvestment of distributions - -
Cost of shares repurchased (248,879,736) (193,508,476)
------------- -------------
Net increase (decrease) in net assets resulting from
fund share transactions $ 80,626,046 $ (4,086,424)
------------- -------------
Net increase in net assets $ 8,110,325 $ 55,451,947
NET ASSETS:
Beginning of year 181,065,854 125,613,907
------------- -------------
End of year (including accumulated net investment loss
of $71,257 and $1,392,414, respectively) $ 189,176,179 $ 181,065,854
============= =============
</TABLE>
<TABLE>
<CAPTION>
CLASS A '00 SHARES '00 AMOUNT '99 SHARES '99 AMOUNT
<S> <C> <C> <C> <C>
Shares sold 13,630,214 $ 216,021,888 13,457,290 $ 139,753,516
Reinvestment of distributions - - - -
Less shares repurchased (12,077,994) (187,103,890) (15,527,823) (158,319,918)
----------- ------------- ----------- -------------
Net increase (decrease) 1,552,220 $ 28,917,998 (2,070,533) $ (18,566,402)
=========== ============= =========== =============
CLASS B
Shares sold 2,965,548 $ 51,179,580 2,174,781 $ 23,059,774
Reinvestment of distributions - - - -
Less shares repurchased (2,860,823) (44,175,696) (2,546,532) (25,753,021)
----------- ------------- ----------- -------------
Net increase (decrease) 104,725 $ 7,003,884 (371,751) $ (2,693,247)
=========== ============= =========== =============
CLASS C
Shares sold 1,336,618 $ 20,688,386 427,313 $ 4,608,232
Reinvestment of distributions - - - -
Less shares repurchased (966,914) (14,463,955) (974,574) (8,869,386)
----------- ------------- ----------- -------------
Net increase (decrease) 369,704 $ 6,224,431 (547,261) $ (4,261,154)
=========== ============= =========== =============
CLASS Y
Shares sold 2,545,138 $ 41,615,928 1,855,799 $ 22,000,530
Reinvestment of distributions - - - -
Less shares repurchased (194,625) (3,136,195) (50,089) (566,151)
----------- ------------- ----------- -------------
Net increase 2,350,513 $ 38,479,733 1,805,710 $ 21,434,379
=========== ============= =========== =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE>
PIONEER EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS 11/30/00
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
11/30/00 11/30/99 11/30/98 11/30/97 11/30/96
<S> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year $ 13.80 $ 8.79 $ 14.42 $ 13.94 $ 11.56
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.17) $ (0.09) $ 0.00(a) $ (0.05) $ (0.07)
Net realized and unrealized gain (loss) on investments,
futures contracts and foreign currency transactions (2.81) 5.10 (4.23) 1.40 2.45
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (2.98) $ 5.01 $ (4.23) $ 1.35 $ 2.38
Distributions to shareowners:
Net realized gain - - (1.40) (0.87) -
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (2.98) $ 5.01 $ (5.63) $ 0.48 $ 2.38
------- ------- ------- ------- -------
Net asset value, end of year $ 10.82 $ 13.80 $ 8.79 $ 14.42 $ 13.94
======= ======= ======= ======= =======
Total return* (21.59)% 57.00% (32.19)% 10.37% 20.59%
Ratio of net expenses to average net assets+ 2.19% 2.44% 2.26% 2.23% 2.28%
Ratio of net investment income (loss) to average net assets+ (1.13)% (0.73)% 0.07% (0.40)% (0.61)%
Portfolio turnover rate 139% 180% 195% 140% 143%
Net assets, end of year (in thousands) $88,175 $91,092 $76,257 $87,628 $56,465
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid indirectly:
Net expenses 2.19% 2.44% 2.27% 2.25% 3.00%
Net investment income (loss) (1.13)% (0.73)% 0.06% (0.42)% (1.33)%
Ratios assuming waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 2.16% 2.40% 2.25% 2.19% 2.25%
Net investment income (loss) (1.10)% (0.69)% 0.08% (0.36)% (0.58)%
</TABLE>
(a) Amount rounds to less than one cent per share.
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, the complete redemption of the investment
at net asset value at the end of each year, and no sales charges. Total
return would be reduced if sales charges were taken into account.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
PIONEER EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS 11/30/00
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
11/30/00 11/30/99 11/30/98 11/30/97 11/30/96
<S> <C> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of year $ 13.23 $ 8.49 $ 14.09 $ 13.73 $ 11.47
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.34) $ (0.17) $ (0.12) $ (0.14) $ (0.03)
Net realized and unrealized gain (loss) on investments,
futures contracts and foreign currency transactions (2.61) 4.91 (4.08) 1.37 2.29
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (2.95) $ 4.74 $ (4.20) $ 1.23 $ 2.26
Distributions to shareowners:
Net realized gain - - (1.40) (0.87) -
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (2.95) $ 4.74 $ (5.60) $ 0.36 $ 2.26
------- ------- ------- ------- -------
Net asset value, end of year $ 10.28 $ 13.23 $ 8.49 $ 14.09 $ 13.73
======= ======= ======= ======= =======
Total return* (22.30)% 55.83% (32.79)% 9.61% 19.70%
Ratio of net expenses to average net assets+ 3.05% 3.20% 3.09% 2.94% 3.00%
Ratio of net investment income (loss) to average net assets+ (1.97)% (1.53)% (0.84)% (1.10)% (1.47)%
Portfolio turnover rate 139% 180% 195% 140% 143%
Net assets, end of year (in thousands) $40,763 $51,093 $35,954 $70,218 $39,893
Ratios assuming no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 3.05% 3.20% 3.10% 2.95% 3.66%
Net investment loss (1.97)% (1.53)% (0.85)% (1.11)% (2.13)%
Ratios assuming waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 3.03% 3.18% 3.08% 2.90% 2.96%
Net investment loss (1.95)% (1.51)% (0.83)% (1.06)% (1.43)%
</TABLE>
* Assumes initial investment at net asset value at the beginning of each year,
reinvestment of all distributions, the complete redemption of the investment
at net asset value at the end of each year, and no sales charges. Total
return would be reduced if sales charges were taken into account.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
PIONEER EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS 11/30/00
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 1/31/96 TO
11/30/00 11/30/99 11/30/98 11/30/97 11/30/96
<S> <C> <C> <C> <C> <C>
CLASS C
Net asset value, beginning of period $ 13.12 $ 8.47 $ 14.08 $ 13.73 $ 13.22
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.14) $ (0.29) $ (0.08) $ (0.13) $ (0.09)
Net realized and unrealized gain (loss) on investments,
futures contracts and foreign currency transactions (2.75) 4.94 (4.13) 1.35 0.60
------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (2.89) $ 4.65 $ (4.21) $ 1.22 $ 0.51
Distributions to shareowners:
Net realized gain - - (1.40) (0.87) -
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (2.89) $ 4.65 $ (5.61) $ 0.35 $ 0.51
------- ------- ------- ------- -------
Net asset value, end of period $ 10.23 $ 13.12 $ 8.47 $ 14.08 $ 13.73
======= ======= ======= ======= =======
Total return* (22.03)% 54.90% (32.90)% 9.53% 3.86%
Ratio of net expenses to average net assets+ 2.85% 3.82% 3.32% 2.89% 2.91%**
Ratio of net investment loss to average net assets+ (1.81)% (2.09)% (1.08)% (1.09)% (1.51)%**
Portfolio turnover rate 139% 180% 195% 140% 143%
Net assets, end of period (in thousands) $12,861 $11,656 $12,162 $12,730 $5,566
Ratios assuming no waiver of management fees
by PIM and no reduction for fees paid indirectly:
Net expenses 2.85% 3.82% 3.33% 2.90% 3.48%**
Net investment loss (1.81)% (2.09)% (1.09)% (1.10)% (2.08)%**
Ratios assuming waiver of management fees by PIM and reduction
for fees paid indirectly:
Net expenses 2.82% 3.80% 3.31% 2.85% 2.86%**
Net investment loss (1.78)% (2.07)% (1.07)% (1.05)% (1.46)%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
PIONEER EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS 11/30/00
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED 4/9/98 TO
11/30/00 11/30/99 11/30/98
<S> <C> <C> <C>
CLASS Y
Net asset value, beginning of period $ 13.99 $ 8.85 $ 14.55
------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.10) $ 0.01 $ -
Net realized and unrealized gain (loss) on
investments, futures contracts and foreign
currency transactions $ (2.86) $ 5.13 $ (5.55)
------- ------- -------
Net increase (decrease) from investment
operations (2.96) 5.14 (5.55)
Distributions to shareowners:
Net realized gain - - (0.15)
------- ------- -------
Net increase (decrease) in net asset value (2.96) 5.14 (5.70)
------- ------- -------
Net asset value, end of period $ 11.03 $ 13.99 $ 8.85
======= ======= =======
Total return* (21.16)% 58.08% (38.32)%
Ratio of net expenses to average net assets+ 1.62% 2.51% 1.75%**
Ratio of net investment income (loss) to
average net assets+ (0.62)% (1.07)% 0.06%**
Portfolio turnover rate 139% 180% 195%
Net assets, end of period (in thousands) $47,378 $27,225 $1,241
Ratios assuming reduction for fees
paid indirectly:
Net expenses 1.60% 2.41% 1.75%**
Net investment income (loss) (0.60)% (0.97)% 0.06%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
PIONEER EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS 11/30/00
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 represents an interest in the same portfolio of
investments of the Fund and has 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 shareowners 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 accounting
principles generally accepted in the United States 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 as of 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
29
<PAGE>
PIONEER EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS 11/30/00 (CONTINUED)
may have passed are recorded as soon as the Fund is informed of the
ex-dividend data in the exercise of reasonable diligence. Interest income,
including interest on income bearing cash accounts, 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.
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 certain countries, 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
30
<PAGE>
PIONEER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
gains and losses at the time a portfolio hedge is offset by entry into a
closing transaction or extinguished by delivery of the currency. Risks may
arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contract and from unanticipated
movements in the value of foreign currencies relative to the U.S. dollar.
(See Note 6)
D. FUTURES CONTRACTS
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices, and currency rates or to seek to increase
total return. Upon entering into a futures contract, the Fund is required to
deposit with a broker an amount of cash or securities equal to the minimum
"initial margin" requirements of the associated futures exchange. Subsequent
payments for futures contracts ("variation margin") are paid or received by
the Fund, depending on the daily fluctuation in the value of the contracts,
and are recorded by the Fund as unrealized gains or losses. When the contract
is closed, the Fund realizes a gain or loss equal to the difference between
the opening and closing values of the contract. The use of futures contracts
involves, to varying degrees, elements of market and counterparty risks which
may exceed the amounts recognized by the Fund. Changes in value of the
contracts may not directly correlate to the changes in value of the
underlying securities. These risks may decrease the effectiveness of the
Fund's hedging strategies and potentially result in a loss. At November 30,
2000, the Fund had no open futures contracts.
E. 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
shareowners. 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 year ended November 30, 2000, the Fund paid $4,464,854 in such taxes.
31
<PAGE>
PIONEER EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS 11/30/00 (CONTINUED)
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 the capital gains is based on the net unrealized
appreciation on certain portfolio securities, the holding period of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. As of November 30, 2000, the Fund had no reserve
related to capital gains. The estimated reserve for the repatriation of
foreign currencies is based on principal balances and/or unrealized
appreciation of applicable securities, the holding period of such investments
and the related tax rates and other such factors. As of November 30, 2000,
the Fund had a reserve of $54,788 related to taxes on the repatriation of
foreign currencies.
The characterization of distributions to shareowners 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, 2000, the Fund has reclassified $4,742,097 and $5,137,225
from paid-in capital to accumulated net investment loss and accumulated net
realized loss on investments, futures contracts and foreign currency
transactions, respectively. The reclassification has no impact on the net
asset value of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
F. FUND SHARES
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned subsidiary of UniCredito Italiano S.p.A. (UniCredito
Italiano), earned $32,385 in underwriting commissions on the sale of Fund
shares during the year ended November 30, 2000.
G. CLASS ALLOCATIONS
Distribution fees are calculated based on the average daily net asset values
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Class Y shares are not subject to a distribution plan.
Shareowners 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
32
<PAGE>
PIONEER EMERGING MARKETS FUND
--------------------------------------------------------------------------------
are calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning of
the day.
Distributions to shareowners 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.
2. MANAGEMENT AGREEMENT
Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned subsidiary of UniCredito
Italiano. 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 November 30, 2000, $229,412 was
payable to PIM related to management fees, administrative fees and certain
other services.
3. TRANSFER AGENT
PSC, a wholly owned subsidiary of UniCredito Italiano, provides substantially
all transfer agent and shareowner services to the Fund at negotiated rates.
Included in due to affiliates is $88,814 in transfer agent fees payable to
PSC at November 30, 2000.
4. DISTRIBUTION PLANS
The Fund adopted a Plan of Distribution with respect to each of 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
average daily net assets attributable to Class A shares in reimbursement of
its actual expenditures to finance activities primarily intended to result in
the sale of Class A shares. Pursuant to the Class B Plan and the Class C
Plan, the Fund pays PFD 1.00% of the average daily net assets attributable to
each class of shares. The fee consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and
Class C shares. Included in due to affiliates is $69,944 in distribution fees
payable to PFD at November 30, 2000.
In addition, redemptions of each class of shares (except Class Y shares) may
be subject to a contingent deferred sales charge (CDSC). A CDSC of
33
<PAGE>
PIONEER EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS 11/30/00 (CONTINUED)
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
year ended November 30, 2000, CDSCs in the amount of $324,402 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, 2000,
the Fund's expenses were reduced by $65,382 under such arrangements.
6. FORWARD FOREIGN CURRENCY CONTRACTS
At November 30, 2000, 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.
As of November 30, 2000, the Fund had no outstanding portfolio hedges. At
November 30, 2000, the gross forward currency settlement contracts receivable
and payable were $1,543,680 and $1,543,497, respectively, resulting in a net
receivable of $183.
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 year ended
November 30, 2000 was $558,232. The average daily shares outstanding during
the period were 17,078,521 resulting in an average borrowing per share of
$0.03. The related weighted average annualized interest rate for the year was
6.51%, and the total interest expense on such borrowings was $36,921.
34
<PAGE>
PIONEER EMERGING MARKETS FUND
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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 November 30,
2000, 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 auditing standards generally accepted
in the United States. 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, 2000 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, 2000, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods presented, in conformity with accounting principles generally accepted
in the United States.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
January 8, 2000
35
<PAGE>
PIONEER EMERGING MARKETS FUND
RESULTS OF SHAREOWNER MEETING
On September 11, 2000, Pioneer Emerging Markets Fund held a special meeting of
shareowners to approve a new management contract between the Fund and Pioneer
Investment Management, Inc., the Fund's investment adviser. Shareowners also
voted to elect trustees. Both proposals passed by shareowner vote. The new
management contract took effect when UniCredito Italiano S.p.A. completed its
acquisition of The Pioneer Group, Inc. on October 24, 2000. Here are the
detailed results of the votes.
PROPOSAL 1 - TO APPROVE A NEW MANAGEMENT CONTRACT.
<TABLE>
<CAPTION>
AFFIRMATIVE AGAINST ABSTAIN
<S> <C> <C>
12,528,588.765 252,835.051 219,299.876
</TABLE>
PROPOSAL 2 - TO ELECT TRUSTEES.
<TABLE>
<CAPTION>
NOMINEE AFFIRMATIVE WITHHELD
<S> <C> <C>
M.K. Bush 12,757,218.412 243,505.280
J.F. Cogan, Jr. 12,751,841.667 248,882.025
Dr. R.H. Egdahl 12,774,860.937 225,862.755
M.B.W. Graham 12,772,587.872 228,135.820
M.A. Piret 12,778,735.574 221,988.118
D.D. Tripple 12,757,500.577 243,223.115
S.K. West 12,771,825.041 228,898.651
J. Winthrop 12,779,367.939 221,355.753
</TABLE>
36
<PAGE>
PIONEER EMERGING MARKETS FUND
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
TRUSTEES
John F. Cogan, Jr., Chairman
Mary K. Bush
Richard H. Egdahl, M.D.
Margaret B.W. Graham
Marguerite A. Piret
David D. Tripple
Stephen K. West
John Winthrop
OFFICERS
John F. Cogan, Jr., President
David D. Tripple, Executive Vice President
Vincent Nave, Treasurer
Joseph P. Barri, Secretary
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
37
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
CALL US FOR:
ACCOUNT INFORMATION, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FACTFONE-SM- for automated fund yields, prices,
account information and transactions 1-800-225-4321
RETIREMENT PLANS INFORMATION 1-800-622-0176
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD) 1-800-225-1997
WRITE TO US:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
OUR TOLL-FREE FAX 1-800-225-4240
OUR INTERNET E-MAIL ADDRESS [email protected]
(for general questions about Pioneer only)
VISIT OUR WEB SITE: www.pioneerfunds.com
THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT FUND PROSPECTUS.
[LOGO] PIONEER
INVESTMENTS-Registered Trademark-
PIONEER INVESTMENT MANAGEMENT, INC.
60 STATE STREET 9500-00-0101
BOSTON, MASSACHUSETTS 02109 -C- PIONEER FUNDS DISTRIBUTOR, INC.
www.pioneerfunds.com Y PRINTED ON RECYCLED PAPER
