[LOGO}
Pioneer
India
Fund
SEMIANNUAL REPORT
APRIL 30, 1995
<PAGE>
PIONEER INDIA FUND
DEAR SHAREOWNERS,
Pioneer India Fund reached the midpoint of its second fiscal year on April 30,
1995. Emerging markets as a group experienced a variety of setbacks since we
last reported to you, and India was no exception. In part, these problems
stemmed from the devaluation of the Mexican peso, the decline of the U.S. dollar
and the weakening of three major Latin American economies. Because of these
difficulties, global investors reduced their asset allocations to many emerging
markets.
These events affected your Fund's net asset value, which stood at $9.18 per
share on April 30, 1995, for Class A shares, versus $11.28 on October 31, 1994.
This translated into a total return of -18.47% at net asset value, -23.17% for
shareowners who paid the maximum 5.75% sales charge. For Class B shares, the
April 30 net asset value was $9.13 per share, compared to $11.24 on October 31.
The total return for Class B shares was -18.72% if shares were held throughout
the period, and -21.98% if shares were redeemed. Comparatively, however, your
Fund performed slightly better than the Indian stock markets as a whole. For the
same six-month time period Indian equities -- as represented by the
International Finance Corporation (IFC) Investable India Index -- had a total
return of -25.13%.
We believe that this six-month time frame is not indicative of the Fund's
long-term potential. These short-term results, however, do remind us of the
volatility inherent in emerging stock markets such as those in India. The good
news is that our experience has shown that price declines often provide
attractive buying opportunities. We strongly believe India offers great growth
potential for investors who can accept short-term volatility, and that the Fund
will offer shareowners attractive returns over the long term.
Your Fund's Objective is Long-Term Growth
Your Fund is managed by Pioneering Management Corporation (PMC), utilizing the
partnership between PMC and Investment Trust of India Limited (ITI). ITI is a
leading Indian financial services provider, and so plays an important role in
managing the Fund's investments in the Indian securities markets, under PMC's
supervision. We think PMC's global perspective on emerging markets, combined
with ITI's domestic Indian market experience will prove to be a powerful formula
for success.
Pioneer India Fund pursues long-term growth of capital by investing in a
portfolio consisting primarily of equity securities of Indian companies. Under
normal circumstances, at least 65% of Fund assets will be invested in equity
securities of Indian companies, and the remainder will be invested in equity
securities of issuers (other than Indian companies) which may benefit from the
growth of the Indian economy, debt securities issued by the Indian government or
Indian companies, and non-Indian short-term investments.
As of April 30, 1995, more than 70% of the portfolio was invested in Indian
companies, through local shares or Global Depositary Receipts (GDRs). GDRs are
issued by Indian companies, denominated in U.S. dollars, traded in London or
Luxembourg, and convertible at any time into local shares. Since GDRs are traded
and held outside of India, they often provide greater liquidity than local
Indian shares. The price of a GDR generally reflects the price of the company's
locally traded shares, and so GDR holders participate in the stock price
movement, as well as the dividends and voting rights that local shareowners
enjoy. GDRs -- currently about 50% of the portfolio -- are attractive securities
because their prices have recently been trading at discounts to the prices of
local shares, which we believe will benefit the Fund in the near-term.
Your Fund's management has been carefully selecting investments we think offer
good value and will provide superior long-term growth. We have taken special
care with direct stock investments to ensure that the Fund's portfolio has
sufficient liquidity, and we expect to increase holdings in local stocks as
rapidly as is possible and prudent. As is often the case during a fund's early
<PAGE>
existence, the amount of cash in the portfolio was high -- 29% as of April 30.
We expect the cash position to decrease as specific stocks hit our target prices
for purchase.
Indian Stocks Continue to Offer Strong Growth Prospects
Lower prices enabled your management to locate some very successful buying
opportunities. Indian Petrochemical Corp., Ltd., representing 5% of the Fund,
has had a 12% gain since December 1994, while the market was down 20%. JCT Ltd.,
representing 4% of the portfolio, posted a 40% gain between February and March
of this year. Sanghi Polyesters is a textile company that was sold after posting
a gain of 60%. A recent purchase is Cosmo Films, Ltd. -- a leading manufacturer
of packaging film, a market we expect to grow 25% per year over the next three
years. Cosmo Films, Ltd. is expanding its capacity by modest spending on
specialized equipment, and in so doing, we expect it will deliver growth at a
relatively low cost.
Part of the reason for the Fund's high cash position is to enable the Fund to
take part in initial public offerings (IPOs). The Fund has recently participated
in three IPOs we feel offer great growth potential. These are: Gujarat Optical
Communications, which manufactures optical fiber cables for use in rapidly
growing infrastructure sectors such as telecommunications, power and railways;
Jindal Vijaynagar Steel, a steel producer; and Prism Cement, Ltd., an Indian
cement company we believe is well-positioned to take advantage of the
outstanding growth in infrastructure and housing.
Looking Ahead
While we recognize that this has been a disappointing period for investors in
the Fund, we see great opportunity in the coming years for patient shareowners.
India's future remains bright despite the political and macro-economic turmoil
of the past six months. Beginning in October and November of 1994, the Congress
Party, which presently leads the weak coalition government, suffered losses in
state elections. On the economic front, inflation and interest rates have moved
up. These events all took a toll on Indian stock prices and the Fund's
performance. Importantly, however, we believe emerging markets as a group --
including India -- reached a bottom in March when Argentina completed
negotiations on a financial aid rescue package and restored investor confidence
in Latin America. The recent decline in U.S. interest rates also has helped
restore confidence in emerging markets worldwide. In India, economic and
corporate earnings growth continue to be strong, exports are up sharply,
inflation has fallen, and the domestic savings rate has risen. The recent
decline in stock prices also has created an opportune setting for careful stock
selection.
We believe other domestic developments in India also bode well for
the future. SEBI -- the Securities Regulatory Board of India -- has taken
dramatic steps toward fulfilling its regulatory function with regard to the
activities of brokers and companies. SEBI recently took action against brokers
accused of manipulating stock prices and also has limited forward trading. We
believe these changes are indicative of the continued progress India is making
to modernize its financial markets, and there is little doubt that these changes
will benefit investors in the long run.
In closing, we would like to welcome you again to Pioneer India Fund and hope
you share our optimism for its potential long-term value. Pioneer India Fund is
a young fund in an emergent economy, and we believe that over time it should
offer shareowners superior and dynamic growth potential. The following pages
provide the Fund's audited portfolio and financial statements through April 30,
1995. If you have any questions about your investment in Pioneer India Fund,
please contact your investment representative, or call Pioneer at
1-800-225-6292.
Respectfully submitted,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President,
Pioneer India Fund
June 9, 1995
2
<PAGE>
PIONEER INDIA FUND
SCHEDULE OF INVESTMENTS
April 30, 1995
Principal
Amount (a) Value
- ----------- -----------
INVESTMENT IN SECURITIES -- 71.0%
DEBENTURES -- 7.0%
$ 400,000 Ballarpur Industries, Conv., 4.00%, 4/1/99 .......... $ 373,000
230,000 Essar Gujurat, Conv., 5.50%, 8/5/98 ................. 265,650
INR 28,000 Gujurat Optical, Non-Conv., 14.00%, 12/31/99* ....... 48,994
INR 25,000 Prism Cements, Non-Conv., 13.50%, 1/31/15* .......... 101,805
400,000 Tata Iron & Steel Co., Conv., 2.25%, 4/1/99* ........ 341,000
-----------
TOTAL DEBENTURES (Cost $1,487,719) .................. $ 1,130,449
-----------
Shares
----------
COMMON STOCKS -- 62.6%
BASIC INDUSTRIES -- 11.5%
Chemicals -- 5.4%
50,000 EID Parry (G.D.R.) .................................. $ 175,000
42,100 IG Petrochemicals ................................... 136,617
65,000 Indo Gulf Fertilizers (G.D.R.) 144A ................. 135,687
50,000 Southern Petrochemicals (G.D.R.) 144A ............... 431,250
-----------
$ 878,554
-----------
Electrical Equipment (Telecom) -- 3.0%
56,000 Gujurat Optical Communications* ..................... $ 17,816
9,300 Sterlite Industrial, Ltd. (G.D.R.) .................. 124,388
15,000 Telephone Cables, Ltd. .............................. 33,405
15,000 Usha Beltron (G.D.R.) ............................... 87,225
32,500 Usha Beltron (G.D.R.) 144A .......................... 188,988
5,000 Vindhya Telelink .................................... 35,950
-----------
$ 487,772
-----------
Iron & Steel -- 0.6%
250,000 Jindal Vijayanagar Steel* ........................... $ 89,477
-----------
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
PIONEER INDIA FUND
SCHEDULE OF INVESTMENTS
April 30, 1995 (continued)
Shares Value
- ----------- -----------
Metals & Mining -- 2.5%
45,500 Indian Aluminum (G.D.R.) 144A ....................... $ 409,500
-----------
TOTAL BASIC INDUSTRIES .............................. $ 1,865,303
-----------
CAPITAL GOODS -- 3.1%
Construction & Building Materials -- 1.3%
75 Associated Cement Companies, Ltd. ................... $ 9,067
9,000 Larsen & Toubro ..................................... 71,582
250,000 Prism Cement, Ltd.* ................................. 93,454
9,590 Unitech, Ltd. ....................................... 37,222
-----------
$ 211,325
-----------
Producer Goods -- 1.8%
50,000 Premier Instruments ................................. $ 297,463
-----------
TOTAL CAPITAL GOODS ................................. $ 508,788
-----------
CONSUMER DURABLES -- 1.0%
Consumer Durables -- 1.0%
5,000 BPL, Ltd. ........................................... $ 24,656
45,000 Videocon International (G.D.R.) ..................... 144,000
-----------
TOTAL CONSUMER DURABLES ............................. $ 168,656
-----------
CONSUMER NON-DURABLES -- 15.9%
Agriculture & Food -- 0.9%
4,400 Balarampur Chini Mills .............................. $ 37,795
750 Dhampur Sugar Mills* ................................ 4,367
28,500 KCP, Ltd.* .......................................... 93,844
225 Tata Tea, Ltd. ...................................... 2,434
-----------
$ 138,440
-----------
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
PIONEER INDIA FUND
SCHEDULE OF INVESTMENTS
April 30, 1995 (continued)
Shares Value
- ----------- -----------
Textiles/Clothes -- 15.0%
53,100 Arvind Mills, Ltd. (G.D.R.)* ........................ $ 199,125
40,000 Arvind Mills, Ltd. (G.D.R.) 144A* ................... 150,000
90,000 Garden Silk Mills ................................... 157,480
28,300 Garden Silk Mills (G.D.R.) .......................... 194,563
18,000 JCT, Ltd. (G.D.R.) .................................. 324,000
14,500 JCT, Ltd. (G.D.R.) 144A ............................. 261,000
40,000 Raymond Woolen Mills (G.D.S.) 144A .................. 562,500
4,300 Sanghi Polyesters ................................... 5,267
79,700 Sanghi Polyesters (G.D.R.) 144A ..................... 448,312
28,500 South Indian Viscose (G.D.R.) 144A .................. 124,688
-----------
$ 2,426,935
-----------
TOTAL CONSUMER NON-DURABLES ......................... $ 2,565,375
-----------
ENERGY -- 6.1%
Oil Refining & Drilling -- 6.1%
10,500 Bharat Petrol Corp. ................................. $ 90,193
9,000 Hindustan Petroleum Corp., Ltd. ..................... 87,473
44,000 Indian Petrochemical Corp., Ltd. (G.D.S.) 144A* ..... 682,110
28,200 Indian Petrochemical Corp., Ltd.* ................... 126,275
100 Oil & Natural Gas Commission* ....................... 4,486
-----------
TOTAL ENERGY ........................................ $ 990,537
-----------
FINANCIAL -- 1.8%
Commercial Banks -- 1.2%
34,500 State Bank of India* ................................ $ 186,590
-----------
Finance (Misc.) -- 0.6%
31,300 20th Century Finance Corp., Ltd.* ................... $ 93,604
-----------
TOTAL FINANCIAL ..................................... $ 280,194
-----------
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
PIONEER INDIA FUND
SCHEDULE OF INVESTMENTS
April 30, 1995 (continued)
Shares Value
- ----------- -----------
SERVICES -- 7.4%
Broadcasting & Media -- 2.2%
75,000 Cosmo Films, Ltd.* .................................. $ 362,682
-----------
Hotel/Restaurant -- 1.8%
20,300 East India Hotels (G.D.R.) .......................... $ 289,326
-----------
Pharmaceuticals -- 3.4%
36,000 Dr. Reddy's Labs (G.D.R.) ........................... $ 366,750
18,000 Dr. Reddy's Labs (G.D.R.) 144A ...................... 183,375
-----------
$ 550,125
-----------
TOTAL SERVICES ...................................... $ 1,202,133
-----------
TRANSPORTATION -- 1.7%
Ships & Shipping -- 1.7%
41,200 Great Eastern Shipping (G.D.R.) ..................... $ 280,778
-----------
TOTAL TRANSPORTATION ................................ $ 280,778
-----------
UTILITIES -- 5.1%
Electric Utility -- 2.3%
1,000 Tata Electric Companies (G.D.R.) .................... $ 367,500
-----------
Telecommunications -- 2.8%
10,000 Korea Mobile Telecom (G.D.S.)* ...................... $ 292,500
30,000 Mahanagar Telephone Nigam, Ltd. ..................... 153,900
-----------
$ 446,400
-----------
TOTAL UTILITIES ..................................... $ 813,900
-----------
MISCELLANEOUS -- 9.0%
Conglomerates & Holdings -- 9.0%
15,000 Grasim Industries* .................................. $ 267,239
12,000 Indian Rayon & Industries, Ltd. (G.D.R.) ............ 183,030
13,000 Indian Rayon & Industries, Ltd. (G.D.R.) 144A ....... 198,283
75,000 JK Corp (G.D.R.) 144A ............................... 403,125
25,000 Reliance Industries (G.D.R.)* ....................... 404,688
------------
TOTAL MISCELLANEOUS ................................. $ 1,456,365
------------
TOTAL COMMON STOCKS (Cost $13,494,422) .............. $ 10,132,029
------------
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
PIONEER INDIA FUND
SCHEDULE OF INVESTMENTS
April 30, 1995 (continued)
Shares Value
- ----------- ----------
WARRANTS -- 0.2%
10,000 Tata Engineering (G.D.R.) 144A ...................... $ 31,300
-----------
TOTAL WARRANTS (Cost $25,703) ....................... $ 31,300
-----------
UNITS -- 1.2%
14,500 South Indian Viscose (G.D.R.) ....................... $ 197,562
-----------
TOTAL UNITS (Cost $282,575) ......................... $ 197,562
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $15,290,419) (b) (c) ....................... $11,491,340
-----------
Principal
Amount (a) TEMPORARY CASH INVESTMENTS -- 29.0%
- -----------
$4,700,000 Repurchase agreement with Brown Brothers
Harriman & Co., dated 4/28/95, bearing 5.90%, to be
repurchased at $4,700,000 plus accrued interest on
5/1/95, collateralized by $4,675,000 U.S. Treasury
Note, bearing 6.75%, due 5/31/99 .................... $ 4,702,311
-----------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $4,700,000) ................................. $ 4,702,311
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENTS--100.0%
(Cost $19,990,419) .............................. $16,193,651
===========
INR = Indian Rupee
* Non-income producing security.
144A Security 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
April 30, 1995, the value of these securities amounted to $4,210,118
or 27.6% of total net assets.
(a) Principal amount and interest rate are stated in U.S. Dollar unless
otherwise noted.
(b) At April 30, 1995, the net unrealized depreciation on investments
based on cost for federal income tax purposes of $15,290,419 was as
follows:
Aggregate gross unrealized appreciation for
all investments in which there is an
excess of value over tax cost ................. $ 141,863
Aggregate gross unrealized depreciation for
all investments in which there is an
excess of tax cost over value ................. (3,940,942)
------------
Net unrealized depreciation ..................... $(3,799,079)
============
(c) At October 31, 1994, the Fund had a capital loss carry forward of
$116,086 which will expire in the year 2002.
Purchases and sales of investment securities (excluding temporary cash
investments) for the six months ended April 30, 1995, aggregated $4,604,514
and $3,814,481, respectively.
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
PIONEER INDIA FUND
BALANCE SHEET
April 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Assets:
Investment in securities, at value (including temporary cash investments
of $4,702,311) (cost $19,990,419; see Schedule of Investments and Note 1) ................................... $ 16,193,651
Foreign currencies, at value (Note 1) ......................................................................... 566,947
Cash .......................................................................................................... 331,662
Receivables--
Investment securities sold .................................................................................. 159,590
Trust shares sold ........................................................................................... 104,538
Dividends, interest and foreign taxes withheld (Note 1) ..................................................... 11,412
Due from Pioneering Management Corporation (Note 2) ......................................................... 126,658
Other ......................................................................................................... 1,097
------------
Total assets ............................................................................................ $ 17,495,555
------------
Liabilities:
Payables--
Investment securities purchased ............................................................................. $ 1,553,540
Trust shares repurchased .................................................................................... 539,784
Accrued expenses (Notes 2, 3 and 4) ........................................................................... 140,280
------------
Total liabilities ....................................................................................... $ 2,233,604
------------
Net Assets:
Paid-in capital (Note 1) ...................................................................................... $ 19,717,735
Accumulated net investment loss (Note 1) ...................................................................... (43,598)
Accumulated net realized loss on investments and foreign currency transactions (Notes 1 and 5) ................ (614,183)
Net unrealized loss on investments (Note 1) ................................................................... (3,799,079)
Net unrealized gain on forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies (Notes 1 and 5) ........................................................... 1,076
------------
Total net assets ........................................................................................ $ 15,261,951
============
Net Asset Value Per Share:
Class A -- (based on $8,866,105/966,270 shares of beneficial interest outstanding--unlimited
number of shares authorized) ................................................................................ $9.18
=====
Class B -- (based on $6,395,846/700,858 shares of beneficial interest outstanding--unlimited
number of shares authorized) ................................................................................ $9.13
=====
Maximum Offering Price:
Class A ....................................................................................................... $9.74
=====
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
PIONEER INDIA FUND
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
Investment Income (Note 1):
Dividends (net of foreign taxes withheld of $3,233) ................................................. $ 24,670
Interest ............................................................................................ 133,193
-----------
Total investment income ........................................................................... $ 157,863
-----------
Expenses:
Management fees (Note 2) ............................................................................. $ 98,688
Distribution fees (Note 4)
Class A ............................................................................................ 9,631
Class B ............................................................................................ 30,972
Transfer fees (Note 3)
Class A ............................................................................................ 21,324
Class B ............................................................................................ 12,755
Registration fees .................................................................................... 21,100
Professional fees .................................................................................... 73,925
Accounting (Note 2) .................................................................................. 97,025
Custodian fees ....................................................................................... 43,920
Printing ............................................................................................. 5,068
Fees and expenses of nonaffiliated trustees .......................................................... 3,540
Miscellaneous ........................................................................................ 17,824
-----------
Total expenses ..................................................................................... $ 435,772
-----------
Less Management fees waived and expenses assumed by
Pioneering Management Corporation (Note 2) ....................................................... (235,352)
-----------
Net expenses ....................................................................................... $ 200,420
-----------
Net investment loss .............................................................................. $ (42,557)
-----------
Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions:
Net realized loss from:
Investments (Note 1) ............................................................. $ (493,787)
Forward foreign currency contracts and other assets and
liabilities denominated in foreign currencies (Notes 1 and 5) .................. (4,310) $ (498,097)
----------- -----------
Net unrealized gain (loss) from:
Increase in net unrealized loss on investments (Note 1) .......................... $(2,846,940)
Increase in net unrealized gain on forward foreign currency
contracts and other assets and liabilities denominated in
foreign currencies (Notes 1 and 5) ............................................. 1,076 (2,845,864)
----------- -----------
Net loss on investments and foreign currency transactions .......................... $(3,343,961)
-----------
Net decrease in net assets resulting from operations ............................... $(3,386,518)
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
PIONEER INDIA FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 1995 and for the Period Ended October 31,
1994*
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1995 OCTOBER 31, 1994*
---------------- -----------------
<S> <C> <C> <C> <C>
From Operations:
Net investment income (loss) ............................................................... $ (42,557) $ 21,258
Net realized loss on investments and foreign currency transactions ......................... (498,097) (116,086)
Increase in net unrealized loss on investments and foreign currency transactions ........... (2,845,864) (952,139)
------------ ------------
Net decrease in net assets resulting from operations ..................................... $ (3,386,518) $ (1,046,967)
------------ ------------
Distributions to Shareholders from:
Net investment income
Class A ($0.02 and $0.00 per share, respectively) ........................................ $ (18,504) --
Class B ($0.01 and $0.00 per share, respectively) ........................................ (3,795) --
------------ ------------
Decrease in net assets resulting from distributions to shareholders .................... $ (22,299) --
------------ ------------
From Trust Share Transactions:
Net proceeds from sale of shares ........................................................... $ 5,820,459 $ 18,773,141
Net asset value of shares issued to shareholders in reinvestment of dividends .............. 17,182 --
Cost of shares repurchased ................................................................. (4,696,008) (1,197,039)
------------ ------------
Increase in net assets resulting from trust share transactions ........................... $ 1,141,633 $ 17,576,102
------------ ------------
Net increase (decrease) in net assets .................................................... $ (2,267,184) $ 16,529,135
Net Assets:
Beginning of period ........................................................................ 17,529,135 1,000,000
------------ ------------
End of period (including accumulated net investment (loss) income of $(43,598) and
$21,258, respectively) ................................................................... $ 15,261,951 $ 17,529,135
============ ============
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1995 OCTOBER 31, 1994*
--------------------------- ------------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ------------ ------------ -------------
CLASS A
Shares sold ............................................... 328,739 $ 3,203,407 1,026,726 $ 12,289,665
Shares issued to shareholders in
reinvestment of distributions .......................... 1,439 14,695 -- --
Less shares repurchased ................................... (378,696) (3,702,177) (77,155) (913,861)
-------- ----------- ------------ ------------
Net increase (decrease) ................................... (48,518) $ (484,075) 949,571 $ 11,375,804
======== =========== ============ ============
CLASS B
Shares sold ............................................... 261,998 $ 2,617,052 543,869 $ 6,483,476
Shares issued to shareholders in
reinvestment of distributions ........................... 244 2,487 -- --
Less shares repurchased ................................... (102,530) (993,831) (24,462) (283,178)
-------- ----------- ------------ ------------
Net increase .............................................. 159,712 $ 1,625,708 519,407 $ 6,200,298
======== =========== ============ ============
* The Fund commenced operations on June 23, 1994
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
PIONEER INDIA FUND
FINANCIAL HIGHLIGHTS
Selected Data for a Share Outstanding for the Periods Presented
<TABLE>
<CAPTION>
Six Months June 23
Ended to
April 30, October 31,
1995 1994+
--------- -----------
<S> <C> <C>
CLASS A
Net asset value, beginning of period .................................................. $ 11.28 $ 11.50
------- -------
Increase (decrease) from investment operations:
Net investment income (loss) ....................................................... $ (0.01) $ 0.04
Net realized and unrealized loss on investments
and foreign currency related transactions ....................................... (2.07) (0.26)
------- -------
Total decrease from investment operations ....................................... $ (2.08) $ (0.22)
Distribution to shareholders from net investment income ............................... (0.02) --
------- -------
Net decrease in net asset value ....................................................... $ (2.10) $ (0.22)
------- -------
Net asset value, end of period ........................................................ $ 9.18 $ 11.28
======= =======
Total return* ......................................................................... (18.47%) (1.91%)
Ratio of net operating expenses to average net assets ................................. 2.25%** 2.25%**
Ratio of net investment income (loss) to average net assets ........................... (0.25%)** 0.92%**
Portfolio turnover rate ............................................................... 63.59%** 108.73%**
Net assets, end of period (in thousands) .............................................. $ 8,866 $11,445
Ratios assuming no waiver of management fees or assumption of expenses by PMC:
Net operating expenses ........................................................... 5.21%** 6.57%**
Net investment loss .............................................................. (3.21%)** (3.40%)**
CLASS B
Net asset value, beginning of period .................................................. $ 11.24 $ 11.50
------- -------
Decrease from investment operations:
Net investment loss ................................................................ $ (0.04) $ --
Net realized and unrealized loss on investments
and foreign currency related transactions ....................................... (2.06) (0.26)
------- -------
Total decrease from investment operations ....................................... $ (2.10) $ (0.26)
Distribution to shareholders from net investment income ............................... (0.01) --
------- -------
Net decrease in net asset value ....................................................... $ (2.11) $ (0.26)
------- -------
Net asset value, end of period ........................................................ $ 9.13 $ 11.24
======= =======
Total return* ......................................................................... (18.72%) (2.26%)
Ratio of net operating expenses to average net assets ................................. 3.00%** 3.21%**
Ratio of net investment loss to average net assets .................................... (1.00%)** (0.01%)**
Portfolio turnover rate .............................................................. 63.59%** 108.73%**
Net assets, end of period (in thousands) .............................................. $ 6,396 $ 6,084
Ratios assuming no waiver of management fees or assumption of expenses by PMC:
Net operating expenses ........................................................... 6.00%** 7.50%**
Net investment loss .............................................................. (4.00%)** (4.28%)**
</TABLE>
+ The per share data above is based upon average shares and average net
assets outstanding for the period presented.
* 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.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
PIONEER INDIA FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1995
1. Pioneer India Fund (the Fund), a Delaware business trust, is registered under
the Investment Company Act of 1940 as a diversified, open-end management
company.
The Board of Trustees (the Trustees) has authorized the issuance of two
share classes of the Fund, designated as Class A and Class B shares. The shares
of each class represent an interest in the same portfolio of investments of the
Fund and have equal rights to voting, redemption, dividends and liquidation,
except that each class of shares can bear different transfer agent and
distribution fees, and have exclusive voting rights with respect to the
distribution plans that have been adopted by holders of Class A and Class B
shares, respectively.
The following is a summary of significant accounting policies consistently
followed by the Fund, which are in conformity with those generally accepted in
the investment company industry.
A. Investment Securities -- Security transactions are recorded on the date
the securities are purchased or sold. Each day, investments in 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
sales 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 will be valued at their fair value as determined by, or under the
direction of the Trustees. Trading in foreign securities is substantially
completed each day at various times prior to the close of the New York Stock
Exchange. The value of such securities used in computing the net asset value of
the Fund's shares is determined as of such times. Temporary cash investments are
stated at cost plus accrued interest, which approximates market value. Dividend
income is recorded on the ex-dividend date, except that certain dividends from
foreign securities that are not known on the ex-dividend date are recorded as
soon as the Fund is informed of the dividends. Interest income is recorded on
the accrual basis net of unrecoverable foreign taxes withheld at the applicable
country rate.
Gains and losses from 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 first to select for sale those securities
that have the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes. In addition, net realized capital gains on
securities in India give rise to capital gains taxes. It is the Fund's policy to
provide a reserve against net unrealized capital gains on Indian securities held
by the Fund. The Fund paid no capital gains taxes on gains realized on the sale
of Indian securities during the six months ended April 30, 1995.
B. Foreign Currency Translation -- The books and records of the Fund are
maintained in U.S. Dollars. Amounts denominated in foreign currencies are
translated into U.S. Dollars using current exchange rates.
C. Forward Foreign Currency Contracts -- The Fund is authorized to enter
into forward foreign currency contracts (contracts) for the purchase or sale of
a specific foreign currency at a fixed price on a future date as a hedge or
cross-hedge against either specific investment transactions (settlement hedges)
or portfolio positions (portfolio hedges). All contracts are marked to market
daily at the applicable translation rates, and any resulting unrealized gains or
losses are recorded in the Fund's financial statements. The Fund records
realized gains or 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
12
<PAGE>
PIONEER INDIA FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1995 (Continued)
upon entering into these contracts from the potential inability of
counterparties to meet the terms of the contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. Dollar.
As of April 30, 1995, the Fund had not entered into any contracts.
D. Federal 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 provisions are required.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with income tax rules. Therefore,
the source of a portfolio'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 capital, depending on the type
of book/tax differences that may exist.
E. Trust Shares -- The Fund records sales and repurchases of its shares on
the trade date. Net losses, if any, as a result of cancellations are absorbed by
Pioneer Fund Distributor, Inc. (PFD), the principal underwriter for the Fund and
a wholly owned subsidiary of The Pioneer Group, Inc. (PGI). PFD retained $11,164
in underwriting commissions on the sale of trust shares during the six months
ended April 30, 1995. Dividends and distributions to shareholders are recorded
as of the ex-dividend date. Dividends paid by the Fund, if any, with respect to
each class of shares are calculated in the same manner, at the same time and on
the same day and are in the same amount, except that Class A and Class B shares
can bear different transfer agent fee and distribution fees.
F. Class Allocations -- Distribution expenses are calculated based on the
average daily net asset value attributable to Class A and Class B shares of the
Fund, respectively. Shareholders of Class A and Class B share all expenses and
fees paid to the transfer service organization, Pioneering Services Corporation
(PSC), for their services, which are allocated based on the number of accounts
in each class and the ratable allocation of related out-of-pocket expenses (see
Note 3). Income, common expenses and realized and unrealized gains (losses) are
calculated at the Fund level and allocated daily to each class of shares based
on the respective percentage of adjusted net assets at the beginning of the day.
G. Repurchase Agreements -- The Fund may enter into repurchase agreements.
At the time the Fund enters into a repurchase agreement, the value of the
underlying security (collateral), including accrued interest, will be equal to
or exceed the value of the repurchase agreement, and in the case of repurchase
agreements exceeding one day, the value of the underlying security, including
accrued interest, is required during the term of the agreement to be equal to or
exceed the value of the repurchase agreement. The underlying securities for all
repurchase agreements are held in safekeeping in the customer-only account of
the Fund's custodian, or at the Federal Reserve Bank of Boston. If the seller
defaults and the value of the collateral declines, or if bankruptcy proceedings
commence with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.
2. Pioneering Management Corporation (PMC) is the Fund's investment adviser,
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, certain services and costs, including accounting, regulatory
reporting and insurance premiums, are paid by the Fund. Included in Accrued
expenses is $8,750 in accounting fees payable to PMC at April 30, 1995.
13
<PAGE>
PIONEER INDIA FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1995 (Continued)
PMC has agreed not to impose its management fee and to make other
arrangements, if necessary, to absorb certain other expenses of the Fund to the
extent necessary to limit Class A expenses to 2.25% of the average daily net
assets attributable to Class A shares; the portion of the Fund-wide expenses
attributable to Class B shares will be reduced only to the extent such expenses
are reduced for Class A shares. PMC's agreement is voluntary and temporary and
may be revised or terminated at any time.
PMC has appointed ITI Pioneer AMC Ltd. (the Indian Adviser) as the Fund's
adviser in India. In managing the Funds' Indian investments, PMC relies on the
advice and local expertise of the Indian Adviser. The Indian Adviser is a joint
venture between PMC and Investment Trust of India Limited (ITI), a corporation
organized under the laws of India. As compensation for its services under its
Subadvisory Agreement with PMC and the Fund, PMC pays the Indian Adviser a
subadvisory fee at the annual rate from 0.10% to 0.60% of the Fund's average
gross assets invested in India's securities markets, including assets invested
in American, global or other types of depository receipts for securities traded
in India's Securities markets. The annual rate is 0.10% if such gross assets are
less than $15,000,000; 0.20% if such gross assets are greater than $15,000,000
but less than $45,000,000; 0.40% if such gross assets are greater than
$45,000,000 but less than $60,000,000; 0.60% if such gross assets are greater
than $60,000,000.
3. PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in
Accrued expenses is $6,605 in transfer fees payable to PSC at April 30, 1995.
4. The Fund has adopted a Plan of Distribution for both Class A shares (Class A
Plan) and Class B shares (Class B Plan) in accordance with Rule 12b-1 under the
Investment Company Act of 1940 pursuant to which certain distribution fees are
paid to PFD.
Pursuant to the Class A Plan, the Fund reimburses PFD for its actual
expenditures to finance any activity primarily intended to result in the sale of
Class A shares or to provide services to holders of Class A shares.
Reimbursement for such expenditures, if any, may not exceed 0.25% of the Fund's
average annual net assets attributable to Class A shares. The Class B Plan
provides that the Fund will pay a distribution fee at an annual rate of 0.75% of
the Fund's average annual net assets attributable to Class B shares and will pay
PFD a service fee at the annual rate of 0.25% of the Fund's average daily net
assets attributable to Class B shares. Class B shares distribution and service
fees were accrued daily beginning on the commencement of the funds operations.
Included in Accrued expenses is $20,178 in distribution fees payable to PFD at
April 30, 1995.
Class B shares that are redeemed within six years of purchase are subject
to a contingent deferred sales charge (CDSC) at declining rates beginning at
4.0% of the lesser of the current market value at the time of redemption or the
original purchase cost of the shares being redeemed. Proceeds of the CDSC are
paid to PFD. As of April 30, 1995, CDSC in the amount of $6,132 was paid to PFD.
5. Effective November 1, 1994, the Fund adopted Statement of Position 93-4 (SOP
93-4): Foreign Currency Accounting and Financial Statement Presentation for
Investment Companies. In accordance with SOP 93-4, net realized gains and losses
on forward foreign currency transactions and other assets and liabilities
denominated in foreign currencies represent, among other things, the net
14
<PAGE>
PIONEER INDIA FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1995 (Continued)
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 amount actually received. Further, as permitted under SOP 93-4, the
effects of changes in foreign currency exchange rates on investments in
securities are not segregated in the Statement of Operations from the effects of
changes in market price of those securities but are included with the net
realized and unrealized gain or loss on investments in securities.
PIONEER INDIA FUND
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER INDIA FUND:
We have audited the accompanying balance sheet of PIONEER INDIA FUND (a Delaware
business trust), including the schedule of investments as of April 30, 1995, and
the related statement of operations, statements of changes in net assets and
financial highlights for the periods presented. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and 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 April
30, 1995, 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 INDIA FUND as of April 30, 1995, and the results of its operations, the
changes in its net assets and financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
Boston, Massachusetts ARTHUR ANDERSEN LLP
May 26, 1995
15
<PAGE>
PIONEER INDIA FUND
60 State Street
Boston, Massachusetts 02109
OFFICERS
JOHN F. COGAN, JR.
Chairman and President
DAVID D. TRIPPLE
Executive Vice President
JASKARAN S. TEJA
Vice President
NORMAN KURLAND
Vice President
WILLIAM H. KEOUGH
Treasurer
JOSEPH P. BARRI
Secretary
TRUSTEES
JOHN F. COGAN, JR.
RICHARD H. EGDAHL, M.D.
MARGARET B. W. GRAHAM
JOHN W. KENDRICK
MARGUERITE A. PIRET
DAVID D. TRIPPLE
STEPHEN K. WEST
JOHN WINTHROP
INVESTMENT ADVISER
PIONEERING MANAGEMENT
CORPORATION
CUSTODIAN
BROWN BROTHERS
HARRIMAN & CO.
SHAREHOLDER
SERVICES AND
TRANSFER AGENT
PIONEERING SERVICES
CORPORATION
60 State Street
Boston, Massachusetts
02109
PRINCIPAL UNDERWRITER
PIONEER FUNDS
DISTRIBUTOR, INC.
LEGAL COUNSEL
HALE AND DORR
INDEPENDENT PUBLIC
ACCOUNTANTS
ARTHUR ANDERSEN LLP
- --------------------------------------------------------------------------------
Please call Pioneer for information on:
Existing accounts, new accounts, prospectuses,
applications and service forms.............................. 1-800-225-6292
Fund yields and prices...................................... 1-800-225-4321
Toll-free fax............................................... 1-800-225-4240
Retirement plans............................................ 1-800-622-0176
Telecommunications Device for the Deaf (TDD)................ 1-800-225-1997
- --------------------------------------------------------------------------------
When distributed to persons who are not shareowners of the Fund, this report
must be accompanied by an official prospectus, which discusses the objectives,
policies, sales charges, and other information about the Fund.
0695-2524
(C) Pioneer Funds Distributor, Inc.
