[PIONEER LOGO]
Pioneer India
Fund
ANNUAL REPORT 10/31/96
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Table of Contents
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Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 15
Notes to Financial Statements 21
Report of Independent Public Accountants 27
Trustees' Fees and Share Ownership 28
Trustees, Officers and Service Providers 29
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Pioneer India Fund
LETTER FROM THE CHAIRMAN 10/31/96
D e a r S h a r e h o l d e r ,
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I welcome you to this report for Pioneer India Fund, covering the year ended
October 31, 1996. We send a special greeting to the Fund's new shareowners,
particularly those in Class C Shares, introduced on January 31.
There's no doubt that this year was a rollercoaster ride for investors in
India. Indian stocks experienced both tremendous rallies and sharp declines.
This type of short-term volatility, while no doubt disappointing when the
tide seems to have turned against us, should not come as a surprise when
investing in one of the world's largest developing markets. As your Fund's
portfolio manager explains in some detail later in this report, we see
compelling reasons to believe that India will survive its current growing
pains and be a better market for it. We continue to take the long view, and
to us India remains an intriguing and promising market.
A final note. As you see, we've given your Fund's annual report a facelift.
The new, improved style reflects what shareowners told us they want to see in
fund reports. Our thanks to all of you who took the time to respond to our
questions. Now you'll find a Table of Contents and consistent, easy-to-read
summaries of portfolio information and performance. There's also a Portfolio
Management Discussion, where your Fund's portfolio manager offers insights
into market conditions, portfolio strategy and results. I encourage you to
read on to learn more about your Fund.
Please contact your investment representative, or us at 1-800-225-6292, if
you have questions about your investment in Pioneer India Fund. Thank you for
your continued support.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
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Pioneer India Fund
PORTFOLIO SUMMARY 10/31/96
P o r t f o l i o D i v e r s i f i c a t i o n
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(As a percentage of total investment portfolio)
Corporate Bonds 0.04%
Convertible Securities 0.19%
Other International Securities 0.87%
Short-Term Cash Equivalents 5.62%
Depositary Receipts for International Stocks 26.07%
International Common Stocks 67.21%
S e c t o r D i s t r i b u t i o n
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(As a percentage of equity holdings)
Energy 4%
Other 6%
Services 7%
Consumer Durables 7%
Financial 9%
Consumer Non-Durables 12%
Utilities 13%
Basic Industries 19%
Capital Goods 23%
1 0 L a r g e s t H o l d i n g s
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(As a percentage of equity holdings)
1. Mahanagar Telephone 6. State Bank of India
Nigam Ltd. 4.25% (G.D.R.) 2.45%
2. Bajaj Auto Ltd. 3.63 7. Great Eastern Shipping Co. 2.43
3. BSES Ltd. (G.D.R.) 3.60 8. Grasim Industries Ltd. 2.34
4. Hindustan Petroleum
Corp. Ltd. 3.18 9. Carborandum Universal, Ltd. 2.33
5. Kirloskar Cummins Ltd. 2.49 10. Hindalco Industries Ltd. 2.26
Fund holdings will vary for other periods.
2
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Pioneer India Fund
PERFORMANCE UPDATE 10/31/96 CLASS A SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
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Net Asset Value
per Share 10/31/96 10/31/95
$6.93 $8.47
Distributions per Share Income Short-Term Long-Term
(10/31/95-10/31/96) Dividends Capital Gains Capital Gains
- - -
I n v e s t m e n t R e t u r n s
- -------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer India Fund at public offering price, compared to the growth of the
MSCI Emerging Markets Asia Free Index. India is just one component of the
Index.
Average Annual Total Returns
(As of October 31, 1996)
Period Net Asset Public Offering
Value Price*
Life-of-Fund -19.25% -21.25%
(6/23/94)
1 Year -18.18 -22.91
Growth of $10,000+
[MOUNTAIN CHART PLOT POINTS]
Pioneer MSCI Emerging
India Markets Asia
Fund* Free Index
6/30/94 9425 10000
7/31/94 9574 10364
10/31/94 9246 11318
1/31/95 7620 9089
4/30/95 7538 9308
7/31/95 7981 10428
10/31/95 6955 9458
1/31/96 6520 9927
4/30/96 8252 11039
7/31/96 6988 9748
10/31/96 5690 9615
* Reflects deduction of the maximum 5.75% sales charge at the beginning of
the period and assumes reinvestment of distributions at net asset value.
+ Index comparison begins 6/30/94. The Morgan Stanley Capital International
(MSCI) Emerging Markets Asia Free Index is an unmanaged, capitalization-
weighted measure of securities trading in eight Asian 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 fees, expenses or sales charges.
You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share
prices fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
3
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Pioneer India Fund
PERFORMANCE UPDATE 10/31/96 CLASS B SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
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Net Asset Value
per Share 10/31/96 10/31/95
$6.80 $8.39
Distributions per Share Income Short-Term Long-Term
(10/31/95-10/31/96) Dividends Capital Gains Capital Gains
- - -
I n v e s t m e n t R e t u r n s
- -------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer India Fund, compared to the growth of the MSCI Emerging Markets
Asia Free Index. India is just one component of the Index.
Average Annual Total Returns
(As of October 31, 1996)
Period If If
Held Redeemed*
Life-of-Fund -19.94% -20.97%
(6/23/94)
1 Year -18.95 -22.19
Growth of $10,000+
[MOUNTAIN CHART PLOT POINTS]
Pioneer MSCI Emerging
India Markets Asia
Fund* Free Index
6/30/94 10000 10000
7/31/94 10157 10364
10/31/94 9783 11318
1/31/95 8048 9089
4/30/95 7944 9308
7/31/95 8396 10428
10/31/95 7300 9458
1/31/96 6839 9927
4/30/96 8614 11039
7/31/96 7283 9748
10/31/96 5739 9615
* 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.
+ Index comparison begins 6/30/94. The Morgan Stanley Capital International
(MSCI) Emerging Markets Asia Free Index is an unmanaged, capitalization-
weighted measure of securities trading in eight Asian 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 fees, expenses or sales charges.
You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share
prices fluctuate, and your shares, when redeemed, may be worth more or less
than their original cost.
4
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Pioneer India Fund
PERFORMANCE UPDATE 10/31/96 CLASS C SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- -------------------------------------------------------------------------------
Net Asset Value
per Share 10/31/96 1/31/96
$6.77 $7.85
Distributions per Share Income Short-Term Long-Term
(1/31/96-10/31/96) Dividends Capital Gains Capital Gains
- - -
I n v e s t m e n t R e t u r n s
- -------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer India Fund, compared to the growth of the MSCI Emerging Markets
Asia Free Index. India is just one component of the Index.
Cumulative Total Returns
(As of October 31, 1996)
Period If If
Held Redeemed*
Life-of-Fund -13.76% -14.62%
(1/31/96)
Growth of $10,000
[MOUNTAIN CHART PLOT POINTS]
Pioneer MSCI Emerging
India Markets Asia
Fund* Free Index
1/31/96 10000 10000
2/29/96 11732 10269
3/31/96 11771 10460
4/30/96 12548 11120
5/31/96 11975 10889
6/30/96 12127 10758
7/31/96 10611 9820
8/31/96 10127 10071
9/30/96 9057 10076
10/31/96 8551 9685
* Reflects deduction of the 1% contingent deferred sales charge (CDSC) at
the end of the period and assumes reinvestment of distributions.
The Morgan Stanley Capital International (MSCI) Emerging Markets Asia Free
Index is an unmanaged, capitalization-weighted measure of securities
trading in eight Asian 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 fees, expenses or sales charges. You cannot invest directly in the
Index.
Past performance does not guarantee future results. Returns and share
prices fluctuate, and your shares, when redeemed, may be worth more or
less than their original cost.
5
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Pioneer India Fund
PORTFOLIO MANAGEMENT DISCUSSION 10/31/96
D e a r S h a r e o w n e r ,
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This annual report for Pioneer India Fund comes to you at the conclusion of a
difficult fiscal year, one that undeniably tested the determination of
investors. The 12 months ended October 31, 1996, were very eventful and
volatile for India and its financial markets.
Politics moved to the forefront, and the results of the national election
held in late May dominated the remainder of the period. The Indian stock
market saw both sharp gains and losses. The Bombay Stock Exchange soared
nearly 45% from its low in January to its high in mid-June. After the
election, for reasons we cover in more detail later in this report, the
Bombay Stock Exchange declined about 22% in U.S. dollar terms, erasing gains
enjoyed early in the year. Despite having to report a loss for the fiscal
year, we can offer you some comfort in that Pioneer India Fund handled the
disruptions in the Indian market better than most similar funds.
National Election Provoked Turmoil, but Reforms Still Underway
As the fiscal year began, the markets in India were waiting for the outcome
of national elections. In May, the ruling Congress party lost in the
parliamentary election due to internal party politics and corruption charges
leveled against its leaders. No single party could muster enough support to
decisively form a government. The initial resulting coalition government
disbanded after less than two weeks, and was replaced with a second coalition
representing 13 political parties.
While the present government is perceived as unstable and lacking conviction
and consensus, its first budget proved it was continuing market and financial
reforms. It introduced minimum taxes on companies previously paying no taxes.
It also hiked prices of coal and petroleum products; although this move has
been unpopular in the short run, the economy should ultimately benefit.
(These products are still being subsidized by the government and price
increases are essential to reduce India's budget deficit.) On the negative
side, the government has shied away from the tougher reforms in the insurance
and oil sectors.
6
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Pioneer India Fund
Economy on Right Track, Despite Growing Pains
Apart from political uncertainty, the fundamentals of India's economy were
also strained by its tight monetary policy. Scarce funds and high interest
rates hurt industrial growth and cut into corporate profitability. The latter
also was hampered by increases in input costs, primarily petroleum products
and coal. Industrial production, growing at 12% for the past two years, is
expected to slow to a more sustainable rate of 7% to 8% annually.
Going forward, we expect India's interest rates to decline further, which
should be positive for equities. With inflation under control, the Reserve
Bank of India has eased money supply through broad-based interest rate
deregulation and cutbacks in reserve ratios. Results have started to show.
Over the last six months of the fiscal year, prime lending rates dropped from
16.5% to 14.5%. There is also good news in the form of an estimated 4% growth
in the agriculture sector for 1996, versus negative growth last year. Good
agricultural income should lead to better demand for consumer and, in turn,
industrial goods. Another encouraging sign, although it doesn't have a direct
effect on the Fund, is the government's new policy allowing foreigners to
invest in corporate debt.
Investing for the Long Term in a Difficult Market
We maintained our value-oriented discipline during the fiscal year. As the
year began, we reduced the Fund's cash position. That helped the Fund
participate in the early-1996 rally. We moved away from non-
Indian stocks and global depositary receipts (GDRs trade in London and
Luxembourg in lieu of direct stocks), when we saw greater value in the local
market. The Fund's largest positions were Bajaj Auto (India's largest two-
wheeler manufacturer), Mahanagar Telephone Nigam (provider of telephone
services in Bombay and Delhi) and State Bank of India (India's largest
commercial bank). We also made sizable investments in Reliance Industries
(India's largest integrated textiles and petrochemical company). These stocks
appeared undervalued while their fundamentals remained strong. The Portfolio
Summary on page 2 has more information on Fund holdings.
To a large extent, prices of Indian stocks were constrained by the high level
of new GDRs that came to market during the fiscal year. Big offerings
7
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Pioneer India Fund
PORTFOLIO MANAGEMENT DISCUSSION 10/31/96 (continued)
included State Bank of India ($370 million), ICICI ($230 million), TELCO
($200 million), Steel Authority of India ($150 million), BSES ($135 million)
and Larsen & Toubro ($135 million). While these issues attracted money that
might otherwise have been invested in local markets, they also reflect
foreign investors' strong appetite for high-quality Indian stocks.
Looking Ahead to More Progress
While this year was particularly tough, we see several events laying a solid
foundation for the future. Among the most significant was the launching of
the National Depository, which will allow paperless trading and introduce
securities trading practices closer to international standards. The
Securities and Exchange Board of India (SEBI) also introduced changes in
broker capital requirements, mutual fund governance and other trading
practices. These reforms should go a long way in boosting investor confidence
and improving India's generally archaic market infrastructure. We commend
SEBI for these changes.
As we begin the Fund's new fiscal year, we believe that the Indian economy is
going through significant structural change, both at the macro-economic level
with privatization and deregulation initiatives and at the corporate level
with a greater drive toward efficiency and investor relations. India has come
a long way toward its goal of integrating with the world economy. India will
be difficult to ignore, given its size and resources. We continue to believe
that it represents a tremendous opportunity for shareowners. While the
short-term ride will be bumpy, India and Pioneer India Fund's longer-term
potential should make it a ride worth taking.
Respectfully,
[SIGNATURE]
David D. Tripple,
Portfolio Manager
8
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Pioneer India Fund
SCHEDULE OF INVESTMENTS 10/31/96
Principal
Amount Value
INVESTMENT IN SECURITIES - 94.4%
CORPORATE BOND - 0.2%
$ 5,000 Vindhya Telelinks, Part B, 16.0%, 1/1/01 $ 8,658
-----------
Total Corporate Bond
(Cost $8,926) $ 8,658
-----------
CONVERTIBLE CORPORATE BOND - 0.0%
$ 28,000 Gujarat Optical, 14.0% 12/31/99 $ 35,294
-----------
Total Convertible Corporate Bond
(Cost $40,166) $ 35,294
-----------
Shares
COMMON STOCKS - 93.3%
Basic Industries - 18.0%
Chemicals - 6.8%
10,000 BASF India Ltd. (E Shares) $ 54,342
25,000 BASF India Ltd. 135,854
5,000 Bayer (India) Ltd. 270,308
4,050 Colour-Chem Ltd. 278,508
168,400 Indo Gulf Fertilizers and Chemicals Corp. Ltd.
(G.D.R.) 126,300
38,200 Indian Petrochemical Corp. Ltd. 118,238
1,000,000 Kothari Petrochemicals Ltd.* 280,112
3,300 Tata Chemicals Ltd. 18,788
22,700 Thirumalai Chemicals Ltd. 43,556
------------
$1,326,006
------------
Iron & Steel - 4.7%
328,400 Essar Steel Ltd. $ 182,598
250,000 Jindal Vijaynagar Steel Ltd.* 40,616
44,000 Steel Authority of India Ltd. (G.D.R.) 368,500
66,500 Tata Iron & Steel Co. Ltd. 337,623
------------
$ 929,337
------------
Metals & Mining - 2.6%
25,350 Hindalco Industries Ltd. $ 417,529
135,700 National Aluminum Co., Ltd. 91,417
------------
$ 508,946
------------
Paper Products - 3.9%
150,000 Ballarpur Industries Ltd. $ 310,924
87,250 ITC Bhadrachalam Paperboards Ltd. 150,305
65,500 Seshasayee Paper & Boards Ltd. 56,051
The accompanying notes are an integral part of these financial statements.
9
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Pioneer India Fund
SCHEDULE OF INVESTMENTS 10/31/96 (continued)
Shares Value
Paper Products (continued)
137,700 Tamil Nadu Newsprint & Papers Ltd. $ 240,300
------------
$ 757,580
------------
Total Basic Industries $3,521,869
------------
Capital Goods - 21.5%
Construction, Building Materials & Engineering - 5.5%
214,000 Alsa Construction & Housing Ltd. $ 54,249
6,424 Associated Cement Companies Ltd. 275,179
23,600 Gujarat Ambuja Cements Ltd. 162,622
50,850 India Cements Ltd. 142,437
100,000 India Cements Ltd. (G.D.R.) 281,500
250,000 Prism Cement Ltd.* 40,616
46,100 Raasi Cement Ltd. 116,219
------------
$1,072,822
------------
Machinery - 7.5%
85,000 Crompton Greaves Ltd. (G.D.R.)* $ 382,075
42,650 Kirloskar Cummins Ltd. 459,951
1,465 Lakshmi Machine Works Ltd. 172,353
2,835 Sandvik Asia Ltd. 133,015
18,700 Siemens India Ltd. 274,345
25,500 Veejay Lakshmi Engineering Works Ltd. 52,143
------------
$1,473,882
------------
Producer Goods - 7.7%
75,000 Cosmo Films Ltd. $ 98,740
97,850 Carborandum Universal, Ltd. 430,458
25,000 Exide Industries Ltd. 57,458
80,800 Fag Precision Bearings Ltd. 203,697
120,000 Garware-Wall Ropes Ltd. 123,361
54,000 GKN Invel Transmission Ltd. 118,740
45,000 Jain Irrigation Systems Ltd. (G.D.S.) 67,500
90,000 Polyplex Corp. 75,630
83,050 Premier Instruments & Constructions Ltd. 318,707
125 SKF Bearings India Ltd. 9,384
------------
$1,503,675
------------
Telecommmunications Equipment - 0.8%
56,000 Gujarat Optical Communications Ltd.* $ 9,882
87,500 Usha Beltron Ltd. (G.D.R.) 136,719
The accompanying notes are an integral part of these financial statements.
10
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Pioneer India Fund
Shares Value
Telecommmunications Equipment (continued)
5,000 Vindhya Telelinks Ltd. $ 7,017
5,000 Vindhya Telelinks Ltd. (New) 8,658
------------
$ 162,276
------------
Total Capital Goods $4,212,655
------------
Consumer Durables - 6.8%
Consumer Durables - 2.6%
50,000 Phillips India Ltd. $ 138,655
88,000 TTK Prestige Ltd. 140,504
92,900 Videocon International Ltd. 107,993
134,000 Voltas Ltd. 121,989
------------
$ 509,141
------------
Motor Vehicles - 4.2%
50,000 Ashok Leyland Ltd. $ 147,759
25,000 Bajaj Auto Ltd. 669,643
1,000 LML Ltd.* 1,120
------------
$ 818,522
------------
Total Consumer Durables $1,327,663
------------
Consumer Non-Durables - 11.2%
Agriculture & Food - 1.8%
11,000 Balrampur Chini Mills, Ltd. $ 19,104
17,800 Britannia Industries Ltd. 114,678
17,400 Dhampur Sugar Mills Ltd. 26,319
109,300 KCP Ltd.* 189,821
------------
$ 349,922
------------
Textiles/Clothes - 8.6%
93,100 Arvind Mills Ltd. (G.D.R.) $ 360,297
41,800 Coats Viyella India Ltd. 62,349
120,000 JCT, Inc. (G.D.R.) 240,000
60,450 Precot Mills Ltd. (New) 159,591
5,000 Raymond Ltd. (G.D.S.) 50,000
25,000 Reliance Industries Ltd. (G.D.R.) 281,250
70,000 Reliance Industries Ltd. 397,059
88,500 SIV Industries Ltd. (G.D.R.) 138,281
------------
$1,688,827
------------
The accompanying notes are an integral part of these financial statements.
11
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Pioneer India Fund
SCHEDULE OF INVESTMENTS 10/31/96 (continued)
Shares Value
Cosmetics - 0.8%
142,500 Godrej Soaps, Ltd. $ 159,664
------------
Total Consumer Non-Durables $2,198,413
------------
Energy - 3.9%
Oil Refining & Drilling - 3.9%
66,000 Hindustan Petroleum Corp., Ltd. $ 586,513
186,600 Madras Refineries Ltd. 176,408
8 Oil & Natural Gas Commission Ltd.* 38
------------
Total Energy $ 762,959
------------
Financial - 8.8%
Commercial Banks - 2.3%
600 State Bank of India $ 3,874
30,000 State Bank of India (G.D.R.)* 453,000
------------
$ 456,874
------------
Finance/Miscellaneous - 6.5%
56,300 20th Century Finance Ltd. $ 56,773
1,000 Housing Development Finance Corp. Ltd. 65,637
10,450 Industrial Credit & Investment Corp. of India Ltd. 17,563
46,000 Industrial Credit & Investment Corp. of India
Ltd. (G.D.R.)* 402,500
120,000 Industrial Development Bank of India Ltd. 351,261
50,000 Pakistan Investment Fund Inc. 268,750
127,100 SCICI Ltd. 98,796
------------
$1,261,280
------------
Total Financial $1,718,154
------------
Services - 5.8%
Hotel/Restaurant - 4.1%
17,000 East India Hotels Ltd. $ 258,810
45,000 Hotel Leelaventure Ltd. 108,718
11,650 Indian Hotels Co. Ltd. 212,931
124,600 Oberoi Associated Hotels Ltd. 223,547
------------
$ 804,006
------------
Pharmaceuticals - 1.6%
2,000 Dabur India Ltd. $ 13,445
54,000 Dr. Reddy's Laboratories Ltd. (G.D.R.) 310,635
------------
$ 324,080
------------
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
Pioneer India Fund
Shares Value
Telecommunication Networks - 0.1%
31,340 Champion Technology Holdings Ltd. $ 4,134
------------
Total Services $ 1,132,220
------------
Technology - 0.2%
Software - 0.2%
75,000 Nucleus Software Exports Ltd.* $ 37,815
------------
Total Technology $ 37,815
------------
Transportation - 2.7%
Ships & Shipping - 2.7%
654,800 Great Eastern Shipping Co. $ 449,373
20,200 Great Eastern Shipping Co. (G.D.R.) 78,275
------------
Total Transportation $ 527,648
------------
Utilities - 11.6%
Electric Utility - 7.6%
10,300 BSES Ltd. $ 56,261
35,000 BSES Ltd. (G.D.R.) 665,000
70,000 CESC Ltd. 109,804
191,900 CESC Ltd. (G.D.R.) 297,445
1,000 Tata Electric Cos. (G.D.R.) 347,500
------------
$ 1,476,010
------------
Telecommunications - 4.0%
124,000 Mahanagar Telephone Nigam Ltd. $ 784,986
------------
Total Utilities $ 2,260,996
------------
Miscellaneous - 2.8%
Conglomerates & Holdings - 2.8%
36,850 Grasim Industries Ltd. $ 432,755
75,000 J.K. Corp. Ltd. (G.D.R.) 112,500
------------
Total Miscellaneous $ 545,255
------------
Total Common Stocks
(Cost $27,351,810) $18,245,647
------------
The accompanying notes are an integral part of these financial statements.
13
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Pioneer India Fund
SCHEDULE OF INVESTMENTS 10/31/96 (continued)
Shares Value
WARRANTS - 0.9%
70,000 CESC Ltd. (Class B)* $ 104,902
48,000 Hotel Leelaventure Ltd.* 64,538
2,700 Peregrine Investment Holdings Ltd.* 506
------------
Total Warrants
(Cost $201,523) $ 169,946
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $27,602,425) $ 18,459,545
-----------
Principal
Amount
TEMPORARY CASH INVESTMENT - 5.6%
Repurchase Agreement - 5.6%
$1,100,000 Chase Manhattan Bank, 10/31/96, 5.50%, repurchase
price of $1,100,000 plus accrued interest on
11/01/96, collateralized by $1,107,000 U.S.
Treasury Note, 5.25%, 12/31/97 $ 1,100,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,100,000) $ 1,100,000
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100.0%
(Cost $28,702,425)(a)(b) $ 19,559,545
------------
* Non-income producing security.
(a) At October 31, 1996, the net unrealized loss on
investments based on cost for federal income
tax purposes of $28,702,425 was as follows:
Aggregate gross unrealized gain for all
investments in which there is an excess of
value over tax cost $ 860,952
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (10,003,832)
------------
Net unrealized loss $ (9,142,880)
------------
(b) At October 31, 1996, the Fund had a capital loss carryforward of
$2,906,393 which will expire between 2002 and 2004 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 1996, aggregated $26,010,450 and $13,965,680,
respectively.
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
Pioneer India Fund
BALANCE SHEET 10/31/96
ASSETS:
Investment in securities, at value (including temporary cash
investment of $1,100,000)(cost $28,702,425) $19,559,545
Cash 78,634
Foreign currencies, at value 1,489,647
Receivables -
Investment securities sold 110,626
Fund shares sold 233,799
Dividends, interest and foreign taxes withheld 169,926
Due from Pioneering Management Corporation 5,118
Other 3,315
-------------
Total assets $21,650,610
-------------
LIABILITIES:
Payables -
Fund shares repurchased $ 323,242
Due to affiliates 35,027
Accrued expenses 72,073
-------------
Total liabilities $ 430,342
-------------
NET ASSETS:
Paid-in capital $33,272,594
Accumulated net realized loss on investments and foreign
currency transactions (2,906,393)
Net unrealized loss on investments (9,142,880)
Net unrealized loss on forward foreign currency contracts
and other assets and liabilities denominated in foreign
currencies (3,053)
-------------
Total net assets $21,220,268
-------------
Net Asset Value Per Share:
(Unlimited number of shares authorized)
Class A (based on $12,388,261/1,786,561 shares) $ 6.93
-------------
Class B (based on $8,275,327/1,216,378 shares) $ 6.80
-------------
Class C (based on $556,680/82,178 shares) $ 6.77
-------------
Maximum Offering price:
Class A $ 7.35
-------------
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
Pioneer India Fund
STATEMENT OF OPERATIONS
For the Year Ended 10/31/96
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of
$127,534) $ 556,282
Interest (net of foreign taxes withheld of
$42) 70,240
Other 17,254
-------------
Total investment income $ 643,776
----------------
EXPENSES:
Management fees $ 305,384
Transfer agent fees
Class A 63,592
Class B 33,358
Class C 1,682
Distribution fees
Class A 39,970
Class B 77,860
Class C 4,698
Accounting 143,109
Custodian fees 170,051
Registration fees 69,278
Professional fees 152,333
Printing 6,508
Fees and expenses of nonaffiliated trustees 17,311
Miscellaneous 37,988
-------------
Total expenses $ 1,123,122
Less management fees waived and expenses
reimbursed by Pioneering Management Corporation (493,680)
Less fees paid indirectly (8,134)
----------------
Net expenses $ 621,308
----------------
Net investment income $ 22,468
----------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments (including capital gains taxes
paid of $108,605) $(2,277,655)
Forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies (194,840) $(2,472,495)
------------- ----------------
Change in net unrealized gain or loss from:
Investments $(4,244,555)
Forward foreign currency contracts and
other assets and liabilities denominated
in foreign currencies (8,221) $(4,252,776)
------------- ----------------
Net loss on investments and foreign currency transactions $(6,725,271)
----------------
Net decrease in net assets resulting from
operations $(6,702,803)
----------------
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
Pioneer India Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended 10/31/96 and 10/31/95
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/96 10/31/95
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss) $ 22,468 $ (64,018)
Net realized loss on investments and foreign currency
transactions (2,472,495) (686,172)
Change in net unrealized loss on investments and foreign
currency transactions (4,252,776) (3,941,018)
------------- --------------
Net decrease in net assets resulting from operations $ (6,702,803) $(4,691,208)
------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.00 and $0.02 per share, respectively) $ - $ (18,504)
Class B ($0.00 and $0.01 per share, respectively) - (3,795)
------------- --------------
Total distributions to shareholders $ - $ (22,299)
------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 36,957,923 $10,164,408
Reinvestment of distributions - 17,182
Cost of shares repurchased (23,423,148) (8,608,922)
------------- --------------
Net increase in net assets resulting from fund share
transactions $ 13,534,775 $ 1,572,668
------------- --------------
Net increase (decrease) in net assets $ 6,831,972 $(3,140,839)
NET ASSETS:
Beginning of year 14,388,296 17,529,135
------------- --------------
End of year (including accumulated undistributed net
investment income of $0 and $0, respectively) $ 21,220,268 $14,388,296
------------- --------------
</TABLE>
<TABLE>
<CAPTION>
'96 Shares '96 Amount '95 Shares '95 Amount
<S> <C> <C> <C> <C>
Class A
Shares sold 3,057,493 $ 27,377,184 616,544 $ 5,912,785
Reinvestment of distributions - - 1,439 14,695
Less shares repurchased (2,262,604) (18,874,186) (641,099) (6,139,994)
------------ ------------- ---------- -------------
Net increase (decrease) 794,889 $ 8,502,998 (23,116) $ (212,514)
------------ ------------- ---------- -------------
Class B
Shares sold 994,158 $ 8,406,214 435,995 $ 4,251,623
Reinvestment of distributions - - 244 2,487
Less shares repurchased (491,660) (4,161,644) (263,505) (2,468,928)
------------ ------------- ---------- -------------
Net increase 502,498 $ 4,244,570 172,734 $ 1,785,182
------------ ------------- ---------- -------------
Class C*
Shares sold 127,681 $ 1,174,525
Less shares repurchased (45,503) (387,318)
------------ -------------
Net increase 82,178 $ 787,207
------------ -------------
</TABLE>
*Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Pioneer India Fund
FINANCIAL HIGHLIGHTS 10/31/96
<TABLE>
<CAPTION>
Year Ended Year Ended 6/23/94 to
10/31/96 10/31/95 10/31/94+
<S> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 8.47 $ 11.28 $ 11.50
---------- ---------- -----------
Increase (decrease) from investment
operations:
Net investment income (loss) $ 0.03 $ (0.01) $ 0.04
Net realized and unrealized loss on
investments and foreign currency
transactions (1.57) (2.78) (0.26)
---------- ---------- -----------
Net decrease from investment operations $ (1.54) $ (2.79) $ (0.22)
Distributions to shareholders from:
Net investment income - (0.02) -
---------- ---------- -----------
Net decrease in net asset value $ (1.54) $ (2.81) $ (0.22)
---------- ---------- -----------
Net asset value, end of period $ 6.93 $ 8.47 $ 11.28
---------- ---------- -----------
Total return* (18.18)% (24.78)% (1.91)%
Ratio of net expenses to average net assets 2.28%+ 2.28%+ 2.25%**
Ratio of net investment income (loss) to
average net assets 0.32%+ (0.14)%+ 0.92%**
Portfolio turnover rate 64% 53% 109%**
Average commission rate paid (1) $0.0266 $ - $ -
Net assets, end of period (in thousands) $12,388 $ 8,397 $11,445
Ratios assuming no waiver of management fees
and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 4.29% 4.21% 6.57%**
Net investment loss (1.69)% (2.07)% (3.40)%**
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction
for fees paid indirectly:
Net expenses 2.25% 2.25% -
Net investment income (loss) 0.35% (0.11)% -
</TABLE>
+ The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sale charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
Pioneer India Fund
FINANCIAL HIGHLIGHTS 10/31/96
<TABLE>
<CAPTION>
Year Ended Year Ended 6/23/94 to
10/31/96 10/31/95 10/31/94+
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 8.39 $ 11.24 $11.50
---------- ---------- -----------
Decrease from investment operations:
Net investment loss $ (0.03) $ (0.07) $ -
Net realized and unrealized loss on
investments and foreign currency
transactions (1.56) (2.77) (0.26)
---------- ---------- -----------
Net decrease from investment operations $ (1.59) $ (2.84) $(0.26)
Distributions to shareholders from:
Net investment income - (0.01) -
---------- ---------- -----------
Net decrease in net asset value $ (1.59) $ (2.85) $(0.26)
---------- ---------- -----------
Net asset value, end of period $ 6.80 $ 8.39 $11.24
---------- ---------- -----------
Total return* (18.95)% (25.31)% (2.26)%
Ratio of net expenses to average net assets 3.15%+ 3.01% + 3.21% **
Ratio of net investment loss to average net
assets (0.45)%+ (0.86)%+ (0.01)%**
Portfolio turnover rate 64% 53% 109% **
Average commission rate paid (1) $0.0266 $ - $ -
Net assets, end of period (in thousands) $ 8,275 $ 5,991 $6,084
Ratios assuming no waiver of management fees
and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 5.23% 4.91% 7.50% **
Net investment loss (2.53)% (2.76)% (4.28)%**
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction
for fees paid indirectly:
Net expenses 3.13% 2.97% -
Net investment loss (0.43)% (0.82)% -
</TABLE>
+ The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sale charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
Pioneer India Fund
FINANCIAL HIGHLIGHTS 10/31/96
1/31/96 to
10/31/96
CLASS C(a)
Net asset value, beginning of period $ 7.85
------------
Decrease from investment operations:
Net investment loss $ (0.02)
Net realized and unrealized loss on investments and
foreign currency transactions (1.06)
------------
Net decrease in net asset value $ (1.08)
------------
Net asset value, end of period $ 6.77
------------
Total return* (13.76)%
Ratio of net expenses to average net assets 3.12% **+
Ratio of net investment loss to average net assets (0.42)%**+
Portfolio turnover rate 64%
Average commission rate paid (1) $ 0.0266
Net assets, end of period (in thousands) $ 557
Ratios assuming no waiver of management fees and assumption
of expenses by PMC and no reduction for fees paid indirectly:
Net expenses 4.63% **
Net investment loss (1.93)% **
Ratios assuming waiver of management fees and assumption of
expenses by PMC and reduction for fees paid indirectly:
Net expenses 3.06% **
Net investment loss (0.36)%**
(a) Class C shares were first publicly offered on January 31, 1996.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sale charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
Pioneer India Fund
NOTES TO FINANCIAL STATEMENTS 10/31/96
1. Organization and Significant Accounting Policies
Pioneer India Fund (the Fund) is a Delaware business trust registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to seek long-term
growth of capital by investing in a portfolio consisting primarily of equity
securities of companies in India.
The Fund offers three classes of shares--Class A, Class B and Class C shares.
Class C shares were first publicly offered on January 31, 1996. Shares of
Class A, Class B and Class C each represent an interest in the same portfolio
of investments of the Fund and have equal rights to voting, redemptions,
dividends and liquidation, except that each class of shares can bear
different transfer agent and distribution fees, and have exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B and Class C shareholders, respectively.
The Fund's financial statements have been prepared in conformity with
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates. The following is a summary
of significant accounting policies consistently followed by the Fund, which
are in conformity with those generally accepted in the investment company
industry:
A. Security Valuation
Security transactions are recorded on trade date. Each day, securities are
valued at the last sale price on the principal exchange where they are
traded. Securities that have not traded on the date of valuation, or
securities for which sale prices are not generally reported, are valued at
the mean between the last bid and asked prices. Securities for which
market quotations are not readily available are valued at their fair
values as determined by, or under the direction of, the Board of Trustees.
Trading in foreign securities is substantially completed each day at
various times prior to the close of the New York Stock Exchange. The
values of such securities used in computing the net asset value of the
Fund's shares are determined as of such times. Dividend income is recorded
on the ex-dividend date, except that certain dividends from foreign
securities where the ex-dividend date may have passed are recorded as soon
as the Fund is informed of the data in the exercise of reasonable
21
<PAGE>
Pioneer India Fund
NOTES TO FINANCIAL STATEMENTS 10/31/96 (continued)
diligence. Interest income is recorded on the accrual basis, net of
unrecoverable foreign taxes withheld at the applicable country rates.
Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
It is the Fund's practice to first select for sale those securities that
have the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
The Fund's investments in countries with limited or developing markets,
such as India, may subject the Fund to greater degree of risk than in a
developed market. Risks associated with these developing markets,
attributable to political, social or economic factors, may affect the
price of the Fund's investments and income generated by these investments,
as well as the Fund's ability to repatriate such amounts.
In addition, delays are common in registering transfers of securities in
India, and the Fund may be unable to sell portfolio securities until the
registration process is completed. At October 31, 1996, the value of the
Fund's investments undergoing the registration process amounted to $1,953,408
or 9.2% of total net assets.
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
22
<PAGE>
Pioneer India Fund
any resulting unrealized gains or losses are recorded in the Fund's financial
statements. The Fund records realized gains and losses at the time a
portfolio hedge is offset by entry into a closing transaction or extinguished
by delivery of the currency. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
the contract and from unanticipated movements in the value of foreign
currencies relative to the U.S. dollar.
D. Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if
any, to its shareholders. Therefore, no federal income tax provision is
required.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on net realized capital gains in
certain countries. The required capital gains taxes, if any, are
determined in accordance with local tax laws. In determining daily net
asset value, the Fund estimates the reserve for capital gains taxes, if
any, associated with net unrealized gains on certain portfolio securities.
The estimated reserve for capital gains taxes, if any, is based on the
holding periods of such securities and the related tax rates, tax loss
carryforward (if applicable) and other such factors. During the year ended
October 31, 1996, the Fund paid $108,605 in capital gains taxes on the
sale of certain foreign securities.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
At October 31, 1996, the Fund has reclassified $280,977 and $22,468 from
paid-in capital and accumulated undistributed net investment income,
respectively, to accumulated net realized loss on investments and foreign
currency transactions. 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.
23
<PAGE>
Pioneer India Fund
NOTES TO FINANCIAL STATEMENTS 10/31/96 (continued)
E. Fund Shares
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations are absorbed by Pioneer Funds
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $28,328
in underwriting commissions on the sale of fund shares during the year
ended October 31, 1996.
F. Class Allocations
Distribution fees are calculated based on the average daily net asset
value attributable to Class A, Class B and Class C shares of the Fund,
respectively. Shareholders of each class share all expenses and fees paid
to the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in each
class and the ratable allocation of related out-of-pocket expense (see
Note 3). Income, common expenses and realized and unrealized gains and
losses are calculated at the Fund level and allocated daily to each class
of shares based on the respective percentage of adjusted net assets at the
beginning of the day.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different
transfer agent and distribution fees.
G. Repurchase Agreement
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or subcustodians. The
Fund's investment adviser, Pioneering Management Corporation (PMC), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
2. Management Agreement
PMC manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 1.25% of the
Fund's average daily net assets.
24
<PAGE>
Pioneer India Fund
PMC has agreed not to impose a portion of its management fee and to assume
other operating expenses of the Fund to the extent necessary to limit Class A
expenses to 2.25% of the average daily net assets attributable to Class A
shares; the portion of the Fund-wide expenses attributable to Class B and
Class C shares will be reduced only to the extent that such expenses are
reduced for Class A shares. PMC's agreement is voluntary and temporary and
may be revised or terminated at any time.
In addition, under the management agreement, certain other services and
costs, including accounting, regulatory reporting and insurance premiums, are
paid by the Fund.
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 management 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% of
such gross assets up to $15 million; 0.20% of the next $30 million; 0.40% of
the next $15 million; and 0.60% of the excess over $60 million.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in
due to affiliates is $24,421 in transfer agent fees payable to PSC at October
31, 1996.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A
Plan, Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the
Investment Company Act of 1940. Pursuant to the Class A Plan, the Fund pays
PFD a service fee of up to 0.25% of the Fund's average daily net assets in
reimbursement of its actual expenditures to finance activities primarily
intended to result in the sale of Class A shares. Pursuant to the Class B
Plan and the Class C Plan, the Fund pays PFD 1.00% of the average daily net
assets attributable to each class of shares. The fee consists of a 0.25%
service fee and a 0.75% distribution fee paid as compensation for personal
25
<PAGE>
Pioneer India Fund
NOTES TO FINANCIAL STATEMENTS 10/31/96 (continued)
services and/or account maintenance services or distribution services with
regard to Class B and Class C shares. Included in due to affiliates is
$10,606 in distribution fees payable to PFD at October 31, 1996.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of
purchase. Class B shares that are redeemed within 6 years of purchase are
subject to a CDSC at declining rates beginning at 4.0%, based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%. Proceeds from the
CDSC are paid to PFD. For the year ended October 31, 1996, CDSC's in the amount
of $128,275 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
October 31, 1996, the Fund's expenses were reduced by $8,134 under such
arrangements.
6. Other
During the year ended October 31, 1996, PMC reimbursed the Fund $17,254 in
connection with costs incurred on certain portfolio transactions.
26
<PAGE>
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, including the schedule of
investments, of Pioneer India Fund as of October 31, 1996, and the related
statement of operations, the statements of changes in net assets, and the
financial highlights for the periods presented. These financial statements
and the financial highlights are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1996, by correspondence with the
custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer India Fund as of October 31, 1996, the results of its operations, the
changes in its net assets, and the financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
December 4, 1996
27
<PAGE>
Pioneer India Fund
TRUSTEES' FEES AND SHARE OWNERSHIP 10/31/96
T r u s t e e s ' F e e s , P r i n c i p a l S h a r e h o l d e r s
a n d S h a r e O w n e r s h i p o f T r u s t e e s a n d
O f f i c e r s ( U n a u d i t e d )
The aggregate remuneration paid by the Fund to nonaffiliated trustees and
officers during the year ended October 31, 1996 was $12,351, plus expenses
incurred in attending trustees meetings of $3,428. Fees of trustees who are
affiliated with or "interested persons" of Pioneering Management Corporation
and Pioneer Funds Distributor, Inc., investment adviser and principal
underwriter, respectively, of the Fund ($1,000 in 1996) are reimbursed to the
Fund by Pioneering Management Corporation in accordance with the management
agreement with the Fund. At October 31, 1996, the trustees and officers of
the Fund owned beneficially 14,774 of Class A shares of the Fund (0.8% of the
outstanding Class A shares.) The Pioneer Group, Inc., the parent company of
Pioneering Management Corporation and Pioneer Funds Distributor, Inc., is a
publicly held corporation of which Mr. Cogan, Chairman and President of the
Fund, owned approximately 14% of the outstanding shares of capital stock at
October 31, 1996.
28
<PAGE>
Pioneer India Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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
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
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr
Shareholder Services and Transfer Agent
Pioneering Services Corporation
29
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us
for assistance or information.
You can call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Or write to us at:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
This report must be preceded or accompanied by a current Fund prospectus.
[PIONEER LOGO] Pioneer Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109
1296-3833
(c) Pioneer Funds Distributor, Inc.
[Recycle Logo] Printed on Recycled Paper
