<PAGE>
[PIONEER LOGO]
Pioneer
India
Fund
Semiannual Report
April 30, 1996
<PAGE>
Pioneer India Fund
Dear Shareowners,
Pioneer India Fund reached the midpoint of its fiscal year on April 30, 1996.
The past six months were exciting for investors in emerging markets,
particularly India. Developing markets rebounded in late 1995 and moved ahead in
early 1996, as investors began to appreciate the value and growth potential
present in emerging economies.
HOW YOUR FUND PERFORMED
We are pleased to report that Pioneer India Fund achieved excellent performance
over the six months ended April 30, 1996:
CLASS A SHARES
o Net asset value stood at $10.05 per share on April 30, 1996, versus $8.47 on
October 31, 1995, up from a low of $7.52 on November 29, 1995.
o The increase in share value translated into a six-month total return of
18.65% at net asset value and 11.79% at maximum public offering price. For
the past three months alone, the Fund posted a total return of 26.58% at net
asset value.
CLASS B SHARES
o Net asset value was $9.90 per share on April 30, 1996, versus $8.39 per share
on October 31, 1995, up from a low of $7.50 on November 28, 1995.
o The increase in share value provided a total return of 18.00% for the six
months, assuming shares were held the entire period. If shares were sold on
April 30, and the maximum 4% contingent deferred sales charge deducted, total
return would have been 14.00%. For the past three months alone, the Fund
posted a total return of 25.95% at net asset value.
CLASS C SHARES
The Fund introduced Class C shares on January 31, 1996. Since then, they
achieved the following results:
o Net asset value was $9.85 per share on April 30, 1996, versus the
introductory $7.85.
o The increase in share value equalled a total return of 25.48% for the
abbreviated period, assuming shares were held throughout. If shares were sold
and the 1% sales charge deducted at the end of the period, total return would
have been 24.48%.
Your Fund also outpaced small Asian markets as a group. The unmanaged Morgan
Stanley Capital International Emerging Markets Asia - Free Index showed a total
return of 16.71% for the six months through April 30. The Index reflects the
progress of eight Asian stock markets, of which India is just a component. The
following table shows the Fund's results over its relatively brief life, and
illustrates how performance can vary widely in emerging markets over the short
term.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
(As of April 30, 1996)
Class A Shares Net Asset Value Public Offering Price*
-------------- --------------- ---------------------
Life of Fund (6/23/94) -6.90% -9.81%
1 Year 9.48 3.18
Class B Shares If Held If Redeemed**
-------------- ------- ------------
Life of Fund (6/23/94) -7.71% -9.71%
1 Year 8.43 4.43
- --------------------------------------------------------------------------------
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
** Reflects deduction of the maximum 4.0% contingent deferred sales charge at
the end of the period and assumes reinvestment of distributions.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
<PAGE>
A PERIOD OF FAST-PACED CHANGE
For investors in the Indian stock market, the semiannual period was something of
a roller coaster ride. Stock prices were volatile, swinging both ways before
settling higher. At one point, a local market index, the BSE Sensitive Index
(Sensex), hit its lowest level in more than two years. Bouts of heavy selling
occurred as political uncertainties increased, the rupee depreciated after
holding steady for two years and tight monetary policy drove up short-term
interest rates.
It quickly became a market where short-sighted investors lost, but those with
more discipline were rewarded for their perseverance. The Indian market staged a
tremendous rally by mid-February, more than recouping its losses as overseas
investors, drawn by exceptionally low prices, reentered the Indian market with a
vengeance. The rupee also rebounded from an all-time low as foreign money flowed
in, quelling fears of further depreciation.
PORTFOLIO ACTIVITY
We took advantage of reduced prices to build up the Fund's exposure to "blue
chip" Indian stocks. During the past six months, we focused on companies such as
Bajaj Auto, a manufacturer of "two-wheelers", Hindalco Industries, which
produces aluminum, and ICICI, one of the premier financial institutions in
India. Other significant positions in prominent companies include Mahanagar
Telephone Nigam, the basic telephone provider for Delhi and Bombay, State Bank
of India, India's largest commercial bank, and Tata Iron & Steel, an integrated
steel producer. To date, these companies have performed very well in the
portfolio, and we believe they still provide potential for strong gains going
forward.
During the period, we sold non-Indian stocks, including Enron Global Power, a
U.S.-based energy company, and Peregrine Investment, a Hong Kong concern with
brokerage businesses in India. We also preferred direct investments via the
Indian market to global depositary receipts (GDRs), and so sold GDRs and used
the proceeds to increase direct holdings in a variety of companies. At the close
of the period, 65% of the portfolio was invested in direct holdings, with 27% in
GDRs and 8% in short-term cash equivalents.
LOOKING AHEAD
Moving forward, Indian markets are likely to remain somewhat volatile until the
new political electees are situated and the coalition government is functioning
smoothly. We expect monetary policy will also affect the Indian market -- the
unusually tight policy put into place in April is typical of the anti-inflation
focus of an election year and should ultimately be relaxed. The end result
should be an increase in money supply. Since the Indian stock markets have a
very strong correlation with liquidity, we expect them to rally once the
political situation settles.
It is our view that economic reforms in India will continue no matter which
party ultimately comes to power, albeit the pace and focus may differ. However,
given the momentum the past five years of economic liberalization has unveiled,
we are confident that industrial production in India can be sustained at a level
of 7%-10% for the next couple of years, which would lead to strong corporate
earnings growth of 18%-20%. Based on these projections, the markets still appear
undervalued on historic and regional valuation parameters. In other words, we
still view India as particularly fertile ground for long-term stock investors.
On the next few pages you will see the Fund's audited Schedule of Investments
and financial statements as of April 30, 1996. Please call your investment
representative with any questions you have about Pioneer India Fund, or call
Pioneer directly at 1-800-225-6292. We appreciate your support.
Respectfully,
[Signature of John F. Cogan, Jr.]
John F. Cogan, Jr.
Chairman and President,
Pioneer India Fund
2
<PAGE>
Pioneer India Fund
Schedule of Investments
April 30, 1996
PRINCIPAL
AMOUNT VALUE
- --------- -----------
INVESTMENT IN SECURITIES -- 91.8%
DEBENTURE -- 0.1%
$ 28,000 Gujarat Optical, 14.0%, 12/31/99 .................... $ 36,469
-----------
TOTAL DEBENTURE (Cost $40,166) ...................... $ 36,469
-----------
COMMON STOCKS -- 91.0%
Shares BASIC INDUSTRIES -- 27.1%
- ----------
CHEMICALS -- 12.0%
4,050 Colour-Chem Ltd. .................................... $ 392,692
50,000 E.I.D Parry Ltd. (G.D.R.) ........................... 142,500
36,850 Grasim Industries Ltd. .............................. 634,609
168,400 Indo Gulf Fertilizers and
Chemicals Corp. Ltd. (G.D.R.) ....................... 315,750
14,000 Indian Petrochemicals Corporation Ltd. (G.D.S.) ..... 276,500
38,200 Indian Petrochemicals Corporation Ltd. .............. 193,488
25,000 Reliance Industries Ltd. (G.D.R.) ................... 412,500
135,000 Reliance Industries Ltd. ............................ 1,017,869
32,000 Southern Petrochemical Industries Corp. Ltd. (G.D.R.) 251,200
50,000 Tata Chemicals Ltd. ................................. 369,030
22,700 Thirumalai Chemicals Ltd. ........................... 79,664
-----------
$4,085,802
-----------
TELECOMMMUNICATIONS EQUIPMENT -- 1.1%
56,000 Gujarat Optical Communications Ltd.* ................ $ 17,424
10,000 Sterlite Industries (India) Ltd. .................... 88,857
15,000 Telephone Cables Ltd. ............................... 9,334
55,000 Usha Beltron Ltd. (G.D.R.) .......................... 144,375
32,500 Usha Beltron Ltd. (G.D.R.) 144 A .................... 85,313
5,000 Vindhya Telelinks Ltd. .............................. 16,498
-----------
$ 361,801
IRON & STEEL -- 5.0%
250,000 Jindal Vijayanagar Steel Ltd.* .............$ 62,229
53,000 Steel Authority of India Ltd. (G.D.S.) .............. 818,055
116,500 Tata Iron & Steel Company Ltd. ...................... 822,750
-----------
$ 1,703,034
-----------
METALS & MINING --5.3%
26,900 Hindalco Industries Ltd. ................$ 1,016,049
751,700 National Aluminum Co., Ltd. ......................... 783,248
-----------
$ 1,799,297
-----------
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
Pioneer India Fund
Schedule of Investments
April 30, 1996 (continued)
SHARES VALUE
- --------- -----------
PAPER PRODUCTS --3.7%
150,000 Ballarpur Industries Ltd. ........................... $ 764,110
65,500 Seshasayee Paper & Boards Ltd. ...................... 127,967
137,700 Tamil Nadu Newsprint & Paper Ltd.+ .................. 358,698
-----------
$ 1,250,775
-----------
TOTAL BASIC INDUSTRIES $ 9,200,709
-----------
CAPITAL GOODS -- 15.1%
CONSTRUCTION, BUILDING MATERIALS & ENGINEERING -- 7.8%
214,000 Alsa Construction & Housing Ltd. .................... $ 142,460
3,000 Associated Cement Companies Ltd. .................... 352,098
97,850 Carborandum Universal, Ltd. ......................... 516,863
23,600 Gujarat Ambuja Cements Ltd. ......................... 241,123
76,900 India Cements Ltd. .................................. 350,557
100,000 India Cements Ltd. (G.D.R.) ......................... 550,000
33,000 Larsen & Toubro Ltd. ................................ 275,080
250,000 Prism Cement Ltd.* .................................. 57,164
21,100 Raasi Cement Ltd. ................................... 85,499
19,590 Unitech Ltd. ........................................ 56,700
3,500 Veejay Lakshmi Engineering Works Ltd. ............... 13,372
-----------
$ 2,640,916
-----------
MACHINERY -- 3.1%
80,800 Fag Precision Bearings Ltd. ......................... $ 201,708
43,250 Kirloskar Cummins Ltd. .............................. 481,946
1,055 Lakshmi Machine Works Ltd. .......................... 358,792
315 Sandvik Asia Ltd. ................................... 22,337
-----------
$ 1,064,783
-----------
PRODUCER GOODS -- 4.2%
75,000 Cosmo Films Ltd. (Private Placement) ......$ 277,858
120,000 Garware Wall Ropes Ltd. ............................. 225,760
54,000 GKN Invel Transmission Ltd. ......................... 144,573
45,000 Jain Irrigation Systems Ltd. ........................ 118,125
90,000 Polyplex Corp., Ltd. (Class B) ...................... 179,740
31,600 Premier Instruments & Constructions Ltd. ............ 183,381
51,450 Premier Instruments & Constructions Ltd.
(Private Placement) ................................. 298,574
-----------
$ 1,428,011
-----------
TOTAL CAPITAL GOODS ................................. $ 5,133,710
-----------
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
Pioneer India Fund
Schedule of Investments
April 30, 1996 (continued)
SHARES VALUE
- --------- -----------
CONSUMER DURABLES -- 8.2%
CONSUMER DURABLES -- 2.3%
50,000 Phillips India Ltd. .......................$ 222,865
88,000 TTK Prestige Ltd. ................................... 185,933
45,000 Videocon International Ltd. (G.D.R.) ................ 126,000
5,200 Videocon International Ltd. ......................... 10,234
105,750 Voltas, Ltd. ........................................ 238,741
-----------
$ 783,773
-----------
MOTOR VEHICLES -- 5.9%
50,000 Ashok Leyland Ltd. .................................. $ 193,560
15,000 Ashok Leyland Ltd. (G.D.R.) ......................... 202,500
25,000 Bajaj Auto Ltd ...................................... 630,970
116,400 L.M.L. Ltd.* ........................................ 306,582
29,000 Suzuki Motor Co. Ltd. ............................... 368,720
16,000 Tata Engineering and Locomotive Co., Ltd. (G.D.S.) .. 288,000
-----------
$ 1,990,332
-----------
TOTAL CONSUMER DURABLES ............................. $ 2,774,105
-----------
CONSUMER NON-DURABLES -- 8.0%
AGRICULTURE & FOOD --1.1%
4,400 Balrampur Chini Mills, Ltd. ......................... $ 28,145
5,000 Britannia Industries Ltd. ........................... 33,285
17,400 Dhampur Sugar Mills Ltd. ............................ 65,470
109,300 The K.C.P. Ltd. ..................................... 240,428
225 Tata Tea Ltd. ....................................... 1,970
-----------
$ 369,298
-----------
TEXTILES/CLOTHES -- 6.1%
93,100 Arvind Mills Ltd. (G.D.R.) .......................... $ 404,985
1,000 Coats Viyella India Ltd. ............................ 2,779
28,300 Garden Silk Mills Ltd. (G.D.R.) ..................... 102,588
25,000 JCT Inc. (G.D.R)* ................................... 126,563
60,450 Precot Mills, Ltd. (New) ............................ 286,941
25,000 Raymond Industries (G.D.S.) ......................... 556,250
79,700 Sanghi Polyesters Ltd. (G.D.R.) 144A ................ 259,025
88,500 SIV Industries Ltd. (G.D.R.) ........................ 331,875
-----------
$ 2,071,006
-----------
COSMETICS -- 0.8%
142,500 Godrej Soaps, Ltd. .................................. $ 280,463
-----------
TOTAL CONSUMER NON-DURABLES ......................... $ 2,720,767
-----------
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
Pioneer India Fund
Schedule of Investments
April 30, 1996 (continued)
SHARES VALUE
- --------- -----------
ENERGY -- 4.4%
OIL REFINING & DRILLING -- 4.4%
35,500 Bharat Petroleum Corp. Ltd. ......................... $ 375,036
95,000 Hindustan Petroleum Corp. Ltd. ...................... 1,017,366
56,600 Madras Refineries, Ltd. ............................. 110,579
100 Oil & Natural Gas Commission Ltd. ................... 712
308 Oil & Natural Gas Commission Ltd. (New) ............. 2,193
-----------
TOTAL ENERGY ........................................ 1,505,886
-----------
FINANCIAL -- 7.7%
COMMERCIAL BANKS -- 1.1%
40,500 State Bank of India ................................. $ 355,767
-----------
FINANCE / MISCELLANEOUS -- 6.6%
56,300 20th Century Finance Ltd. ........................... $ 75,773
1,000 Housing Development Finance Corp. Ltd. .............. 1,031,718
120,000 Industrial Development Bank of India ................ 416,787
44,000 Pakistan Investment Fund Inc. ....................... 291,500
27,000 Peregrine Investment Holdings Ltd. .................. 41,710
227,100 SCICI Ltd. .......................................... 302,362
-----------
$ 2,248,562
-----------
TOTAL FINANCIAL ..................................... $ 2,604,329
-----------
SERVICES -- 7.3%
HOTEL/RESTAURANT -- 4.5%
17,000 East India Hotels Ltd. .............................. $ 351,809
45,000 Hotel Leela Venture Ltd. ............................ 192,113
11,650 Indian Hotels Co. Ltd. .............................. 261,324
14,500 Indian Hotels Co. Ltd. (G.D.R.) ..................... 427,750
124,600 Oberoi Associated Hotels Ltd. ....................... 288,509
-----------
$ 1,521,505
-----------
PHARMACEUTICALS -- 1.6%
36,000 Dr. Reddy's Laboratories Ltd. (G.D.R.) .............. $ 355,500
18,000 Dr. Reddy's Laboratories Ltd. (G.D.R.) 144A ......... 177,750
-----------
$ 533,250
-----------
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
Pioneer India Fund
Schedule of Investments
April 30, 1996 (continued)
SHARES VALUE
- --------- -----------
TELECOMMUNICATION NETWORKS -- 1.2%
2,001,000 Champion Technology Holdings Ltd. ................... $ 235,397
4,700 Nokia Corp. (A Shares) (A.D.R.) ..................... 170,963
-----------
$ 406,360
-----------
TOTAL SERVICES ...................................... $ 2,461,115
-----------
TECHNOLOGY -- 0.2%
SOFTWARE -- 0.2%
50,000 Nucleus Software Exports Ltd.* ...................... $ 50,651
-----------
TOTAL TECHNOLOGY .................................... $ 50,651
-----------
TRANSPORTATION -- 0.7%
SHIPS & SHIPPING -- 0.7%
101,900 Great Eastern Shipping Co. Ltd. ...........$ 137,145
16,200 Great Eastern Shipping Co. Ltd. (G.D.R.) ............ 109,350
-----------
TOTAL TRANSPORTATION ................................ $ 246,495
-----------
UTILITIES -- 10.4%
ELECTRIC UTILITY -- 6.7%
35,000 Andra Valley Power Supply Company Ltd. .............. $ 134,226
10,300 BSES Ltd. (New) ..................................... 55,748
35,000 BSES Ltd. (G.D.R.) .................................. 700,175
191,900 CESC Ltd. (G.D.R.) .................................. 652,460
70,000 CESC Ltd. (Class E) ................................. 202,994
1,000 Tata Electric Companies Ltd. (G.D.R.) ............... 505,000
7,000 Tata Hydro Electric Power Supply Co. ................ 25,579
-----------
$ 2,276,182
-----------
TELECOMMUNICATIONS -- 3.7%
191,000 Mahanagar Telephone Nigam Ltd. ...................... $ 1,260,434
-----------
TOTAL UTILITIES ..................................... $ 3,536,616
-----------
MISCELLANEOUS -- 1.9%
CONGLOMERATES & HOLDINGS -- 1.9%
13,000 Indian Rayon & Industries, Ltd. (G.D.S.) ............ $ 204,750
12,000 Indian Rayon & Industries, Ltd. (G.D.R.) ............ 189,000
75,000 JK Corp. Ltd. (G.D.R.) 144A ......................... 253,125
-----------
TOTAL MISCELLANEOUS ................................. $ 646,875
-----------
TOTAL COMMON STOCKS (Cost $30,793,297) .............. $30,881,258
-----------
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
Pioneer India Fund
Schedule of Investments
April 30, 1996 (continued)
SHARES VALUE
- --------- -----------
RIGHTS -- 0.0%
5,000 Vindhya Telelink Ltd. ............................... $ 3,420
-----------
TOTAL RIGHTS (Cost $3,767) .......................... $ 3,420
-----------
WARRANTS -- 0.7%
70,000 CESC Ltd. (Class B) ................................. $ 108,394
48,000 Hotel Leela Venture Ltd. ............................ 111,143
14,500 SIV Industries Ltd. (G.D.R.) ........................ 1,160
-----------
TOTAL WARRANTS (Cost $246,203) ...................... $ 220,697
-----------
TOTAL INVESTMENT IN SECURITIES (Cost $31,083,433) ... $31,141,844
-----------
PRINCIPAL
AMOUNT TEMPORARY CASH INVESTMENT -- 8.2%
- ----------
REPURCHASE AGREEMENT -- 8.2%
$2,800,000 Chase Manhattan Bank, 4/30/96, 5.30%, repurchase
price of $2,800,000 plus accrued interest on
5/1/96, collaterized by $2,777,000
U.S. Treasury Note, 6.125%, 5/31/97 ................. $ 2,800,000
-----------
TOTAL TEMPORARY CASH INVESTMENT (Cost $2,800,000) $ 2,800,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT -- 100.0%
(Cost $33,883,433) (a) (b) ........................ $33,941,844
-----------
* Non-income producing security.
+ Partly- paid security -- additional subscription payment of INR
40.00/share will be required on June 26, 1996.
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At April 30, 1996, the
value of these securities amounted to $775,213 or 2.3% of total net
assets.
(a) At April 30, 1996, the net unrealized gain on investments based on cost
for federal income tax purposes of $33,883,433 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost .......... $ 4,037,905
Aggregrate gross unrealized loss for all investments in
which there is an excess of tax cost over value .......... (3,979,494)
-----------
Net unrealized gain ...................................... $ 58,411
===========
(b) At October 31, 1995, the Fund had a capital loss carry forward of $737,343
which will expire between 2002 and 2003 if not utilized. Purchases and
sales of securities (excluding temporary cash investments) for the six
months ended April 30, 1996 aggregated $18,111,525 and $4,193,607,
respectively.
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
Pioneer India Fund
Balance Sheet
April 30, 1996
ASSETS:
Investment in securities, at value (including temporary cash
investments of $2,800,000) (cost $33,883,433;
see Schedule of Investments and Note 1) ....................... $33,941,844
Foreign currencies, at value (Note 1) ........................... 4,147,443
Cash ............................................................ 145,752
Receivables --
Investment securities sold .................................... 595,425
Fund shares sold .............................................. 619,725
Dividends, interest and foreign taxes withheld (Note 1) ....... 22,632
Due from Pioneering Management Corporation (Note 2) ............. 91,451
-----------
Total assets ................................................ $39,564,272
-----------
LIABILITIES:
Payables --
Investment securities purchased ............................... $ 5,757,471
Fund shares repurchased ....................................... 27,697
Due to affiliates (Notes 3 and 4) ............................... 43,591
Accrued expenses (Note 1) ....................................... 610,845
-----------
Total liabilities ........................................... $ 6,439,604
-----------
NET ASSETS:
Paid-in capital (Note 1) ........................................ $34,807,175
Accumulated net investment loss (Note 1) ........................ (46,168)
Accumulated net realized loss on investments and foreign
currency transactions (Note 1) ................................ (1,184,760)
Net unrealized loss on investments (Note 1) ..................... (459,873)
Net unrealized gain on other assets and liabilities
denominated in foreign currencies (Note 1) .................... 8,294
-----------
Total net assets ............................................ $33,124,668
===========
NET ASSET VALUE PER SHARE:
Class A -- (based on $22,943,937 / 2,282,188 shares of
beneficial interest outstanding -- unlimited number
of shares authorized) ......................................... $10.05
======
Class B -- (based on $9,358,549 / 945,416 shares of
beneficial interest outstanding -- unlimited number
of shares authorized) ......................................... $ 9.90
======
Class C -- (based on $822,182 / 83,459 shares of
beneficial interest outstanding -- unlimited number
of shares authorized) ......................................... $ 9.85
======
MAXIMUM OFFERING PRICE:
Class A ......................................................... $10.66
======
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
Pioneer India Fund
Statement of Operations
For the Six Months Ended April 30, 1996
INVESTMENT INCOME (NOTE 1):
Dividends (net of foreign taxes withheld of $26,529) .......... $ 136,668
Interest ...................................................... 50,792
Other (Note 6) ................................................ 17,254
-----------
Total investment income ......................................... $ 204,714
-----------
EXPENSES:
Management fees (Note 2) ...................................... $ 121,800
Distribution fees (Note 4)
Class A ..................................................... 15,380
Class B ..................................................... 33,324
Class C ..................................................... 728
Transfer agent fees (Note 3)
Class A ..................................................... 36,308
Class B ..................................................... 15,766
Class C ..................................................... 347
Registration fees ............................................. 46,037
Professional fees ............................................. 112,594
Accounting (Note 2) ........................................... 66,545
Custodian fees ................................................ 82,780
Printing ...................................................... 5,248
Fees and expenses of nonaffiliated trustees ................... 10,114
Miscellaneous ................................................. 15,175
-----------
Total expenses .............................................. $ 562,146
Less fees paid indirectly (Note 5) .............................. (3,616)
Less management fees waived and expenses assumed by
Pioneering Management Corporation (Note 2) .................... (307,648)
-----------
Net expenses ................................................ $ 250,882
-----------
Net investment loss ....................................... $ (46,168)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments (Note 1) ......................... $ (364,138)
Forward foreign currency contracts
and other assets and liabilities denominated
in foreign currencies (Note 1) .............. (82,279) (447,417)
-----------
Net unrealized gain from:
Change in net unrealized loss on investments
(net of reserve for capital gains taxes
of $518,284) (Note 1) ....................... $ 4,438,452
Change in net unrealized gain on other assets
and liabilities denominated in foreign
currencies (Note 1) ......................... 3,126 4,441,578
----------- -----------
Net gain on investments and foreign currency transactions ... $ 3,994,161
-----------
Net increase in net assets resulting from operations ........ $ 3,947,993
===========
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
Pioneer India Fund
<TABLE>
Statements of Changes in Net Assets
For the Six Months Ended April 30, 1996 and for the Year Ended October 31, 1995
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30,1996 OCTOBER 31,1995
---------------- ---------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss .................................... $ (46,168) $ (64,018)
Net realized loss on investments and
foreign currency transactions ........................ (447,417) (686,172)
Change in net unrealized loss on investments
and foreign currency transactions .................... 4,441,578 (3,941,018)
------------ ------------
Net increase (decrease) in net assets
resulting from operations .......................... $ 3,947,993 $ (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)
------------ ------------
Decrease in net assets resulting from
distributions to shareholders .................... $ -- $ (22,299)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares ....................... $ 25,547,331 $ 10,164,408
Net asset value of shares issued to shareholders in
reinvestment of dividends ............................ -- 17,182
Cost of shares repurchased ............................. (10,758,952) (8,608,922)
------------ ------------
Net increase in net assets resulting from
fund share transactions ............................ $ 14,788,379 $ 1,572,668
------------ ------------
Net increase (decrease) in net assets .............. 18,736,372 $ (3,140,839)
NET ASSETS:
Beginning of period .................................... 14,388,296 17,529,135
------------ ------------
End of period (including accumulated net investment
loss of $46,168 and $0, respectively) ................ $ 33,124,668 $ 14,388,296
============ ============
SIX MONTHS ENDED YEAR ENDED
APRIL 30,1996 OCTOBER 31,1995
----------------------------------------------------------
<S> <C> <C> <C> <C>
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
CLASS A
Shares sold .................................................. 2,278,850 $ 20,412,832 616,544 $ 5,912,785
Shares issued to shareholders in reinvestment of distributions -- -- 1,439 14,695
Less shares repurchased ...................................... (988,334) (8,506,232) (641,099) (6,139,994)
--------- ------------ -------- -----------
Net increase (decrease) ...................................... 1,290,516 $ 11,906,600 (23,116) $ (212,514)
========= ============ ======== ===========
CLASS B
Shares sold .................................................. 491,695 $ 4,361,028 435,995 4,251,623
Shares issued to shareholders in reinvestment of distributions -- -- 244 2,487
Less shares repurchased ...................................... (260,159) (2,252,516) (263,505) (2,468,928)
---------- ------------ -------- -----------
Net increase ................................................. 231,536 $ 2,108,512 172,734 $ 1,785,182
========== ============ ======== ===========
CLASS C *
Shares sold .................................................. 83,481 $ 773,471 -- $ --
Shares issued to shareholders in reinvestment of distributions -- -- -- --
Less shares repurchased ...................................... (22) (204) -- --
========== ============ ======== ===========
Net increase ................................................. 83,459 $ 773,267 -- $ --
========== ============ ======== ===========
* Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Pioneer India Fund
Financial Highlights -- Selected Data for a Share Outstanding
For the Periods Presented
Six Months Year Ended June 23 1994
Ended April 30, October 31, to October 31,
1996 1995 1994+
------------- ----------- ------------
<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) ........................... $ (0.01) $ (0.01) $ 0.04
Net realized and unrealized gain (loss) on investments and
foreign currency related transactions .................. 1.59 (2.78) (0.26)
---------- ---------- -----------
Net increase (decrease) from investment operations ..... $ 1.58 $ (2.79) $ (0.22)
Distribution to shareholders from net investment income .. -- (0.02) --
---------- ---------- -----------
Net increase (decrease) in net asset value ............... $ 1.58 $ (2.81) $ (0.22)
---------- ---------- -----------
Net asset value, end of period ........................... $ 10.05 $ 8.47 $ 11.28
========== ========== ===========
Total return * ........................................... 18.65% (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 (0.25%)**++ (0.14%)++ 0.92%**
Portfolio turnover rate .................................. 46.29%** 53.11% 108.73%**
Average commission rate paid per exchange
listed transaction ..................................... $ 0.0367 -- --
Net assets, end of period (in thousands) ................. $ 22,944 $ 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 ......................................... 5.48%** 4.21% 6.57%**
Net investment loss .................................. (3.45%)** (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 loss .................................. (0.22%)** (0.11%) --
<FN>
+ The per share data is based upon average shares outstanding for the period presented.
++ Ratios assuming no reduction for fees paid indirectly.
* 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.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
Pioneer India Fund
<TABLE>
Financial Highlights -- Selected Data for a Share Outstanding (continued)
For the Period Presented
<CAPTION>
Six Months Year Ended June 23 1994
Ended April 30, October 31, to October 31,
1996 1995 1994+
---------------- ----------- --------------
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period ..................... $ 8.39 $ 11.24 $ 11.50
---------- ---------- -----------
Increase (decrease) from investment operations:
Net investment loss .................................... $ (0.03) $ (0.07) $ --
Net realized and unrealized gain (loss) on investments and
foreign currency related transactions ................ 1.54 (2.77) (0.26)
---------- ---------- -----------
Net increase (decrease) from investment operations ... $ 1.51 $ (2.84) $ (0.26)
Distribution to shareholders from net investment income .. -- (0.01) --
---------- ---------- -----------
Net increase (decrease) in net asset value ............... $ 1.51 $ (2.85) $ (0.26)
---------- ---------- -----------
Net asset value, end of period ........................... $ 9.90 $ 8.39 $ 11.24
========== ========== ===========
Total return * ........................................... 18.00% (25.31%) (2.26%)
Ratio of net expenses to average net assets .............. 3.20%**++ 3.01%++ 3.21%**
Ratio of net investment loss to average net assets ....... (0.97%)**++ (0.86%)++ (0.01%)**
Porfolio turnover rate ................................... 46.29%** 53.11% 108.73%**
Average commission rate paid per
exchange listed transaction ............................ $ 0.0367 -- --
Net assets, end of period (in thousands) ................. $ 9,359 $ 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 ......................................... 6.25%** 4.91% 7.50%**
Net investment loss .................................. (4.02%)** (2.76%) (4.28%) **
Ratios assuming waiver of management fees and assumption of
expenses by PMC and reduction for fees paid indirectly:
Net expenses ......................................... 3.18%** 2.97% --
Net investment loss .................................. (0.95%)** (0.82%) --
<FN>
+ The per share data presented above is based upon average shares outstanding for the period presented.
++ Ratios assuming no reduction for fees paid indirectly.
* 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.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
Pioneer India Fund
<TABLE>
Financial Highlights -- Selected Data for a Share Outstanding (continued)
For the Period Presented
<CAPTION>
January 31, 1996
to
April 30, 1996
----------------
CLASS C***
<S> <C>
Net asset value, beginning of period ......................... $ 7.85
--------
Increase (decrease) from investment operations:
Net investment loss ........................................ $ (0.02)
Net realized and unrealized gain on investments and
foreign currency related transactions .................... 2.02
--------
Net increase from investment operations .................. 2.00
Distribution to shareholders from net investment income ...... --
--------
Net increase in net asset value .............................. $ 2.00
--------
Net asset value, end of period ............................... $ 9.85
========
Total return * ............................................... 25.48%
Ratio of net expenses to average net assets .................. 3.33%**+
Ratio of net investment loss to average net assets ........... (1.99%)**+
Porfolio turnover rate ....................................... 46.29%**
Average commission rate paid per exchange listed transaction . $ 0.0367
Net assets, end of period (in thousands) ..................... 822
Ratios assuming no waiver of management fees and assumption of
expenses by PMC and no reduction for fees paid indirectly:
Net expenses ............................................. 6.28%**
Net investment loss ...................................... (4.94%)**
Ratios assuming waiver of management fees and assumption of
expenses by PMC and reduction for fees paid indirectly:
Net expenses ............................................. 3.23%**
Net investment loss ...................................... (1.89%)**
<FN>
+ Ratios assuming no reduction for fees paid indirectly.
* 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.
*** Class C shares were first publicly offered on January 31, 1996.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
Pioneer India Fund
Notes to Financial Statements
April 30, 1996
1. 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 primarily in equity securities of companies in
India.
The Board of Trustees (the Trustees) has authorized the issuance of
three share classes of the Fund, designated as Class A, Class B and Class C
shares. Class C shares were first publicly offered on January 31, 1996. The
shares of Class A, Class B and Class C 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, 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 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 are 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 values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times. Temporary cash investments are valued at amortized cost. 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 dividends. Interest income is recorded on the
accrual basis, net of unrecoverable foreign taxes withheld at the applicable
country rates.
In addition, net realized gains on securities in certain countries give
rise to capital gains taxes. It is the Fund's policy to provide a reserve
against net unrealized gains for anticipated capital gains taxes on such
securities held by the Fund. Included in accrued expenses is $518,284 in reserve
for capital gains taxes at April 30, 1996. For the six months ended April 30,
1996, the Fund paid no capital gains taxes on gains realized on the sale of
certain foreign securities.
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 a 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.
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
15
<PAGE>
Pioneer India Fund
Notes To Financial Statements
April 30, 1996 (continued)
the U.S. dollar actually received. Further, the effects of changes in foreign
currency exchange rates on investments are not segregated in the statement of
operations from the effects of changes in market price of those securities but
are included with the net realized and unrealized gain or loss on investments.
C. Forward Foreign Currency Contracts -- The Fund enters into forward
foreign currency contracts (contracts) for the purchase or sale of a specific
foreign currency at a fixed price on a future date as a hedge or cross-hedge
against either specific investment transactions (settlement hedges) or portfolio
positions (portfolio hedges). All contracts are marked to market daily at the
applicable exchange rates, and any resulting unrealized gains or losses are
recorded in the Fund's financial statements. The Fund records realized gains 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 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. As of April 30, 1996, the Fund
had no outstanding contracts.
D. Federal Income 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.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net investment
income or net realized gain on investment transactions, or from paid-in capital,
depending on the type of book/tax differences that may exist.
E. Fund Shares -- The Fund records sales and repurchases of its shares on
the 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 wholly owned subsidiary of The Pioneer Group, Inc. (PGI). PFD
earned $16,853 in underwriting commissions on the sale of fund shares during the
six months ended April 30, 1996. Distributions to shareholders are recorded as
of the ex-dividend date. Distributions 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, Class B and Class
C shares bear different transfer agent and distribution fees.
F. Class Allocations -- Distribution expenses 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 expenses (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.
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. 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), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned subsidiary of PGI. Management
fees are calculated daily at
16
<PAGE>
Pioneer India Fund
Notes To Financial Statements
April 30, 1996 (Continued)
the annual rate of 1.25% of the Fund's average daily net assets.
PMC has agreed not to impose a portion of its management fee and to
assume other operating expenses of the Fund to the extent necessary to limit
Class A expenses to 2.25% of the average daily net assets attributable to Class
A shares; the portion of the Fund-wide expenses attributable to Class B and
Class C shares will be reduced only to the extent that such expenses are reduced
for Class A shares. PMC's agreement is voluntary and temporary and may be
revised or terminated at any time.
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% up to
$15,000,000; 0.20% of the next $30,000,000; 0.40% of the next $15,000,000; and
0.60% of the excess over $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 due to affiliates is $31,220 in transfer agent fees payable to PSC
at April 30, 1996.
4. 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 Class C Plan, the Fund pays PFD 1.00% of the average daily net assets
attributable to each class of shares. The fee consists of a 0.25% service fee
and a 0.75% distribution fee paid as compensation for personal services and/or
account maintenance services or distribution services with regard to Class B and
Class C shares. Included in due to affiliates is $12,371 in distribution fees
payable to PFD at April 30, 1996.
In addition, redemptions of each class of shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
certain net asset value purchases of Class A shares that are redeemed within one
year of purchase. Class B shares that are redeemed within six years of purchase
are subject to a CDSC at declining rates beginning at 4.0% based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%. Proceeds from the
CDSC are paid to PFD. For the six months ended April 30, 1996, CDSC in the
amount of $48,667 was paid to PFD.
5. The Fund has entered into certain expense offset arrangements resulting
in the reduction of the Fund's total expenses. For the six months ended April
30, 1996, the Fund's expenses were reduced by $3,616 under such arrangements.
6. During the six months ended April 30, 1996, PMC reimbursed the Fund
$17,254 in connection with costs incurred on certain portfolio transactions.
17
<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 of Pioneer India Fund,
including the schedule of investments as of April 30, 1996, 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, 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 April 30, 1996, 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.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
May 31, 1996
<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
SUBADVISER
ITI PIONEER AMC LTD
Madras, India
PRINCIPAL UNDERWRITER
PIONEER FUNDS DISTRIBUTOR, INC.
INDEPENDENT PUBLIC ACCOUNTANTS
ARTHUR ANDERSEN LLP
LEGAL COUNSEL
HALE AND DORR
SHAREHOLDER
SERVICES AND
TRANSFER AGENT
PIONEERING SERVICES CORPORATION
60 State Street
Boston, Massachusetts
02109
CUSTODIAN
BROWN BROTHERS
HARRIMAN & CO.
- ---------------------------------------------------------------------
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.
0696-3431
[Copyright] Pioneer Funds Distributor, Inc.
