[PIONEER LOGO]
Pioneer India
Fund
ANNUAL REPORT 10/31/97
<PAGE>
Table of Contents
- -------------------------------------------------------------------------------
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 14
Notes to Financial Statements 20
Report of Independent Public Accountants 26
Trustees, Officers and Service Providers 27
The Pioneer Family of Mutual Funds 28
Retirement Plans from Pioneer 29
<PAGE>
Pioneer India Fund
LETTER FROM THE CHAIRMAN 10/31/97
Dear Shareowner,
- -------------------------------------------------------------------------------
I am pleased to introduce this report for Pioneer India Fund, covering its
fiscal year ended October 31, 1997. On behalf of the Fund's investment team, I
thank you for your interest and this opportunity to comment briefly on today's
investing environment.
In the final week of October, the world's stock markets demonstrated exceptional
volatility. Asian markets plunged after languishing for several months as they
digested currency and economic changes. In the United States, the Dow Jones
Industrial Average experienced both its biggest one-day point drop and its
biggest one-day point gain. European markets bounced around, shaken by the drop
in Asia and then heartened by the speedy U.S. rebound. Latin American markets
were affected in a chain reaction.
While India's stock markets held up better than almost any other Asian
country's, as we prepare this report in late November, political turmoil has
again taken center stage in India. The most recent coalition government has
dissolved; creating a new one may delay implementation of India's programs to
improve its economy, and, if so, investor interest in the area is likely to wane
in the short-term. Even so, we still have confidence in the long-term prospects
for India. It is the world's largest democracy and has plowed forward through
years of political upheaval to create policies to stimulate its economy and
develop industry. We know short-term market swings are unnerving, but they
shouldn't deter you from pursuing long-term strategies designed to meet
long-term goals.
I encourage you to read on to learn more about your Fund. Please contact your
investment representative, or Pioneer at 1-800-225-6292, if you have questions
about Pioneer India Fund.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
<PAGE>
Pioneer India Fund
PORTFOLIO SUMMARY 10/31/97
Portfolio Diversification
- -------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Tabular representation of pie chart]
<TABLE>
<S> <C>
International Common Stocks 75.9%
Depositary Receipts for International Stocks 23.9%
Warrants 0.2%
</TABLE>
Sector Distribution
- -------------------------------------------------------------------------------
(As a percentage of equity holdings)
[Tabular representation of pie chart]
<TABLE>
<S> <C>
Utilities 16%
Financial 15%
Capital Goods 14%
Services 13%
Basic Industries 12%
Energy 11%
Consumer Non-Durables 8%
Consumer Durables 6%
Transportation 3%
Other 2%
</TABLE>
10 Largest Holdings
- -------------------------------------------------------------------------------
(As a percentage of equity holdings)
1. Mahanagar Telephone 7.42% 6. Industrial Credit & 2.92%
Nigam Ltd. Investment Corp. of
India Ltd.
2. Hindustan Petroleum 4.42 7. Reliance Industries Ltd. 2.68
Corp. Ltd. (G.D.R.)
3. Videsh Sanchar Nigam 3.59 8. Larsen & Toubro Ltd. 2.57
Ltd. (G.D.R.) (G.D.R.)
4. Indian Hotels Co. Ltd. 3.51 9. Tata Iron & Steel Co. Ltd. 2.56
5. Oil & Natural Gas 3.07 10. State Bank of India 2.53
Commission Ltd. (G.D.R.)
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer India Fund
PERFORMANCE UPDATE 10/31/97 CLASS A SHARES
Share Prices and Distributions
- -------------------------------------------------------------------------------
Net Asset Value
per Share 10/31/97 10/31/96
$7.14 $6.93
Distributions per Share Income Short-Term Long-Term
(10/31/96-10/31/97) Dividends Capital Gains Capital Gains
- - -
Investment Returns
- -------------------------------------------------------------------------------
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.
[graph]
Growth of $10,000+
<TABLE>
<CAPTION>
Date Pioneer India Fund* MSCI Emerging Markets Asia Free Index
<S> <C> <C>
6/30/94 9,425 10,000
9,574 10,364
10/31/94 9,246 11,318
7,620 9,089
4/30/95 7,538 9,308
7,981 10,428
10/31/95 6,955 9,458
6,520 9,927
4/30/96 8,252 11,039
6,988 9,748
10/31/96 5,690 9,615
5,772 10,155
4/30/97 6,084 9,677
6,914 9,905
10/31/97 5,863 6,142
</TABLE>
[boxed text]
Average Annual Total Returns
(As of October 31, 1997)
Net Asset Public Offering
Period Value Price*
Life-of-Fund -13.18% -14.69%
(6/23/94)
1 Year 3.03 -2.89
* 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
<PAGE>
Pioneer India Fund
PERFORMANCE UPDATE 10/31/97 CLASS B SHARES
Share Prices and Distributions
- -------------------------------------------------------------------------------
Net Asset Value
per Share 10/31/97 10/31/96
$6.96 $6.80
Distributions per Share Income Short-Term Long-Term
(10/31/96 - 10/31/97) Dividends Capital Gains Capital Gains
- - -
Investment Returns
- -------------------------------------------------------------------------------
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.
[graph]
Growth of $10,000+
<TABLE>
<CAPTION>
Date Pioneer India Fund* MSCI Emerging Markets Asia Free Index
<S> <C> <C>
6/30/94 10,000 10,000
10,157 10,364
10/31/94 9,783 11,318
8,048 9,089
4/30/95 7,944 9,308
8,396 10,428
10/31/95 7,309 9,458
6,839 9,927
4/30/96 8,614 11,039
7,283 9,748
10/31/96 5,917 9,615
5,995 10,155
4/30/97 6,308 9,677
7,152 9,905
10/31/97 5,756 6,142
</TABLE>
[boxed text]
Average Annual Total Returns
(As of October 31, 1997)
If If
Period Held Redeemed*
Life-of-Fund -13.87% -14.64%
(6/23/94)
1 Year 2.35 -1.65
* 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
<PAGE>
Pioneer India Fund
PERFORMANCE UPDATE 10/31/97 CLASS C SHARES
Share Prices and Distributions
- -------------------------------------------------------------------------------
Net Asset Value
per Share 10/31/97 10/31/96
$6.93 $6.77
Distributions per Share Income Short-Term Long-Term
(10/31/96 - 10/31/97) Dividends Capital Gains Capital Gains
- - -
Investment Returns
- ------------------------------------------------------------------------------
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.
[graph]
Growth of $10,000
<TABLE>
<CAPTION>
Date Pioneer India Fund* MSCI Emerging Markets Asia Free Index
<S> <C> <C>
1/31/96 10,000 10,000
11,732 10,269
11,771 10,460
4/30/96 12,548 11,120
11,975 10,889
12,127 10,758
7/31/96 10,611 9,820
10,127 10,071
9,057 10,076
10/31/96 8,624 9,685
8,000 9,950
8,471 9,864
1/31/97 8,739 10,230
9,006 10,447
8,764 9,995
4/30/97 9,197 9,749
8,981 9,787
9,873 10,144
7/31/97 10,433 9,978
9,287 8,025
9,338 7,621
10/31/97 8,828 6,187
</TABLE>
[boxed text]
Average Annual Total Returns
(As of October 31, 1997)
If If
Period Held Redeemed*
Life-of-Fund -6.87% -6.87%
(1/31/96)
1 Year 2.36 2.36
* Assumes reinvestment of distributions. The 1% contingent deferred sales charge
(CDSC) applies to investments sold within one year of purchase.
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
<PAGE>
Pioneer India Fund
PORTFOLIO MANAGEMENT DISCUSSION 10/31/97
Dear Shareowner,
- ------------------------------------------------------------------------------
Pioneer India Fund completed its fiscal year on October 31, 1997. Over the
course of the year, India's 50th of independence from British rule, the country
continued its political and economic evolution. Despite an unsettled political
climate, the Indian government passed new economic policies designed to reduce
its deficit and stimulate growth. In this environment, Class A Shares of Pioneer
India Fund posted a total return of 3.03% at net asset value for the year,
substantially outperforming the -25.68% average total return of the 76 funds in
its peer group, Lipper Analytical Services' Pacific Ex-Japan Funds category.
Unlike your Fund, many funds in this category had substantial investments in
Asian emerging markets; they were hit hard by slowing economic growth, declining
currency values and sharp stock market sell-offs.
Government Changes
Political uncertainty characterized the year. Two coalition governments
unraveled, the first in March and the second in November, when the Congress
Party pulled its support. The first breakdown occurred mainly because of
differences between the agendas of the Party and the coalition government under
Prime Minister Gowda. The conflict grew and resulted in Gowda's resignation in
May, along with that of Finance Minister Chidambaram. Former Foreign Minister
Gujral assumed the Prime Minister post shortly thereafter, and Chidambaram
returned as Finance Minister. Initially, their presence lent comfort to Indian
voters, and investors showed support by driving up India's stock market.
The honeymoon period was brief, however. As we prepared this report near the end
of November, the Congress Party withdrew support of the United Front coalition,
and Gujral resigned. This time, the catalyst was a disagreement over the course
of an official inquiry into the 1991 killing of former Prime Minister Rajiv
Gandhi. President Narayanan accepted Gujral's resignation and began the process
of rebuilding a new government.
6
<PAGE>
Pioneer India Fund
Progressive Economic Policies Enacted
In February, the disputing government factions worked together to pass a budget
containing significant changes. Improvements included a reduction in the maximum
corporate income tax rate from 43% to 35% and a cut in personal income tax rates
from 40% to 30%. Other major measures included lower tariffs and a tax amnesty
program.
In the same vein, in September they enacted long-awaited policies to reduce the
government deficit. By eliminating oil and coal subsidies for the first time,
the majority of domestic oil product prices are now tied to international market
prices. While definitely a long-term economic improvement, the policy means
higher prices to consumers and businesses for most forms of fossil fuel.
However, its passage also demonstrated the government's ability to work together
to reach an important goal. While some saw these adjustments as a step backward,
they were generally heralded as a good intermediate move to further reduce the
deficit, and the stock market reacted favorably.
Economy Shaping Investment Opportunities
India's economy slowed over the past 12 months, leading to lower interest rates
and a drop in prime lending rates. While lower rates should stimulate demand
for loans, credit demand has been weak due to the slowing economy. As a result,
India has yet to benefit from the lower rates, but there is a significant
amount of money poised to move into the hands of individuals and businesses.
The strength of India's currency, the rupee, is also a factor. We expect the
government will allow the rupee to depreciate around 5%-7% per year versus the
U.S. dollar. A weaker rupee gives other currencies greater spending power in
India, and will likely mean an increase in exports and a decrease in imports.
India's long-term plan to stimulate the economy also includes developing its
infrastructure, including spending on power plants, telecommunications, bridges
and roads.
We have positioned the Fund to take advantage of the government's plans and any
resulting economic growth. The portfolio is concentrated in large companies
likely to benefit. The new oil policies should help older, more-established fuel
companies, including Hindustan Petroleum Corp. and Oil & Natural Gas Commission.
These dominant industry forces are unlikely
7
<PAGE>
Pioneer India Fund
PORTFOLIO MANAGEMENT DISCUSSION 10/31/97 (continued)
to be hurt by any current or new competition. Other examples are Industrial
Credit & Investment Corp. of India (ICIC), the second largest financial
institution in India, Larsen & Toubro, a large engineering and construction
company, Tata Iron & Steel, a low-cost producer of steel, and telecommunications
provider Mahanagar Telephone Nigam. So far, this strategy has worked well.
Hotels in the portfolio, Indian Hotels and East India Hotels should benefit from
both an economic recovery and tourism and business travel stimulated by a lower
rupee.
India Working toward the Future
We realize that the latest round of political upheaval is likely to delay
India's implementation of its ambitious economic policies. However, we are
encouraged by the progress of the Indian government in 1997 under similar
circumstances. More promising programs to deregulate industries and stimulate
the economy are still on the horizon, as well as stock market reforms and the
modernization of investment record keeping.
We expect that as a new government settles in and more of these policies come
into play, India's economy will improve. Importantly, the various factions have
proved their dedication to maintaining steady and sustainable growth, not the
rapid growth that can trigger the great volatility we've recently observed
elsewhere in Asia. The Fund is positioned to capitalize on India's dedication to
improving its infrastructure, and we still think India holds appeal as a large
economy poised for development. Though any investment concentrated in one
country presents risks - including currency fluctuations, different accounting
standards and illiquidity - Pioneer India Fund also offers great potential for
the long-term. Thank you for investing in Pioneer India Fund.
Respectfully,
/s/ Mark H. Madden
Mark H. Madden,
Portfolio Manager
8
<PAGE>
Pioneer India Fund
SCHEDULE OF INVESTMENTS 10/31/97
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 100%
DEBENTURES - 0.0%
$ 28,000 Gujarat Optical, 14.0%, 12/31/99 (Convertible) $ 0
6,874 Vindhya Telelinks, Part B, 16.0%, 3/31/02 6,874
----------
Total Debentures
(Cost $49,092) $ 6,874
----------
Shares
COMMON STOCKS - 99.8%
Basic Industries - 12.2%
Chemicals - 4.6%
25,000 BASF India Ltd. $ 158,100
10,000 BASF India Ltd. (E Shares) 63,240
5,000 Bayer (India) Ltd. 217,215
4,050 Colour-Chem Ltd. 320,825
1,000,000 Kothari Petrochem Ltd.* 137,478
----------
$ 896,858
----------
Agrochemicals & Fertilizers - 0.7%
168,400 Indo Gulf Fertilizers and Chemicals Corp. Ltd. (G.D.R.) $ 126,300
2,100 Tata Chemicals Ltd. 8,618
----------
$ 134,918
----------
Iron & Steel - 2.6%
113,500 Tata Iron & Steel Co. Ltd. $ 502,440
----------
Metals & Mining - 2.7%
6,050 Hindalco Industries Ltd. $ 157,864
308,600 National Aluminum Co. Ltd. 375,467
----------
$ 533,331
----------
Paper Products - 1.6%
41,800 Ballarpur Industries Ltd. $ 35,341
87,250 ITC Bhadrachalam Paperboards Ltd. 116,951
137,700 Tamilnadu Newsprint & Papers Ltd. 172,269
----------
$ 324,561
----------
Total Basic Industries $2,392,108
----------
Capital Goods - 13.9%
Construction, Building Materials & Engineering - 11.0%
214,000 Alsa Construction & Housing Ltd.* $ 16,181
22,500 Asea Brown Boveri Ltd. 395,318
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer India Fund
SCHEDULE OF INVESTMENTS 10/31/97 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Construction, Building Materials & Engineering - (continued)
4 Associated Cement Companies Ltd. $ 129
18,500 Gujarat Ambuja Cements Ltd. 144,970
24,000 Gujarat Ambuja Cements Ltd. (G.D.R.) 202,200
100,000 India Cements Ltd. (G.D.R.) 264,000
45,000 Larsen & Toubro Ltd. 233,231
48,000 Larsen & Toubro Ltd. (G.D.R.) 504,000
1,550 Raasi Cement Ltd.* 2,333
4,600 SKF Bearings India Ltd. 187,822
30,000 Thermax India Ltd. 209,516
----------
$2,159,700
----------
Machinery - 1.2%
2,835 Sandvik Asia Ltd. $ 107,181
18,700 Siemens India Ltd.* 127,771
----------
$ 234,952
----------
Producer Goods - 1.7%
51,850 Carborandum Universal Ltd. $ 135,436
150 Garware-Wall Ropes Ltd. 90
100 GKN Invel Transmission Ltd. 146
90,000 Polyplex Corp. 35,882
46,850 Premier Instruments & Constructions Ltd. 159,604
----------
$ 331,158
----------
Total Capital Goods $2,725,810
----------
Consumer Durables - 5.6%
Motor Vehicles - 5.2%
29,550 Bajaj Auto Ltd. $ 470,231
950 LML Ltd.* 2,279
750 Tata Engineering & Locomotive Ltd. 6,568
23,500 Tata Engineering & Locomotive Ltd. (G.D.R.) 244,400
25,650 TVS Suzuki Ltd. 295,328
----------
$1,018,806
----------
Misc. Consumer Durables - 0.4%
88,000 TTK Prestige Ltd. $ 79,847
2,206 Videocon International Ltd. 1,926
----------
$ 81,773
----------
Total Consumer Durables $1,100,579
----------
</TABLE>
10 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer India Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Consumer Non-Durables - 7.8%
Agriculture & Food - 0.6%
7,520 Britannia Industries Ltd. $ 74,178
54,550 KCP Ltd. 49,496
50 KCP Sugar and Industries Corp. 78
----------
$ 123,752
----------
Textiles/Clothes - 6.8%
53,100 Arvind Mills Ltd. (G.D.R.) $ 179,213
47,000 Bombay Dyeing & Manufacturing Co. Ltd.
(Sponsored G.D.R.)* 210,325
80,000 Reliance Industries Ltd. 414,633
25,000 Reliance Industries Ltd. (G.D.R.) 525,000
----------
$1,329,171
----------
Cosmetics - 0.4%
58,400 Godrej Soaps, Ltd. $ 72,660
----------
Total Consumer Non-Durables $1,525,583
----------
Energy - 11.4%
Oil Refining & Drilling - 11.4%
15,000 Bharat Petroleum Ltd. $ 179,821
51,350 Cochin Refineries Ltd. 212,491
66,000 Hindustan Petroleum Corp. Ltd. 866,523
20,000 Hindustan Petroleum Corp. Ltd.*+ 153,425
186,600 Madras Refineries Ltd. 215,488
67,008 Oil & Natural Gas Commission Ltd. 602,012
----------
Total Energy $2,229,760
----------
Financial - 14.9%
Commercial Banks - 8.4%
101,000 Bank of Baroda $ 335,329
100,000 Bank of Baroda (E Shares)* 332,009
200,000 Bank of India 262,583
35,900 Federal Bank Ltd. 69,343
3,600 Oriental Bank of Commerce 5,865
21,550 State Bank of India 155,835
27,000 State Bank of India (G.D.R.) 496,800
----------
$1,657,764
----------
Misc. Finance - 6.5%
56,300 20th Century Finance Ltd. $ 30,805
1,000 Housing Development Finance Corp. Ltd. 84,260
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer India Fund
SCHEDULE OF INVESTMENTS 10/31/97 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Misc. Finance - (continued)
235,690 Industrial Credit & Investment Corp. of India Ltd. $ 571,898
13,000 Industrial Credit & Investment Corp. of India Ltd. (G.D.R.) 193,050
100,000 LIC Housing Finance 127,854
50,000 Pakistan Investment Fund Inc. 259,375
----------
$1,267,242
----------
Total Financial $2,925,006
----------
Services - 13.0%
Hotel/Restaurant - 8.4%
104,600 East India Hotels Associated Ltd. $ 132,298
38,900 East India Hotels Ltd. 418,205
42,500 Indian Hotels Co. Ltd. 687,699
23,700 Indian Hotels Co. Ltd. (G.D.R.) 408,825
----------
$1,647,027
----------
Pharmaceuticals - 4.6%
35,000 Crosslands Research Laboratories Ltd. $ 274,268
2,000 Dabur India Ltd. 12,469
3,490 Hindustan Ciba-Geigy Ltd.* 367,429
13,000 Ranbaxy Laboratories Ltd. 253,069
----------
$ 907,235
----------
Total Services $2,554,262
----------
Technology - 2.0%
Computer Services - 2.0%
18,000 Tata Infotech Ltd. $ 399,648
----------
Total Technology $ 399,648
----------
Transportation - 2.9%
Ships & Shipping - 2.9%
319,800 Great Eastern Shipping Co. Ltd. $ 413,275
20,200 Great Eastern Shipping Co. Ltd. (G.D.R.) 157,055
----------
Total Transportation $ 570,330
----------
Utilities - 15.9%
Electric Utility - 4.2%
60,800 BSES Ltd. $ 305,091
70,000 CESC Ltd. 73,138
141,900 CESC Ltd. (G.D.R.) 127,710
1,000 Tata Electric Co. (G.D.R.) 305,000
----------
$ 810,939
----------
</TABLE>
12 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer India Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Telecommunications - 11.7%
209,000 Mahanagar Telephone Nigam Ltd. $ 1,455,320
6,000 Videsh Sanchar Nigam Ltd.* 140,227
51,000 Videsh Sanchar Nigam Ltd. (G.D.R.) 703,800
------------
$ 2,299,347
------------
Total Utilities $ 3,110,286
------------
Miscellaneous - 0.2%
Conglomerates & Holdings - 0.2%
50,000 J.K. Corp. Ltd. (G.D.R.) $ 31,875
------------
Total Miscellaneous $ 31,875
------------
Total Common Stocks
(Cost $23,357,306) $ 19,565,247
------------
WARRANTS - 0.2%
70,000 CESC Ltd. (Class B)* $ 0
48,000 Hotel Leelaventure Ltd.* 29,035
------------
Total Warrants
(Cost $200,956) $ 29,035
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $23,607,354) (a) (b) $ 19,601,156
------------
* Non-income producing security.
+ Partly-paid security - additional subscription
payment of INR 170.00/share on a
later date to be determined upon company's
discretion.
(a) At October 31, 1997, the net unrealized
loss on investments based on cost
for federal income tax purposes of
$23,625,803 was as follows:
Aggregate gross unrealized gain for all
investments in which there is an
excess of value over tax cost $ 1,631,603
Aggregrate gross unrealized loss for all
investments in which there is an
excess of tax cost over value (5,656,250)
------------
Net unrealized loss $ (4,024,647)
------------
(b) At October 31, 1997, the Fund had a capital
loss carryforward of $7,457,718 which will expire between 2002
and 2005 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 1997 aggregated $14,028,890 and $13,452,126,
respectively.
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer India Fund
BALANCE SHEET 10/31/97
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investment in securities, at value (cost $23,607,354) $ 19,601,156
Cash 314,784
Foreign currencies, at value 312,022
Receivables -
Investment securities sold 183,838
Fund shares sold 33,972
Dividends, interest and foreign taxes withheld 105,875
Other 3,152
------------
Total assets $ 20,554,799
------------
LIABILITIES:
Payables -
Investment securities purchased $ 306,954
Fund shares repurchased 75,931
Due to affiliates 26,975
Accrued expenses 103,845
------------
Total liabilities $ 513,705
------------
NET ASSETS:
Paid-in capital $ 31,528,153
Accumulated net realized loss on investments and foreign currency
transactions (7,476,167)
Net unrealized loss on investments (4,006,198)
Net unrealized loss on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies (4,694)
------------
Total net assets $ 20,041,094
------------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $9,846,000/1,379,930 shares) $ 7.14
------------
Class B (based on $9,392,435/1,350,058 shares) $ 6.96
------------
Class C (based on $802,659/115,783 shares) $ 6.93
------------
MAXIMUM OFFERING PRICE:
Class A $ 7.58
------------
</TABLE>
14 The accompanying notes are an integral part of these financial
statements.
<PAGE>
Pioneer India Fund
STATEMENT OF OPERATIONS
For the Year Ended 10/31/97
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends (net of foreign taxes withheld of $12,668) $ 430,752
Interest (net of foreign taxes withheld of $128) 58,079
-----------
Total investment income $ 488,831
-----------
EXPENSES:
Management fees $ 272,512
Transfer agent fees
Class A 57,151
Class B 39,820
Class C 3,794
Distribution fees
Class A 26,874
Class B 97,627
Class C 10,230
Accounting 135,121
Custodian fees 182,664
Registration fees 44,852
Professional fees 77,016
Printing 26,489
Fees and expenses of nonaffiliated trustees 11,209
Miscellaneous 35,292
-----------
Total expenses $ 1,020,651
Less management fees waived and expenses
reimbursed by Pioneering Management Corporation (456,216)
Less fees paid indirectly (8,369)
-----------
Net expenses $ 556,066
-----------
Net investment loss $ (67,235)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments $(4,570,838)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (84,910) $(4,655,748)
----------- -----------
Change in net unrealized loss from:
Investments $ 5,136,682
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (1,641) $ 5,135,041
----------- -----------
Net gain on investments and foreign currency transactions $ 479,293
-----------
Net increase in net assets resulting from operations $ 412,058
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer India Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended 10/31/97 and 10/31/96
<TABLE>
<CAPTION>
Year Ended Year Ended
FROM OPERATIONS: 10/31/97 10/31/96
<S> <C> <C>
Net investment income (loss) $ (67,235) $ 22,468
Net realized loss on investments and foreign currency
transactions (4,655,748) (2,472,495)
Change in net unrealized loss on investments and foreign
currency transactions 5,135,041 (4,252,776)
------------ ------------
Net increase (decrease) in net assets resulting from
operations $ 412,058 $ (6,702,803)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 14,323,444 $ 36,957,923
Cost of shares repurchased (15,914,676) (23,423,148)
------------ ------------
Net increase (decrease) in net assets resulting from
fund share transactions $ (1,591,232) $ 13,534,775
------------ ------------
Net increase (decrease) in net assets $ (1,179,174) $ 6,831,972
NET ASSETS:
Beginning of year 21,220,268 14,388,296
------------ ------------
End of year (including accumulated net investment
income of $0 and $0, respectively) $ 20,041,094 $ 21,220,268
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
CLASS A '97 Shares '97 Amount '96 Shares '96 Amount
<S> <C> <C> <C> <C>
Shares sold 1,176,102 $ 8,627,795 3,057,493 $ 27,377,184
Less shares repurchased (1,582,733) (11,400,215) (2,262,604) (18,874,186)
---------- ------------- ---------- -------------
Net increase (decrease) (406,631) $ (2,772,420) 794,889 $ 8,502,998
---------- ------------- ---------- -------------
CLASS B
Shares sold 626,809 $ 4,498,286 994,158 $ 8,406,214
Less shares repurchased (493,129) (3,529,881) (491,660) (4,161,644)
---------- ------------- ---------- -------------
Net increase 133,680 $ 968,405 502,498 $ 4,244,570
---------- ------------- ---------- -------------
CLASS C*
Shares sold 170,338 $ 1,197,363 127,681 $ 1,174,525
Less shares repurchased (136,733) (984,580) (45,503) (387,318)
---------- ------------- ---------- -------------
Net increase 33,605 $ 212,783 82,178 $ 787,207
---------- ------------- ---------- -------------
</TABLE>
*Class C shares were first publicly offered on January 31, 1996.
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer India Fund
FINANCIAL HIGHLIGHTS 10/31/97
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/97 10/31/96
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 6.93 $ 8.47
---------- ---------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ 0.03
Net realized and unrealized gain (loss) on investments and foreign currency
transactions 0.22 (1.57)
---------- ----------
Net increase (decrease) from investment operations $ 0.21 $ (1.54)
Distributions to shareholders:
Net investment income - -
---------- ----------
Net increase (decrease) in net asset value $ 0.21 $ (1.54)
---------- ----------
Net asset value, end of period $ 7.14 $ 6.93
---------- ----------
Total return* 3.03% (18.18)%
Ratio of net expenses to average net assets 2.29%+ 2.28%+
Ratio of net investment income (loss) to average net assets (0.09)%+ 0.32%+
Portfolio turnover rate 71% 64%
Average commission rate paid(1) $ 0.0288 $ 0.0266
Net assets, end of period (in thousands) $ 9,846 $ 12,388
Ratios assuming no waiver of management fees and assumption of expenses
by PMC and no reduction for fees paid indirectly:
Net expenses 4.39% 4.29%
Net investment loss (2.19)% (1.69)%
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) (0.05)% 0.35%
Year Ended 6/23/94 to
10/31/95 10/31/94(a)
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 11.28 $ 11.50
---------- ----------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ 0.04
Net realized and unrealized gain (loss) on investments and foreign currency
transactions (2.78) (0.26)
---------- ----------
Net increase (decrease) from investment operations $ (2.79) $ (0.22)
Distributions to shareholders:
Net investment income (0.02) -
---------- ----------
Net increase (decrease) in net asset value $ (2.81) $ (0.22)
---------- ----------
Net asset value, end of period $ 8.47 $ 11.28
---------- ----------
Total return* (24.78)% (1.91)%
Ratio of net expenses to average net assets 2.28%+ 2.25%**
Ratio of net investment income (loss) to average net assets (0.14)%+ 0.92%**
Portfolio turnover rate 53% 109%**
Average commission rate paid(1) - -
Net assets, end of period (in thousands) $ 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 4.21% 6.57%**
Net investment loss (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% -
Net investment income (loss) (0.11)% -
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(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.
17
<PAGE>
Pioneer India Fund
FINANCIAL HIGHLIGHTS 10/31/97
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/97 10/31/96
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 6.80 $ 8.39
---------- ----------
Increase (decrease) from investment operations:
Net investment loss $ (0.04) $ (0.03)
Net realized and unrealized gain (loss) on investments and foreign currency
transactions 0.20 (1.56)
---------- ----------
Net increase (decrease) from investment operations $ 0.16 $ (1.59)
Distributions to shareholders:
Net investment income - -
---------- ----------
Net increase (decrease) in net asset value $ 0.16 $ (1.59)
---------- ----------
Net asset value, end of period $ 6.96 $ 6.80
---------- ----------
Total return* 2.35% (18.95)%
Ratio of net expenses to average net assets 2.90%+ 3.15%+
Ratio of net investment loss to average net assets (0.62)%+ (0.45)%+
Portfolio turnover rate 71% 64%
Average commission rate paid(1) $ 0.0288 $ 0.0266
Net assets, end of period (in thousands) $ 9,392 $ 8,275
Ratios assuming no waiver of management fees and assumption of expenses
by PMC and no reduction for fees paid indirectly:
Net expenses 4.99% 5.23%
Net investment loss (2.71)% (2.53)%
Ratios assuming waiver of management fees and assumption of expenses by
PMC and reduction for fees paid indirectly:
Net expenses 2.86% 3.13%
Net investment loss (0.58)% (0.43)%
Year Ended 6/23/94 to
10/31/95 10/31/94(a)
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 11.24 $ 11.50
---------- ----------
Increase (decrease) from investment operations:
Net investment loss $ (0.07) $ -
Net realized and unrealized gain (loss) on investments and foreign currency
transactions (2.77) (0.26)
---------- ----------
Net increase (decrease) from investment operations $ (2.84) $ (0.26)
Distributions to shareholders:
Net investment income (0.01) -
---------- ----------
Net increase (decrease) in net asset value $ (2.85) $ (0.26)
---------- ----------
Net asset value, end of period $ 8.39 $ 11.24
---------- ----------
Total return* (25.31)% (2.26)%
Ratio of net expenses to average net assets 3.01%+ 3.21%**
Ratio of net investment loss to average net assets (0.86)%+ (0.01)%**
Portfolio turnover rate 53% 109%**
Average commission rate paid(1) - -
Net assets, end of period (in thousands) $ 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 4.91% 7.50%**
Net investment loss ( 2.76)% ( 4.28)%**
Ratios assuming waiver of management fees and assumption of expenses by
PMC and reduction for fees paid indirectly:
Net expenses 2.97% -
Net investment loss ( 0.82)% -
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(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 10/31/97
<TABLE>
<CAPTION>
Year Ended 1/31/96 to
10/31/97 10/31/96
<S> <C> <C>
CLASS C
Net asset value, beginning of period $ 6.77 $ 7.85
--------- ---------
Increase (decrease) from investment operations:
Net investment loss $ (0.04) $ (0.02)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.20 (1.06)
--------- ---------
Net increase (decrease) in net asset value $ 0.16 $ (1.08)
--------- ---------
Net asset value, end of period $ 6.93 $ 6.77
--------- ---------
Total return* 2.36% (13.76)%
Ratio of net expenses to average net assets 2.84%+ 3.12%**+
Ratio of net investment loss to average net assets ( 0.56)%+ ( 0.42)%**+
Portfolio turnover rate 71% 64%
Average commission rate paid(1) $0.0288 $ 0.0266
Net assets, end of period (in thousands) $ 803 $ 557
Ratios assuming no waiver of management fees and
assumption of expenses by PMC and no reduction
for fees paid indirectly:
Net expenses 4.89% 4.63%**
Net investment loss ( 2.61)% ( 1.93)%**
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction for
fees paid indirectly:
Net expenses 2.78% 3.06%**
Net investment loss (0.50)% (0.36)%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(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
NOTES TO FINANCIAL STATEMENTS 10/31/97
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.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
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 ex-dividend
data in the exercise of reasonable diligence. Interest income is recorded on
the accrual basis, net of unrecoverable foreign taxes withheld at the
applicable country rates. Temporary cash investments are valued at amortized
cost.
20
<PAGE>
Pioneer India Fund
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.
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, 1997, the value of the
Fund's investments undergoing the registration process amounted to $1,636,692
or 8.2% 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 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
21
<PAGE>
Pioneer India Fund
NOTES TO FINANCIAL STATEMENTS 10/31/97 (continued)
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 October 31, 1997, the Fund had no outstanding portfolio or settlement
hedges.
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, 1997, the Fund paid
no 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, 1997, the Fund reclassified $67,235 and $85,974 from
accumulated net investment loss and accumulated net realized loss on
investments and foreign currency transactions, respectively, to paid-in
capital. 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.
22
<PAGE>
Pioneer India Fund
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 $9,131 in
underwriting commissions on the sale of fund shares during the year ended
October 31, 1997.
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 Agreements
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.
23
<PAGE>
Pioneer India Fund
NOTES TO FINANCIAL STATEMENTS 10/31/97 (continued)
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. At October 31, 1997, $1,170 was payable to PMC.
PMC has appointed ITI Pioneer AMC Ltd. (the Indian Adviser) as the Fund's
adviser in India. In managing the Fund's 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 $12,390 in transfer agent fees payable to PSC at October 31,
1997.
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
24
<PAGE>
Pioneer India Fund
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 $13,415 in distribution fees payable to PFD at October 31, 1997.
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 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 year ended October 31, 1997, CDSCs in the amount
of $73,544 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, 1997,
the Fund's expenses were reduced by $8,369 under such arrangements.
25
<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, 1997, 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 31,1997 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, 1997, 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 3, 1997
26
<PAGE>
Pioneer India Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham Jaskaran S. Teja, Vice President
John W. Kendrick Norman Kurland, Vice President
Marguerite A. Piret Mark Madden, Vice President
David D. Tripple William H. Keough, Treasurer
Stephen K. West Joseph P. Barri, Secretary
John Winthrop
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 LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
27
<PAGE>
THE PIONEER FAMILY OF MUTUAL FUNDS
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds Income Funds
Global/International Taxable
Pioneer America Income Trust
Pioneer Emerging Markets Fund Pioneer Bond Fund
Pioneer Europe Fund Pioneer Short-Term Income Trust*
Pioneer Gold Shares
Pioneer India Fund Tax-Exempt
Pioneer International Growth Fund Pioneer Intermediate Tax-Free Fund
Pioneer World Equity Fund Pioneer Tax-Free Income Fund
United States Money Market Fund
Pioneer Capital Growth Fund Pioneer Cash Reserves Fund
Pioneer Growth Shares
Pioneer Micro-Cap Fund*
Pioneer Mid-Cap Fund
Pioneer Small Company Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
*Offers Class A and B Shares only
28
<PAGE>
RETIREMENT PLANS FROM PIONEER
Pioneer offers retirement plans suited to the individual investor and businesses
of all sizes. For information, contact your investment professional, or call
Pioneer at 1-800-622-0176.
Individual Plans
Individual Retirement Account (IRA) The $2,000 maximum annual contribution may
be tax-deductible; earnings are tax-deferred.
Roth IRA New in 1998, $2,000 maximum annual contributions are not tax-
deductible. Earnings are tax-free for qualified withdrawals.
Plans for Small Businesses or the Self-Employed
SIMPLE (Savings Incentive Match PLan for Employees)
IRA or 401(k) Plan For firms with 100 or fewer employees. Employees can make
pre-tax contributions of up to $6,000 annually, and an employer contribution is
required.
Simplified Employee Pension Plan (SEP) Self-employed people and small- business
owners can make tax-deductible contributions of up to 15% of their income.
Employer-Sponsored Plans
401(k) Plan Allows employees to make pre-tax contributions. Also allows for
employer contributions.
403(b) Plan Lets employees of tax-exempt organizations set aside part of their
salary, before taxes, through payroll deduction.
Profit Sharing Plan Employers contribute on a discretionary basis, usually based
on profits.
Age-Weighted Profit Sharing Plan Employer makes discretionary contributions
based on employees' age and salary.
Money Purchase Pension Plan (MPP) Employers contribute based on a fixed formula.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
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HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFoneSM for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus.
[GRAPHIC OMITTED]
Pioneer Funds Distributor, Inc. 1297 - 4647
60 State Street (C) Pioneer Funds Distributor, Inc.
Boston, Massachusetts 02109 C Printed on Recycled Paper
www.pioneerfunds.com
