[Pioneer Logo]
Pioneer India
Fund
SEMIANNUAL REPORT 4/30/97
<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 15
Notes to Financial Statements 21
Report of Independent Public Accountants 27
Trustees, Officers and Service Providers 28
The Pioneer Family of Mutual Funds 29
<PAGE>
Pioneer India Fund
LETTER FROM THE CHAIRMAN 4/30/97
Dear Shareowner,
- ----------------------------------------------------------------------------
I am pleased to report that conditions improved for investors in the Indian
stock markets over the past six months. This was welcome news to all of us,
given the difficult fiscal year India, and Pioneer India Fund, experienced in
1996.
Once again, however, Indian stocks experienced both sharp declines and
tremendous rallies. Even with this type of short-term volatility, we see solid
reasons to believe that India will survive its current growing pains and be the
better market for it. We continue to take the long view, and to us India
remains an intriguing and promising market.
A final note. During the past six months, we formalized the roles several
people have filled for Pioneer India Fund over the years. Effective in February
1997, Mark Madden became the portfolio manager responsible for the Fund's
day-to-day activities. Mr. Madden has worked with the Fund since 1995, and
continues to play an important role in our international investment team.
Thank you for your continued support. Please contact your investment
representative, or us at 1-800-225-6292, if you have questions about your
investment in Pioneer India Fund.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
<PAGE>
Pioneer India Fund
PORTFOLIO SUMMARY 4/30/97
P o r t f o l i o D i v e r s i f i c a t i o n
- ----------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Pie Chart]
International
Common Stocks
Corporate 71.0%
Bonds 0.1%
Convertible
Securities 0.2%
Other International Depositary Receipts for
Securities 0.8% International Stocks 22.4%
Short-Term Cash
Equivalents 5.5%
S e c t o r D i s t r i b u t i o n
- ----------------------------------------------------------------------------
(As a percentage of equity holdings)
[Pie Chart]
Other 2% Utilities 17%
Transportation 3%
Energy 6% Basic
Industries 15%
Consumer
Durables 6%
Consumer
Non-Durables 10%
Financial 13%
Services 13%
1 0 L a r g e s t H o l d i n g s
- -------------------------------------------------------------------------------
(As a percentage of equity holdings)
1. Mahanagar Telephone 7.27% 6. Gujarat Ambuja Cements 2.85%
Nigam Ltd. Ltd.
2. Hindustan Petroleum 4.04 7. Bank of Baroda 2.84
Corp. Ltd.
3. Indian Hotels Co. Ltd. 3.40 8. Great Eastern Shipping Co. 2.76
4. Videsh Sanchar Nigam 3.10 9. Reliance Industries Ltd. 2.57
Ltd. (G.D.R.) (G.D.R.)
5. Reliance Industries Ltd. 2.93 10. Industrial Credit & 2.44
Investment Corp. of India
Ltd. (G.D.R.)
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer India Fund
PERFORMANCE UPDATE 4/30/97 CLASS A SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- -------------------------------------------------------------------------------
Net Asset Value
per Share
4/30/97 10/31/96
$7.41 $6.93
Distributions per Share Income Short-Term Long-Term
(10/31/96-4/30/97) Dividends Capital Gains Capital Gains
-- -- --
I n v e s t m e n t R e t u r n s
- ----------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer India Fund at public offering price, compared to the growth of the
MSCI Emerging Markets Asia Free Index. India is just one component of the
Index.
Average Annual Total Returns
(As of April 30, 1997)
Net Asset Public Offering
Period Value Price*
Life-of-Fund -14.19% -15.95%
(6/23/94)
1 Year -26.27 -30.49
* Reflects deduction of the maximum investment 5.75% sales charge at the
beginning of the period and assumes reinvestment of distributions at net asset
value.
[Class A shares mountain chart]
Growth of $10,000+
Pioneer India Fund* MSCI Emerging Markets
Asia Free Index
6/30/94 9425 10000
7/31/94 9574 10364
10/31/94 9246 11318
1/31/95 7620 9089
4/30/95 7538 9308
7/31/95 7981 10428
10/31/95 6955 9458
1/31/96 6520 9927
4/30/96 8252 11039
7/31/96 6988 9748
10/31/96 5707 9615
1/31/97 5772 10155
4/30/97 6084 9677
+ 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 4/30/97 CLASS B SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- ----------------------------------------------------------------------------
Net Asset Value
per Share 4/30/97 10/31/96
$7.25 $6.80
Distributions per Share Income Short-Term Long-Term
(10/31/96 - 4/30/97) Dividends Capital Gains Capital Gains
-- -- --
I n v e s t m e n t R e t u r n s
- ----------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer India Fund, compared to the growth of the MSCI Emerging Markets Asia
Free Index. India is just one component of the Index.
Average Annual Total Returns
(As of April 30, 1997)
If If
Period Held Redeemed*
Life-of-Fund -14.88% -15.78%
(6/23/94)
1 Year -26.77 -29.70
* 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.
[Class B shares mountain chart]
Growth of $10,000 +
Pioneer India Fund* MSCI Emerging Markets
Asia Free Index
6/30/94 10000 10000
7/31/94 10157 10364
10/31/94 9783 11318
1/31/95 8048 9089
4/30/95 7944 9308
7/31/96 8396 10428
10/31/95 7309 9458
1/31/96 6839 9927
4/30/96 8614 11039
7/31/96 7283 9748
10/31/96 5925 9615
1/31/97 5995 10155
4/30/97 6119 9677
+ 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 4/30/97 CLASS C SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- ----------------------------------------------------------------------------
Net Asset Value
per Share 4/30/97 10/31/96
$7.22 $6.77
Distributions per Share Income Short-Term Long-Term
(10/31/96 - 4/30/97) Dividends Capital Gains Capital Gains
-- -- --
I n v e s t m e n t R e t u r n s
- ----------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer India Fund, compared to the growth of the MSCI Emerging Markets Asia
Free Index. India is just one component of the Index.
Average Annual Total Returns
(As of April 30, 1997)
If If
Period Held Redeemed*
Life-of-Fund -6.47% -6.47%
(1/31/96)
1 Year -26.70 -26.70
* Assumes reinvestment of distributions. The 1% contingent deferred sales charge
(CDSC) applies to investments sold within one year of purchase.
[Class C shares mountain chart]
Growth of $10,000
Pioneer India Fund* MSCI Emerging Markets
Asia Free Index
1/31/96 10000 10000
11732 10269
11771 10460
4/30/96 12548 11120
11975 10889
12127 10758
7/31/96 10611 9820
10127 10071
9057 10076
10/31/96 8637 9685
8000 9950
8471 9864
1/31/97 8739 10230
9006 10447
8764 9995
4/30/97 9198 9749
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 4/30/97
D e a r S h a r e o w n e r,
- -------------------------------------------------------------------------------
India made significant progress over the six months ended April 30, 1997, even
though it was a period of turmoil. After almost a full year of doubt, lingering
questions were answered about the strength of the coalition government and
India's true commitment to opening its economy. When all was said and done,
investors around the world were returning to India's financial markets,
optimistic about India's potential.
In keeping with the more positive environment, Pioneer India Fund posted a
solid gain for the six months ended April 30. For Class A Shares, total return
was 6.93%, 6.62% for Class B Shares and 6.65% for Class C Shares, all at net
asset value. Even though the Fund has generated a loss for longer time periods,
we are encouraged by the recent strength of India's financial markets and, even
more important for long-term investors, the renewed vigor of its government and
business environment.
New Prime Minister Restores Confidence
Politics still occupied centerstage in India, but took a more positive shape as
1997 progressed. Throughout 1996, and into the early months of 1997, the
strength of the coalition government was uncertain. Things began to unravel,
however, and at the end of March the Congress Party, which had supported the
coalition government, withdrew its cooperation, believing that the coalition
government's agenda did not match the Party's. This triggered the resignation
of Prime Minister Deve Gowda and Finance Minister Palaniappan Chidambaram.
Soon after, Indar Kumar Gujral, a well-respected former Foreign Minister,
became Prime Minister. With him came the recently resigned Chidambaram, who
resumed his post of Finance Minister. Their strong show of commitment to
opening India's economy and financial markets sparked a resurgence of
enthusiasm among businesses and investors, both within and beyond India.
6
<PAGE>
Pioneer India Fund
One significant bright spot in the midst of this political turmoil was the new
budget, passed in February. Despite the tension between the factions within the
coalition government, they had banded together to pass a ground-breaking,
forward-looking budget. It contained significant changes, including 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.
Economic Progress
In addition to new optimism on the political front, we saw good progress in the
economy. Consortium banking, which required an entire group of institutions to
participate in making even the most mundane loans, ended in April. The new,
simplified process means that individuals and institutions will actually be
able to borrow. In 1996, the Reserve Bank of India lowered interest rates to
encourage lending, but the loan process stifled it. Over the past six months,
prime lending rates fell from 17% to 14%, and we expect to see lending volumes
soar. We also see signs that the government will soon take the first steps
toward deregulating oil and petroleum prices. This is all good news for India's
economy.
Long-Term Investing
Across India, stocks of large companies continued to outperform their smaller
counterparts. This paid off for the Fund, since our strategy has included more
emphasis on large-capitalization stocks. The Fund saw good performance from
Mahanagar Telephone Nigam (provider of basic telephone services in Bombay and
Delhi), Reliance Industries, State Bank of India and Videsh Sanchar Nigam (the
telecommunications company whose recent offering was heavily oversubscribed,
reflecting global investors' new interest in Indian companies). Even after
appreciating, these stocks appear to be undervalued with strong financial
underpinnings.
7
<PAGE>
Pioneer India Fund
PORTFOLIO MANAGEMENT DISCUSSION 4/30/97 (continued)
To capitalize on falling interest rates and increased lending, we bought stocks
of financial companies, including Bank of Baroda, a large regional bank. Hotels
also now play a larger role in the portfolio, since we think the improving
business climate will attract more travelers and, ultimately, vacationers. We
sold off stocks in companies dependent on cyclical economic growth. These
included Bajaj Autos, which had been one of the Fund's largest positions,
Grasim Industries and Steel Authority of India.
Looking Ahead to More Progress
Today, we still believe India offers one of the best investment opportunities
in Asia, if one is willing to take on some risks. While India's political
landscape is changing and bringing real improvements, its economy is making
forward progress and interest rates are moving down, improving liquidity. There
is no doubt that India is still emerging as a market force, and while it brings
investors some significant risks, we believe it also offers a unique potential
for profit.
Respectfully,
/s/ Mark H. Madden
Mark H. Madden,
Portfolio Manager
8
<PAGE>
Pioneer India Fund
SCHEDULE OF INVESTMENTS 4/30/97
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 94.5%
DEBENTURES - 0.2%
$28,000 Gujarat Optical, 14.0%, 12/31/99 (Convertible) $ 35,240
5,000 Vindhya Telelinks, Part B, 16.0%, 1/1/01 8,644
-----------
Total Debentures
(Cost $49,092) $ 43,884
-----------
Shares
COMMON STOCKS - 93.5%
Basic Industries - 14.4%
Chemicals - 5.6%
25,000 BASF India Ltd. $ 127,604
10,000 BASF India Ltd. (E Shares) 51,042
5,000 Bayer (India) Ltd. 231,436
4,050 Colour-Chem Ltd. 356,803
10,000 Indian Petrochemical Corp. Ltd. 40,134
1,000,000 Kothari Petrochem Ltd.* 279,681
22,700 Thirumalai Chemicals Ltd. 39,045
-----------
$1,125,745
-----------
Agrochemicals & Fertilizers - 0.8%
168,400 Indo Gulf Fertilizers and Chemicals Corp. Ltd. (G.D.R.) $ 159,980
2,100 Tata Chemicals Ltd. 9,397
-----------
$ 169,377
-----------
Iron & Steel - 2.4%
328,400 Essar Steel Ltd. $ 167,621
61,500 Tata Iron & Steel Co. Ltd. 313,907
-----------
$ 481,528
-----------
Metals & Mining - 2.9%
11,400 Hindalco Industries Ltd. $ 298,750
208,600 National Aluminum Co. Ltd. 280,039
-----------
$ 578,789
-----------
Paper Products - 2.7%
119,300 Ballarpur Industries Ltd. $ 159,322
87,250 ITC Bhadrachalam Paperboards Ltd. 123,841
137,700 Tamilnadu Newsprint & Papers Ltd. 268,622
-----------
$ 551,785
-----------
Total Basic Industries $2,907,224
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer India Fund
SCHEDULE OF INVESTMENTS 4/30/97 (continued)
Shares Value
Capital Goods - 14.2%
Construction, Building Materials & Engineering - 6.6%
214,000 Alsa Construction & Housing Ltd. $ 41,896
2,424 Associated Cement Companies Ltd. 100,048
68,500 Gujarat Ambuja Cements Ltd. 544,571
50,850 India Cements Ltd. 102,397
100,000 India Cements Ltd. (G.D.R.) 275,000
250,000 Prism Cement Ltd.* 36,359
1,550 Raasi Cement Ltd. 2,696
125 SKF Bearings India Ltd. 7,971
30,000 Thermax India Ltd. 226,626
----------
$1,337,564
----------
Machinery - 3.7%
42,650 Kirloskar Cummins Ltd. $ 454,770
2,835 Sandvik Asia Ltd. 117,012
18,700 Siemens India Ltd. 141,734
23,000 Veejay Lakshmi Engineering Works Ltd. 26,696
----------
$ 740,212
----------
Producer Goods - 3.2%
22,950 Cosmo Films Ltd. $ 16,047
97,850 Carborandum Universal, Ltd. 339,348
8,750 Garware-Wall Ropes Ltd. 5,812
100 GKN Invel Transmission Ltd. 229
45,000 Jain Irrigation Systems Ltd. (G.D.R.) 30,938
90,000 Polyplex Corp. 32,723
46,850 Premier Instruments & Constructions Ltd. 209,649
----------
$ 634,746
----------
Telecommmunications Equipment - 0.7%
10,000 Gujarat Optical Communications Ltd.* $ 909
87,500 Usha Beltron Ltd. (G.D.R.) 142,188
----------
$ 143,097
----------
Total Capital Goods $2,855,619
----------
Consumer Durables - 5.6%
Consumer Durables - 1.4%
88,000 TTK Prestige Ltd. $ 111,492
92,900 Videocon International Ltd. 83,144
133,997 Voltas Ltd. 93,316
----------
$ 287,952
----------
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
Pioneer India Fund
Shares Value
Motor Vehicles - 4.2%
50 Ashok Leyland Ltd. $ 115
10,800 Bajaj Auto Ltd. 275,173
1,000 LML Ltd.* 1,098
25,000 Tata Engineering & Locomotive Ltd. 281,779
25,650 TVS Suzuki Ltd. 289,822
-----------
$ 847,987
-----------
Total Consumer Durables $1,135,939
-----------
Consumer Non-Durables - 9.6%
Agriculture & Food - 1.5%
11,000 Balrampur Chini Mills, Ltd. $ 29,765
25,300 Britannia Industries Ltd. 169,822
54,600 KCP Ltd.* 56,730
54,600 KCP Sugar and Industries Corp.* 37,795
-----------
$ 294,112
-----------
Textiles/Clothes - 7.5%
53,100 Arvind Mills Ltd. (G.D.R.) $ 251,960
60,450 Precot Mills Ltd. (New) 155,542
65,000 Reliance Industries Ltd. 559,922
25,000 Reliance Industries Ltd. (G.D.R.) 490,500
88,500 SIV Industries Ltd. (G.D.R.) 65,269
-----------
$1,523,193
-----------
Cosmetics - 0.6%
142,500 Godrej Soaps, Ltd. $ 117,571
-----------
Total Consumer Non-Durables $1,934,876
-----------
Energy - 5.6%
Oil Refining & Drilling - 5.6%
15,000 Bharat Petroleum Ltd. $ 161,516
66,000 Hindustan Petroleum Corp., Ltd. 770,661
186,600 Madras Refineries Ltd. 206,145
8 Oil & Natural Gas Commission Ltd.* 55
-----------
Total Energy $1,138,377
-----------
Financial - 12.2%
Commercial Banks - 6.4%
250,000 Bank of Baroda*+ $ 541,882
70,000 Federal Bank Ltd. 171,305
100,000 Oriental Bank of Commerce 213,257
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Pioneer India Fund
SCHEDULE OF INVESTMENTS 4/30/97 (continued)
Shares Value
Commercial Banks - (continued)
600 State Bank of India $ 5,340
15,000 State Bank of India (G.D.R)* 364,875
-----------
$1,296,659
-----------
Misc. Finance - 5.8%
56,300 20th Century Finance Ltd. $ 53,851
1,000 Housing Development Finance Corp. Ltd. 88,876
40,450 ICICI 65,616
46,000 ICICI (G.D.R.) 465,750
100,000 LIC Housing Finance 168,088
50,000 Pakistan Investment Fund Inc.* 256,250
127,100 SCICI Ltd. 78,204
-----------
$1,176,635
-----------
Total Financial $2,473,294
-----------
Services - 11.9%
Hotel/Restaurant - 8.0%
104,600 East India Hotels Associated Ltd. $ 191,618
35,500 East India Hotels Ltd. 410,799
45,000 Hotel Leelaventure Ltd. 103,832
34,650 Indian Hotels Co. Ltd. 649,294
11,000 Indian Hotels Co. Ltd. (G.D.R.) 262,570
-----------
$1,618,113
-----------
Pharmaceuticals - 3.9%
2,000 Dabur India Ltd. $ 14,362
54,000 Dr. Reddy's Laboratories Ltd. (G.D.R.) 452,250
3,490 Hindustan Ciba-Geigy Ltd. 317,228
-----------
$ 783,840
-----------
Total Services $2,401,953
-----------
Technology - 0.2%
Software - 0.2%
75,000 Nucleus Software Exports Ltd.* $ 37,757
-----------
Total Technology $ 37,757
-----------
Transportation - 3.2%
Ships & Shipping - 3.2%
479,800 Great Eastern Shipping Co. $ 526,700
20,200 Great Eastern Shipping Co. Ltd. (G.D.R.) 110,999
-----------
Total Transportation $ 637,699
-----------
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
Pioneer India Fund
Shares Value
Utilities - 15.1%
Electric Utility - 5.3%
30,300 BSES Ltd. $ 206,774
10,000 BSES Ltd. (G.D.R.) 235,000
50,000 CESC Ltd. 62,928
20,000 CESC (Class E)* 25,171
141,900 CESC Ltd. (G.D.R.) 198,660
1,000 Tata Electric Co. (G.D.R.) 342,500
------------
$ 1,071,033
------------
Telecommunications - 9.8%
169,000 Mahanagar Telephone Nigam Ltd. $ 1,387,260
30,000 Videsh Sanchar Nigam Ltd. (G.D.R.) 592,350
------------
$ 1,979,610
------------
Total Utilities $ 3,050,643
------------
Miscellaneous - 1.5%
Conglomerates & Holdings - 1.5%
21,850 Grasim Industries Ltd. $ 209,150
75,000 J.K. Corp. Ltd. (G.D.R.) 79,688
2,500 Raymond Ltd. (G.D.S.) 9,562
------------
Total Miscellaneous $ 298,400
------------
Total Common Stocks
(Cost $24,327,159) $18,871,781
------------
WARRANTS - 0.8%
70,000 CESC Ltd. (Class B)* $ 104,741
48,000 Hotel Leelaventure Ltd.* 59,069
------------
Total Warrants
(Cost $200,957) $ 163,810
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $24,577,208) $19,079,475
------------
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer India Fund
SCHEDULE OF INVESTMENTS 4/30/97 (continued)
Principal
Amount Value
TEMPORARY CASH INVESTMENT - 5.5%
Repurchase Agreement - 5.5%
1,100,000 Chase Manhattan Bank, 4/30/97, 5.27%, repurchase
price of $1,100,000 plus accrued interest on 5/1/97,
collateralized by $1,116,000 U.S. Treasury Note,
5.125%, 11/30/98 $ 1,100,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,100,000) $ 1,100,000
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100.0%
(Cost $25,677,208) (a) (b) $ 20,179,475
============
* Non-income producing security.
+ Partly-paid security--additional subscription payment
of INR 35.00/share on a later date to be determined by
the company.
(a) At April 30, 1997, the net unrealized loss on investments
based on cost for federal income tax purposes of $25,677,208
was as follows: Aggregate gross unrealized gain for all
investments in which there is an excess of value
over tax cost $ 1,911,039
Aggregrate gross unrealized loss for all investments in
which there is an excess of tax cost over value (7,408,772)
------------
Net unrealized loss $ (5,497,733)
============
(b) At October 31, 1996, the Fund had a capital loss carryforward of
$2,906,393 which will expire between 2002 and 2004 if not utilized.
Purchases and sales of securities (excluding temporary cash investments)
for the six months ended April 30, 1997 aggregated $5,744,385 and
$6,522,111, respectively.
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer India Fund
BALANCE SHEET 4/30/97
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash investment
of $1,100,000) (cost $25,677,208) $20,179,475
Cash 56,000
Foreign currencies, at value 1,589,390
Receivables -
Investment securities sold 254,169
Fund shares sold 281,496
Dividends, interest and foreign taxes withheld 24,411
Due from Pioneering Management Corporation 14,095
Other 1,100
-----------
Total assets $22,400,136
-----------
LIABILITIES:
Payables -
Investment securities purchased 200,156
Fund shares repurchased 63,284
Due to affiliates 24,458
Accrued expenses 81,424
-----------
Total liabilities $ 369,322
-----------
NET ASSETS:
Paid-in capital $32,866,532
Accumulated net investment loss (169,554)
Accumulated net realized loss on investments and foreign currency
transactions (5,172,100)
Net unrealized loss on investments (5,497,733)
Net unrealized gain on forward foreign currency contracts and other
assets and liabilities denominated in foreign currencies 3,669
-----------
Total net assets $22,030,814
===========
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $10,785,146/1,454,604 shares) $ 7.41
===========
Class B (based on $10,102,574/1,392,960 shares) $ 7.25
===========
Class C (based on $1,143,094/158,256 shares) $ 7.22
===========
MAXIMUM OFFERING PRICE:
Class A $ 7.86
===========
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer India Fund
STATEMENT OF OPERATIONS
For the Six Months Ended 4/30/97
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $9,320) $ 53,971
Interest (net of foreign taxes withheld of $84) 40,908
------------
Total investment income $ 94,879
------------
EXPENSES:
Management fees $ 129,132
Transfer agent fees
Class A 26,772
Class B 17,943
Class C 1,659
Distribution fees
Class A 13,406
Class B 44,962
Class C 4,718
Accounting 70,522
Custodian fees 90,572
Registration fees 32,774
Professional fees 29,772
Printing 9,543
Fees and expenses of nonaffiliated trustees 7,851
Miscellaneous 14,546
------------
Total expenses $ 494,172
Less management fees waived and expenses
reimbursed by Pioneering Management Corporation (226,625)
Less fees paid indirectly (3,114)
------------
Net expenses $ 264,433
------------
Net investment loss $ (169,554)
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments $ (2,247,491)
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies (18,216) $ (2,265,707)
------------ ------------
Change in net unrealized loss from:
Investments $ 3,645,147
Forward foreign currency contracts and other assets
and liabilities denominated in foreign currencies 6,722 $ 3,651,869
------------ ------------
Net gain on investments and foreign currency transactions $ 1,386,162
------------
Net increase in net assets resulting from operations $ 1,216,608
============
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer India Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended 4/30/97 and the Year Ended 10/31/96
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
FROM OPERATIONS: 4/30/97 10/31/96
<S> <C> <C>
Net investment income (loss) $ (169,554) $ 22,468
Net realized loss on investments and foreign currency
transactions (2,265,707) (2,472,495)
Change in net unrealized loss on investments and foreign
currency transactions 3,651,869 (4,252,776)
------------ ------------
Net increase (decrease) in net assets resulting from
operations $ 1,216,608 $ (6,702,803)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 9,809,449 $ 36,957,923
Cost of shares repurchased (10,215,511) (23,423,148)
------------ ------------
Net increase (decrease) in net assets resulting from
fund share transactions $ (406,062) $ 13,534,775
------------ ------------
Net increase in net assets $ 810,546 $ 6,831,972
NET ASSETS:
Beginning of period 21,220,268 14,388,296
------------ ------------
End of period (including accumulated net investment loss
of $169,554 and $0, respectively) $ 22,030,814 $ 21,220,268
============ ============
</TABLE>
<TABLE>
<CAPTION>
CLASS A '97 Shares '97 Amount '96 Shares '96 Amount
<S> <C> <C> <C> <C>
Shares sold 816,759 $ 5,815,187 3,057,493 $ 27,377,184
Less shares repurchased (1,148,716) (8,006,898) (2,262,604) (18,874,186)
----------- ------------ ---------- ------------
Net increase (decrease) (331,957) $ (2,191,711) 794,889 $ 8,502,998
=========== ============ ========== ============
CLASS B
Shares sold 439,186 $ 3,045,094 994,158 $ 8,406,214
Less shares repurchased (262,604) (1,784,267) (491,660) (4,161,644)
----------- ------------ ----------- ------------
Net increase 176,582 $ 1,260,827 502,498 $ 4,244,570
=========== ============ =========== ============
CLASS C*
Shares sold 137,377 $ 949,168 127,681 $ 1,174,525
Less shares repurchased (61,299) (424,346) (45,503) (387,318)
----------- ------------ ----------- ------------
Net increase 76,078 $ 524,822 82,178 $ 787,207
=========== ============ =========== ============
</TABLE>
*Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
<TABLE>
<CAPTION>
Six Months
Ended 4/30/97
<S> <C>
CLASS A
Net asset value, beginning of period $ 6.93
----------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.05)
Net realized and unrealized gain (loss) on investments and foreign currency
transactions 0.53
----------
Net increase (decrease) from investment operations $ 0.48
Distributions to shareholders from:
Net investment income -
----------
Net increase (decrease) in net asset value $ 0.48
----------
Net asset value, end of period $ 7.41
==========
Total return* 6.93%
Ratio of net expenses to average net assets 2.28%**+
Ratio of net investment income (loss) to average net assets (1.38)%**+
Portfolio turnover rate 67%**
Average commission rate paid(1) $ 0.0316
Net assets, end of period (in thousands) $ 10,785
Ratios assuming no waiver of management fees and assumption of expenses
by PMC and no reduction for fees paid indirectly:
Net expenses 4.49%**
Net investment loss (3.59)%**
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) (1.35)%**
</TABLE>
<TABLE>
<CAPTION>
Year Ended Year Ended 6/23/94 to
10/31/96 10/31/95 10/31/94(a)
<S> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 8.47 $ 11.28 $ 11.50
----------- ---------- ----------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.03 $ (0.01) $ 0.04
Net realized and unrealized gain (loss) on investments and foreign currency
transactions (1.57) (2.78) (0.26)
----------- ---------- ----------
Net increase (decrease) from investment operations $ (1.54) $ (2.79) $ (0.22)
Distributions to shareholders from:
Net investment income -- (0.02) --
----------- ---------- ----------
Net increase (decrease) in net asset value $ (1.54) $ (2.81) $ (0.22)
----------- ---------- ----------
Net asset value, end of period $ 6.93 $ 8.47 $ 11.28
=========== ========== ==========
Total return* (18.18)% (24.78)% (1.91)%
Ratio of net expenses to average net assets 2.28%+ 2.28%+ 2.25%**
Ratio of net investment income (loss) to average net assets 0.32%+ (0.14)%+ 0.92%**
Portfolio turnover rate 64% 53% 109%**
Average commission rate paid(1) $ 0.0266 $ - $ -
Net assets, end of period (in thousands) $ 12,388 $ 8,397 $ 11,445
Ratios assuming no waiver of management fees and assumption of expenses
by PMC and no reduction for fees paid indirectly:
Net expenses 4.29% 4.21% 6.57%**
Net investment loss (1.69)% (2.07)% (3.40)%**
Ratios assuming waiver of management fees and assumption of expenses by
PMC and reduction for fees paid indirectly:
Net expenses 2.25% 2.25% --
Net investment income (loss) 0.35% (0.11)% --
</TABLE>
(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.
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
Six Months
Ended 4/30/97
<S> <C>
CLASS B
Net asset value, beginning of period $ 6.80
----------
Increase (decrease) from investment operations:
Net investment loss $ (0.06)
Net realized and unrealized gain (loss) on investments and foreign currency
transactions 0.51
----------
Net increase (decrease) from investment operations $ 0.45
Distributions to shareholders from:
Net investment income --
----------
Net increase (decrease) in net asset value $ 0.45
----------
Net asset value, end of period $ 7.25
==========
Total return* 6.62%
Ratio of net expenses to average net assets 2.93%**+
Ratio of net investment loss to average net assets (1.9)%**+
Portfolio turnover rate 67%**
Average commission rate paid (1) $ 0.0316
Net assets, end of period (in thousands) $ 10,103
Ratios assuming no waiver of management fees and assumption of expenses
by PMC and no reduction for fees paid indirectly:
Net expenses 5.11%**
Net investment loss (4.16)%**
Ratios assuming waiver of management fees and assumption of expenses by
PMC and reduction for fees paid indirectly:
Net expenses 2.90%**
Net investment loss (1.95)%**
</TABLE>
<TABLE>
<CAPTION>
Year Ended Year Ended 6/23/94 to
10/31/96 10/31/95 10/31/94(a)
<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
transactions (1.56) (2.77) (0.26)
---------- ---------- ----------
Net increase (decrease) from investment operations $ (1.59) $ (2.84) $ (0.26)
Distributions to shareholders from:
Net investment income - (0.01) -
---------- ---------- ----------
Net increase (decrease) in net asset value $ (1.59) $ (2.85) $ (0.26)
---------- ---------- ----------
Net asset value, end of period $ 6.80 $ 8.39 $ 11.24
---------- ---------- ----------
Total return* (18.95)% (25.31)% (2.26)%
Ratio of net expenses to average net assets 3.15%+ 3.01%+ 3.21%**
Ratio of net investment loss to average net assets (0.45)%+ (0.86)%+ (0.01)%**
Portfolio turnover rate 64% 53% 109%**
Average commission rate paid (1) $ 0.0266 $ - $ -
Net assets, end of period (in thousands) $ 8,275 $ 5,991 $ 6,084
Ratios assuming no waiver of management fees and assumption of expenses
by PMC and no reduction for fees paid indirectly:
Net expenses 5.23% 4.91% 7.50%**
Net investment loss (2.53)% (2.76)% (4.28)%**
Ratios assuming waiver of management fees and assumption of expenses by
PMC and reduction for fees paid indirectly:
- - Net expenses 3.13% 2.97% -
Net investment loss (0.43)% (0.82)% -
</TABLE>
(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. 19
<PAGE>
Pioneer India Fund
FINANCIAL HIGHLIGHTS 4/30/97
<TABLE>
<CAPTION>
Six Months 1/31/96 to
Ended 4/30/97 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 $ (0.06) $ (0.02)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions 0.51 (1.06)
---------- ----------
Net increase (decrease) in net asset value $ 0.45 $ (1.08)
---------- ----------
Net asset value, end of period $ 7.22 $ 6.77
========== ==========
Total return* 6.65% (13.76)%
Ratio of net expenses to average net assets 2.88%**+ 3.12%**+
Ratio of net investment loss to average net assets (1.95)%**+ (0.42)%**+
Portfolio turnover rate 67%** 64%
Average commission rate paid (1) $ 0.0316 $ 0.0266
Net assets, end of period (in thousands) $ 1,143 $ 557
Ratios assuming no waiver of management fees and
assumption of expenses by PMC and no reduction
for fees paid indirectly:
Net expenses 4.96%** 4.63%**
Net investment loss (4.03)%** (1.93)%**
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction for
fees paid indirectly:
Net expenses 2.82%** 3.06%**
Net investment loss (1.89)%** (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.
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer India Fund
NOTES TO FINANCIAL STATEMENTS 4/30/97
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 appli-
21
<PAGE>
Pioneer India Fund
NOTES TO FINANCIAL STATEMENTS 4/30/97 (continued)
cable country rates. Temporary cash investments are valued at amortized
cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities that have
the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
The Fund's investments in countries with limited or developing markets, such
as India, may subject the Fund to greater degree of risk than in a developed
market. Risks associated with these developing markets, attributable to
political, social or economic factors, may affect the price of the Fund's
investments and income generated by these investments, as well as the Fund's
ability to repatriate such amounts.
In addition, delays are common in registering transfers of securities in
India, and the Fund may be unable to sell portfolio securities until the
registration process is completed. At April 30, 1997, the value of the
Fund's investments undergoing the registration process amounted to $703,999
or 3.2% 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,
22
<PAGE>
Pioneer India Fund
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 closing transaction or
extinguished by delivery of the currency. Risks may arise upon entering into
these contracts from the potential inability of counterparties to meet the
terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar.
D. Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
In addition to the requirements of the Internal Revenue Code, the Fund may
also be required to pay local taxes on net realized capital gains in certain
countries. The required capital gains taxes, if any, are determined in
accordance with local tax laws. In determining daily net asset value, the
Fund estimates the reserve for capital gains taxes, if any, associated with
net unrealized gains on certain portfolio securities. The estimated reserve
for capital gains taxes, if any, is based on the holding periods of such
securities and the related tax rates, tax loss carryforward (if applicable)
and other such factors. During the six months ended April 30, 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.
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 $7,092 in
underwriting commissions on the sale of fund shares during the six months
ended April 30, 1997.
23
<PAGE>
Pioneer India Fund
NOTES TO FINANCIAL STATEMENTS 4/30/97 (continued)
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.
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.
24
<PAGE>
Pioneer India Fund
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund.
PMC has appointed ITI Pioneer AMC Ltd. (the Indian Adviser) as the Fund's
adviser in India. In managing the Funds' Indian investments, PMC relies on the
advice and local expertise of the Indian Adviser. The Indian Adviser is a joint
venture between PMC and Investment Trust of India Limited (ITI), a corporation
organized under the laws of India. As compensation for its services under its
subadvisory agreement with PMC and the Fund, PMC pays the Indian Adviser a
management fee at the annual rate from 0.10% to 0.60% of the Fund's average
gross assets invested in India's securities markets, including assets invested
in American, global or other types of depository receipts for securities traded
in India's securities markets. The annual rate is 0.10% of such gross assets up
to $15 million; 0.20% of the next $30 million; 0.40% of the next $15 million;
and 0.60% of the excess over $60 million.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in due
to affiliates is $12,943 in transfer agent fees payable to PSC at April 30,
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 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 $11,515 in distribution fees payable
to PFD at April 30, 1997.
25
<PAGE>
Pioneer India Fund
NOTES TO FINANCIAL STATEMENTS 4/30/97 (continued)
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 six months ended April 30, 1997, CDSCs in the
amount of $38,771 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 six months ended April 30,
1997, the Fund's expenses were reduced by $3,114 under such arrangements.
26
<PAGE>
Pioneer India Fund
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and the Board of Trustees of Pioneer India Fund:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer India Fund as of April 30, 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
April 30, 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 April 30, 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
June 2, 1997
27
<PAGE>
Pioneer India Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Officers Trustees
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Richard H. Egdahl, M.D. President
Margaret B.W. Graham David D. Tripple, Executive Vice President
John W. Kendrick Jaskaran S. Teja, Vice President
Marguerite A. Piret Norman Kurland, Vice President
David D. Tripple Mark Madden, Vice President
Stephen K. West William H. Keough, Treasurer
John Winthrop Joseph P. Barri, Secretary
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
28
<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 Emerging Markets Fund Pioneer America Income Trust
Pioneer Europe Fund Pioneer Bond Fund
Pioneer Gold Shares Pioneer Short-Term Income Trust*
Pioneer India Fund
Pioneer International Growth Fund Tax-Exempt
Pioneer World Equity Fund Pioneer Intermediate Tax-Free Fund
Pioneer Tax-Free Income Fund
United States
Pioneer Capital Growth Fund Money Market Fund
Pioneer Growth Shares Pioneer Cash Reserves Fund
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
29
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
You can call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms
1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions
1-800-225-4321
Retirement plans information
1-800-622-0176
Telecommunications Device for the Deaf (TDD)
1-800-225-1997
Or write to us at:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax
1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Or visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer Logo]
Pioneer Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109
0697 - 4219
(C) Pioneer Funds Distributor, Inc.
[recycle symbol] Printed on Recycled Paper
