File No. 33-77472
File No. 811-08468
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934
Filed by the Registrant [X]
Filed by party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary proxy statement
[ ] Confidential, for Use of the Commission Only (as permitted
by Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[X] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Rule 14a-11(c) or
Rule 14a-12
Pioneer India Fund
(Name of Registrant as Specified in Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required
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PIONEER INDIA FUND PROXY SOLICITATION QUESTIONS AND ANSWERS
QUESTIONS ON THE PROXY STATEMENT
Q: WHAT DO THE PROPOSALS FOR PIONEER INDIA FUND MEAN?
A: Pioneer India Fund has called a meeting for shareowners to vote on
certain issues. The upcoming meeting is scheduled for September 15, 1998. THE
FUND'S TRUSTEES, WHOSE PRIMARY FUNCTION IS TO PROTECT YOUR INTERESTS AS A
SHAREOWNER, RECOMMEND THAT YOU VOTE FOR EACH PROPOSAL.
Here is what a FOR vote means for each of the proposals being considered.
PROPOSAL 1:
APPROVE A CHANGE TO THE FUND'S PRIMARY INVESTMENT FOCUS, allowing the Fund to
broaden its investment exposure to include countries in Asia (excluding Japan)
as well as the Indian Subcontinent. The Fund's name would change to Pioneer
Indo-Asia Fund.
If Proposal 1 is approved, the Fund's investment objective will remain long-term
capital growth. However, the Fund WOULD NOT be required to maintain a specific
percentage of its assets in any single country in the region, including India.
Additionally, if Proposal 1 is approved, the Fund's adviser will lower its
annual management fee from 1.25% to 1.10% of the Fund's average daily net
assets.
PROPOSAL 2:
ELECT NINE TRUSTEES TO THE BOARD. The Trustees supervise the Fund's activities
and review contractual arrangements with companies that provide services to the
Fund. All of the nominees currently serve as Trustees.
PROPOSAL 3(A), 3(B), 3(C) AND 3(D):
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PIONEER INDIA FUND PROXY SOLICIATION QUESTIONS AND ANSWERS
MODERNIZE CERTAIN INVESTMENT RESTRICTIONS to conform to current standards in
place for other Pioneer funds. The Trustees believe the proposed changes are
appropriate and necessary to provide future flexibility in the Fund's investment
operations. For detail on each of the proposed changes, we encourage you to
review the Proxy Statement.
PROPOSAL 4:
RATIFY THE SELECTION OF ARTHUR ANDERSEN LLP as the Fund's independent public
accountants for the fiscal year ending October 31, 1998.
QUESTIONS ON PROPOSAL 1
Q: HOW COULD A BROADER SPECTRUM OF INVESTMENTS HELP THE FUND?
A: The Trustees believe the proposed change to the Fund's investment focus
will be beneficial to current shareowners by making the Fund more competitive
and more attractive to new investors.
Although Pioneering Management Corporation continues to believe in India's
long-term prospects, we believe that most investors are looking for
opportunities in Asia on a regional basis as opposed to a single-country focus.
Specifically:
o We may be able to gather assets more effectively and take advantage of
the efficiencies associated with managing a larger pool of assets, such
as lower fixed expenses.
o Expanding the Fund's investment parameters to the Indo-Asian region
(excluding Japan) gives us a bigger market in which to compete for
assets.
Naturally, before proposing a change in the investment focus Pioneer undertook
extensive research.
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PIONEER INDIA FUND PROXY SOLICIATION QUESTIONS AND ANSWERS
Our research showed that:
o According to Strategic Insight, an independent financial reporting
service, there were 13 non-proprietary funds invested in the Pacific
Region (excluding Japan). As of March 31, 1998 those funds held $1.4
billion in assets vs. the $95 million held by the two India- focused
funds (including the $13 million in Pioneer India Fund).
o The whole universe of 36 Pacific Region (excluding Japan) portfolios
tracked by Strategic Insight represented $4.3 billion as of March 31,
1998.
Q: WHY EXCLUDE JAPAN?
A: Mutual funds that invest in the Pacific Region are separated into two
categories: those that include Japan and those that exclude Japan. We believe
the Fund would benefit most from investing in the developing Asian markets,
outside of Japan.
Specifically:
o Japan is a more mature market and does not represent the growth
potential of the region in the same way as other Indo-Asian countries.
o To invest in Japan and remain competitive with other funds that invest
in Japan would require the Fund's portfolio to be weighted more heavily
than we would like in the Japanese market. According to Morningstar,
the average Japan weighting for 45 Pacific stock funds (including
Japan) is 35.9% as of March 31, 1998. A weighting of this magnitude
would diminish the impact of the less dominant countries in the
portfolio.
Q: WHERE WOULD THE NEW INVESTMENT POLICY ALLOW THE FUND TO INVEST?
A: Australia, Bangladesh, China, Hong Kong, India, Indonesia, Korea,
Malaysia, Mongolia, New Zealand, Pakistan, the Philippines, Singapore, Sri
Lanka, Taiwan and Thailand, as well as any other country in Asia (excluding
Japan) to the extent that foreign investors are permitted to invest there.
Q: WHY IS THE MANAGEMENT FEE BEING CHANGED?
A: To further increase the Fund's competitive appeal in the larger arena
of Asian regional funds (excluding Japan), the Fund's adviser, Pioneering
Management Corporation, intends to reduce its annual management fee from 1.25%
to 1.10% of the Fund's average daily net assets.
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PIONEER INDIA FUND PROXY SOLICIATION QUESTIONS AND ANSWERS
Naturally, before proposing a change in the management fee Pioneer undertook
extensive research.
Our research showed that:
o Management fees among the 27 Pacific Region (ex-Japan) funds tracked by
the Lipper Analytical Services ranged from 0.75% to 1.25% as of
December 31, 1997.
o Our proposed management fee of 1.10% would be just slightly above the
1.00% median of that Lipper universe (as of December 31, 1997).
Q: WHAT DOES A CHANGE TO THE MANAGEMENT FEE MEAN FOR THE FUND'S EXPENSE
RATIO?
A: Reducing the management fee would bring the Fund's total expense ratio
in line with its new competitive universe. With the new management fee
structure, we estimate that Pioneer Indo-Asia Fund's total expense ratio would
become 2.10% (after a voluntary management fee waiver and reimbursement of
expenses) versus the current 2.25%.
Our research shows:
o The median total expense ratio for the universe of 13
dealer-distributed funds tracked by Lipper Analytical Services as of
December 31, 1997 is 2.00%.
Q: WHO WILL MANAGE THE FUND?
A: Pioneer will continue to manage the Fund. Christopher D. Lively, CFA,
has been responsible for the day-to-day management of the portfolio since March
1, 1998. Mr. Lively joined Pioneer in 1993 as an Asia analyst. He has previously
served as an Assistant Portfolio Manager of the Pioneer International Growth
Fund.
Q: WHEN WOULD THE FUND'S NEW INVESTMENT FOCUS, NAME AND PROPOSED FEE
TAKE EFFECT?
A: The effective date is expected to be October 1, 1998.
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PIONEER INDIA FUND PROXY SOLICIATION QUESTIONS AND ANSWERS
QUESTIONS ON PROPOSAL 2
Q: WHO IS BEING NOMINATED TO SERVE AS TRUSTEE?
A: All of the nine nominees currently serve as Trustees. Their
biographical information is included in the Proxy Statement. The Trustees'
primary role is to protect your interests as a shareowner.
QUESTIONS ON PROPOSALS 3(A), 3(B), 3(C) AND 3(D):
Q: WHY ARE SO MANY CHANGES BEING PROPOSED TO THE FUND'S INVESTMENT
RESTRICTIONS?
A: Since the Fund's inception, the mutual fund industry has evolved. The
Fund's Trustees believe the proposed changes are appropriate and necessary to
update the Fund and modernize it to conform to current standards in the mutual
fund industry, along with standards of other Pioneer funds.
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PIONEER INDIA FUND PROXY SOLICIATION QUESTIONS AND ANSWERS
QUESTIONS ON PROPOSAL 4
Q: WHO IS ARTHUR ANDERSEN LLP?
A: Arthur Andersen LLP is one of the six largest CPA firms in the U.S. The
firm is the current independent public accountants for the Fund and other
Pioneer funds.
GENERAL QUESTIONS
Q: WHO MAKES THE FINAL DECISIONS ABOUT THESE PROPOSALS?
A: You do. The Trustees you have elected - whose primary role, as
mentioned, is protecting your interests as a shareowner - have unanimously
approved the proposals and encourage you to vote FOR each. However, you must
make the final decision, either by attending the meeting in person or by giving
your proxy vote.
Q: WHEN AND WHERE WILL THE MEETING TAKE PLACE?
A: The meeting is scheduled for Tuesday, September 15, 1998, in Boston.
Q: WHAT IF I HAVE QUESTIONS ABOUT MY INVESTMENT?
A: The investment professional that you purchased Pioneer India Fund
from can provide you with additional information as needed.
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