<PAGE>
[Pioneer Logo]
Pioneer India
Fund
SEMIANNUAL REPORT 4/30/98
<PAGE>
Table of Contents
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 10
Financial Statements 14
Notes to Financial Statements 20
Report of Independent Public Accountants 26
Trustees, Officers and Service Providers 27
Retirement Plans from Pioneer 28
</TABLE>
<PAGE>
Pioneer India Fund
================================================================================
LETTER FROM THE CHAIRMAN 4/30/98
================================================================================
Dear Shareowner,
- --------------------------------------------------------------------------------
I am pleased to introduce this report for Pioneer India Fund, covering the six
months ended April 30, 1998. 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.
The last six months were a remarkable period on the global economic stage. As
the period opened, we saw how interdependent countries have become within a
greater global economy. The economic crisis that began with Thailand in mid-1997
had spread and more Asian economies had crashed, their currencies devalued.
Asia's troubles instigated the Dow Jones Industrial Average's largest single-day
point drop while other markets around the world also reacted violently. When the
Dow recovered quickly, including its biggest one-day point gain, it helped bring
confidence back to many international markets, especially Europe.
We also saw the idea of a unified Europe with a single currency take root and
grow during the period. This historical course further illustrated the
importance of the burgeoning global economy and the drive by nations and regions
to remain competitive within it.
As the rest of the world looked for a competitive advantage so too did India.
Economic reform continued, even in the face of political change. Unfortunately,
as this report goes to press, India also initiated a series of nuclear tests
that put the world and the region on edge. The United States has issued
sanctions against India although the global community has not. We hope this
crisis will soon pass and India will get on with the business of building its
economy. We are confident that the world's largest democracy of nine hundred
million people still offers considerable long-term investment potential.
I encourage you to read on to learn more about your Fund. Please contact your
investment professional or us 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 4/30/98
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 78.5%
Depositary Receipts for International Stocks 21.3%
Corporate Bonds 0.1%
Warrants 0.1%
- --------------------------------------------------------------------------------
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] ----------------------------------
Technology 20%
Energy 17%
Financial 12%
Capital Goods 12%
Healthcare 10%
Basic Materials 10%
Consumer Cyclicals 9%
Communication Services 9%
Utilities 1%
- --------------------------------------------------------------------------------
1 0 L a r g e s t H o l d i n g s
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
1. Bharat Petroleum Ltd. 5.23% 6. Videsh Sanchar Nigam Ltd. 3.70%
(G.D.R.)
2. Satyam Computer 4.65 7. Pentafour Software & 3.25
Services Exports Ltd. (G.D.R.)
3. Hindustan Petroleum 4.47 8. Mahanagar Telephone 3.19
Corp. Ltd. Nigam Ltd.
4. Larsen & Toubro Ltd. 4.15 9. Ranbaxy Laboratories Ltd. 3.16
(G.D.R.)
5. Tata Infotech Ltd. 3.81 10. Oil & Natural Gas 3.05
Commission Ltd.
</TABLE>
2 Fund holdings will vary for other periods.
<PAGE>
Pioneer India Fund
================================================================================
PERFORMANCE UPDATE 4/30/98 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
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/98 10/31/97
$7.06 $7.14
Distributions per Share Income Short-Term Long-Term
(10/31/97-4/30/98) Dividends Capital Gains Capital Gains
-- -- --
</TABLE>
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, 1998)
<TABLE>
<CAPTION>
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund -11.86% -13.20%
(6/23/94)
1 Year -4.85 -10.29
</TABLE>
* Reflects deduction of the maximum 5.75% sales charge at the beginning of
the period and assumes reinvest- ment of distributions at net asset value.
- ------------------------------- [Mountain Chart] -------------------------------
Growth of $10,000+
<TABLE>
<S> <C> <C>
Pioneer MSCI Emerging
India Markets Asia
Fund* Free Index
6/30/94 9425 10000
9574 10364
10/31/94 9246 11317
7620 9087
4/30/95 7538 9306
7981 10425
10/31/95 6955 9455
6520 9924
4/30/96 8252 11035
6988 9746
10/31/96 5707 9613
5772 10154
4/30/97 6093 9676
6914 9903
10/31/97 5863 6140
4672 4894
4/30/98 5797 5419
</TABLE>
- --------------------------------------------------------------------------------
+ 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 10 Asian emerging
markets; it reflects only those securities available to foreign inves tors.
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 4/30/98 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
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/98 10/31/97
$6.87 $6.96
Distributions per Share Income Short-Term Long-Term
(10/31/97 - 4/30/98) Dividends Capital Gains Capital Gains
-- -- --
</TABLE>
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.The mountain chart on the
right shows the growth of a The mountain chart on the right
Average Annual Total Returns
(As of April 30, 1998)
<TABLE>
<CAPTION>
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund -12.51% -13.20%
(6/23/94)
1 Year -5.24 -9.03
</TABLE>
* 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.
- ------------------------------- [Mountain Chart] -------------------------------
Growth of $10,000+
<TABLE>
<S> <C> <C>
Pioneer MSCI Emerging
India Markets Asia
Fund* Free Index
6/30/94 10000 10000
10157 10364
10/31/94 9783 11317
8048 9087
4/30/95 7944 9306
8396 10425
10/31/95 7309 9455
6839 9924
4/30/96 8614 11035
7283 9746
10/31/96 5925 9613
5995 10154
4/30/97 6308 9676
7152 9903
10/31/97 6056 6140
4820 4894
4/30/98 5798 5419
</TABLE>
- --------------------------------------------------------------------------------
+ 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 trad ing in 10 Asian emerging
markets; it reflects only those securities available to foreign inves tors.
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 4/30/98 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
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/98 10/31/97
$6.84 $6.93
Distributions per Share Income Short-Term Long-Term
(10/31/97 - 4/30/98) Dividends Capital Gains Capital Gains
-- -- --
</TABLE>
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, 1998)
<TABLE>
<CAPTION>
Net Asset Public Offering
Period Value Price*
Life-of-Fund -5.94% -5.94%
(1/31/96)
<S> <C> <C>
1 Year -5.26 -5.26
</TABLE>
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to investments sold within one year of purchase.
- ------------------------------- [Mountain Chart] -------------------------------
Growth of $10,000
<TABLE>
<S> <C> <C>
Pioneer MSCI Emerging
India Markets Asia
Fund* Free Index
1/31/96 10000 10000
12548 11119
7/31/96 10611 9820
8637 9686
1/31/97 8739 10231
9197 9750
7/31/97 10433 9979
8841 6187
1/31/98 7019 4931
4/30/98 8713 5461
</TABLE>
- --------------------------------------------------------------------------------
The Morgan Stanley Capital International (MSCI) Emerging Markets Asia Free Index
is an unmanaged, capitalization-weighted measure of securities trading in 10
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 4/30/98
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
Political change and economic reform within India, as well as the lingering
effects of Asia's recent economic turmoil continued to reshape investment
opportunity for Pioneer India Fund. We moved the Fund into new industries such
as pharmaceuticals and software, and dramatically reduced positions in finance
and hotels. At the same time, we bolstered the presence of industrial sectors
oil, construction, and engineering - we think will benefit from India's renewed
focus on large investments in the infrastructure sector. We believe our years of
experience in India and in researching value-oriented investments helped us to
pick securities selectively and successfully in recent months.
Although Class A Shares posted a total return at net asset value of -1.12% for
the six months through April, that return outperformed the -10.92% average of
the 82 funds in the Lipper Pacific Ex-Japan Funds category. In the same
six-month period, Class B Shares had a total return at net asset value of -1.29%
while Class C Shares returned -1.30%. In the three months through April 30, the
Fund's Class A Shares generated a total return of 24.08% at net asset value
compared to the 7.47% average of the 82 funds in the Lipper Pacific Ex-Japan
Funds category. Class B Shares returned 24.01% and Class C Shares gained 24.14%
for the same period.
We continue to be confident, albeit careful, value-oriented and contrarian
investors in the world's largest democracy. For long-term investors, we believe
India provides great potential.
Economic Reform Moves Forward, Despite Political Change
Parliament's dissolution in December of 1997 continued the unsettled political
climate in India. The ensuing election, the second in two years, gave India its
third coalition government in that same period. At the head of this new
coalition is the Bharatiya Janta Party (BJP).
Within the BJP two distinct factions seem to mirror the problems and promise of
greater India. One wing of the party, comprised of Hindu-nationalists, has
focused on India's place in the world power structure. (They made themselves
known to the international community with the
6
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
testing of nuclear devices just after this reporting period.) A second wing of
the party is made up of center-leaning professionals and business people. Their
interests have focused on the continued dismantling of India's socialist
economic structure and the push forward with policies to further India's
economic potential. How the two groups work together to lead the current Indian
government will bear watching over the coming months.
India came out of the recent Asian economic crisis relatively unscathed, thanks
in part to its tight-fisted monetary policy. The Reserve Bank of India (RBI)
took concerted measures to protect the rupee, stabilizing it while many other
Asian currencies collapsed. And finally, despite the recent change in
governments, the much awaited deregulation of the Indian oil sector not only
moved ahead as planned but was actually accelerated by the new party in power.
We believe India's commitment to economic reform will eventually lead to
economic prosperity.
Despite political upheavals, India's changing government was relatively
consistent in its efforts to deregulate the economy and push through economic
reforms. On the day before the government turned over in December, the cabinet,
in the midst of political chaos, approved one of the largest issues of global
depositary receipts ever from India. Mahanagar Telephone Nigam Ltd. raised $358
million as this massive deal was able to move forward successfully despite the
politics swirling around it.
Selectivity and Value-Oriented Investing
During this period of change, carefully selecting investments was essential.
Research, experience and knowledge of the macro political and economic factors
in India were more important than ever.
One success story was your Fund's participation in the giant Mahanagar Telephone
Nigam GDR issue. We sold half of the Fund's direct shares and replaced them with
GDRs. Despite ongoing political uncertainty, we anticipated that these issues
would soon trade at a premium and, by period end, they were.
As mentioned, we also shifted the portfolio in the past six months. Politics
and further economic reform revealed new investment opportunities
7
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/98 (continued)
- --------------------------------------------------------------------------------
and we moved to take advantage of them. The accelerated deregulation of the oil
industry led us to significantly increase our holdings in Bharat Petroleum,
pushing it to the top of the Fund's list of 10 largest investments. With
Hindustan Petroleum and Oil & Natural Gas Commission, there are now three
representatives from the oil and gas sector among the Fund's 10 largest
investments.
We added pharmaceutical stocks, with the belief that these companies should be
able to advance regardless of the region's economic condition. We doubled our
investment in Ranbaxy Laboratories, which makes generic drugs and is expanding
globally. The Indian government's focus on infrastructure (such as bridges and
roadways) kept Larsen and Toubro, whose major operations are engineering,
construction and cement, in our list of 10 largest holdings.
In our strongest move of the period, we significantly increased investments in
the Indian software and computer industry. Satyam Computer Services and
Pentafour Software & Exports are both new to the Fund and reside in the Fund's
list of 10 largest holdings with another technology company, Tata Infotech.
On the other side of the coin, we reduced positions in the hotel industry and
finance sector. We anticipate that both leisure and business travel in India
will slow. The devalued currencies of surrounding Asian countries make India a
more expensive destination and business travel will also face a slowdown given
the national elections. In the sector we reduced our position in Indian Hotels
and East India Hotels. In the finance sector, we expect economic conditions to
negatively affect loan portfolios and have reduced our weighing in this sector.
This included reducing our position in Industrial Credit and Investment
Corporation of India.
India's Foundation for the Future
Although any investment concentrated in one country presents risks - including
currency fluctuations, different accounting standards and illiquidity - we
believe Pioneer India Fund offers great potential for the long-term investor.
India, to this point, has maintained the momentum of its eco-
8
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
nomic reform despite political change and we believe it is laying the foundation
for a prosperous and dynamic economy.
With careful and informed optimism, we will continue to position your Fund for
the greatest investment potential in this exciting region of the world. Thank
you for investing in Pioneer India Fund.
Respectfully,
/s/ Mark H. Madden
Mark H. Madden,
Portfolio Manager
9
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/98
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
CORPORATE BONDS - 0.1%
$ 28,000 Gujarat Optical, 14.0%, 12/31/99 (Convertible) $ 0
5,000 Vindhya Telelinks, Part B, 16.0%, 3/31/02 6,295
----------
Total Corporate Bonds
(Cost $49,092) $ 6,295
----------
Shares
COMMON STOCKS - 99.8%
Basic Materials - 9.7%
Aluminum - 3.5%
6,050 Hindalco Industries Ltd. $ 115,013
7,000 Hindalco Industries Ltd. (G.D.R.) 134,750
308,600 National Aluminum Co. Ltd. 271,574
----------
$ 521,337
----------
Agricultural Products - 1.3%
168,400 Indo Gulf Fertilizers and Chemicals Corp., Ltd. (G.D.R.) $ 193,660
----------
Chemicals - 3.6%
10,150 Ciba Specialty Chemicals Ltd.* $ 24,203
1,000,000 Kothari Petrochem Ltd.* 55,395
40,050 Reliance Industries Ltd. 190,493
29,700 Reliance Industries Ltd. (G.D.R.)* 271,013
----------
$ 541,104
----------
Iron & Steel - 1.3%
52,100 Tata Iron & Steel Co. Ltd. $ 198,089
----------
Total Basic Materials $1,454,190
----------
Capital Goods - 11.6%
Construction (Cement & Aggregates) - 2.2%
4 Associated Cement Companies Ltd. $ 157
218 Gujarat Ambuja Cements Ltd. 1,672
24,000 Gujarat Ambuja Cements Ltd. (G.D.R.) 179,400
100,000 India Cements Ltd. (G.D.R.) 143,750
1,550 Raasi Cement Ltd. 9,601
----------
$ 334,580
----------
Engineering & Construction - 5.2%
214,000 Alsa Construction & Housing Ltd.* $ 13,201
51,850 Carborandum Universal Ltd. 120,111
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Engineering & Construction - (continued)
3,970 Larsen & Toubro Ltd. $ 25,255
48,000 Larsen & Toubro Ltd. (G.D.R.) 622,800
----------
$ 781,367
----------
Electrical Equipment - 4.2%
21,450 Asea Brown Boveri Ltd. $ 323,384
17,000 Bharat Heavy Electricals Ltd. 168,224
18,700 Siemens India Ltd.* 132,922
----------
$ 624,530
----------
Total Capital Goods $1,740,477
----------
Communication Services - 9.1%
Telephone - 9.1%
75,500 Mahanagar Telephone Nigam Ltd. $ 479,063
14,000 Mahanagar Telephone Nigam Ltd. (G.D.R.)* 225,750
6,000 Videsh Sanchar Nigam Ltd. 117,084
45,300 Videsh Sanchar Nigam Ltd. (G.D.R.) 554,925
----------
Total Communication Services $1,376,822
----------
Consumer Cyclicals - 8.5%
Automobiles - 5.4%
29,550 Bajaj Auto Ltd. $ 443,269
25,650 TVS Suzuki Ltd. 362,646
----------
$ 805,915
----------
Auto Parts & Equipment - 0.7%
3,525 SKF Bearings India Ltd. $ 106,509
----------
Household Furniture & Appliances - 0.0%
2,206 Videocon International Ltd. $ 5,066
----------
Lodging/Hotels - 2.4%
269 East India Hotels Ltd. $ 2,526
104,600 East India Hotels Associated Ltd. 127,079
17,100 Indian Hotels Co. Ltd. 228,093
----------
$ 357,698
----------
Total Consumer Cyclicals ` $1,275,188
----------
Energy - 17.1%
Oil & Gas (Refining & Marketing) - 14.1%
78,000 Bharat Petroleum Ltd. $ 785,597
38,000 Cochin Refineries Ltd.* 234,133
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/98 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Oil & Gas (Refining & Marketing) - (continued)
66,000 Hindustan Petroleum Corp. Ltd. $ 670,968
20,000 Hindustan Petroleum Corp. Ltd. (New E Shares)* 203,324
131,600 Madras Refineries Ltd. 217,373
----------
$2,111,395
----------
Oil & Gas (Production/Exploration) - 3.0%
67,008 Oil & Natural Gas Commission Ltd. $ 457,743
----------
Total Energy $2,569,138
----------
Financial - 12.3%
Banks (Major Regional) - 5.9%
1,100 Bank of Baroda (E Shares)* $ 3,229
200,000 Bank of India 245,499
25,300 Federal Bank Ltd. 60,009
3,600 Oriental Bank of Commerce 5,738
46,550 State Bank of India 337,565
12,000 State Bank of India (G.D.R.) 228,000
----------
$ 880,040
----------
Financial (Diversified) - 6.4%
4,000 Housing Development Finance Corp. Ltd. $ 325,016
160,690 Industrial Credit & Investment Corp. of India Ltd. 426,052
50,000 Pakistan Investment Fund Inc. 218,750
----------
$ 969,818
----------
Total Financial $1,849,858
----------
Healthcare - 10.2%
Healthcare (Diversified) - 1.7%
26,900 Novartis India Ltd. $ 254,336
----------
Healthcare (Drugs/Major Pharmaceuticals) - 8.5%
9,600 Cipla Ltd. $ 180,929
22,600 E. Merck Ltd. 164,514
18,050 Glaxo India Ltd. 174,069
2,500 Hoechst Marion Roussel Ltd. 30,577
15,500 Pfizer Ltd. 249,097
28,400 Ranbaxy Laboratories Ltd. 474,466
----------
$1,273,652
----------
Total Healthcare $1,527,988
----------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Technology - 20.3%
Computers (Software & Services) - 20.3%
8,000 Infosys Technologies Ltd. $ 433,992
12,500 NIIT Ltd. 443,000
20,000 Pentafour Software & Exports Ltd. 409,291
25,000 Pentafour Software & Exports Ltd. (G.D.R.) 487,500
60,000 Satyam Computer Services 698,351
18,000 Tata Infotech Ltd. 571,975
-----------
Total Technology $ 3,044,109
-----------
Utilities - 1.0%
Electric Companies - 1.0%
550 BSES Ltd. $ 2,536
141,900 CESC Ltd. (G.D.R.) 152,543
-----------
Total Utilities $ 155,079
-----------
Total Common Stocks
(Cost $16,212,464) $14,992,849
-----------
WARRANTS - 0.1%
70,000 CESC Ltd. (Class B)* $ 0
48,000 Hotel Leelaventure Ltd.* 18,794
-----------
Total Warrants $ 18,794
-----------
(Cost $200,956)
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $16,462,512) (a) (b) $15,017,938
-----------
* Non-income producing security.
(a) At April 30, 1998, the net unrealized loss on investments based on cost
for federal income tax purposes of $16,476,533 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 1,777,357
Aggregrate gross unrealized loss for all investments in which there
is an excess of tax cost over value (3,235,952)
-----------
Net unrealized loss $(1,458,595)
===========
(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.
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 1998 aggregated $4,912,203 and $9,118,430,
respectively.
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 4/30/98
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $16,462,512) $15,017,938
Cash 89,272
Foreign currencies, at value 1,496,218
Receivables -
Investment securities sold 502,199
Fund shares sold 63,170
Dividends, interest and foreign taxes withheld 31,426
Due from Pioneering Management Corporation 54,308
Other 1,015
-----------
Total assets $17,255,546
-----------
LIABILITIES:
Payables -
Investment securities purchased $ 671,818
Fund shares repurchased 503,720
Due to affiliates 22,697
Accrued expenses 61,054
-----------
Total liabilities $ 1,259,289
-----------
NET ASSETS:
Paid-in capital $28,155,459
Accumulated net investment loss (116,860)
Accumulated net realized loss on investments
and foreign currency transactions (10,595,733)
Net unrealized loss on investments (1,444,574)
Net unrealized loss on other assets and liabilities denominated in
foreign currencies (2,035)
-----------
Total net assets $15,996,257
===========
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $7,454,649/1,056,211 shares) $ 7.06
===========
Class B (based on $7,911,886/1,152,472 shares) $ 6.87
===========
Class C (based on $629,722/92,111 shares) $ 6.84
===========
MAXIMUM OFFERING PRICE:
Class A $ 7.49
===========
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/98
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $2,919) $ 74,528
Interest 6,743
-----------
Total investment income $ 81,271
-----------
EXPENSES:
Management fees $ 97,737
Transfer agent fees
Class A 28,941
Class B 19,994
Class C 1,623
Distribution fees
Class A 5,221
Class B 37,725
Class C 3,348
Accounting 67,745
Custodian fees 92,874
Registration fees 18,621
Professional fees 45,488
Printing 6,416
Fees and expenses of nonaffiliated trustees 8,884
Miscellaneous 17,895
-----------
Total expenses $ 452,512
Less management fees waived and expenses
reimbursed by Pioneering Management Corporation (250,039)
Less fees paid indirectly (4,342)
-----------
Net expenses $ 198,131
-----------
Net investment loss $ (116,860)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Investments $(3,039,751)
Other assets and liabilities denominated in foreign
currencies (79,815) $(3,119,566)
----------- -----------
Change in net unrealized loss from:
Investments $ 2,561,624
Other assets and liabilities denominated in foreign
currencies 2,659 $ 2,564,283
----------- -----------
Net loss on investments and foreign currency transactions $ (555,283)
-----------
Net decrease in net assets resulting from operations $ (672,143)
===========
</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 Six Months Ended 4/30/98 and the Year Ended 10/31/97
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
FROM OPERATIONS: 4/30/98 10/31/97
<S> <C> <C>
Net investment loss $ (116,860) $ (67,235)
Net realized loss on investments and foreign currency
transactions (3,119,566) (4,655,748)
Change in net unrealized loss on investments and foreign
currency transactions 2,564,283 5,135,041
----------- -----------
Net increase (decrease) in net assets resulting from
operations $ (672,143) $ 412,058
----------- -----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 2,649,747 $14,323,444
Cost of shares repurchased (6,022,441) (15,914,676)
----------- -----------
Net decrease in net assets resulting from
fund share transactions $(3,372,694) $(1,591,232)
----------- -----------
Net decrease in net assets $(4,044,837) $(1,179,174)
NET ASSETS:
Beginning of period 20,041,094 21,220,268
----------- -----------
End of period (including accumulated net investment
loss of $116,860 and $0, respectively) $15,996,257 $20,041,094
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CLASS A '98 Shares '98 Amount '97 Shares '97 Amount
Shares sold 244,721 $ 1,642,353 1,176,102 $ 8,627,795
Less shares repurchased (568,440) (3,620,721) (1,582,733) (11,400,215)
-------- ----------- ---------- -----------
Net decrease (323,719) $(1,978,368) (406,631) $(2,772,420)
======== =========== ========== ===========
CLASS B
Shares sold 143,845 $ 869,147 626,809 $ 4,498,286
Less shares repurchased (341,431) (2,095,949) (493,129) (3,529,881)
-------- ----------- ---------- -----------
Net increase (decrease) (197,586) $(1,226,802) 133,680 $ 968,405
======== =========== ========== ===========
CLASS C
Shares sold 23,627 $ 138,247 170,338 $ 1,197,363
Less shares repurchased (47,299) (305,771) (136,733) (984,580)
-------- ----------- ---------- -----------
Net increase (decrease) (23,672) $ (167,524) 33,605 $ 212,783
======== =========== ========== ===========
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/98
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
4/30/98 10/31/97
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 7.14 $ 6.93
------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.04) $ (0.01)
Net realized and unrealized gain (loss) on investments and foreign currency
transactions (0.04) 0.22
------- -------
Net increase (decrease) from investment operations $ (0.08) $ 0.21
Distributions to shareholders:
Net investment income - -
------- -------
Net increase (decrease) in net asset value $ (0.08) $ 0.21
------- -------
Net asset value, end of period $ 7.06 $ 7.14
======= =======
Total return* (1.12)% 3.03%
Ratio of net expenses to average net assets 2.31%**+ 2.29%+
Ratio of net investment income (loss) to average net assets (1.27)%**+ (0.09)%+
Portfolio turnover rate 65%** 71%
Average brokerage commission per share $0.0260 $0.0288
Net assets, end of period (in thousands) $ 7,455 $ 9,846
Ratios assuming no waiver of management fees and assumption of expenses by PMC
and no reduction for fees paid indirectly:
Net expenses 5.47%** 4.39%
Net investment loss (4.43)%** (2.19)%
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) (1.21)%** (0.05)%
<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:
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 brokerage commission per share $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.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
FINANCIAL HIGHLIGHTS 4/30/98
- --------------------------------------------------------------------------------
Pioneer India Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
4/30/98 10/31/97
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 6.96 $ 6.80
------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.06) $ (0.04)
Net realized and unrealized gain (loss) on investments and foreign currency
transactions (0.03) 0.20
------- -------
Net increase (decrease) from investment operations $ (0.09) $ 0.16
Distributions to shareholders:
Net investment income - -
------- -------
Net increase (decrease) in net asset value $ (0.09) $ 0.16
------- -------
Net asset value, end of period $ 6.87 $ 6.96
======= =======
Total return* (1.29)% 2.35%
Ratio of net expenses to average net assets 2.85%**+ 2.90%+
Ratio of net investment loss to average net assets (1.82)%**+ (0.62)%+
Portfolio turnover rate 65%** 71%
Average brokerage commission per share $0.0260 $0.0288
Net assets, end of period (in thousands) $ 7,912 $ 9,392
Ratios assuming no waiver of management fees and assumption of expenses by PMC
and no reduction for fees paid indirectly:
Net expenses 6.09%** 4.99%
Net investment loss (5.06)%** (2.71)%
Ratios assuming waiver of management fees and assumption of expenses by PMC and
reduction for fees paid indirectly:
Net expenses 2.79% ** 2.86%
Net investment loss (1.76)%** (0.58)%
<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:
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 brokerage commission per share $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.
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/98
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
4/30/98
<S> <C>
CLASS C
Net asset value, beginning of period $ 6.93
-------
Increase (decrease) from investment operations:
Net investment loss $ (0.07)
Net realized and unrealized gain (loss) on investments and foreign currency transactions (0.02)
-------
Net increase (decrease) in net asset value $ (0.09)
-------
Net asset value, end of period $ 6.84
-------
Total return* (1.30)%
Ratio of net expenses to average net assets 2.81%**+
Ratio of net investment loss to average net assets (1.76)%**+
Portfolio turnover rate 65%**
Average brokerage commission per share $0.0260
Net assets, end of period (in thousands) $ 630
Ratios assuming no waiver of management fees and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 6.05%**
Net investment loss (5.00)%**
Ratios assuming waiver of management fees and assumption of expenses by PMC and reduction
for fees paid indirectly:
Net expenses 2.70%**
Net investment loss (1.65)%**
<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 brokerage commission per share $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.
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/98
- --------------------------------------------------------------------------------
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
20
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
applicable country rates. Temporary cash investments are valued at amortized
cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities that have
the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
The Fund's investments in countries with limited or developing markets, such
as India, may subject the Fund to 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 April 30, 1998, the value of the Fund's
investments undergoing the registration process amounted to $3,134,668 or
19.6% 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 may enter 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
21
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/98 (continued)
- --------------------------------------------------------------------------------
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 closing transaction
or extinguished by delivery of the currency. Risks may arise upon entering
into these contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the value of
foreign currencies relative to the U.S. dollar. As of April 30, 1998, the
Fund had no outstanding portfolio or settlement hedges.
D. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
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, 1998, 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
22
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
$2,487 in underwriting commissions on the sale of fund shares during the six
months ended April 30, 1998.
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
23
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/98 (continued)
- --------------------------------------------------------------------------------
expenses are reduced for Class A shares. PMC's agreement is voluntary and
temporary and may be revised or terminated at any time.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund.
PMC has appointed Khothari 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 $14,133 in transfer agent fees payable to PSC at April 30, 1998.
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 $8,564 in distribution fees payable to
PFD at April 30, 1998.
24
<PAGE>
Pioneer India Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 CDSCs are paid to
PFD. For the six months ended April 30, 1998, CDSCs in the amount of $38,081
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, 1998,
the Fund's expenses were reduced by $4,342 under such arrangements.
6. Line of Credit Facility
The Fund, along with certain others in the Pioneer Family of Funds (the
"Funds"), collectively participate in a $50 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $50 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
of up to $25 million is payable at the Federal Funds Rate plus 3/8% on an
annualized basis, or at the Federal Funds Rate plus 1/2% if the borrowing
exceeds $25 million at any one time. The Funds pay an annual commitment fee for
this facility. The commitment fee is allocated among such Funds based on their
respective borrowing limits. For the six months ended April 30, 1998, there were
no borrowings under this agreement.
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 April 30, 1998, 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, 1998 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, 1998, 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 5, 1998
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 H. 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
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RETIREMENT PLANS FROM PIONEER
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Pioneer has a long history of helping people work toward their retirement goals,
offering plans suited to the individual investor and businesses of all sizes.
For more information on Pioneer retirement plans, contact your investment
professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 70 with earned
income to contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
The Roth IRA came about as part of the Taxpayer Relief Act of 1997 and is
available to investors in 1998. Contributions, up to $2,000 a year, are not
tax-deductible, but earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $9,500 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match Plan for Employees)
401(k) or IRA Plan
Businesses with 100 or fewer eligible employees can establish either plan; both
resemble the traditional 401(k), but with less testing and lower administration
costs. Employees can make pre-tax contributions of up to $6,000 per year, and an
employer contribution is required.
403(b) Plan
Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is available only to
employees of public schools, not-for-profit hospitals and other tax-exempt
organizations. A 403(b) plan lets employees set aside a portion of their salary,
before taxes, through payroll deduction.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
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Simplified Employee Pension Plan (SEP)
SEPs let self-employed people and small-business owners make tax-deductible
contributions of up to 15% of their income. Generally, employers must contribute
the same percentage of pay for themselves and any eligible employees;
contributions are made directly to employees' IRAs. SEPs are easy to administer
and can be an especially good choice for firms with few or no employees.
Profit Sharing Plan
Profit sharing plans offer companies considerable flexibility, allowing them to
decide each year whether a contribution will be made and how much, up to 15% of
each participant's pay. These plans can include provisions for loans and vesting
schedules.
Age-Weighted Profit Sharing Plan
Like traditional profit sharing plans, employer contributions are flexible, but
age-weighted plans allocate contributions based on both age and salary. Age-
weighted plans are designed for employers who want to maximize their own
contributions while keeping contributions to employees affordable.
Money Purchase Pension Plan (MPP)
Money purchase plans are similar to profit sharing plans, but allow for higher
annual contributions - up to 25% of pay. MPPs aren't as flexible as profit
sharing plans; a fixed percentage of pay must be contributed each year,
determined when the plan is established. Businesses often set up both MPPs and
profit sharing plans.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
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HOW TO CONTACT PIONEER
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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
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
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.
[Pioneer logo]
Pioneer Funds Distributor, Inc.
60 State Street 0698 - 5290
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [Recycle symbol] Printed on Recycled Paper
