-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AF5WTo0l2ROw/fWUGLPVfm2yCMyozrS3B/m/fggGRhWNcU0ZQpPVTkkLhVcxtQKk T63atm4u6Rzosc/2igjJkw== 0001122967-04-000006.txt : 20040414 0001122967-04-000006.hdr.sgml : 20040414 20040414141902 ACCESSION NUMBER: 0001122967-04-000006 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031231 FILED AS OF DATE: 20040414 EFFECTIVENESS DATE: 20040414 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PIONEER EUROPE SELECT FUND CENTRAL INDEX KEY: 0001122967 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-10111 FILM NUMBER: 04732579 BUSINESS ADDRESS: STREET 1: 60 STATE ST STREET 2: 19TH FL CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174224960 MAIL ADDRESS: STREET 1: 60 STATE ST STREET 2: 19TH FL CITY: BOSTON STATE: MA ZIP: 02109 N-CSR 1 ncsr.txt OMB APPROVAL OMB Number: 3235-0570 Expires: November 30, 2005 Estimated average burden hours per response..... 5.0 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-10111 Pioneer Europe Select Fund (Exact name of registrant as specified in charter) 60 State Street, Boston, MA 02109 (Address of principal executive offices) (ZIP code) Dorothy E. Bourassa, Pioneer Investment Management, Inc., 60 State Street, Boston, MA 02109 (Name and address of agent for service) Registrant's telephone number, including area code: (617) 742-7825 Date of fiscal year end: August 31 Date of reporting period: September 1, 2003 through February 29, 2004 Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO SHAREOWNERS. PIONEER --------- EUROPE SELECT FUND Semiannual Report 2/29/04 [PIONEER Investments LOGO] Table of Contents - -------------------------------------------------------------------------------- Letter from the President 1 Portfolio Summary 2 Performance Update 3 Portfolio Management Discussion 6 Schedule of Investments 10 Financial Statements 14 Notes to Financial Statements 21 Trustees, Officers and Service Providers 28 The Pioneer Family of Mutual Funds 29
Pioneer Europe Select Fund - -------------------------------------------------------------------------------- LETTER FROM THE PRESIDENT 2/29/04 - -------------------------------------------------------------------------------- Dear Shareowner, - -------------------------------------------------------------------------------- Stock markets throughout the world snapped back dramatically during the 12 months ended February 29, 2004, following a prolonged period of weakness. After the first major combat operations in Iraq in March 2003, investors grew hopeful that the war would not pose a long-term economic burden on the United States. In the face of increasing evidence that the U.S. economy was expanding, investors left safer havens like Treasury securities to seek better returns elsewhere. The result has been a powerful uptrend in equity markets that continued through 2003 and the first two months of 2004. In the United States, stocks of all sizes across a range of industries shared in the broad-based rally that saw major market indices rise dramatically after three years of negative returns. Smaller-capitalization stocks and technology issues were the biggest beneficiaries. Corporate bonds also recorded strong returns, with the sharpest gains coming in lower quality bonds whose issuers rely on economic growth to expand earnings. Strong economic stimulants, including lower taxes and historically low interest rates, had the desired effect, with domestic GDP growth coming in at an annualized rate of 4.1% for the fourth quarter of 2003. A striking increase in productivity provided a boost to corporate profits, and manufacturing activity rose broadly. But the failure of the economy to consistently create jobs remained a troublesome concern early in 2004. Overseas, stock prices also climbed based on the encouraging data from the United States, and the expectation that world economic growth would accelerate during 2004. While equities in major industrialized nations produced healthy returns, the most impressive performance came in the emerging markets, where both equities and fixed income assets appreciated sharply. The sagging U.S. dollar gave further impetus to the rising values of most investments denominated in foreign currencies. Markets may segment Last year's across-the-board strength is unusual and unlikely to continue for long. Eventually, the markets should revert to historic form, favoring some sectors and shunning others, depending on the prospects for each industry or investment type. Under those more typical conditions, deciding which investments to own more of, or where to cut exposure, can be challenging. Fortunately, it's also an area in which the guidance of an experienced investment professional can be most valuable. A few words on fund industry developments You may have seen media reports alleging failure by some mutual fund companies to comply with industry rules or internal policies relating to excessive trading and late trading of mutual fund shares. We share with the investing public the concerns raised by these alleged abuses. The prospectuses for the Pioneer Funds describe the funds' policies regarding excessive trading and the time by which orders for fund shares must be placed to receive that day's price. Pioneer's internal procedures seek to detect activities that are inconsistent with these policies. Respectfully, /s/ Osbert M. Hood - ------------------ Osbert M. Hood President Pioneer Investment Management, Inc. Any information in this shareholder report regarding market or economic trends or the factors influencing the Fund's historical or future performance are statements of the opinion of Fund management as of the date of this report. These statements should not be relied upon for any other purposes. Past performance is no guarantee of future results, and there is no guarantee that market forecasts discussed will be realized. 1 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- PORTFOLIO SUMMARY 2/29/04 - -------------------------------------------------------------------------------- Sector Distribution - -------------------------------------------------------------------------------- (As a percentage of equity holdings) [PIE CHART REPRESENTATION] Information Technology 3.0% Telecommunication Services 5.4% Health Care 9.2% Consumer Discretionary 9.8% Consumer Staples 10.6% Energy 11.4% Industrials 12.8% Materials 13.9% Financials 23.9%
Geographical Distribution - -------------------------------------------------------------------------------- (As a percentage of equity holdings) [BAR CHART REPRESENTATION] Sweden 2.2% Spain 2.8% Denmark 3.0% Italy 3.5% Ireland 6.7% Netherlands 7.0% Switzerland 7.3% Germany 16.7% France 20.4% United Kingdom 30.4%
10 Largest Holdings - -------------------------------------------------------------------------------- (As a percentage of equity holdings)* 1. Vodafone Group Plc 5.36% 2. BP Amoco Plc 5.18 3. BNP Paribas SA 4.67 4. GlaxoSmithKline Plc 4.67 5. Nestle SA (Registered Shares) 4.65 6. Elsevier NV 3.80 7. Porsche AG 3.72 8. Societe Generale 3.71 9. Barclays Plc 3.62 10. Schneider Electric SA 3.59
*This list excludes money market and derivative investments. Fund holdings will vary for other periods. 2 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- PERFORMANCE UPDATE 2/29/04 CLASS A SHARES - -------------------------------------------------------------------------------- Share Prices and Distributions - --------------------------------------------------------------------------------
Net Asset Value per Share 2/29/04 8/31/03 $10.89 $8.68 Net Distributions per Share Investment Short-Term Long-Term (9/1/03 - 2/29/04) Income Capital Gains Capital Gains $0.1018 $ - $ -
Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the change in value of a $10,000 investment made in Pioneer Europe Select Fund at public offering price, compared to that of the Morgan Stanley Capital International (MSCI) Europe Index. Average Annual Total Returns (As of February 29, 2004)
Net Asset Public Offering Period Value Price* Life-of-Class (12/29/00) 3.45% 1.53% 1-Year 53.81% 44.89%
All returns reflect reinvestment of distributions at net asset value. * Reflects deduction of the maximum 5.75% sales charge at the beginning of the period. [REPRESENTATION OF CLASS A MOUNTAIN CHART]
Pioneer Europe MSCI Select Fund* Europe Index 12/31/00 9425 10000 8/31/01 7681 8084 8/31/02 7546 6789 8/31/03 8281 7375 2/29/04 10491 9432
+ MSCI Europe Index is a capitalization-weighted index of the 15 European country indexes included in the MSCI EAFE (Europe, Australasia, Far East) Index. These countries are: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. 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 principal value fluctuate, and your shares, when redeemed, may be worth more or less than their original cost. The performance table and graph do not reflect the deduction of taxes that a shareowner would pay on Fund distributions or redemption of Fund shares. 3 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- PERFORMANCE UPDATE 2/29/04 CLASS B SHARES - -------------------------------------------------------------------------------- Share Prices and Distributions - --------------------------------------------------------------------------------
Net Asset Value per Share 2/29/04 8/31/03 $10.79 $8.62
Net Distributions per Share Investment Short-Term Long-Term (9/1/03 - 2/29/04) Income Capital Gains Capital Gains $0.0502 $ - $ -
Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the change in value of a $10,000 investment made in Pioneer Europe Select Fund, compared to that of the Morgan Stanley Capital International (MSCI) Europe Index. Average Annual Total Returns (As of February 29, 2004)
If If Period Held Redeemed* Life-of-Class (12/29/00) 2.59% 1.69% 1-Year 52.07% 48.07%
All returns reflect reinvestment of distributions. * Reflects deduction of the maximum applicable contingent deferred sales charge (CDSC) at the end of the period. The maximum CDSC of 4% declines to zero over six years. [REPRESENTATION OF CLASS B MOUNTAIN CHART]
Pioneer Europe MSCI Select Fund* Europe Index 12/31/00 10000 10000 8/31/01 8130 8084 8/31/02 7940 6789 8/31/03 8620 7375 2/29/04 10543 9432
+ MSCI Europe Index is a capitalization-weighted index of the 15 European country indexes included in the MSCI EAFE (Europe, Australasia, Far East) Index. These countries are: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. 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 principal values fluctuate, and your shares, when redeemed, may be worth more or less than their original cost. The performance table and graph do not reflect the deduction of taxes that a shareowner would pay on Fund distributions or redemption of Fund shares. 4 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- PERFORMANCE UPDATE 2/29/04 CLASS C SHARES - -------------------------------------------------------------------------------- Share Prices and Distributions - --------------------------------------------------------------------------------
Net Asset Value per Share 2/29/04 8/31/03 $10.85 $8.69
Net Distributions per Share Investment Short-Term Long-Term (9/1/03 - 2/29/04) Income Capital Gains Capital Gains $0.1072 $ - $ -
Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the change in value of a $10,000 investment made in Pioneer Europe Select Fund at public offering price, compared to that of the Morgan Stanley Capital International (MSCI) Europe Index. Average Annual Total Returns (As of February 29, 2004)
If If Period Held Redeemed* Life-of-Class (12/29/00) 2.95% 2.95% 1-Year 52.69% 52.69%
All returns reflect reinvestment of distributions * The performance of Class C shares does not reflect the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a 1% sales charge, your returns would be lower than those shown above. [REPRESENTATION OF CLASS B MOUNTAIN CHART]
Pioneer Europe MSCI Select Fund* Europe Index 12/31/00 10000 10000 8/31/01 8140 8084 8/31/02 7960 6789 8/31/03 8690 7375 2/29/04 10963 9432
+ MSCI Europe Index is a capitalization-weighted index of the 15 European country indexes included in the MSCI EAFE (Europe, Australasia, Far East) Index. These countries are: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. 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 principal value fluctuate, and your shares, when redeemed, may be worth more or less than their original cost. The performance table and graph do not reflect the deduction of taxes that a shareowner would pay on Fund distributions or redemption of Fund shares. 5 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- PORTFOLIO MANAGEMENT DISCUSSION 2/29/04 - -------------------------------------------------------------------------------- Buoyed by rising expectations of an economic recovery in 2004, equities rose steadily on European stock markets during the six months ended February 29, 2004. American investors in European stocks also benefited from the rising value of the euro and other local currencies against the U.S. dollar during the period. In the following interview, Andrew Arbuthnott discusses the events and factors that affected your Fund's performance during the six months. Mr. Arbuthnott is a member of the team at Pioneer Investment Management in Dublin, Ireland that is responsible for the Fund's day-to-day management. Q: How did the Fund perform during the six months that ended February 29, 2004? A: The Fund performed well, consistent with the European market. Pioneer Europe Select Fund's Class A shares had a total return of 26.70% at net asset value, while Class B and Class C shares had returns of 25.79% and 26.16%, respectively. During the same six-month period, the MSCI Europe Index returned 27.89%. Q: What was the investment environment like during the six-month period? A: European equities turned in excellent performance, with about half the gains realized by U.S. investors coming from currency changes. During the six months, the euro gained 14% in value against the U.S. dollar, giving added support to the rising prices of stocks on local exchanges. Although economic growth on the Continent remained sluggish, leading economic indicators suggested that the economy finally would begin to recover during 2004. In anticipation of an economic improvement, stock prices moved higher, with stocks in the technology hardware, health care equipment and services, media and telecommunications services sectors tending to post the greatest gains. Lagging the benchmarks were automotive stocks, hurt by the declining value of the U.S. dollar. Companies in the energy, pharmaceutical and household products industries also underperformed market benchmarks. As in the United States, expectations of increased merger-and-acquisitions activity influenced the stock prices of companies 6 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- involved in proposed deals or rumored to be involved. The proposal by French pharmaceutical company Sanofi-Synthelabo to acquire Aventis, another French drug company and a Fund holding, resulted in sharp gains in the Aventis share price and added to Fund returns. Negatively affecting the European markets were several corporate scandals and controversies. The most publicized controversy was over the disclosure of major problems in the financial statements of Parmalat, a leading Italian dairy products company. Royal Dutch Shell also created news when it acknowledged in January that it had overstated its oil reserves by about 20%. In addition, Adecco, a Swiss employment services company with operations in the United States, ran into problems over its financial records. The Fund did not own any shares in Parmalat or Adecco and quickly sold its position in Royal Dutch Shell after questions arose about its reserves. We used the proceeds to acquire stock in British Petroleum in the same industry. Q: What were some of the investments that helped performance? A: Stock selection was the most significant influence on Fund performance. We manage Pioneer Europe Select as a concentrated portfolio of about 30 stocks, all of which we select based on their fundamentals. We focus on industry weightings, primarily as a check to make sure we are not exposed to too much risk from any one sector. The investment in Aventis was a major contributor, as it rose 58% in U.S. dollar terms during the period, primarily on news of the acquisition proposal. We outperformed in the food retailing area because of our investment in Tesco, the leading supermarket chain in the United Kingdom, which gained 41% during the period. British American Tobacco appreciated 51% during the six months. It began the period as an undervalued stock that benefited from news that it was entering into a proposal with R.J. Reynolds to merge their U.S. tobacco businesses. Dixons, a British electronics equipment retailer, rose 36% after we invested in December 2003. Wolseley, a U.K.-based distributor of heating and plumbing supplies, was another strong contributor, gaining 35%. In telecommunications services, we had particularly strong performance from two investments: Portugal Telecom, which gained 56%, and Vodafone, which rose 37%. 7 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- PORTFOLIO MANAGEMENT DISCUSSION 2/29/04 (continued) - -------------------------------------------------------------------------------- Long-term holding Anglo-Irish Bank gained 75% during the period, while Porsche, the German manufacturer of high-performance cars, resisted the slump of automakers' stocks and rose 38%. Fresnius Medical Care, a German health care services company that operates dialysis centers throughout the world, gained 32% during the period. Q: What areas proved disappointing? A: We underweighted technology hardware, which detracted from performance. Our focus on well managed companies with strong balance sheets also provided relative underperformance, as the markets provided greater rewards to more leveraged, speculative investments. We sold Nokia during the period, but the stock continued to rise after our sale. In many instances, we had investments that posted healthy gains but nevertheless underperformed benchmarks. In the basic materials industry (which generated a return of 23.15%), for example, BASF, a German chemical company, rose by 15%, while CRH, an Irish building materials company, appreciated by 12%. It was a similar story with British-based publisher Reed Elsevier, which was up 24%, as well as with TPG, a diversified transportation and logistics company based in the Netherlands, which gained 17% in U.S. dollars. However, the gains were less than the average gains in the sector. Other positive performers that nevertheless underperformed the benchmark included BMW, which rose 8%, Nestle, which gained 21%, and Deutsche Bourse, the operator of the German stock market, which appreciated by 19%. Q: How did you manage the portfolio during the period? A: We kept to our long-term discipline and maintained a focused portfolio, holding stocks of not more than 30 different companies. We take a fundamental approach in managing the portfolio, investing in companies with strong balance sheets, healthy cash flows, good growth potential and attractive valuations. We are willing to invest in companies of varying size, from small-cap to larger firms. We do not make decisions based on short-term expectations. Rather, we look for companies with good underlying earnings potential over the medium term. 8 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- During the six-month period, we generally avoided technology hardware stocks because of our concerns about their valuations. We preferred to find exposure to an improving economy in other areas that were more reasonably priced. We sold our position in Anglo-Irish Bank, an excellent long-term performer, because of our concern about its stock price, and invested in Allied Irish Banks, a more retail-focused bank with a lower valuation. For similar valuation concerns, we sold Wolseley and invested in LAFARGE, a French cement company. As we liquidated our position in Aventis, because of our concern about the company's high stock price, we invested in the more reasonably valued Zurich Financial Services. As indicated earlier, we invested in Dixons during the period, using the proceeds from our sale of Nokia stock. Q: What is your investment outlook for Europe? A: We think economic growth, which has been generally sluggish, should improve, but not dramatically - perhaps to an annual growth rate of about 2%. Interest rates should remain low, which we believe should support continued liquidity in the financial markets. Even after the impressive gains of the past year, we think stock prices in Europe still are attractive, with a dividend yield on the market of about 2.8% and average price/earnings multiple of about 15 or 16, which we believe to be reasonable at this point in the market cycle. This should be a good environment for our strategy of focusing on companies with strong fundamentals, good earnings prospects and attractive valuations. Any information in this shareholder report regarding market or economic trends or the factors influencing the Fund's historical or future performance are statements of the opinion of Fund management as of the date of this report. These statements should not be relied upon for any other purposes. Past performance is no guarantee of future results, and there is no guarantee that market forecasts discussed will be realized. 9 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS 2/29/04 (unaudited) - --------------------------------------------------------------------------------
Shares Value PREFERRED STOCK - 3.4% Automobiles & Components - 3.4% Automobile Manufacturers - 3.4% 215 Porsche AG Designs $ 125,293 ---------- TOTAL PREFERRED STOCK (Cost $92,087) $ 125,293 ---------- COMMON STOCKS - 89.2% Energy - 10.6% Integrated Oil & Gas - 10.6% 15,248 BG Group Plc $ 89,938 21,644 BP Amoco Plc 174,204 6,047 ENI S.p.A. 119,255 ---------- $ 383,397 ---------- Total Energy $ 383,397 ---------- Materials - 12.9% Commodity Chemicals - 2.8% 1,913 BASF AG $ 101,875 ---------- Construction Materials - 5.4% 5,600 CRH Plc $ 117,756 914 LAFARGE BR 78,811 ---------- $ 196,567 ---------- Diversified Metals & Mining - 2.0% 2,291 Sandvik AB $ 73,545 ---------- Specialty Chemicals - 2.7% 543 L'Air Liquide SA* $ 96,345 ---------- Total Materials $ 468,332 ---------- Capital Goods - 8.9% Construction & Engineering - 5.6% 1,843 ACS, Actividades de Construccion y Servicios, SA $ 93,377 2,085 Compagnie de Saint Gobain SA 109,608 ---------- $ 202,985 ---------- Electrical Components & Equipment - 3.3% 1,816 Schneider Electric SA $ 120,886 ---------- Total Capital Goods $ 323,871 ----------
10 The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Fund - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
Shares Value Commercial Services & Supplies - 3.0% Diversified Commercial Services - 3.0% 4,962 TNT Post Group NV* $ 108,477 ---------- Total Commercial Services & Supplies $ 108,477 ---------- Automobiles & Components - 2.1% Automobile Manufacturers - 2.1% 1,827 Bayerische Motoren Werke AG $ 78,154 ---------- Total Automobiles & Components $ 78,154 ---------- Media - 3.5% Publishing - 3.5% 9,316 Elsevier NV $ 127,969 ---------- Total Media $ 127,969 ---------- Food & Drug Retailing - 4.3% Food Retail - 4.3% 592 Nestle SA (Registered Shares) $ 156,478 ---------- Total Food & Drug Retailing $ 156,478 ---------- Food, Beverage & Tobacco - 5.5% Distillers & Vintners - 2.7% 7,032 Diageo Plc $ 97,772 ---------- Tobacco - 2.8% 6,776 British American Tobacco Plc $ 103,533 ---------- Total Food, Beverage & Tobacco $ 201,305 ---------- Health Care Equipment & Services - 2.0% Health Care Distributors - 2.0% 1,363 Celesio AG $ 71,568 ---------- Total Health Care Equipment & Services $ 71,568 ---------- Pharmaceuticals & Biotechnology - 6.5% Pharmaceuticals - 6.5% 7,533 GlaxoSmithKline Plc $ 157,106 1,638 Schering AG 81,197 ---------- $ 238,303 ---------- Total Pharmaceuticals & Biotechnology $ 238,303 ----------
The accompanying notes are an integral part of these financial statements. 11 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS 2/29/04 (unaudited) (continued) - --------------------------------------------------------------------------------
Shares Value Banks - 13.4% Diversified Banks - 13.4% 7,128 Allied Irish Banks Plc $ 108,468 13,548 Barclays Plc 121,760 2,485 BNP Paribas SA 157,226 4,255 Danske Bank 99,798 ---------- $ 487,252 ---------- Total Banks $ 487,252 ---------- Diversified Financials - 6.3% Diversified Financial Services - 6.3% 1,801 Deutsche Boerse AG 103,731 1,404 Societe Generale SA 124,818 ---------- $ 228,549 ---------- Total Diversified Financials $ 228,549 ---------- Insurance - 2.5% Multi-Line Insurance - 2.5% 544 Zurich Financial Services* $ 89,279 ---------- Total Insurance $ 89,279 ---------- Technology Hardware & Equipment - 2.7% Computer Hardware - 2.7% 32,927 Dixons Group Plc $ 96,856 ---------- Total Technology Hardware & Equipment $ 96,856 ---------- Telecommunication Services - 5.0% Wireless Telecommunication Services - 5.0% 71,820 Vodafone Group Plc $ 180,223 ---------- Total Telecommunication Services $ 180,223 ---------- TOTAL COMMON STOCKS (Cost $2,760,644) $3,240,013 ---------- TOTAL INVESTMENT IN SECURITIES - 92.6% (Cost $2,852,731) (a)(b)(c)(d) $3,365,306 ---------- OTHER ASSETS AND LIABILITIES - 7.4% $ 268,543 ---------- TOTAL NET ASSETS - 100.0% $3,633,849 ----------
12 The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Fund - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- * Non-income producing security (a) At February 29, 2004, the net unrealized gain on investments based on cost for federal income tax purposes of $2,852,731 was as follows: Aggregate gross unrealized gain for all investments in which there is an excess of value over tax cost $533,106 -------- Aggregate gross unrealized loss for all investments in which there is an excess of tax cost over value (20,531) -------- Net unrealized gain $512,575 ========
(b) Distribution of investments by country of issue, (excluding temporary cash investments) as a percentage of total equity holdings, is as follows: United Kingdom 30.4% France 20.4 Germany 16.7 Switzerland 7.3 Netherlands 7.0 Ireland 6.7 Italy 3.5 Denmark 3.0 Spain 2.8 Sweden 2.2 ---- 100.0% =====
(c) At August 31, 2003, the Fund had a capital loss carryforward of $86,278 of which the following amounts will expire between 2009 and 2011 if not utilized. $62,598 in 2009 $19,490 in 2010 $4,190 in 2011 (d) The Fund has elected to defer approximately $45,439 of capital losses recognized between November 1, 2002 and August 31, 2003 to its fiscal year ending August 31, 2004. Purchases and sales of securities (excluding temporary cash investments) for the six months ended February 29, 2004 aggregated $2,090,734 and $1,029,796, respectively. The accompanying notes are an integral part of these financial statements. 13 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES 2/29/04 (unaudited) - -------------------------------------------------------------------------------- ASSETS: Investment in securities, at value (cost $2,852,731) $3,365,306 Cash 163,198 Foreign currencies, at value (cost $4) 4 Receivables - Fund shares sold 219,628 Dividends, interest and foreign taxes withheld 9,651 Due from Pioneer Investment Management, Inc. 20,620 Other 2,073 ---------- Total assets $3,780,480 ---------- LIABILITIES: Payables - Investment securities purchased $ 112,819 Fund shares repurchased 13,687 Forward foreign currency settlement hedge contracts - net 945 Due to affiliates 3,392 Accrued expenses 15,788 ---------- Total liabilities $ 146,631 ---------- NET ASSETS: Paid-in capital $3,078,978 Accumulated net investment loss (6,083) Accumulated net realized gain on investments and foreign currency transactions 47,736 Net unrealized gain on investments 512,575 Net unrealized gain on forward foreign currency contracts and other assets and liabilities denominated in foreign currencies 643 ---------- Total net assets $3,633,849 ---------- NET ASSET VALUE PER SHARE: (Unlimited number of shares authorized) Class A (based on $1,763,590/161,943 shares) $ 10.89 ---------- Class B (based on $788,577/73,064 shares) $ 10.79 ---------- Class C (based on $1,081,682/99,669 shares) $ 10.85 ---------- MAXIMUM OFFERING PRICE: Class A ($10.89 [divided by] 94.25%) $ 11.55 ---------- Class C ($10.85 [divided by] 99.00%) $ 10.96 ----------
14 The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Fund - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS (unaudited) - -------------------------------------------------------------------------------- For the Six Months Ended 2/29/04 INVESTMENT INCOME: Dividends (net of foreign taxes withheld of $1,357) $ 13,953 Interest 264 -------- Total investment income $ 14,217 -------- EXPENSES: Management fees $ 12,564 Transfer agent fees Class A 5,004 Class B 3,402 Class C 1,581 Distribution fees Class A 1,538 Class B 3,024 Class C 3,390 Administrative fees 12,596 Custodian fees 17,871 Registration fees 26,015 Professional fees 21,316 Printing 5,794 Fees and expenses of nonaffiliated trustees 1,854 Miscellaneous 2,439 -------- Total expenses $118,388 -------- Less management fees waived and expenses reim- bursed by Pioneer Investment Management, Inc. (97,882) Less fees paid indirectly (71) -------- Net expenses $ 20,435 -------- Net investment loss $ (6,218) -------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on: Investments $208,812 Forward foreign currency contracts and other assets and liabilities denominated in foreign currencies (14,573) $194,239 -------- -------- Change in net unrealized gain on: Investments $363,118 Forward foreign currency contracts and other assets and liabilities denominated in foregin currencies 1,289 $364,407 ----- --- -------- Net gain on investments and foreign currency transactions $558,646 -------- Net increase in net assets resulting from operations $552,428 --------
The accompanying notes are an integral part of these financial statements. 15 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS (unaudited) - -------------------------------------------------------------------------------- For the Six Months Ended 2/29/04 and the Year Ended 8/31/03
Six Months Ended Year 2/29/04 Ended (unaudited) 8/31/03 FROM OPERATIONS: Net investment income (loss) $ (6,218) $ 8,305 Net realized gain (loss) on investments and foreign currency transactions 194,239 (36,987) Change in net unrealized gain on investments and foreign currency transactions 364,407 176,249 ---------- ---------- Net increase in net assets resulting from operations $ 552,428 $ 147,567 ---------- ---------- DISTRIBUTIONS TO SHAREOWNERS: Net investment income: Class A ($0.10 and $0.00 per share, respectively) $ (12,726) $ - Class B ($0.05 and $0.00 per share, respectively) (3,245) - Class C ($0.11 and $0.00 per share, respectively) (8,506) - ---------- ---------- Total distributions to shareowners $ (24,477) $ - ---------- ---------- FROM FUND SHARE TRANSACTIONS: Net proceeds from sale of shares $1,777,243 $1,275,823 Reinvestment of distributions 17,539 - Cost of shares repurchased (463,989) (710,875) ---------- ---------- Net increase in net assets resulting from fund share transactions $1,330,793 $ 564,948 ---------- ---------- Net increase in net assets $1,858,744 $ 712,515 NET ASSETS: Beginning of period 1,775,105 1,062,590 ---------- ---------- End of period (including accumulated net investment income (loss) of ($6,083) and $24,612, respectively) $3,633,849 $1,775,105 ---------- ----------
16 The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Fund - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- For the Six Months Ended 2/29/04 and the Year Ended 8/31/03
'04 Shares '04 Amount '03 Shares '03 Amount (unaudited) (unaudited) CLASS A Shares sold 89,417 $ 917,201 103,178 $ 816,563 Reinvestment of distributions 1,103 11,403 - - Less shares repurchased (33,780) (338,648) (69,582) (551,452) ------- --------- ------- --------- Net increase 56,740 $ 589,956 33,596 $ 265,111 ======= ========= ======= ========= CLASS B Shares sold 27,432 $ 277,953 27,825 $ 225,223 Reinvestment of distributions 252 2,585 - - Less shares repurchased (7,719) (78,563) (11,896) (91,084) ------- --------- ------- --------- Net increase 19,965 $ 201,975 15,929 $ 134,139 ======= ========= ======= ========= CLASS C Shares sold 57,385 $ 582,089 30,317 $ 234,037 Reinvestment of distributions 344 3,551 - - Less shares repurchased (4,579) (46,778) (8,980) (68,339) ------- --------- ------- --------- Net increase 53,151 $ 538,862 21,337 $ 165,698 ======= ========= ======= =========
The accompanying notes are an integral part of these financial statements. 17 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
Six Months Ended Year Year 12/29/00 2/29/04 Ended Ended to CLASS A (a) (unaudited) 8/31/03 8/31/02 8/31/01 Net asset value, beginning of period $ 8.68 $ 7.91 $ 8.15 $ 10.00 ------ ------- ------- ------- Increase (decrease) from investment operations: Net investment income (loss) $(0.02) $ 0.07 $ 0.04 $ 0.05 Net realized and unrealized gain (loss) on investments and foreign currency transactions $ 2.33 $ 0.70 $ (0.18) $ (1.90) ------ ------- ------- ------- Net increase (decrease) from investment operations $ 2.31 $ 0.77 $ (0.14) $ (1.85) Distributions to shareowners: Net investment income $(0.10) $ - $ (0.10) $ - ------ ------- ------- ------- Net increase (decrease) in net asset value $ 2.21 $ 0.77 $ (0.24) $ (1.85) ------ ------- ------- ------- Net asset value, end of period $10.89 $ 8.68 $ 7.91 $ 8.15 ====== ======= ======= ======= Total return* 26.70% 9.73% (1.76)% (18.50)% Ratio of net expenses to average net assets+ 1.25%** 1.62% 1.75% 1.76%** Ratio of net investment income (loss) to average net assets+ (0.13)%** 1.02% 0.17% 0.92%** Portfolio turnover rate 85%** 67% 68% 135%** Net assets, end of period (in thousands) $1,764 $ 914 $ 567 $ 266 Ratios with no waiver of management fees and assumption of expenses by PIM and no reduction for fees paid indirectly: Net expenses 9.08%** 16.15% 31.21% 39.42%** Net investment loss (7.95)%** (13.51)% (29.29)% (36.74)%** Ratios with waiver of management fees and assumption of expenses by PIM and reduction for fees paid indirectly: Net expenses 1.25%** 1.62% 1.75% 1.75%** Net investment income (loss) (0.13)%** 1.02% 0.17% 0.93%**
(a) Class A shares were first publicly offered on January 2, 2001. * Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period, and no sales charges. Total return would be reduced if sales charges were taken into account. ** Annualized. + Ratios with no reduction for fees paid indirectly. 18 The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
Six Months Ended Year Year 12/29/00 2/29/04 Ended Ended to CLASS B (a) (unaudited) 8/31/03 8/31/02 8/31/01 Net asset value, beginning of period $ 8.62 $ 7.94 $ 8.13 $ 10.00 ------ ------- ------- ------- Increase (decrease) from investment operations: Net investment income (loss) $(0.08) $ (0.01) $ (0.05) $ 0.02 Net realized and unrealized gain (loss) on investments and foreign currency transactions 2.30 0.69 (0.14) (1.89) ------ ------- ------- ------- Net increase (decrease) from investment operations $ 2.22 $ 0.68 $ (0.19) $ (1.87) Distributions to shareowners: Net investment income $(0.05) $ - $ - $ - ------ ------- ------- ------- Net increase (decrease) in net asset value $ 2.17 $ 0.68 $ (0.19) $ (1.87) Net asset value, end of period $10.79 $ 8.62 $ 7.94 $ 8.13 ====== ======= ======= ======= Total return* 25.79% 8.57% (2.34)% (18.70)% Ratio of net expenses to average net assets+ 2.33%** 2.78% 2.33% 2.34%** Ratio of net investment income (loss) to average net assets+ (1.22)%** (0.10)% (0.52)% 0.29%** Portfolio turnover rate 85%** 67% 68% 135%** Net assets, end of period (in thousands) $ 789 $ 457 $ 295 $ 158 Ratios with no waiver of management fees and assumption of expenses by PIM and no reduction for fees paid indirectly: Net expenses 10.13%** 17.41% 31.81% 40.08%** Net investment loss (9.02)%** (14.73)% (30.00)% (37.45)%** Ratios with waiver of management fees and assumption of expenses by PIM and reduction for fees paid indirectly: Net expenses 2.33%** 2.78% 2.33% 2.33%** Net investment income (loss) (1.22)%** (0.10)% (0.52)% 0.30%**
(a) Class B shares were first publicly offered on January 2, 2001. * Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period, and no sales charges. Total return would be reduced if sales charges were taken into account. ** Annualized. + Ratios with no reduction for fees paid indirectly. The accompanying notes are an integral part of these financial statements. 19 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - --------------------------------------------------------------------------------
Six Months Ended Year Year 12/29/00 2/29/04 Ended Ended to CLASS C (a) (unaudited) 8/31/03 8/31/02 8/31/01 Net asset value, beginning of period $ 8.69 $ 7.96 $ 8.14 $ 10.00 ------ ------- ------- ------- Increase (decrease) from investment operations: Net investment income (loss) $(0.06) $ 0.03 $ (0.04) $ 0.02 Net realized and unrealized gain (loss) on investments and foreign currency transactions $ 2.33 $ 0.70 $ (0.14) $ (1.88) ------ ------- ------- ------- Net increase (decrease) from investment operations $ 2.27 $ 0.73 $ (0.18) $ (1.86) Distributions to shareowners: Net investment income $(0.11) $ - $ - $ - ------ ------- ------- ------- Net increase (decrease) in net asset value $ 2.16 $ 0.73 $ (0.18) $ (1.86) Net asset value, end of period $10.85 $ 8.69 $ 7.96 $ 8.14 ====== ======= ======= ======= Total return* 26.16% 9.17% (2.21)% (18.60)% Ratio of net expenses to average net assets+ 1.68%** 2.27% 2.22% 2.08%** Ratio of net investment income (loss) to average net assets+ (0.53)%** 0.54% (0.35)% 0.45%** Portfolio turnover rate 85%** 67% 68% 135%** Net assets, end of period (in thousands) $1,082 $ 404 $ 201 $ 105 Ratios with no waiver of management fees and assumption of expenses by PIM and no reduction for fees paid indirectly: Net expenses 9.40%** 17.02% 31.70% 40.11%** Net investment loss (8.24)%** (14.21)% (29.83)% (37.58)%** Ratios with waiver of management fees and assumption of expenses by PIM and reduction for fees paid indirectly: Net expenses 1.68%** 2.27% 2.22% 2.07%** Net investment income (loss) (0.53)%** 0.54% (0.35)% 0.46%**
(a) Class C shares were first publicly offered on January 2, 2001. * Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions, the complete redemption of the investment at net asset value at the end of each period, and no sales charges. Total return would be reduced if sales charges were taken into account. ** Annualized. + Ratios assuming no reduction for fees paid indirectly. 20 The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS 2/29/04 (unaudited) - -------------------------------------------------------------------------------- 1. Organization and Significant Accounting Policies Pioneer Europe Select Fund (the Fund) is a Delaware statutory trust registered under the Investment Company Act of 1940 as a non-diversified, open-end management investment company. The Fund was organized on August 25, 2000 and commenced operations on December 29, 2000. Prior to December 29, 2000, the Fund had no operations other than those relating to organizational matters and the initial capitalization of the Fund by Pioneer Funds Distributor, Inc. (PFD). The investment objective of the Fund is to seek capital growth by investing primarily in European equity securities. The Fund offers three classes of shares - Class A, Class B and Class C shares. Fund Shares were first publicly offered on January 2, 2001. 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 shareowners, respectively. The Fund's financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America 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 income, expenses, gains and losses on investments during the reporting period. 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 as of trade date. The net asset value is computed once daily, on each day the New York Stock Exchange is open, as of the close of regular trading on the Exchange. In computing the net asset value, 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 securi- 21 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS 2/29/04 (unaudited) (continued) - -------------------------------------------------------------------------------- ties 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. The Fund also may use the fair value of a security, including a non-U.S. security, when the closing market price on the primary exchange where the security is traded no longer accurately reflects the value of the security. Dividend income is recorded on the ex-dividend date, except that certain dividends where the ex-dividend date may have passed are recorded as soon as the Fund becomes aware of the ex-dividend data in the exercise of reasonable diligence. Dividend and interest income, including interest on income bearing cash accounts, is recorded on the accrual basis, net of unrecoverable foreign taxes withheld at the applicable country rates. Temporary cash investments are valued at amortized cost. Gains and losses on sales of investments are calculated on the identified cost method for both financial reporting and federal income tax purposes. Investing in the securities of European issuers involves unique risks compared to investing in securities of U.S. issuers. These risks are more pronounced to the extent that the Fund invests a significant portion of its investments in any one European region. The Fund is not diversified, which means that it can invest a higher percentage of its assets in any one issuer than a diversified fund. Being non-diversified may magnify the Fund's losses from adverse events affecting a particular issuer. 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 translations represent, among other things, the net realized gains and losses on foreign currency contracts, disposition of foreign currencies and the 22 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- difference between the amount of income accrued and the U.S. dollar actually received. Further, the effects of changes in foreign currency exchange rates on investments are not segregated in the statement of operations from the effects of changes in market price of those securities but are included with the net realized and unrealized gain or loss on investments. C. Forward Foreign Currency Contracts The Fund enters into forward foreign currency contracts (contracts) for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge or cross-hedge against either specific investment transactions (settlement hedges) or portfolio positions (portfolio hedges). All contracts are marked to market daily at the applicable exchange rates and any resulting unrealized gains or losses are recorded in the Fund's financial statements. The Fund records realized gains and losses at the time a portfolio hedge is offset by entry into a 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. At February 29, 2004, the Fund had no outstanding portfolio hedges. The Fund's gross forward currency settlement contracts receivable and payable were $112,819 and $113,764, repectively, resulting in a net payable of $945. D. Federal Income Taxes It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated investments companies and to distribute all of its taxable income and net realized capital gains, if any, to its shareowners. Therefore, no federal income tax provision is required. The amount and charaterization of distributions to shareowners 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. 23 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS 2/29/04 (unaudited) (continued) - -------------------------------------------------------------------------------- The tax character of current year distributions paid will be determined at the end of the current fiscal year. No distributions were paid by the Fund for the fiscal year ended August 31, 2003. The following shows components of distributable earnings on a federal income tax basis at August 31, 2003.
- -------------------------------------------------------------------------------- 2003 - -------------------------------------------------------------------------------- Undistributed ordinary income $24,466 Unrealized appreciation 134,025 Capital loss carryforward (86,278) ------- Total $72,213 ======= - --------------------------------------------------------------------------------
The difference between book-basis and tax-basis unrealized appre ciation is attributable to the tax deferral of losses on wash sales. At August 31, 2003, the Fund has reclassified $16,689 to increase accumulated net realized loss on investments and foreign currency transactions and $16,689 to increase accumulated undistributed net investment income. The reclassification has no impact on the net assets of the Fund and presents the Fund's capital accounts on a tax basis. E. Fund Shares The Fund records sales and repurchases of its shares as of trade date. PFD, the principal underwriter for the Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A. (UniCredito Italiano) earned $2,068 in underwriting commissions on the sale of Fund shares during the six months ended February 29, 2004. F. Class Allocations and Distributions 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. Shareowners of each class share all expenses and fees paid to the transfer agent, Pioneer Investment Management Shareholder Services, Inc. (PIMSS), for its services, which are allocated based on the number of accounts in each class and the ratable allocation of related out-of-pocket expenses (see Note 3). Income, common expenses and realized and unrealized gains and losses are calculated at the Fund level and allocated 24 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- daily to each class of shares based on the respective percentage of adjusted net assets at the beginning of the day. Distributions to shareowners 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. 2. Management Agreement Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser, manages the Fund's portfolio, and is a wholly owned indirect subsidiary of UniCredito Italiano. Management fees are calculated daily at the annual rate of 1.00% of the Fund's average daily net assets up to $300 million; 0.85% of the $200 million; and 0.75% of the excess over $500 million. PIM has agreed not to impose all or portion of its management fee and to assume other operating expenses of the Fund to the extent necessary to limit Class A expenses to 1.75% of the average daily net assets attributable to Class A shares. Effective June 16, 2003, PIM has further agreed not to impose all or 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 1.25% of the average daily net assets attributable to Class A shares. This additional waiver/subsidy is voluntary and may be revised or terminated at any time by PIM. 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. In addition, under the management and administrative agreement, certain other services and costs, including accounting, regulatory reporting and insurance premiums, are paid by the Fund. At February 29, 2004, $54 was payable to PIM related to management fees, administrative fees and certain other services and is included in due to affliates. 25 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS 2/29/04 (unaudited) (continued) - -------------------------------------------------------------------------------- 3. Transfer Agent PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides substantially all transfer agent and shareowner services to the Fund at negotiated rates. Included in due to affiliates is $1,560 in transfer agent fees payable to PIMSS at February 29, 2004. 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 under 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 average daily net assets attributable to Class A shares 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 $1,778 in distribution fees payable to PFD at February 29, 2004. 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 4.00%, 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 period ended February 29, 2004 CDSCs in the amount of $1,978 were paid to PFD. Effective November 1, 2003, the Fund charges a 2.00% redemption fee on shares (except Class B and Class C shares) redeemed within 30 days of purchase. The Fund plans to implement this fee for Class B and Class C shares as soon as the Fund can implement operational changes. The fee does not apply to certain types of transactions as described in the Fund's prospectus. For the six months ended February 29, 2004, the Fund collected $47 in redemption fees, which are included in the Fund's paid-in capital account. 26 Pioneer Europe Select Fund 5. Expense Offset Arrangments The Fund has entered into certain expense offset arrangements with PIMSS resulting in a reduction in the Fund's total expenses due to interest earned on cash held by PIMSS. For the period ended February 29, 2004, the Fund's expenses were reduced by $71 under such arrangements. 27 Pioneer Europe Select Fund - -------------------------------------------------------------------------------- TRUSTEES, OFFICERS AND SERVICE PROVIDERS - -------------------------------------------------------------------------------- Trustees Officers John F. Cogan, Jr., Chairman John F. Cogan, Jr., President Mary K. Bush Osbert M. Hood, Executive Richard H. Egdahl, M.D. Vice President Margaret B.W. Graham Vincent Nave, Treasurer Osbert M. Hood* Dorothy E. Bourassa, Secretary Marguerite A. Piret Stephen K. West John Winthrop Investment Adviser Pioneer Investment Management, Inc. Custodian Brown Brothers Harriman & Co. Principal Underwriter Pioneer Funds Distributor, Inc. Legal Counsel Hale and Dorr LLP Shareowner Services and Transfer Agent Pioneer Investment Management Shareholder Services, Inc. Proxy Voting Policies and Procedures of the Fund are available without charge, upon request, by calling our toll free number (1-800-225-6292). This information is also available on the Securities and Exchange Commission's web site at http://www.sec.gov. 28 - -------------------------------------------------------------------------------- THE PIONEER FAMILY OF MUTUAL FUNDS - -------------------------------------------------------------------------------- For information about any Pioneer mutual fund, please contact your investment professional, 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. U.S. Equity International/Global Equity Pioneer Fund Pioneer Emerging Markets Fund Pioneer Balanced Fund Pioneer Europe Select Fund Pioneer Equity Income Fund Pioneer Europe Fund Pioneer Growth Shares Pioneer International Equity Fund Pioneer Mid Cap Growth Fund Pioneer International Value Fund Pioneer Mid Cap Value Fund Pioneer Oak Ridge Large Cap Fixed Income Growth Fund Pioneer America Income Trust Pioneer Oak Ridge Small Cap Pioneer Bond Fund Growth Fund Pioneer Global High Yield Fund Pioneer Papp America-Pacific Pioneer High Yield Fund Rim Fund Pioneer Strategic Income Fund Pioneer Papp Small and Mid Cap Pioneer Tax Free Income Fund Growth Fund Pioneer Papp Stock Fund Money Market Pioneer Papp Strategic Pioneer Cash Reserves Fund** Growth Fund Pioneer Real Estate Shares Pioneer Research Fund* Pioneer Small Cap Value Fund Pioneer Small Company Fund Pioneer Value Fund * Name change effective December 11, 2004. ** An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. 29 - -------------------------------------------------------------------------------- HOW TO CONTACT PIONEER - -------------------------------------------------------------------------------- We are pleased to offer a variety of convenient ways for you to contact us for assistance or information. Call us for: Account Information, including existing accounts, new accounts, prospectuses, applications and service forms 1-800-225-6292 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: PIMSS, Inc. P.O. Box 55014 Boston, Massachusetts 02205-5014 Our toll-free fax 1-800-225-4240 Our Internet e-mail address ask.pioneer@pioneerinvest.com (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 Investments LOGO] Pioneer Investment Management, Inc. 15104-00-0404 60 State Street (C)2004 Pioneer Funds Distributor, Inc. Boston, Massachusetts 02109 Underwriter of Pioneer mutual funds, Member SIPC www.pioneerfunds.com (Recycle Logo) Printed on Recycled Paper ITEM 2. CODE OF ETHICS. (a) Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so. The registrant has adopted, as of the end of the period covered by this report, a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer and controller. (b) For purposes of this Item, the term "code of ethics" means written standards that are reasonably designed to deter wrongdoing and to promote: (1) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (2) Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant; (3) Compliance with applicable governmental laws, rules, and regulations; (4) The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and (5) Accountability for adherence to the code. (c) The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless the registrant has elected to satisfy paragraph (f) of this Item by posting its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item. The registrant has made no amendments to the code of ethics during the period covered by this report. (d) If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the code of ethics to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver. Not applicable. (e) If the registrant intends to satisfy the disclosure requirement under paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from, a provision of its code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item by posting such information on its Internet website, disclose the registrant's Internet address and such intention. Not applicable. (f) The registrant must: (1) File with the Commission, pursuant to Item 10(a), a copy of its code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, as an exhibit to its annual report on this Form N-CSR; (2) Post the text of such code of ethics on its Internet website and disclose, in its most recent report on this Form N-CSR, its Internet address and the fact that it has posted such code of ethics on its Internet website; or (3) Undertake in its most recent report on this Form N-CSR to provide to any person without charge, upon request, a copy of such code of ethics and explain the manner in which such request may be made. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a) (1) Disclose that the registrant's board of trustees has determined that the registrant either: (i) Has at least one audit committee financial expert serving on its audit committee; or (ii) Does not have an audit committee financial expert serving on its audit committee. The registrant's Board of Trustees has determined that the registrant has at least one audit committee financial expert. (2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is "independent." In order to be considered "independent" for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of trustees, or any other board committee: (i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or (ii) Be an "interested person" of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)). Ms. Marguerite A. Piret, an independent trustee, is such an audit committee financial expert. (3) If the registrant provides the disclosure required by paragraph (a)(1) (ii) of this Item, it must explain why it does not have an audit committee financial expert. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. N/A (b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A (c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A (d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. N/A (e) (1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. PIONEER FUNDS APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES PROVIDED BY THE INDEPENDENT AUDITOR SECTION I - POLICY PURPOSE AND APPLICABILITY The Pioneer Funds recognizes the importance of maintaining the independence of their outside auditors. Maintaining independence is a shared responsibility involving Pioneer Investment Management, Inc ("PIM"), the audit committee and the independent auditors. The Funds recognizes that a Fund's independent auditors: 1) possess knowledge of the Funds, 2) are able to incorporate certain services into the scope of the audit, thereby avoiding redundant work, cost and disruption of Fund personnel and processes, and 3) have expertise that has value to the Funds. As a result, there are situations where it is desirable to use the Fund's independent auditors for services in addition to the annual audit and where the potential for conflicts of interests are minimal. Consequently, this policy, which is intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and procedures to be followed by the Funds when retaining the independent audit firm to perform audit, audit-related tax and other services under those circumstances, while also maintaining independence. Approval of a service in accordance with this policy for a Fund shall also constitute approval for any other Fund whose pre-approval is required pursuant to Rule 210.2-01(c)(7)(ii). In addition to the procedures set forth in this policy, any non-audit services that may be provided consistently with Rule 210.2-01 may be approved by the Audit Committee itself and any pre-approval that may be waived in accordance with Rule 210.2-01(c)(7)(i)(C) is hereby waived. Selection of a Fund's independent auditors and their compensation shall be determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY - ---------------- -------------------------------- ------------------------------------------------- SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES CATEGORY - ---------------- -------------------------------- ------------------------------------------------- I. AUDIT Services that are directly o Accounting research assistance SERVICES related to performing the o SEC consultation, registration independent audit of the Funds statements, and reporting o Tax accrual related matters o Implementation of new accounting standards o Compliance letters (e.g. rating agency letters) o Regulatory reviews and assistance regarding financial matters o Semi-annual reviews (if requested) o Comfort letters for closed end offerings - ---------------- -------------------------------- ------------------------------------------------- II. Services which are not o AICPA attest and agreed-upon procedures AUDIT-RELATED prohibited under Rule o Technology control assessments SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments and are related extensions of o Enterprise security architecture the audit services support the assessment audit, or use the knowledge/expertise gained from the audit procedures as a foundation to complete the project. In most cases, if the Audit-Related Services are not performed by the Audit firm, the scope of the Audit Services would likely increase. The Services are typically well-defined and governed by accounting professional standards (AICPA, SEC, etc.) - ---------------- -------------------------------- ------------------------------------------------- ------------------------------------- ------------------------------------ AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE REPORTING POLICY ------------------------------------- ------------------------------------ o "One-time" pre-approval o A summary of all such for the audit period for all services and related fees pre-approved specific service reported at each regularly subcategories. Approval of the scheduled Audit Committee independent auditors as meeting. auditors for a Fund shall constitute pre approval for these services. ------------------------------------- ------------------------------------ o "One-time" pre-approval o A summary of all such for the fund fiscal year within services and related fees a specified dollar limit (including comparison to for all pre-approved specified dollar limits) specific service subcategories reported quarterly. o Specific approval is needed to exceed the pre-approved dollar limit for these services (see general Audit Committee approval policy below for details on obtaining specific approvals) o Specific approval is needed to use the Fund's auditors for Audit-Related Services not denoted as "pre-approved", or to add a specific service subcategory as "pre-approved" ------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED - ----------------------- --------------------------- ----------------------------------------------- SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES DESCRIPTION - ----------------------- --------------------------- ----------------------------------------------- III. TAX SERVICES Services which are not o Tax planning and support prohibited by the Rule, o Tax controversy assistance if an officer of the Fund o Tax compliance, tax returns, excise determines that using the tax returns and support Fund's auditor to provide o Tax opinions these services creates significant synergy in the form of efficiency, minimized disruption, or the ability to maintain a desired level of confidentiality. - ----------------------- --------------------------- ----------------------------------------------- - ------------------------------------- ------------------------- AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE REPORTING POLICY - ------------------------------------- ------------------------- - ------------------------------------- ------------------------- o "One-time" pre-approval o A summary of for the fund fiscal year all such services and within a specified dollar limit related fees (including comparison to specified dollar limits) reported quarterly. o Specific approval is needed to exceed the pre-approved dollar limits for these services (see general Audit Committee approval policy below for details on obtaining specific approvals) o Specific approval is needed to use the Fund's auditors for tax services not denoted as pre-approved, or to add a specific service subcategory as "pre-approved" - ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED - ----------------------- --------------------------- ----------------------------------------------- SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES DESCRIPTION - ----------------------- --------------------------- ----------------------------------------------- IV. OTHER SERVICES Services which are not o Business Risk Management support prohibited by the Rule, o Other control and regulatory A. SYNERGISTIC, if an officer of the Fund compliance projects UNIQUE QUALIFICATIONS determines that using the Fund's auditor to provide these services creates significant synergy in the form of efficiency, minimized disruption, the ability to maintain a desired level of confidentiality, or where the Fund's auditors posses unique or superior qualifications to provide these services, resulting in superior value and results for the Fund. - ----------------------- --------------------------- ----------------------------------------------- - --------------------------------------- ------------------------ AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE REPORTING POLICY - ------------------------------------- -------------------------- o "One-time" pre-approval o A summary of for the fund fiscal year within all such services and a specified dollar limit related fees (including comparison to specified dollar limits) reported quarterly. o Specific approval is needed to exceed the pre-approved dollar limits for these services (see general Audit Committee approval policy below for details on obtaining specific approvals) o Specific approval is needed to use the Fund's auditors for "Synergistic" or "Unique Qualifications" Other Services not denoted as pre-approved to the left, or to add a specific service subcategory as "pre-approved" - ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED - ----------------------- ------------------------- ----------------------------------------------- SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES DESCRIPTION - ----------------------- ------------------------- ----------------------------------------------- PROHIBITED SERVICES Services which result 1. Bookkeeping or other services in the auditors losing related to the accounting records or independence status financial statements of the audit under the Rule. client* 2. Financial information systems design and implementation* 3. Appraisal or valuation services, fairness* opinions, or contribution-in-kind reports 4. Actuarial services (i.e., setting actuarial reserves versus actuarial audit work)* 5. Internal audit outsourcing services* 6. Management functions or human resources 7. Broker or dealer, investment advisor, or investment banking services 8. Legal services and expert services unrelated to the audit 9. Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible - ----------------------- ------------------------- ----------------------------------------------- - ------------------------------------------- ------------------------------ AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE REPORTING POLICY - ------------------------------------------- ------------------------------ o These services are not to be o A summary of all performed with the exception of the(*) services and related services that may be permitted fees reported at each if they would not be subject to audit regularly scheduled procedures at the audit client (as Audit Committee meeting defined in rule 2-01(f)(4)) level will serve as continual the firm providing the service. confirmation that has not provided any restricted services. - ------------------------------------------- ------------------------------
- -------------------------------------------------------------------------------- GENERAL AUDIT COMMITTEE APPROVAL POLICY: o For all projects, the officers of the Funds and the Fund's auditors will each make an assessment to determine that any proposed projects will not impair independence. o Potential services will be classified into the four non-restricted service categories and the "Approval of Audit, Audit-Related, Tax and Other Services" Policy above will be applied. Any services outside the specific pre-approved service subcategories set forth above must be specifically approved by the Audit Committee. o At least quarterly, the Audit Committee shall review a report summarizing the services by service category, including fees, provided by the Audit firm as set forth in the above policy. - -------------------------------------------------------------------------------- (2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. N/A (f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. N/A (g) Disclose the aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. N/A (h) Disclose whether the registrant's audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. N/A ITEMS 5-6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company's investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company's investment adviser, or any other third party, that the company uses, or that are used on the company's behalf, to determine how to vote proxies relating to portfolio securities. Not applicable to open-end management investment companies. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) Disclose the conclusions of the registrant's principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, about the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR 270.30a-2(c))) based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. (b) Disclose whether or not there were significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 10. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. Filed herewith. (b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2). Filed herewith. SIGNATURES [See General Instruction F] Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Pioneer Europe Select Fund By (Signature and Title)* /s/ John F. Cogan, Jr. John F. Cogan, Jr, President Date May 14, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ John F. Cogan, Jr. John F. Cogan, Jr., President Date May 14, 2004 By (Signature and Title)* /s/ Vincent Nave Vincent Nave, Treasurer Date May 14, 2004 * Print the name and title of each signing officer under his or her signature. EX-99 2 cert.txt CERTIFICATIONS -------------- I, John F. Cogan, Jr., certify that: 1. I have reviewed this report on Form N-CSR of Pioneer Europe Select Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officer and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: May 14, 2004 /s/ John F. Cogan, Jr. John F. Cogan, Jr. President CERTIFICATIONS -------------- I, Vincent Nave, certify that: 1. I have reviewed this report on Form N-CSR of Pioneer Europe Select Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officer and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: May 14, 2004 /s/ Vincent Nave Vincent Nave Treasurer SECTION 906 CERTIFICATION Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Pioneer Europe Select Fund (the "Fund"), hereby certifies, to the best of his knowledge, that the Fund's Report on Form N-CSR for the period ended December 31, 2003 (the "Report") fully complies with the requirements of Section 13 (a) or 15 (d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: May 14, 2004 /s/ John F. Cogan, Jr. John F. Cogan, Jr. President This certification is being furnished solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Report or a separate disclosure document. A signed original of this written statement required by section 906 has been provided to the Fund and will be retained by the Fund and furnished to the SEC or its staff upon request. SECTION 906 CERTIFICATION Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Pioneer Europe Select Fund (the "Fund"), hereby certifies, to the best of his knowledge, that the Fund's Report on Form N-CSR for the period ended December 31, 2003 (the "Report") fully complies with the requirements of Section 13 (a) or 15 (d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: May 14, 2004 /s/ Vincent Nave Vincent Nave Treasurer This certification is being furnished solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Report or a separate disclosure document. A signed original of this written statement required by section 906 has been provided to the Fund and will be retained by the Fund and furnished to the SEC or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----