-----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, I9gjAy7HxQnE31/4ZONMYeD5tYIvPXExCsNVTVGeDqqYbrOLTSA9987FEOndqpFV gXoxjAliHRmlyFD5UU+BwA== 0000276776-08-000053.txt : 20081029 0000276776-08-000053.hdr.sgml : 20081029 20081029123059 ACCESSION NUMBER: 0000276776-08-000053 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080831 FILED AS OF DATE: 20081029 DATE AS OF CHANGE: 20081029 EFFECTIVENESS DATE: 20081029 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PIONEER SERIES TRUST IX CENTRAL INDEX KEY: 0000866707 IRS NUMBER: 043098861 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06151 FILM NUMBER: 081147045 BUSINESS ADDRESS: STREET 1: 60 STATE ST -13TH FL CITY: BOSTON STATE: MA ZIP: 02109-1820 BUSINESS PHONE: 6174224947 MAIL ADDRESS: STREET 1: 60 STATE ST STREET 2: 13TH FLOOR CITY: BOSTON STATE: MA ZIP: 02109-1820 FORMER COMPANY: FORMER CONFORMED NAME: PIONEER EUROPE SELECT EQUITY FUND DATE OF NAME CHANGE: 20050627 FORMER COMPANY: FORMER CONFORMED NAME: PIONEER EUROPE FUND DATE OF NAME CHANGE: 19920703 0000866707 S000003949 Pioneer Europe Select Equity Fund C000011070 Pioneer Europe Select Equity Fund: Class Y PEYSX C000011071 Pioneer Europe Select Equity Fund: Class A PERAX C000011072 Pioneer Europe Select Equity Fund: Class B PERBX C000011073 Pioneer Europe Select Equity Fund: Class C PERCX N-CSR 1 ncsr.txt OMB APPROVAL OMB Number: 3235-0570 Expires: August 31, 2010 Estimated average burden hours per response.....18.9 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 811-06151 Pioneer Europe Select Equity 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, 2007 through August 31, 2008 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 GRAPHIC HERE] Pioneer Europe Select Equity Fund - -------------------------------------------------------------------------------- Annual Report | August 31, 2008 - -------------------------------------------------------------------------------- Ticker Symbols: Class A PERAX Class B PERBX Class C PERCX Class Y PEYSX [LOGO] PIONEER Investments(R) visit us: pioneerinvestments.com Table of Contents Letter to Shareowners 2 Portfolio Management Discussion 4 Portfolio Summary 8 Prices and Distributions 9 Performance Update 10 Comparing Ongoing Fund Expenses 14 Schedule of Investments 16 Financial Statements 20 Notes to Financial Statements 32 Report of Independent Registered Public Accounting Firm 39 Approval of Investment Advisory Agreement 43 Trustees, Officers and Service Providers 47
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 1 President's Letter Dear Shareowner, Stock and bond markets around the globe this year have experienced one of their most tumultuous periods in history. Investors have witnessed volatility of a magnitude that many have never before seen. Distance often provides the best vantage point for perspective. Still, we believe that the benefits of basic investment principles that have stood the test of time -- even in the midst of market turmoil -- cannot be underestimated. First, invest for the long term. The founder of Pioneer Investments, Philip L. Carret, began his investment career during the 1920's. One lesson he learned is that while great prosperity affords an advantageous time for selling stocks, extreme business slumps can create opportunities for purchase. Indeed, many of our portfolio managers, who follow the value-conscious investing approach of our founder, are looking at recent market conditions as an opportunity to buy companies whose shares have been unjustifiably beaten down by indiscriminate selling, but that nonetheless have strong prospects over time. While investors may be facing a sustained market downturn, we continue to believe that patience, along with staying invested in the market, are important considerations for long-term investors. A second principle is to stay diversified across different types of investments. The global scope of the current market weakness poses challenges for this basic investment axiom. But the turbulence makes now a good time to reassess your portfolio and make sure that your investments continue to meet your needs. We believe you should work closely with your financial advisor to find the mix of stocks, bonds and money market assets that is best aligned to your particular risk tolerance and investment objective. As the investment markets sort through the continuing crisis in the financial industry, we are staying focused on the fundamentals and risk management. With more than 80 years of experience behind us, we have learned how to navigate turbulent markets. At Pioneer Investments, risk management has always been a critical part of our culture -- not just during periods of extraordinary volatility. Our investment process is based on fundamental research, quantitative analysis and active portfolio management. This three-pillared process is supported by an integrated team approach and results in the careful balance of risk and reward that we apply to each of our portfolios. While we 2 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 see potential chances for making money in many corners of the market, it takes research and experience to separate solid investment opportunities from speculation. We invite you to learn more about Pioneer and our time-tested approach to investing by consulting with your financial advisor or visiting us online at www.pioneerinvestments.com. Thank you for investing with Pioneer. Sincerely, /s/ Daniel K. Kingsbury Daniel K. Kingsbury President and CEO Pioneer Investment Management USA, 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. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 3 Portfolio Management Discussion | 8/31/08 Widening expectations of a deceleration in growth, both in Europe and globally, pulled down equity prices throughout Europe over the 12 months ending August 31, 2008. The losses incurred by U.S. investors from investing in European stocks, however, were partially buffered by the effects of the strengthening euro against the U.S. dollar. In the following discussion, Andrew Arbuthnott reviews the factors that affected the performance of Pioneer Europe Select Equity Fund during the 12 months ending August 31, 2008. Mr. Arbuthnott, head of the Core European Equities Group of Pioneer Investments in Dublin, Ireland, is a member of the team responsible for the Fund's day-to-day management. Q How did Pioneer Europe Select Equity Fund perform during the 12 months ending August 31, 2008? A Pioneer Europe Select Equity Fund's Class A Shares returned -26.34% at net asset value over the period, while its benchmark, the MSCI Europe Index, declined 14.03%. The average return of the 108 funds in Lipper's European Region Funds category was -17.13% over the same period. Q What was the investment environment like during the 12 months? A Stocks throughout Europe performed very poorly for the period as economic growth on the Continent slowed noticeably and equity analysts steadily lowered their estimates of corporate profit growth for 2009 as well as the remainder of 2008. The most dominant influence tugging on equity values was the growing credit crisis that restricted lending activity. While the credit crisis started with the weakening in housing and in mortgages in the United States, it spread to affect capital markets throughout the world, including in Europe. The Continent's principal currency -- the euro -- gained 8% in value relative to the U.S. dollar over the 12 months, even after retreating somewhat in the final month of the fiscal year. The strong euro helped U.S. equity investors absorb some of the losses in stock values in Europe. The MSCI Europe Index lost more than 20% in local currencies, but about 14% after the effects of currency changes were included. However, the strong currency added to the slowing influences on the European economy by handicapping the ability of European corporations to compete in global markets on the basis of price. Compounding the problems related to this decelerating growth, the prices of oil, natural gas and other commodities rose significantly, putting pressure on the profits and operating margins of many industries and undermining growth in consumer spending. In this environment, inflation increased, with the rate of growth of the consumer price index (CPI) in Europe doubling from 2% to 4% during the 12-month period. As a consequence, the European Central Bank, whose 4 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 central charter is to control inflationary pressures, increased short-term interest rates, further tightening the supply of available credit. Markets such as those in Spain, the United Kingdom, Ireland and some Scandinavian countries, which had shown the greatest growth before 2007, were among those that endured the greatest relative weakening during the period. In contrast, slower-growth markets, such as those in Germany, France and Italy, experienced less deceleration in growth. In this environment, stock averages in all industry groups generated negative returns for the 12 months. The industries that showed the greatest relative strength, despite declines in average stock values, were software and technology services, utilities, materials, energy, food, beverage and tobacco and health care. The industries that tended to produce the poorest returns, on a relative basis, were the retail, banking, diversified financials, semiconductor, real estate and technology hardware groups. Most major financial institutions produced particularly weak results because of their exposure to the credit crisis, which forced the government in the United Kingdom to take over one home lending company. Q What types of investments most influenced the Fund's relative performance over the 12 months ending August 31, 2008? A The most serious drag on Fund results, contributing to the underperformance relative to the MSCI Europe Index, was the overweighting of consumer discretionary stocks, especially consumer durables, early in the fiscal year. In particular, the Fund's investments in two homebuilding companies in the United Kingdom -- Persimmon and Taylor Wimpey -- proved to be major detractors from performance before the Fund liquidated the positions in both companies. The Fund's investments in two automotive-related companies also detracted from performance during the period. Both Daimler, the German car company, and Michelin, the French tire company, were hit at the same time by slowing demand for their products and rising raw materials prices. The Fund sold both positions. Investments in the weak-performing financials sector also hurt relative returns. Among the financials stocks that underperformed were Royal Bank of Scotland, which was recapitalized during the year, and Dexia, a French/Belgian institution whose diversified operations include a bond insurer with exposure to the United States. In contrast, BNP Paribas, the French institution, performed very well during the period as it worked through its internal credit-related problems. Also holding back performance was the Fund's position in CRH, the Ireland-based global building materials company that was hurt by slowing construction activity arising out of the decline in housing activity. In a challenging year, several holdings did perform well. Fresenius, the German health services company, performed well based on the consistent demand for its dialysis products and services for the treatment of kidney Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 5 patients throughout the globe. TNT, the Dutch based transportation services companies, appreciated in value. Its operations include the postal service in the Netherlands as well as an express package delivery service. Parts of TNT's stock gains were related to reports that its delivery service might be sought by others in the industry. Also helping results were the Fund's underweighted positions in two weak-performing industries: retailing and insurance. Q What changes were made in the Fund's portfolio during the 12 months? A We substantially reduced the Fund's exposure to consumer discretionary stocks, especially in durable goods, where we eliminated investments in British homebuilders Taylor Wimpey and Persimmon, as well as auto-related investments in Daimler, Michelin and Volvo, the Swedish truck manufacturer. We also sold the Fund's investment in BSkyB, the British-based pay-for-view broadcasting company because of concerns about its vulnerability as consumers feel the pressures from a slowing economy and rising price pressures. At the same time, the Fund added investments in companies that we believed had more stable earnings growth prospects, including defense contractors BAE Systems of the United Kingdom and Thales Group of France. Other companies that the Fund added included: Technip, the French oil field services company; Reed Elsevier of the Netherlands, a publisher of materials for professional audiences, including ones in the scientific and medical fields; and Bayer, the German pharmaceutical corporation that we believed had a strong pipeline of potential new products in development. Q What is your investment outlook? A While challenges remain in Europe, we think some potentially interesting values exist in equity markets, as evidenced by continued merger-and- acquisition and private equity activities. Any combination of several potential catalysts could lead investors to recognize the existing values in European stocks. These catalysts could include: easing of inflationary pressures; a stabilization of the housing market in the United States; or an upswing in merger-and-acquisition activity. If inflationary pressures in Europe begin to recede, the European Central Bank may become more accommodative to growth by lowering short-term interest rates. If that were to occur, we think investors may begin to be attracted to the interesting values we already are seeing in many European stocks, which continue to offer relatively high stock dividend yields. One encouraging sign has been the move by several major European institutions to take advantage of the strength of the euro to make acquisition offers to American corporations. Inbev's proposal to take over Anheuser-Busch and Roche's plan to acquire the remaining shares of Genentech are two 6 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 good examples. Moreover, we think there may be further consolidation in the banking industry, as we have already seen with the planned merger of Commerzbank and Dresdner Bank in Germany. We plan to maintain a relatively concentrated portfolio of companies, typically between 30 and 35 different companies. We think we should be able to find some good opportunities in Europe, especially when investors begin to recognize the values that we think already exist. Please refer to the Schedule of Investments on pages 16-19 for a full listing of fund securities. Investing in foreign and/or emerging markets securities involves certain risks, including risks relating to interest rates, currency exchange rates, economic, and political conditions. The Fund may invest a substantial amount of its assets in issuers located in a limited number of countries and, therefore, is susceptible to adverse economic, political or regulatory developments affecting those countries. The Fund invests in a limited number of securities and, as a result, the Fund's performance may be more volatile than the performance of funds holding more securities. At times, the Fund's investments may represent industries or industry sectors that are interrelated or have common risks, making it more susceptible to any economic, political, or regulatory developments or other risks affecting those industries and sectors. Past performance is no guarantee of future results, and there is no guarantee that market forecasts discussed will be realized. 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. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 7 Portfolio Summary | 8/31/08 Sector Distribution - -------------------------------------------------------------------------------- (As a percentage of equity holdings) [THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Financials 21.4% Industrials 16.6% Health Care 11.8% Energy 10.6% Materials 9.6% Utilities 8.7% Consumer Discretionary 8.6% Telecommunications Services 6.4% Consumer Staples 6.3%
Geographical Distribution - -------------------------------------------------------------------------------- (As a percentage of equity holdings) [THE FOLLOWING DATA WAS REPRESENTED AS A BAR CHART IN THE PRINTED MATERIAL]
United Kingdom 33.9% France 16.4% Germany 14.8% Netherlands 8.7% Switzerland 8.6% Norway 4.9% Spain 3.0% United States 2.4% Finland 2.1% Greece 2.1% Ireland 2.1% Sweden 1.0%
10 Largest Holdings - -------------------------------------------------------------------------------- (As a percentage of equity holdings)* 1. National Grid Plc 6.56% 2. CS Group 5.09 3. BNP Paribas SA 4.73 4. Vodafone Group Plc 4.34 5. TNT NV 4.29 6. Fresenius Medical Care AG 3.78 7. British American Tobacco Plc 3.70 8. Bae Systems Plc 3.60 9. Siemens AG 3.56 10. Roche Holdings AG 3.52
* This list excludes temporary cash investments and derivative instruments. The portfolio is actively managed, and current holdings may be different. The holdings listed should not be considered recommendations to buy or sell any security listed. 8 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 Prices and Distributions | 8/31/08 Net Asset Value Per Share - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Class 8/31/08 8/31/07 - -------------------------------------------------------------------------------- A $ 26.25 $ 43.23 - -------------------------------------------------------------------------------- B $ 23.36 $ 39.18 - -------------------------------------------------------------------------------- C $ 23.11 $ 38.95 - -------------------------------------------------------------------------------- Y $ 27.29 $ 44.64 - --------------------------------------------------------------------------------
Distributions Per Share: 9/1/07-8/31/08 - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- Net Investment Short-Term Long-Term Class Income Capital Gains Capital Gains - -------------------------------------------------------------------------------- A $ 0.4977 $ 0.1214 $ 6.9198 - -------------------------------------------------------------------------------- B $ 0.0936 $ 0.1214 $ 6.9198 - -------------------------------------------------------------------------------- C $ 0.2155 $ 0.1214 $ 6.9198 - -------------------------------------------------------------------------------- Y $ 0.6936 $ 0.1214 $ 6.9198 - --------------------------------------------------------------------------------
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 9 Performance Update | 8/31/08 Class A Shares Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the change in value of a $10,000 investment made in Pioneer Europe Select Equity Fund at public offering price, compared to that of the Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns (As of August 31, 2008) - -------------------------------------------------------------------------------- Net Asset Public Offering Period Value (NAV) Price (POP) - -------------------------------------------------------------------------------- Life-of-Class (12/29/00) 4.94% 4.13% 5 Years 10.50 9.20 1 Year -26.34 -30.58 - --------------------------------------------------------------------------------
Expense Ratio (Per prospectus dated December 31, 2007) - -------------------------------------------------------------------------------- Gross Net - -------------------------------------------------------------------------------- 1.48% 1.48% - --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer Europe Select MSCI Equity Fund Europe Index ----------- ------------ 12/00 9425 10000 7681 8111 8/02 7546 6834 8281 7457 8/04 10646 9218 13258 11700 8/06 16019 14601 18521 17955 8/08 13642 15436
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent month-end performance results. Current performance may be lower or higher than the performance data quoted. The performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. NAV results represent the percent change in net asset value per share. Returns would have been lower had sales charges been reflected. POP returns reflect deduction of maximum 5.75% sales charge. All results are historical and assume the reinvestment of dividends and capital gains. Other share classes are available for which performance and expenses will differ. Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe Select Fund (the predecessor fund) on June 24, 2005 and changed its name to Pioneer Europe Select Equity Fund. Returns prior to June 24, 2005 reflect the performance of the predecessor fund, which has not been restated to reflect any differences in expenses. Performance results reflect any applicable expense waivers in effect during the periods shown. Without such waivers Fund performance would be lower. Waivers may not be in effect for all funds. Certain fee waivers are contractual through a specified period. Otherwise, fee waivers can be rescinded at any time. See the prospectus and financial statements for more information. The net expense ratio reflects contractual expense limitations (to the extent applicable) currently in effect through 1/1/11 for Class A shares. There can be no assurance that Pioneer will extend the expense limitations beyond such time. Please see the prospectus and financial statements for more information. The performance table and graph do not reflect the deduction of fees and taxes that a shareowner would pay on Fund distributions or the redemption of Fund shares. The Morgan Stanley Capital International (MSCI) Europe Index measures the performance of stocks in European developed markets. 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 an index. 10 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 Performance Update | 8/31/08 Class B Shares Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the change in value of a $10,000 investment made in Pioneer Europe Select Equity Fund, compared to that of the Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns (As of August 31, 2008) - -------------------------------------------------------------------------------- If If Period Held Redeemed - -------------------------------------------------------------------------------- Life-of-Class (12/29/00) 3.99% 3.99% 5 Years 9.39 9.39 1 Year -26.98 -29.36 - --------------------------------------------------------------------------------
Expense Ratio (Per prospectus dated December 31, 2007) - -------------------------------------------------------------------------------- Gross Net - -------------------------------------------------------------------------------- 2.50% 2.40% - --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer Europe Select MSCI Equity Fund Europe Index ----------- ------------ 12/00 10000 10000 8130 8111 8/02 7940 6834 8620 7457 8/04 10953 9218 13501 11700 8/06 16156 14601 18488 17955 8/08 13500 15436
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent month-end performance results. Current performance may be lower or higher than the performance data quoted. The performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. "If Held" results represent the percent change in net asset value per share. Returns would have been lower had sales charges been reflected. "If Redeemed" returns reflect the deduction of applicable contingent deferred sales charge (CSDC). Effective December 1, 2004, the period during which a CDSC is applied to withdrawals was shortened to 5 years. The maximum CDSC for class B shares continues to be 4%. For more complete information, please see the prospectus for details. Note: Shares purchased prior to December 1, 2004 remain subject to the CDSC in effect at the time you purchased those shares. For performance information for shares purchased prior to December 1, 2004, please visit www.pioneerinvestments.com/bshares. All results are historical and assume the reinvestment of dividends and capital gains. Other share classes are available for which performance and expenses will differ. Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe Select Fund (the predecessor fund) on June 24, 2005 and changed its name to Pioneer Europe Select Equity Fund. Returns prior to June 24, 2005 reflect the performance of the predecessor fund, which has not been restated to reflect any differences in expenses. Performance results reflect any applicable expense waivers in effect during the periods shown. Without such waivers Fund performance would be lower. Waivers may not be in effect for all funds. Certain fee waivers are contractual through a specified period. Otherwise, fee waivers can be rescinded at any time. See the prospectus and financial statements for more information. The net expense ratio reflects contractual expense limitations (to the extent applicable) currently in effect through 1/1/09 for Class B shares. There can be no assurance that Pioneer will extend the expense limitations beyond such time. Please see the prospectus and financial statements for more information. The performance table and graph do not reflect the deduction of fees and taxes that a shareowner would pay on Fund distributions or the redemption of Fund shares. The Morgan Stanley Capital International (MSCI) Europe Index measures the performance of stocks in European developed markets. 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 an index. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 11 Performance Update | 8/31/08 Class C Shares Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the change in value of a $10,000 investment made in Pioneer Europe Select Equity Fund, compared to that of the Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns (As of August 31, 2008) - -------------------------------------------------------------------------------- If If Period Held Redeemed - -------------------------------------------------------------------------------- Life-of-Class (12/29/00) 4.24% 4.24% 5 Years 9.61 9.61 1 Year -26.95 -26.95 - --------------------------------------------------------------------------------
Expense Ratio (Per prospectus dated December 31, 2007) - -------------------------------------------------------------------------------- Gross Net - -------------------------------------------------------------------------------- 2.29% 2.29% - --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer Europe Select MSCI Equity Fund Europe Index ----------- ------------ 12/00 10000 10000 8140 8111 8/02 7960 6834 8690 7457 8/04 11094 9218 13709 11700 8/06 16415 14601 18822 17955 8/08 13750 15436
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent month-end performance results. Current performance may be lower or higher than the performance data quoted. The performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Class C shares held for less than one year are also subject to a 1% contingent deferred sales charge (CDSC). 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. "If Held" results represent the percent change in net asset value per share. Returns would have been lower had sales charges been reflected. All results are historical and assume the reinvestment of dividends and capital gains. Other share classes are available for which performance and expenses will differ. Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe Select Fund (the predecessor fund) on June 24, 2005 and changed its name to Pioneer Europe Select Equity Fund. Returns prior to June 24, 2005 reflect the performance of the predecessor fund, which has not been restated to reflect any differences in expenses. Performance results reflect any applicable expense waivers in effect during the periods shown. Without such waivers Fund performance would be lower. Waivers may not be in effect for all funds. Certain fee waivers are contractual through a specified period. Otherwise, fee waivers can be rescinded at any time. See the prospectus and financial statements for more information. The net expense ratio reflects contractual expense limitations (to the extent applicable) currently in effect through 1/1/09 for Class C shares. There can be no assurance that Pioneer will extend the expense limitations beyond such time. Please see the prospectus and financial statements for more information. The performance table and graph do not reflect the deduction of fees and taxes that a shareowner would pay on Fund distributions or the redemption of Fund shares. The Morgan Stanley Capital International (MSCI) Europe Index measures the performance of stocks in European developed markets. 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 an index. 12 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 Performance Update | 8/31/08 Class Y Shares Investment Returns - -------------------------------------------------------------------------------- The mountain chart on the right shows the change in value of a $10,000 investment made in Pioneer Europe Select Equity Fund, compared to that of the Morgan Stanley Capital International (MSCI) Europe Index.
Average Annual Total Returns (As of August 31, 2008) - -------------------------------------------------------------------------------- If If Period Held Redeemed - -------------------------------------------------------------------------------- Life-of-Class (12/29/00) 5.17% 5.17% 5 Years 10.87 10.87 1 Year -25.96 -25.96 - --------------------------------------------------------------------------------
Expense Ratio (Per prospectus dated December 31, 2007) - -------------------------------------------------------------------------------- Gross Net - -------------------------------------------------------------------------------- 0.98% 0.98% - --------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A LINE/MTN CHART IN THE PRINTED MATERIAL]
Pioneer Europe Select MSCI Equity Fund Europe Index ----------- ------------ 12/00 10000 10000 8150 8111 8/02 8007 6834 8786 7457 8/04 11295 9218 14085 11700 8/06 17113 14601 19876 17955 8/08 14716 15436
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent month-end performance results. Current performance may be lower or higher than the performance data quoted. The performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Class Y shares are not subject to sales charges and are available for limited groups of eligible investors, including institutional investors. All results are historical and assume the reinvestment of dividends and capital gains. Other share classes are available for which performance and expenses will differ. Pioneer Europe Fund acquired the assets and liabilities of Pioneer Europe Select Fund (the predecessor fund) on June 24, 2005 and changed its name to Pioneer Europe Select Equity Fund. The predecessor fund did not offer Class Y shares. Returns prior to June 24, 2005 are based on the net asset value performance of the predecessor fund's Class A shares, which has not been restated to reflect any differences in expenses, including Rule 12b-1 fees applicable to Class A shares. Performance results reflect any applicable expense waivers in effect during the periods shown. Without such waivers Fund performance would be lower. Waivers may not be in effect for all funds. Certain fee waivers are contractual through a specified period. Otherwise, fee waivers can be rescinded at any time. See the prospectus and financial statements for more information. The performance table and graph do not reflect the deduction of fees and taxes that a shareowner would pay on Fund distributions or the redemption of Fund shares. The Morgan Stanley Capital International (MSCI) Europe Index measures the performance of stocks in European developed markets. 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 an index. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 13 Comparing Ongoing Fund Expenses As a shareowner in the Fund, you incur two types of costs: (1) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses; and (2) transaction costs, including sales charges (loads) on purchase payments. This example is intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 at the beginning of the Fund's latest six-month period and held throughout the six months. Using the Tables - -------------------------------------------------------------------------------- Actual Expenses The first table below provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period as follows: (1) Divide your account value by $1,000 Example: an $8,600 account value [divided by] $1,000 = 8.6 (2) Multiply the result in (1) above by the corresponding share class's number in the third row under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. Expenses Paid on a $1,000 Investment in Pioneer Europe Select Equity Fund Based on actual returns from March 1, 2008 through August 31, 2008.
Share Class A B C Y - --------------------------------------------------------------------------------------- Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 Value on 3/1/08 - --------------------------------------------------------------------------------------- Ending Account $ 856.51 $ 852.84 $ 853.09 $ 858.43 Value on 8/31/08 - --------------------------------------------------------------------------------------- Expenses Paid $ 7.00 $ 11.36 $ 10.81 $ 4.72 During Period* - ---------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.50%, 2.44%, 2.32% and 1.01%, for Class A, Class B, Class C and Class Y shares, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). 14 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 Hypothetical Example for Comparison Purposes The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) that are charged at the time of the transaction. Therefore, the table below is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. Expenses Paid on a $1,000 Investment in Pioneer Europe Select Equity Fund Based on a hypothetical 5% return per year before expenses, reflecting the period from March 1, 2008 through August 31, 2008.
Share Class A B C Y - --------------------------------------------------------------------------------------- Beginning Account $ 1,000.00 $ 1,000.00 $ 1,000.00 $ 1,000.00 Value on 3/1/08 - --------------------------------------------------------------------------------------- Ending Account $ 1,017.60 $ 1,012.87 $ 1,013.47 $ 1,020.06 Value on 9/31/08 - --------------------------------------------------------------------------------------- Expenses Paid $ 7.61 $ 12.35 $ 11.74 $ 5.13 During Period* - ---------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.50%, 2.44%, 2.32% and 1.01%, for Class A, Class B, Class C and Class Y shares, respectively, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 15 Schedule of Investments | 8/31/08
- -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- PREFERRED STOCK -- 1.6% Automobiles & Components -- 1.6% Automobile Manufacturers -- 1.6% 17,456 Porsche AG $ 2,459,841 ------------ Total Automobiles & Components $ 2,459,841 - -------------------------------------------------------------------------------- TOTAL PREFERRED STOCK (Cost $3,209,655) $ 2,459,841 - -------------------------------------------------------------------------------- COMMON STOCKS -- 94.2% Energy -- 10.1% Integrated Oil & Gas -- 8.4% 225,787 BG Group Plc $ 5,003,835 302,112 BP Amoco Plc 2,898,725 88,444 Repsol SA 2,738,013 62,872 Royal Dutch Shell Plc 2,197,084 ------------ $ 12,837,657 - -------------------------------------------------------------------------------- Oil & Gas Equipment & Services -- 1.7% 32,968 Technip $ 2,706,698 ------------ Total Energy $ 15,544,355 - -------------------------------------------------------------------------------- MATERIALS -- 9.2% Construction Materials -- 2.0% 116,786 CRH Plc $ 3,063,673 - -------------------------------------------------------------------------------- Diversified Chemical -- 1.0% 25,349 Akzo Nobel* $ 1,552,665 - -------------------------------------------------------------------------------- Diversified Metals & Mining -- 2.7% 42,913 Rio Tinto Plc $ 4,065,970 - -------------------------------------------------------------------------------- Fertilizers & Agricultural Chemicals -- 3.5% 21,271 K+S AG* $ 2,576,716 45,105 Yara International ASA 2,788,209 ------------ $ 5,364,925 ------------ Total Materials $ 14,047,233 - -------------------------------------------------------------------------------- CAPITAL GOODS -- 9.9% Aerospace & Defense -- 6.5% 604,403 Bae Systems Plc $ 5,286,275 83,151 Thales SA 4,694,210 ------------ $ 9,980,485 - -------------------------------------------------------------------------------- Industrial Conglomerates -- 3.4% 48,069 Siemens AG $ 5,228,437 ------------ Total Capital Goods $ 15,208,922 - --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 16 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
- -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- TRANSPORTATION -- 6.0% Air Freight & Couriers -- 6.0% 121,860 Deutsche Post AG $ 2,850,266 169,380 TNT NV 6,297,970 ------------ $ 9,148,236 ------------ Total Transportation $ 9,148,236 - -------------------------------------------------------------------------------- MEDIA -- 6.7% Broadcasting -- 2.1% 113,350 Eutelsat Communications SA $ 3,143,807 Publishing -- 4.6% 296,093 Elsevier NV $ 4,951,588 274,817 Informa Plc 2,127,535 ------------ $ 7,079,123 ------------ Total Media $ 10,222,930 - -------------------------------------------------------------------------------- FOOD & DRUG RETAILING -- 2.6% Food Retail -- 2.6% 569,866 Tesco Plc $ 3,950,274 ------------ Total Food & Drug Retailing $ 3,950,274 - -------------------------------------------------------------------------------- FOOD, BEVERAGE & TOBACCO -- 3.5% Tobacco -- 3.5% 160,174 British American Tobacco Plc $ 5,428,353 ------------ Total Food, Beverage & Tobacco $ 5,428,353 - -------------------------------------------------------------------------------- HEALTH CARE EQUIPMENT & SERVICES -- 3.6% Health Care Services -- 3.6% 103,403 Fresenius Medical Care AG $ 5,555,083 ------------ Total Health Care Equipment & Services $ 5,555,083 - -------------------------------------------------------------------------------- PHARMACEUTICALS & BIOTECHNOLOGY -- 7.7% Pharmaceuticals -- 7.7% 38,460 Bayer AG* $ 3,046,549 166,529 Bristol-Myers Squibb Co. 3,553,729 30,690 Roche Holdings AG 5,172,538 ------------ $ 11,772,816 ------------ Total Pharmaceuticals & Biotechnology $ 11,772,816 - -------------------------------------------------------------------------------- BANKS -- 15.6% Diversified Banks -- 15.6% 77,079 BNP Paribas SA* $ 6,954,640 146,171 Credit Agricole SA* 3,115,016 381,273 Dnb Nor Asa* 4,409,703 70,253 National Bank of Greece* 3,127,599 655,885 Royal Bank of Scotland Group Plc 2,815,601 36,155 Societe Generale 3,507,597 ------------ $ 23,930,156 ------------ Total Banks $ 23,930,156 - --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 17 Schedule of Investments | 8/31/08 (continued)
- -------------------------------------------------------------------------------- Shares Value - -------------------------------------------------------------------------------- DIVERSIFIED FINANCIALS -- 4.9% Diversified Capital Markets -- 4.9% 160,839 CS Group $ 7,475,665 ------------ Total Diversified Financials $ 7,475,665 - -------------------------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 6.1% Integrated Telecommunication Services -- 2.0% 93,348 Tele2 AB (B shares) $ 1,434,558 63,924 Telefonica SA 1,579,268 ------------ $ 3,013,826 - -------------------------------------------------------------------------------- Wireless Telecommunication Services -- 4.1% 2,488,573 Vodafone Group Plc $ 6,369,327 ------------ Total Telecommunication Services $ 9,383,153 - -------------------------------------------------------------------------------- UTILITIES -- 8.3% Electric Utilities -- 2.0% 76,786 Fortum Corp.* $ 3,141,420 - -------------------------------------------------------------------------------- Multi-Utilities -- 6.3% 741,904 National Grid Plc $ 9,631,009 ------------ Total Utilities $ 12,772,429 - -------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $152,185,697) $144,439,605 - -------------------------------------------------------------------------------- RIGHTS/WARRANTS -- 0.0% Energy -- 0.0% Integrated Oil & Gas -- 0.1% 60,418 Royal Dutch Shell Rights, Expires 9/10/08* $ 0 ------------ Total Energy $ 0 - -------------------------------------------------------------------------------- TOTAL RIGHTS/WARRANTS (Cost $0) $ 0 - -------------------------------------------------------------------------------- TOTAL INVESTMENT IN SECURITIES -- 95.8% (Cost $155,395,352)(a)(b) $146,899,446 - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES -- 4.2% $ 6,439,818 - -------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $153,339,264 - --------------------------------------------------------------------------------
* Non-income producing security. (a) At August 31, 2008, the net unrealized loss on investments based on cost for federal income tax purposes of $155,667,418 was as follows:
Aggregate gross unrealized gain for all investments in which there is an excess of value over tax cost $ 6,608,694 Aggregate gross unrealized loss for all investments in which there is an excess of tax cost over value (15,376,666) ----------- Net unrealized loss $(8,767,972) -----------
The accompanying notes are an integral part of these financial statements. 18 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 (b) Distributions of investment by country of issue, as a percentage of total investment in securities (excluding temporary cash investments), is as follows:
United Kingdom 33.9% France 16.4 Germany 14.8 Netherlands 8.7 Switzerland 8.6 Norway 4.9 Spain 3.0 United States 2.4 Finland 2.1 Greece 2.1 Ireland 2.1 Sweden 1.0 ----- 100.0% -----
Purchases and sales of securities (excluding temporary cash investments) for the year ended August 31, 2008 aggregated $127,852,938 and $189,539,979, respectively. The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 19 Statement of Assets and Liabilities | 8/31/08
ASSETS: Investment in securities (cost $155,395,352) $ 146,899,446 Cash 3,763,259 Receivables -- Investment securities sold 3,670,283 Fund shares sold 120,423 Dividends, interest and foreign taxes withheld 735,215 Due from Pioneer Investment Management, Inc. 16,060 Other 16,572 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets $ 155,221,258 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES: Payables -- Investment securities purchased $ 1,556,268 Fund shares repurchased 170,669 Due to affiliates 75,478 Accrued expenses 79,579 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities $ 1,881,994 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS: Paid-in capital $ 193,411,897 Undistributed net investment income 3,204,953 Accumulated net realized loss on investments and foreign currency transactions (34,764,462) Net unrealized loss on investments (8,495,906) Net unrealized loss on forward foreign currency contracts and other assets and liabilities denominated in foreign currencies (17,218) - ------------------------------------------------------------------------------------------------------------------------------------ Total net assets $ 153,339,264 ==================================================================================================================================== NET ASSET VALUE PER SHARE: (No par value, unlimited number of shares authorized) Class A (based on $99,645,343/3,796,723 shares) $ 26.25 Class B (based on $11,811,813/505,687 shares) $ 23.36 Class C (based on $9,768,540/422,789 shares) $ 23.11 Class Y (based on $32,113,568/1,176,964 shares) $ 27.29 MAXIMUM OFFERING PRICE: Class A ($26.25 - 94.25%) $ 27.85 ====================================================================================================================================
The accompanying notes are an integral part of these financial statements. 20 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 Statement of Operations For the Year Ended 8/31/08
INVESTMENT INCOME: Dividends (net of foreign taxes withheld of $928,441) $ 6,989,834 Interest 89,609 - ------------------------------------------------------------------------------------------------------------- Total investment income $ 7,079,443 - ------------------------------------------------------------------------------------------------------------- EXPENSES: Management fees $ 1,837,389 Transfer agent fees and expenses Class A 480,285 Class B 126,618 Class C 45,557 Class Y 534 Distribution fees Class A 338,023 Class B 187,066 Class C 140,228 Administrative fees 48,637 Custodian fees 73,175 Registration fees 77,116 Professional fees 56,520 Printing expense 40,355 Fees and expenses of nonaffiliated trustees 1,112 Miscellaneous 41,989 - ------------------------------------------------------------------------------------------------------------- Total expenses $ 3,494,604 Less management fees waived and expenses reimbursed by Pioneer Investment Management, Inc. (147,326) Less fees paid indirectly (18,776) - ------------------------------------------------------------------------------------------------------------- Net expenses $ 3,328,502 ============================================================================================================= Net investment income $ 3,750,941 ============================================================================================================= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: Net realized gain (loss) on: Investments $(24,669,989) Forward foreign currency contracts and other assets and liabilities denominated in foreign currencies 40,346 $(24,629,643) - ------------------------------------------------------------------------------------------------------------- Change in net unrealized loss on: Investments $(41,557,935) Forward foreign currency contracts and other assets and liabilities denominated in foreign currencies (31,050) $(41,588,985) - ------------------------------------------------------------------------------------------------------------- Net loss on investments and foreign currency transactions $(66,218,628) - ------------------------------------------------------------------------------------------------------------- Net decrease in net assets resulting from operations $(62,467,687) - -------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 21 Statement of Changes in Net Assets
Year Ended Year Ended 8/31/08 8/31/07 - ------------------------------------------------------------------------------------------------------------------------------------ FROM OPERATIONS: Net investment income $ 3,750,941 $ 3,424,330 Net realized gain (loss) on investments and foreign currency transactions (24,629,643) 42,573,195 Change in net unrealized loss on investments and foreign currency transactions (41,588,985) (12,919,335) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ (62,467,687) $ 33,078,190 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREOWNERS: Net investment income: Class A ($0.50 and $0.49 per share, respectively) $ (2,352,303) $ (2,128,405) Class B ($0.09 and $0.03 per share, respectively) (65,718) (22,431) Class C ($0.22 and $0.21 per share, respectively) (111,855) (104,920) Class R ($0.00 and $0.25 per share, respectively) -- (746) Class Y ($0.69 and $0.70 per share, respectively) (949,445) (71,612) Net realized gain: Class A ($7.04 and $0.00 per share, respectively) (28,830,631) -- Class B ($7.04 and $0.00 per share, respectively) (4,332,748) -- Class C ($7.04 and $0.00 per share, respectively) (3,101,810) -- Class Y ($7.04 and $0.00 per share, respectively) (8,220,577) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions to shareowners $ (47,965,087) $ (2,328,114) - ------------------------------------------------------------------------------------------------------------------------------------ FROM FUND SHARE TRANSACTIONS: Net proceeds from sale of shares $ 22,729,186 $ 116,343,158 Reinvestment of distributions 42,197,851 2,024,983 Cost of shares repurchased (79,556,011) (76,555,407) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from Fund share transactions $ (14,628,974) $ 41,812,734 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets $(125,061,748) $ 72,562,810 NET ASSETS: Beginning of year 278,401,012 205,838,202 - ------------------------------------------------------------------------------------------------------------------------------------ End of year $ 153,339,264 $ 278,401,012 - ------------------------------------------------------------------------------------------------------------------------------------ Undistributed net investment income $ 3,204,953 $ 2,893,500 - ------------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 22 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
'08 Shares '08 Amount '07 Shares '07 Amount - ------------------------------------------------------------------------------------------------------------------------------------ Class A Shares sold 367,746 $ 12,873,605 1,253,028 $ 52,767,998 Reinvestment of distributions 749,740 26,877,809 45,383 1,888,910 Less shares repurchased (1,561,874) (51,156,839) (1,168,617) (49,777,643) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) (444,388) $(11,405,425) 129,794 $ 4,879,265 ==================================================================================================================================== Class B Shares sold 67,841 $ 2,156,183 271,524 $ 10,332,496 Reinvestment of distributions 129,194 4,113,825 587 22,308 Less shares repurchased (372,051) (11,280,574) (495,006) (18,997,460) - ------------------------------------------------------------------------------------------------------------------------------------ Net decrease (175,016) $ (5,010,566) (222,895) $ (8,642,656) ==================================================================================================================================== Class C Shares sold 59,780 $ 1,877,498 181,764 $ 6,905,173 Reinvestment of distributions 87,221 2,755,687 2,420 91,199 Less shares repurchased (189,443) (5,611,457) (165,948) (6,470,838) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) (42,442) $ (978,272) 18,236 $ 525,534 ==================================================================================================================================== Class R* Shares sold 522 $ 20,824 Reinvestment of distributions 18 746 Less shares repurchased (4,038) (168,760) - ------------------------------------------------------------------------------------------------------------------------------------ Net decrease (3,498) $ (147,190) ==================================================================================================================================== Class Y Shares sold 153,787 $ 5,821,900 1,051,106 $ 46,316,667 Reinvestment of distributions 226,900 8,450,530 509 21,820 Less shares repurchased (329,829) (11,507,141) (26,042) (1,140,706) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase 50,858 $ 2,765,289 1,025,573 $ 45,197,781 ====================================================================================================================================
* Class R shares were liquidated on January 31, 2007. The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 23 Financial Highlights
Year Year Year Year Year Ended Ended Ended Ended Ended 8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a) - ------------------------------------------------------------------------------------------------------------------------------------ Class A Net asset value, beginning of period $ 43.23 $ 37.83 $ 31.54 $ 27.25 $ 21.41 - ------------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from investment operations: Net investment income $ 0.60 $ 0.58 $ 0.50 $ 0.11 $ 0.20 Net realized and unrealized gain (loss) on investments and foreign currency transactions (10.04) 5.31 6.03 5.09 5.89 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) from investment operations $ (9.44) $ 5.89 $ 6.53 $ 5.20 $ 6.09 Distributions to shareowners: Net investment income $ (0.50) $ (0.49) $ (0.24) $ (0.19) $ (0.25) Net realized gain (7.04) -- -- (0.72) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions $ (7.54) $ (0.49) $ (0.24) $ (0.91) $ (0.25) - ------------------------------------------------------------------------------------------------------------------------------------ Redemption fee $ -- $ -- $ 0.00(b) $ 0.00(b) $ -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net asset value $ (16.98) $ 5.40 $ 6.29 $ 4.29 $ 5.84 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 26.25 $ 43.23 $ 37.83 $ 31.54 $ 27.25 ==================================================================================================================================== Total return* (26.34)% 15.61% 20.83% 24.53% 28.56% Ratio of net expenses to average net assets+ 1.51% 1.48% 1.66% 1.71% 1.25% Ratio of net investment income to average net assets+ 1.77% 1.35% 1.47% 0.72% 1.58% Portfolio turnover rate 60% 62% 43% 149% 48% Net assets, end of period (in thousands) $ 99,645 $ 183,333 $ 155,550 $ 129,215 $ 3,108 - ------------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 24 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Year Year Year Year Year Ended Ended Ended Ended Ended 8/31/08 8/31/07 8/31/06 8/31/05(a) 8/31/04(a) - ----------------------------------------------------------------------------------------------------------------------------------- Ratios with no waiver of fees and assumption of expenses by PIM and no reduction for fees paid indirectly: Net expenses 1.58% 1.48% 1.66% 2.21% 8.30% Net investment income (loss) 1.70% 1.35% 1.47% 0.22% (5.47)% Ratios with waiver of fees and assumption of expenses by PIM and reduction for fees paid indirectly: Net expenses 1.50% 1.47% 1.66% 1.69% 1.25% Net investment income 1.78% 1.36% 1.47% 0.74% 1.58% - ------------------------------------------------------------------------------------------------------------------------------------
(a) Historical per-share amounts prior to June 24, 2005 have been adjusted to reflect the conversion ratios utilized for the merger of the Europe Fund and Europe Select Fund. (b) Amount rounds to less than one cent per share. * 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. + Ratios with no reduction for fees paid indirectly. The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 25 Financial Highlights (continued)
Year Year Year Year Year Ended Ended Ended Ended Ended 8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a) - ------------------------------------------------------------------------------------------------------------------------------------ Class B Net asset value, beginning of period $ 39.18 $ 34.26 $ 28.63 $ 24.85 $ 19.65 - ------------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from investment operations: Net investment income (loss) $ 0.39 $ 0.22 $ 0.24 $ (0.03) $ (0.02) Net realized and unrealized gain (loss) on investments and foreign currency transactions (9.08) 4.73 5.39 4.62 5.33 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) from investment operations $ (8.69) $ 4.95 $ 5.63 $ 4.59 $ 5.31 Distributions to shareowners: Net investment income $ (0.09) $ (0.03) $ -- $ (0.09) $ (0.11) Net realized gain (7.04) -- -- (0.72) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions $ (7.13) $ (0.03) $ -- $ (0.81) $ (0.11) - ------------------------------------------------------------------------------------------------------------------------------------ Redemption fee $ -- $ -- $ 0.00(b) $ 0.00(b) $ -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net asset value $ (15.82) $ 4.92 $ 5.63 $ 3.78 $ 5.20 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 23.36 $ 39.18 $ 34.26 $ 28.63 $ 24.85 ==================================================================================================================================== Total return* (26.98)% 14.44% 19.66% 23.19% 27.07% Ratio of net expenses to average net assets+ 2.46% 2.50% 2.65% 2.69% 2.17% Ratio of net investment income (loss) to average net assets+ 0.75% 0.23% 0.36% (0.27)% 0.65% Portfolio turnover rate 60% 62% 43% 149% 48% Net assets, end of period (in thousands) $ 11,812 $ 26,673 $ 30,960 $ 42,249 $ 1,505
The accompanying notes are an integral part of these financial statements. 26 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Year Year Year Year Year Ended Ended Ended Ended Ended 8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a) - ------------------------------------------------------------------------------------------------------------------------------------ Ratios with no waiver of fees and assumption of expenses by PIM and no reduction for fees paid indirectly: Net expenses 2.68% 2.50% 2.74% 3.32% 9.20% Net investment income (loss) 0.53% 0.23% 0.27% (0.90)% (6.38)% Ratios with waiver of fees and assumption of expenses by PIM and reduction for fees paid indirectly: Net expenses 2.44% 2.47% 2.65% 2.65% 2.17% Net investment income (loss) 0.77% 0.26% 0.36% (0.23)% 0.65% - ------------------------------------------------------------------------------------------------------------------------------------
(a) Historical per-share amounts prior to June 24, 2005 have been adjusted to reflect the conversion ratios utilized for the merger of the Europe Fund and Europe Select Fund. (b) Amount rounds to less than one cent per share. * 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. + Ratios with no reduction for fees paid indirectly. The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 27 Financial Highlights (continued)
Year Year Year Year Year Ended Ended Ended Ended Ended 8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a) - ------------------------------------------------------------------------------------------------------------------------------------ Class C Net asset value, beginning of period $ 38.95 $ 34.16 $ 28.60 $ 24.81 $ 19.63 - ------------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from investment operations: Net investment income $ 0.32 $ 0.22 $ 0.19 $ 0.01 $ 0.09 Net realized and unrealized gain (loss) on investments and foreign currency transactions (8.90) 4.78 5.44 4.61 5.34 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) from investment operations $ (8.58) $ 5.00 $ 5.63 $ 4.62 $ 5.43 Distributions to shareowners: Net investment income $ (0.22) $ (0.21) $ (0.07) $ (0.13) $ (0.25) Net realized gain (7.04) -- -- (0.72) -- - ------------------------------------------------------------------------------------------------------------------------------------ Total distributions $ (7.26) $ (0.21) $ (0.07) $ (0.85) $ (0.25) - ------------------------------------------------------------------------------------------------------------------------------------ Redemption fee $ -- $ -- $ 0.00(b) $ 0.02 $ -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net asset value $ (15.84) $ 4.79 $ 5.56 $ 3.79 $ 5.18 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 23.11 $ 38.95 $ 34.16 $ 28.60 $ 24.81 ==================================================================================================================================== Total return* (26.95)% 14.67% 19.73% 23.53% 27.67% Ratio of net expenses to average net assets+ 2.33% 2.29% 2.59% 2.41% 1.72% Ratio of net investment income to average net assets+ 0.97% 0.60% 0.52% 0.35% 1.14% Portfolio turnover rate 60% 62% 43% 149% 48% Net assets, end of period (in thousands) $ 9,769 $ 18,120 $ 15,270 $ 14,661 $ 1,557
The accompanying notes are an integral part of these financial statements. 28 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Year Year Year Year Year Ended Ended Ended Ended Ended 8/31/08 8/31/07 8/31/06 8/31/05 (a) 8/31/04 (a) - ------------------------------------------------------------------------------------------------------------------------------------ Ratios with no waiver of fees and assumption of expenses by PIM and no reduction for fees paid indirectly: Net expenses 2.33% 2.29% 2.59% 3.72% 8.75% Net investment income (loss) 0.97% 0.60% 0.52% (0.96)% (5.89)% Ratios with waiver of fees and assumption of expenses by PIM and reduction for fees paid indirectly: Net expenses 2.32% 2.28% 2.59% 2.39% 1.72% Net investment income 0.98% 0.61% 0.52% 0.37% 1.14% - ------------------------------------------------------------------------------------------------------------------------------------
(a) Historical per-share amounts prior to June 24, 2005 have been adjusted to reflect the conversion ratios utilized for the merger of the Europe Fund and Europe Select Fund. (b) Amount rounds to less than one cent per share. * 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. + Ratios with no reduction for fees paid indirectly. The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 29 Financial Highlights (continued)
Year Year Year 6/24/05 (a) Ended Ended Ended to 8/31/08 8/31/07 8/31/06 8/31/05 - ------------------------------------------------------------------------------------------------------------------------------------ Class Y Net asset value, beginning of period $ 44.64 $ 39.06 $ 32.54 $ 30.59 - ------------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from investment operations: Net investment income $ 0.66 $ 0.89 $ 0.89 $ 0.07 Net realized and unrealized gain (loss) on investments and foreign currency transactions (10.28) 5.39 6.04 1.88 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) from investment operations $ (9.62) $ 6.28 $ 6.93 $ 1.95 Distributions to shareowners: Net investment income $ (0.69) $ (0.70) $ (0.41) $ -- Net realized gain (7.04) -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net asset value $ (17.35) $ 5.58 $ 6.52 $ 1.95 - ------------------------------------------------------------------------------------------------------------------------------------ Net asset value, end of period $ 27.29 $ 44.64 $ 39.06 $ 32.54 ==================================================================================================================================== Total return* (25.96)% 16.14% 21.50% 6.36%(b) Ratio of net expenses to average net assets+ 1.01% 0.98% 1.10% 1.18%** Ratio of net investment income to average net assets+ 2.27% 2.73% 2.00% 1.05%** Portfolio turnover rate 60% 62% 43% 149%(b) Net assets, end of period (in thousands) $ 32,114 $ 50,275 $ 3,927 $ 3,495
The accompanying notes are an integral part of these financial statements. 30 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Year Year Year 6/24/05 (a) Ended Ended Ended to 8/31/08 8/31/07 8/31/06 8/31/05 - ------------------------------------------------------------------------------------------------------------------------------------ Ratios with no waiver of fees and assumption of expenses by PIM and no reduction for fees paid indirectly: Net expenses 1.01% 0.98% 1.10% 1.18%** Net investment income 2.27% 2.73% 2.00% 1.05%** Ratios with waiver of fees and assumption of expenses by PIM and reduction for fees paid indirectly: Net expenses 1.01% 0.98% 1.10% 1.18%** Net investment income 2.27% 2.73% 2.00% 1.05%** - ------------------------------------------------------------------------------------------------------------------------------------
(a) Class Y shares were first publicly offered on June 24, 2005. (b) Not annualized. * Assumes initial investment at net asset value at the beginning of each period, reinvestment of all distributions and the complete redemption of the investment at net asset value at the end of each period. ** Annualized. + Ratios with no reduction for fees paid indirectly. The accompanying notes are an integral part of these financial statements. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 31 Notes to Financial Statements | 8/31/08 1. Organization and Significant Accounting Policies Pioneer Europe Select Equity Fund (the Fund) is the sole portfolio comprising Pioneer Series Trust IX, a Delaware statutory trust registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The investment objective of the Fund is long-term growth of capital. The Fund offers four classes of shares -- Class A, Class B, Class C, and Class Y shares. Class A, Class B and Class C Shares were first publicly offered on December 29, 2000. Class Y shares were first publicly offered on June 24, 2005. Each class of shares represents 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. There is no distribution plan for Class Y shares. The Fund's financial statements have been prepared in conformity with U.S. generally accepted accounting principles that require the management of the Fund to, among other things, make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 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 the Fund invests a significant portion of its investments in any one European region. The Fund's prospectuses (unaudited) contain information regarding the Fund's principal risks. Please refer to those documents when considering the Fund's principal risks. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements, which are consistent with those policies generally accepted in the investment company industry: A. Security Valuation Security transactions are recorded as of trade date. The net asset value of the Fund is computed once daily, on each day the New York Stock Exchange (NYSE) is open, as of the close of regular trading on the NYSE. 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 32 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 date of valuation, or securities for which sale prices are not generally reported, are valued at the mean between the last bid and asked prices. Securities for which market quotations are not readily available are valued at their fair values as determined by, or under the direction of, the Board of Trustees. The Fund invests primarily in securities of non-U.S. issuers. The principal exchanges and markets for such securities have closing times prior to the close of the NYSE. However, the value of these securities may be influenced by changes in global markets occurring after the closing times of the local exchanges and markets up to the time the Fund determines its net asset value. Consequently, the Board of Trustees of the Fund has determined that the use of daily fair valuations as provided by a pricing service is appropriate for the Fund. The Fund may also take into consideration other significant events in determining the fair value of these securities. Thus, the Fund's securities valuations may differ from prices reported by the various local exchanges and markets. At August 31, 2008, there were no fair valued securities. Temporary cash investments are valued at cost which approximates market value. 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. 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. Gains and losses on sales of investments are calculated on the identified cost method for both financial reporting and federal income tax purposes. B. Foreign Currency Translation The books and records of the Fund are maintained in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars using current exchange rates. Net realized gains and losses on foreign currency transactions, if any, represent, among other things, the net realized gains and losses on foreign currency contracts, disposition of foreign currencies and the difference between the amount of income accrued and the U.S. dollars 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. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 33 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 entering 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 August 31, 2008, the Fund had no outstanding portfolio hedges or settlement hedges. D. Federal Income Taxes It is the Fund's policy to comply with the requirements of the Internal Revenue Code applicable to regulated 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. Tax years prior to 2004 are closed (not subject to examination by tax authorities) due to the expiration of the statute of limitations; all other tax years are open. The amounts and characterizations of distributions to shareowners for financial reporting purposes are determined in accordance with federal income tax rules. Therefore, the sources of the Fund's distributions may be shown in the accompanying financial statements as from or in excess of net investment income or as from net realized gain on investment transactions, or as from paid-in-capital, depending on the type of book/tax differences that may exist. At August 31, 2008, the Fund has reclassified $39,833 to increase undistributed net investment income and $39,833 to increase accumulated net realized loss on investments and foreign currency transactions to reflect permanent book/tax differences. The reclassification has no impact on the net asset value of the Fund and is designed to present the Fund's capital accounts on a tax basis. The Fund has elected to defer approximately $34,492,396 of capital losses recognized between November 1, 2007 and August 31, 2008 to its fiscal year ending August 31, 2009. 34 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 The tax character of distributions paid during the years ended August 31, 2008 and August 31, 2007 was as follows:
2008 2007 ----------------------------------------------------------------------------- Distributions paid from: Ordinary income $ 4,246,446 $ 2,328,114 Long-term capital gain 43,718,641 -- ----------------------------------------------------------------------------- Total $47,965,087 $ 2,328,114 =============================================================================
The following shows the components of distributable earnings on a federal income tax basis at August 31, 2008:
2008 ----------------------------------------------------------------------------- Distributable earnings: Undistributed ordinary income $ 3,204,953 Post-October loss deferred (34,492,396) Unrealized depreciation (8,785,190) ----------------------------------------------------------------------------- Total $ (40,072,633) =============================================================================
For the fiscal year ended August 31, 2008, the Fund has elected to pass through foreign tax credits of $628,997. The difference between book-basis and tax-basis unrealized depreciation is attributable to the tax deferral of losses on wash sales. E. Fund Shares The Fund records sales and repurchases of its shares as of trade date. Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund and a wholly owned indirect subsidiary of UniCredit S.p.A. (UniCredit), earned $13,393 in underwriting commissions on the sale of Class A shares during the year ended August 31, 2008. F. Class Allocations Income, common expenses and realized and unrealized gains and losses are calculated at the Fund level and allocated daily to each class of shares based on their respective percentage of adjusted net assets at the beginning of the day. 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 (See Note 4). Class Y shares are not subject to a distribution plan. Shareowners of each class participate in 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). Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 35 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, Class C and Class Y shares can bear different transfer agent and distribution expense rates. 2. Management Agreement Pioneer Investment Management, Inc. (PIM), a wholly owned indirect subsidiary of UniCredit, manages the Fund's portfolio. Management fees are calculated daily at the annual rate of 0.85% of the Fund's average daily nets assets up to $500 million; and 0.75% of the excess over $500 million. For the year ended August 31, 2008, the effective management fee (net of waivers and/or assumption of expense) was equivalent to 0.78% of the Fund's average net assets. Effective October 1, 2007, PIM has contractually agreed to limit ordinary operating expenses to the extent required to reduce Fund expenses to 1.50%, 2.40% and 2.40% of the average daily net assets attributable to Class A, Class B and Class C shares, respectively. Class Y shares do not have an expense limitation. These expense limitations are in effect through January 1, 2011 for Class A shares and through January 1, 2009 for Class B and Class C shares. Prior to October 1, 2007, PIM agreed to limit ordinary operating expenses to the extent required to reduce Fund expenses to 1.75%, 2.65% and 2.65% of the average daily net assets attributable to Class A, Class B and Class C shares, respectively. In addition, under the management agreement, management fees, administrative costs and fees for certain other services, including accounting, regulatory reporting and insurance, are paid by the Fund. Included in "Due to affiliates" reflected on the Statement of Assets and Liabilities is $13,822 in management fees, administrative costs and certain other services payable to PIM at August 31, 2008. 3. Transfer Agent PIMSS, a wholly owned indirect subsidiary of UniCredit, provides substantially all transfer agent and shareowner services to the Fund at negotiated rates. Included in "Due to affiliates" reflected on the Statement of Assets and Liabilities is $57,831 in transfer agent fees payable to PIMSS at August 31, 2008. 4. Distribution Plans The Fund adopted a Plan of Distribution with respect to Class A, Class B and Class C shares in accordance with Rule 12b-1 of the Investment Company Act of 1940. Pursuant to the Plan, the Fund pays PFD 0.25% of the average daily net assets attributable to Class A shares as compensation for personal services and/or account maintenance services or distribution services with regard to 36 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 Class A shares. Pursuant to the Plan, the Fund pays PFD 1.00% of the average daily net assets attributable to Class B and Class C 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. Prior to February 1, 2008, PFD was reimbursed under the Plan of Distribution for distribution expenses in an amount of up to 0.25% of the average daily net assets attributable to Class A shares. Included in "Due to affiliates" reflected on the Statement of Assets and Liabilities is $3,825 in distribution fees payable to PFD at August 31, 2008. In addition, redemptions of each class of shares (except Class Y 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 18 months of purchase. Class B shares that are redeemed within five 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%, based on the lower of cost or market value of shares being redeemed. Proceeds from the CDSCs are paid to PFD. For the year ended August 31, 2008, CDSCs in the amount of $44,957 were paid to PFD. 5. Expense Offset Arrangements 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 year ended August 31, 2008 the Fund's expenses were reduced by $18,776 under such arrangements. 6. Line of Credit Facility The Fund, along with certain other funds in the Pioneer Family of Funds (the Funds), collectively participate in a $200 million committed, unsecured revolving line of credit facility. Borrowings are used solely for temporary or emergency purposes. The Fund may borrow up to the lesser of $200 million or the limits set by its prospectus for borrowings. Interest on collective borrowings is payable at the Federal Funds Rate plus 1/2% on an annualized basis. The Funds pay an annual commitment fee for this facility. The commitment fee is allocated among such Funds based on their respective borrowing limits. For the year ended August 31, 2008, the Fund had no borrowings under this agreement. 7. New Pronouncements In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 37 measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for fiscal years beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about an entity's derivative and hedging activities. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Fund's financial statement disclosures. 38 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 Report of Independent Registered Public Accounting Firm To the Trustees and Shareholders of Pioneer Europe Select Equity Fund: - -------------------------------------------------------------------------------- We have audited the accompanying statement of assets and liabilities of Pioneer Europe Select Equity Fund (the Fund), including the schedule of investments as of August 31, 2008, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of August 31, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Pioneer Europe Select Equity Fund at August 31, 2008, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Boston, Massachusetts October 20, 2008 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 39 ADDITIONAL INFORMATION (unaudited) For the year ended August 31, 2008, certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act (the Act) of 2003. The Fund intends to designate up to the maximum amount of such dividends allowable under the Act, as taxed at a maximum rate of 15%. Complete information will be computed and reported in conjunction with your 2008 form 1099-DIV. The qualifying percentage of the Fund's ordinary income dividends for the purpose of the corporate dividends received deduction was 10.78%. The percentages of the Fund's ordinary income distributions that are exempt from nonresident alien (NRA) tax withholding resulting from qualified interest income and qualified short term gains were 0% and 14.79%, respectively. Results of Shareholder Meeting (unaudited) At a special meeting held on May 13, 2008, shareholders of the Fund were asked to consider the proposals described below. A report of the total votes cast by the Fund's shareholders follows:
- ------------------------------------------------------------------------------------------------------------------------------------ Broker For Withhold Abstain Non-Votes - ------------------------------------------------------------------------------------------------------------------------------------ Proposal 1 -- To elect Trustees John F. Cogan, Jr. 4,589,378.501 204,500.811 16,896.399 0 Daniel K. Kingsbury 4,680,186.412 113,692.900 16,896.399 0 David R. Bock 4,598,071.573 155,146.361 57,557.777 0 Mary K. Bush 4,615,890.435 137,327.499 57,557.777 0 Benjamin M. Friedman 4,656,942.222 136,937.089 16,896.399 0 Margaret B.W. Graham 4,694,803.590 99,075.721 16,896.399 0 Thomas J. Perna 4,648,859.659 145,019.653 16,896.399 0 Marguerite A. Piret 4,649,753.017 144,126.294 16,896.399 0 Stephen K. West 4,576,762.905 217,116.406 16,896.399 0 John Winthrop 4,666,761.880 127,117.432 16,896.399 0
Broker For Against Abstain Non-Votes - ------------------------------------------------------------------------------------------------------------------------------------ Proposal 2 -- To approve an Agreement and Plan of Reorganization 3,791,508.898 132,124.162 55,493.651 831,649.000
Broker For Against Abstain Non-Votes - ------------------------------------------------------------------------------------------------------------------------------------ Proposal 3A -- To approve changes to the Fund's fundamental investment policy relating to borrowing money 3,729,146.723 199,381.244 50,598.744 831,649.000
40 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Broker For Against Abstain Non-Votes - ------------------------------------------------------------------------------------------------------------------------------------ Proposal 3B -- To approve changes to the Fund's fundamental investment policy relating to underwriting 3,769,366.469 151,491.995 58,268.247 831,649.000 Proposal 3C -- To approve changes to the Fund's fundamental investment policy relating to lending 3,766,568.132 159,132.384 53,426.195 831,649.000 Proposal 3D -- To approve changes to the Fund's fundamental investment policy relating to issuing senior securities 3,735,244.691 188,232.233 55,649.787 831,649.000 Proposal 3E -- To approve changes to the Fund's fundamental investment policy relating to real estate 3,734,194.672 190,818.102 54,113.937 831,649.000 Proposal 3F -- To approve changes to the Fund's fundamental investment policy relating to commodities 3,769,770.886 151,350.688 58,005.138 831,649.000 Proposal 3G -- To approve changes to the Fund's fundamental investment policy relating to concentration 3,770,875.277 152,024.774 56,226.660 831,649.000 Proposal 3H -- To approve changes to the Fund's fundamental investment policy relating to diversification 3,785,227.014 146,181.035 47,718.662 831,649.000 Proposal 3I -- To approve the conversion of the Fund's investment objective from fundamental to non- fundamental 3,716,139.953 201,543.081 61,443.677 831,649.000 Proposal 3O -- To approve changes to the Fund's fundamental investment policy relating to pledging or guaranteeing assets 3,709,879.019 200,488.862 68,758.830 831,649.000 Proposal 3P -- To approve changes to the Fund's fundamental investment policy relating to investments made for the purpose of exercising control or management of issuers 3,752,670.078 152,163.156 74,293.477 831,649.000
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 41
Broker For Against Abstain Non-Votes - ------------------------------------------------------------------------------------------------------------------------------------ Proposal 3R -- To approve changes to the Fund's fundamental investment policy relating to investments in convertible debt securities rated below investment grade 3,709,289.888 215,575.818 54,261.005 831,649.000
Broker For Against Abstain Non-Votes - ------------------------------------------------------------------------------------------------------------------------------------ Proposal 4 -- To approve an Amended and Restated Management Agreement with PIM 3,768,250.577 155,793.729 55,082.405 831,649.000
Broker For Against Abstain Non-Votes - ------------------------------------------------------------------------------------------------------------------------------------ Proposal 5 -- To approve a policy allowing the appointment of unaffiliated sub-advisors and amendments to sub- advisory agreements without shareholder approval 3,688,925.901 236,144.064 54,056.746 831,649.000
42 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 Approval of Investment Advisory Agreement Pioneer Investment Management, Inc. (PIM) serves as the Fund's investment adviser pursuant to an investment advisory agreement between PIM and the Fund. The Trustees of the Fund, as required by law, determine annually whether to continue the investment advisory agreement for the Fund. In connection with their most recent consideration of the investment advisory agreement for the Fund, the Trustees received and reviewed a substantial amount of information provided by PIM in response to requests of the independent Trustees and their independent legal counsel. The independent Trustees met on a number of occasions with PIM and also separately with their independent legal counsel to evaluate and discuss the information provided to them by PIM. At a meeting held on November 13, 2007, based on their evaluation of the information provided by PIM, the Trustees, including the independent Trustees voting separately, unanimously approved the continuation of the investment advisory agreement for another year. At a meeting held on January 8, 2008, the Trustees considered whether an amended and restated investment advisory agreement for the Fund should be approved for an initial period ending December 31, 2009. The management fee to be paid by the Fund to PIM under the amended and restated investment advisory agreement is the same as the management fee provided in the previously approved investment advisory agreement. Based on their evaluation of the information provided by PIM, including the information provided by PIM in connection with the Trustees' most recent approval of the continuation of the previous investment advisory agreement, the Trustees, including the independent Trustees voting separately, unanimously approved the amended and restated investment advisory agreement. Shareholders of the Fund approved the amended and restated investment advisory agreement at a meeting held on May 13, 2008. In considering the amended and restated investment advisory agreement, the Trustees considered various factors that they determined were relevant, including the factors described below. The Trustees did not identify any single factor as the controlling factor in determining to approve the amended and restated investment advisory agreement. Nature, Extent and Quality of Services The Trustees considered the nature, extent and quality of the services that were provided by PIM to the Fund under the previous investment advisory agreement, and that would continue to be provided by PIM to the Fund under the amended and restated investment advisory agreement, taking into account the investment objective and strategy of the Fund and the information related to Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 43 the Fund provided to the Trustees at each quarterly meeting. The Trustees reviewed the terms of the amended and restated investment advisory agreement. The Trustees also reviewed PIM's investment approach for the Fund and its research process. The Trustees considered the resources of PIM and the personnel of PIM who provide investment management services to the Fund. They also considered PIM's compliance and legal resources and personnel. In addition, the Trustees considered the other services that PIM provided under the previous investment advisory agreement and that PIM would continue to provide to the Fund under the amended and restated investment advisory agreement and that, as administrator, PIM is responsible for the administration of the Fund's business and other affairs. It was noted that PIM supervises and monitors the performance of the Fund's service providers and provides the Fund with personnel (including officers) as are necessary for the Fund's operations. The Trustees considered the fees paid to PIM for the provision of such services. Based on these considerations, the Trustees concluded that the nature, extent and quality of services that PIM would continue to provide to the Fund under the amended and restated investment advisory agreement, were satisfactory and consistent with the terms of the amended and restated investment advisory agreement. Performance of the Fund The Trustees considered the performance results of the Fund over various time periods. They reviewed information comparing the Fund's performance with the average performance of its peer group of funds as classified by Morningstar, Inc. (Morningstar), an independent provider of investment company data, and with the performance of the Fund's benchmark index. The Trustees considered that the Fund's annualized total return was in the fifth quintile of its Morningstar category for the one and three year periods ended June 30, 2007 and in the third quintile of its Morningstar category for the five year period ended June 30, 2007. (In all quintile rankings referred to throughout this disclosure, first quintile is most favorable to the Fund's shareowners. Thus, highest relative performance would be first quintile and lowest relative expenses would also be first quintile.) After discussing the reasons for the Fund's underperformance with PIM, the Trustees agreed that they would continue to monitor the performance of the Fund especially closely. Management Fee and Expenses The Trustees considered that the management fee to be paid by the Fund to PIM under the amended and restated investment advisory agreement would be the same as the management fee to be paid by the Fund under the previously approved investment advisory agreement. The Trustees considered information on the fees and expenses of the Fund in comparison to the management fees of its peer group of funds as classified by Morningstar and the expense 44 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 ratios of a peer group of funds selected on the basis of criteria determined by the independent Trustees for this purpose using data provided by Strategic Insight Mutual Fund Research and Consulting, LLC (Strategic Insight), an independent third party. The Trustees considered that the Fund's management fee for the twelve months ended June 30, 2007 was in the third quintile relative to the management fees paid by other funds in its peer group Morningstar category for the comparable period. The Trustees also considered that the Fund's expense ratio for the twelve months ended June 30, 2007 was in the fifth quintile relative to its Strategic Insight peer group. The Trustees noted PIM's agreement to lower the contractual expense limitation for the Fund and that the lowered expense cap was in line with the median expense ratio of the Fund's Strategic Insight peer group for the twelve months ended June 30, 2007. It was noted that PIM did not currently manage any accounts with an investment objective and strategies that were similar to the Fund. The Trustees concluded that the management fee payable by the Fund to PIM was reasonable in relation to the nature and quality of services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies. The Trustees also concluded that the Fund's expense ratio was reasonable, taking into account the size of the Fund, the quality of services provided by PIM, the investment performance of the Fund and the contractual expense limitation agreed to by PIM with respect to the Fund. Profitability The Trustees considered information provided by PIM regarding the profitability of PIM with respect to the advisory services provided by PIM to the Fund, including the methodology used by PIM in allocating certain of its costs to the management of the Fund. The Trustees also considered PIM's profit margin in connection with the overall operation of the Fund. They further reviewed the financial results realized by PIM and its affiliates from non-fund businesses. The Trustees considered PIM's profit margins with respect to the Fund in comparison to the limited industry data available and noted that the profitability of any adviser was affected by numerous factors, including its organizational structure and method for allocating expenses. The Trustees recognized that PIM should be entitled to earn a reasonable level of profit for the services provided to the Fund. The Trustees concluded that PIM's profitability with respect to the management of the Fund was not unreasonable. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 45 Economies of Scale The Trustees considered the economies of scale with respect to the management of the Fund, whether the Fund had appropriately benefited from any economies of scale, and whether there was potential for realization of any further economies of scale. The Trustees concluded that, because of the breakpoints in the management fee schedule and the reduced fee rates above certain asset levels, any perceived or potential economies of scale would be shared between PIM and the Fund. Other Benefits The Trustees considered the other benefits to PIM from its relationship with the Fund. The Trustees considered that affiliates of PIM serve as the Fund's transfer agent and distributor. The Trustees considered the receipt by PIM and its affiliates of sales loads and payments under Rule 12b-1 plans in respect of the Fund and the other Pioneer funds and the benefits to PIM and its affiliates from the use of "soft" commission dollars generated by the Fund to pay for research and brokerage services. The Trustees further considered the intangible benefits to PIM by virtue of its relationship with the Fund and the other Pioneer funds. The Trustees concluded that the receipt of these benefits was reasonable in the context of the overall relationship between PIM and the Fund. Conclusion After consideration of the factors described above as well as other factors, the Trustees, including all of the independent Trustees, concluded that the terms of the amended and restated investment advisory agreement between PIM and the Fund, including the fees payable thereunder, were fair and reasonable and voted to approve the amended and restated investment advisory agreement for the Fund. 46 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 Trustees, Officers and Service Providers Investment Adviser Pioneer Investment Management, Inc. Custodian Brown Brothers Harriman & Co. Independent Registered Public Accounting Firm Ernst & Young LLP Principal Underwriter Pioneer Funds Distributor, Inc. Legal Counsel Bingham McCutchen LLP Shareowner Services and Transfer Agent Pioneer Investment Management Shareholder Services, Inc. Trustees and Officers The Board of Trustees provides broad supervision over the Fund's affairs. The officers of the Fund are responsible for the Fund's operations. The Trustees and officers are listed below, together with their principal occupations during the past five years. Trustees who are interested persons of the Fund within the meaning of the 1940 Act are referred to as Interested Trustees. Trustees who are not interested persons of the Fund are referred to as Independent Trustees. Each of the Trustees (except Mr. West, Mr. Bock and Dr. Friedman) serves as a Trustee of each of the 77 U.S. registered investment portfolios for which Pioneer serves as investment adviser (the "Pioneer Funds"). Mr. West serves as Trustee of 33 of the 77 Pioneer Funds, Mr. Bock serves as Trustee of 76 of the 77 Pioneer Funds, and Dr. Friedman serves as Trustee of 76 of the 77 Pioneer Funds. The address for all Trustees and all officers of the Fund is 60 State Street, Boston, Massachusetts 02109. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 47 Interested Trustees
Position Held Length of Service Principal Occupation Other Directorships Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee - ------------------------------------------------------------------------------------------------------------------------------------ John F. Cogan, Jr. (82)* Chairman of the Board, Trustee since 2008. Deputy Chairman and a Director None Trustee and President Serves until a successor of Pioneer Global Asset Man- trustee is elected or agement S.p.A. ("PGAM"); earlier retirement or Non-Executive Chairman and a removal. Director of Pioneer Investment Management USA Inc. ("PIM-USA"); Chairman and a Director of Pioneer; Chairman and Director of Pioneer Institutional Asset Management, Inc. (since 2006); Director of Pioneer Alternative Investment Management Limited (Dublin); President and a Director of Pioneer Alternative Invest- ment Management (Bermuda) Limited and affiliated funds; Director of PIOGLOBAL Real Estate Investment Fund (Russia) (until June 2006); Director of Nano-C, Inc. (since 2003); Director of Cole Management Inc. (since 2004); Director of Fiduciary Counseling, Inc.; President and Director of Pioneer Funds Distributor, Inc. ("PFD") (until May 2006); President of all of the Pioneer Funds; and Of Counsel, Wilmer Cutler Pickering Hale and Dorr LLP - ------------------------------------------------------------------------------------------------------------------------------------ Daniel K. Kingsbury (50)* Trustee and Executive Trustee since 2008. Director, CEO and President of None Vice President Serves until a successor Pioneer Investment Management trustee is elected or USA Inc. (since February earlier retirement or 2007); Director and President removal. of Pioneer Investment Management, Inc. and Pioneer Institutional Asset Management, Inc. (since February 2007); Executive Vice President of all of the Pioneer Funds (since March 2007); Director of Pioneer Global Asset Management S.p.A. (since April 2007); Head of New Markets Division, Pioneer Global Asset Management S.p.A. (2000 - 2007) - ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Cogan and Mr. Kingsbury are Interested Trustees because they are officers or directors of the Fund's investment adviser and certain of its affiliates. 48 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 Independent Trustees
Position Held Length of Service Principal Occupation Other Directorships Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee - ------------------------------------------------------------------------------------------------------------------------------------ David R. Bock (64) Trustee Trustee since 2008. Executive Vice President and Director of Serves until a successor Chief Financial Officer, Enterprise Community trustee is elected or I-trax, Inc. (publicly traded Investment, Inc. earlier retirement or health care services company) (privately-held removal. (2004 - 2007); Partner, affordable housing Federal City Capital Advisors finance company); (boutique merchant bank) (1997 and Director of New to 2004 and 2008 - present); York Mortgage Trust and Executive Vice President (publicly traded and Chief Financial Officer, mortgage REIT) Pedestal Inc. (internet-based mortgage trading company) (2000 - 2002) - ------------------------------------------------------------------------------------------------------------------------------------ Mary K. Bush (60) Trustee Trustee since 2008. President, Bush International, Director of Marriott Serves until a successor LLC (international financial International, Inc., trustee is elected or advisory firm) Director of Discover earlier retirement or Financial Services removal. (credit card issuer and electronic payment services); Director of Briggs & Stratton Co. (engine manufacturer); Director of UAL Corporation (airline holding company) Director of Mantech International Corporation (national security, defense, and intelligence technology firm); and Member, Board of Governors, Investment Company Institute - ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 49 Independent Trustees (continued)
Position Held Length of Service Principal Occupation Other Directorships Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee - ------------------------------------------------------------------------------------------------------------------------------------ Benjamin M. Friedman (64) Trustee Trustee since May, Professor, Harvard University Trustee, Mellon 2008. Serves until a Institutional Funds successor trustee is Investment Trust and elected or earlier Mellon Institutional retirement or removal. Funds Master Portfolio (oversees 17 portfolios in fund complex) - ------------------------------------------------------------------------------------------------------------------------------------ Margaret B.W. Graham (61) Trustee Trustee since 2008. Founding Director, None Serves until a successor Vice-President and Corporate trustee is elected or Secretary, The Winthrop Group, earlier retirement Inc. (consulting firm); and or removal. Desautels Faculty of Management, McGill University - ------------------------------------------------------------------------------------------------------------------------------------ Thomas J. Perna (57) Trustee Trustee since 2008. Private investor Director of Serves until a successor (2004 - present); and Senior Quadriserv Inc. trustee is elected or Executive Vice President, The (technology products earlier retirement Bank of New York (financial for securities or removal. and securities services) lending industry) (1986 - 2004) - ------------------------------------------------------------------------------------------------------------------------------------ Marguerite A. Piret (60) Trustee Trustee since 2008. President and Chief Executive Director of New Serves until a successor Officer, Newbury, Piret & America High Income trustee is elected or Company, Inc. (investment Fund, Inc. earlier retirement banking firm) (closed-end or removal. investment company) - ------------------------------------------------------------------------------------------------------------------------------------
50 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Position Held Length of Service Principal Occupation Other Directorships Name and Age with the Fund and Term of Office During Past Five Years Held by this Trustee - ------------------------------------------------------------------------------------------------------------------------------------ Stephen K. West (79) Trustee Trustee since 1993. Senior Counsel, Sullivan & Director, The Swiss Serves until a successor Cromwell LLP (law firm) Helvetia Fund, Inc. trustee is elected or (closed-end earlier retirement investment company) or removal. - ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 51 Fund Officers
Positions Held Length of Service Principal Occupation Other Directorships Name and Age with the Fund and Term of Office During Past Five Years Held by this Officer - ------------------------------------------------------------------------------------------------------------------------------------ Dorothy E. Bourassa (60) Secretary Since 2008. Serves at Secretary of PIM-USA; Senior None the discretion of the Vice President - Legal of Board Pioneer; Secretary/Clerk of most of PIM-USA's subsidiaries; and Secretary of all of the Pioneer Funds since September 2003 (Assistant Secretary from November 2000 to September 2003) - ------------------------------------------------------------------------------------------------------------------------------------ Christopher J. Kelley (43) Assistant Secretary Since 2008. Serves at Associate General Counsel of None the discretion of the Pioneer since January 2008 and Board Assistant Secretary of all of the Pioneer Funds since September 2003; Vice President and Senior Counsel of Pioneer from July 2002 to December 2007 - ------------------------------------------------------------------------------------------------------------------------------------ Mark E. Bradley (48) Treasurer Since 2008. Serves at Vice President - Fund None the discretion of the Accounting, Administration and Board Controllership Services of Pioneer; and Treasurer of all of the Pioneer Funds since March 2008; Deputy Treasurer of Pioneer from March 2004 to February 2008; Assistant Treasurer of all of the Pioneer Funds from March 2004 to February 2008; and Treasurer and Senior Vice President, CDC IXIS Asset Management Services from 2002 to 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Luis I. Presutti (43) Assistant Treasurer Since 2008. Serves at Assistant Vice President - None the discretion of the Fund Accounting, Board Administration and Controllership Services of Pioneer; and Assistant Treasurer of all of the Pioneer Funds - ------------------------------------------------------------------------------------------------------------------------------------ Gary Sullivan (50) Assistant Treasurer Since 2008. Serves at Fund Accounting Manager - Fund None the discretion of the Accounting, Administration and Board Controllership Services of Pioneer; and Assistant Treasurer of all of the Pioneer Funds - ------------------------------------------------------------------------------------------------------------------------------------
52 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08
Positions Held Length of Service Principal Occupation Other Directorships Name and Age with the Fund and Term of Office During Past Five Years Held by this Officer - ------------------------------------------------------------------------------------------------------------------------------------ Katherine Kim Sullivan Assistant Treasurer Since 2008. Serves at Fund Administration Manager - None (34) the discretion of the Fund Accounting, Board Administration and Controllership Services since June 2003 and Assistant Treasurer of all of the Pioneer Funds since September 2003; Assistant Vice President - Mutual Fund Operations of State Street Corporation from June 2002 to June 2003 (formerly Deutsche Bank Asset Management) - ------------------------------------------------------------------------------------------------------------------------------------ Teri W. Anderholm (49) Chief Compliance Since January 2008. Chief Compliance Officer of None Officer Serves at the discretion Pioneer since December 2006 of the Board and of all the Pioneer Funds since January 2007; Vice President and Compliance Officer, MFS Investment Management (August 2005 to December 2006); Consultant, Fidelity Investments (February 2005 to July 2005); Independent Consultant (July 1997 to February 2005) - ------------------------------------------------------------------------------------------------------------------------------------
Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 53 This page for your notes. 54 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 This page for your notes. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 55 This page for your notes. 56 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 This page for your notes. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 57 This page for your notes. 58 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 This page for your notes. Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 59 This page for your notes. 60 Pioneer Europe Select Equity Fund | Annual Report | 8/31/08 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@pioneerinvestments.com (for general questions about Pioneer only) Visit our web site: pioneerinvestments.com This report must be preceded or accompanied by a prospectus. The Fund files a complete schedule of investments with the Securities and Exchange Commission for the first and third quarters for each fiscal year on Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's web site at http://www.sec.gov. The filed form may also be viewed and copied at the Commission's Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling 1-800-SEC-0330. 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. See Item 10(2) 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. Audit Fees Fees for audit services provided to the Fund, including fees associated with the annual filing of its Form N-1A, totaled approximately $35,500 in 2008 and $34,175 in 2007. (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. Audit-Related Fees There were no fees for audit-related services provided to the Fund during the fiscal years ended August 31, 2008 and 2007. (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. Tax Fees Fees for tax compliance services, primarily for tax returns, totaled approximately $8,290 and $7,820 in 2008 and 2007, respectively. (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. Other Fees There were no fees for other services provided to the Fund during the fiscal years ended August 31, 2008 and 2007. (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 recognize 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 recognize 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. Beginning with non-audit service contracts entered into on or after May 6, 2003, the effective date of the new SEC pre-approval rules, the Fund's audit committee is required to pre-approve services to affiliates defined by SEC rules to the extent that the services are determined to have a direct impact on the operations or financial reporting of the Fund. For the years ended August 31, 2007 and 2006, there were no services provided to an affiliate that required the Fund's audit committee pre-approval. (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. The aggregate non-audit fees for the Fund and affiliates, as previously defined, totaled approximately $8,290 in 2008 and $7,820 in 2007. (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. The Fund's audit committee of the Board of Trustees has considered whether the provision of non-audit services that were rendered to the Affiliates (as defined) 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. Item 5. Audit Committee of Listed Registrants (a) If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17 CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrants audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state. N/A (b) If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption from the listing standards for audit committees. N/A Item 6. Schedule of Investments. File Schedule I Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in 210.12- 12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form. Included in Item 1 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. Portfolio Managers of Closed-End Management Investment Companies. (a) If the registrant is a closed-end management investment company that is filing an annual report on this Form N-CSR,provide the following information: (1) State the name, title, and length of service of the person or persons employed by or associated with the registrant or an investment adviser of the registrant who are primarily responsible for the day-to-day management of the registrants portfolio (Portfolio Manager). Also state each Portfolio Managers business experience during the past 5 years. Not applicable to open-end management investment companies. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. (a) If the registrant is a closed-end management investment company, in the following tabular format, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any affiliated purchaser, as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrants equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose all purchases covered by this Item, including purchases that do not satisfy the conditions of the safe harbor of Rule 10b-18 under the Exchange Act (17 CFR 240.10b-18), made in the period covered by the report. Provide disclosures covering repurchases made on a monthly basis. For example, if the reporting period began on January 16 and ended on July 15, the chart would show repurchases for the months from January 16 through February 15, February 16 through March 15, March 16 through April 15, April 16 through May 15, May 16 through June 15, and June 16 through July 15. Not applicable to open-end management investment companies. Item 10. Submission of Matters to a Vote of Security Holders. Describe any material changes to the procedures by which shareholders may recommend nominees to the registrants board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item. There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrants board of directors since the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in its definitive proxy statement, or this Item. ITEM 11. 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 principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures are effective based on their evaluation of these controls and procedures as of a date within 90 days of 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 control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. The registrant's principal executive officer and principal financial officer, however, voluntarily are reporting the following information: In August of 2006 the registrant's investment adviser enhanced its internal procedures for reporting performance information required to be included in prospectuses. Those enhancements involved additional internal controls over the appropriateness of performance data generated for this purpose. Such enhancements were made following an internal review which identified prospectuses relating to certain classes of shares of a limited number of registrants where, inadvertently, performance information not reflecting the deduction of applicable sales charges was included. Those prospectuses were revised, and the revised prospectuses were distributed to shareholders. ITEM 12. 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. (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 Equity Fund By (Signature and Title)* /s/ John F. Cogan, Jr. John F. Cogan, Jr, President Date October 29, 2008 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 October 29, 2008 By (Signature and Title)* /s/ Mark Bradley Mark Bradley, Treasurer Date October 29, 2008 * 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 Equity 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-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed 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 over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: October 29, 2008 /s/ John F. Cogan, Jr. John F. Cogan, Jr. President CERTIFICATIONS -------------- I, Mark Bradley, certify that: 1. I have reviewed this report on Form N-CSR of Pioneer Europe Select Equity 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-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed 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 over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: October 29, 2008 /s/ Mark Bradley Mark Bradley Treasurer SECTION 906 CERTIFICATION Pursuant to 18 U.S.C. ss. 1350, the undersigned officer of Pioneer Europe Select Equity (the "Fund"), hereby certifies, to the best of his knowledge, that the Fund's Report on Form N-CSR for the period ended August 31, 2008 (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 Trust. Dated: October 29, 2008 /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 Equity (the "Fund"), hereby certifies, to the best of his knowledge, that the Fund's Report on Form N-CSR for the period ended August 31, 2008 (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 Trust. Dated: October 29, 2008 /s/ Mark Bradley Mark Bradley 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-----