0000078713-13-000023.txt : 20130227
0000078713-13-000023.hdr.sgml : 20130227
20130227144712
ACCESSION NUMBER: 0000078713-13-000023
CONFORMED SUBMISSION TYPE: N-CSR
PUBLIC DOCUMENT COUNT: 3
CONFORMED PERIOD OF REPORT: 20121231
FILED AS OF DATE: 20130227
DATE AS OF CHANGE: 20130227
EFFECTIVENESS DATE: 20130227
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: PIONEER REAL ESTATE SHARES
CENTRAL INDEX KEY: 0000908996
IRS NUMBER: 043201341
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: N-CSR
SEC ACT: 1940 Act
SEC FILE NUMBER: 811-07870
FILM NUMBER: 13646245
BUSINESS ADDRESS:
STREET 1: 60 STATE ST
STREET 2: 20TH FLOOR
CITY: BOSTON
STATE: MA
ZIP: 02109-1820
BUSINESS PHONE: 6174224700
MAIL ADDRESS:
STREET 1: 60 STATE STREET
STREET 2: 20TH FLOOR
CITY: BOSTON
STATE: MA
ZIP: 02109-1820
FORMER COMPANY:
FORMER CONFORMED NAME: PIONEER WINTHROP REAL ESTATE INVESTMENT FUND
DATE OF NAME CHANGE: 19930713
0000908996
S000010000
Pioneer Real Estate Shares
C000027661
Pioneer Real Estate Shares: Class A
PWREX
C000027662
Pioneer Real Estate Shares: Class B
PBREX
C000027663
Pioneer Real Estate Shares: Class C
PCREX
C000027664
Pioneer Real Estate Shares: Class Y
PYREX
N-CSR
1
ncsr.txt
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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 811-07870
Pioneer Real Estate Shares
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, 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: December 31
Date of reporting period: January 1, 2012 through December 31, 2012
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 Real
Estate Shares
--------------------------------------------------------------------------------
Annual Report | December 31, 2012
--------------------------------------------------------------------------------
Ticker Symbols:
Class A PWREX
Class B PBREX
Class C PCREX
Class Y PYREX
[LOGO] PIONEER
Investments(R)
visit us: us.pioneerinvestments.com
Table of Contents
Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 9
Prices and Distributions 10
Performance Update 11
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 20
Notes to Financial Statements 28
Report of Independent Registered Public Accounting Firm 35
Approval of Investment Advisory and Sub-Advisory Agreements 36
Trustees, Officers and Service Providers 41
Pioneer Real Estate Shares | Annual Report | 12/31/12 1
President's Letter
Dear Shareowner,
Pioneer has been cautiously optimistic about the U.S. economy from the start of
the year, and the data continues to be encouraging. Employment continues to
rise, albeit slowly, and we believe it should continue to do so in 2013, barring
a negative shock to the system. The housing and auto sectors continue to
recover, benefiting from record-low interest rates. Banks' willingness to lend
to consumers and businesses also continues to rise, broad measures of inflation
remain subdued, and, if the weather improves in 2013, that should help to bring
food prices back down. While corporate profit growth has slowed, many U.S.
companies still have strong balance sheets and continue to display the ability
to both pay and increase dividends*.
While the so-called "fiscal cliff" scheduled to take effect at year-end
dominated the media in December--and while no deal was struck before markets
closed for the year--investors who owned financial assets like equities and
high-yield corporate bonds generally enjoyed good returns in 2012. The Standard
& Poor's 500 Index returned 16% in 2012, and the Bank of America Merrill Lynch
High Yield Master II Index returned 15.6%. Meanwhile, the higher-quality
Barclays Capital Aggregate Bond Index gained 4.2% for the year, the safer-still
Barclays Capital Intermediate Treasuries Index returned 3.9%, and 3-month
Treasury bills, generally regarded as essentially "risk free" by the markets,
returned just 0.1% in 2012.
Despite generally improving economic conditions and positive market returns in
2012, investors still face daunting challenges in the year ahead, although we
remain optimistic that the underlying economic trends are moving in the right
direction. The year-end "fiscal cliff" deal did not eliminate the risk of
further tax increases or spending cuts, nor did it eliminate the risk that the
U.S. could face further downgrades to its credit rating from one or more of the
major ratings agencies. The Federal Reserve Board continues to provide
extraordinary support to the U.S. economy and the bond market, but will not do
so indefinitely. Europe has made progress towards dampening its sovereign-debt
crisis, but has not resolved the problem as yet; the region also was mired in a
recession as 2012 drew to a close. In Asia, Japan continues to struggle with low
economic growth,
* Dividends are not guaranteed.
2 Pioneer Real Estate Shares | Annual Report | 12/31/12
deflation, high levels of debt, and an aging population. In the emerging
markets, China and other developing economies, while generally in better shape
than most "developed" markets, also face a range of ongoing challenges.
While most of the risks outlined above are widely recognized and may already be
"priced in" to the market, we believe investors should continue to expect market
volatility tied to these factors.
At Pioneer, we have long advocated the benefits of staying diversified and
investing for the long term. And while diversification alone does not assure a
profit or protect against loss in a declining market, we believe there are still
opportunities for prudent investors to earn attractive returns. Our advice, as
always, is to work closely with a trusted financial advisor to discuss your
goals and work together to develop an investment strategy that meets your
individual needs, keeping in mind that there is no single best strategy that
works for every investor.
In 2013, Pioneer proudly celebrates its 85th anniversary. Since 1928, our
investment teams have sought out attractive opportunities in global equity and
bond markets, using in-depth research to identify undervalued individual
securities, and using thoughtful risk management to construct portfolios which
balance potential risks and reward in an ever-changing world.
We encourage you to learn more about Pioneer and our time-tested approach to
investing by consulting with your financial advisor or visiting us online at
us.pioneerinvestments.com. We greatly appreciate your trust in us, and we 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 shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion 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 Real Estate Shares | Annual Report | 12/31/12 3
Portfolio Management Discussion | 12/31/12
With an easing of global macroeconomic concerns and the nascent recovery in the
housing market raising confidence in U.S. growth, the real estate sector enjoyed
strong performance during the 12-month period ended December 31, 2012. In the
following interview, Matthew Troxell of AEW Capital Management, L.P.,
sub-adviser for Pioneer Real Estate Shares, discusses the investment environment
and the Fund's performance during the 12-month period.
Q What factors contributed to the rally in real estate stocks during the 12
months ended December 31, 2012?
A For much of 2012, investors encountered great macroeconomic uncertainty,
ranging from the viability of the euro zone and slower economic growth in
China, to the year-end "fiscal cliff" budget negotiations in the U.S. and
their potential implications for tax code changes in 2013. Yet, as the year
progressed, prospects for the U.S. economy improved and global economic
conditions stabilized, helping equities to post strong gains for the full
12-month period. REITs were at the vanguard of the market rally, helped by
the asset class's positive investment flows. The strong demand for REITs was
driven by investors' search for yield in a low-interest-rate environment,
continued improvement in commercial property fundamentals, and a
historically low level of new REIT supply coming to market.
Q How did Pioneer Real Estate Shares perform in this environment?
A Pioneer Real Estate Shares Class A shares returned 15.75% at net asset value
during the 12 months ended December 31, 2012, while the Fund's benchmark,
the Morgan Stanley Capital International (MSCI) U.S. REIT Index (the MSCI
Index)1, returned 17.77%. During the same period, the average return of the
237 mutual funds in Lipper's Real Estate Funds category was 17.73%.
1 The MSCI information may only be used for your internal use, may not be
reproduced or re-disseminated in any form and may not be used as a basis for
or a component of any financial instruments or products or indices. None of
the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an "as
is" basis and the user of this information assumes the entire risk of any
use made of this information. MSCI, each of its affiliates and each other
person involved in or related to compiling, computing or creating any MSCI
information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer Real Estate Shares | Annual Report | 12/31/12
Q What were some of the reasons behind the Fund's underperformance of the MSCI
Index during the 12 months ended December 31, 2012?
A We believe that the Fund's small cash position -- that is, the portfolio's
not being fully invested in REITs during the period -- proved to be the
greatest drag on relative performance during the 12-month period, especially
given the real estate market's rally.
While we are guided by our bottom-up stock selection process when investing
the portfolio's assets, and are not top-down investors, the Fund's
underweight exposure to the outperforming regional mall sector and its
overweight position in the underperforming diversified REIT sector also
detracted from relative results.
With that said, our decision to limit the Fund's investments in the
underperforming apartment and office REIT sectors proved beneficial for
relative returns.
Q What individual holdings favorably influenced the Fund's performance during
the 12 months ended December 31, 2012?
A Favorable returns from the Portfolio's three top contributor REITs--Extra
Space Storage, Kilroy Realty and Retail Properties of America--were
augmented by our decision to overweight those particular investments
relative to the MSCI Index.
Extra Space Storage posted stronger-than-expected earnings results
throughout the 12-month period and raised its earnings guidance for 2012.
Within the office REIT sector, Kilroy Realty's portfolio is heavily invested
in the Seattle area as well as in northern and southern California, regions
of the country where office markets recovered more strongly than in other
areas in 2012. Retail Properties of America went public in April 2012, and
the Portfolio participated in the initial public offering: the stock had a
total return of more than 28% from its debut through December 31, 2012.
Q What individual holdings detracted from the Fund's performance during the 12
months ended December 31, 2012?
A The apartment REIT sector lagged during the 12-month period as investors
became concerned that the recovering single-family housing market would
compete with the multi-family sector (we tend to disagree with that
investment thesis). As a result of the apartment sector's struggles, the
Fund's overweight positions in Equity Residential and AvalonBay Communities,
two apartment REITs which underperformed, weighed on performance during the
period. The portfolio's position in First Potomac Realty, an industrial
REIT, was hurt by management's announcement in the first quarter of 2012
that the company was in danger of breaching a debt
Pioneer Real Estate Shares | Annual Report | 12/31/12 5
covenant due to an accounting error. The company managed to avoid committing
the breach, but the announcement hurt the stock's performance for the
remainder of the 12-month period, even as management worked to regain
investors' trust.
Q Could you comment on the performance of the underlying sectors of the REIT
market and mention any noteworthy shifts in the Fund's sector allocations
during the 12 months ended December 31, 2012?
A In terms of underlying property market fundamentals, apartments were the
strongest performers in the REIT market. Apartment REITs had the fastest
income growth during 2012, with vacancies at or below long-term averages and
rents well above pre-recession peaks. Despite their solid fundamentals,
however, the positive performance of apartment REITs fell short of the
overall REIT market during the 12-month period. Worries about supply, a
recovering single-family housing picture, and slowing rent growth were
factors in the apartment REIT sector's underperformance of the overall REIT
market.
In recent years, both the office and industrial sectors have experienced
slow improvement in vacancy rates, and market rents began to move off their
lows. In the fourth quarter of 2012, however, their fundamentals diverged,
as sluggish job growth translated into anemic demand for office leasing.
Thus, the return of office REITs in 2012 lagged the overall REIT market. In
contrast, after a strong showing in the fourth quarter, industrial REITs
outpaced the broader REIT market, returning 31%. Industrial REIT
fundamentals improved during the course of 2012, with occupancies climbing
faster as the year went on and leasing spreads turning positive. Industrial
REITs also are beginning to pursue development opportunities, particularly
in the built-to-suit space. Vacancy rates have remained higher than normal,
but they have been coming down more rapidly than vacancies in the office
REIT sector in recent quarters.
Regional malls were the second-strongest property segment in 2012, with a
gain of 28% -- well ahead of the overall REIT market. Fundamentals for
regional malls recovered early in the 12-month period, especially at the
higher end of the quality spectrum, where affluent consumers have been
spending. With new supply in check, mall occupancies up by 2% for the year,
and several major mall REITs pursuing external growth in both international
markets and the outlet space, the future looks bright for regional mall
REITs, in our opinion.
In shopping center REITs, strip malls were among the top-performing segments
of the REIT market in 2012. Rebounding off a disappointing 2011, investors
began to see some signs of hope as vacancy rates and rents
6 Pioneer Real Estate Shares | Annual Report | 12/31/12
began to slowly improve. Current fundamentals remain challenging, however,
with vacancy at near-peak levels, but a recovery appears to be under way --
assuming the U.S. economy does not reverse course.
Hotels performed well fundamentally during 2012, with revenue-peravailable
room up by about 6% to 8% from 2011 levels. Occupancies are near long-term
norms, but we think that there is room for continued improvement in rents.
Luxury hotel brands and gateway cities continued to outperform during the
year, though the gap between the groups and the rest of the market tightened
in 2012. With a return of a little more than 12%, hotel REITs lagged the
broader REIT market during the 12-month period.
Fundamentals of health care REITs have been strong, though much of that
strength already has been discounted in their prices, as health care REITs
have been trading at large premiums to the market value of the underlying
real estate owned, in our opinion. That said, health care REITs have done
exactly what a sector with richly valued equity should do: they have been
issuing equity and making acquisitions in the private market. Moreover,
demand for the space owned by those companies is less sensitive to shifts in
the economic climate, and that defensive characteristic of health care REITs
helped them outperform late in the 12-month period as the "fiscal cliff"
negotiations and the accompanying market uncertainty increased. The late-
year rally helped health care REITs to outperform the overall REIT market
over the full 12-month period.
Regarding notable changes to the portfolio, given the market's overall
improvement and changes in relative value, we reduced the Fund's underweight
position in apartment REITs during the second half of 2012, and also reduced
the overweight positions in shopping centers and data center REITs.
Q In your view, what trends might bode well for the real estate market in
2013?
A While the real estate sector typically needs job growth in order to thrive,
it also tends to benefit from extremely low interest rates and new
construction levels that are well below historical norms. Today, the REIT
market finds itself in such an environment, and, in our opinion, that could
provide a solid foundation for earnings growth and rising asset valuations
for the REIT asset class in the year ahead.
Given the Federal Reserve Board's public commitment to keeping interest
rates at very low levels, we believe REITs currently offer competitive
yields relative to other income-producing investments. Furthermore, the
tangible, hard-asset characteristics of REITs appear attractive at the
present time, given that, unlike most other yield-generating alternatives,
REITs historically have demonstrated an ability to maintain their value in
the face of inflation and higher interest rates.
Pioneer Real Estate Shares | Annual Report | 12/31/12 7
Please refer to the Schedule of Investments on pages 17-19 for a full listing of
Fund securities.
The Fund invests in REIT securities, the value of which can fall for a variety
of reasons, such as declines in rental income, fluctuating interest rates, poor
property management, environmental liabilities, uninsured damage, increased
competition, or changes in real estate tax laws.
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 or sectors.
These risks may increase share price volatility.
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 opinion as of the date of this report. These statements should not
be relied upon for any other purposes.
8 Pioneer Real Estate Shares | Annual Report | 12/31/12
Portfolio Summary | 12/31/12
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 98.8%
Temporary Cash Investments 1.2%
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Apartment 15.4%
Regional Mall 15.0%
Health Care 12.1%
Office 11.0%
Diversified 9.7%
Shopping Center 8.9%
Storage 8.5%
Industrial 8.2%
Hotel 6.1%
Triple Net Lease 3.5%
Manufactured Home 1.6%
10 Largest Holdings*
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
1. Simon Property Group, Inc. 9.77%
--------------------------------------------------------------------------------
2. Equity Residential Property Trust, Inc. 5.78
--------------------------------------------------------------------------------
3. Public Storage, Inc. 5.52
--------------------------------------------------------------------------------
4. Prologis, Inc. 4.98
--------------------------------------------------------------------------------
5. Ventas, Inc. 4.89
--------------------------------------------------------------------------------
6. Boston Properties, Inc. 4.68
--------------------------------------------------------------------------------
7. HCP, Inc. 4.59
--------------------------------------------------------------------------------
8. The Macerich Co. 4.56
--------------------------------------------------------------------------------
9. AvalonBay Communities, Inc. 4.50
--------------------------------------------------------------------------------
10. Vornado Realty Trust 3.81
--------------------------------------------------------------------------------
* 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 securities listed.
Pioneer Real Estate Shares | Annual Report | 12/31/12 9
Prices and Distributions | 12/31/12
Net Asset Value per Share
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class 12/31/12 12/31/11
--------------------------------------------------------------------------------
A $24.76 $21.79
--------------------------------------------------------------------------------
B $24.43 $21.50
--------------------------------------------------------------------------------
C $24.45 $21.53
--------------------------------------------------------------------------------
Y $24.74 $21.78
--------------------------------------------------------------------------------
Distributions per Share: 1/1/12 - 12/31/12
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.4462 $ -- $ --
--------------------------------------------------------------------------------
B $0.1247 $ -- $ --
--------------------------------------------------------------------------------
C $0.2494 $ -- $ --
--------------------------------------------------------------------------------
Y $0.5670 $ -- $ --
--------------------------------------------------------------------------------
Index Definition
--------------------------------------------------------------------------------
The MSCI U.S. REIT Index is a widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any fees,
expenses or sales charges. It is not possible to invest directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 11-14.
10 Pioneer Real Estate Shares | Annual Report | 12/31/12
Performance Update | 12/31/12 Class A Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares at public offering price, compared
to that of the Morgan Stanley Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of December 31, 2012)
--------------------------------------------------------------------------------
Net Asset Public Offering
Period Value (NAV) Price (POP)
--------------------------------------------------------------------------------
10 Years 11.39% 10.73%
5 Years 5.35 4.11
1 Year 15.75 9.09
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.59%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
12/31/2002 $ 9,425 $ 10,000
12/31/2003 $ 12,564 $ 13,674
12/31/2004 $ 16,994 $ 17,980
12/31/2005 $ 19,507 $ 20,161
12/31/2006 $ 26,488 $ 27,403
12/31/2007 $ 21,350 $ 22,795
12/31/2008 $ 13,172 $ 14,140
12/31/2009 $ 17,144 $ 18,185
12/31/2010 $ 21,988 $ 23,364
12/31/2011 $ 23,944 $ 25,395
12/31/2012 $ 27,713 $ 29,907
Call 1-800-225-6292 or visit us.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.
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.
Pioneer Real Estate Shares | Annual Report | 12/31/12 11
Performance Update | 12/31/12 Class B Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares, compared to that of the Morgan
Stanley Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of December 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 10.21% 10.21%
5 Years 4.04 4.04
1 Year 14.22 10.22
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.75%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
12/31/2002 $ 10,000 $ 10,000
12/31/2003 $ 13,230 $ 13,674
12/31/2004 $ 17,754 $ 17,980
12/31/2005 $ 20,189 $ 20,161
12/31/2006 $ 27,156 $ 27,403
12/31/2007 $ 21,686 $ 22,795
12/31/2008 $ 13,226 $ 14,140
12/31/2009 $ 16,979 $ 18,185
12/31/2010 $ 21,496 $ 23,364
12/31/2011 $ 23,145 $ 25,395
12/31/2012 $ 26,437 $ 29,907
Call 1-800-225-6292 or visit us.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
(CDSC). The maximum CDSC for Class B shares is 4% and declines over five years.
For more complete information, please see the prospectus.
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.
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 taxes that a
shareowner would pay on Fund distributions or the redemption of Fund shares.
12 Pioneer Real Estate Shares | Annual Report | 12/31/12
Performance Update | 12/31/12 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Real Estate Shares, compared to that of the Morgan
Stanley Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of December 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 10.46% 10.46%
5 Years 4.43 4.43
1 Year 14.75 14.75
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.42%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
12/31/2002 $ 10,000 $ 10,000
12/31/2003 $ 13,236 $ 13,674
12/31/2004 $ 17,772 $ 17,980
12/31/2005 $ 20,234 $ 20,161
12/31/2006 $ 27,235 $ 27,403
12/31/2007 $ 21,769 $ 22,795
12/31/2008 $ 13,312 $ 14,140
12/31/2009 $ 17,156 $ 18,185
12/31/2010 $ 21,802 $ 23,364
12/31/2011 $ 23,560 $ 25,395
12/31/2012 $ 27,035 $ 29,907
Call 1-800-225-6292 or visit us.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.
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.
Pioneer Real Estate Shares | Annual Report | 12/31/12 13
Performance Update | 12/31/12 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Pioneer Real Estate Shares, compared to that of the Morgan
Stanley Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of December 31, 2012)
--------------------------------------------------------------------------------
If If
Period Held Redeemed
--------------------------------------------------------------------------------
10 Years 12.04% 12.04%
5 Years 6.04 6.04
1 Year 16.28 16.28
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2012)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.00%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Real Estate Shares MSCI U.S. REIT Index
12/31/2002 $ 5,000,000 $ 5,000,000
12/31/2003 $ 6,707,939 $ 6,837,193
12/31/2004 $ 9,120,684 $ 8,989,931
12/31/2005 $ 10,521,943 $ 10,080,669
12/31/2006 $ 14,354,958 $ 13,701,622
12/31/2007 $ 11,623,545 $ 11,397,598
12/31/2008 $ 7,218,569 $ 7,069,957
12/31/2009 $ 9,483,661 $ 9,092,592
12/31/2010 $ 12,231,286 $ 11,682,023
12/31/2011 $ 13,404,868 $ 12,697,520
12/31/2012 $ 15,587,683 $ 14,953,279
Call 1-800-225-6292 or visit us.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.
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.
14 Pioneer Real Estate Shares | Annual Report | 12/31/12
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 Real Estate Shares
Based on actual returns from July 1, 2012 through December 31, 2012.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 7/1/12
--------------------------------------------------------------------------------
Ending Account $1,022.44 $1,016.37 $1,018.19 $1,024.85
Value on 12/31/12
--------------------------------------------------------------------------------
Expenses Paid $ 7.73 $ 14.45 $ 12.02 $ 5.24
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.52%, 2.85%,
2.37%, and 1.03% 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 Real Estate Shares | Annual Report | 12/31/12 15
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 Real Estate Shares
Based on a hypothetical 5% per year return before expenses, reflecting the
period from July 1, 2012 through December 31, 2012.
--------------------------------------------------------------------------------
Share Class A B C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value on 7/1/12
--------------------------------------------------------------------------------
Ending Account $1,017.50 $1.010.81 $1.013.22 $1.019.96
Value on 12/31/12
--------------------------------------------------------------------------------
Expenses Paid $ 7.71 $ 14.41 $ 11.99 $ 5.23
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio of 1.52%, 2.85%,
2.37%, and 1.03% 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).
16 Pioneer Real Estate Shares | Annual Report | 12/31/12
Schedule of Investments | 12/31/12
---------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------
COMMON STOCKS -- 97.9%
CONSUMER SERVICES -- 1.4%
Hotels, Resorts & Cruise Lines -- 1.4%
32,600 Starwood Hotels & Resorts Worldwide, Inc. $ 1,869,936
--------------
Total Consumer Services $ 1,869,936
---------------------------------------------------------------------------------------
REAL ESTATE -- 96.5%
Diversified REITs -- 9.3%
53,600 American Assets Trust, Inc. $ 1,497,048
114,800 First Potomac Realty Trust 1,418,928
76,200 Liberty Property Trust 2,725,674
99,200 Retail Opportunity Investments Corp. 1,275,712
19,500 Select Income Real Estate Investment Trust (144A) 483,015
62,400 Vornado Realty Trust 4,996,992
--------------
$ 12,397,369
---------------------------------------------------------------------------------------
Industrial REITs -- 4.9%
178,900 Prologis, Inc. $ 6,528,061
---------------------------------------------------------------------------------------
Office REITs -- 13.4%
34,300 Alexandria Real Estate Equities, Inc. $ 2,377,676
114,500 BioMed Realty Trust, Inc. 2,213,285
58,000 Boston Properties, Inc. 6,136,980
90,400 DuPont Fabros Technology, Inc. 2,184,064
85,000 Kilroy Realty Corp. 4,026,450
54,200 Piedmont Office Realty Trust, Inc. (144A) 978,310
--------------
$ 17,916,765
---------------------------------------------------------------------------------------
Residential REITs -- 16.6%
41,900 American Campus Communities, Inc. $ 1,932,847
43,500 AvalonBay Communities, Inc. 5,898,165
27,200 BRE Properties, Inc. (144A) 1,382,576
49,000 Camden Property Trust 3,342,290
31,000 Equity Lifestyle Properties, Inc. 2,085,990
133,800 Equity Residential Property Trust, Inc. 7,582,446
--------------
$ 22,224,314
---------------------------------------------------------------------------------------
Retail REITs -- 23.4%
170,200 DDR Corp. $ 2,665,332
31,900 Federal Realty Investment Trust 3,318,238
43,000 National Retail Properties, Inc. 1,341,600
64,300 Ramco-Gershenson Properties Trust 855,833
58,100 Regency Centers Corp. 2,737,672
66,500 Retail Properties of America, Inc. (144A) 796,005
81,000 Simon Property Group, Inc. 12,805,290
11,600 Taubman Centers, Inc. 913,152
102,500 The Macerich Co. 5,975,750
--------------
$ 31,408,872
---------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/12 17
Schedule of Investments | 12/31/12 (continued)
---------------------------------------------------------------------------------------
Shares Value
---------------------------------------------------------------------------------------
Specialized REITs -- 26.9%
83,400 CubeSmart $ 1,215,138
60,100 EPR Properties (144A) 2,771,211
76,300 Extra Space Storage, Inc. 2,776,557
133,300 HCP, Inc. 6,022,494
23,900 Health Care Real Estate Investment Trust, Inc. 1,464,831
266,200 Host Hotels & Resorts, Inc. 4,171,354
83,200 Omega Healthcare Investors, Inc. 1,984,320
22,500 Pebblebrook Hotel Trust 519,750
49,900 Public Storage, Inc. 7,233,504
75,300 RLJ Lodging Trust (144A) 1,458,561
99,000 Ventas, Inc. 6,407,280
--------------
$ 36,025,000
---------------------------------------------------------------------------------------
Real Estate Operating Companies -- 2.0%
64,500 Brookfield Office Properties, Inc. $ 1,097,145
101,100 Forest City Enterprises, Inc.* 1,632,765
--------------
$ 2,729,910
--------------
Total Real Estate $ 129,230,291
---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $65,314,502) $ 131,100,227
---------------------------------------------------------------------------------------
Principal
Amount ($)
---------------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS -- 1.1%
Repurchase Agreement -- 1.1%
1,500,000 Deutsche Bank AG, 0.15%, dated 12/31/12, repurchase
price of $1,500,000 plus accrued interest on 1/2/13
collateralized by the following:
$1,058,477 U.S. Treasury Bond, 11.25%, 2/15/15
$471,524 U.S. Treasury Note, 0.75%, 12/31/17 $ 1,500,000
---------------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $1,500,000) $ 1,500,000
---------------------------------------------------------------------------------------
TOTAL INVESTMENT IN SECURITIES -- 99.0%
(Cost $66,814,502) (a) $ 132,600,227
---------------------------------------------------------------------------------------
OTHER ASSETS & LIABILITIES -- 1.0% $ 1,390,202
---------------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $ 133,990,429
=======================================================================================
The accompanying notes are an integral part of these financial statements.
18 Pioneer Real Estate Shares | Annual Report | 12/31/12
* Non-income producing security.
REIT Real Estate Investment Trust.
(144A) Security is exempt from registration under Rule 144A of the Securities
Act of 1933. Such securities may be resold normally to qualified
institutional buyers in a transaction exempt from registration. At
December 31, 2012, the value of these securities amounted to $7,869,678
or 5.9% of total net assets.
(a) At December 31, 2012, the net unrealized gain on investments based on
cost for federal income tax purposes of $70,307,700 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 62,720,960
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (428,433)
--------------
Net unrealized gain $ 62,292,527
==============
Purchases and sales of securities (excluding temporary cash investments) for the
year ended December 31, 2012 aggregated $17,775,454 and $9,449,089,
respectively.
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.) See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments) See Notes to
Financial Statements -- Note 1A.
Generally, equity securities are categorized as Level 1, fixed income securities
and senior loans as Level 2 and securities valued using fair value methods
(other than prices supplied by independent pricing services) as Level 3. See
Notes to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of December 31, 2012, in
valuing the Fund's investments:
--------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
--------------------------------------------------------------------------------
Common Stocks $131,100,227 $ -- $ -- $131,100,227
Repurchase Agreement -- 1,500,000 -- 1,500,000
--------------------------------------------------------------------------------
Total $131,100,227 $1,500,000 $ -- $132,600,227
================================================================================
During the year ended December 31, 2012, there were no transfers between Levels
1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/12 19
Statement of Assets and Liabilities | 12/31/12
ASSETS:
Investment in securities (cost $66,814,502) $132,600,227
Cash 532,887
Receivables --
Investment securities sold 57,760
Fund shares sold 631,453
Dividends 502,742
Other 45,385
--------------------------------------------------------------------------------
Total assets $134,370,454
================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 36,488
Fund shares repurchased 237,934
Due to affiliates 58,401
Accrued expenses 47,202
--------------------------------------------------------------------------------
Total liabilities $ 380,025
================================================================================
NET ASSETS:
Paid-in capital $ 78,004,456
Accumulated net realized loss (9,799,752)
Net unrealized gain on investments 65,785,725
--------------------------------------------------------------------------------
Total net assets $133,990,429
================================================================================
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $84,309,690/3,404,839 shares) $ 24.76
Class B (based on $5,403,534/221,213 shares) $ 24.43
Class C (based on $12,667,239/518,182 shares) $ 24.45
Class Y (based on $31,609,966/1,277,595 shares) $ 24.74
MAXIMUM OFFERING PRICE:
Class A ($24.76 (divided by) 94.25%) $ 26.27
================================================================================
The accompanying notes are an integral part of these financial statements.
20 Pioneer Real Estate Shares | Annual Report | 12/31/12
Statement of Operations
For the Year Ended 12/31/12
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $5,380) $ 2,970,839
Interest 8,879
---------------------------------------------------------------------------------------------
Total investment income $ 2,979,718
---------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 1,011,490
Transfer agent fees
Class A 160,549
Class B 33,869
Class C 31,733
Class Y 3,216
Distribution fees
Class A 208,849
Class B 61,720
Class C 122,455
Shareholder communications expense 124,118
Administrative reimbursements 43,107
Custodian fees 9,761
Registration fees 67,446
Professional fees 52,296
Printing expense 31,427
Fees and expenses of nonaffiliated Trustees 7,630
Miscellaneous 14,849
---------------------------------------------------------------------------------------------
Total expenses $ 1,984,515
---------------------------------------------------------------------------------------------
Net investment income $ 995,203
---------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 3,410,598
---------------------------------------------------------------------------------------------
Change in net unrealized gain on investments $13,072,842
---------------------------------------------------------------------------------------------
Net gain on investments $16,483,440
---------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $17,478,643
=============================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/12 21
Statements of Changes in Net Assets
----------------------------------------------------------------------------------------------
Year Ended Year Ended
12/31/12 12/31/11
----------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 995,203 $ 1,371,705
Net realized gain on investments 3,410,598 21,213,989
Change in net unrealized gain (loss) on investments 13,072,842 (10,371,241)
----------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 17,478,643 $ 12,214,453
----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.45 and $0.41 per share, respectively) $ (1,545,555) $ (1,476,380)
Class B ($0.12 and $0.17 per share, respectively) (30,027) (57,231)
Class C ($0.25 and $0.23 per share, respectively) (129,768) (131,386)
Class Y ($0.57 and $0.54 per share, respectively) (619,229) (765,314)
----------------------------------------------------------------------------------------------
Total distributions to shareowners $ (2,324,579) $ (2,430,311)
----------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale or exchange of shares $ 38,896,789 $ 21,603,687
Reinvestment of distributions 1,860,445 1,637,479
Cost of shares repurchased (30,922,652) (66,954,994)
----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from Fund
share transactions $ 9,834,582 $ (43,713,828)
----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 24,988,646 $ (33,929,686)
NET ASSETS:
Beginning of year 109,001,783 142,931,469
----------------------------------------------------------------------------------------------
End of year $133,990,429 $ 109,001,783
==============================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Real Estate Shares | Annual Report | 12/31/12
----------------------------------------------------------------------------------------
'12 Shares '12 Amount '11 Shares '11 Amount
----------------------------------------------------------------------------------------
Class A
Shares sold 701,322 $ 17,036,848 752,211 $ 16,055,487
Reinvestment of distributions 61,095 1,476,444 67,192 1,402,649
Less shares repurchased (813,560) (19,502,701) (1,064,270) (22,453,234)
----------------------------------------------------------------------------------------
Net decrease (51,143) $ (989,409) (244,867) $ (4,995,098)
========================================================================================
Class B
Shares exchanged 45,607 $ 1,086,266 59,519 $ 1,244,965
Reinvestment of distributions 1,248 29,825 2,684 55,800
Less shares repurchased (135,270) (3,172,798) (174,139) (3,620,869)
----------------------------------------------------------------------------------------
Net decrease (88,415) $ (2,056,707) (111,936) $ (2,320,104)
========================================================================================
Class C
Shares sold 129,597 $ 3,110,571 109,995 $ 2,309,514
Reinvestment of distributions 5,140 123,134 5,923 122,679
Less shares repurchased (137,583) (3,256,295) (194,374) (4,012,899)
----------------------------------------------------------------------------------------
Net decrease (2,846) $ (22,590) (78,456) $ (1,580,706)
========================================================================================
Class Y
Shares sold 739,079 $ 17,663,104 93,538 $ 1,993,721
Reinvestment of distributions 9,524 231,042 2,700 56,351
Less shares repurchased (197,073) (4,990,858) (1,667,165) (36,867,992)
----------------------------------------------------------------------------------------
Net increase (decrease) 551,530 $ 12,903,288 (1,570,927) $ (34,817,920)
========================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/12 23
Financial Highlights
----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
----------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 21.79 $ 20.41 $ 16.24 $ 13.00 $ 21.94
----------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.45 $ 0.42 $ 0.21 $ 0.35 $ 0.43
Net realized and unrealized gain (loss) on investments 2.97 1.37 4.34 3.37 (8.62)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.42 $ 1.79 $ 4.55 $ 3.72 $ (8.19)
----------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.45) (0.41) (0.22) (0.34) (0.46)
Net realized gain -- -- -- -- --
Tax return of capital -- -- (0.16) (0.14) (0.29)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.97 $ 1.38 $ 4.17 $ 3.24 $ (8.94)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.76 $ 21.79 $ 20.41 $ 16.24 $ 13.00
================================================================================================================
Total return* 15.75% 8.90% 28.25% 30.15% (38.31)%
Ratio of net expenses to average net assets+ 1.52% 1.59% 1.62% 1.85% 1.63%
Ratio of net investment income to average net assets+ 1.87% 1.94% 1.17% 2.77% 2.10%
Portfolio turnover rate 8% 8% 14% 23% 18%
Net assets, end of period (in thousands) $84,310 $75,318 $75,520 $67,510 $55,353
================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
24 Pioneer Real Estate Shares | Annual Report | 12/31/12
-------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
-------------------------------------------------------------------------------------------------------------------------
Class B
Net asset value, beginning of period $21.50 $20.13 $ 16.03 $12.84 $ 21.68
-------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.12 $ 0.16 $ (0.04) $ 0.17 $ 0.19
Net realized and unrealized gain (loss) on investments 2.93 1.38 4.29 3.34 (8.50)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.05 $ 1.54 $ 4.25 $ 3.51 $ (8.31)
-------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.12) (0.17) (0.09) (0.18) (0.24)
Net realized gain --(a) --(a) -- -- --
Tax return of capital -- -- (0.06) (0.14) (0.29)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.93 $ 1.37 $ 4.10 $ 3.19 $ (8.84)
-------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $24.43 $21.50 $ 20.13 $16.03 $ 12.84
=========================================================================================================================
Total return* 14.22% 7.67% 26.60% 28.38% (39.01)%
Ratio of net expenses to average net assets+ 2.85% 2.75% 2.90% 3.25% 2.72%
Ratio of net investment income (loss) to average net assets+ 0.48% 0.73% (0.13)% 1.41% 0.89%
Portfolio turnover rate 8% 8% 14% 23% 18%
Net assets, end of period (in thousands) $5,404 $6,657 $ 8,484 $8,753 $ 8,428
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 2.85% 2.75% 2.90% 3.25% 2.72%
Net investment income (loss) 0.48% 0.73% (0.13)% 1.41% 0.89%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 2.85% 2.75% 2.90% 3.25% 2.71%
Net investment income (loss) 0.48% 0.73% (0.13)% 1.41% 0.90%
=========================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
(a) Dividends and/or capital gain distributions may continue to be reinvested in
Class B shares, and shareholders may exchange their Class B shares for Class
B shares of other Pioneer Funds, as permitted by existing exchange
privileges.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/12 25
Financial Highlights (continued)
----------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
----------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 21.53 $ 20.15 $ 16.06 $12.86 $ 21.72
----------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.24 $ 0.23 $ 0.06 $ 0.22 $ 0.25
Net realized and unrealized gain (loss) on investments 2.93 1.38 4.27 3.34 (8.53)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.17 $ 1.61 $ 4.33 $ 3.56 $ (8.28)
----------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.25) (0.23) (0.14) (0.22) (0.29)
Net realized gain -- -- -- -- --
Tax return of capital -- -- (0.10) (0.14) (0.29)
----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.92 $ 1.38 $ 4.09 $ 3.20 $ (8.86)
----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.45 $ 21.53 $ 20.15 $16.06 $ 12.86
======================================================================================================================
Total return* 14.75% 8.07% 27.08% 28.87% (38.85)%
Ratio of net expenses to average net assets+ 2.37% 2.42% 2.50% 2.89% 2.50%
Ratio of net investment income to average net assets+ 1.03% 1.09% 0.31% 1.76% 1.18%
Portfolio turnover rate 8% 8% 14% 23% 18%
Net assets, end of period (in thousands) $12,667 $11,216 $12,082 $9,153 $ 7,619
Ratios with no waiver of fees and assumption of expenses by the
Adviser and no reduction for fees paid indirectly:
Total expenses 2.37% 2.42% 2.50% 2.89% 2.50%
Net investment income 1.03% 1.09% 0.31% 1.76% 1.18%
Ratios with waiver of fees and assumption of expenses by the
Adviser and reduction for fees paid indirectly:
Net expenses 2.37% 2.42% 2.50% 2.89% 2.49%
Net investment income 1.03% 1.09% 0.31% 1.76% 1.19%
======================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Real Estate Shares | Annual Report | 12/31/12
----------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
12/31/12 12/31/11 12/31/10 12/31/09 12/31/08
----------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 21.78 $ 20.39 $ 16.23 $ 12.98 $ 21.90
----------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income $ 0.56 $ 0.56 $ 0.33 $ 0.44 $ 0.54
Net realized and unrealized gain (loss) on investments 2.97 1.37 4.32 3.40 (8.59)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 3.53 $ 1.93 $ 4.65 $ 3.84 $ (8.05)
----------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income (0.57) (0.54) (0.28) (0.45) (0.58)
Net realized gain -- -- -- -- --
Tax return of capital -- -- (0.21) (0.14) (0.29)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ 2.96 $ 1.39 $ 4.16 $ 3.25 $ (8.92)
----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.74 $ 21.78 $ 20.39 $ 16.23 $ 12.98
================================================================================================================
Total return* 16.28% 9.60% 28.97% 31.38% (37.90)%
Ratio of net expenses to average net assets+ 1.03% 1.00% 1.00% 1.06% 1.02%
Ratio of net investment income to average net assets+ 2.48% 2.35% 1.79% 3.49% 2.76%
Portfolio turnover rate 8% 8% 14% 23% 18%
Net assets, end of period (in thousands) $31,610 $15,811 $46,845 $42,533 $26,233
================================================================================================================
* 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.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Annual Report | 12/31/12 27
Notes to Financial Statements | 12/31/12
1. Organization and Significant Accounting Policies
Pioneer Real Estate Shares (the Fund) is 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 to seek long-term
growth of capital. Current income is a secondary objective.
The Fund offers four classes of shares designated as Class A, Class B, Class C
and Class Y shares. Effective as of the close of business on December 31, 2009,
Class B shares are no longer offered to new or existing shareholders, except
that dividends and/or capital gain distributions may continue to be reinvested
in Class B shares, and shareholders may exchange their Class B shares for Class
B shares of other Pioneer funds, as permitted by existing exchange privileges.
Each class of shares represents an interest in the same portfolio of investments
of the Fund and has identical rights (based on relative net asset values) to
assets and liquidation proceeds. Share classes can bear different rates of
class-specific fees and expenses such as transfer agent and distribution fees.
Differences in class-specific fees and expenses will result in differences in
net investment income and, therefore, the payment of different dividends from
net investment income earned by each class. The Amended and Restated Declaration
of Trust of the Fund gives the Board the flexibility to specify either per-share
voting or dollar-weighted voting when submitting matters for shareholder
approval. Under per-share voting, each share of a class of the Fund is entitled
to one vote. Under dollar-weighted voting, a shareholder's voting power is
determined not by the number of shares owned, but by the dollar value of the
shares on the record date. Each share class has exclusive voting rights with
respect to matters affecting only that class, including with respect to the
distribution plan for that class. There is no distribution plan for Class Y
shares. Class B shares convert to Class A shares approximately eight years after
the date of purchase.
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
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
28 Pioneer Real Estate Shares | Annual Report | 12/31/12
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 that have traded on an exchange are valued
at the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued at the mean
between the last bid and asked prices. Short-term fixed income securities
with remaining maturities of sixty days or less generally are valued at
amortized cost. Shares of money market mutual funds are valued at their net
asset value.
Trading in foreign securities is substantially completed each day at various
times prior to the close of the NYSE. The values of such securities used in
computing the net asset value of the Fund's shares are determined as of such
times.
Securities for which independent pricing services are unable to supply
prices or for which market prices and/or quotations are not readily
available or are considered to be unreliable are valued by or at the
direction or with the approval of the Valuation Committee using fair value
methods pursuant to procedures adopted by the Board of Trustees. The
Valuation Committee is comprised of certain members of the Board of
Trustees. The Fund may use fair value methods if it is determined that a
significant event has occurred after the close of the exchange or market on
which the security trades and prior to the determination of the Fund's net
asset value. Examples of a significant event might include political or
economic news, corporate restructurings, natural disasters, terrorist
activity or trading halts. Thus, the valuation of the Fund's securities may
differ significantly from exchange prices and such differences could be
material. Pioneer Investment Management, Inc. (PIM) is responsible for
monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee.
At December 31, 2012, there were no securities that were valued using fair
value methods (other than securities that were valued using prices supplied
by independent pricing services). Inputs used when applying fair value
methods to value a security may include credit ratings, the financial
condition of the company, current market conditions and comparable
securities.
Pioneer Real Estate Shares | Annual Report | 12/31/12 29
Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities where the ex-dividend date may have passed
are recorded as soon as the Fund 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. Dividend and
interest income are reported 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. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no provision for federal income taxes is required.
As of December 31, 2012, the Fund did not have any interest and penalties
related to uncertain tax positions, which, if applicable, would be recorded
as an income tax expense in the Statement of Operations. Tax years for the
prior three fiscal years are subject to examination by Federal and State tax
authorities.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. generally accepted accounting principles.
Distributions in excess of net investment income or net realized gains are
temporary overdistributions for financial statement purposes resulting from
differences in the recognition or classification of income or distributions
for financial statement and tax purposes. Capital accounts within the
financial statements are adjusted for permanent book/tax differences to
reflect tax character, but are not adjusted for temporary differences. At
December 31, 2012, the Fund reclassified $1,329,376 to decrease paid-in
capital and $1,329,376 to decrease distributions in excess of net investment
income to reflect permanent book/tax differences. These adjustments have no
impact on net assets or the results of operations.
At December 31, 2012, the Fund had a net capital loss carryforward of
$6,306,554 of which the following amounts will expire in 2017 and 2018 if
not utilized: $5,829,883 in 2017 and $476,671 in 2018.
30 Pioneer Real Estate Shares | Annual Report | 12/31/12
The tax character of distributions paid during the years ended December 31,
2012 and December 31, 2011 was as follows:
----------------------------------------------------------------------------
2012 2011
----------------------------------------------------------------------------
Distributions paid from:
Ordinary income $2,324,579 $2,430,311
----------------------------------------------------------------------------
Total $2,324,579 $2,430,311
============================================================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2012:
----------------------------------------------------------------------------
2012
----------------------------------------------------------------------------
Distributable earnings:
Capital loss carryforward $(6,306,554)
Net unrealized gain 62,292,527
----------------------------------------------------------------------------
Total $55,985,973
============================================================================
The difference between book-basis and tax-basis net unrealized gain is
attributable to the tax deferral of losses on wash sales.
C. 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 $15,812 in underwriting commissions on the sale of Class A shares
during the year ended December 31, 2012.
D. 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 its 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 do not pay distribution fees. All
expenses and fees paid to the transfer agent, Pioneer Investment Management
Shareholder Services, Inc. (PIMSS), for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
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 and at the same time, except that net
investment income dividends to Class A, Class B, Class C and Class Y shares
can reflect different transfer agent and distribution expense rates.
Pioneer Real Estate Shares | Annual Report | 12/31/12 31
E. Risks
Because the Fund may invest a substantial portion of its assets in Real
Estate Investment Trusts (REITs), the Fund may be subject to certain risks
associated with direct investments in REITs. REITs may be affected by
changes in the value of their underlying properties and by defaults of their
borrowers or tenants. REITs depend generally on their ability to generate
cash flow to make distributions to shareowners, and certain REITs have
self-liquidation provisions by which mortgages held may be paid in full and
distributions of capital returns may be made at any time. In addition, the
performance of a REIT may be affected by its failure to qualify for tax-free
pass through of income under the Internal Revenue Code or its failure to
maintain exemption from registration under the Investment Company Act of
1940. The Fund's prospectus contains unaudited information regarding the
Fund's principal risks. Please refer to that document when considering the
Fund's principal risks.
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest, is
required to be equal to or in excess of the repurchase price. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian or a subcustodian of the Fund. PIM is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredit, manages the Fund's
portfolio. Management fees are calculated daily at the annual rate of 0.80% of
the Fund's average daily net assets up to $1 billion and 0.75% on assets over $1
billion. For the year ended December 31, 2012, the effective management fee
(excluding waivers and/or assumption of expenses) was equal to 0.80% of the
Fund's daily net assets. PIM pays a portion of the fee it receives from the Fund
to AEW Capital Management, L.P. as compensation for sub-advisory services to the
Fund.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$14,655 in management fees, administrative costs and certain other
reimbursements payable to PIM at December 31, 2012.
Effective March 5, 2012 PIM has retained Brown Brothers Harriman & Co. to
provide certain sub-administration and accounting services to the Fund.
32 Pioneer Real Estate Shares | Annual Report | 12/31/12
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.
In addition, the Fund reimburses PIMSS for out-of-pocket expenses incurred by
PIMSS related to shareholder communications activities such as proxy and
statement mailings, outgoing phone calls and omnibus relationship contracts. For
the year ended December 31, 2012, such out-of-pocket expenses by class of shares
were as follows:
--------------------------------------------------------------------------------
Shareholder Communications:
--------------------------------------------------------------------------------
Class A $ 80,256
Class B 19,916
Class C 16,145
Class Y 7,801
--------------------------------------------------------------------------------
Total $124,118
================================================================================
Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $39,499 in transfer agent fees and out-of-pocket reimbursements
payable to PIMSS at December 31, 2012.
4. Distribution Plan
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 with respect to its Class A, Class B and Class C
shares. 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
Class A shares. Pursuant to the Plan, the Fund also pays PFD 1.00% of the
average daily net assets attributable to Class B and Class C shares. The fee for
Class B and Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class C
shares. Included in "Due to affiliates" reflected on the Statement of Assets and
Liabilities is $4,247 in distribution fees payable to PFD at December 31, 2012.
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 12 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
Pioneer Real Estate Shares | Annual Report | 12/31/12 33
CDSC of 1.00%, based on the lower of cost or market value of shares being
redeemed. Shares purchased as part of an exchange remain subject to any CDSC
that applied to the original purchase of those shares. There is no CDSC for
Class Y shares. Proceeds from the CDSCs are paid to PFD. For the year ended
December 31, 2012, CDSCs in the amount of $4,187 were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS which
may result in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended December 31, 2012, the Fund's expenses
were not reduced under such arrangements.
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), participates in a 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 the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The
credit facility in effect until January 20, 2012 was in the amount of $165
million. Under such facility, interest on borrowings was payable at the higher
of the London Interbank Offered Rate (LIBOR) on the borrowing date plus 1.25% on
an annualized basis or the Federal Funds Rate on the borrowing date plus 1.25%
on an annualized basis. The credit facility in effect as of February 15, 2012 is
in the amount of $215 million. Under such facility, depending on the type of
loan, interest on borrowings is payable at LIBOR plus 0.90% on an annualized
basis, or the Alternate Base Rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the Federal Funds Rate on the borrowing date and (c) 2% plus the overnight
Euro dollar rate on the borrowing date. The Funds pay an annual commitment fee
to participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the year ended December 31, 2012, the Fund had no borrowings
under a credit facility.
34 Pioneer Real Estate Shares | Annual Report | 12/31/12
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareowners of
Pioneer Real Estate Shares:
--------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities of Pioneer
Real Estate Shares (the "Fund"), including the schedule of investments, as of
December 31, 2012, 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 five years in
the period then ended. 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 December 31, 2012, 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 Real Estate Shares at December 31, 2012, 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 financial highlights for each of the five years in
the period then ended, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
February 25, 2013
Pioneer Real Estate Shares | Annual Report | 12/31/12 35
Approval of Investment Advisory and Sub-Advisory Agreements
Pioneer Investment Management, Inc. (PIM) serves as the investment adviser to
Pioneer Real Estate Shares (the Fund) pursuant to an investment advisory
agreement between PIM and the Fund. PIM has retained AEW Capital Management,
L.P. (AEW) to serve as the sub-adviser to the Fund pursuant to a sub-advisory
agreement between PIM and the sub-adviser. In order for PIM and AEW to remain
the investment adviser and sub-adviser of the Fund, respectively, the Trustees
of the Fund must determine annually whether to renew the investment advisory
agreement and the sub-advisory agreement for the Fund.
The contract review process began in March 2012 as the Trustees of the Fund
agreed on, among other things, an overall approach and timeline for the process.
In July 2012, the Trustees approved the format of the contract review materials
and submitted their formal request to PIM to furnish information necessary to
evaluate the terms of the investment advisory agreement and the sub-advisory
agreement. The contract review materials were provided to the Trustees in July
2012 and September 2012. After reviewing and discussing the materials, the
Trustees submitted a request for additional information to PIM, and materials
were provided in response to this request. Meetings of the Independent Trustees
of the Fund were held in July, September, October, and November, 2012 to review
and discuss the contract review materials. In addition, the Trustees took into
account the information related to the Fund provided to the Trustees at each
regularly scheduled meeting.
At a meeting held on November 13, 2012, based on their evaluation of the
information provided by PIM, the sub-adviser and third parties, the Trustees of
the Fund, including the Independent Trustees voting separately, unanimously
approved the renewal of the investment advisory agreement and the sub-advisory
agreement for another year. In considering the renewal of the investment
advisory agreement and the sub-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 renewal of the agreements.
Nature, Extent and Quality of Services
The Trustees considered the nature, extent and quality of the services that had
been provided by PIM and the sub-adviser to the Fund, taking into account the
investment objective and strategy of the Fund. The Trustees reviewed the terms
of the investment advisory agreement and the sub-advisory agreement. The
Trustees also reviewed the sub-adviser's investment approach for the Fund, its
research process and its process for trade execution. The Trustees considered
the resources of PIM and the sub-adviser and the personnel of PIM
36 Pioneer Real Estate Shares | Annual Report | 12/31/12
and the sub-adviser who provide investment management services to the Fund. The
Trustees considered the non-investment resources and personnel of PIM involved
in PIM's services to the Fund, including PIM's compliance and legal resources
and personnel. The Trustees also considered the substantial attention and high
priority given by PIM's senior management to the Pioneer fund complex. In
addition, the Trustees considered PIM's plans to increase resources in its
investment management function and other enhancements to PIM's advisory
capabilities.
The Trustees considered that PIM supervises and monitors the performance of the
Fund's service providers (including the sub-adviser) and provides the Fund with
personnel (including Fund officers) and other resources that are necessary for
the Fund's business management and operations. The Trustees also considered
that, as administrator, PIM is responsible for the administration of the Fund's
business and other affairs. The Trustees considered the fees paid to PIM for the
provision of administration services.
Based on these considerations, the Trustees concluded that the nature, extent
and quality of services that had been provided by PIM and the sub-adviser to the
Fund were satisfactory and consistent with the terms of the investment advisory
agreement and the sub-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
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 third quintile of its Morningstar
category for the one, three and five year periods ended June 30, 2012. (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.) The
Trustees concluded that the investment performance of the Fund was satisfactory.
Management Fee and Expenses
The Trustees considered information showing the fees and expenses of the Fund in
comparison to the management fees and expense ratios of its peer group of funds
as classified by Morningstar and also to the expense 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 Trust Research
and Consulting, LLC (Strategic Insight), an
Pioneer Real Estate Shares | Annual Report | 12/31/12 37
independent third party. The Trustees also considered that PIM, not the Fund,
paid the sub-adviser pursuant to the sub-advisory agreement. The Trustees
evaluated both the fee under the sub-advisory agreement and the portion of the
fee under the investment advisory agreement retained by PIM.
The Trustees considered that the Fund's management fee for the twelve months
ended June 30, 2012 was in the third quintile relative to the management fees
paid by other funds in its Morningstar peer group for the comparable period. The
Trustees also considered the breakpoint in the management fee schedule and the
reduced fee rate on assets over $1 billion. The Trustees considered that the
Fund's expense ratio for the twelve months ended June 30, 2012 was in the fifth
quintile relative to its Strategic Insight peer group for the comparable period.
The Trustees noted the lower average account size of shareholders in the Fund,
and considered the impact of the Fund's transfer agency and other non-management
fee expenses on the Fund's expense ratio.
The Trustees reviewed gross and net management fees charged by PIM to its
institutional and other clients, including publicly offered European funds, U.S.
registered investment companies (in a sub-advisory capacity), and unaffiliated
foreign and domestic separate accounts. The Trustees also considered PIM's costs
in providing services to the Fund and to its other clients and considered the
differences in management fees and profit margins for PIM's Fund and non-Fund
services. In evaluating the fees associated with PIM's client accounts, the
Trustees took into account the respective demands, resources and complexity
associated with the Fund and client accounts. The Trustees noted that in some
instances the fee rates for those clients were lower than the management fee for
the Fund and considered that, under the investment advisory agreement with the
Fund, PIM performs additional services for the Fund that it does not provide to
those other clients or services that are broader in scope, including oversight
of the Fund's other service providers and activities related to compliance and
the extensive regulatory and tax regimes to which the Fund is subject. The
Trustees also considered the different entrepreneurial risks associated with
PIM's management of the Fund and the other client accounts.
The Trustees also reviewed management fees charged by the sub-adviser to its
other clients. The Trustees noted that in most instances the fee rates for those
clients were higher than the sub-advisory fees paid to the sub-adviser with
respect to the Fund. The Trustees concluded that the management fee payable by
the Fund to PIM, as well as the fees payable by PIM to the sub-adviser of the
Fund, were reasonable in relation to the nature and quality of the services
provided by PIM and the sub-adviser.
38 Pioneer Real Estate Shares | Annual Report | 12/31/12
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. The Trustees further
considered the sub-advisory fees received by the sub-adviser with respect to the
Fund and the percentage that such fees represented of the sub-adviser's overall
revenues (for the 12-month period ended December 31, 2011). 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
concluded that the profit margins with respect to the management of the Fund
were not unreasonable.
Economies of Scale
The Trustees considered PIM's views relating to economies of scale in connection
with the Pioneer Funds as fund assets grow and the extent to which any such
economies of scale are shared with funds and fund shareholders. The Trustees
noted the breakpoint in the management fee schedule. The Trustees recognize that
economies of scale are difficult to identify and quantify, rarely identifiable
on a Fund-by-Fund basis, and that, among other factors that may be relevant, are
the following: fee levels, expense subsidization, investment by PIM in research
and analytical capabilities and PIM's commitment and resource allocation to the
Funds. The Trustees noted that profitability also may be an indicator of the
availability of any economies of scale, although profitability may vary for
other reasons particularly, for example during the recent difficult periods for
financial markets, as the level of services was maintained notwithstanding a
significant decline in PIM's fee revenues from the Funds. Accordingly, the
Trustees concluded that economies of scale, if any, were being appropriately
shared with the Fund.
Other Benefits
The Trustees considered the other benefits to each of PIM and the sub-adviser
from its relationship with the Fund. The Trustees considered the character and
amount of fees paid by the Fund, other than under the investment advisory
agreement, for services provided by PIM and its affiliates. The Trustees further
considered the revenues and profitability of PIM's businesses other than the
fund business. The Trustees also considered the benefits to the Fund and to the
sub-adviser and its affiliates from the use of "soft" commission dollars
Pioneer Real Estate Shares | Annual Report | 12/31/12 39
generated by the Fund to pay for research and brokerage services. The Trustees
considered the intangible benefits to each of PIM and the sub-adviser 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 each of PIM and the sub-adviser 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 each of the
investment advisory agreement between PIM and the Fund and the sub-advisory
agreement between PIM and the sub-adviser, including the fees payable
thereunder, was fair and reasonable and voted to approve the proposed renewal of
each of the investment advisory agreement and the sub-advisory agreement for the
Fund.
40 Pioneer Real Estate Shares | Annual Report | 12/31/12
Trustees, Officers and Service Providers
Investment Adviser
Pioneer Investment Management, Inc.
Investment Sub-Adviser
AEW Capital Management, L.P.
Custodian and Sub-Administrator
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.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at us.pioneerinvestments.com. This information is also available on the
Securities and Exchange Commission's web site at www.sec.gov.
Trustees and Officers
The Fund's Trustees and Officers are listed on the following pages, together
with their principal occupations during at least 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 serves as
a trustee of each of the 56 U.S. registered investment portfolios for which
Pioneer serves as investment adviser (the "Pioneer Funds"). The address for all
Trustees and all officers of the Fund is 60 State Street, Boston, Massachusetts
02109.
The Statement of Additional Information of the Fund includes additional
information about the Trustees and is available, without charge, upon request,
by calling 1-800-225-6292.
Pioneer Real Estate Shares | Annual Report | 12/31/12 41
Independent Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. Perna (62) Trustee since 2006. Chairman and Chief Executive Officer, Director, Broadridge
Chairman of the Board and Serves until a successor Quadriserv, Inc. (technology products Financial Solutions, Inc.
Trustee trustee is elected or for securities lending industry) (2008 - (investor communications and
earlier retirement or present); private investor (2004 - securities processing
removal. 2008); and Senior Executive Vice provider for financial
President, The Bank of New York services industry) (2009 -
(financial and securities services) present); Director,
(1986 - 2004) Quadriserv, Inc. (2005 -
present); and Commissioner,
New Jersey State Civil
Service Commission (2011 -
present)
------------------------------------------------------------------------------------------------------------------------------------
David R. Bock (69) Trustee Trustee since 2005. Managing Partner, Federal City Capital Director of Enterprise
Serves until a successor Advisors (corporate advisory services Community Investment, Inc.
trustee is elected or company) (1997 - 2004 and 2008 - (privately-held affordable
earlier retirement or present); Interim Chief Executive housing finance company)
removal. Officer, Oxford Analytica, Inc. (1985 - 2010); Director of
(privately held research and consulting Oxford Analytica, Inc. (2008
company) (2010); Executive Vice - present); Director of The
President and Chief Financial Officer, Swiss Helvetia Fund, Inc.
I-trax, Inc. (publicly traded health (closed-end fund) (2010 -
care services company) (2004 - 2007); present); and Director of
and Executive Vice President and Chief New York Mortgage Trust
Financial Officer, Pedestal Inc. (publicly traded mortgage
(internet-based mortgage trading REIT) (2004 - 2009, 2012 -
company) (2000 - 2002) present)
------------------------------------------------------------------------------------------------------------------------------------
Benjamin M. Friedman (68) Trustee since 2008. William Joseph Maier Professor of Trustee, Mellon
Trustee Serves until a successor Political Economy, Harvard University Institutional Funds
trustee is elected or (1972 - present) Investment Trust and Mellon
earlier retirement or Institutional Funds Master
removal. Portfolio (oversaw 17
portfolios in fund complex)
(1989-2008)
------------------------------------------------------------------------------------------------------------------------------------
42 Pioneer Real Estate Shares | Annual Report | 12/31/12
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (65) Trustee since 1995. Founding Director, Vice President and None
Trustee Serves until a successor Corporate Secretary, The Winthrop Group,
trustee is elected or Inc. (consulting firm) (1982-present);
earlier retirement or Desautels Faculty of Management, McGill
removal. University (1999 - present); and Manager
of Research Operations and
Organizational Learning, Xerox PARC,
Xerox's advance research center
(1990-1994)
------------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (64) Trustee since 1995. President and Chief Executive Officer, Director of New America High
Trustee Serves until a successor Newbury, Piret & Company, Inc. Income Fund, Inc.
trustee is elected or (investment banking firm) (1981 - (closed-end investment
earlier retirement or present) company) (2004 - present);
removal. and member, Board of
Governors, Investment
Company Institute (2000 -
2006)
------------------------------------------------------------------------------------------------------------------------------------
Stephen K. West (84) Trustee since 1995. Senior Counsel, Sullivan & Cromwell LLP Director, The Swiss Helvetia
Trustee Serves until a successor (law firm) (1998 - present); and Fund, Inc. (closed-end
trustee is elected or Partner, Sullivan & Cromwell LLP (prior investment company); and
earlier retirement or to 1998) Director, Invesco, Ltd.
removal. (formerly AMVESCAP, PLC)
(investment manager)
(1997-2005)
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Real Estate Shares | Annual Report | 12/31/12 43
Interested Trustees
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Trustee
------------------------------------------------------------------------------------------------------------------------------------
John F. Cogan, Jr. (86)* Trustee since 1995. Non-Executive Chairman and a director of None
Trustee, President and Serves until a successor Pioneer Investment Management USA Inc.
Chief Executive Officer of trustee is elected or ("PIM-USA"); Chairman and a director of
the Fund earlier retirement or Pioneer; Chairman and Director of
removal. Pioneer Institutional Asset Management,
Inc. (since 2006); Director of Pioneer
Alternative Investment Management
Limited (Dublin) (until October 2011);
President and a director of Pioneer
Alternative Investment Management
(Bermuda) Limited and affiliated funds;
Deputy Chairman and a director of
Pioneer Global Asset Management S.p.A.
("PGAM") (until April 2010); Director of
Nano-C, Inc. (since 2003); Director of
Cole Management Inc. (2004 - 2011);
Director of Fiduciary Counseling, Inc.
(until December 2011); President of all
of the Pioneer Funds; and Retired
Partner, Wilmer Cutler Pickering Hale
and Dorr LLP
------------------------------------------------------------------------------------------------------------------------------------
Daniel K. Kingsbury (54)* Trustee since 2007. Director, CEO and President of PIM-USA None
Trustee and Executive Vice Serves until a successor (since February 2007); Director and
President trustee is elected or President of Pioneer and Pioneer
earlier retirement or Institutional Asset Management, Inc.
removal. (since February 2007); Executive Vice
President of all of the Pioneer Funds
(since March 2007); Director of PGAM
(2007 - 2010); Head of New Europe
Division, PGAM (2000 - 2005); Head of
New Markets Division, PGAM (2005 - 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.
44 Pioneer Real Estate Shares | Annual Report | 12/31/12
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (48) Since 2003. Serves at the Vice President and Associate General None
Secretary discretion of the Board. Counsel of Pioneer since January 2008
and Secretary of all of the Pioneer
Funds since June 2010; Assistant
Secretary of all of the Pioneer Funds
from September 2003 to May 2010; and
Vice President and Senior Counsel of
Pioneer from July 2002 to December 2007
------------------------------------------------------------------------------------------------------------------------------------
Carol B. Hannigan (51) Since 2010. Serves at the Fund Governance Director of Pioneer None
Assistant Secretary discretion of the Board. since December 2006 and Assistant
Secretary of all the Pioneer Funds since
June 2010; Manager - Fund Governance of
Pioneer from December 2003 to November
2006; and Senior Paralegal of Pioneer
from January 2000 to November 2003
------------------------------------------------------------------------------------------------------------------------------------
Thomas Reyes (50) Since 2010. Serves at the Counsel of Pioneer since June 2007 and None
Assistant Secretary discretion of the Board. Assistant Secretary of all the Pioneer
Funds since June 2010; and Vice
President and Counsel at State Street
Bank from October 2004 to June 2007
------------------------------------------------------------------------------------------------------------------------------------
Mark E. Bradley (53) Since 2008. Serves at the Vice President - Fund Treasury of None
Treasurer and Chief discretion of the Board. Pioneer; Treasurer of all of the Pioneer
Financial and Accounting Funds since March 2008; Deputy Treasurer
Officer of the Fund of Pioneer from March 2004 to February
2008; and Assistant Treasurer of all of
the Pioneer Funds from March 2004 to
February 2008
------------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (47) Since 2000. Serves at the Assistant Vice President - Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (54) Since 2002. Serves at the Fund Accounting Manager - Fund Treasury None
Assistant Treasurer discretion of the Board. of Pioneer; and Assistant Treasurer of
all of the Pioneer Funds
------------------------------------------------------------------------------------------------------------------------------------
Pioneer Real Estate Shares | Annual Report | 12/31/12 45
Fund Officers
------------------------------------------------------------------------------------------------------------------------------------
Name, Age and Term of Office and Other Directorships
Position Held with the Fund Length of Service Principal Occupation Held by Officer
------------------------------------------------------------------------------------------------------------------------------------
David F. Johnson (33) Since 2009. Serves at the Fund Administration Manager - Fund None
Assistant Treasurer discretion of the Board. Treasury of Pioneer since November 2008;
Assistant Treasurer of all of the
Pioneer Funds since January 2009; and
Client Service Manager - Institutional
Investor Services at State Street Bank
from March 2003 to March 2007
------------------------------------------------------------------------------------------------------------------------------------
Jean M. Bradley (60) Since 2010. Serves at the Chief Compliance Officer of Pioneer and None
Chief Compliance Officer discretion of the Board. of all the Pioneer Funds since March
2010; Director of Adviser and Portfolio
Compliance at Pioneer since October
2005; and Senior Compliance Officer for
Columbia Management Advisers, Inc. from
October 2003 to October 2005
------------------------------------------------------------------------------------------------------------------------------------
Kelley O'Donnell (41) Since 2006. Serves at the Director--Transfer Agency Compliance of None
Anti-Money Laundering discretion of the Board. Pioneer and Anti-Money Laundering
Officer Officer of all the Pioneer Funds since
2006
------------------------------------------------------------------------------------------------------------------------------------
46 Pioneer Real Estate Shares | Annual Report | 12/31/12
This page for your notes.
Pioneer Real Estate Shares | Annual Report | 12/31/12 47
This page for your notes.
48 Pioneer Real Estate Shares | Annual Report | 12/31/12
This page for your notes.
Pioneer Real Estate Shares | Annual Report | 12/31/12 49
This page for your notes.
50 Pioneer Real Estate Shares | Annual Report | 12/31/12
This page for your notes.
Pioneer Real Estate Shares | Annual Report | 12/31/12 51
This page for your notes.
52 Pioneer Real Estate Shares | Annual Report | 12/31/12
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
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: us.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.
[LOGO] PIONEER
Invesments(R)
Pioneer Investment Management, Inc.
60 State Street
Boston, MA 02109
us.pioneerinvestments.com
Securities offered through Pioneer Funds Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2013 Pioneer Investments 18631-07-0213
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 (see attachment);
(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 routine and non routine filings of its
Form N-1A, totaled approximately $36,742 in 2012 and
$38,686 in 2011.
(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 audit-related services provided to
the Fund during the fiscal years ended December 31, 2012
and 2011.
(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 $8,290 in 2012 and $8,290 in 2011.
(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 other services provided to
the Fund during the fiscal years ended December 31, 2012
and 2011.
(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.
Non-Audit Services
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 December 31, 2012 and 2011, 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 $8,290 in 2012 and $8,290 in
2011.
(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 Real Estate Shares
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date March 1, 2013
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 March 1, 2013
By (Signature and Title)* /s/ Mark Bradley
Mark Bradley, Treasurer & Chief Accounting & Financial Officer
Date March 1, 2013
* Print the name and title of each signing officer under his or her signature.
EX-99
2
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