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PIONEER
-------
GROWTH
SHARES
MOMGX
Ticker Symbol
Semiannual
Report
6/30/07
[LOGO] PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 14
Schedule of Investments 16
Financial Statements 21
Notes to Financial Statements 30
Trustees, Officers and Service Providers 37
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. Those
were particularly useful guides during the past year, as U.S. and global stock
and bond markets grew strongly during the period.
In the first half of 2007, U.S. equity markets proved resilient in the face of
a slowing economy. The Standard & Poor's 500 Stock Index set a record high in
late May and returned 7% in the first half of the year. The Dow Xxxxx
Industrial Average returned 9%, building on a five-year bull market.
International developed and emerging markets equities performed even better
than U.S. equities, with the MSCI EAFE (developed market) Index returning 11%
and the MSCI Emerging Markets Index returning 18% in the first half of 2007.
The general U.S. bond market, as measured by the Xxxxxx Brothers Aggregate Bond
Index, returned 1% in the first half, as rising bond yields produced price
declines that partially offset income earned. The high yield market, as
measured by the Xxxxxxx Xxxxx High Yield Bond Master II Index, returned 3%,
reflecting its higher yields and continuing investor confidence in the strength
of the U.S. economy.
The United States has enjoyed a cyclical recovery with strong economic growth.
While the growth has slowed recently, we believe that continuing growth at a
moderate rate appears to be more likely than a recession. Slowing growth was
due in large part to a decline in the rate of new home construction and in part
to the lagging effects of rising energy and commodity prices as well as rising
short-term interest rates. Slowing economic activity is also due in part to the
natural maturation of the cyclical expansion as U.S. factories approach full
utilization and the labor market approaches full employment. This slowdown is
therefore not entirely unwelcome, as it reduces the threat of higher inflation.
The Federal Reserve Board (the Fed) continues to highlight its commitment to
keeping inflationary pressures contained. This is in keeping with "best
practices" among the world's central banks: low and stable inflation is
believed to be the best backdrop for stable economic growth and low average
unemployment over the long term. Keeping inflation low is also an important
support for stock and bond valuations, and so the Fed's policy is
investor-friendly.
2
Letter
In Europe, solid GDP growth driven by a positive operating environment for
European companies, especially those that are benefiting from strong export
markets for their goods and services, is driving unemployment lower and
supporting growing consumption. European inflationary pressures appear to be
largely under control, with the European Central bank remaining strongly
vigilant. Japanese economic growth continues to make progress, and the country
has become a more attractive market as deflationary problems recede. Economic
growth in emerging market countries remains faster than in the developed world
as they continue to "catch up." Leading the way is China, which continues its
rise as a world economic power.
Looking forward, we believe that the overall climate for equity investors
generally will continue to be positive, although valuations are less attractive
than they were a year ago, and a correction after a period of strong
performance is possible. Rising yields have depressed year-to-date bond
returns, but increased the attractiveness of bonds looking forward.
Sudden swings in the markets are always to be expected. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to their particular risk
tolerance and investment objective.
Respectfully,
/s/ Xxxxxx X. Xxxxxxxxx
Xxxxxx X. Xxxxxxxxx
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Growth Shares
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/07
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The domestic equity market provided solid results over the first half of 2007,
supported by brisk corporate profit growth surpassing general expectations.
Investments in large company stocks did particularly well for the six months,
despite two bouts of market declines caused partly by fears about the effects
of problems in the subprime mortgage industry. In the following interview,
Xxxxxx Xxxxxxx and Xxxxxxx Xxxxxxxx, co-managers of the Fund's portfolio,
discuss the market and the factors that influenced Fund performance during the
six months ended June 30, 2007. They have managed the Fund since January 16,
2007.
Q: How did the Fund perform during the first half of 2007?
A: The Fund did very well. Pioneer Growth Shares Class A shares generated a
total return of 8.87%, at net asset value, for the six months ended June
30, 2007, outpacing both its market benchmark and the competitive funds
average. For the same period, the Xxxxxxx 1000 Growth Index posted 8.13%
while the average return of the 741 funds in Lipper's Large Cap Growth Fund
category was 7.58%.
Call 0-000-000-0000 or visit xxx.xxxxxxxxxxxxxxxxxx.xxx 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.
Q: What were the principal factors that contributed to the Fund's performance?
A: The year started off well, with stocks continuing the rally that began in
the summer of 2006. However, beginning in late February, equity prices
suffered a sharp, three-week price drop. The primary cause was fear that
problems in the subprime mortgage market might spread to the overall
market, but a decline in the Chinese equity market also contributed to
fears about the global economy. However, investors recovered confidence
again in mid-March, and equities performed very well again through the end
of
4
Pioneer Growth Shares
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May. The major force driving the market higher was the encouraging
profitability of U.S. corporations. Earnings reported for both the final
quarter of 2006 and the first quarter of 2007 were well above expectations,
as corporations showed their ability to improve their operating results
even as growth in the overall economy appeared to be decelerating. Average
corporate earnings for the first quarter of 2007, for example, were 9.5%
higher than a year earlier, far above the 3.5% increase anticipated by
market analysts. However, the overall upward trajectory of stock prices was
interrupted in June, the final month of the period. Again the primary
factor was fear about the subprime mortgage market. The immediate catalyst
for the June correction was news that two hedge funds that had invested in
subprime mortgages were in serious financial trouble.
Despite the two interruptions in the rally, the six-month period was very
favorable for investors in large-cap stocks. While the main driver of the
stock market advance was corporate profitability, stock prices also were
supported by widespread corporate stock buy-back activity. In addition,
many companies doing business in the global economy benefited from weakness
in the U.S. dollar, which helped increase the profitability of business in
other markets.
Q: What types of investments most influenced Fund performance?
A: Stock selection was the primary driver of performance, with particularly
good results in the consumer staples, financials, information technology
and industrials sectors helping results. A slight relative emphasis on
energy helped, as did the de-emphasis of consumer discretionary stocks.
Within consumer staples, the biggest boost came from our investment in
Xxxx-Xxxxx, the Southern regional grocery chain that emerged from
bankruptcy protection in November 2006. Restructured, the company had
re-entered the public market at a very attractive stock price, which almost
doubled by the end of the period. Another major contributor was Teva
Pharmaceuticals, the Israeli-based pharmaceutical company. The largest
generic drug manufacturer in the world, Teva repeatedly surpassed sales and
earnings expectations, and its pipeline of products continued to offer
potential for future gains.
5
Pioneer Growth Shares
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/07 (continued)
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Three information technology holdings also did very well. Corning, a major
manufacturer of flat-screen LCD panels for televisions sets, computer
monitors and smaller, hand-held communications devices, showed strong
earnings improvement during the period. It benefited from improvements in
pricing for flat-screen panels after problems occurred in 2006 when supply
temporarily exceeded demand. Juniper Networks also performed very well
based on a successful launch of new router products for communications
networks. Another tech holding that did very well was Texas Instruments,
whose results improved as demand for semi-conductor components accelerated.
Contributing, too, was Marathon Oil, benefiting from increasing oil prices
and expanding profits in the refining business.
Despite the good performance overall, we did have some detractors from
results. Biotechnology company Amgen was victim to several problems,
including questions surrounding its Epogen product, which had been a strong
source of earnings. Boston Scientific, another health care holding, fell in
value because of questions about its drug-eluding stents used in cardiac
treatment. Finally, technology manufacturer Motorola lost market share in
the fiercely competitive cell phone market as it failed to have a
successful strategy following up on the early success of its Razr Phone. We
reduced our positions in all three companies during the reporting period.
Q: What is your investment outlook?
A: We remain optimistic about prospects in the market. Despite the advances in
stock prices in recent months, prices in the overall market still appear
reasonable by historical standards. Inflation remains under control, and
the Federal Reserve Board continues to be vigilant over the economy. We
anticipate that corporate earnings may very well continue to surpass the
results expected by the general market. Moreover, after a period of
slowing, we believe that growth in Gross Domestic Product should begin to
reaccelerate in the second half of 2007, giving further support to
corporate earnings. The primary cause of concern remains the subprime
mortgage industry. If its problems were to begin to spread to the general
mortgage industry, the impact to the economy could be more serious. But as
we enter the second half of the year, the
6
Pioneer Growth Shares
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rest of the economy appears to be performing well. Even commercial
construction activity is robust, resisting the problems in the residential
construction industry. Corporations are reinvesting in their businesses,
cash flows are improving, and many companies are increasing their dividend
payouts or buying back their shares from the market. Moreover, inflation
appears to be within the range with which the Federal Reserve Board is
comfortable. We don't anticipate any major changes in monetary policy from
the nation's central bank - unless the weakness in the subprime mortgage
industry becomes contagious in the general economy.
Overall, we think the prospects are good for continued good results in the
stock market for the remainder of 2007.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
At times, the fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions 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.
7
Pioneer Growth Shares
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PORTFOLIO SUMMARY 6/30/07
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[THE DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
U.S. Common Stocks 91.2%
Depositary Receipts for International Stocks 6.7%
Temporary Cash Investment 2.1%
Sector Distribution
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(As a percentage of equity holdings)
[THE DATA IS A REPRESENTATION OF A PIE CHART IN THE PRINTED MATERIAL]
Information Technology 33.9%
Health Care 17.6%
Industrials 13.6%
Consumer Staples 11.4%
Consumer Discretionary 11.0%
Financials 7.3%
Energy 5.2%
10 Largest Holdings*
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(As a percentage of equity holdings)
1. Cisco Systems, Inc. 4.90%
2. Microsoft Corp. 4.88
3. Texas Instruments, Inc. 4.00
4. General Electric Co. 3.65
5. Procter & Xxxxxx Co. 3.40
6. Corning, Inc. 3.37
7. Juniper Networks, Inc. 3.27
8. Teva Pharmaceutical Industries, Ltd. 3.24
9. United Technologies Corp. 3.14
10. CVS Corp. 3.08
* This list excludes temporary cash and derivative instruments. The portfolio
is actively managed, and current holdings may be different. The holdings
listed should not be considered recommendations to buy or sell any security
listed.
8
Pioneer Growth Shares
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 6/30/07 12/31/06
----- ------- --------
A $14.85 $13.64
B $13.26 $12.25
C $13.47 $12.42
Y $15.81 $14.48
2/1/07 12/31/07
------ --------
R $ - $ -
Distributions Per Share
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1/1/07 - 6/30/07
-------------------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
----- ---------- ------------- -------------
A $ - $ - $ -
B $ - $ - $ -
C $ - $ - $ -
Y $ - $ - $ -
1/1/07 - 2/1/07
-------------------------------------------------------
Net
Investment Short-Term Long-Term
Income Capital Gains Capital Gains
---------- ------------- -------------
R $ - $ - $ -
9
Pioneer Growth Shares
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PERFORMANCE UPDATE 6/30/07 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Growth Shares at public offering price, compared to
that of the Xxxxxxx 1000 Growth Index.
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Average Annual Total Returns
(As of June 30, 2007)
Net Asset Public Offering
Period Value (NAV) Price (POP)
10 Years 2.45% 1.85%
5 Years 7.59 6.32
1 Year 22.32 15.30
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Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
1.42% 1.42%
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[THE DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Growth Xxxxxxx 1000
Shares Growth Index
6/97 $ 9,425 $10,000
13,282 13,139
6/99 15,829 16,722
15,183 21,013
6/01 12,641 13,412
8,333 9,859
6/03 8,333 10,149
9,109 11,964
6/05 9,593 12,165
9,821 12,909
6/07 12,013 15,367
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Call 0-000-000-0000 or visit xxx.xxxxxxxxxxxxxxxxxx.xxx 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.
The Xxxxxxx 1000 Growth Index measures the performance of large-cap U.S. growth
stocks. Companies in this index tend to exhibit higher price-to-book and
price-to-earnings ratios, lower dividend yields and higher forecasted growth
values than the value universe. Index returns assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in an Index.
10
Pioneer Growth Shares
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PERFORMANCE UPDATE 6/30/07 CLASS B SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Growth Shares, compared to that of the Xxxxxxx 1000
Growth Index.
------------------------------------------------
Average Annual Total Returns
(As of June 30, 2007)
If If
Period Held Redeemed
10 Years 1.56% 1.56%
5 Years 6.54 6.54
1 Year 21.10 17.10
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Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
2.41% 2.41%
------------------------------------------------
[THE DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Growth Xxxxxxx 1000
Shares Growth Index
6/97 $10,000 $10,000
13,973 13,139
6/99 16,518 16,722
15,722 21,013
6/01 12,992 13,412
8,503 9,859
6/03 8,423 10,149
9,110 11,964
6/05 9,515 12,165
9,638 12,909
6/07 11,671 15,367
-------------------------------
Call 0-000-000-0000 or visit xxx.xxxxxxxxxxxxxxxxxx.xxx 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). Effective December 1, 2004, the period during which a CDSC is applied
to withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus
for details. Note: Shares purchased prior to December 1, 2004 remain subject to
the CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
xxx.xxxxxxxxxxxxxxxxxx.xxx/xxxxxxx.
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.
The Xxxxxxx 1000 Growth Index measures the performance of large-cap U.S. growth
stocks. Companies in this index tend to exhibit higher price-to-book and
price-to-earnings ratios, lower dividend yields and higher forecasted growth
values than the value universe. Index returns assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in an Index.
11
Pioneer Growth Shares
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PERFORMANCE UPDATE 6/30/07 CLASS C SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Growth Shares, compared to that of the Xxxxxxx 1000
Growth Index.
---------------------------------------------
Average Annual Total Returns
(As of June 30, 2007)
If If
Period Held Redeemed
10 Years 1.66% 1.66%
5 Years 6.70 6.70
1 Year 21.57 21.57
---------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
2.19% 2.19%
---------------------------------------------
[THE DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Growth Xxxxxxx 1000
Shares Growth Index
6/97 $10,000 $10,000
13,991 13,139
6/99 16,555 16,722
15,747 21,013
6/01 13,015 13,412
8,525 9,859
6/03 8,446 10,149
9,155 11,964
6/05 9,566 12,165
9,698 12,909
6/07 11,789 15,367
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Call 0-000-000-0000 or visit xxx.xxxxxxxxxxxxxxxxxx.xxx 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.
The Xxxxxxx 1000 Growth Index measures the performance of large-cap U.S. growth
stocks. Companies in this index tend to exhibit higher price-to-book and
price-to-earnings ratios, lower dividend yields and higher forecasted growth
values than the value universe. Index returns assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in an Index.
12
Pioneer Growth Shares
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PERFORMANCE UPDATE 6/30/07 CLASS Y SHARES
--------------------------------------------------------------------------------
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Growth Shares, compared to that of the Xxxxxxx 1000
Growth Index.
---------------------------------------------
Average Annual Total Returns
(As of June 30, 2007)
If If
Period Held Redeemed
10 Years 3.15% 3.15%
5 Years 8.35 8.35
1 Year 23.13 23.13
---------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2007)
Gross Net
0.72% 0.72%
---------------------------------------------
[THE DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Growth Xxxxxxx 1000
Shares Growth Index
6/97 $10,000 $10,000
14,097 13,139
6/99 16,870 16,722
16,417 21,013
6/01 13,766 13,412
9,129 9,859
6/03 9,197 10,149
10,121 11,964
6/05 10,741 12,165
11,070 12,909
6/07 13,630 15,367
-------------------------------
Call 0-000-000-0000 or visit xxx.xxxxxxxxxxxxxxxxxx.xxx 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.
Performance for periods prior to the inception of Class Y shares reflects the
NAV performance of the Fund's Class A shares. The performance does not reflect
differences in expenses, including the Rule 12b-1 fees applicable to Class A
shares. Since fees for Class A shares are generally higher than those of Class
Y shares, the performance shown for Class Y shares prior to their inception
would have been higher. 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.
The Xxxxxxx 1000 Growth Index measures the performance of large-cap U.S. growth
stocks. Companies in this index tend to exhibit higher price-to-book and
price-to-earnings ratios, lower dividend yields and higher forecasted growth
values than the value universe. Index returns assume reinvestment of dividends
and, unlike Fund returns, do not reflect any fees, expenses or sales charges.
You cannot invest directly in an Index.
13
Pioneer Growth Shares
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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 Growth Shares
Based on actual returns from January 1, 2007 through June 30, 2007**
Share Class A B C R Y
---------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 1/1/07
Ending Account $1,088.70 $1,082.50 $1,084.50 $1,026.70 $1,091.90
Value On 6/30/07**
Expenses Paid $ 7.30 $ 12.96 $ 11.27 $ 1.83 $ 4.05
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.41%, 2.51%,
2.18%, 2.06% and 0.78%, for Class A, Class B, Class C, Class R and Class Y
shares, respectively, multiplied by the average account value over the
period, multiplied by 181/365 (to reflect the one-half year period) (32/365
for Class R shares).
** 2/1/07 for Class R shares.
14
Pioneer Growth Shares
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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 Growth Shares
Based on a hypothetical 5% return per year before expenses, reflect
ing the period from January 1, 2007 through June 30, 2007**
Share Class A B C R Y
----------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 1/1/07
Ending Account $1,017.80 $1,012.35 $1,013.98 $1,002.58 $1,020.93
Value On 6/30/07**
Expenses Paid $ 7.05 $ 12.52 $ 10.89 $ 1.81 $ 3.91
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.41%, 2.51%,
2.18%, 2.06% and 0.78%, for Class A, Class B, Class C, Class R and Class Y
shares, respectively, multiplied by the average account value over the
period, multiplied by 181/365 (to reflect the one-half year period) (32/365
for Class R shares).
** 2/1/07 for Class R shares.
15
Pioneer Growth Shares
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/07 (unaudited)
--------------------------------------------------------------------------------
Shares Value
COMMON STOCKS - 99.5%
Energy - 5.1%
Integrated Oil & Gas - 5.1%
131,900 ConocoPhillips $ 10,354,150
118,900 Repsol SA (A.D.R.) (b) 4,601,430
172,800 USX-Marathon Group, Inc. 10,361,088
------------
$ 25,316,668
------------
Total Energy $ 25,316,668
------------
Capital Goods - 13.5%
Aerospace & Defense - 5.9%
107,100 Honeywell International, Inc. $ 6,027,588
76,600 L-3 Communications Holdings, Inc. 7,460,074
217,000 United Technologies Corp. 15,391,810
------------
$ 28,879,472
------------
Construction & Farm Machinery & Heavy Trucks - 1.2%
75,300 Caterpillar, Inc. $ 5,895,990
------------
Industrial Conglomerates - 6.4%
159,600 3M Co. $ 13,851,684
467,700 General Electric Co. 17,903,556
------------
$ 31,755,240
------------
Total Capital Goods $ 66,530,702
------------
Consumer Durables & Apparel - 2.0%
Footwear - 2.0%
166,400 Nike, Inc. $ 9,699,456
------------
Total Consumer Durables & Apparel $ 9,699,456
------------
Consumer Services - 1.3%
Hotels, Resorts & Cruise Lines - 1.3%
129,000 Carnival Corp. $ 6,291,330
------------
Total Consumer Services $ 6,291,330
------------
Media - 1.5%
Movies & Entertainment - 1.5%
177,450 Viacom, Inc. (Class B)* $ 7,387,244
------------
Total Media $ 7,387,244
------------
16 The accompanying notes are an integral part of these financial statements.
Pioneer Growth Shares
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shares Value
Retailing - 6.2%
Apparel Retail - 4.2%
161,100 Abercrombie & Fitch Co. $ 11,757,078
334,600 TJX Companies, Inc. 9,201,500
------------
$ 20,958,578
------------
Home Improvement Retail - 2.0%
244,600 Home Depot, Inc. $ 9,625,010
------------
Total Retailing $ 30,583,588
------------
Food & Drug Retailing - 4.8%
Drug Retail - 3.1%
414,400 CVS Corp. $ 15,104,880
------------
Food Retail - 1.7%
291,281 Xxxx-Xxxxx Stores, Inc.* $ 8,534,533
------------
Total Food & Drug Retailing $ 23,639,413
------------
Food, Beverage & Tobacco - 3.2%
Soft Drinks - 0.7%
86,100 Fomento Economico Mexicano SA de C.V. $ 3,385,452
------------
Tobacco - 2.5%
174,100 Altria Group, Inc. $ 12,211,374
------------
Total Food, Beverage & Tobacco $ 15,596,826
------------
Household & Personal Products - 3.4%
Household Products - 3.4%
272,500 Procter & Xxxxxx Co. $ 16,674,275
------------
Total Household & Personal Products $ 16,674,275
------------
Health Care Equipment & Services - 4.1%
Health Care Equipment - 2.9%
456,206 Boston Scientific Corp.* $ 6,998,200
139,300 Medtronic, Inc. 7,224,098
------------
$ 14,222,298
------------
Managed Health Care - 1.2%
125,000 AETNA, Inc. $ 6,175,000
------------
Total Health Care Equipment & Services $ 20,397,298
------------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Growth Shares
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/07 (unaudited) (continued)
--------------------------------------------------------------------------------
Shares Value
Pharmaceuticals & Biotechnology - 13.3%
Biotechnology - 3.0%
85,600 Amgen, Inc.* $ 4,732,824
258,400 Gilead Sciences, Inc.* 10,018,168
------------
$ 14,750,992
------------
Pharmaceuticals - 10.3%
303,100 Xxxxxxx-Xxxxx Squibb Co. $ 9,565,836
252,400 Xxx Lilly & Co. 14,104,112
185,800 Xxxxxxx & Xxxxxxx 11,448,996
385,428 Teva Pharmaceutical Industries, Ltd. 15,898,905
------------
$ 51,017,849
------------
Total Pharmaceuticals & Biotechnology $ 65,768,841
------------
Diversified Financials - 7.3%
Asset Management & Custody Banks - 3.5%
84,600 Franklin Resources, Inc. $ 11,206,962
59,400 Xxxx Xxxxx, Inc. 5,843,772
------------
$ 17,050,734
------------
Consumer Finance - 2.6%
210,600 American Express Co. $ 12,884,508
------------
Investment Banking & Brokerage - 1.2%
73,100 Xxxxxxx Xxxxx & Co., Inc. $ 6,109,698
------------
Total Diversified Financials $ 36,044,940
------------
Software & Services - 8.6%
Internet Software & Services - 0.8%
144,100 Yahoo! Inc.* $ 3,909,433
------------
Systems Software - 7.8%
297,400 Macrovision Corp.* $ 8,939,844
812,500 Microsoft Corp. 23,944,375
278,400 Oracle Corp.* 5,487,264
------------
$ 38,371,483
------------
Total Software & Services $ 42,280,916
------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Growth Shares
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shares Value
Technology Hardware & Equipment - 16.2%
Communications Equipment - 15.1%
862,600 Cisco Systems, Inc.* $ 24,023,410
646,900 Corning, Inc.* 16,528,295
94,113 F5 Networks, Inc.* 7,585,508
638,100 Juniper Networks, Inc.* 16,060,977
578,800 Motorola, Inc. 10,244,760
------------
$ 74,442,950
------------
Computer Hardware - 1.1%
327,540 Palm, Inc.*(b) $ 5,243,915
------------
Total Technology Hardware & Equipment $ 79,686,865
------------
Semiconductors - 9.1%
144,100 Broadcom Corp.* $ 4,214,925
478,100 Intel Corp. 11,359,656
526,600 Marvell Technology Group, Ltd.* 9,589,386
521,500 Texas Instruments, Inc. 19,624,045
------------
$ 44,788,012
------------
Total Semiconductors $ 44,788,012
------------
TOTAL COMMON STOCKS
(Cost $409,859,189) $490,686,374
------------
TEMPORARY CASH INVESTMENT - 2.2%
Security Lending Collateral - 2.2%
10,633,717 Securities Lending Investment Fund, 5.28% $ 10,633,717
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $10,633,717) $ 10,633,717
------------
TOTAL INVESTMENT IN SECURITIES - 101.6%
(Cost $420,492,906) (a) $501,320,091
------------
OTHER ASSETS AND LIABILITIES - (1.6)% $ (8,052,457)
------------
TOTAL NET ASSETS - 100.0% $493,267,634
============
The accompanying notes are an integral part of these financial statements. 19
Pioneer Growth Shares
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/07 (unaudited) (continued)
--------------------------------------------------------------------------------
(A.D.R.) American Depositary Receipt
* Non-income producing security
(a) At June 30, 2007, the net unrealized gain on investments based on cost
for federal income tax purposes of $427,163,507 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $81,835,745
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (7,679,161)
-----------
Net unrealized gain $74,156,584
===========
(b) At December 31, 2006, the following securities were out on loan:
Shares Security Value
351,888 Palm, Inc.* $ 5,633,726
117,711 Repsol SA (A.D.R.) 4,555,416
-----------
Total $10,189,142
===========
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended June 30, 2007 aggregated $72,078,928 and $130,994,759,
respectively.
20 The accompanying notes are an integral part of these financial statements.
Pioneer Growth Shares
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 6/30/07 (unaudited)
--------------------------------------------------------------------------------
ASSETS:
Investment in securities (including securities loaned of
$10,189,142) (cost $420,492,906) $501,320,091
Cash 616,862
Receivables -
Investment securities sold 2,417,885
Fund shares sold 74,672
Dividends, interest and foreign taxes withheld 387,160
Other 47,473
------------
Total assets $504,864,143
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 549,508
Upon return of securities loaned 10,633,717
Due to affiliates 341,766
Accrued expenses 71,518
------------
Total liabilities $ 11,596,509
------------
NET ASSETS:
Paid-in capital $913,006,650
Accumulated net investment loss (976,833)
Accumulated net realized loss on investments (499,589,368)
Net unrealized gain on investments 80,827,185
------------
Total net assets $493,267,634
============
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $391,923,073/26,385,882 shares) $ 14.85
============
Class B (based on $67,546,719/5,092,598 shares) $ 13.26
============
Class C (based on $31,494,504/2,338,894 shares) $ 13.47
============
Class Y (based on $2,303,338/145,703 shares) $ 15.81
============
MAXIMUM OFFERING PRICE:
Class A ($14.85 [divided by] 94.25%) $ 15.76
============
The accompanying notes are an integral part of these financial statements. 21
Pioneer Growth Shares
-------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
-------------------------------------------------------------------------------
For the Six Months Ended 6/30/07
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $32,271) $2,986,261
Interest 33,592
Income from securities loaned, net 13,812
----------
Total investment income $ 3,033,665
-----------
EXPENSES:
Management fees
Basic Fee $1,725,120
Performance Adjustment 7,884
Transfer agent fees and expenses
Class A 851,589
Class B 290,063
Class C 68,616
Class R 329
Class Y 75
Distribution fees
Class A 425,848
Class B 373,781
Class C 159,649
Class R 187
Administrative reimbursements 55,450
Custodian fees 12,245
Registration fees 27,676
Professional fees 32,559
Printing expense 31,672
Fees and expenses of nonaffiliated trustees 6,819
Miscellaneous 11,128
----------
Total expenses $ 4,080,690
Less fees paid indirectly (70,192)
-----------
Net expenses $ 4,010,498
-----------
Net investment loss $ (976,833)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (911,185)
-----------
Change in net unrealized gain on investments $41,424,695
-----------
Net gain on investments $40,513,510
-----------
Net increase in net assets resulting from operations $39,536,677
===========
22 The accompanying notes are an integral part of these financial statements.
Pioneer Growth Shares
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
For the Six Months Ended 6/30/07 and the Year Ended 12/31/06, respectively
Six Months
Ended Year
6/30/07 Ended
(unaudited) 12/31/06
FROM OPERATIONS:
Net investment loss $ (976,833) $ (2,139,271)
Net realized gain (loss) on investments (911,185) 20,293,204
Change in net unrealized gain on investments 41,424,695 24,695,742
------------- --------------
Net increase in net assets resulting
from operations $ 39,536,677 $ 42,849,675
------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 32,972,637 $ 67,258,988
Cost of shares repurchased (87,101,597) (180,949,791)
------------- --------------
Net decrease in net assets resulting from
Fund share transactions $ (54,128,960) $ (113,690,803)
------------- --------------
Net decrease in net assets $ (14,592,283) $ (70,841,128)
NET ASSETS:
Beginning of period 507,859,917 578,701,045
------------- --------------
End of period $ 493,267,634 $ 507,859,917
============= ==============
Accumulated net investment loss $ (976,833) $ -
============= ==============
The accompanying notes are an integral part of these financial statements. 23
Pioneer Growth Shares
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
--------------------------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
(unaudited) (unaudited)
CLASS A
Shares sold 1,815,883 $ 27,059,433 4,151,464 $ 53,257,561
Conversion from Investor
Class - - 65,512 894,900
Less shares repurchased (3,748,542) (52,876,580) (8,140,126) 104,093,042)
---------- ------------ ---------- ------------
Net decrease (1,932,659) $(25,817,147) (3,923,150) $(49,940,581)
========== ============ ========== ============
CLASS B
Shares sold 262,601 $ 3,589,733 801,940 $ 9,306,817
Less shares repurchased (2,138,254) (26,918,692) (5,473,947) (63,152,589)
---------- ------------ ---------- ------------
Net decrease (1,875,653) $(23,328,959) (4,672,007) $(53,845,772)
========== ============ ========== ============
CLASS C
Shares sold 155,731 $ 2,129,347 352,769 $ 4,130,345
Less shares repurchased (462,781) (5,965,866) (1,082,286) (12,680,183)
---------- ------------ ---------- ------------
Net decrease (307,050) $ (3,836,519) (729,517) $ (8,549,838)
========== ============ ========== ============
INVESTOR CLASS
Conversion to Class A shares - $ - (65,054) $ (894,900)
Less shares repurchased - - (22,695) (295,951)
---------- ------------ ---------- ------------
Net decrease - $ - (87,749) $ (1,190,851)
========== ============ ========== ============
CLASS R
Shares sold 959 $ 13,100 6,270 $ 79,737
Less shares repurchased (32,173) (443,110) (8,639) (109,602)
---------- ------------ ---------- ------------
Net decrease (31,214) $ (430,010) (2,369) $ (29,865)
========== ============ ========== ============
CLASS Y
Shares sold 11,561 $ 181,024 35,582 $ 484,528
Less shares repurchased (60,679) (897,349) (46,221) (618,424)
---------- ------------ ---------- ------------
Net decrease (49,118) $ (716,325) (10,639) $ (133,896)
========== ============ ========== ============
24 The accompanying notes are an integral part of these financial statements.
Pioneer Growth Shares
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Six Months
Ended
6/30/07 Year Ended Year Ended Year Ended Year Ended Year Ended
(unaudited) 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 (a)
CLASS A
Net asset value, beginning of period $ 13.64 $ 12.52 $ 12.13 $ 11.42 $ 9.05 $ 13.90
-------- -------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ (0.02) $ (0.03) $ 0.04 $ (0.04) $ (0.04)
Net realized and unrealized gain (loss) on investments 1.22 1.14 0.42 0.68 2.41 (4.81)
-------- -------- -------- -------- -------- --------
Net increase (decrease) from investment operations $ 1.21 $ 1.12 $ 0.39 $ 0.72 $ 2.37 $ (4.85)
Distributions to shareowners:
Net investment income - - (0.00)(b) (0.01) - -
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ 1.21 $ 1.12 $ 0.39 $ 0.71 $ 2.37 $ (4.85)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 14.85 $ 13.64 $ 12.52 $ 12.13 $ 11.42 $ 9.05
======== ======== ======== ======== ======== ========
Total return* 8.87% 8.95% 3.23% 6.29% 26.19% (34.89)%
Ratio of net expenses to average net assets+ 1.44%** 1.42% 1.40% 1.37% 1.45% 1.39%
Ratio of net investment income (loss) to average
net assets+ (0.21)%** (0.18)% (0.27)% 0.35% (0.42)% (0.39)%
Portfolio turnover rate 29%** 60% 79% 194% 47% 88%
Net assets, end of period (in thousands) $391,923 $386,403 $403,610 $475,096 $516,234 $452,070
Ratios with reductions for fees paid indirectly:
Net expenses 1.41%** 1.40% 1.39% 1.37% 1.45% 1.38%
Net investment income (loss) (0.18)%** (0.16)% (0.26)% 0.35% (0.42)% (0.38)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized
+ Ratio with no reduction for fees paid indirectly.
(a) The per share data presented above is based upon the average shares
outstanding for the year presented.
(b) Amount rounds to less than $0.01 cent per share.
The accompanying notes are an integral part of these financial statements.
25
Pioneer Growth Shares
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Six Months
Ended
6/30/07 Year Ended Year Ended Year Ended Year Ended Year Ended
(unaudited) 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02
CLASS B
Net asset value, beginning of period $ 12.25 $ 11.35 $ 11.11 $ 10.54 $ 8.43 $ 13.07
------- ------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment loss $ (0.09) $ (0.17) $ (0.16) $ (0.06) $ (0.14) $ (0.27)
Net realized and unrealized gain (loss) on investments 1.10 1.07 0.40 0.63 2.25 (4.37)
------- ------- -------- -------- -------- --------
Net increase (decrease) from investment operations $ 1.01 $ 0.90 $ 0.24 $ 0.57 $ 2.11 $ (4.64)
------- ------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ 1.01 $ 0.90 $ 0.24 $ 0.57 $ 2.11 $ (4.64)
------- ------- -------- -------- -------- --------
Net asset value, end of period $ 13.26 $ 12.25 $ 11.35 $ 11.11 $ 10.54 $ 8.43
======= ======= ======== ======== ======== ========
Total return* 8.25% 7.93% 2.16% 5.41% 25.03% (35.50)%
Ratio of net expenses to average net assets+ 2.55%** 2.41% 2.37% 2.27% 2.44% 2.26%
Ratio of net investment loss to average net assets+ (1.33)%** (1.18)% (1.25)% (0.58)% (1.41)% (1.27)%
Portfolio turnover rate 29%** 60% 79% 194% 47% 88%
Net assets, end of period (in thousands) $67,547 $85,362 $132,109 $176,623 $213,481 $201,822
Ratios with reductions for fees paid indirectly:
Net expenses 2.51%** 2.39% 2.35% 2.27% 2.43% 2.25%
Net investment loss (1.29)%** (1.16)% (1.23)% (0.58)% (1.40)% (1.26)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
26
Pioneer Growth Shares
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Six Months
Ended
6/30/07 Year Ended Year Ended Year Ended Year Ended Year Ended
(unaudited) 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02
CLASS C
Net asset value, beginning of period $ 12.42 $ 11.48 $ 11.23 $ 10.65 $ 8.51 $ 13.18
--------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.06) $ (0.12) $ (0.15) $ (0.06) $ (0.12) $ (0.23)
Net realized and unrealized gain (loss) on investments 1.11 1.06 0.40 0.64 2.26 (4.44)
--------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ 1.05 $ 0.94 $ 0.25 $ 0.58 $ 2.14 $ (4.67)
--------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ 1.05 $ 0.94 $ 0.25 $ 0.58 $ 2.14 $ (4.67)
--------- ------- ------- ------- ------- -------
Net asset value, end of period $ 13.47 $ 12.42 $ 11.48 $ 11.23 $ 10.65 $ 8.51
========= ======= ======= ======= ======= =======
Total return* 8.45% 8.19% 2.23% 5.45% 25.15% (35.43)%
Ratio of net expenses to average net assets+ 2.20%** 2.19% 2.31% 2.17% 2.32% 2.25%
Ratio of net investment loss to average net assets+ (0.97)%** (0.95)% (1.18)% (0.46)% (1.29)% (1.26)%
Portfolio turnover rate 29%** 60% 79% 194% 47% 88%
Net assets, end of period (in thousands) $ 31,494 $32,853 $38,751 $49,881 $56,358 $45,651
Ratios with reductions for fees paid indirectly:
Net expenses 2.18%** 2.18% 2.30% 2.17% 2.31% 2.24%
Net investment loss (0.95)%** (0.94)% (1.17)% (0.46)% (1.28)% (1.25)%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges.
Total return would be reduced if sales charges were taken into account.
** Annualized
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
27
Pioneer Growth Shares
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
1/1/07 to
2/1/07 (d) Year Ended Year Ended Year Ended 4/1/03 (a)
(unaudited) 12/31/06 12/31/05 12/31/04 to 12/31/03
CLASS R
Net asset value, beginning of period $13.50 $ 12.47 $12.12 $11.45 $ 9.26
------ ------- ------ ------ ------
Increase (decrease) from investment operations:
Net investment income (loss) $(0.02) $ (0.11) $(0.06) $ 0.07 $(0.00)(b)
Net realized and unrealized gain on investments 0.38 1.14 0.41 0.65 2.19
------ ------- ------ ------ ------
Net increase from investment operations $ 0.36 $ 1.03 $ 0.35 $ 0.72 $ 2.19
Distributions to shareowners:
Net investment income - - (0.00)(b) (0.05) -
------ ------- ------ ------ ------
Net increase in net asset value $ 0.36 $ 1.03 $ 0.35 $ 0.67 $ 2.19
------ ------- ------ ------ ------
Net asset value, end of period $13.86 $ 13.50 $12.47 $12.12 $11.45
====== ======= ====== ====== ======
Total return* 2.67% 8.26% 2.90% 6.26% 23.65%(c)
Ratio of net expenses to average net assets+ 2.13%** 2.11% 1.72% 1.37% 1.18%**
Ratio of net investment income (loss) to average net assets+ (1.62)%** (0.87)% (0.59)% 1.01% (0.11)%**
Portfolio turnover rate 29%** 60% 79% 194% 47%
Net assets, end of period (in thousands) $ - $ 421 $ 419 $ 295 $ 4
Ratios with reductions for fees paid indirectly:
Net expenses 2.06%** 2.09% 1.70% 1.37% 1.18%**
Net investment income (loss) (1.55)%** (0.85)% (0.57)% 1.01% (0.11)%**
(a) Class R shares were first publicly offered on April 1,2003.
(b) Amount rounds to less than $0.01 cent per share.
(c) Return is not annualized.
(d) Class R Shares ceased operations on February 1, 2007.
* 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 each end of each period.
+ Ratio with no reduction for fees paid indirectly.
** Annualized
The accompanying notes are an integral part of these financial statements.
28
Pioneer Growth Shares
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
Six Months
Ended
6/30/07 Year Ended Year Ended Year Ended Year Ended Year Ended
(unaudited) 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02
CLASS Y
Net asset value, beginning of period $14.48 $13.19 $12.70 $11.95 $ 9.39 $ 14.34
------ ------ ------ ------ ------ -------
Increase (decrease) from investment operations:
Net investment income $ 0.04 $ 0.07 $ 0.05 $ 0.13 $ 0.03 $ 0.03
Net realized and unrealized gain (loss) on investments 1.29 1.22 0.44 0.71 2.53 (4.98)
------ ------ ------ ------ ------ -------
Net increase (decrease) from investment operations $ 1.33 $ 1.29 $ 0.49 $ 0.84 $ 2.56 $ (4.95)
Distributions to shareowners:
Net investment income - - (0.00)(a) (0.09) - -
------ ------ ------ ------ ------ -------
Net increase (decrease) in net asset value $ 1.33 $ 1.29 $ 0.49 $ 0.75 $ 2.56 $ (4.95)
------ ------ ------ ------ ------ -------
Net asset value, end of period $15.81 $14.48 $13.19 $12.70 $11.95 $ 9.39
====== ====== ====== ====== ====== =======
Total return* 9.19% 9.78% 3.88% 7.08% 27.26% (34.52)%
Ratio of net expenses to average net assets+ 0.78%** 0.72% 0.73% 0.67% 0.71% 0.74%
Ratio of net investment income to average net assets+ 0.44%** 0.52% 0.40% 1.02% 0.32% 0.24%
Portfolio turnover rate 29%** 60% 79% 194% 47% 88%
Net assets, end of period (in thousands) $2,303 $2,820 $2,710 $2,849 $3,242 $ 3,231
Ratios with reductions for fees paid indirectly:
Net expenses 0.78%** 0.72% 0.72% 0.66% 0.71% 0.73%
Net investment income 0.44%** 0.52% 0.41% 1.02% 0.32% 0.25%
(a) Amount rounds to less than $0.01 cent per share.
* 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 each end of each period.
** Annualized
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
29
Pioneer Growth Shares
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NOTES TO FINANCIAL STATEMENTS 6/30/07 (unaudited)
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1. Organization and Significant Accounting Policies
Pioneer Growth 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
appreciation of capital.
The Fund offers four classes of shares - Class A, Class B, Class C and Class Y
shares. Class R shares were liquidated on February 1, 2007. As planned, on
December 10, 2006 Investor Class shares converted to Class A shares. Each class
of shares represents an interest in the same portfolio of investments of the
Fund and has equal rights to voting, redemptions, dividends and liquidation,
except that each class of shares can bear different transfer agent and
distribution fees and has exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B and Class C
shareowners, respectively. There is no distribution plan for Class Y shares.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of income, expenses and gains and losses on investments during the
reporting period. Actual results could differ from those estimates.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. Information regarding the Fund's principal risks are
contained in the Fund's prospectus. Please refer to those documents when
considering the Fund's risks.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements, which are consistent with
those policies generally accepted in the investment company industry:
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Pioneer Growth Shares
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A. Security Valuation
Security transactions are recorded as of trade date. The net asset value of
the Fund is computed once daily, on each day the New York Stock Exchange
(NYSE) is open, as of the close of regular trading on the NYSE. In
computing the net asset value, securities are valued at the last sale price
on the principal exchange where they are traded. Securities that have not
traded on the date of valuation, or securities for which sale prices are
not generally reported, are valued at the mean between the last bid and
asked prices. Securities for which market quotations are not readily
available are valued at their fair values as determined by, or under the
direction of, the Board of Trustees. Trading in foreign securities is
substantially completed each day at various times prior to the close of the
NYSE. The values of such securities used in computing the net asset value
of the Fund's shares are determined as of such times. The Fund also may use
the fair value of a security including a non-U.S. security when the closing
market price on the principal exchange where the security is traded no
longer reflects the value of the security. At June 30, 2007 there were no
securities fair valued. Temporary cash investments are valued at cost which
approximates market value.
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 exercise of reasonable diligence. Interest income 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 federal income tax provision is required.
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Pioneer Growth Shares
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NOTES TO FINANCIAL STATEMENTS 6/30/07 (unaudited) (continued)
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The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as either from or in excess
of net investment income or net realized gain on investment transactions,
or from paid-in capital, depending on the type of book/tax differences that
may exist.
The tax character of current year distributions payable will be determined
at the end of the current fiscal year. There were no distributions paid
during the year ended December 31, 2006.
The following shows the components of accumulated losses on a federal
income tax basis at December 31, 2006:
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2006
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Undistributed ordinary income $ -
Capital loss carryforward (492,007,582)
Unrealized appreciation 32,731,889
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Total $(459,275,693)
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The difference between book basis and tax basis unrealized appreciation 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 UniCredito Italiano S.p.A
(UniCredito Italiano), earned $32,604 in underwriting commissions on the
sale of Class A shares for the six months ended June 30, 2007.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively (see Note 4). Class Y shares are not subject to a distribution
plan. Shareowners of each class share all expenses and fees paid to the
transfer agent, Pioneer Investment Management Shareholder Services, Inc.
(PIMSS), for its services, which are allocated based on the number of
accounts
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Pioneer Growth Shares
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in each class and the ratable allocation of related out-of-pocket expenses
(see Note 3). Income, common expenses and realized and unrealized gains and
losses are calculated at the Fund level and allocated daily to each class
of shares based on their respective percentage of adjusted net assets at
the beginning of the day. Distributions to shareowners are recorded as of
the ex-dividend date. Distributions paid by the Fund with respect to each
class of shares are calculated in the same manner, at the same time, and in
the same amount, except that Class A, Class B, Class C and Class Y shares
can bear different transfer agent and distribution fees.
E. Securities Lending
The Fund lends securities in the Portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to receive interest or
payments in lieu of dividends on the securities loaned. Gain or loss on the
fair value of the loaned securities that may occur during the term of the
loan will be for account of the Fund. The loans are secured by collateral
of at least 102%, at all times, of the fair value of the securities loaned.
The amount of the collateral will be adjusted daily to reflect any price
fluctuation in the value of the loaned securities. The Fund has the right
under the lending agreements to recover the securities from the borrower on
demand. The Fund invests cash collateral in the Securities Lending
Investment Fund, which is sponsored by Xxxxx Brothers Xxxxxxxx & Co., the
Fund's custodian.
F. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or subcustodians. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
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Pioneer Growth Shares
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NOTES TO FINANCIAL STATEMENTS 6/30/07 (unaudited) (continued)
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2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. Management fees are calculated daily at the annual rate of
0.70% of the Fund's average daily net assets up to $500 million; 0.65% of the
next $500 million; and 0.625% of the excess over $1 billion. The basic fee is
subject to a performance adjustment up to a maximum of +/-0.10% based on the
Fund's Class A investment performance as compared with the Xxxxxxx 1000 Growth
Index over a rolling 36-month period. In addition the fee is further limited to
a maximum annualized rate adjustment of +/-0.10% of the average daily net assets
during the current month. On June 28, 2007, PIM made a voluntary capital
contribution of $2,015,263 to the Fund to retroactively reflect a current
revision in the management contract. For the six months ended June 30, 2007,
the aggregate performance adjustment resulted in an increase to the basic fee
of $7,884. The management fee was equivalent to 0.70% of the Fund's average
daily net assets.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $300,510 in transfer agent
fees payable to PIMSS at June 30, 2007.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the Investment
Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service
fee of up to 0.25% of the average daily net assets attributable to Class A
shares in reimbursement of its actual expenditures to finance activities
primarily intended to result in the sale of Class A shares. Pursuant to the
Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of the average daily
net assets attributable to each class of shares. The fee consists of a 0.25%
service fee and a 0.75% distribution fee paid as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class B and Class C shares. Included in due to affiliates is $10,596
in distribution fees payable to PFD at June 30, 2007.
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Pioneer Growth Shares
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In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 18 months of purchase. Class B shares that are redeemed within five
years of purchase are subject to a CDSC at declining rates beginning at 4.00%,
based on the lower of cost or market value of shares being redeemed.
Redemptions of Class C shares within one year of purchase are subject to a CDSC
of 1.00%. Proceeds from the CDSCs are paid to PFD. For the six months ended
June 30, 2007, CDSCs in the amount of $58,381 were paid to PFD.
5. Commission Recapture and Expense Offset Arrangements
The Fund has entered into commission recapture arrangements with brokers with
whom PIM places trades on behalf of the Fund where they provide services to the
Fund in addition to trade execution. These services included payments of
certain expenses on behalf of the Fund. For the six months ended June 30, 2007,
expenses were reduced by $4,137 under this agreement. In addition, the Fund has
entered into certain expense offset arrangements with PIMSS resulting in a
reduction in the Fund's total expenses due to interest earned on cash held by
PIMSS. For the six months ended June 30, 2007, the Fund's expenses were reduced
by $66,055 under such arrangements.
6. Line Of Credit Facility
The Fund, along with certain others in the Pioneer Family of Funds (the Funds),
collectively participate in a $200 million committed, unsecured revolving line
of credit facility. Borrowings are used solely for temporary or emergency
purposes. The Fund may borrow up to the lesser of $200 million or the limits
set by its prospectus for borrowings. Interest on collective borrowings is
payable at the Federal Funds Rate plus 1/2% on an annualized basis. The Funds
pay an annual commitment fee for this facility. The commitment fee is allocated
among such Funds based on their respective borrowing limits. For the six months
ended June 30, 2007, the Fund had no borrowings under this agreement.
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Pioneer Growth Shares
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NOTES TO FINANCIAL STATEMENTS 6/30/07 (unaudited) (continued)
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7. New Pronouncements
In addition, in September 2006, Statement of Financial Accounting Standards No.
157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal
years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
8. Subsequent Event
A proposal to reorganize Pioneer Growth Shares into Pioneer Independence Fund
is being submitted for approval by shareholders of Pioneer Growth Shares at a
meeting anticipated to be held in the fourth quarter of 2007. If approved by
the shareholders of Pioneer Growth Shares, the reorganization is expected to
close as soon as possible thereafter. There can be no assurance that the
reorganization will be approved or, if approved, completed. Each fund's
Trustees approved the proposed reorganization on July 10, 2007 and determined
that it is in the best interests of the shareholders of both funds. The
proposed reorganization is expected to qualify as a tax-free reorganization,
which means that the reorganization will result in no income, gain or loss
being recognized for federal income tax purposes by either fund or their
shareholders as a direct result of the reorganization.
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Pioneer Growth Shares
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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Trustees Officers
Xxxx X. Xxxxx, Xx., Chairman Xxxx X. Xxxxx, Xx., President
Xxxxx X. Xxxx Xxxxxx X. Xxxxxxxxx, Executive
Xxxx X. Xxxx Vice President
Xxxxxxxx X.X. Xxxxxx Xxxxxxx Xxxx, Treasurer
Xxxxxx X. Xxxxxxxxx Xxxxxxx X. Xxxxxxxx, Secretary
Xxxxxx X. Xxxxx
Xxxxxxxxxx X. Xxxxx
Xxxxxxx X. Xxxx
Xxxx Xxxxxxxx
Investment Adviser and Administrator
Pioneer Investment Management, Inc.
Custodian
Xxxxx Brothers Xxxxxxxx & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Xxxxxx Xxxxxx Xxxxxxxxx Xxxx and Xxxx 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 (0-000-000-0000). 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 xxx.xxxxxxxxxxxxxxxxxx.xxx. This information is also available
on the Securities and Exchange Commission's web site at xxxx://xxx.xxx.xxx.
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HOW TO CONTACT PIONEER
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We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 0-000-000-0000
FactFone(SM) for automated fund yields, prices,
account information and transactions 0-000-000-0000
Retirement plans information 0-000-000-0000
Telecommunications Device for the Deaf (TDD) 0-000-000-0000
Write to us:
PIMSS, Inc.
X.X. Xxx 00000
Xxxxxx, Xxxxxxxxxxxxx 00000-0000
Our toll-free fax 0-000-000-0000
Our internet e-mail address xxx.xxxxxxx@xxxxxxxxxxxxxxxxxx.xxx
(for general questions about Pioneer only)
Visit our web site: xxx.xxxxxxxxxxxxxxxxxx.xxx
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement 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 xxxx://xxx.xxx.xxx. 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.
