-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BxfMT3spRsBViaiz1Apu5vhFjlQP3u9ldB95y/n30V2EJ5t0bdKNvSjplANOqn6j Cpf+XGM6kwIDR4ltwse++Q== 0000863334-96-000006.txt : 19960625 0000863334-96-000006.hdr.sgml : 19960625 ACCESSION NUMBER: 0000863334-96-000006 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960430 FILED AS OF DATE: 19960624 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PIONEER GROWTH TRUST CENTRAL INDEX KEY: 0000863334 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 043098863 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06106 FILM NUMBER: 96584536 BUSINESS ADDRESS: STREET 1: 60 STATE ST - 18TH FL CITY: BOSTON STATE: MA ZIP: 02109-1820 BUSINESS PHONE: 6177427825 N-30D 1 SEMIANNUAL REPORT [PIONEER LOGO] Pioneer Equity-Income Fund SEMIANNUAL REPORT APRIL 30, 1996 PIONEER EQUITY-INCOME FUND 60 State Street Boston, Massachusetts 02109 OFFICERS JOHN F. COGAN, JR., Chairman and President DAVID D. TRIPPLE, Executive Vice President JOHN A CAREY, Vice President WILLIAM H. KEOUGH, Treasurer JOSEPH P. BARRI, Secretary TRUSTEES JOHN F. COGAN, JR. RICHARD H. EGDAHL, M.D. MARGARET B.W. GRAHAM JOHN W. KENDRICK MARGUERITE A. PIRET DAVID D. TRIPPLE STEPHEN K. WEST JOHN WINTHROP INVESTMENT ADVISER PIONEERING MANAGEMENT CORPORATION PRINCIPAL UNDERWRITER PIONEER FUNDS DISTRIBUTOR, INC. CUSTODIAN BROWN BROTHERS HARRIMAN & CO. INDEPENDENT PUBLIC ACCOUNTANTS ARTHUR ANDERSEN LLP LEGAL COUNSEL HALE AND DORR SHAREHOLDER SERVICES AND TRANSFER AGENT PIONEERING SERVICES CORPORATION 60 State Street Boston, Massachusetts 02109 - --------------------------------------------------------- Please call Pioneer for information on: Existing accounts, new accounts, prospectuses, applications, and service forms .........................1-800-225-6292 Fund yields and prices ....................1-800-225-4321 Toll-free fax .............................1-800-225-4240 Retirement plans ..........................1-800-622-0176 Telecommunications Device for the Deaf (TDD) ................................1-800-225-1997 - ---------------------------------------------------------- When distributed to persons who are not shareowners of the Fund, this report must be accompanied by an official prospectus, that discusses the objectives, policies, sales charges and other information about the Fund. 0696-3428 (c)Pioneer Funds Distributor, Inc. Dear Shareowner, It is hard to believe that Pioneer Equity-Income has already reached the middle of its seventh fiscal year! Once again, the United States' stock market is shaping up as a pretty good place to have one's investment dollars. However, in recent months an upward movement in interest rates and commodities prices has caused concern that corporate earnings growth could slow. Interest-rate sensitive industries, including utilities and financial services, have been particular worries for investors, but industrial stocks and even high-growth technology issues have also come under scrutiny. In short, investors, while still generally bullish, became more cautious as your Fund's semiannual period progressed through April 30. How Your Fund Performed Your Fund achieved the following results for the six months ended April 30, 1996: Class A Shares (bullet) Net asset value stood at $19.75 per share on April 30, 1996, versus $18.22 at October 31, 1995. (bullet) Shareowners received income dividends totaling $0.2473 per share, along with a $0.1418 per share capital gains distribution paid in December 1995. (bullet) The Fund's dividend yield on Class A shares continued to outpace that of the unmanaged Standard & Poor's (S&P) 500 Index. We are pleased to state that we have met our goal of consistently exceeding the yield on the S&P 500 since the Fund's inception. (bullet) Assuming reinvestment of all distributions during the period, the increase in share value translated into a total return of 10.60% for the six months at net asset value and 4.25% at maximum public offering price. Class B Shares (bullet) Net asset value was $19.65 per share on April 30, 1996, versus $18.15 per share at October 31, 1995. (bullet) Shareowners received income dividends totaling $0.2045 per share, along with a $0.1418 per share capital gains distribution paid in December 1995. (bullet) Assuming reinvestment of all distributions during the period, the increase in share value contributed to a total return of 10.23% for the six months, assuming shares were held the entire six months. If shares were sold at the end of the period, and the maximum 4% contingent deferred sales charge deducted, total return would have been 6.23%. Class C Shares The Fund introduced Class C shares on January 31, 1996. Since then, they achieved the following results: (bullet) Net asset value was $19.66 per share on April 30, 1996, versus the introductory $19.49. (bullet) Shareowners received income dividends totaling $0.09 per share through April 30. (bullet) Assuming reinvestment of all distributions during the period, the increase in share value contributed to a total return of 1.33% for the abbreviated period, assuming shares were held throughout. If shares were sold and the 1% sales charge deducted at the end of the period, total return would have been 0.33%. By comparison, the unmanaged Standard & Poor's 500 Index showed a total return of 13.75% for the six months through April 30. The return on the S&P 500 reflects the results of many stocks that are ineligible for inclusion in your Fund's portfolio due to their insufficient dividend income. The accompanying table shows the Fund's results for longer time periods. - ---------------------------------------------------------------- Average Annual Total Returns (As of April 30, 1996) Class A Shares Net Public Period Asset Value Offering Price* - ------------------------- ------------ ------------------ Life of Fund (7/25/90) 14.44% 13.26% 5 Years 15.66 14.31 1 Year 26.39 19.10 Class B Shares Period If Held If Redeemed** - ------------------------- ---------- ---------------- Life of Fund (4/4/94) 16.97% 15.74% 1 Year 25.53 21.53 - ----------------------------------------------------------------- Review of Investment Activity We are very pleased to report that Fund assets continued to grow, nearing $420 million on April 30, an increase of more than one-third from October 31, 1995. Importantly, the growth in assets resulted from both appreciation of portfolio holdings and new purchases of Fund shares. The added assets, together with a very active stock market, permitted us to make a large number of changes in the portfolio. We continued our drive to reduce the number of positions by adding 15 securities while eliminating 34, a net reduction of 19. Many of the positions eliminated, some dating back to the Fund's early years, were smaller holdings we believed were not suitable for the additional investments needed to make them meaningful to the Fund today. In a few other cases, we decided that other investments were more attractive. There also was one large merger in the portfolio. FirsTier Financial was acquired by First Bank System; we retained the First Bank stock received in exchange for FirsTier. Looking at sectors, we increased holdings in consumer durables from 7.9% to 10.6% by increasing investments in the "Big Three" auto manufacturers, Chrysler, Ford and General Motors. With better consumer confidence and a stronger economy, the outlook appears brighter for these companies, which also pay attractive dividends. Within energy, we added oil services companies, most importantly Schlumberger. Financial holdings show new diversification into insurance with the addition of Chubb, SAFECO and St. Paul, all high-quality property and casualty companies. We sharply increased pharmaceutical exposure by adding Bristol-Myers Squibb and purchasing more Schering-Plough. Finally, we kept reducing holdings in electric, gas and water utilities and expanding investments in telecommunications. While there may again be opportunities in the other utility sectors, we continue to favor telephone utilities for the greater growth in demand for their services. Looking Ahead The economic clouds we mentioned in the Fund's October annual report have not altogether cleared. While the economy appears to be doing pretty well, that strength has prompted concerns over interest rates and inflation. As always, we look at individual stocks and evaluate each on its merits and market valuation. Currently, a particular challenge is achieving adequate dividend income while the overall dividend yield on stocks, as measured by the S&P 500, is near an all-time low of barely over 2%. We are looking across many industry lines for dividends, and we are also emphasizing investments in companies that offer not only good expected dividend yields, but also the capability and stated policy of increasing their dividends regularly. On the next few pages you will see the Fund's audited Schedule of Investments, as well as audited financial statements, as of April 30, 1996. Please call your investment representative with any questions you have about Pioneer Equity-Income Fund, or call Pioneer directly at 1-800-225-6292. We appreciate your support. Respectfully, /s/ John F. Cogan, Jr. - --------------------------------- John F. Cogan, Jr. Chairman and President, Pioneer Equity-Income Fund ________________________ * Reflects deduction of the maximum 5.75% sales charge at the beginning of the period and assumes reinvestment of distributions at net asset value. ** Reflects deduction of the maximum 4.0% contingent deferred sales charge at the end of the period and assumes reinvestment of distributions. Past performance does not guarantee future results. Return and principal fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. 2 SCHEDULE OF INVESTMENTS--PIONEER EQUITY-INCOME FUND--APRIL 30, 1996
Principal Amount Value - ----------- ----------- INVESTMENT IN SECURITIES--100% CONVERTIBLE CORPORATE BONDS--0.6% $1,000,000 EMC Corp., Sub. Deb., 4.25%, 2001 $1,147,500 1,310,000 Guilford Mills Inc., Sub. Deb., 6.00%, 2012 1,255,963 --------- TOTAL CONVERTIBLE CORPORATE BONDS (Cost $2,442,500) $2,403,463 --------- Shares - ----------- CONVERTIBLE PREFERRED STOCKS--3.7% 75,000 Delta Air Lines, Inc., $3.50, Series C $ 4,753,125 70,000 Reynolds Metals, 7.00% 3,368,750 132,400 Rouse Co., 6.50%, Series A 7,282,000 1,840 Stepan Co., 5.50% 34,960 --------- TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $14,188,241) $15,438,835 --------- COMMON STOCKS--95.7% BASIC INDUSTRIES--9.2% Chemicals--3.6% 147,524 ARCO Chemical Co. $ 7,837,212 136,300 Borden Chemicals and Plastics, L.P. 1,840,050 66,500 E.I. du Pont de Nemours and Co. 5,344,938 --------- $15,022,200 --------- Iron & Steel--1.1% 348,937 Roanoke Electric Steel Corp. $ 4,623,415 --------- Metals & Mining--3.2% 13,800 Great Northern Iron Ore Properties CBI $ 648,600 170,600 Phelps Dodge Corp. 12,539,100 --------- $13,187,700 --------- Paper Products--1.3% 100,000 Union Camp Corp. $ 5,437,500 --------- TOTAL BASIC INDUSTRIES $38,270,815 --------- CAPITAL GOODS--5.4% Producer Goods--5.4% 556,557 The Gorman-Rupp Co.+ $ 8,209,216 24,700 Johnson Controls, Inc. 1,766,050 8,000 Manitowoc Company Inc. 272,000 63,000 Minnesota Mining & Manufacturing Co. 4,142,250 52,600 Timken Co. 2,084,275 330,000 Westinghouse Electric Corp. 6,228,750 --------- TOTAL CAPITAL GOODS $22,702,541 --------- CONSUMER DURABLES--10.6% Motor Vehicles--10.6% 185,150 Chrysler Corp. $11,618,162 563,800 Ford Motor Co. 20,226,325 224,700 General Motors Corp. 12,189,975 --------- TOTAL CONSUMER DURABLES $44,034,462 --------- CONSUMER NON-DURABLES--9.9% Agriculture & Food--5.8% 135,900 CPC International, Inc. $ 9,394,087 147,750 H.J. Heinz Co. 5,005,031 180,000 Quaker Oats Co. 6,187,500 117,300 Sara Lee Corp. 3,636,300 --------- $24,222,918 --------- Consumer Luxuries--1.4% 162,000 Cedar Fair, L.P. $ 5,791,500 ---------
The accompanying notes are an integral part of these financial statements. 3
Shares Value - ----------- --------- Retail Non-Food--2.7% 60,000 J.C. Penney Co., Inc. $ 2,970,000 124,000 May Department Stores Co. 6,324,000 30,000 Mercantile Stores Co., Inc. 1,871,250 --------- $11,165,250 --------- TOTAL CONSUMER NON-DURABLES $41,179,668 --------- ENERGY--5.1% Oil & Gas Extraction--3.7% 78,500 Amoco Corp. $ 5,730,500 114,000 Chevron Corp. 6,612,000 65,700 Lakehead Pipeline Partners, L.P. 1,798,538 11,500 Mobil Corp. 1,322,500 --------- $15,463,538 --------- Oil Services--1.4% 50,300 Buckeye Partners, L.P. $ 1,936,550 28,800 Santa Fe Pacific Pipeline Partners, L.P. 1,076,400 30,000 Schlumberger Ltd. 2,647,500 --------- $ 5,660,450 --------- TOTAL ENERGY $21,123,988 --------- FINANCIAL--18.0% Commercial Banks--13.8% 103,100 AmSouth Bancorp $ 3,956,463 117,400 Bank of New York Co., Inc. 5,693,900 95,000 Boatmen's Bancshares, Inc. 3,681,250 157,500 CoreStates Financial Corp. 6,142,500 152,565 First Bank System, Inc. 9,192,041 270,000 First Security Corp. 6,817,500 150,000 First Tennessee National Corp. 4,950,000 162,781 Huntington Bancshares, Inc. 3,947,439 108,000 National City Corp. 3,982,500 201,127 Old Kent Financial Corp. 7,542,262 65,000 Southtrust Corp. 1,763,125 --------- $57,668,980 --------- Insurance--General--3.9% 40,000 Chubb Corp. $ 3,785,000 220,500 Safeco Corp. 7,276,500 103,100 St. Paul Companies, Inc. 5,477,188 --------- $16,538,688 --------- Investments--0.3% 36,900 Eaton Vance Corp. $ 1,125,450 --------- TOTAL FINANCIAL $75,333,118 --------- SERVICES--8.1% Health & Personal Care--1.1% 89,700 U.S. Healthcare, Inc. $ 4,675,612 --------- Publishing--2.0% 78,500 Dun & Bradstreet Corp. $ 4,778,688 80,000 McGraw-Hill Companies, Inc. 3,530,000 --------- $ 8,308,688 --------- Pharmaceuticals--5.0% 40,000 Bristol-Myers Squibb Co. $ 3,290,000 305,400 Schering-Plough Corp. 17,522,325 --------- $20,812,325 --------- TOTAL SERVICES $33,796,625 ---------
The accompanying notes are an integral part of these financial statements. 4
Shares Value - ----------- --------- TECHNOLOGY--3.2% Business Machines--1.1% 44,000 IBM Corp. $ 4,730,000 --------- Electronics--2.1% 134,900 Diebold, Inc. $ 5,193,650 92,000 Thomas & Betts Corp. 3,622,500 --------- $ 8,816,150 --------- TOTAL TECHNOLOGY $ 13,546,150 --------- TRANSPORTATION--1.4% Railroad & Bus--1.4% 71,600 Norfolk Southern Corp. $ 6,014,400 --------- TOTAL TRANSPORTATION $ 6,014,400 --------- UTILITIES--24.8% Electric Utility--1.0% 147,100 Allegheny Power System, Inc. $ 4,302,675 --------- Gas Utility--1.2% 55,300 Brooklyn Union Gas Co. $ 1,451,625 85,950 Indiana Energy, Inc. 2,052,056 98,000 Public Service Co. of North Carolina, Inc. 1,580,250 --------- $ 5,083,931 --------- Telecommunications--21.8% 227,000 Ameritech Corp. $ 13,251,125 238,600 Bell Atlantic Corp. 15,509,000 158,200 BellSouth Corp. 6,328,000 169,700 Frontier Corp. 5,366,763 124,000 GTE Corp. 5,378,500 275,500 Lincoln Telecommunications Co. 4,683,500 246,500 NYNEX Corp. 12,109,312 220,000 Pacific Telesis Group 7,535,000 283,000 SBC Communications, Inc. 14,150,000 199,877 U.S. West, Inc. 6,545,972 --------- $ 90,857,172 --------- Utility/Other--0.8% 75,200 American Water Works, Inc. $ 2,857,600 20,500 E'Town Corp. 561,188 --------- $ 3,418,788 --------- TOTAL UTILITIES $103,662,566 --------- TOTAL COMMON STOCKS (Cost $337,692,140) $399,664,333 --------- TOTAL INVESTMENT IN SECURITIES (Cost $354,322,881) (a) $417,506,631 =========
- ------------------------------------------------------------------------------- + Investments held representing 5% or more of the outstanding voting stock of such company (see Note 6). (a) At April 30, 1996, the net unrealized gain on investments based on cost for federal income tax purposes of $354,322,881 was as follows: Aggregate gross unrealized gain for all investments in which there is an excess of value over tax cost .................. ............$65,637,059 Aggregate gross unrealized loss for all investments in which there is an excess of tax cost over value ................................(2,453,309) ----------- Net unrealized gain......................................... $63,183,750 -------------------------------------------------------------------------- Purchases and sales of securities (excluding temporary cash investments) for the six months ended April 30, 1996 aggregated $152,854,480 and $73,296,863, respectively. The accompanying notes are an integral part of these financial statements. 5 PIONEER EQUITY-INCOME FUND BALANCE SHEET--April 30,1996 ASSETS: Investment in securities, at value (cost $354,322,881; see Schedule of Investments and Notes 1 and 6) $417,506,631 Cash 203,981 Receivables-- Investment securities sold 268,916 Fund shares sold 2,620,757 Dividends and Interest 1,442,581 Other 3,442 ----------- Total assets $422,046,308 ----------- LIABILITIES: Payables-- Investment securities purchased $ 751,175 Fund shares repurchased 997,802 Due to affiliates (Notes 2, 3 and 4) 259,313 Accrued expenses 47,506 ----------- Total liabilities $ 2,055,796 ----------- NET ASSETS: Paid-in capital (Note 1) $350,918,472 Accumulated undistributed net investment income (Note 1) 1,038,785 Accumulated undistributed net realized gain on investments (Note 1) 4,849,505 Net unrealized gain on investments 63,183,750 ----------- Total net assets $419,990,512 =========== NET ASSET VALUE PER SHARE: Class A--(based on $311,494,155 / 15,771,862 shares of beneficial interest outstanding--unlimited number of shares authorized) $19.75 ====== Class B--(based on $107,030,203 / 5,446,381 shares of beneficial interest outstanding--unlimited number of shares authorized) $19.65 ====== Class C--(based on $1,466,154 / 74,575 shares of beneficial interest outstanding--unlimited number of shares authorized) $19.66 ====== MAXIMUM OFFERING PRICE: Class A $20.95 ======
The accompanying notes are an integral part of these financial statements. 6 PIONEER EQUITY-INCOME FUND STATEMENT OF OPERATIONS For the Six Months Ended April 30, 1996
INVESTMENT INCOME (NOTE 1): Dividends $7,538,623 Interest 155,242 ------- Total investment income $ 7,693,865 ---------- EXPENSES: Management fees (Note 2) $1,182,628 Transfer agent fees (Note 3) Class A 281,192 Class B 83,484 Class C 590 Distribution fees (Note 4) Class A 355,829 Class B 421,846 Class C 1,570 Registration fees 124,808 Custodian fees 36,641 Professional fees 23,842 Accounting (Note 2) 35,490 Printing 24,752 Fees and expenses of nonaffiliated trustees 9,460 Miscellaneous 15,090 ------- Total expenses $ 2,597,222 Less fees paid indirectly (Note 5) (27,731) ---------- Net expenses $ 2,569,491 ---------- Net investment income $ 5,124,374 ---------- REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments (Note 1) $ 4,973,144 Change in net unrealized gain on investments 24,569,307 ---------- Net gain on investments $29,542,451 ---------- Net increase in net assets resulting from operations $34,666,825 ==========
The accompanying notes are an integral part of these financial statements. 7 PIONEER EQUITY-INCOME FUND STATEMENTS OF CHANGES IN NET ASSETS For the Six Months Ended April 30, 1996 and the Year Ended October 31, 1995
Six Months Year Ended Ended April 30, October 31, 1996 1995 ----------- --------------- FROM OPERATIONS: Net investment income $ 5,124,374 $ 7,581,927 Net realized gain on investments 4,973,144 2,578,622 Change in net unrealized gain on investments 24,569,307 35,460,573 --------- ----------- Net increase in net assets resulting from operations $ 34,666,825 $ 45,621,122 --------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A ($0.25 and $0.53 per share, respectively) $ (3,653,277) $ (6,559,110) Class B ($0.20 and $0.45 per share, respectively) (903,357) (866,524) Class C ($0.09 per share) (3,522) -- Net realized gain Class A ($0.14 and $0.40 per share, respectively) (2,023,138) (4,472,881) Class B ($0.14 and $0.40 per share, respectively) (557,696) (399,279) --------- ----------- Decrease in net assets resulting from distributions to shareholders $ (7,140,990) $(12,297,794) --------- ----------- FROM FUND SHARE TRANSACTIONS: Net proceeds from sale of shares $119,746,881 $136,750,005 Net asset value of shares issued to shareholders in reinvestment of dividends 6,575,068 11,369,138 Cost of shares repurchased (44,271,422) (59,634,245) --------- ------------- Net Increase in net assets resulting from fund share transactions $ 82,050,527 $ 88,484,898 --------- ------------- Net increase in net assets $109,576,362 $121,808,226 NET ASSETS: Beginning of period 310,414,150 188,605,924 --------- ------------- End of period (including accumulated undistributed net investment income of $1,038,785 and $474,567, respectively) $419,990,512 $310,414,150 ========= =============
Six Months Ended Year Ended April 30, 1996 October 31,1995 ------------------------- --------------------------- Shares Amount Shares Amount ---------- ----------- ---------- ------------- CLASS A Shares sold 3,587,727 $ 69,470,444 5,290,568 $ 87,988,000 Shares issued to shareholders in reinvestment of distributions 273,507 5,267,500 645,020 10,214,521 Less shares repurchased (1,811,748) (35,050,599) (3,101,300) (51,919,543) -------- --------- -------- ----------- Net increase 2,049,486 $ 39,687,345 2,834,288 $ 46,282,978 ======== ========= ======== =========== CLASS B Shares sold 2,524,823 $ 48,807,768 2,941,211 $ 48,762,005 Shares issued to shareholders in reinvestment of distributions 68,069 1,305,479 71,617 1,154,617 Less shares repurchased (475,314) (9,210,390) (468,458) (7,714,702) -------- --------- -------- ----------- Net increase 2,117,578 $ 40,902,857 2,544,370 $ 42,201,920 ======== ========= ======== =========== CLASS C* Shares sold 75,000 $ 1,468,669 Shares issued to shareholders in reinvestment of distributions 106 2,089 Less shares repurchased (531) (10,433) -------- --------- Net increase 74,575 $ 1,460,325 ======== =========
* Class C shares were first publicly offered on January 31, 1996. The accompanying notes are an integral part of these financial statements. 8 PIONEER EQUITY-INCOME FUND FINANCIAL HIGHLIGHTS Selected Data for a Share Outstanding for the Periods Presented
July 25, Six Months Ended For the Years Ended October 31, 1990 to April 30, ------------------------------ October 31, CLASS A 1996 1995 1994 1993 1992 1991 1990 ---------------- ------- ------- ------ ------- ------- ---------- Net asset value, beginning of period $ 18.22 $ 16.16 $ 16.92 $ 14.56 $ 13.25 $ 10.35 $12.50 -------- ----- ----- ----- ---- ----- ------ Increase (decrease) from investment operations: Net investment income $ 0.28 $ 0.54 $ 0.55 $ 0.50 $ 0.52 $ 0.61 $ 0.22 Net realized and unrealized gain (loss) on investments 1.64 2.45 (0.54) 2.46 1.57 2.94 (2.24) ------- ----- ----- ----- ---- ----- ------ Total increase (decrease) from investment operations $ 1.92 $ 2.99 $ 0.01 $ 2.96 $ 2.09 $ 3.55 $(2.02) Distributions to shareholders from: Net investment income (0.25) (0.53) (0.54) (0.50) (0.56) (0.65) (0.13) Net realized gain (0.14) (0.40) (0.23) (0.10) (0.22) -- -- -------- ----- ----- ----- ---- ----- ----- Net increase (decrease) in net asset value $ 1.53 $ 2.06 $ (0.76) $ 2.36 $ 1.31 $ 2.90 $(2.15) -------- ----- ----- ----- ---- ----- ------ Net asset value, end of period $ 19.75 $ 18.22 $ 16.16 $ 16.92 $ 14.56 $ 13.25 $10.35 ======== ===== ===== ===== ==== ===== ====== Total return* 10.60% 19.51% 0.09% 20.71% 16.53% 35.10% (13.40%) Ratio of net expenses to average net assets 1.23%**+ 1.29%+ 1.24% 1.33% 1.73% 1.75% 1.75%** Ratio of net investment income to average net assets 2.94%**+ 3.26%+ 3.43% 3.20% 4.01% 5.54% 8.44%** Portfolio turnover rate 40.15%** 13.10% 26.67% 13.57% 18.13% 54.37% 3.83%** Average commission rate paid per exchange listed transaction $ 0.0586 -- -- -- -- -- -- Net assets, end of period (in thousands) $311,494 $249,981 $175,943 $143,025 $39,269 $10,616 $3,212 Ratios assuming no waiver of fees and assumption of expenses by PMC: Net expenses -- -- -- -- 1.77% 2.92% 6.62%** Net investment income -- -- -- -- 3.97% 4.37% 3.57%** Ratios assuming reduction for fees paid indirectly: Net expenses 1.22%** 1.27% -- -- -- -- -- Net investment income 2.95%** 3.28% -- -- -- -- --
+ Ratios assuming no reduction for fees paid indirectly. * 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. The accompanying notes are an integral part of these financial statements. 9 PIONEER EQUITY-INCOME FUND FINANCIAL HIGHLIGHTS Selected Data for a Share Outstanding for the Periods Presented (Continued)
April 4, 1994 Six Months Ended Year Ended to April 30, 1996 October 31, 1995 October 31, 1994 CLASS B ---------------- ---------------- ---------------- Net asset value, beginning of period $ 18.15 $ 16.14 $ 15.46 ------- ------ ------ Increase from investment operations: Net investment income $ 0.21 $ 0.45 $ 0.21 Net realized and unrealized gain on investments 1.63 2.41 0.71 ------- ------ ------ Total increase from investment operations $ 1.84 $ 2.86 $ 0.92 Distributions to shareholders: From net investment income $ (0.20) $ (0.45) $ (0.21) In excess of net investment income -- -- (0.03) From net realized gain (0.14) (0.40) -- -------- ----- ------ Net increase in net asset value $ 1.50 $ 2.01 $ 0.68 ------- ----- ------ Net asset value, end of period $ 19.65 $ 18.15 $ 16.14 ======= ===== ====== Total return* 10.17% 18.64% 5.93% Ratio of net expenses to average net assets 1.98%**+ 2.02%+ 1.92%** Ratio of net investment income to average net assets 2.14%**+ 2.35%+ 2.35%** Portfolio turnover rate 40.15%** 13.10% 26.67% Average commission rate paid per exchange listed transaction $ 0.0586 Net assets, end of period (in thousands) $107,030 $60,433 $12,663 Ratios assuming reduction for fees paid indirectly: Net expenses 1.96%** 1.98% -- Net investment income 2.16%** 2.39% -- CLASS C*** January 31, 1996 to April 30, 1996 ---------------- Net asset value, beginning of period $ 19.49 ------- Increase from investment operations: Net investment income $ 0.08 Net realized and unrealized gain on investments 0.18 ------- Total increase from investment operations $ 0.26 Distributions to shareholders: From net investment income $ (0.08) ------- In excess of net investment income (0.01) Net increase in net asset value $ 0.17 ------- Net asset value, end of period $ 19.66 ======= Total return* 1.33% Ratio of net expenses to average net assets 2.23%**+ Ratio of net investment income to average net assets 1.59%**+ Portfolio turnover rate 40.15%** Average commission rate paid per exchange listed transaction $ 0.0586 Net assets, end of period (in thousands) $ 1,466 Ratios assuming reduction for fees paid indirectly: Net expenses 2.13%** Net investment income 1.69%**
+ Ratios assuming no reduction for fees paid indirectly. * 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. *** Class C shares were first publicly offered on January 31, 1996. The accompanying notes are an integral part of these financial statements. 10 NOTES TO FINANCIAL STATEMENTS--April 30, 1996 - ------------------------------------------------------------------------------ 1. Pioneer Equity-Income Fund (the Fund), one of three funds that composes Pioneer Growth Trust (the Trust), is a Massachusetts business trust registered under the Investment Company Act of 1940 as a diversified, open- end management investment company. The investment objective of the Fund is to seek current income and long- term growth of capital. The Board of Trustees (the Trustees) has authorized the issuance of three share classes of the Fund, designated as Class A, Class B and Class C shares. Class C shares were first publicly offered on January 31, 1996. The shares of Class A, Class B and Class C represent an interest in the same portfolio of investments of the Fund and have equal rights to voting, redemptions, dividends and liquidation, except that each class of shares can bear different transfer agent and distribution fees and have exclusive voting rights with respect to the distribution plans that have been adopted by Class A, Class B and Class C shareholders, respectively. The Fund's financial statements have been prepared in conformity with generally accepted accounting principles that require the management of the Fund to, among other things, make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Fund, which are in conformity with those generally accepted in the investment company industry: A. Security Valuation--Security transactions are recorded on trade date. Each day, securities are valued at the last sale price on the principal exchange where they are traded. Securities that have not traded on the date of valuation, or securities for which sale prices are not generally reported, are valued at the mean between the last bid and asked prices. Securities for which market quotations are not readily available are valued at their fair values as determined by, or under the direction of, the Trustees. Temporary cash investments are valued at amortized cost. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Gains and losses from sales of investments are calculated on the "identified cost" method for both financial reporting and federal income tax purposes. It is the Fund's practice to first select for sale those securities that have the highest cost and also qualify for long-term capital gain or loss treatment for tax purposes. 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 shareholders. Therefore, no federal income tax provision is required. The characterization of distributions to shareholders for financial reporting purposes is determined in accordance with federal income tax rules. Therefore, the source of the Fund's distributions may be shown in the accompanying financial statements as either from or in excess of net investment income or net realized gain on investment transactions, or from paid-in capital, depending on the type of book/tax differences that may exist. C. Fund Shares--The Fund records sales and repurchases of its shares on trade date. Net losses, if any, as a result of cancellations, are absorbed by Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund and an indirect wholly owned subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $222,730 in underwriting commissions on the sale of fund shares during the six months ended April 30, 1996. Distributions to shareholders are recorded as of the ex-dividend date. Distributions paid by the Fund, if any, with respect to each class of shares are calculated in the same manner, at the same time, on the same day and in the same amount, except that Class A, Class B, and Class C shares bear different transfer agent and distribution fees. 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. Shareholders of each class share all expenses and fees paid to the transfer agent, Pioneering Services Corporation (PSC), for their services, which are allocated based on number of accounts in each class and the ratable allocation of related out-of-pocket expense (see Note 3). Income, common expenses and realized 11 and unrealized gains and losses are calculated at the Fund level and allocated daily to each class of shares based on the respective percentage of adjusted net assets at the beginning of the day. 2. Pioneering Management Corporation (PMC), the Fund's investment adviser, manages the Fund's portfolio and is a wholly owned subsidiary of PGI. Management fees are calculated daily at the annual rate of 0.65% of the Fund's average daily net assets up to $300 million; 0.60% of the next $200 million; 0.50% of the next $500 million; and 0.45% of the excess over $1 billion. In addition, under the management agreement, certain other services and costs, including accounting, regulatory reporting and insurance premiums, are paid by the Fund. Included in due to affiliates is $36,467 and $10,361 in management fees and accounting fees, respectively, payable to PMC at April 30, 1996. 3. PSC, a wholly owned subsidiary of PGI, provides substantially all transfer agent and shareholder services to the Fund at negotiated rates. Included in due to affiliates is $54,534 in transfer agent fees payable to PSC at April 30, 1996. 4. The Fund adopted a Plan of Distribution for each class of shares (Class A Plan, Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the Investment Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service fee of up to 0.25% of the Fund's average daily net assets in reimbursement of its actual expenditures to finance activities primarily intended to result in the sale of Class A shares. Pursuant to the Class B Plan and 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 $157,951 in distribution fees payable to PFD at April 30, 1996. In addition, redemptions of each class of shares may be subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on certain net asset value purchases of Class A shares that are redeemed within one year of purchase. Class B shares that are redeemed within 6 years of purchase are subject to a CDSC at declining rates beginning at 4.0%, based on the lower of cost or market value of shares being redeemed. Redemptions of Class C shares within one year of purchase are subject to a CDSC of 1.00%. Proceeds from the CDSC are paid to PFD. For the six months ended April 30, 1996, CDSC in the amount of $54,326 was paid to PFD. 5. The Fund has entered into certain expense offset arrangements resulting in a reduction in the Fund's total expenses. For the six months ended April 30, 1996, the Fund's expenses were reduced by $27,731 under such arrangements. 6. The Fund's investment in certain companies may exceed 5% of the outstanding voting stock. Such companies are deemed affiliates of the Fund for financial reporting purposes. The following summarizes transactions with affiliates of the Fund as of April 30, 1996: Purchases Sales Dividend AFFILIATE Cost Cost Income Value ---------- ----- -------- ---------- The Gorman-Rupp Co. $5,902,512 $ -- $96,747 $8,209,216 12 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS - ------------------------------------------------------------------------------ TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER EQUITY-INCOME FUND: We have audited the accompanying balance sheet of Pioneer Equity-Income Fund (one of three funds that composes Pioneer Growth Trust, a Massachusetts business trust), including the schedule of investments, as of April 30, 1996, and the related statement of operations, the statements of changes in net assets and the financial highlights for the periods presented. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 1996, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Pioneer Equity-Income Fund as of April 30, 1996, and the results of its operations, the changes in its net assets and the financial highlights for the periods presented, in conformity with generally accepted accounting principles. Boston, Massachusetts ARTHUR ANDERSEN LLP May 31, 1996 13 -----END PRIVACY-ENHANCED MESSAGE-----