UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07870
Pioneer Real Estate Shares Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Terrence J. Cullen, Amundi Pioneer Asset Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: December 31
Date of reporting period: January 1, 2018 through June 30, 2018
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Pioneer Real
Estate Shares
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Semiannual Report | June 30, 2018
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Ticker Symbols:
Class A PWREX
Class C PCREX
Class Y PYREX
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
visit us: www.amundipioneer.com
Table of Contents
President's Letter 2
Portfolio Management Discussion 4
Portfolio Summary 10
Prices and Distributions 11
Performance Update 12
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 22
Notes to Financial Statements 29
Additional Information 38
Trustees, Officers and Service Providers 40
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 1
President's Letter
Over the first half of 2018, the U.S. stock market, as measured by the Standard
& Poor's 500 Index (the S&P 500), has returned 2.65%, while bond markets, as
measured by the Bloomberg Barclays U.S. Aggregate Bond Index, have been
negative, returning -1.62%. While the markets have delivered somewhat mixed and
tepid returns, we have observed the U.S. Federal Reserve System (the Fed)
continuing to tighten monetary policy by increasing interest rates in both March
and June, and moving forward with the tapering of its balance sheet, a process
which began in October 2017. The Fed also signaled the potential for two
additional rate hikes before the end of this year, given robust economic growth
and the potential for rising inflation.
Although domestic equities gained ground during the first six months of the
year, the investment backdrop proved more challenging compared to the favorable
conditions of the past two years. On the positive side, stocks continued to
benefit from the underpinnings of robust domestic economic growth, lower tax
rates, and rising corporate earnings. At the same time, however, day-to-day
market volatility began to pick up in response to worries about rising interest
rates and uncertainty regarding U.S. trade policy. In fact, while the S&P 500
Index was positive for the first half of the year, the majority of its gain
occurred in January, as stocks suffered a steep sell-off in early February and
spent the rest of the six months ended June 30, 2018, regaining lost ground.
Across the fixed-income space, rising interest rates have helped drive down
returns of most asset classes, though the floating-rate sector, which includes
bank loans, has fared well in the rising-rate environment. In addition,
structured sectors, such as asset-backed securities (ABS) and mortgage-backed
securities (MBS), have generally outperformed Treasuries. Agency MBS, in
particular, have performed well as the housing market has continued to show
strength, despite rising interest rates and rising home prices.
Although we have experienced an increase in volatility in the equity markets,
looking ahead, we have not changed our outlook and still have a constructive
view of U.S. stocks, especially given other investment alternatives. Economic
growth continues to improve and overall equity valuations - while elevated in
the growth segment of the market - in our view, are not excessive. In addition,
U.S. gross domestic product (GDP) growth remains strong, coming in at above 2%
for the first quarter of 2018, with projections of a continued, if not
increasing growth rate for the second quarter.
2 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
In fixed income, we believe that attractive investment opportunities still
exist, even with interest rates on the rise. In general, our core fixed-income
portfolios remain underweight to nominal U.S. Treasuries, which are sensitive to
the rising-rate environment. We have, however, allocated assets to Treasury
inflation-protected securities, or TIPS, which are indexed to inflation in order
to protect against its negative effects. In addition, we believe investors
should be selective when investing in the investment-grade bond sector, as the
use of leverage by corporations to fund mergers and acquisitions as well as
stock buybacks and dividend increases has risen significantly. We continue to
see more attractive valuations within structured investment vehicles, such as
residential MBS, as fundamentals within the U.S. housing market are solid and
U.S. consumer sentiment remains positive.
We believe this year's market fluctuations have served to remind investors of
the importance of active management. Since 1928, active management has been the
foundation of Amundi Pioneer's investment approach. We believe active management
is especially important during periods of volatility, and that our shareowners
can benefit from the experience and tenure of our investment teams, who work
collaboratively to make active and informed decisions across our funds.
As always, and particularly during times of market uncertainty, we encourage you
to work with your financial advisor to develop an overall investment plan that
addresses both your short- and long-term goals, and to implement such a plan in
a disciplined manner.
We greatly appreciate the trust you have placed in us and look forward to
continuing to serve you in the future.
/s/ Lisa M. Jones
Lisa M. Jones
Head of the Americas, President and CEO of U.S.
Amundi Pioneer Asset Management USA, Inc.
June 30, 2018
Any information in this shareowner report regarding market or economic trends or
the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 3
Portfolio Management Discussion | 6/30/18
In the following interview, Raymond Haddad discusses the market environment for
real estate investment trusts (REITs) and other real estate-related investments,
and the factors that influenced the performance of the Pioneer Real Estate
Shares during the six-month period ended June 30, 2018. Mr. Haddad, a vice
president and portfolio manager at Amundi Pioneer Asset Management, Inc.
("Amundi Pioneer"), is responsible for the day-to-day management of the Fund*.
Q How did the Fund perform during the six-month period ended June 30, 2018?
A Pioneer Real Estate Shares Class A shares returned -0.15% at net asset
value during the six-month period ended June 30, 2018, while the Fund's
benchmark, the Morgan Stanley Capital International (MSCI) U.S. REIT Index
(the MSCI Index)(1), returned 1.19%. During the same six-month period, the
average return of the 269 mutual funds in Morningstar's Real Estate Funds
Category was 0.54%.
Q How would you describe the market environment for REIT investors during the
six-month period ended June 30, 2018?
A The real estate sector's relatively flat performance over the period belies
the heightened volatility that characterized the six months. Initially, the
market started off on a positive note due to optimism about the prospect of
higher economic growth driven by the passage of a large tax reform bill in
the U.S. in December 2017. However, in February and early March, investor
sentiment soured in response to fears about more protectionist U.S. trade
policies, central-bank policy, and the improper use of data by a leading
* Amundi Pioneer assumed direct responsibility for the day-to-day management
of the Fund effective January 1, 2018. Prior to January 1, 2018, day-to-day
management of the Fund was the responsibility of AEW Capital Management,
L.P.
(1) The MSCI information may only be used for your internal use, may not be
reproduced or redisseminated in any form and may not be used as a basis for
or a component of any financial instruments or products or indices. None of
the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis
should not be taken as an indication or guarantee of any future performance
analysis, forecast or prediction. The MSCI information is provided on an
"as is" basis and the user of this information assumes the entire risk of
any use made of this information. MSCI, each of its affiliates and each
other person involved in or related to compiling, computing or creating any
MSCI information (collectively, the "MSCI Parties") expressly disclaims all
warranties (including, without limitation, any warranties of originality,
accuracy, completeness, timeliness, non-infringement, merchantability and
fitness for a particular purpose) with respect to this information. Without
limiting any of the foregoing, in no event shall any MSCI Party have any
liability for any direct, indirect, special, incidental, punitive,
consequential (including, without limitation, lost profits) or any other
damages.
4 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
social media company. REITs lagged other equities during the first quarter
of 2018 in anticipation of the Federal Reserve's (the Fed's) hike in
short-term interest rates in March, coupled with a rise in long-term rates,
factors which weighed on the sector.
During the second quarter, better-than-expected corporate earnings and jobs
data generated optimism about the prospects for the U.S. economy, which
helped to ease concerns about global economic growth. The real estate
sector rallied and recovered much of the ground it had lost against the
overall equity market in the first quarter -- led by higher-risk,
lower-quality investments that had underperformed in the first half of the
six-month period.
Given continued improvement in U.S. economic data, the Fed announced
another increase in short-term interest rates in June 2018, just prior to
period-end.
Q What was your investment approach in that environment during the six-month
period ended June 30, 2018?
A Our team began managing the Fund in January 2018. At that time, we began
repositioning the portfolio. Within our portfolio construction process, we
take a broader approach. We are mindful of sub-sector weightings and
individual holdings within the benchmark, but since we are active
managers, we are less concerned with matching or staying close to the MSCI
Index's profile. Over- or underweighting REIT sub-sectors is a byproduct
of our selection process, in which we employ a value-oriented strategy
aimed at identifying securities that we believe are underpriced relative
to their peers.
As part of our repositioning efforts, we have focused on three long-term
secular themes: German housing (apartments), e-Commerce (industrial), and
data centers (specialized REITs). In Germany, where there is a shortage of
housing, we invested in Deutsche Wohnen, which has been benefiting from a
loosening of rent-control policies aimed at stimulating increased housing
construction as well as increased supply -- partly to accommodate the
influx of immigrants to the country. In the U.S., the Fund's investments in
Prologis and Equinix exemplify our strategy with regard to the growth of
e-Commerce and the technology demand for "iCloud" data storage centers,
respectively. In addition, we favor the hotel (lodging) sector, which is
cyclical and has been benefiting from improving economic growth as well
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 5
as increased business and consumer demand. With their overnight leases,
hotels have the ability to raise the rates they charge on a daily basis,
thus allowing them to adjust quickly to increases in interest rates.
During the reporting period, we also increased the portfolio's
diversification* by including shares of real estate-related companies that
we believe would be less sensitive to rising interest rates. Unlike REITs,
which are required to distribute at least 90% of taxable income annually,
we believe the new real estate-related holdings offer an attractive
combination of long-term growth of capital and current income that may
help buffer the Fund's performance in a rising-rate market.
Q Which of your investment strategies or individual investments detracted
from the Fund's benchmark-relative performance during the six-month period
ended June 30, 2018?
A The Fund's underperformance relative to the MSCI Index during the six-month
period was due to an underweight position in strip malls. After selling off
sharply in the early months of the reporting period, lower-quality strip
malls returned to favor in the spring and helped lead the overall recovery
in real estate investments. In our view, strip malls are overbuilt, and
many are facing closure. We believe there are better investment
opportunities to be found outside that sub-sector.
Among individual REITs held in the portfolio, the top detractors from the
Fund's benchmark-relative performance included an underweight position in
the outperforming Public Storage, and overweight positions in the
underperforming Boston Properties (office) and Simon Property Group
(regional malls). The portfolio was significantly underweight to Public
Storage after the first quarter of 2018, given its continued
underperformance relative to its competitors with regard to top-line and
net operating income. That said, we do like the self-storage sub-sector,
which continued to rally in response to increased demand from an aging
population seeking to downsize from larger homes. As such, the Fund held
other self-storage companies that performed well during the six-month
period, including CubeSmart and Extra Space Storage.
Boston Properties struggled during the period as concerns about the
supply/demand picture in New York City became more challenging. In
addition, worries persisted about capital-expenditure needs within the
sub-sector as well as the office REIT cycle entering the latter stages of
its
* Diversification does not assure a profit nor protect against loss.
6 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
recovery. Simon Property Group is a high-quality operator of regional
malls, in our opinion, but the sub-sector generally lagged the market over
the period on concerns that sales at traditional "brick and mortar" retail
stores are being eclipsed by e-Commerce.
Q Which of your investment strategies or individual investments contributed
positively to Fund's benchmark-relative performance during the six-month
period ended June 30, 2018?
A Among individual holdings, the top contributors to the Fund's
benchmark-relative performance during the period included overweight
positions in the outperforming Chesapeake Lodging, Host Hotels, and Ryman
Hospitality Properties. Chesapeake and Host have been benefiting from
increased travel, a byproduct of better economic growth. Ryman has a
different business model compared with other lodging REITs. The company's
flagship properties are in Nashville, and it has continued to experience
strong group/corporate demand, while also benefiting from limited supply
growth from competitors.
Demand for industrial space was strong during the reporting period,
supported by improving economic growth and the continued expansion in
e-Commerce as well as the demand for warehouses. Within industrials, the
portfolio's investment in DCT Industrial rallied in response to an
announcement by Prologis - another Fund holding (referenced earlier) - that
it was acquiring DCT.
Q Did you invest in any derivative securities during the six-month period
ended June 30, 2018?
A No, the Fund held no derivative investments during the period.
Q What is your outlook for real estate-related investments as we enter the
second half of 2018, and how is the Fund positioned as of June 30, 2018?
A Despite the potential for increased stock market volatility and higher
interest rates, we remain cautiously optimistic about the absolute and
relative return potential for the real estate market. Generally solid
business fundamentals, relatively low interest rates, modest inflation, the
recent U.S. tax legislation, and the possibility of an acceleration in
corporate mergers-and-acquisitions activity remain supportive of the real
estate sector for the foreseeable future, in our view.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 7
Based upon property market fundamentals and relative valuations within the
real estate sector, at period-end, the Fund continued to hold its largest
overweights versus the MSCI Index in the industrials (warehouses), hotels,
and specialized (storage/data centers) sectors. The portfolio's largest
underweights remained in retail - especially strip malls, which we believe
are secularly challenged - and the office sector, due to supply/demand
issues in New York City and a general increase in capital-expenditure
needs.
Please refer to the Schedule of Investments on pages 17-21 for a full listing of
Fund securities.
All investments are subject to risk, including the possible loss of principal.
In the past several years, financial markets have experienced increased
volatility, depressed valuations, decreased liquidity and heightened
uncertainty. These conditions may continue, recur, worsen or spread.
The Fund invests in REIT securities, the value of which can fall for a variety
of reasons, such as declines in rental income, fluctuating interest rates, poor
property management, environmental liabilities, uninsured damage, increased
competition, or changes in real estate tax laws.
The Fund invests in a limited number of securities and, as a result, the Fund's
performance may be more volatile than the performance of other funds holding
more securities.
Investing in foreign and/or emerging markets securities involves risks relating
to interest rates, currency exchange rates, economic, and political conditions.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries or sectors.
These risks may increase share price volatility.
8 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
Before investing, consider the product's investment objectives, risks, charges
and expenses. Contact your advisor or Amundi Pioneer Asset Management, Inc., for
a prospectus or summary prospectus containing this information. Read it
carefully.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of opinion as of the date of this report. Past performance is no
guarantee of future results.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 9
Portfolio Summary | 6/30/18
Sector Distribution
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(As a percentage of total investments)*
[THE FOLLOWING DATA WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL]
Specialized REIT 21.4%
Industrial REIT 12.9%
Retail REIT 12.1%
Residential REIT 10.9%
Hotel & Resort REIT 9.3%
Health Care REIT 8.2%
Office REIT 5.7%
Diversified REIT 4.5%
Real Estate Operating Companies 3.3%
Hotels, Resorts & Cruise Lines 2.8%
Diversified Real Estate Activities 1.9%
Health Care Facilities 1.9%
Real Estate Services 1.4%
Construction & Engineering 1.2%
Automobile Manufacturers 0.8%
Home Furnishing 0.7%
Environmental & Facilities Services 0.6%
Real Estate Development 0.4%
10 Largest Holdings
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(As a percentage of total investments)*
1. Simon Property Group, Inc. 6.57%
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2. Prologis, Inc. 5.67
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3. Equinix, Inc. 4.37
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4. Host Hotels & Resorts, Inc. 4.29
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5. Extra Space Storage, Inc. 3.04
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6. CubeSmart 2.63
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7. AvalonBay Communities, Inc. 2.59
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8. Welltower, Inc. 2.46
--------------------------------------------------------------------------------
9. Equity LifeStyle Properties, Inc. 2.30
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10. Digital Realty Trust, Inc. 2.19
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* Excludes temporary cash investments and all derivative contracts except for
options purchased. The Fund is actively managed, and current holdings may
be different. The holdings listed should not be considered recommendations
to buy or sell any securities listed.
10 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
Prices and Distributions | 6/30/18
Net Asset Value per Share
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--------------------------------------------------------------------------------
Class 6/30/18 12/31/17
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A $24.26 $24.59
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C $23.75 $24.09
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Y $24.21 $24.55
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Distributions per Share: 1/1/18-6/30/18
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Short-Term Long-Term
Class Dividends Capital Gains Capital Gains
--------------------------------------------------------------------------------
A $0.2800 $-- $--
--------------------------------------------------------------------------------
C $0.2100 $-- $--
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Y $0.3500 $-- $--
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Index Definition
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The MSCI U.S. REIT Index is an unmanaged, widely used index comprising a broad
representation of the most actively traded real estate trusts, and is designed
to be a measure of real estate equity performance. Index returns are calculated
monthly, assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees, expenses or sales charges. It is not possible to invest
directly in an index.
The index defined here pertains to the "Value of $10,000 Investment" and "Value
of $5 Million Investment" charts on pages 12-14.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 11
Performance Update | 6/30/18 Class A Shares
Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Class A shares of Pioneer Real Estate Shares at public
offering price during the periods shown, compared to that of the Morgan Stanley
Capital International (MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of June 30, 2018)
--------------------------------------------------------------------------------
Net Public MSCI
Asset Offering U.S.
Value Price REIT
Period (NAV) (POP) Index
--------------------------------------------------------------------------------
10 years 7.19% 6.56% 7.95%
5 years 7.23 5.96 8.26
1 year 1.81 -4.04 3.57
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2018)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.48%
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[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real MSCI U.S. REIT
Estate Fund GD Index
6/08 $ 9,425 $10,000
6/09 $ 5,417 $ 5,626
6/10 $ 8,366 $ 8,734
6/11 $11,053 $11,711
6/12 $12,350 $13,256
6/13 $13,312 $14,453
6/14 $14,960 $16,386
6/15 $15,620 $17,031
6/16 $19,079 $21,135
6/17 $18,533 $20,750
6/18 $18,869 $21,491
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. NAV
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.
Effective January 1, 2018, Amundi Pioneer became directly responsible for the
day-to-day management of the Fund. The performance shown for periods prior to
January 1, 2018, reflects the investment strategies employed during those
periods.
Please refer to the financial highlights for a more current expense ratio.
12 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
Performance Update | 6/30/18 Class C Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Class C shares of Pioneer Real Estate Shares during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of June 30, 2018)
--------------------------------------------------------------------------------
MSCI
U.S.
If If REIT
Period Held Redeemed Index
--------------------------------------------------------------------------------
10 years 6.28% 6.28% 7.95%
5 years 6.36 6.36 8.26
1 year 1.10 1.10 3.57
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2018)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
2.23%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $10,000 Investment
Pioneer Real MSCI U.S. REIT
Estate Fund GD Index
6/08 $10,000 $10,000
6/09 $ 5,691 $ 5,626
6/10 $ 8,711 $ 8,734
6/11 $11,409 $11,711
6/12 $12,643 $13,256
6/13 $13,511 $14,453
6/14 $15,053 $16,386
6/15 $15,586 $17,031
6/16 $18,880 $21,135
6/17 $18,194 $20,750
6/18 $18,394 $21,491
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1.00%
contingent deferred sales charge (CDSC). If you paid a 1.00% 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.
Effective January 1, 2018, Amundi Pioneer became directly responsible for the
day-to-day management of the Fund. The performance shown for periods prior to
January 1, 2018, reflects the investment strategies employed during those
periods.
Please refer to the financial highlights for a more current expense ratio.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 13
Performance Update | 6/30/18 Class Y Shares
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $5 million
investment made in Class Y shares of Pioneer Real Estate Shares during the
periods shown, compared to that of the Morgan Stanley Capital International
(MSCI) U.S. REIT Index.
Average Annual Total Returns
(As of June 30, 2018)
--------------------------------------------------------------------------------
Net MSCI
Asset U.S.
Value REIT
Period (NAV) Index
--------------------------------------------------------------------------------
10 years 7.74% 7.95%
5 years 7.65 8.26
1 year 2.25 3.57
--------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated May 1, 2018)
--------------------------------------------------------------------------------
Gross
--------------------------------------------------------------------------------
1.12%
--------------------------------------------------------------------------------
[THE FOLLOWING DATA WAS REPRESENTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
Value of $5 Million Investment
Pioneer Real MSCI U.S. REIT
Estate Fund GD Index
6/08 $ 5,000,000 $ 5,000,000
6/09 $ 2,900,045 $ 2,813,128
6/10 $ 4,508,466 $ 4,366,861
6/11 $ 5,990,466 $ 5,855,411
6/12 $ 6,731,694 $ 6,627,904
6/13 $ 7,291,606 $ 7,226,309
6/14 $ 8,232,463 $ 8,193,113
6/15 $ 8,630,778 $ 8,515,265
6/16 $10,580,359 $10,567,338
6/17 $10,310,022 $10,374,911
6/18 $10,541,615 $10,745,265
Call 1-800-225-6292 or visit www.amundipioneer.com for the most recent month-end
performance results. Current performance may be lower or higher than the
performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
Effective January 1, 2018, Amundi Pioneer became directly responsible for the
day-to-day management of the Fund. The performance shown for periods prior to
January 1, 2018, reflects the investment strategies employed during those
periods.
Please refer to the financial highlights for a more current expense ratio.
14 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
Comparing Ongoing Fund Expenses
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
--------------------------------------------------------------------------------
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
(1) Divide your account value by $1,000
Example: an $8,600 account value (divided by) $1,000 = 8.6
(2) Multiply the result in (1) above by the corresponding share class's
number in the third row under the heading entitled "Expenses Paid
During Period" to estimate the expenses you paid on your account
during this period.
Expenses Paid on a $1,000 Investment in Pioneer Real Estate Shares
Based on actual returns from January 1, 2018, through June 30, 2018.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 1/1/18
--------------------------------------------------------------------------------
Ending Account $ 998.50 $ 995.00 $1,001.00
Value on 6/30/18
--------------------------------------------------------------------------------
Expenses Paid $ 8.52 $ 11.77 $ 6.05
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.72%,
2.38% and 1.22% for Class A, Class C, 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).
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 15
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Real Estate Shares
Based on a hypothetical 5% per year return before expenses, reflecting the
period from January 1, 2018, through June 30, 2018.
--------------------------------------------------------------------------------
Share Class A C Y
--------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00
Value on 1/1/18
--------------------------------------------------------------------------------
Ending Account $1,016.27 $1,012.99 $1,018.74
Value on 6/30/18
--------------------------------------------------------------------------------
Expenses Paid $ 8.60 $ 11.38 $ 6.11
During Period*
--------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized net expense ratio of 1.72%,
2.38% and 1.22% for Class A, Class C, 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).
16 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
Schedule of Investments | 6/30/18 (unaudited)
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
UNAFFILIATED ISSUERS -- 99.5%
COMMON STOCKS -- 98.9% of Net Assets
AUTOMOBILES & COMPONENTS -- 0.8%
Automobile Manufacturers -- 0.8%
8,150 Thor Industries, Inc. $ 793,728
-------------
Total Automobiles & Components $ 793,728
-------------------------------------------------------------------------------------------
CAPITAL GOODS -- 0.6%
Construction & Engineering -- 0.6%
13,511 Comfort Systems USA, Inc. $ 618,804
-------------
Total Capital Goods $ 618,804
-------------------------------------------------------------------------------------------
COMMERCIAL & PROFESSIONAL SERVICES -- 0.6%
Environmental & Facilities Services -- 0.6%
7,676 Waste Connections, Inc. $ 577,849
-------------
Total Commercial & Professional Services $ 577,849
-------------------------------------------------------------------------------------------
CONSUMER DURABLES & APPAREL -- 0.6%
Home Furnishings -- 0.6%
3,108(a) Mohawk Industries, Inc. $ 665,951
-------------
Total Consumer Durables & Apparel $ 665,951
-------------------------------------------------------------------------------------------
CONSUMER SERVICES -- 2.8%
Hotels, Resorts & Cruise Lines -- 2.8%
47,000 Extended Stay America, Inc. $ 1,015,670
58,981 Park Hotels & Resorts, Inc. 1,806,588
-------------
Total Consumer Services $ 2,822,258
-------------------------------------------------------------------------------------------
HEALTH CARE EQUIPMENT & SERVICES -- 1.9%
Health Care Facilities -- 1.9%
20,722 Encompass Health Corp. $ 1,403,294
27,159(a) Select Medical Holdings Corp. 492,936
-------------
Total Health Care Equipment & Services $ 1,896,230
-------------------------------------------------------------------------------------------
REAL ESTATE -- 91.6%
Diversified Real Estate Activities -- 1.9%
48,434 LendLease Group $ 709,581
173,000 New World Development Co., Ltd. 243,440
9,364 RMR Group, Inc., Class A 734,606
6,000 Sumitomo Realty & Development Co., Ltd. 221,276
-------------
$ 1,908,903
-------------------------------------------------------------------------------------------
Diversified REIT -- 4.4%
20,441 Alexander & Baldwin, Inc. $ 480,364
33,960 Gladstone Commercial Corp. 652,711
31,470 Global Net Lease, Inc. 642,932
138,547 LondonMetric Property Plc 338,075
6,785 PS Business Parks, Inc. 871,873
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 17
Schedule of Investments | 6/30/18 (unaudited) (continued)
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
Diversified REIT -- (continued)
24,723 STORE Capital Corp. $ 677,410
117,679 VEREIT, Inc. 875,532
-------------
$ 4,538,897
-------------------------------------------------------------------------------------------
Health Care REIT -- 8.2%
71,638 Omega Healthcare Investors, Inc. $ 2,220,778
32,133 Sabra Health Care Real Estate Investment Trust, Inc. 698,250
45,999 Senior Housing Properties Trust 832,122
37,609 Ventas, Inc. 2,141,833
39,989 Welltower, Inc. 2,506,910
-------------
$ 8,399,893
-------------------------------------------------------------------------------------------
Hotel & Resort REIT -- 9.3%
66,690 Braemar Hotels & Resorts, Inc. $ 761,600
39,931 Chesapeake Lodging Trust 1,263,417
28,407 Hersha Hospitality Trust, Class A 609,330
207,204 Host Hotels & Resorts, Inc. 4,365,788
36,776 RLJ Lodging Trust 810,911
20,158 Ryman Hospitality Properties, Inc. 1,676,138
-------------
$ 9,487,184
-------------------------------------------------------------------------------------------
Industrial REIT -- 12.9%
25,170 Americold Realty Trust $ 554,243
33,182 Duke Realty Corp. 963,274
15,165 EastGroup Properties, Inc. 1,449,167
43,237 First Industrial Realty Trust, Inc. 1,441,522
23,286 Granite Real Estate Investment Trust 949,611
87,881 Prologis, Inc. 5,772,903
38,062 Rexford Industrial Realty, Inc. 1,194,766
22,381 Terreno Realty Corp. 843,092
-------------
$ 13,168,578
-------------------------------------------------------------------------------------------
Office REIT -- 5.6%
14,151 Alexandria Real Estate Equities, Inc. $ 1,785,432
14,172 Columbia Property Trust, Inc. 321,846
14,452(a) Equity Commonwealth 455,238
26,943 JBG SMITH Properties 982,611
16,286 Kilroy Realty Corp. 1,231,873
41,350 Tier Real Estate Investment Trust, Inc. 983,303
-------------
$ 5,760,303
-------------------------------------------------------------------------------------------
Real Estate Development -- 0.4%
18,689(a) Forestar Group, Inc. $ 387,797
-------------------------------------------------------------------------------------------
Real Estate Operating Companies -- 3.4%
13,105 Deutsche Wohnen SE $ 633,044
31,547 Grand City Properties SA 818,633
165,000 Swire Properties, Ltd. 609,900
The accompanying notes are an integral part of these financial statements.
18 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
-------------------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------------------
Real Estate Operating Companies -- (continued)
6,932 Swiss Prime Site AG $ 637,397
16,520 Vonovia SE 785,671
-------------
$ 3,484,645
-------------------------------------------------------------------------------------------
Real Estate Services -- 1.3%
35,651(a) Marcus & Millichap, Inc. $ 1,390,745
-------------------------------------------------------------------------------------------
Residential REIT -- 10.8%
15,347 AvalonBay Communities, Inc. $ 2,637,996
11,361 Camden Property Trust 1,035,328
25,461 Equity LifeStyle Properties, Inc. 2,339,866
18,846 Equity Residential 1,200,301
33,693 NexPoint Residential Trust, Inc. 958,566
54,513 Preferred Apartment Communities, Inc., Class A 926,176
20,240 Sun Communities, Inc. 1,981,091
-------------
$ 11,079,324
-------------------------------------------------------------------------------------------
Retail REIT -- 12.1%
29,788 Agree Realty Corp. $ 1,571,913
38,963 British Land Co. Plc 345,458
6,010 Federal Realty Investment Trust 760,565
11,953 Getty Realty Corp. 336,716
68,613 Kimco Realty Corp. 1,165,735
39,322 Simon Property Group, Inc. 6,692,211
94,492 Spirit Realty Capital, Inc. 758,771
97,380 Washington Prime Group, Inc. 789,752
-------------
$ 12,421,121
-------------------------------------------------------------------------------------------
Specialized REIT -- 21.3%
4,946 Crown Castle International Corp. $ 533,278
83,014 CubeSmart 2,674,711
19,950 Digital Realty Trust, Inc. 2,226,021
10,362 Equinix, Inc. 4,454,520
30,978 Extra Space Storage, Inc. 3,091,914
38,002 Gaming & Leisure Properties, Inc. 1,360,472
26,867 GEO Group, Inc. 739,917
44,819 Gladstone Land Corp. 567,857
8,185 Life Storage, Inc. 796,482
28,016 National Storage Affiliates Trust 863,453
4,823 Public Storage 1,094,146
37,078 Rayonier, Inc. 1,434,548
3,402(a) SBA Communications Corp., Class A 561,738
38,423 Weyerhaeuser Co. 1,400,903
-------------
$ 21,799,960
-------------
Total Real Estate $ 93,827,350
-------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $75,747,192) $ 101,202,170
-------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 19
Schedule of Investments | 6/30/18 (unaudited) (continued)
-------------------------------------------------------------------------------------------
Principal
Amount
USD ($) Value
-------------------------------------------------------------------------------------------
EQUITY LINKED NOTE -- 0.6% of Net Assets
616,000 MasTec, Inc., 13.5%, 8/6/18 $ 660,100
-------------------------------------------------------------------------------------------
TOTAL EQUITY LINKED NOTE
(Cost $616,000) $ 660,100
-------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN UNAFFILIATED ISSUERS -- 99.5%
(Cost $76,363,192) $ 101,862,270
-------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.5% $ 562,893
-------------------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 102,425,163
===========================================================================================
REIT Real Estate Investment Trust.
(a) Non-income producing security.
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended June 30, 2018 aggregated $117,152,802 and $124,966,380,
respectively.
The Fund is permitted to engage in purchase and sale transactions ("cross
trades") with certain funds and accounts for which Amundi Pioneer Asset
Management, Inc., (the "Adviser"), serves as the Fund's investment adviser, as
set forth in Rule 17a-7 under the Investment Company Act of 1940, pursuant to
procedures adopted by the Board of Trustees. Under these procedures, cross
trades are effected at current market prices. During the six months ended June
30, 2018, the Fund did not engage in cross trade activity.
At June 30, 2018, the net unrealized appreciation on investments based on cost
for federal tax purposes of $77,968,912 was as follows:
Aggregate gross unrealized appreciation for all investments in which
there is an excess of value over tax cost $25,987,868
Aggregate gross unrealized depreciation for all investments in which
there is an excess of tax cost over value (2,094,510)
-----------
Net unrealized appreciation $23,893,358
===========
The accompanying notes are an integral part of these financial statements.
20 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
Various inputs are used in determining the value of the Fund's investments.
These inputs are summarized in the three broad levels below.
Level 1 - quoted prices in active markets for identical securities.
Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risks, etc.). See Notes to Financial Statements -- Note 1A.
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining fair value of investments). See Notes
to Financial Statements -- Note 1A.
The following is a summary of the inputs used as of June 30, 2018, in valuing
the Fund's investments.
-----------------------------------------------------------------------------------------------
Level 1 Level 2 Level 3 Total
-----------------------------------------------------------------------------------------------
Common Stocks $101,202,170 $ -- $-- $101,202,170
Equity Linked Note -- 660,100 -- 660,100
-----------------------------------------------------------------------------------------------
Total Investments in Securities $101,202,170 $660,100 $-- $101,862,270
===============================================================================================
During the six months ended June 30, 2018, there were no transfers between
Levels 1, 2 and 3.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 21
Statement of Assets and Liabilities | 6/30/18 (unaudited)
ASSETS:
Investments in unaffiliated issuers, at value (cost $76,363,192) $101,862,270
Cash 92,170
Receivables --
Investment securities sold 355,339
Fund shares sold 21,582
Dividends 466,524
Interest 5,544
Other assets 31,963
------------------------------------------------------------------------------------------
Total assets $102,835,392
==========================================================================================
LIABILITIES:
Payables --
Investment securities purchased $ 255,675
Fund shares repurchased 28,405
Trustees' fees 8
Professional fees 16,966
Transfer agent fees 65,080
Printing expense 18,064
Due to affiliates 10,387
Accrued expenses 15,644
------------------------------------------------------------------------------------------
Total liabilities $ 410,229
==========================================================================================
NET ASSETS:
Paid-in capital $ 47,002,272
Undistributed net investment income 44,888
Accumulated net realized gain on investments 29,878,752
Net unrealized appreciation on investments 25,499,251
------------------------------------------------------------------------------------------
Net assets $102,425,163
==========================================================================================
NET ASSET VALUE PER SHARE:
No par value (unlimited number of shares authorized)
Class A (based on $78,289,176/3,227,659 shares) $ 24.26
Class C (based on $8,991,814/378,569 shares) $ 23.75
Class Y (based on $15,144,173/625,484 shares) $ 24.21
MAXIMUM OFFERING PRICE:
Class A ($24.26 (divided by) 94.25%) $ 25.74
==========================================================================================
The accompanying notes are an integral part of these financial statements.
22 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
Statement of Operations (unaudited)
For the Six Months Ended 6/30/18
INVESTMENT INCOME:
Dividends from unaffiliated issuers (net of foreign taxes
withheld $15,283) $ 1,980,033
Interest from unaffiliated issuers 145,025
-------------------------------------------------------------------------------------------------------------
Total investment income $ 2,125,058
-------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees $ 403,696
Administrative expense 45,798
Transfer agent fees
Class A 116,415
Class C 7,308
Class Y 7,750
Distribution fees
Class A 95,877
Class C 45,910
Shareowner communications expense 30,262
Custodian fees 15,208
Registration fees 21,640
Professional fees 26,898
Printing expense 24,766
Trustees' fees 3,655
Miscellaneous 14,963
-------------------------------------------------------------------------------------------------------------
Total expenses $ 860,146
-------------------------------------------------------------------------------------------------------------
Net investment income $ 1,264,912
-------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments in unaffiliated issuers $ 26,644,869
Other assets and liabilities denominated in
foreign currencies (19,246) $ 26,625,623
-------------------------------------------------------------------------------------------------------------
Change in net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers $(28,597,155)
Other assets and liabilities denominated in
foreign currencies 173 $ (28,596,982)
-------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $ (1,971,359)
-------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (706,447)
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 23
Statements of Changes in Net Assets
-------------------------------------------------------------------------------------------------------------
Six Months
Ended
6/30/18 Year Ended
(unaudited) 12/31/17
-------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 1,264,912 $ 1,624,474
Net realized gain (loss) on investments 26,625,623 11,298,498
Change in net unrealized appreciation (depreciation)
on investments (28,596,982) (8,946,647)
-------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (706,447) $ 3,976,325
-------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.28 and $0.33 per share, respectively) $ (915,589) $ (1,152,930)
Class C ($0.21 and $0.14 per share, respectively) (82,025) (65,019)
Class Y ($0.35 and $0.42 per share, respectively) (222,410) (406,525)
Net realized gain:
Class A ($-- and $1.68 per share, respectively) -- (5,599,575)
Class C ($-- and $1.68 per share, respectively) -- (708,955)
Class Y ($-- and $1.68 per share, respectively) -- (1,474,133)
-------------------------------------------------------------------------------------------------------------
Total distributions to shareowners $ (1,220,024) $ (9,407,137)
-------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sales of shares $ 4,470,672 $ 13,555,412
Reinvestment of distributions 1,187,198 9,126,319
Cost of shares repurchased (14,632,051) (48,903,216)
-------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
Fund share transactions $ (8,974,181) $ (26,221,485)
-------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (10,900,652) $ (31,652,297)
NET ASSETS:
Beginning of period $ 113,325,815 $ 144,978,112
-------------------------------------------------------------------------------------------------------------
End of period $ 102,425,163 $ 113,325,815
-------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 44,888 $ --
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
24 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
-------------------------------------------------------------------------------------------------------------
Six Months Six Months
Ended Ended
6/30/18 6/30/18 Year Ended Year Ended
Shares Amount 12/31/17 12/31/17
(unaudited) (unaudited) Shares Amount
-------------------------------------------------------------------------------------------------------------
Class A
Shares sold 70,936 $ 1,640,952 209,371 $ 5,378,357
Reinvestment of distributions 38,085 886,022 265,118 6,589,821
Less shares repurchased (366,072) (8,540,101) (790,132) (20,364,548)
-------------------------------------------------------------------------------------------------------------
Net decrease (257,051) $ (6,013,127) (315,643) $ (8,396,370)
=============================================================================================================
Class C
Shares sold 28,183 $ 639,809 44,636 $ 1,124,785
Reinvestment of distributions 3,547 81,051 31,320 760,600
Less shares repurchased (82,738) (1,864,332) (172,649) (4,353,692)
-------------------------------------------------------------------------------------------------------------
Net decrease (51,008) $ (1,143,472) (96,693) $ (2,468,307)
=============================================================================================================
Class Y
Shares sold 93,912 $ 2,189,911 272,816 $ 7,052,270
Reinvestment of distributions 9,463 220,125 71,521 1,775,898
Less shares repurchased (182,344) (4,227,618) (946,504) (24,184,976)
-------------------------------------------------------------------------------------------------------------
Net decrease (78,969) $ (1,817,582) (602,167) $ (15,356,808)
=============================================================================================================
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 25
Financial Highlights
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/18 Ended Ended Ended Ended Ended
(unaudited) 12/31/17 12/31/16* 12/31/15* 12/31/14* 12/31/13
------------------------------------------------------------------------------------------------------------------------------------
Class A
Net asset value, beginning of period $ 24.59 $ 25.79 $ 26.83 $ 29.58 $ 24.56 $ 24.76
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.29(a) $ 0.33(a) $ 0.30(a) $ 0.31(a) $ 0.30 $ 0.23
Net realized and unrealized gain (loss) on investments (0.34) 0.48 1.26 0.85 6.86 0.06
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.05) $ 0.81 $ 1.56 $ 1.16 $ 7.16 $ 0.29
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.28) $ (0.33) $ (0.29) $ (0.31) $ (0.29) $ (0.22)
Net realized gain -- (1.68) (2.31) (3.60) (1.85) (0.27)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.28) $ (2.01) $ (2.60) $ (3.91) $ (2.14) $ (0.49)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.33) $ (1.20) $ (1.04) $ (2.75) $ 5.02 $ (0.20)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.26 $ 24.59 $ 25.79 $ 26.83 $ 29.58 $ 24.56
====================================================================================================================================
Total return (b) (0.15)%(c) 3.20% 6.10% 4.27% 29.63% 1.14%
Ratio of net expenses to average net assets 1.72%(d) 1.48% 1.41% 1.41% 1.47% 1.48%
Ratio of net investment income (loss) to average net assets 2.50%(d) 1.29% 1.09% 1.06% 1.09% 0.89%
Portfolio turnover rate 117%(c) 8% 15% 22% 22% 17%
Net assets, end of period (in thousands) $78,289 $85,681 $98,007 $100,842 $107,116 $80,091
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) 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.
(c) Not annualized.
(d) Annualized.
The accompanying notes are an integral part of these financial statements.
26 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/18 Ended Ended Ended Ended Ended
(unaudited) 12/31/17 12/31/16* 12/31/15* 12/31/14* 12/31/13
------------------------------------------------------------------------------------------------------------------------------------
Class C
Net asset value, beginning of period $ 24.09 $ 25.30 $ 26.38 $ 29.15 $ 24.24 $ 24.45
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.20(a) $ 0.13(a) $ 0.08(a) $ 0.06(a) $ 0.06 $ 0.00(b)
Net realized and unrealized gain (loss) on investments (0.33) 0.48 1.23 0.84 6.76 0.08
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ (0.13) $ 0.61 $ 1.31 $ 0.90 $ 6.82 $ 0.08
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.21) $ (0.14) $ (0.08) $ (0.07) $ (0.12) $ (0.02)
Net realized gain -- (1.68) (2.31) (3.60) (1.79) (0.27)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.21) $ (1.82) $ (2.39) $ (3.67) $ (1.91) $ (0.29)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.34) $ (1.21) $ (1.08) $ (2.77) $ 4.91 $ (0.21)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.75 $ 24.09 $ 25.30 $ 26.38 $ 29.15 $ 24.24
====================================================================================================================================
Total return (c) (0.50)%(d) 2.46% 5.22% 3.39% 28.50% 0.27%
Ratio of net expenses to average net assets 2.38%(e) 2.23% 2.22% 2.24% 2.35% 2.32%
Ratio of net investment income (loss) to average net assets 1.79%(e) 0.50% 0.29% 0.21% 0.20% 0.02%
Portfolio turnover rate 117%(d) 8% 15% 22% 22% 17%
Net assets, end of period (in thousands) $ 8,992 $10,347 $13,317 $12,540 $13,435 $10,609
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Amount rounds to less than $0.00 or $(0.00) per share.
(c) 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.
(d) Not annualized.
(e) Annualized.
The accompanying notes are an integral part of these financial statements.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 27
Financial Highlights (continued)
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Year Year Year Year
6/30/18 Ended Ended Ended Ended Ended
(unaudited) 12/31/17 12/31/16* 12/31/15* 12/31/14* 12/31/13
------------------------------------------------------------------------------------------------------------------------------------
Class Y
Net asset value, beginning of period $ 24.55 $ 25.76 $ 26.79 $ 29.54 $ 24.52 $ 24.74
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.34(a) $ 0.39(a) $ 0.37(a) $ 0.42(a) $ 0.43 $ 0.36
Net realized and unrealized gain (loss) on investments (0.33) 0.50 1.29 0.84 6.85 0.05
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from investment operations $ 0.01 $ 0.89 $ 1.66 $ 1.26 $ 7.28 $ 0.41
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareowners:
Net investment income $ (0.35) $ (0.42) $ (0.38) $ (0.41) $ (0.41) $ (0.36)
Net realized gain -- (1.68) (2.31) (3.60) (1.85) (0.27)
------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.35) $ (2.10) $ (2.69) $ (4.01) $ (2.26) $ (0.63)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net asset value $ (0.34) $ (1.21) $ (1.03) $ (2.75) $ 5.02 $ (0.22)
------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 24.21 $ 24.55 $ 25.76 $ 26.79 $ 29.54 $ 24.52
====================================================================================================================================
Total return (b) 0.10%(c) 3.54% 6.47% 4.65% 30.22% 1.61%
Ratio of net expenses to average net assets 1.22%(d) 1.12% 1.07% 1.02% 1.03% 1.01%
Ratio of net investment income (loss) to average net assets 2.97%(d) 1.50% 1.34% 1.43% 1.54% 1.41%
Portfolio turnover rate 117%(c) 8% 15% 22% 22% 17%
Net assets, end of period (in thousands) $15,144 $17,298 $33,655 $48,644 $50,520 $35,711
====================================================================================================================================
* The Fund was audited by an independent registered public accounting firm
other than Ernst & Young LLP.
(a) The per-share data presented above is based on the average shares
outstanding for the period presented.
(b) Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions and the complete redemption of
the investment at net asset value at the end of each period.
(c) Not annualized.
(d) Annualized.
The accompanying notes are an integral part of these financial statements.
28 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
Notes to Financial Statements | 6/30/18 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer Real Estate Shares (the "Fund") is a Delaware statutory trust. The Fund
is registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The investment objective of the Fund is
to seek long-term growth of capital. Current income is a secondary objective.
The Fund offers six classes of shares designated as Class A, Class C, Class K,
Class R, Class T and Class Y shares. Class K, Class R and Class T shares had not
commenced operations as of June 30, 2018. Each class of shares represents an
interest in the same portfolio of investments of the Fund and has identical
rights (based on relative net asset values) to assets and liquidation proceeds.
Share classes can bear different rates of class-specific fees and expenses, such
as transfer agent and distribution fees. Differences in class-specific fees and
expenses will result in differences in net investment income and, therefore, the
payment of different dividends from net investment income earned by each class.
The Amended and Restated Declaration of Trust of the Fund gives the Board of
Trustees the flexibility to specify either per-share voting or dollar-weighted
voting when submitting matters for shareowner approval. Under per-share voting,
each share of a class of the Fund is entitled to one vote. Under dollar-weighted
voting, a shareowner's voting power is determined not by the number of shares
owned, but by the dollar value of the shares on the record date. Each share
class has exclusive voting rights with respect to matters affecting only that
class, including with respect to the distribution plan for that class. There is
no distribution plan for Class Y shares.
On July 3, 2017, Amundi acquired Pioneer Investments, a group of asset
management companies located throughout the world. Amundi, one of the world's
largest asset managers, is headquartered in Paris, France. As a result of the
transaction, Pioneer Investment Management, Inc., the Fund's investment adviser,
became an indirect wholly owned subsidiary of Amundi and Amundi's wholly owned
subsidiary, Amundi USA, Inc. Prior to July 3, 2017, Pioneer Investments was
owned by Pioneer Global Asset Management S.p.A., a wholly owned subsidiary of
UniCredit S.p.A.
In connection with the transaction, the names of the Fund's investment adviser
and principal underwriter changed. Effective July 3, 2017, the name of Pioneer
Investment Management, Inc. changed to Amundi Pioneer Asset Management, Inc.
(the "Adviser") and the name of Pioneer Funds Distributor, Inc. changed to
Amundi Pioneer Distributor, Inc. (the "Distributor").
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 29
In October 2016, the Securities and Exchange Commission ("SEC") released its
Final Rule on Investment Company Reporting Modernization. In addition to
introducing two new regulatory reporting forms (Form N-PORT and Form N-CEN), the
Final Rule amends Regulation S-X, which impacts financial statement
presentation, particularly related to the presentation of derivative
investments. The Fund's financial statements were prepared in compliance with
the amendments to Regulation S-X.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles ("U.S. GAAP") that require the
management of the Fund to 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 gain or loss on investments during the reporting
period. Actual results could differ from those estimates.
The Fund is an investment company and follows investment company accounting and
reporting guidance under U.S. GAAP. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements:
A. Security Valuation
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.
Equity securities that have traded on an exchange are valued by using the
last sale price on the principal exchange where they are traded. Equity
securities that have not traded on the date of valuation, or securities for
which sale prices are not available, generally are valued using the mean
between the last bid and asked prices or, if both last bid and asked prices
are not available, at the last quoted bid price. Last sale and bid and
asked prices are provided by independent third party pricing services. In
the case of equity securities not traded on an exchange, prices are
typically determined by independent third party pricing services using a
variety of techniques and methods.
The value of foreign securities is translated into U.S. dollars based on
foreign currency exchange rate quotations supplied by a third party pricing
source. Trading in non-U.S. equity 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 may use a fair value model
developed by an independent pricing service to value non-U.S. equity
securities.
30 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
Fixed-income securities are valued by using prices supplied by independent
pricing services, which consider such factors as market prices, market
events, quotations from one or more brokers, Treasury spreads, yields,
maturities and ratings, or may use a pricing matrix or other fair value
methods or techniques to provide an estimated value of the security or
instrument. A pricing matrix is a means of valuing a debt security on the
basis of current market prices for other debt securities, historical
trading patterns in the market for fixed-income securities and/or other
factors. Non-U.S. debt securities that are listed on an exchange will be
valued at the bid price obtained from an independent third party pricing
service. When independent third party pricing services are unable to supply
prices, or when prices or market quotations are considered to be
unreliable, the value of that security may be determined using quotations
from one or more broker-dealers.
Securities for which independent pricing services or broker dealers are
unable to supply prices or for which market prices and/or quotations are
not readily available or are considered to be unreliable are valued by a
fair valuation team comprised of certain personnel of the Adviser pursuant
to procedures adopted by the Fund's Board of Trustees. The Adviser's fair
valuation team uses fair value methods approved by the Valuation Committee
of the Board of Trustees. The Adviser's fair valuation team is responsible
for monitoring developments that may impact fair valued securities and for
discussing and assessing fair values on an ongoing basis, and at least
quarterly, with the Valuation Committee of the Board of Trustees.
Inputs used when applying fair value methods to value a security may
include credit ratings, the financial condition of the company, current
market conditions and comparable securities. The Fund may use fair value
methods if it is determined that a significant event has occurred after the
close of the exchange or market on which the security trades and prior to
the determination of the Fund's net asset value. Examples of a significant
event might include political or economic news, corporate restructurings,
natural disasters, terrorist activity or trading halts. Thus, the valuation
of the Fund's securities may differ significantly from exchange prices and
such differences could be material.
At June 30, 2018, no securities were valued using fair value methods (other
than securities valued using prices supplied by independent pricing
services, broker-dealers or using a third party insurance industry pricing
model).
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 31
B. Investment Income and Transactions
Dividend income is recorded on the ex-dividend date, except that certain
dividends from foreign securities where the ex-dividend date may have
passed are recorded as soon as the Fund becomes aware of the ex-dividend
data in the exercise of reasonable diligence.
Interest income, including interest on income-bearing cash accounts, is
recorded on the accrual basis. Dividend and interest income are reported
net of unrecoverable foreign taxes withheld at the applicable country rates
and net of income accrued on defaulted securities.
Interest and dividend income payable by delivery of additional shares is
reclassified as PIK (payment-in-kind) income upon receipt and is included
in interest and dividend income, respectively.
Security transactions are recorded as of trade date. Gains and losses on
sales of investments are calculated on the identified cost method for both
financial reporting and federal income tax purposes.
C. Foreign Currency Translation
The books and records of the Fund are maintained in U.S. dollars. Amounts
denominated in foreign currencies are translated into U.S. dollars using
current exchange rates.
Net realized gains and losses on foreign currency transactions, if any,
represent, among other things, the net realized gains and losses on foreign
currency contracts, disposition of foreign currencies and the difference
between the amount of income accrued and the U.S. dollars actually
received. Further, the effects of changes in foreign currency exchange
rates on investments are not segregated on the Statement of Operations from
the effects of changes in the market prices of those securities, but are
included with the net realized and unrealized gain or loss on investments.
D. 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 net taxable income and net realized capital gains, if any, to
its shareowners. Therefore, no provision for federal income taxes is
required. At December 31, 2017, the Fund did not accrue any interest or
penalties with respect to uncertain tax positions, which, if applicable,
would be recorded as an income tax expense on the Statement of Operations.
Tax returns filed within the prior three years remain subject to
examination by federal and state tax authorities.
32 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
A portion of the dividend income recorded by the Fund is from distributions
by publicly traded Real Estate Investment Trusts ("REITs"), and such
distributions for tax purposes may also consist of capital gains and return
of capital. The actual return of capital and capital gains portions of such
distributions will be determined by formal notifications from the REITs
subsequent to the calendar year-end. Distributions received from the REITs
that are determined to be a return of capital are recorded by the Fund as a
reduction of the cost basis of the securities held and those determined to
be capital gain are reflected as such on the Statement of Operations.
The amount and character of income and capital gain distributions to
shareowners are determined in accordance with federal income tax rules,
which may differ from U.S. GAAP. Distributions in excess of net investment
income or net realized gains are temporary over distributions for financial
statement purposes resulting from differences in the recognition or
classification of income or distributions for financial statement and tax
purposes. Capital accounts within the financial statements are adjusted for
permanent book/tax differences to reflect tax character, but are not
adjusted for temporary differences.
The tax character of current year distributions payable will be determined
at the end of the current taxable year. The tax character of distributions
paid during the year ended December 31, 2017 was as follows:
---------------------------------------------------------------------------
2017
---------------------------------------------------------------------------
Distributions paid from:
Ordinary income $1,758,525
Long-term capital gain 7,648,612
---------------------------------------------------------------------------
Total $9,407,137
===========================================================================
The following shows the components of distributable earnings on a federal
income tax basis at December 31, 2017:
---------------------------------------------------------------------------
2017
---------------------------------------------------------------------------
Distributable earnings:
Undistributed long-term capital gain $ 4,858,849
Net unrealized appreciation 52,490,513
---------------------------------------------------------------------------
Total $57,349,362
===========================================================================
The difference between book-basis and tax-basis net unrealized appreciation
is attributable to the tax deferral of losses on wash sales.
E. Fund Shares
The Fund records sales and repurchases of its shares as of trade date. The
Distributor earned $3,252 in underwriting commissions on the sale of Class
A shares during the six months ended June 30, 2018.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 33
F. Class Allocations
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on its respective percentage of adjusted net assets at the beginning
of the day.
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class C shares of the Fund, respectively (see
Note 4). Class Y shares do not pay distribution fees. All expenses and fees
paid to the Fund's transfer agent for its services are allocated among the
classes of shares based on the number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3).
Distributions to shareowners are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner and at the same time, except that net
investment income dividends to Class A, Class C and Class Y shares can
reflect different transfer agent and distribution expense rates.
G. Risks
The value of securities held by the Fund may go up or down, sometimes
rapidly or unpredictably, due to general market conditions, such as real or
perceived adverse economic, political or regulatory conditions, inflation,
changes in interest rates, lack of liquidity in the bond markets or adverse
Investor sentiment. In the past several years, financial markets have
experienced increased volatility, depressed valuations, decreased liquidity
and heightened uncertainty. These conditions may continue, recur, worsen or
spread.
At times, the Fund's investments may represent industries or industry
sectors that are interrelated or have common risks, making the Fund more
susceptible to any economic, political, or regulatory developments or other
risks affecting those industries and sectors. The Fund's investments in
foreign markets and countries with limited developing markets may subject
the Fund to a greater degree of risk than investments in a developed
market. These risks include disruptive political or economic conditions and
the imposition of adverse governmental laws or currency exchange
restrictions. The Fund's prospectus contains unaudited information
regarding the Fund's principal risks. Please refer to that document when
considering the Fund's principal risks.
Interest rates in the U.S. recently have been historically low, so the Fund
faces a heightened risk that interest rates may continue to rise. A general
rise in interest rates could adversely affect the price and liquidity of
fixed-income securities and could also result in increased redemptions from
the Fund.
34 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
Because the Fund may invest a substantial portion of its assets in REITs,
the Fund may be subject to certain risks associated with direct investments
in REITs. REITs may be affected by changes in the value of their underlying
properties and by defaults of their borrowers or tenants. REITs depend
generally on their ability to generate cash flow to make distributions to
shareowners, and certain REITs have self-liquidation provisions by which
mortgages held may be paid in full and distributions of capital returns may
be made at any time. In addition, the performance of a REIT may be affected
by its failure to qualify for tax-free pass through of income under the
Internal Revenue Code or its failure to maintain exemption from
registration under the Investment Company Act of 1940. The Fund's
prospectus contains unaudited information regarding the Fund's principal
risks. Please refer to that document when considering the Fund's principal
risks.
With the increased use of technologies such as the Internet to conduct
business, the Fund is susceptible to operational, information security and
related risks. While the Fund's Adviser has established business continuity
plans in the event of, and risk management systems to prevent, limit or
mitigate, such cyber-attacks, there are inherent limitations in such plans
and systems including the possibility that certain risks have not been
identified. Furthermore, the Fund cannot control the cybersecurity plans
and systems put in place by service providers to the Fund such as Brown
Brothers Harriman & Co., the Fund's custodian and accounting agent, and DST
Asset Manager Solutions, Inc., the Fund's transfer agent. In addition, many
beneficial owners of Fund shares hold them through accounts at
broker-dealers, retirement platforms and other financial market
participants over which neither the Fund nor Amundi Pioneer exercises
control. Each of these may in turn rely on service providers to them, which
are also subject to the risk of cyber-attacks. Cybersecurity failures or
breaches at Amundi Pioneer or the Fund's service providers or
intermediaries have the ability to cause disruptions and impact business
operations potentially resulting in financial losses, interference with the
Fund's ability to calculate its net asset value, impediments to trading,
the inability of Fund shareowners to effect share purchases or receive
distributions, loss of or unauthorized access to private shareowners
information and violations of applicable privacy and other laws, regulatory
fines, penalties, reputational damage, or additional compliance costs. Such
costs and losses may not be covered under any insurance. In addition,
maintaining vigilance against cyber-attacks may involve substantial costs
over time, and system enhancements may themselves be subject to
cyber-attacks.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 35
2. Management Agreement
The Adviser manages the Fund's portfolio. Management fees are calculated daily
at the annual rate of 0.80% of the Fund's average daily net assets up to $1
billion and 0.75% on assets over $1 billion. For the six months ended June 30,
2018, the effective management fee (excluding waivers and/or assumption of
expenses) was equivalent to 0.80% (annualized) of the Fund's average daily net
assets.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund as administrative reimbursements. Included in
"Due to affiliates" reflected on the Statement of Assets and Liabilities is
$7,270 in management fees, administrative costs and certain other reimbursements
payable to the Adviser at June 30, 2018.
3. Transfer Agent
DST Asset Manager Solutions, Inc. serves as the transfer agent to the Fund at
negotiated rates. Transfer agent fees and payables shown on the Statement of
Operations and the Statement of Assets and Liabilities, respectively, include
sub-transfer agent expenses incurred through the Fund's omnibus relationship
contracts.
In addition, the Fund reimbursed the transfer agent for out-of-pocket expenses
incurred by the transfer agent related to shareowner communications activities
such as proxy and statement mailings, and outgoing phone calls. For the six
months ended June 30, 2018, such out-of-pocket expenses by class of shares were
as follows:
--------------------------------------------------------------------------------
Shareowner Communications
--------------------------------------------------------------------------------
Class A $23,930
Class C 5,456
Class Y 876
--------------------------------------------------------------------------------
Total $30,262
================================================================================
4. Distribution Plan
The Fund has adopted a distribution plan (the "Plan") pursuant to Rule 12b-1 of
the Investment Company Act of 1940 with respect to its Class A and Class C
shares. Pursuant to the Plan, the Fund pays the Distributor 0.25% of the average
daily net assets attributable to Class A shares as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class A shares. Pursuant to the Plan, the Fund also pays the
Distributor 1.00% of the average daily net assets attributable to Class C
shares. The fee for Class C shares consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or
36 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
distribution services with regard to Class C shares. Included in "Due to
affiliates" reflected on the Statement of Assets and Liabilities is $3,117 in
distribution fees payable to the Distributor at June 30, 2018.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge ("CDSC"). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 12 months of purchase. Redemptions of Class C shares within 12 months of
purchase are subject to a CDSC of 1.00%, based on the lower of cost or market
value of shares being redeemed. Shares purchased as part of an exchange remain
subject to any CDSC that applied to the original purchase of those shares. There
is no CDSC for Class Y shares. Proceeds from the CDSCs are paid to the
Distributor. For the six months ended June 30, 2018, CDSCs in the amount of $512
were paid to the Distributor.
5. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
"Funds"), participates in a committed, unsecured revolving line of credit
facility. Borrowings are used solely for temporary or emergency purposes. The
Fund may borrow up to the lesser of the amount available under the facility or
the limits set for borrowing by the Fund's prospectus and the 1940 Act. The Fund
participated in a facility that is in the amount of $25 million. Under such
facility, depending on the type of loan, interest on borrowings is payable at
the London Interbank Offered Rate ("LIBOR") plus 0.85% on an annualized basis,
or the Alternate Base Rate, which is the greater of (a) the facility's
administrative agent's daily announced prime rate on the borrowing date, (b) 2%
plus the Federal Funds Rate on the borrowing date or (c) 2% plus the overnight
Eurodollar rate on the borrowing date. The Funds pay an annual commitment fee to
participate in a credit facility. The commitment fee is allocated among
participating Funds based on an allocation schedule set forth in the credit
agreement. For the six months ended June 30, 2018, the Fund had no borrowings
under the credit facility.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 37
ADDITIONAL INFORMATION
Change in Independent Registered Public Accounting Firm
Prior to July 3, 2017 Pioneer Investment Management, Inc. (the "Adviser"), the
Fund's investment adviser, was an indirect, wholly owned subsidiary of UniCredit
S.p.A. ("UniCredit"). On that date, UniCredit completed the sale of its Pioneer
Investments business, which includes the Adviser, to Amundi (the "Transaction").
As a result of the Transaction, the Adviser became an indirect, wholly owned
subsidiary of Amundi. Amundi is controlled by Credit Agricole S.A. Amundi is
headquartered in Paris, France, and, as of September 30, 2016, had more than
$1.1 trillion in assets under management worldwide. Deloitte & Touche LLP
("D&T"), the Fund's previous independent registered public accounting firm,
informed the Audit Committee and the Board that it would no longer be
independent with respect to the Fund upon the completion of the Transaction as a
result of certain services being provided to Amundi and Credit Agricole, and,
accordingly, that it intended to resign as the Fund's independent registered
public accounting firm upon the completion of the Transaction. D&T's resignation
was effective on July 3, 2017, when the Transaction was completed.
During the periods as to which D&T has served as the Fund's independent
registered public accounting firm, including the Fund's two most recent fiscal
years, D&T's reports on the Fund's financial statements have not contained an
adverse opinion or disclaimer of opinion and have not been qualified or modified
as to uncertainty, audit scope or accounting principles. Further, there have
been no disagreements with D&T on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or procedure,
which, if not resolved to the satisfaction of D&T, would have caused D&T to make
reference to the subject matter of the disagreement in connection with its
report on the financial statements. In addition, there have been no reportable
events of the kind described in Item 304(a)(1)(v) of Regulation S-K under the
Securities Exchange Act of 1934.
Effective immediately following the completion of the Transaction on July 3,
2017, the Board, acting upon the recommendation of the Audit Committee, engaged
a new independent registered public accounting firm, Ernst & Young LLP ("EY"),
for the Fund's fiscal year ended December 31, 2017.
Prior to its engagement, EY had advised the Fund's Audit Committee that EY had
identified the following matters, in each case relating to services rendered by
other member firms of Ernst & Young Global Limited, all of which are located
outside the United States, to UniCredit and certain of its subsidiaries during
the period commencing July 1, 2016, that it determined to be
38 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
inconsistent with the auditor independence rules set forth by the Securities and
Exchange Commission ("SEC"): (a) project management support services to
UniCredit in the Czech Republic, Germany, Italy, Serbia and Slovenia in relation
to twenty-two projects, that were determined to be inconsistent with Rule
2-01(c)(4)(vi) of Regulation S-X (management functions); (b) two engagements for
UniCredit in Italy where fees were contingent/success based and that were
determined to be inconsistent with Rule 2-01(c)(5) of Regulation S-X (contingent
fees); (c) four engagements where legal and expert services were provided to
UniCredit in the Czech Republic and Germany, and twenty engagements where the
legal advisory services were provided to UniCredit in Austria, Czech Republic,
Italy and Poland, that were determined to be inconsistent with Rule
2-01(c)(4)(ix) and (x) of Regulation S-X (legal and expert services); and (d)
two engagements for UniCredit in Italy involving assistance in the sale of
certain assets, that were determined to be inconsistent with Rule
2-01(c)(4)(viii) of Regulation S-X (broker-dealer, investment adviser or
investment banking services). None of the foregoing services involved the Fund,
any of the other funds in the Pioneer Family of Funds or any other Pioneer
entity sold by UniCredit in the Transaction.
EY advised the Audit Committee that it had considered the matters described
above and had concluded that such matters would not impair EY's ability to
exercise objective and impartial judgment in connection with the audits of the
financial statements of the Fund under the SEC and Public Company Accounting
Oversight Board independence rules, and that a reasonable investor with
knowledge of all relevant facts and circumstances would reach the same
conclusion. Management and the Audit Committee considered these matters and
discussed the matters with EY and, based upon EY's description of the matters
and statements made by EY, Management and the Audit Committee believe that EY
will be capable of exercising objective and impartial judgment in connection
with the audits of the financial statements of the Fund, and Management further
believes that a reasonable investor with knowledge of all relevant facts and
circumstances would reach the same conclusion.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 39
Trustees, Officers and Service Providers
Trustees Officers
Thomas J. Perna, Chairman Lisa M. Jones, President and
David R. Bock Chief Executive Officer
Benjamin M. Friedman Mark E. Bradley, Treasurer and
Margaret B.W. Graham Chief Financial Officer
Lisa M. Jones Christopher J. Kelley, Secretary and
Lorraine H. Monchak Chief Legal Officer
Marguerite A. Piret
Fred J. Ricciardi
Kenneth J. Taubes
Investment Adviser and Administrator
Amundi Pioneer Asset Management, Inc.
Custodian and Sub-Administrator
Brown Brothers Harriman & Co.
Principal Underwriter
Amundi Pioneer Distributor, Inc.
Legal Counsel
Morgan, Lewis & Bockius LLP
Shareowner Services and Transfer Agent
DST Asset Manager Solutions, Inc.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.amundipioneer.com. This information is also available on the Securities
and Exchange Commission's web site at www.sec.gov.
40 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
This page is for your notes.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 41
This page is for your notes.
42 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
This page is for your notes.
Pioneer Real Estate Shares | Semiannual Report | 6/30/18 43
This page is for your notes.
44 Pioneer Real Estate Shares | Semiannual Report | 6/30/18
How to Contact Amundi Pioneer
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
--------------------------------------------------------------------------------
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Write to us:
--------------------------------------------------------------------------------
Amundi Pioneer
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address us.askamundipioneer@amundipioneer.com
(for general questions about Amundi Pioneer only)
Visit our web site: www.amundipioneer.com
This report must be preceded or accompanied by a prospectus.
The Fund files a complete schedule of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
[LOGO] Amundi Pioneer
==============
ASSET MANAGEMENT
Amundi Pioneer Asset Management, Inc.
60 State Street
Boston, MA 02109
www.amundipioneer.com
Securities offered through Amundi Pioneer Distributor, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer Mutual Funds, Member SIPC
(C) 2018 Amundi Pioneer Asset Management 19407-13-0818
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 12(a)(1), a copy of
its code of ethics that applies to the registrant's principal
executive officer,principal financial officer, principal accounting
officer or controller, or persons performing similar functions,
as an exhibit to its annual
report on this Form N-CSR (see attachment);
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
N/A
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
N/A
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
N/A
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
N/A
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Amudi Pioneer Asset Management, Inc, the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
----------------------- --------------------------- -----------------------------------------------
------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- -------------------------
------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
----------------------- --------------------------- -----------------------------------------------
--------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
----------------------- ------------------------- -----------------------------------------------
------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
------------------------------------------- ------------------------------
--------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
--------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered
into on or after May 6, 2003, the effective date of the
new SEC pre-approval rules, the Fund's audit
committee is required to pre-approve services to
affiliates defined by SEC rules to the extent that the
services are determined to have a direct impact on the
operations or financial reporting of the Fund. For the
years ended November 30, 2013 and 2012, there were
no services provided to an affiliate that required the
Fund's audit committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountants engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrants accountant
for services rendered to the registrant, and rendered to the registrants
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and
affiliates, as previously defined, totaled approximately
$8,131 in 2013 and $8,290 in 2012.
(h) Disclose whether the registrants audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrants investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees
has considered whether the provision of non-audit
services that were rendered to the Affiliates (as
defined) that were not pre- approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is
compatible with maintaining the principal accountant's
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule of Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.1212
of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrant's portfolio ("Portfolio Manager"). Also state each Portfolio
Manager's business experience during the past 5 years.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrant's equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781).
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrant's board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 407(c)(2)(iv) of
Regulation S-R(17 CFR 229.407)(as required by Item 22(b)(15))
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrant's board of
directors since the registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-R of Schedule 14(A)
in its definitive proxy statement, or this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive and
principal financials officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR
270.30a-3(c))) as of a date within 90 days of the filing date of the report
that includes the disclosure required by this paragraph,
based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the Act (17 CFR 270.30(a)-3(b) and Rules 13a-15(b) or 15d-15(b)
under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on the evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that
occured during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
Item 12. Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies.
(a) If the registrant is a closed-end management investment company,
provide the following dollar amounts of income and compensation related
to the securities lending activities of the registrant during its most
recent fiscal year:
N/A
(1) Gross income from securities lending activities;
N/A
(2) All fees and/or compensation for each of the following securities
lending activities and related services: any share of revenue generated
by the securities lending program paid to the securities lending agent(s)
(revenue split); fees paid for cash collateral management services
(including fees deducted from a pooled cash collateral reinvestment
vehicle) that are not included in the revenue split; administrative
fees that are not included in the revenue split; fees for
indemnification that are not included in the revenue split; rebates
paid to borrowers; and any other fees relating to the securities lending
program that are not included in the revenue split, including a description
of those other fees;
N/A
(3) The aggregate fees/compensation disclosed pursuant to paragraph (2); and
N/A
(4) Net income from securities lending activities (i.e., the dollar amount in
paragraph (1) minus the dollar amount in paragraph (3)).
If a fee for a service is included in the revenue split, state that the fee
is included in the revenue split.
N/A
(b) If the registrant is a closed-end management investment company, describe
the services provided to the registrant by the securities lending agent in
the registrants most recent fiscal year.
N/A
ITEM 13. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(2) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the Act
(17 CFR 270.30a-2(a)) , exactly as set forth below:
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Real Estate Shares Fund
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date August 29, 2018
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lisa M. Jones
Lisa M. Jones, President & Chief Executive Officer
Date August 29, 2018
By (Signature and Title)* /s/ Mark E. Bradley
Mark E. Bradley, Treasurer & Chief Accounting & Financial Officer
Date August 29, 2018
* Print the name and title of each signing officer under his or her signature.