[Pioneer Logo]
Pioneer
Micro-Cap
Fund
SEMIANNUAL REPORT 5/31/00
<PAGE>
Table of Contents
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<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 5
Schedule of Investments 8
Financial Statements 14
Notes to Financial Statements 19
Trustees, Officers and Service Providers 24
The Pioneer Family of Mutual Funds 25
Programs and Services for Pioneer Shareowners 26
Retirement Plans From Pioneer 28
</TABLE>
<PAGE>
Pioneer Micro-Cap Fund
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LETTER FROM THE CHAIRMAN 5/31/00
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Dear Shareowner,
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As you may know, on May 15, 2000, The Pioneer Group, Inc. and UniCredito
Italiano S.p.A. announced an agreement under which UniCredito is expected to
purchase all of the outstanding stock of Pioneer Group. UniCredito is Italy's
largest banking group based on market capitalization. We are pleased to be
joining with UniCredito not only because of its reputation and breadth, but
also because of the similar business strategies shared by the two companies.
UniCredito employs many of the same investment philosophies that Pioneer has
believed in for over 70 years. In the meantime, your mutual fund will be
managed by the same portfolio management team, which is overseen by a Board of
Trustees. In addition, the union with UniCredito will give Pioneer Investment
Management, your fund's investment adviser, access to greater resources,
enabling us to strengthen and support our money management efforts for all
Pioneer shareowners.
We expect that the transition resulting from the acquisition will not have a
direct impact on fund shareowners. At Pioneer we always strive to provide our
shareowners with exemplary customer service and a diverse product line. Going
forward, we will continue to work as hard as we can to ensure that our
investors' needs are met and that you are satisfied in any dealings you have
with Pioneer.
Soon you will receive a letter and a proxy statement that will contain more
information about the transaction along with information about a special
shareholder meeting. We are excited about the acquisition (which is subject to
regulatory approval) and hope you are as well. I feel confident about prospects
for the days ahead and I truly believe that Pioneer Group has entered into a
relationship that will be beneficial to you.
Please read this report closely, particularly the Portfolio Management
Discussion with Ken Fuller. The Q&A in this section gives you the opportunity
to read about your Fund and its performance over the period covered in the
report. If you have questions, please contact your investment professional or
call Pioneer at 1-800-225-6292. You can also visit our web site at
www.pioneerfunds.com for more information.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer Micro-Cap Fund
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PORTFOLIO SUMMARY 5/31/00
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[Start Pie Chart]
U.S. Common Stocks 92%
Short-Term Cash
Equivalents 7%
International Common
Stocks 1%
[End Pie Chart]
Sector Distribution
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(As a percentage of equity holdings)
[Start Pie Chart]
Technology 34%
Consumer Cyclicals 19%
Financial 11%
Consumer Staples 9%
Energy 8%
Capital Goods 7%
Healthcare 5%
Utilities 3%
Basic Materials 3%
Other 1%
[End Pie Chart]
10 Largest Holdings
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(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
1. American Xtal Technology, Inc. 3.18% 6. Power-One, Inc. 2.14%
2. Oak Technology, Inc. 3.06 7. Sipex Corp. 2.01
3. Hain Celestial Group, Inc. 3.05 8. Avant! Corp. 1.99
4. Brooks Automation, Inc. 2.89 9. Align-Rite International, Inc. 1.96
5. Basin Exploration, Inc. 2.41 10. WD-40 Co. 1.86
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Micro-Cap Fund
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PERFORMANCE UPDATE 5/31/00 CLASS A SHARES
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Share Prices and Distributions
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<TABLE>
<CAPTION>
Net Asset Value
per Share 5/31/00 11/30/99
<S> <C> <C> <C>
$20.47 $17.40
Distributions per Share Income Short-Term Long-Term
(11/30/99 - 5/31/00) Dividends Capital Gains Capital Gains
- - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment in
Pioneer Micro-Cap Fund at public offering price, compared to the growth of the
Merrill Lynch Micro-Cap Index.
<TABLE>
Average Annual Total Returns
(As of May 31, 2000)
Public
Net Asset Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 12.21% 10.18%
(2/28/97)
1 Year 27.38 20.06
</TABLE>
* Reflects the deduction of the maximum 5.75% sales charge at the beginning
of the period and assumes reinvest-ment of distributions at net asset
value.
[Begin Mountain Chart]
<TABLE>
<CAPTION>
Growth of $10,000
Pioneer Merrill Lynch
Micro-Cap Micro-Cap
Fund* Index
<S> <C> <C>
2/97 9425 10000
5/97 9874 9981
11099 11620
11/97 11206 12053
11540 12616
5/98 11051 12810
7640 9282
11/98 9282 10770
9603 11014
5/99 10769 12127
11245 12557
11/99 11661 13622
15856 19279
5/00 13718 14711
</TABLE>
[End Mountain Chart]
The Merrill Lynch Micro-Cap Index measures the performance of 1,980 stocks
ranging in market capitalization from $50 million to $125 million. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Fund returns, do not reflect any sales charges, fees or expenses. You cannot
invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
3
<PAGE>
Pioneer Micro-Cap Fund
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PERFORMANCE UPDATE 5/31/00 CLASS B SHARES
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Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 5/31/00 11/30/99
<S> <C> <C> <C>
$ 20.01 $ 17.07
Distributions per Share Income Short-Term Long-Term
(11/30/99 - 5/31/00) Dividends Capital Gains Capital Gains
- - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment in
Pioneer Micro-Cap Fund compared to the growth of the Merrill Lynch Micro-Cap
Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of May 31, 2000)
If If
Period Held Redeemed*
Life-of-Fund 11.44% 10.72%
<S> <C> <C>
(2/28/97)
1 Year 26.40 22.40
</TABLE>
* Reflects deduction of the maximum applicable contingent deferred sales
charge (CDSC) at the end of the period and assumes reinvestment of
distributions. The maximum CDSC of 4% declines over six years.
[Begin Mountain Chart]
<TABLE>
<CAPTION>
Growth of $10,000
Pioneer Merrill Lynch
Micro-Cap Micro-Cap
Fund* Index
<S> <C> <C>
2/97 10000 10000
5/97 10473 9981
11753 11620
11/97 11847 12053
12173 12616
5/98 11633 13810
8025 9282
11/98 9740 10770
10067 11014
5/99 11263 12127
11732 12557
11/99 12145 13662
16478 19279
5/00 13937 14711
</TABLE>
[End Mountain Chart]
The Merrill Lynch Micro-Cap Index measures the performance of 1,980 stocks
ranging in market capitalization from $50 million to $125 million. Index
returns are calculated monthly, assume reinvestment of dividends and, unlike
Fund returns, do not reflect any sales charges, fees or expenses. You cannot
invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
4
<PAGE>
Pioneer Micro-Cap Fund
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PORTFOLIO MANAGEMENT DISCUSSION 5/31/00
--------------------------------------------------------------------------------
Ken Fuller, the leader of Pioneer Micro-Cap Fund's management team, has been an
investment professional for 25 years, 15 of them devoted to small-company
stocks. In the following pages, he discusses the Fund's strategies and results
for the first half of the current fiscal year.
Q: Micro-cap stocks generally rose over the last six months. Did the Fund's
returns reflect this trend?
A: We are very pleased with the Fund's 17.64% return (Class A shares at net
asset value) for the six months ended May 31, 2000. Class B shares
returned 17.22%, also at net asset value. In comparison, the Fund's
benchmark index, the Merrill Lynch Micro-Cap Index, gained 7.66% and the
average return for the 348 small company value funds tracked by Lipper,
Inc. was 7.95% for the period. (Lipper is an independent firm that tracks
mutual fund performance.)
Q: What's behind these results?
A: It was a difficult, narrow market, with technology, biotech and
communications stocks providing the vast majority of the positive returns
during two distinct phases of the six-month period: a strong period until
March and a much more volatile period thereafter. Indeed, the overwhelming
success of our technology holdings more than made up for this narrowness,
especially during the stronger period. Beginning in March, the market
broadened modestly and continues to do so, reflecting investor interest in
a wider group of stocks.
Q: What were your principal strategies over the last six months?
A: We made a point to lock in the gains of our best performers, an objective
which tended to decrease our technology weighting. Another important
strategic element has been to more quickly prune our underperformers in
all sectors, cutting our losses early by selling stocks that were having
difficulty, unless we are very confident that a correction is underway. We
are constantly evaluating all the Fund's holdings. Included in the
evaluation is an estimation of a stock's potential, regarding both its
valuation and earnings. If we
5
<PAGE>
Pioneer Micro-Cap Fund
PORTFOLIO MANAGEMENT DISCUSSION 5/31/00 (continued)
believe it can continue to achieve above average levels of performance it
will remain in the portfolio.
Q: Please tell us about some of the stocks that contributed to results, and
why.
A: In technology, our best performing sector, Power-One, a manufacturer of
standby power sources for computers, performed admirably, as did PRI
Automation, a manufacturer of capital equipment for semiconductors. The
energy sector was also strong. St. Mary Land & Exploration, a natural gas
exploration firm, is one example that boasted excellent returns.
We also had a number of strong contributors that were simply individual
stock picks. The new "healthy living trend" in the food sector is an
example. Celestial Seasonings, the market share leader in the specialty
tea market, benefited from double digit growth rates in organic, wellness
and green teas. Earnings skyrocketed as a result of the growing trend
toward healthier eating. The company, one of our largest positions, was
purchased during the period by The Hain Food Group for a nice premium. As
a result, we now own shares of Hain Celestial Group, the leader in the
organic food category, which continues to benefit from high growth rates
and synergies from the Celestial Seasonings merger.
We believe the health-based food industry is very attractive for a number of
reasons: it's growing rapidly; the industry's price to earnings ratios are
quite reasonable; and it's less economically sensitive. Even in a
recession, the area should perform well since consumers who buy these
products tend to focus on quality over price.
Q: What stocks or sectors hurt Fund performance?
A: Financial stocks performed poorly, as rising interest rates continue to
have a negative impact on this sector. Gainsco, an insurance holding, and
Sun Bancorp, a bank holding, were two disappointments. Also,
6
<PAGE>
Pioneer Micro-Cap Fund
business cycle-sensitive stocks, such as those in the paper, trucking and
rail equipment industries suffered. For example, Consolidated Freightways,
a trucking company, returned dismal results. Not all technology stocks
were strong, either. Genrad, a manufacturer of computer controlled test
and development equipment, performed poorly.
Q: What is your outlook for micro-cap stocks?
A: In the short run, we are guardedly optimistic. We think the market for
micro-cap stocks will likely remain strong - the market has been given
every opportunity to crack and hasn't. Large sectors of the micro-cap
stock market are very cheap on a valuation basis, with the exception of
technology. Nevertheless, we expect to maintain a significant technology
weighting. We may gradually sell off some of the larger technology winners
and find new avenues for investment in other sectors in order to maintain
a diversified portfolio. However, we are not anti-technology. In our
estimation the sector is still early in its growth cycle. In our view,
there is no single sector about which one should be specifically
optimistic; there are really a lot of compelling micro-cap stocks out
there. These stocks are growing at 20 to 30% with price to earnings ratios
in the 11 to 13 range, but they are being widely ignored, although there
has been a modest broadening of interest in recent months. The success of
micro-cap stocks should, in our opinion, continue, as stocks of technology
companies with strong fundamentals maintain their success, and
lower-priced stocks, those that comprise much of the micro-cap sector, see
their prices rise. Although micro-cap stocks offer great long-term
potential, they may be more volatile and less liquid than stocks of larger
companies.
7
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/00 (unaudited)
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<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 93.3%
Basic Materials - 2.6%
Agricultural Products - 0.3%
22,500 Alico, Inc. $ 345,937
------------
Construction (Cement & Aggregates) - 0.6%
40,000 Oglebay Norton Co. $ 830,000
------------
Paper & Forest Products - 1.7%
53,600 Deltic Timber Corp. $ 1,145,700
152,000 Mercer International Inc.* 1,273,000
------------
$ 2,418,700
------------
Total Basic Materials $ 3,594,637
------------
Capital Goods - 6.7%
Aerospace/Defense - 0.9%
180,000 First Aviation Services, Inc.* $ 1,260,000
------------
Electrical Equipment - 2.4%
32,000 Genlyte Group, Inc.* $ 648,000
32,000 Power-One, Inc.* 2,804,000
------------
$ 3,452,000
------------
Metal Fabricators - 2.5%
104,000 Brushed Engineered Materials Inc. $ 1,813,500
186,000 N N Ball & Roller, Inc. 1,650,750
------------
$ 3,464,250
------------
Office Equipment & Supplies - 0.2%
39,900 Nashua Corp.* $ 329,174
------------
Waste Management - 0.7%
45,000 Stericycle Inc.* $ 911,250
------------
Total Capital Goods $ 9,416,674
------------
Communication Services - 0.8%
Telephone - 0.8%
110,000 Boston Communications Group, Inc.* $ 1,120,624
------------
Total Communication Services $ 1,120,624
------------
Consumer Cyclicals - 18.1%
Building Materials - 0.6%
38,000 Nortek Inc.* $ 814,625
------------
Consumer (Jewelry, Novelties & Gifts) - 1.2%
124,500 Koala Corp.* $ 1,774,125
------------
</TABLE>
8 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Micro-Cap Fund
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--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Footwear - 0.9%
78,500 Vans, Inc.* $ 1,236,375
------------
Hardware & Tools - 1.7%
125,000 WD-40 Co. $ 2,429,687
------------
Household Furnishing & Appliances - 0.8%
160,000 Lo-Jack Corp.* $ 1,100,000
------------
Leisure Time (Products) - 0.6%
84,000 Equity Marketing Inc.* $ 861,000
------------
Publishing - 0.8%
57,000 Advance Marketing Services, Inc. $ 1,054,500
------------
Retail (Computers & Electronics) - 1.1%
147,000 Inter-TAN, Inc.* $ 1,552,688
------------
Retail (Department Stores) - 0.3%
100,000 Elder-Beerman Stores Corp.* $ 450,000
------------
Retail (Home Shopping) - 1.4%
85,000 Coldwater Creek Inc.* $ 1,949,688
------------
Retail (Specialty) - 3.5%
165,000 Guitar Center Inc.* $ 2,124,375
140,000 Lithia Motors Inc.* 1,697,500
143,000 West Marine, Inc.* 1,152,938
------------
$ 4,974,813
------------
Retail (Specialty-Apparel) - 1.8%
30,000 Chico's Fas Inc.* $ 541,875
126,000 Wilsons The Leather Experts Inc.* 1,976,625
------------
$ 2,518,500
------------
Services (Commercial & Consumer) - 1.9%
51,500 Chemed Corp. $ 1,561,094
105,000 Right Management Consultants, Inc.* 1,063,125
------------
$ 2,624,219
------------
Textiles (Apparel) - 0.8%
135,000 Phillips-Van Heusen Corp. $ 1,172,813
------------
Textiles (Specialty) - 0.7%
275,000 Burlington Industries, Inc.* $ 910,938
------------
Total Consumer Cyclicals $ 25,423,971
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Consumer Staples - 8.1%
Distributors (Food & Health) - 1.2%
106,800 United Natural Foods Inc.* $ 1,615,350
------------
Foods - 4.6%
135,355 Hain Celestial Group, Inc.* $ 3,992,973
117,000 Horizon Organic Holding Corp.* 1,155,375
44,000 J & J Snack Foods Corp.* 654,500
160,000 Zapata Corp.* 600,000
------------
$ 6,402,848
------------
Household Products (Non-Durables) - 0.7%
30,000 National Presto Industries, Inc. $ 931,875
------------
Restaurants - 0.7%
160,000 Taco Cabana, Inc.* $ 1,020,000
------------
Services (Facilities & Environment) - 0.9%
61,640 Tetra Tech, Inc.* $ 1,356,080
------------
Total Consumer Staples $ 11,326,153
------------
Energy - 7.6%
Oil & Gas (Exploration/Production) - 7.6%
190,000 Basin Exploration, Inc.* $ 3,146,875
97,400 Natco Group Inc.* 925,300
60,000 St. Mary Land & Exploration Co. 2,160,000
100,000 Tom Brown Inc.* 2,187,500
166,000 Unit Corp.* 2,189,125
------------
Total Energy $ 10,608,800
------------
Financial - 10.7%
Banks - 0.5%
55,000 Capital Crossing Bank* $ 556,875
24,000 Sun Bancorp, Inc.* 166,500
------------
$ 723,375
------------
Financial (Diversified) - 6.8%
62,000 Bedford Property Investors Inc. $ 1,104,375
75,000 Dollar Thrifty Automotive Group, Inc.* 1,350,000
60,000 First Washington Realty Trust 1,245,000
67,000 Lasalle Hotel Properties 938,000
70,000 Microfinancial, Inc. 665,000
50,000 Pennsylvania Real Estate Investment Trust 871,875
130,000 Prime Group Realty Trust 1,982,500
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Micro-Cap Fund
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--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Financial (Diversified) - (continued)
280,000 Transmedia Network Inc.* $ 857,500
50,000 Wellsford Real Properties 400,000
------------
$ 9,414,250
------------
Insurance Brokers - 0.8%
78,000 Clark/Bardes Holdings Inc.* $ 1,150,500
------------
Insurance (Property/Casualty) - 1.8%
208,000 Gainsco Inc. $ 1,092,000
110,000 Highlands Insurance Group* 797,500
21,000 Miix Group, Inc. 250,687
25,000 Philadelphia Consolidated Holding Corp.* 425,000
------------
$ 2,565,187
------------
Savings & Loan Companies - 0.8%
80,000 First Washington Bancorp Inc. $ 1,155,000
------------
Total Financial $ 15,008,312
------------
Healthcare - 4.9%
Biotechnology - 0.6%
88,000 Texas Biotechnology Corp.* $ 852,500
------------
Healthcare (Diversified) - 0.7%
87,000 Chattem, Inc.* $ 1,033,125
------------
Healthcare (Hospital Management) - 1.5%
95,000 Triad Hospitals Inc.* $ 2,036,563
------------
Healthcare (Medical Products/Supplies) - 1.0%
45,000 Endocare Inc.* $ 776,250
40,000 Young Innovations, Inc.* 675,000
------------
$ 1,451,250
------------
Healthcare (Specialized Services) - 1.1%
55,000 Morrison Management Specialist, Inc. $ 1,495,313
------------
Total Healthcare $ 6,868,751
------------
Technology - 31.4%
Communications Equipment - 0.7%
68,300 Vyyo, Inc.* $ 1,007,425
------------
Computers (Hardware) - 0.2%
50,000 Auspex Systems, Inc. $ 237,500
------------
Computers (Peripherals) - 0.8%
100,000 Secure Computing Corp.* $ 1,162,500
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Micro-Cap Fund
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SCHEDULE OF INVESTMENTS 5/31/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Computers (Software & Services) - 3.6%
165,000 Avant! Corp.* $ 2,598,750
65,000 Avid Technology Inc.* 654,062
80,000 JDA Software Group Inc.* 1,230,000
110,000 Pervasive Software, Inc.* 556,875
-----------
$ 5,039,687
-----------
Electronics (Component Distributors) - 7.4%
75,000 ACT Manufacturing, Inc.* $ 2,362,500
271,240 Oak Technology, Inc.* 4,000,790
20,600 Parlex Corp.* 458,350
40,000 Power Integrations, Inc.* 930,000
120,000 Sipex Corp.* 2,626,875
-----------
$10,378,515
-----------
Electronics (Instrumentation) - 0.8%
160,000 Genrad Inc.* $ 1,170,000
-----------
Electronics (Semiconductors) - 4.2%
120,000 American Xtal Technology, Inc.* $ 4,155,000
250,000 Xicor, Inc.* 1,703,125
-----------
$ 5,858,125
-----------
Equipment (Semiconductors) - 11.9%
128,000 Align-Rite International, Inc.* $ 2,560,000
100,000 Applied Science & Technology, Inc.* 2,031,250
39,000 ATMI Inc.* 1,496,625
95,000 Brooks Automation, Inc.* 3,776,250
30,000 Helix Technology Corp. 1,021,875
70,000 HI/FN, Inc.* 2,025,625
2,500 Photon Dynamics Inc.* 150,780
35,000 PRI Automation, Inc.* 1,798,672
38,700 Veeco Instruments, Inc. 1,741,500
-----------
$16,602,577
-----------
Services (Computer Systems) - 1.4%
100,000 Centigram Communications Corp.* $ 1,893,750
-----------
Services (Data Processing) - 0.4%
60,000 PSW Technologies, Inc.* $ 577,500
-----------
Total Technology $43,927,579
-----------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Micro-Cap Fund
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Transportation - 0.1%
Railroads - 0.0%
1 Rail America Inc. $ 4
------------
Truckers - 0.1%
35,000 Consolidated Freightways Corp.* $ 157,500
------------
Total Transportation $ 157,504
------------
Utilities - 2.3%
Natural Gas - 2.3%
51,000 NUI Corp. $ 1,428,000
200,000 Southwestern Energy Co. 1,850,000
------------
Total Utilities $ 3,278,000
------------
TOTAL COMMON STOCKS
(Cost $115,710,909) $130,731,005
------------
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENTS - 6.7%
Commercial Paper - 6.7%
$5,145,000 Citigroup Inc., 6.62%, 6/2/00 $ 5,145,000
4,242,000 Ford Motor Credit Corp., 6.61%, 6/1/00 4,242,000
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $9,387,000) $ 9,387,000
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $125,097,909) (a) (b) $140,118,005
------------
</TABLE>
* Non-income producing security.
(a) At May 31, 2000, the net unrealized gain on investments based on cost for
federal income tax purposes of $125,382,032 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 27,873,751
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value $(13,137,778)
------------
Net unrealized gain $ 14,735,973
------------
</TABLE>
(b) At November 30, 1999, the Fund had a capital loss carryforward of
$1,666,148 which will expire in 2006 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended May 31, 2000, aggregated $73,286,078 and $38,343,887,
respectively.
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
BALANCE SHEET 5/31/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash
investments of $9,387,000) (cost $125,097,909) $140,118,005
Cash 902
Receivables -
Investment securities sold 1,022,032
Fund shares sold 336,899
Dividends and interest 47,653
Organizational costs - net 8,793
Other 11,075
------------
Total assets $141,545,359
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 530,565
Due to affiliates 317,151
Accrued expenses 89,265
------------
Total liabilities $ 936,981
------------
NET ASSETS:
Paid-in capital $127,571,984
Accumulated net investment loss (526,099)
Accumulated net realized loss on investments and futures
contracts (1,457,603)
Net unrealized gain on investments 15,020,096
------------
Total net assets $140,608,378
------------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $55,039,124/2,689,115 shares) $ 20.47
------------
Class B (based on $85,569,254/4,277,373 shares) $ 20.01
------------
MAXIMUM OFFERING PRICE:
Class A $ 21.72
------------
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended 5/31/00
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends $ 502,934
Interest 411,853
----------
Total investment income $ 914,787
-----------
EXPENSES:
Management fees $ 710,841
Transfer agent fees
Class A 59,982
Class B 103,319
Distribution fees
Class A 61,641
Class B 399,658
Administrative fees 15,793
Custodian fees 18,209
Registration fees 22,509
Professional fees 28,914
Printing 16,653
Organization costs 2,562
Fees and expenses of nonaffiliated trustees 13,176
Miscellaneous 5,149
----------
Total expenses $ 1,458,406
Less fees paid indirectly (17,520)
-----------
Net expenses $ 1,440,886
-----------
Net investment loss $ (526,099)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FUTURES CONTRACTS:
Net realized gain from:
Investments $1,278,488
Futures contracts 340,403 $ 1,618,891
---------- -----------
Change in net unrealized gain on investments $11,161,244
-----------
Net gain on investments and futures contracts $12,780,135
-----------
Net increase in net assets resulting from operations $12,254,036
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
For the Six Months Ended 5/31/00 and the Year Ended 11/30/99
<TABLE>
<CAPTION>
Six Months
Ended Year
5/31/00 Ended
<S> (unaudited) 11/30/99
FROM OPERATIONS: <C> <C>
Net investment loss $ (526,099) $ (978,784)
Net realized gain on investments and futures contracts 1,618,891 6,951,580
Change in unrealized gain on investments and futures
contracts 11,161,244 13,341,071
------------ ------------
Net increase in net assets resulting from
operations $ 12,254,036 $ 19,313,867
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 64,003,112 $ 24,805,249
Cost of shares repurchased (26,074,147) (47,473,545)
------------ ------------
Net increase (decrease) in net assets resulting from
fund share transactions $ 37,928,965 $(22,668,296)
------------ ------------
Net increase (decrease) in net assets $ 50,183,001 $ (3,354,429)
NET ASSETS:
Beginning of period 90,425,377 93,779,806
------------ ------------
End of period (including accumulated net investment
loss of $526,099 and $0, respectively) $140,608,378 $ 90,425,377
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
'00 Shares '00 Amount
CLASS A (unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
Shares sold 1,351,156 $29,905,826 856,949 $ 13,979,576
Less shares repurchased (599,930) (12,911,020) (1,556,258) (24,279,765)
--------- ----------- ---------- ------------
Net increase (decrease) 751,226 $16,994,806 (699,309) $(10,300,189)
--------- ----------- ---------- ------------
CLASS B
Shares sold 1,584,492 $34,097,286 670,941 $ 10,825,673
Less shares repurchased (629,862) (13,163,127) (1,529,946) (23,193,780)
--------- ----------- ---------- ------------
Net increase (decrease) 954,630 $20,934,159 (859,005) $(12,368,107)
--------- ----------- ---------- ------------
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Year 2/28/97
5/31/00(a) Ended Ended to
(unaudited) 11/30/99 11/30/98 11/30/97(a)
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 17.40 $ 13.85 $ 17.84 $ 15.00
------- ------- -------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.04) $ (0.08) $ (0.15) $ (0.07)
Net realized and unrealized gain (loss) on
investments and futures contracts 3.11 3.63 (2.77) 2.91
-------- ------- -------- --------
Net increase (decrease) from investment
operations $ 3.07 $ 3.55 $ (2.92) $ 2.84
Distributions to shareholders:
Net realized gain - - ( 1.07) -
-------- ------- -------- --------
Net increase (decrease) in net asset value $ 3.07 $ 3.55 $ (3.99) $ 2.84
-------- ------- -------- --------
Net asset value, end of period $ 20.47 $ 17.40 $ 13.85 $ 17.84
-------- ------- -------- --------
Total return* 17.64% 25.63% (17.17)% 18.93%
Ratio of net expenses to average net assets+ 1.78%** 2.02% 1.85% 1.76%**
Ratio of net investment loss to average net
assets+ (0.37)%** (0.71)% ( 0.83)% (0.60)%**
Portfolio turnover rate 67%** 78% 81% 55%**
Net assets, end of period (in thousands) $55,039 $33,714 $ 36,528 $51,825
Ratios assuming no waiver of management
fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 1.78%** 2.02% 1.85% 2.12%* *
Net investment loss (0.37)%** (0.71)% ( 0.83)% (0.96)%**
Ratios assuming waiver of management fees
and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.75%* * 1.98% 1.84% 1.70%* *
Net investment loss (0.34)%** (0.67)% ( 0.82)% (0.54)%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Year 2/28/97
5/31/00 Ended Ended to
(unaudited) 11/30/99 11/30/98 11/30/97(a)
<S> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 17.07 $ 13.69 $ 17.77 $ 15.00
------- ------- -------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.08) $ (0.24) $ (0.25) $ (0.16)
Net realized and unrealized gain (loss) on
investments and futures contracts 3.02 3.62 (2.76) 2.93
------- ------- -------- --------
Net increase (decrease) from investment
operations $ 2.94 $ 3.38 $ (3.01) $ 2.77
Distributions to shareholders:
Net realized gain - - ( 1.07) -
-------- ------- -------- --------
Net increase (decrease) in net asset value $ 2.94 $ 3.38 $ (4.08) $ 2.77
-------- ------- -------- --------
Net asset value, end of period $ 20.01 $ 17.07 $ 13.69 $ 17.77
-------- ------- -------- --------
Total return* 17.22% 24.69% (17.78)% 18.47%
Ratio of net expenses to average net assets+ 2.54%** 2.73% 2.55% 2.48%**
Ratio of net investment loss to average net
assets+ (1.12)%** (1.42)% (1.53)% (1.32)%**
Portfolio turnover rate 67%** 78% 81% 55%**
Net assets, end of period (in thousands) $85,569 $56,711 $ 57,252 $70,971
Ratios assuming no waiver of management
fees and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 2.54%* * 2.73% 2.55% 2.81%* *
Net investment loss (1.12)%** (1.42)% (1.53)% (1.65)%**
Ratios assuming waiver of management fees
and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 2.52%* * 2.69% 2.54% 2.42%* *
Net investment loss (1.10)%** (1.38)% (1.52)% (1.26)%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/00 (unaudited)
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Micro-Cap Fund (the Fund) is a Delaware business trust registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company. The investment objective of the Fund is to seek long-term
growth of capital.
The Fund offers two classes of shares - Class A and Class B shares. Shares of
Class A and Class B each represent an interest in the same portfolio of
investments of the Fund and have equal rights to voting, redemptions, dividends
and liquidation, except that each class of shares can bear different transfer
agent and distribution fees and has exclusive voting rights with respect to the
distribution plans that have been adopted by Class A and Class B shareholders,
respectively.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to,
among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts
of revenues and expenses during the reporting periods. Actual results could
differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Fund, which are in conformity
with those generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value is
computed daily, on each day the New York Stock Exchange is open, as of the
close of regular trading on the Exchange. In computing the net asset value,
securities are valued at the last sale price on the principal exchange where
they are traded. Securities that have not traded on the date of valuation,
or securities for which sale prices are not generally reported, are valued
at the mean between the last bid and asked prices. Securities for which
market quotations are not readily available are valued at their fair values
as determined by, or under the direction of, the Board of Trustees. Dividend
income is recorded on the ex-dividend date and interest income is recorded
on the accrual basis. Temporary cash investments are valued at amortized
cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities
19
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/00 (unaudited) (cont'd)
--------------------------------------------------------------------------------
that have the highest cost and also qualify for long-term capital gain or
loss treatment for tax purposes.
The Fund invests in smaller capitalized company securities that tend to be
more sensitive to changes in earnings expectations and have lower trading
volumes than mid to large capitalized company securities, and as a result,
they may experience more abrupt and erratic price movements.
B. Futures Contracts
The Fund may enter into futures transactions to hedge against changes in
interest rates, securities prices, and currency rates or to seek to increase
total return. Upon entering into a futures contract, the Fund is required to
deposit with a broker an amount of cash or securities equal to the minimum
"initial margin" requirements of the associated futures exchange. Subsequent
payments for futures contracts ("variation margin") are paid or received by
the Fund, depending on the daily fluctuation in the value of the contracts,
and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund realizes a gain or loss equal to the difference
between the opening and closing values of the contract. The use of futures
contracts involves, to varying degrees, elements of market risks which may
exceed the amounts recognized by the Fund. Changes in the value of the
contracts may not directly correlate to the changes in the value of the
underlying securities. These risks may decrease the effectiveness of the
Fund's hedging strategies and potentially result in a loss. At May 31, 2000,
the Fund had no outstanding futures contracts.
C. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
20
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
D. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and an indirect subsidiary of The Pioneer Group, Inc. (PGI), earned
$6,305 in underwriting commissions on the sale of fund shares during the six
months ended May 31, 2000.
E. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A and Class B shares of the Fund, respectively.
Shareholders of each class share all expenses and fees paid to the transfer
agent, Pioneering Services Corporation (PSC), for their services, which are
allocated based on the number of accounts in each class and the ratable
allocation of related out-of-pocket expense (see Note 3). Income, common
expenses and realized and unrealized gains and losses are calculated at the
Fund level and allocated daily to each class of shares based on the
respective percentage of adjusted net assets at the beginning of the day.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A and Class B shares can bear different transfer agent and
distribution fees.
F. Deferred Organization Costs
The costs incurred by the Fund in connection with its organization have been
deferred and are amortized on a straight-line basis over a period of up to
five years. If Pioneer Investment Management, Inc. (PIM) redeems any of its
initial investment prior to the end of the amortization period, the
redemption proceeds will be decreased by the pro rata share of the
unamortized expenses as of the date of redemption. The pro rata share is
derived by dividing the number of original shares redeemed by the total
number of original shares outstanding at the time of redemption.
2. Management Agreement
PIM, the Fund's investment adviser, manages the Fund's portfolio and is a
wholly owned subsidiary of PGI. Management fees are calculated daily at the
annual rate of 1.10% 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
21
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/00 (unaudited) (cont'd)
--------------------------------------------------------------------------------
insurance premiums, are paid by the Fund. At May 31, 2000, $148,841 was payable
to PIM related to management fees, administrative fees and certain other
services.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in due
to affiliates is $69,876 in transfer agent fees payable to PSC at May 31, 2000.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan
and Class B Plan) in accordance with Rule 12b-1 of the Investment Company Act
of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service fee of up to
0.25% of the average daily net assets attributable to Class A shares in
reimbursement of its actual expenditures to finance activities primarily
intended to result in the sale of Class A shares. Pursuant to the Class B Plan,
the Fund pays PFD 1.00% of the average daily net assets attributable to Class B
shares. The fee consists of a 0.25% service fee and a 0.75% distribution fee
paid as compensation for personal services and/or account maintenance services
or distribution services with regard to Class B shares. Included in due to
affiliates is $98,434 in distribution fees payable to PFD at May 31, 2000.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of
purchase. Class B shares that are redeemed within six years of purchase are
subject to a CDSC at declining rates beginning at 4.00% based on the lower of
cost or market value of shares being redeemed. Proceeds from the CDSCs are paid
to PFD. For the six months ended May 31, 2000, CDSCs in the amount of $126,449
were paid to PFD.
5. Expense Offsets
The Fund has entered into certain directed brokerage and expense offset
arrangements resulting in a reduction in the Fund's total expenses. For the six
months ended May 31, 2000, the Fund's expenses were reduced by $17,520 under
such arrangements.
22
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
6. Line of Credit Facility
The Fund, along with certain other funds in the Pioneer Family of Funds (the
Funds), collectively participate in a $50 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $50 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
of up to $25 million is payable at the Federal Funds Rate plus 3/8% on an
annualized basis, or at the Federal Funds Rate plus 1/2% if the borrowing
exceeds $25 million at any one time. The Funds pay an annual commitment fee for
this facility. The commitment fee is allocated among such Funds based on their
respective borrowing limits. For the six months ended May 31, 2000, the Fund
had no borrowings under this agreement.
23
<PAGE>
Pioneer Micro-Cap Fund
--------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
--------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham Eric W. Reckard, Treasurer
Marguerite A. Piret Joseph P. Barri, Secretary
David D. Tripple
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
24
<PAGE>
--------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
--------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds Income Funds
United States Taxable
Pioneer Growth Shares Pioneer America Income Trust
Pioneer Micro-Cap Fund Pioneer Bond Fund
Pioneer Mid-Cap Fund Pioneer High Yield Fund
Pioneer Mid-Cap Value Fund Pioneer Limited Maturity Bond Fund
Pioneer Science & Technology Fund Pioneer Strategic Income Fund
Pioneer Small Company Fund
Pioneer Tax-Managed Fund Tax-Free
Pioneer Tax-Free Income Fund
International/Global
Pioneer Emerging Markets Fund Money Market Fund
Pioneer Europe Fund Pioneer Cash Reserves Fund*
Pioneer Indo-Asia Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Fund
Pioneer II
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Real Estate Shares
*An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1 per share, it is possible to
lose money by investing in the Fund.
25
<PAGE>
--------------------------------------------------------------------------------
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
--------------------------------------------------------------------------------
Your investment representative can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-800-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 13-digit account number and four-digit personal identification number at
hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as
you meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
26
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds
you wish to invest in. You choose the amounts and dates for Pioneer to sell
shares of your original fund and use the proceeds to buy shares of the other
funds you have chosen. Over time, your investment will be shifted out of the
original fund. (Automatic Exchange is available for originating accounts with a
balance of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals.
You decide the frequency and the day of the month you want. Pioneer will send
the proceeds by check to the address you designate, or electronically to your
bank account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available for accounts with a value of $10,000 or
more.)
27
<PAGE>
--------------------------------------------------------------------------------
RETIREMENT PLANS FROM PIONEER
--------------------------------------------------------------------------------
Pioneer has a long history of helping people work toward their retirement
goals, offering plans suited to the individual investor and businesses of all
sizes. For more information on Pioneer retirement plans, contact your
investment professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 70-1/2 with earned
income to contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
The Roth IRA lets investors contribute up to $2,000 a year. Contributions are
not tax-deductible, but earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $10,000 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match Plan for Employees)
401(k) or IRA Plan
Businesses with 100 or fewer eligible employees can establish either plan; both
resemble the traditional 401(k), but with less testing and lower administration
costs. Employees can make pre-tax contributions of up to $6,000 per year, and
an employer contribution is required.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties
28
<PAGE>
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--------------------------------------------------------------------------------
403(b) Plan
Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is available only to
employees of public schools, not-for-profit hospitals and other tax-exempt
organizations. A 403(b) plan lets employees set aside a portion of their
salary, before taxes, through payroll deduction.
Simplified Employee Pension Plan (SEP)
SEPs let self-employed people and small-business owners make tax-deductible
contributions of up to 15% of their income. Generally, employers must
contribute the same percentage of pay for themselves and any eligible
employees; contributions are made directly to employees' IRAs. SEPs are easy to
administer and can be an especially good choice for firms with few or no
employees.
Profit Sharing Plan
Profit sharing plans offer companies considerable flexibility, allowing them to
decide each year whether a contribution will be made and how much, up to 15% of
each participant's pay. These plans can include provisions for loans and
vesting schedules.
Age-Weighted Profit Sharing Plan
Like traditional profit sharing plans, employer contributions are flexible, but
age-weighted plans allocate contributions based on both age and salary.
Age-weighted plans are designed for employers who want to maximize their own
contributions while keeping contributions to employees affordable.
Money Purchase Pension Plan (MPP)
Money purchase plans are similar to profit-sharing plans, but allow for higher
annual contributions - up to 25% of pay. MPPs aren't as flexible as profit
sharing plans; a fixed percentage of pay must be contributed each year,
determined when the plan is established. Businesses often set up both MPPs and
profit sharing plans.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
29
<PAGE>
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HOW TO CONTACT PIONEER
--------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer Logo]
Pioneer Investment Management, Inc.
60 State Street 8538-00-0700
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [Recycle] Printed on Recycled Paper
