[Pioneer logo]
P i o n e e r
Independence Fund
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Prospectus, May 3, 1999
Contents
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Basic information about the fund 1
Management 5
Buying, exchanging and selling shares 6
Dividends, capital gains and taxes 15
Financial highlights 16
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Shares of the fund are offered to the general public only through investments
in Pioneer Independence Plans. The creation and sales charges for these plans
may amount to 50% of the first 12 investments made. The accompanying Pioneer
Independence Plans prospectus includes details of Pioneer Independence Plans,
including creation and sales charges. Please read it and retain for future
reference.
Neither the Securities and Exchange Commission nor any state securities agency
has approved the fund's shares or determined whether this prospectus is accurate
or complete. Any representation to the contrary is a crime.
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Basic information about the fund
Investment objective
Capital growth.
Investment strategies
The fund invests at least 80% of its assets in common stocks. The fund
considers securities that trade like common stocks, such as convertible debt,
warrants, interest in real estate investment trusts (REITs) and preferred
stocks, to be common stocks.
Pioneer Investment Management, Inc., the fund's investment adviser, seeks
securities selling at reasonable prices or substantial discounts to their
underlying values and then holds these securities until the market values
reflect their intrinsic values. Pioneer evaluates a security's potential value
based on the company's assets and prospects for earnings and revenue growth.
In making that assessment, Pioneer employs fundamental research and due
diligence. Pioneer relies on the knowledge, experience and judgment of its
staff who have access to a wide variety of research. Factors Pioneer looks for
in selecting investments include:
[box] Estimated private market value in excess of current stock price.
Private market value is the price an independent investor would pay
to own the entire company
[box] Above average potential for earnings and revenue growth
[box] Management with demonstrated ability and commitment to the company
[box] Low market valuations relative to earnings forecast, book value, cash flow
and sales
Pioneer focuses on the quality and price of individual issuers, not on economic
sector or market-timing strategies. The fund avoids concentrating in any one
sector or industry.
Principal risks of investing in the fund
Even though the fund seeks capital growth, you could lose money on your
investment or not make as much as if you invested elsewhere if:
[box] The stock market goes down (this risk may be greater in the short term)
[box] Value stocks fall out of favor with investors
[box] The fund's investments do not have the growth potential originally
expected
The fund's performance
Since the fund is newly organized, it does not disclose any performance
information. The fund's performance will vary from year to year. Past
performance does not necessarily indicate how a fund will perform in the future.
As a shareowner, you may lose or make money on your investment.
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An investment in the fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
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Contact your investment professional to discuss how the fund fits into your
portfolio.
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1
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Fees and expenses
These are the fees and expenses, based on the fund's latest fiscal year, you
may pay if you invest directly in the fund.
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Shareowner fees
paid directly from your investment
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Maximum sales charge (load) when you buy shares as a
percentage of offering price None
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Maximum deferred sales charge (load) as a percentage of
offering price or the amount you receive when you sell
shares, whichever is less None
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Annual fund operating expenses
paid from the assets of the fund
as a percentage of average daily net assets
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Management Fee(1) 0.75%
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Distribution and Service (12b-1) Fee 0.25%
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Other Expenses 16.26%
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Total Annual Fund Operating Expenses(1) 17.26%
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(1) Pioneer has agreed not to impose all or a portion of its management fee and,
if necessary, to limit other operating expenses of the fund to the extent
required to reduce expenses to 1.50% of the average daily net assets of the
fund. This agreement is voluntary and temporary and may be revised or
terminated at any time. Actual management fees, other expenses paid by the
fund and total fund operating expenses for the fiscal year ended December
31, 1998 were:
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Management Fees 0.00%
Distribution and Service (12b-1) Fee 0.25%
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Other Expenses 1.25%
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Total Annual Fund Operating Expenses 1.50%
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Example
This example helps you compare the costs of investing in the fund with the cost
of investing in other mutual funds. It assumes that: a) you invest $10,000 in
the fund for the time periods shown, b) you reinvest all dividends and
distributions, c) your investment has a 5% return each year and d) the fund's
operating expenses remain the same.
Although your actual costs may be higher or lower, under these assumptions your
costs would be:
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<CAPTION>
Number of years you own your shares
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1 3 5 10
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<S> <C> <C> <C> <C>
$1,620 $4,289 $6,344 $9,642
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2
<PAGE>
Basic information about the fund
Other investment strategies
As discussed, the fund invests primarily in common stock.
This section describes additional investments that the fund may make or
strategies that it may pursue to a lesser degree to achieve the fund's goal.
Some of the fund's secondary investment policies also entail risks. To learn
more about these investments and risks, you should obtain and read the
statement of additional information (SAI).
More on principal investments
The fund may invest up to 25% of its total assets (at the time of purchase) in
real estate investment trusts. Real estate investment trusts are pooled
investment vehicles that invest primarily in real estate or real estate related
loans. Investing in real estate investment trusts involves unique risks. They
are significantly affected by the market for real estate and are dependent upon
management skills and cash flow.
Investments other than U.S. common stocks
The fund may invest up to 25% of its total assets (at the time of purchase)
in equity and debt securities of non-U.S. issuers, including up to 10% of its
assets in the securities of emerging markets issuers. The fund invests in
non-U.S. securities to diversify its portfolio when they offer similar or
greater potential for capital appreciation compared to U.S. securities.
Investing in non-U.S. issuers may involve unique risks compared to investing in
securities of U.S. issuers. Some of these risks do not apply to the larger, more
developed non-U.S. countries. However, these risks are more pronounced for
issuers of securities in emerging markets. These risks may include:
[box] Less information about non-U.S. issuers or markets may be available due to
less rigorous disclosure and accounting standards or regulatory practices
[box] Many non-U.S. markets are smaller, less liquid and more volatile. In a
changing market, Pioneer may not be able to sell the fund's portfolio
securities in amounts and at prices it considers reasonable
[box] Adverse effect of currency exchange rates or controls on the value of the
fund's investments
[box] Political, economic and social developments that adversely affect the
securities markets
[box] Withholding and other non-U.S. taxes may decrease the fund's return
The fund may invest up to 20% of its total assets (at the time of purchase) in
debt securities or corporate and government issuers. Generally the fund may
acquire debt securities that are investment grade, but the fund may invest up to
5% of its total assets (at the time of purchase) in below investment grade debt
securities. The fund invests in debt securities when Pioneer believes they are
consistent with the fund's investment objective and offer the potential for
capital growth, to diversify the fund's portfolio or for greater liquidity.
Debt securities are subject to the risk of an issuer's inability to meet
principal or interest payments on its obligations. Factors which could
contribute to a decline in the market value of debt securities in the fund's
portfolio include rising interest rates or a reduction in the perceived
creditworthiness of the issuer of the securities. A debt security is investment
grade if it is rated in one of the top four categories by a nationally
recognized securities rating organization or determined to be of equivalent
credit quality by Pioneer. Debt securities rated below investment grade are
commonly referred to as "junk bonds" and are considered speculative. Below
investment grade debt securities involve greater risk of loss, are subject to
greater price volatility and are less liquid, especially during periods of
economic uncertainty or change, than higher quality debt securities.
3
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Temporary investments
Normally, the fund invests substantially all of its assets to meet its
investment objective. The fund may invest the remainder of its assets in
securities with a remaining maturity of less than one year, cash equivalents or
may hold cash. For temporary defensive purposes, the fund may depart from its
principal investment strategies and invest part or all of its assets in these
securities. During such periods, the fund may not be able to achieve its
investment objective. The fund intends to adopt a defensive strategy only when
Pioneer believes common stocks have extraordinary risks due to political or
economic factors.
Short-term trading
The fund usually does not trade for short-term profits. The fund will sell an
investment, however, even if it has only been held for a short time, if it no
longer meets the fund's investment criteria. If the fund does a lot of trading,
it may incur additional operating expenses, which would reduce performance, and
could cause shareowners to incur a higher level of taxable income or capital
gains.
Derivatives
The fund may use futures, options and other derivatives. A derivative is a
security or instrument whose value is determined by reference to the value or
the change in value of one or more securities, currencies, indices or other
financial instruments. The fund does not use derivatives as a primary
investment technique and generally limits their use to hedging. However, the
fund may use derivatives for a variety of purposes, including:
[box] As a hedge against adverse changes in stock market prices, interest rates
or currency exchange rates
[box] As a substitute for purchasing or selling securities
[box] To increase the fund's return as a non-hedging strategy that may be
considered speculative
Even a small investment in derivatives can have a significant impact on the
fund's exposure to stock market values, interest rates or currency exchange
rates. If changes in a derivative's value do not correspond to changes in the
value of the fund's other investments, the fund may not fully benefit from or
could lose money on the derivative position. In addition, some derivatives
involve risk of loss if the person who issued the derivative defaults on its
obligation. Certain derivatives may be less liquid and more difficult to value.
Portfolio turnover
The fund's annual portfolio turnover rate has exceeded 100%. A
high portfolio turnover rate may result in high transaction costs that are borne
by the fund and its shareholders. See "Financial highlights" for actual annual
turnover rates.
4
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Management
Pioneer, the fund's investment adviser,
selects the fund's investments and oversees the fund's operations.
Pioneer Group
The Pioneer Group, Inc. and its subsidiaries are engaged in financial services
businesses in the United States and many foreign countries. As of December 31,
1998, the firm had more than $23 billion in assets under management worldwide
including more than $22 billion in U.S. mutual funds. The firm's U.S. mutual
fund investment history includes creating in 1928 one of the first mutual
funds. John F. Cogan, chairman of the board and president of The Pioneer Group,
Inc., owns approximately 14% of the firm. He is also an officer and director of
each of the Pioneer mutual funds.
Investment adviser
Pioneer manages a family of U.S. and international stock funds, bond funds
and money market funds. Pioneer is a subsidiary of The Pioneer Group, Inc. Its
main office is at 60 State Street, Boston, Massachusetts 02109.
Portfolio manager
Day-to-day management of the fund's portfolio is the responsibility of co-
managers David D. Tripple and Theresa A. Hamacher. Mr. Tripple is president of
Pioneer and executive vice president of all the Pioneer mutual funds. Mr.
Tripple joined Pioneer in 1974 and has been either president or chief
investment officer for over 5 years. Ms. Hamacher, chief investment officer of
Pioneer has general responsibility for Pioneer's investment operations. Ms.
Hamacher joined Pioneer in 1997 and has been an investment professional since
1984; most recently as chief investment officer at another investment adviser.
Mr. Tripple and Ms. Hamacher are assisted by a team of senior portfolio
managers which meets regularly to discuss holdings, prospective investments and
portfolio composition.
Management fee
The fund pays Pioneer a fee for managing the fund and to cover the cost of
providing certain services to the fund. Pioneer's annual fee is equal to 0.75%
of the fund's average daily net assets. The fee is normally computed daily and
paid monthly.
Distributor and transfer agent
Pioneer Funds Distributor, Inc. is the fund's distributor. Pioneering Services
Corporation is the fund's transfer agent. The fund compensates the distributor
and transfer agent for their services. The distributor and the transfer agent
are subsidiaries of The Pioneer Group, Inc.
Year 2000
Information technology experts are concerned about computer and other
electronic systems' ability to process date-related information on and after
January 1, 2000. This scenario, commonly referred to as the "Year 2000
problem," could have an adverse impact on the fund and the provision of
services to its shareowners. Pioneer is addressing the Year 2000 problem with
respect to its systems and those used by the distributor and transfer agent.
During 1999, Pioneer expects to finish addressing all material Year 2000 issues
and to participate in industry-wide testing. The fund has obtained assurances
from its other service providers that they are taking appropriate Year 2000
measures and Pioneer is monitoring their efforts. Although the fund does not
expect the Year 2000 problem to adversely impact it, the fund cannot guarantee
that its, or the fund's service providers', efforts will be successful.
5
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Buying, exchanging and selling shares directly owned
[callout box]
[graphic of magnifying glass]
Share price
The net asset value per share calculated
on the day of your transaction.
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Net asset value
The fund's net asset value is the value of its portfolio of securities plus any
other assets minus its operating expenses and any other liabilities. The fund
calculates a net asset value per share every day the New York Stock Exchange is
open when regular trading closes (normally 4:00 p.m. Eastern time).
The fund generally values its portfolio securities based on market prices or
quotations. When market prices are not available or are considered by Pioneer
to be unreliable, the fund may use an asset's fair value. Fair value is
determined in accordance with procedures approved by the fund's trustees.
International securities markets may be open on days when the U.S. markets are
closed. For this reason, the values of any international securities owned by
the fund could change on a day when you cannot buy or sell shares of the fund.
You buy or sell shares at the net asset value per share calculated on the day
of your transaction.
Distribution plan
The fund has adopted a distribution plan for shares offered through this
prospectus in accordance with Rule 12b-1 under the Investment Company Act of
1940. Under the plan the fund pays distribution and service fees to the
distributor. Because these fees are an ongoing expense, over time they increase
the cost of your investment and your shares may cost more than shares that are
not subject to a distribution fee.
6
<PAGE>
Buying, exchanging and selling shares directly owned
General rules on buying, exchanging and selling
your fund shares
Share price
If you place an order with your investment firm before the New York Stock
Exchange closes and your investment firm submits the order to the distributor
prior to the distributor's close of business (usually 5:30 p.m. Eastern time),
your share price will be calculated that day. Otherwise, your price per share
will be calculated at the close of the New York Stock Exchange after the
distributor receives your order. Your investment firm is responsible for
submitting your order to the distributor.
Buying
The accompanying plan prospectus describes the methods of buying fund shares
through Pioneer Independence Plans.
You may buy shares of the fund directly from the fund's transfer agent (at net
asset value) only through one of the following:
[box] an employer-sponsored retirement plan established for the benefit of
employees of The Pioneer Group Inc. or employees of its affiliates; or
[box] an employer-sponsored retirement plan established for the benefit of
employees or affiliates of dealers which have entered into agreements with
the distributor to sell Pioneer Independence Plans
There is no minimum initial or minimum subsequent investment amount.
The fund has entered into an agreement with the distributor under which the
fund issues shares at the net asset value per share to State Street Bank and
Trust Company as custodian for the plans. The plan custodian will generally
hold all shares of the fund on behalf of the plan owners in accordance with the
terms of the applicable plan prospectus. A plan owner may own fund shares
directly:
[box] if the plan owner has completed or terminated a plan or
[box] as a result of a partial withdrawal from a plan causing fund shares to be
transferred into a non-contributory account
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Direct purchases of the fund
The fund will sell its shares to the general public only through Pioneer
Independence Plans.
You may exchange and sell shares of the fund only if you hold them directly.
Otherwise, please consult the accompanying Pioneer Independence Plans
prospectus.
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[callout box]
[graphic of question mark]
Consult your investment professional
to learn more about buying, exchanging
or selling fund shares.
[end box]
7
<PAGE>
[callout box]
[graphic of pillar]
You may have to pay federal income
taxes on a sale or an exchange.
[end box]
Exchanging
You may exchange your shares for Class A shares of another Pioneer mutual fund.
Fund shares exchanged for shares of another Pioneer mutual fund may not be
exchanged back to Pioneer Independence Fund.
Your exchange request must be for at least $1,000 unless the fund you are
exchanging into has a different minimum. The fund allows you to exchange your
shares at net asset value without charging you either an initial or contingent
deferred sales charge at the time of the exchange.
Before you request an exchange, consider each fund's investment objective and
policies as described in the fund's prospectus.
Selling
Your shares will be sold at net asset value per share next calculated after the
fund receives your request in good order.
The fund generally will send your sale proceeds by check, bank wire or
electronic funds transfer. Normally you will be paid within seven days. If you
recently sent a check to purchase the shares being sold, the fund may delay
payment of the sale proceeds until your check has cleared. This may take up to
15 calendar days from the purchase date.
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Good order means that:
[box] You have provided adequate instructions
[box] There are no outstanding claims against your account
[box] There are no transaction limitations on your account
[box]If you have any fund share certificates, you submit them and they are
signed by each record owner exactly as the shares are registered
[box] Your request includes a signature guarantee if you:
- Are selling over $100,000 or exchanging over $500,000 worth of shares
- Changed your account registration or address within the last 30 days
- Instruct the transfer agent to mail the check to an address different
from the one on your account
- Want the check paid to someone other than the account owner(s)
- Are transferring the sale proceeds to a Pioneer mutual fund account with
a different registration
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8
<PAGE>
Buying, exchanging and selling shares directly owned
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<CAPTION>
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Buying shares Exchanging shares
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<S> <C> <C>
Through your You can buy fund shares only through Normally, your investment firm will send your
investment firm Pioneer Independence Plans. Consult exchange request to the fund's transfer agent.
your investment professional for more agent. Consult your investment
information. Your investment firm may professional for more information about
receive a commission from the distributor exchanging shares.
for your purchase of fund shares. The
distributor or its affiliates may pay additional
compensation, out of their own assets, to
certain investment firms or their affiliates
based on objective criteria established by
the distributor.
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By phone You can use the telephone purchase You can exchange fund shares by
privilege if you have an existing non- phone if:
retirement account or certain IRAs. You can [box] You are using the exchange to establish a
purchase additional fund shares by phone if: new account, provided the new account
[box] You established your bank account of has a registration identical to the original
record at least 30 days ago account
[box] Your bank information has not changed for [box] The fund into which you are exchanging
at least 30 days offers the same class of shares
[box] You are not purchasing more than $25,000 [box] You are not exchanging more than
worth of shares per account per day $500,000 worth of shares per account
[box] You can provide the proper account per day
identification information [box] You can provide the proper account
identification number
When you request a telephone purchase, the
transfer agent will electronically debit the
amount of the purchase from your bank
account of record. The transfer agent will
purchase fund shares for the amount of the
debit at the offering price determined after
the transfer agent receives your telephone
purchase instruction and good funds. It
usually takes three business days for the
transfer agent to receive notification from
your bank that good funds are available in
the amount of your investment.
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In writing, You can purchase fund shares for an existing You can exchange fund shares by mailing
by mail fund account by mailing a check to the or faxing a letter of instruction to the
or by fax transfer agent. Make your check payable transfer agent. You can exchange fund
to the fund. Neither initial nor subsequent shares directly through the fund only if your
investments should be made by third party account is registered in your name. However,
check. Your check must be in U.S. dollars you may not fax an exchange request for
and drawn on a U.S. bank. Include in your more than $500,000. Include in your letter:
purchase request the fund's name, the [box] The names, social security number and
account number and the name or names signatures of all registered owners
in the account registration. [box] A signature guarantee for each registered
owner if the amount of the exchange is
more than $500,000
[box] The name of the fund out of which you are
exchanging and the name of the fund into
which you are exchanging
[box] The class of shares you are exchanging
[box] The dollar amount or number of shares you
are exchanging
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9
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Selling shares
Normally, your investment firm will send your request to sell shares to the
fund's transfer agent. Consult your investment professional for more
information. The fund has authorized the distributor to act as its agent in the
repurchase of fund shares from qualified investment firms. The fund reserves
the right to terminate this procedure at any time.
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You can sell some or all of your fund shares by writing directly to the fund
only if your account is registered in your name. Include in your request your
name, the fund's name, your fund account number, the class of shares to be
sold, the dollar amount or number of shares to be sold and any other applicable
requirements as described below. The transfer agent will send the sale proceeds
to your address of record unless you provide other instructions. Your request
must be signed by all registered owners and be in good order.
The transfer agent will not process your request until it is received in good
order. You may not sell more than $100,000 per account per day by fax.
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You may sell up to $100,000 per account per day. You may sell fund shares held
in a retirement plan account by phone only if your account is an IRA. You may
not sell your shares by phone if you have changed your address (for checks) or
your bank information (for wires and transfers) in the last 30 days.
You may receive your sale proceeds:
[box] By check, provided the check is made payable exactly as your account is
registered
[box] By bank wire or by electronic funds transfer, provided the sale proceeds
are being sent to your bank address of record
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How to contact us
By phone [phone graphic]
For information or to request a telephone transaction between 8:00 a.m. and 9:00
p.m. (Eastern time) by speaking with a shareholder services representative call
1-800-225-6292
To use FactFone(SM) call
1-800-225-4321
Telecommunications Device for the Deaf (TDD)
1-800-225-1997
By mail [graphic of envelope]
Send your written instructions to:
Pioneering Services Corporation
P.O. Box 9014
Boston, Massachusetts 02205-9014
By fax [graphic of fax]
Fax your exchange and sale requests to:
1-800-225-4240
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The fund and the distributor reserve the right to refuse any exchange request or
restrict, at any time without notice, the number and/or frequency of exchanges
to prevent abuses of the exchange privilege. Abuses include frequent trading in
response to short-term market fluctuations and a pattern of trading that appears
to be an attempt to "time the market." In addition, the fund and the distributor
reserve the right, at any time without notice, to charge a fee for exchanges or
to modify, limit, or suspend the exchange privilege. The fund will provide 60
days notice of material amendments to or termination of the privilege.
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Fund shares exchanged for shares of another Pioneer mutual fund may not be
exchanged back to Pioneer Independence Fund.
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10
<PAGE>
Buying, exchanging and selling shares directly owned
Account options
These options are available only if you hold fund shares directly.
Otherwise, please consult the accompanying Pioneer Independence Plans
prospectus.
Automatic exchanges
You can automatically exchange your fund shares for Class A shares of another
Pioneer mutual fund. The automatic exchange will begin on the day you
select when you complete the appropriate section of your account application or
an account options form. In order to use automatic exchange:
[box] You must select exchanges on a monthly or quarterly basis
[box] Both the originating and receiving accounts must have identical
registrations
[box] The originating account has a minimum balance of $5,000
Distribution options
The fund offers three distribution options. Any fund shares you buy by
reinvesting distributions will be priced at the applicable net asset value per
share.
(1) Unless you indicate another option on your account application, any
dividends and capital gain distributions paid to you by the fund will
automatically be invested in additional fund shares.
(2) You may elect to have the amount of any dividends paid to you in cash and
any capital gain distributions reinvested in additional shares.
(3) You may elect to have the full amount of any dividends and/or capital gain
distributions paid to you in cash.
Options (2) or (3) are not available to retirement plan accounts or accounts
with a current value of less than $500.
If your distribution check is returned to the transfer agent or you do not cash
the check for six months or more, the transfer agent may reinvest the amount of
the check in your account and automatically change the distribution option on
your account to option (1) until you request a different option in writing.
These additional shares will be purchased at the then current net asset value.
11
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Directed dividends
You can invest the dividends paid by one of your Pioneer mutual fund accounts
in a second Pioneer mutual fund account. The value of your second account must
be at least $1,000 ($500 for Pioneer Fund or Pioneer II). You may direct the
investment of any amount of dividends. There are no fees or charges for
directed dividends. If you have a retirement plan account, you may only direct
dividends to accounts with identical registrations.
Systematic withdrawal plans
When you establish a systematic withdrawal plan for your account, the transfer
agent will sell the number of fund shares you specify on a periodic basis and
the proceeds will be paid to you or to any person you select. You must obtain a
signature guarantee to direct payments to another person after you have
established your systematic withdrawal plan. Payments can be made either by
check or by electronic transfer to a bank account you designate.
To establish a systematic withdrawal plan:
[box] Your account must have a total value of at least $10,000 when you
establish your plan
[box] You must request a periodic withdrawal of at least $50
Systematic sales of fund shares may be taxable transactions for you.
Direct deposit
If you elect to take dividends or dividends and capital gain distributions in
cash, or if you establish a systematic withdrawal plan, you may choose to have
those cash payments deposited directly into your savings, checking or NOW bank
account.
Voluntary tax withholding
You may have the transfer agent withhold 28% of the dividends and capital gain
distributions paid from your fund account (before any reinvestment) and forward
the amount withheld to the Internal Revenue Service as a credit against your
federal income taxes. Voluntary tax withholding is not available for retirement
plan accounts or for accounts subject to backup withholding.
12
<PAGE>
Buying, exchanging and selling shares directly owned
Shareowner services
These options are available only if you hold fund shares directly. Otherwise,
please consult the accompanying Pioneer Independence Plans prospectus.
FactFone(SM) 1-800-225-4321
You can use FactFone(SM) to:
[box] Obtain current information on your Pioneer mutual fund accounts
[box] Inquire about the prices and yields of all publicly available Pioneer
mutual funds
[box] Make computer-assisted telephone purchases, exchanges and redemptions for
your fund accounts
[box] Request account statements
If you plan to use FactFone(SM) to make telephone purchases and redemptions,
first you must activate your personal identification number and establish your
bank account of record. If your account is registered in the name of a
broker-dealer or other third party, you may not be able to use FactFone(SM).
Confirmation statements
The transfer agent maintains an account for each investment firm or individual
shareowner and records all account transactions. You will be sent confirmation
statements showing the details of your transactions as they occur, except
automatic investment plan transactions, which are confirmed quarterly. If you
have more than one Pioneer mutual fund account registered in your name, the
Pioneer combined account statement will be mailed to you each quarter.
Tax information
In January of each year, the fund will mail you information about the tax
status of the dividends and distributions paid to
you by the fund.
Pioneer website
www.pioneerfunds.com
The website includes a full selection of information on mutual fund investing.
You can also use the website to get:
[box] Your current account information
[box] Prices, returns and yields of all publicly available Pioneer mutual funds
[box] Prospectuses for all the Pioneer funds
TDD 1-800-225-1997
If you have a hearing disability and access to TDD keyboard equipment, you can
contact our telephone representatives with questions about your account by
calling our TDD number between 8:30 a.m. and 5:30 p.m. Eastern time any weekday
that the New York Stock Exchange is open.
13
<PAGE>
Shareowner account policies
These policies apply only if you hold fund shares directly. Otherwise, please
consult the accompanying Pioneer Indepenence Plans prospectus.
Signature guarantees and other requirements
You are required to obtain a signature guarantee when you are:
[box] Requesting certain types of exchanges or sales of fund shares
[box] Redeeming shares for which you hold a share certificate
[box] Requesting certain types of changes for your existing account
You can obtain a signature guarantee from most broker-dealers, banks, credit
unions (if authorized under state law) and federal savings and loan
associations. You cannot obtain a signature guarantee from a notary public.
Fiduciaries and corporations are required to submit additional documents to
sell fund shares.
Minimum account size
The fund requires that you maintain a minimum account value of $500. If you
hold less than the minimum in your account because you have sold or exchanged
some of your shares, the fund will notify you of its intent to sell your shares
and close your account. You may avoid this by increasing the value of your
account to at least the minimum within six months of the notice from the fund.
Telephone access
You may have difficulty contacting the fund by telephone during times of market
volatility or disruption in telephone service. If you are unable to reach the
fund by telephone, you should communicate with the fund in writing.
Share certificates
Normally, your shares will remain on deposit with the transfer agent and
certificates will not be issued. If you are legally required to obtain a
certificate, you may request one for your shares. A fee may be charged for this
service.
Other policies
The fund may suspend transactions in shares when trading on the New York Stock
Exchange is closed or restricted, when an emergency exists that makes it
impracticable for the fund to sell or value its portfolio securities or with
the permission of the Securities and Exchange Commission.
The fund or the distributor may revise, suspend or terminate the account
options and services available to shareowners at any time.
The fund reserves the right to redeem in kind by delivering portfolio securities
to a redeeming shareowner, provided that the fund must pay redemptions in cash
if a shareowner's aggregate redemptions in a 90 day period are less than
$250,000 or 1% of the fund's net assets.
14
<PAGE>
Dividends, capital gains and taxes
Dividends and capital gains
The fund generally pays distributions of net long-term capital gains in
November. The fund generally pays dividends from any net investment income or
distributions of net short-term capital gains in December. The fund may also
pay dividends and distributions at other times if necessary for the fund to
avoid federal income or excise tax. If you invest in the fund close to the time
that the fund makes a capital gains distribution, generally you will pay a
higher price per share and you will pay taxes on the amount of the capital
gains distribution whether you reinvest the distribution or receive it as cash.
Taxes
For federal income tax purposes, your distributions from the fund's net
long-term capital gains are considered long-term capital gains and may be
taxable to you at different maximum rates depending upon their source and other
factors. Dividends and short-term capital gain distributions are taxable as
ordinary income. Dividends and distributions are taxable, whether you take
payment in cash or reinvest them to buy additional fund shares. You may also
have tax consequences (generally, a capital gain or loss) when you sell or
exchange fund shares. Each year the fund will mail to you information about
your dividends and distributions for, and the shares you sold in, the previous
calendar year.
You must provide your social security number or other taxpayer identification
number to the fund along with the certifications required by the Internal
Revenue Service when you open an account. If you do not or if it is otherwise
legally required to do so, the fund will withhold 31% "backup withholding" tax
from your dividends and distributions, sales proceeds and any other payments to
you.
You should ask your own tax adviser about any federal or state tax
considerations, including possible additional withholding taxes for non-U.S.
shareholders. You may also consult the fund's statement of additional
information for a more detailed discussion of federal income tax considerations
that may affect the fund and its shareowners.
[callout box]
[graphic of pillar]
Sales and exchanges may be taxable
transactions to shareowners.
[end callout]
15
<PAGE>
Financial highlights
The financial highlights table helps you understand
the fund's financial performance since inception.
Certain information reflects financial results for a single fund share. The
total returns in the table represent the rate that you would have earned on an
investment in the fund (assuming reinvestment of all dividends and
distributions).
This information has been audited by Arthur Andersen LLP, whose report is
included in the fund's annual report along with the fund's financial
statements. The annual report is available upon request.
<TABLE>
<CAPTION>
Pioneer Independence Fund
March 16, 1998 to
December 31, 1998
(a)
------------------
<S> <C>
Net asset value, beginning of period $ 10.00
-------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01)
Net realized and unrealized gain (loss) on investments (0.27)
-------
Net increase (decrease) from investment operations $ (0.28)
Distributions to shareholders:
Net investment income (0.09)
-------
Net decrease in net asset value $ (0.37)
-------
Net asset value, end of period $ 9.63
=======
Total return* (2.78)%
Ratios/Supplemental Data
Ratio of net expenses to average net assets 1.68%**+
Ratio of net investment income (loss) to average net assets (0.30)%**+
Portfolio turnover rate 118%**
Net assets, end of period (in thousands) $ 3,335
Ratios assuming no waiver of management fees and assumption of
expenses by Pioneer and no reduction for fees paid indirectly:
Net expenses 17.26%**
Net investment income (loss) (15.88)%**
Ratios assuming waiver of management fees and assumption of
expenses by Pioneer and reduction for fees paid indirectly:
Net expenses 1.50%**
Net investment income (loss) (0.12)%**
- --------------------------------------------------------------------------------
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of the period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
</TABLE>
18
<PAGE>
Pioneer
Independence Fund
You can obtain more free information about the fund from your investment firm
or by writing to Pioneering Services Corporation, 60 State Street, Boston,
Massachusetts 02109. You may also call 1-800-225-6292.
Shareowner reports
Annual and semiannual reports to shareowners provide information about the
fund's investments. The annual report discusses market conditions and
investment strategies that significantly affected the fund's performance during
its last fiscal year.
Statement of additional information
The statement of additional information provides more detailed information
about the fund. It is incorporated by reference into this prospectus.
Visit our website
www.pioneerfunds.com
You can also review the fund's shareowner reports, prospectus and statement of
additional information at the Securities and Exchange Commission's Public
Reference Room in Washington, D.C. or by calling 1-800-SEC-0330 to request a
copy. The Commission charges a fee for this service. You can get the same
information free from the Commission's Internet website (http://www.sec.gov).
(Investment Company Act file no. 811-08547)
[Pioneer logo] Pioneer Funds Distributor, Inc.
60 State Street
Boston, MA 02109
www.pioneerfunds.com 0499-6252
(c) Pioneer Funds Distributor, Inc.
