September 22, 1999
SUPPLEMENT TO THE PROSPECTUS OF
PIONEER STRATEGIC INCOME FUND
DATED APRIL 15, 1999
The following information supplements the corresponding section in the
prospectus. Please consult the prospectus for the full text of the revised
section.
BASIC INFORMATION ABOUT THE FUND
INVESTMENT STRATEGIES Normally, the fund invests at least 80% of its total
assets in debt securities. The fund has the flexibility to invest in a broad
range of issuers and segments of the debt securities market. Pioneer, the fund's
investment adviser, allocates the fund's investments among the following three
segments of the debt markets:
o Below investment grade (high yield) securities of U.S. and non-U.S. issuers
o Investment grade securities of U.S. issuers
o Investment grade securities of non-U.S. issuers
Pioneer's allocation among these segments of the debt markets depends upon its
outlook for economic, interest rate and political trends.
The fund invests primarily in:
o Debt securities issued or guaranteed by the U.S. government, its agencies
or instrumentalities or non-U.S governmental entities
o Debt securities of U.S. and non-U.S. corporate issuers
o Mortgage-backed and asset-backed securities
The fund's investments may have all types of interest rate payment and reset
terms, including fixed rate, adjustable rate, zero coupon, contingent, deferred,
payment in kind and auction rate features. The fund invests in securities with a
broad range of maturities.
Depending upon Pioneer's allocation among market segments, up to 70% of the
fund's total assets may be in debt securities rated below investment grade at
the time of purchase or determined to be of equivalent quality by Pioneer. Up to
20% of the fund's total assets (at the time of purchase) may be invested in debt
securities rated below CCC by Standard & Poor's Rating Group or the equivalent
by another nationally recognized 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 rated debt securities.
Depending upon Pioneer's allocation among market segments, up to 85% of the
fund's total assets may be in debt securities of non-U.S. corporate and
governmental issuers, including debt securities of corporate and governmental
issuers in emerging markets. Non-U.S. investments include securities issued by
non-U.S. governments, banks or corporations and certain supranational
organizations, such as the World Bank and the European Union.
Pioneer considers both broad economic factors and issuer specific factors in
selecting a portfolio designed to achieve the fund's investment objective. In
assessing the appropriate maturity, rating, sector and country weighting of the
fund's portfolio, Pioneer considers a variety of factors that are expected to
influence economic activity and interest rates. These factors include
fundamental economic indicators, such as the rates of economic growth and
inflation, Federal Reserve monetary policy and the relative value of the U.S.
dollar compared to other currencies. Once Pioneer determines the preferable
portfolio characteristics, Pioneer selects individual securities based upon the
terms of the securities (such as yields compared to U.S. Treasuries or
comparable issues), liquidity and rating, sector and issuer diversification.
Pioneer also employs fundamental research and due diligence to assess an
issuer's credit quality, taking into account financial condition and
profitability, future capital needs, potential for change in rating, industry
outlook, the competitive environment and management ability. In making these
portfolio decisions, Pioneer relies on the knowledge, experience and judgment of
its own staff who have access to a wide variety of research.
0999-7121
(C)Pioneer Funds Distributor, Inc.
