<PAGE>
[logo]
Pioneer High Yield
Fund
SEMIANNUAL REPORT 4/30/00
<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 7
Schedule of Investments 10
Financial Statements 14
Notes to Financial Statements 22
Trustees, Officers and Service Providers 27
Retirement Plans from Pioneer 28
</TABLE>
<PAGE>
Pioneer High Yield Fund
LETTER FROM THE CHAIRMAN 4/30/00
Dear Shareowner,
--------------------------------------------------------------------------------
As you may know, on May 15, 2000 The Pioneer Group, Inc. and UniCredito Italiano
Group announced an agreement under which UniCredito is expected to purchase all
of the outstanding stock of Pioneer Group. UniCredito is Italy's second largest
banking group and has over $150 billion in assets. 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 Manager Discussion
with Margaret Patel. 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 High Yield Fund
PORTFOLIO SUMMARY 4/30/00
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[pie chart]
Convertible Corporate Bonds 55%
Corporate Bonds 42%
Short-Term Cash Equivalents 2%
Convertible Preferred Stock 1%
Portfolio Maturity
--------------------------------------------------------------------------------
(Effective life as a percentage of total investment portfolio)
[pie chart]
0-1 Years 0.2%
1-3 Years 16.3%
3-4 Years 32.6%
4-6 Years 46.5%
6-8 Years 4.4%
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of total investments in securities)
<TABLE>
<S> <C> <C>
1. Quantum Corp., 7.0%, 8/1/04 5.97%
2. Cirrus Logic Inc., 6.0%, 12/15/03 5.58
3. NCI Building Systems, Inc., 9.25%, 5/1/09 5.22
4. Lear Corp., 7.96%, 5/15/05 4.91
5. Getty Images Inc., 5.0%, 3/15/07 (144A) 4.84
6. MascoTech Inc., 4.5%, 12/15/03 4.68
7. Parker Drilling Co., 5.5%, 8/1/04 4.62
8. Waste Management, Inc., 4.0%, 2/1/02 4.60
9. SBA Communications Corp., 12.0%, 3/1/08 4.54
10. Fisher Scientific International Corp., 9.0%, 2/1/08 4.49
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer High Yield Fund
PERFORMANCE UPDATE 4/30/00 CLASS A SHARES
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 4/30/00 10/31/99
<S> <C> <C>
$10.91 $9.65
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(10/31/99 - 4/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.484 $0.066 $0.085
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer High Yield Fund at public offering price, compared to the growth of the
Merrill Lynch High Yield Master Index.
Average Annual Total Returns
(As of April 30, 2000)
<TABLE>
<CAPTION>
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life of Fund
(2/12/98) 11.75% 9.45%
1 Year 27.20 21.52
</TABLE>
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
Growth of $10,000+
[mountain chart]
<TABLE>
<CAPTION>
Merrill Lynch High Yield
Pioneer High Yield Fund* Master Index
<S> <C> <C>
2/98 9550 10000
4/98 9830 10134
9379 10314
8260 9726
9495 10273
4/99 9489 10443
10142 10366
10069 10162
11489 10281
4/00 12070 10149
</TABLE>
[End Mountain Chart]
+ Index comparison begins 2/28/98. The Merrill Lynch High Yield Master Index is
a broad-based measure of the performance of the non-investment grade U.S.
domestic bond market. The index currently captures close to $200 billion of
the outstanding debt of domestic market issuers rated below investment grade
but not in default. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
3
<PAGE>
Pioneer High Yield Fund
PERFORMANCE UPDATE 4/30/00 CLASS B SHARES
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 4/30/00 2/25/00
<S> <C> <C>
$10.94 $11.34
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(2/25/00 - 4/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.172 - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer High Yield Fund, compared to the growth of the Merrill Lynch High Yield
Master Index.
Average Annual Total Returns+
(As of April 30, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life of Fund
(2/12/98) 11.03% 9.83%
1 Year 26.57 22.57
</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.
Growth of $10,000++
[mountain chart]
<TABLE>
<CAPTION>
Merrill Lynch High Yield
Pioneer High Yield Fund* Master Index
<S> <C> <C>
2/98 10000 10000
4/98 10287 10134
9787 10314
8602 9726
9872 10273
4/99 9848 10443
10507 10366
10412 10162
11860 10281
4/00 12164 10149
</TABLE>
[End Mountain Chart]
+ The performance of each class of the fund from February 12, 1998 to February
25, 2000 is the performance of Third Avenue High Yield Fund's single class
which has been restated to reflect any applicable sales charges and Rule
12b-1 fees (but not other differences in expenses). This adjustment has the
effect of reducing the previously reported performance of Third Avenue High
Yield Fund.
++ Index comparison begins 2/28/98. The Merrill Lynch High Yield Master Index is
a broad-based measure of the performance of the non-investment grade U.S.
domestic bond market. The index currently captures close to $200 billion of
the outstanding debt of domestic market issuers rated below investment grade
but not in default. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
4
<PAGE>
Pioneer High Yield Fund
PERFORMANCE UPDATE 4/30/00 CLASS C SHARES
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 4/30/00 2/25/00
<S> <C> <C>
$11.08 $11.34
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(2/25/00 - 4/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.172 - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer High Yield Fund, compared to the growth of the Merrill Lynch High Yield
Master Index.
Average Annual Total Returns+
(As of April 30, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life of Fund
(2/12/98) 11.67% 11.67%
1 Year 28.18 28.18
</TABLE>
* Assumes reinvestment of distributions. A 1% contingent deferred sales charge
(CDSC) applies to redemptions made within one year of purchase.
Growth of $10,000++
[mountain chart]
<TABLE>
<CAPTION>
Merrill Lynch High Yield
Pioneer High Yield Fund* Master Index
<S> <C> <C>
2/98 10000 10000
4/98 10287 10134
9787 10314
8602 9726
9872 10273
4/99 9848 10443
10507 10366
10412 10162
11860 10281
4/00 12623 10149
</TABLE>
[End Mountain Chart]
+ The performance of each class of the fund from February 12, 1998 to February
25, 2000 is the performance of Third Avenue High Yield Fund's single class
which has been restated to reflect any applicable sales charges and Rule
12b-1 fees (but not other differences in expenses). This adjustment has the
effect of reducing the previously reported performance of Third Avenue High
Yield Fund.
++ Index comparison begins 2/28/98. The Merrill Lynch High Yield Master Index is
a broad-based measure of the performance of the non-investment grade U.S.
domestic bond market. The index currently captures close to $200 billion of
the outstanding debt of domestic market issuers rated below investment grade
but not in default. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
5
<PAGE>
Pioneer High Yield Fund
PERFORMANCE UPDATE 4/30/00 CLASS Y SHARES
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 4/30/00 2/25/00
<S> <C> <C>
$10.89 $11.34
</TABLE>
<TABLE>
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(2/25/00 - 4/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.181 - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer High Yield Fund, compared to the growth of the Merrill Lynch High Yield
Master Index.
Average Annual Total Returns+
(As of April 30, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed
<S> <C> <C>
Life of Fund
(2/12/98) 11.83% 11.83%
1 Year 27.07 27.07
</TABLE>
* Assumes reinvestment of distributions.
Growth of $10,000++
[mountain chart]
<TABLE>
<CAPTION>
Merrill Lynch High Yield
Pioneer High Yield Fund* Master Index
<S> <C> <C>
2/98 10000 10000
4/98 10307 10134
9834 10314
8665 9726
9967 10273
4/99 9967 10443
10660 10366
10589 10162
12089 10281
4/00 12665 10149
</TABLE>
[End Mountain Chart]
+ The performance of each class of the fund from February 12, 1998 to February
25, 2000 is the performance of Third Avenue High Yield Fund's single class
which has been restated to reflect any applicable sales charges and Rule
12b-1 fees (but not other differences in expenses). This adjustment has the
effect of reducing the previously reported performance of Third Avenue High
Yield Fund.
++ Index comparison begins 2/28/98. The Merrill Lynch High Yield Master Index is
a broad-based measure of the performance of the non-investment grade U.S.
domestic bond market. The index currently captures close to $200 billion of
the outstanding debt of domestic market issuers rated below investment grade
but not in default. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
6
<PAGE>
Pioneer High Yield Fund
PORTFOLIO MANAGEMENT DISCUSSION 4/30/00
During the six months ended April 30, 2000, portfolio manager Margaret Patel
steered Pioneer High Yield Fund to a 19% return during a very difficult period.
In the following discussion, Ms. Patel discusses why the high yield market
struggled, and how she was able to post such strong numbers.
Q: In a challenging environment for high yield debt, how did the Fund perform?
A: The Fund's positioning was a key element in its very strong return relative
to its peers. The six-month total return for the Fund's Class A shares was
19.87%, at net asset value. Inception returns for Class B shares and Class C
shares were -2.03% and -0.79%, respectively, at net asset value. The average
return for the same period of the 370 funds in Lipper, Inc.'s high current
yield category was 1.03%. (Lipper is an independent firm that tracks mutual
fund performance.)
Q: Why did the Fund perform so well?
A: Primarily because of its focus on deeply discounted convertible,
non-investment grade bonds, whose prices increased substantially as the
value of the equity securities into which they are convertible increased
with the general equities market. Meanwhile, we underweighted our stake in
high yield issues which had produced relatively flat performance in the past
six months, although these bonds still comprised between 25 and 43% of total
assets. In addition, the Fund also benefited from industry and security
selection, and the fact that none of its holdings went into default.
Q: What factors contributed to the difficulties in the high yield market?
A: High yield bonds were plagued by a number of issues, many of which have held
the asset class back since 1998. Below average performance since that time
encouraged investors to turn more of their focus to equities. As a result,
the average high yield fund has experienced net redemptions; this trend has
had a corresponding negative effect on the high yield market. In addition,
concerns over credit quality hit the market. Defaults by high yield issuers
were on the rise, increasing from a low of 1.66% in 1996 to 5.64% at the
7
<PAGE>
Pioneer High Yield Fund
PORTFOLIO MANAGEMENT DISCUSSION 4/30/00 (continued)
end of March 2000. This increase was slightly above the long-term average,
3.53%. (All default information provided by Moody's Investor Services)
Q: You mentioned that industry selection helped the Fund's performance. Which
industries did you focus on?
A: Among the industries we favored were semiconductors and semiconductor
capital equipment, both of which benefited from increased demand due to the
health of the global economy. Our energy and energy service securities also
did well as a result of the strength of higher oil prices and increased
exploration, discovery and drilling activity. Computer software and
peripherals proved to be fruitful, benefiting from the enormous demand for
Internet-related applications and storage. The Fund's holdings in the
telecommunications tower industry were also strong contributors, as were its
real estate and construction investments.
Q: Which investments performed particularly well? Were there any
disappointments?
A: Cirrus Logic, a semiconductor firm that manufactures storage chips did well.
American Tower and SBA Communications were two tower companies that provided
strong performance. Pogo Producing, Key Energy, and Parker Drilling on the
energy and energy service side helped boost Fund performance. In real estate
and construction, NCI Building Systems fared well. Quantum was a top
performer among our computer peripherals investments.
On the down side, BF Saul Centers, a real estate investment trust, declined,
reflecting the general trend of lower prices for high yield bonds and the
relative under-performance of the real estate sector. In addition, any
holdings related to the old economy did not share in the same kind of price
appreciation as investments associated with the new economy. For example,
MascoTech, which services the auto industry and general industrial markets,
suffered price declines due to softness in its market sector and lack of
investor interest.
8
<PAGE>
Pioneer High Yield Fund
Q: Since this is the first report for Pioneer High Yield Fund, what can you
tell us about your investment approach?
A: We emphasize high yield securities, with a focus on achieving a high total
return - that is, income plus capital appreciation - rather than just on
high current income. We use a fundamental value approach, looking for
companies or sectors that are unappreciated and trading at prices below what
we think they're fundamentally worth. We concentrate on looking for
companies that have public equity outstanding, are leaders in an industry
with high barriers to entry, and are critically important to their
customers. We prefer to invest in companies that have positive cash flows.
If they don't, we make sure that they have enough funding to carry them over
until they achieve positive cash flow. We also focus on industries that are
growing faster than the economy, or cyclical industries and companies on the
upswing that offer product differentiation.
Q: What is your outlook?
A: We expect the high yield market to tread water in the summer. After that, we
believe the backdrop for the high yield market will be favorable for several
reasons. First, the economy is strong. Second, it looks as if the Federal
Reserve will complete the latest round of interest rate increases by late
summer, well before election season. Typically, the Fed prefers to stand on
the sidelines during presidential elections, so that its policy does not
become a deciding factor. Third, the high yield market has historically done
very well in an election year. Finally, with yields on junk bonds so high,
the income they provide should outweigh any further price declines. One
concern is that the Fed might act too aggressively and cause some problems
for the economy. As always, investors should bear in mind that below
investment-grade bonds may be more volatile and less liquid than more highly
rated bonds.
9
<PAGE>
Pioneer High Yield Fund
SCHEDULE OF INVESTMENTS 4/30/00 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 97.6%
CONVERTIBLE PREFERRED STOCK - 0.6%
Technology - 0.6%
Electronics (Defense) - 0.6%
3,000 Titan Cap Trust, 5.75%, 2/15/05 (144A) $ 154,188
----------
Total Convertible Preferred Stock
(Cost $150,000) $ 154,188
----------
Principal
Amount CONVERTIBLE CORPORATE BONDS - 54.9%
Capital Goods - 6.6%
Electrical Equipment - 2.1%
$ 250,000 Benchmark Electrical, 6.0%, 8/15/06 (144A) $ 280,483
400,000 Itron Inc., 6.75%, 3/31/04 240,000
----------
$ 520,483
----------
Waste Management - 4.5%
1,250,000 Waste Management, Inc., 4.0%, 2/1/02 $1,115,850
----------
Total Capital Goods $1,636,333
----------
Consumer Cyclicals - 9.3%
Auto Parts & Equipment - 4.6%
1,545,000 MascoTech Inc., 4.5%, 12/15/03 $1,135,575
----------
Services (Advertising/Marketing) - 4.7%
1,625,000 Getty Images Inc., 5.0%, 3/15/07 (144A) $1,173,087
----------
Total Consumer Cyclicals $2,308,662
----------
Energy - 8.9%
Oil & Gas (Drilling & Equipment) - 7.6%
1,020,000 Key Energy Group, 5.0%, 9/15/04 $ 764,470
1,525,000 Parker Drilling Co., 5.0%, 8/1/04 1,120,875
----------
$1,885,345
----------
Oil & Gas (Production/Exploration) - 1.3%
400,000 Pogo Producing Co., 5.5%, 6/15/06 $ 335,616
----------
Total Energy $2,220,961
----------
Healthcare - 4.9%
Biotechnology - 3.5%
300,000 Cor Therapeutics, Inc., 5.0%, 3/1/07 (144A) $ 377,340
700,000 CV Therapeutics, Inc., 4.75%, 3/7/07 (144A) 483,329
----------
$ 860,669
----------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer High Yield Fund
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Healthcare (Medical Products/Supplies) - 1.4%
$ 400,000 Inhale Therapeutics Systems, 5.0%, 2/8/07
(144A) $ 352,664
-----------
Total Healthcare $ 1,213,333
-----------
Technology - 25.2%
Communications Equipment - 2.5%
150,000 American Tower Corp., 6.25%, 10/15/09 (144A) $ 293,523
500,000 P-Com Inc., 4.25%, 11/1/02 330,000
-----------
$ 623,523
-----------
Computers (Hardware) - 1.0%
1,160,000 Western Digital Corp., 0.0%, 2/18/18 $ 248,484
-----------
Computers (Networking) - 6.0%
1,500,000 At Home Corp., 4.75%, 12/15/06 (144A) $ 1,033,605
750,000 Digital Island Inc., 6.0%, 2/15/05 465,720
-----------
$ 1,499,325
-----------
Computers (Peripherals) - 5.8%
1,850,000 Quantum Corp., 7.0%, 8/1/04 $ 1,447,625
-----------
Computers (Software & Services) - 2.6%
1,750,000 Network Associates Inc., 0.0%, 2/13/18 $ 634,882
-----------
Electronics (Semiconductors) - 7.3%
1,550,000 Cirrus Logic Inc., 6.0%, 12/15/03 $ 1,354,793
300,000 General Semiconductor Inc., 5.75%,
12/15/06 (144A) 412,554
114,000 Intevac Inc., 6.5%, 3/1/04 45,600
-----------
$ 1,812,947
-----------
Total Technology $ 6,266,786
-----------
Total Convertible Corporate Bonds
(Cost $14,301,230) $13,646,075
-----------
CORPORATE BONDS - 42.1%
Capital Goods - 5.9%
Electrical Equipment - 1.9%
465,000 Hadco Corp., 9.5%, 6/15/08 $ 465,000
-----------
Waste Management - 4.0%
985,000 Azurix Corp., 10.75%, 2/15/10 (144A) $ 982,537
-----------
Total Capital Goods $ 1,447,537
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer High Yield Fund
SCHEDULE OF INVESTMENTS 4/30/00 (unaudited) (continued)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Consumer Services - 4.4%
Telecommunications (Long Distance) - 4.4%
$ 1,595,000 SBA Communications Corp., 12.0%, 3/1/08 $1,100,550
----------
Total Consumer Services $1,100,550
----------
Consumer Cyclicals - 9.9%
Auto Parts & Equipment - 4.8%
1,300,000 Lear Corp., 7.96%, 5/15/05 $1,191,606
----------
Building Materials - 5.1%
1,385,000 NCI Building Systems, Inc., 9.25%, 5/1/09 $1,267,275
----------
Total Consumer Cyclicals $2,458,881
----------
Consumer Staples - 8.8%
Distributors (Food & Health) - 7.6%
1,185,000 Fisher Scientific International Corp., 9.0%, 2/1/08 $1,090,200
890,000 Wesco Distribution Inc., 9.125%, 6/1/08 805,450
----------
$1,895,650
----------
Household Products - 1.2%
300,000 Playtex Family Products Corp., 9.0%, 12/15/03 $ 292,500
----------
Total Consumer Staples 2,188,150
----------
Financial - 3.9%
Financial (Diversified) - 3.9%
1,120,000 BF Saul Real Estate Investment Trust,
9.75%, 4/1/08 $ 974,400
----------
Total Financial $ 974,400
----------
Healthcare - 4.0%
Healthcare (Medical Products/Supplies) - 4.0%
970,000 Bio-Rad Labs, Inc., 11.625%, 2/15/07 (144A) $ 994,250
----------
Total Healthcare $ 994,250
----------
Technology - 5.2%
Communications Equipment - 1.2%
340,000 L-3 Communications Holding Corp., 8.5%, 5/15/08 $ 306,000
----------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer High Yield Fund
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Electronics (Semiconductors) - 4.0%
$ 1,000,000 Fairchild Semiconductor, 10.375%, 10/1/07 $ 990,000
-----------
Total Technology $ 1,296,000
-----------
Total Corporate Bonds
(Cost $10,603,309) $10,459,768
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $25,054,539) $24,260,031
-----------
TEMPORARY CASH INVESTMENT - 2.4%
Repurchase Agreement - 2.4%
600,000 Chase Manhattan Credit Corp., 5.6%, 5/1/00,
repurchase price of $600,000 plus accrued
interest on 5/1/00, collateralized by $625,000
U.S. Treasury Bills, 5.8%, 9/7/00 $ 600,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $600,000) $ 600,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $25,654,539) (a) $24,860,031
===========
</TABLE>
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At April 30, 2000, the
value of these securities amounted to $6,537,560 or 26.6% of total net
assets.
(a) At April 30, 2000, the net unrealized loss on investments, based on cost
for federal income tax purposes of $25,654,539, was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 532,964
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (1,327,472)
----------
Net unrealized loss $ (794,508)
==========
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 2000 aggregated $22,733,760 and $6,626,419,
respectively.
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer High Yield Fund
BALANCE SHEET 4/30/00 (unaudited)
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash
investment of $600,000) (cost $25,654,539) $24,860,031
Cash 361,829
Receivables -
Investment securities sold 117,675
Fund shares sold 694,395
Dividends and interest 506,754
Organizational costs - net 8,908
Other 12,552
-----------
Total assets $26,562,144
-----------
LIABILITIES:
Payables -
Investment securities purchased $ 1,834,784
Fund shares repurchased 89,431
Dividends 30,272
Due to affiliates 19,881
Accrued expenses 35,902
-----------
Total liabilities $ 2,010,270
-----------
NET ASSETS:
Paid-in capital $24,847,434
Accumulated distributions in excess of net investment
income (10,969)
Accumulated net realized gain on investments 509,917
Net unrealized loss on investments (794,508)
-----------
Total net assets $24,551,874
===========
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $18,494,665/1,695,658 shares) $ 10.91
===========
Class B (based on $4,239,678/387,382 shares) $ 10.94
===========
Class C (based on $1,721,492/155,307 shares) $ 11.08
===========
Class Y (based on $96,039/8,815 shares) $ 10.89
===========
MAXIMUM OFFERING PRICE:
Class A $ 11.42
===========
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer High Yield Fund
STATEMENT OF OPERATIONS (unaudited)
For the Six Months Ended 4/30/00
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 8,000
Interest 594,982
--------
Total investment income $ 602,982
----------
EXPENSES:
Management fees $ 49,264
Transfer agent fees
Class A 13,893
Class B 280
Class C 171
Class Y 4
Distribution fees
Class A 6,894
Class B 3,474
Class C 1,788
Administrative fees 39,312
Custodian fees 5,780
Registration fees 18,857
Organizational costs 961
Professional fees 14,540
Printing 6,636
Fees and expenses of nonaffiliated trustees 32,650
Miscellaneous 2,513
--------
Total expenses $ 197,017
Less management fees waived
by Pioneer Investment Management, Inc. (107,911)
Less fees paid indirectly (5,965)
----------
Net expenses $ 83,141
----------
Net investment income $ 519,841
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 509,954
Change in net unrealized loss on investments 293,098
----------
Net gain on investments $ 803,052
----------
Net increase in net assets resulting from operations $1,322,893
==========
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer High Yield Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended 4/30/00 and the Year Ended 10/31/99
<TABLE>
<CAPTION>
Six Months Ended
4/30/00 Year Ended
(unaudited) 10/31/99
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 519,841 $ 593,528
Net realized gain on investments 509,954 183,311
Change in net unrealized loss on investments 293,098 834,889
----------- -----------
Net increase in net assets resulting
from operations $ 1,322,893 $ 1,611,728
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.48 and $0.69 per share, respectively) $ (542,781) $ (592,389)
Class B ($0.17 and $0.00 per share, respectively) (30,573) -
Class C ($0.17 and $0.00 per share, respectively) (14,861) -
Class Y ($0.18 and $0.00 per share, respectively) (1,597) -
Net realized gain:
Class A ($0.15 and $0.00 per share, respectively) (132,723)
----------- -----------
Total distributions to shareholders $ (722,535) $ (592,389)
----------- -----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $22,543,900 $ 3,087,088
Reinvestment of distributions 630,653 529,189
Cost of shares repurchased (6,813,710) (4,736,179)
----------- -----------
Net increase (decrease) in net assets resulting
from fund share transactions $16,360,843 $(1,119,902)
----------- -----------
Net increase (decrease) in net assets $16,961,201 $ (100,563)
NET ASSETS:
Beginning of period 7,590,673 7,691,236
----------- -----------
End of period (including accumulated
undistributed/(distribution in excess of) net
investment income of $(10,969) and $59,002,
respectively) $24,551,874 $ 7,590,673
=========== ===========
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer High Yield Fund
<TABLE>
<CAPTION>
'00 Shares '00 Amount
CLASS A (unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
Shares sold 1,432,956 $15,796,964 326,545 $ 3,087,088
Reinvestment of distributions 56,000 603,480 56,746 529,189
Less shares repurchased (579,641) (6,250,669) (501,388) (4,736,179)
--------- ----------- -------- -----------
Net increase (decrease) 909,315 $10,149,775 (118,097) $(1,119,902)
========= =========== ======== ===========
CLASS B*
Shares sold 393,926 $ 4,409,394
Reinvestment of distributions 1,838 20,254
Less shares repurchased (8,382) (91,740)
--------- -----------
Net increase 387,382 $ 4,337,908
========= ===========
CLASS C*
Shares sold 198,814 $ 2,238,596
Reinvestment of distributions 622 6,919
Less shares repurchased (44,129) (471,301)
--------- -----------
Net increase 155,307 $ 1,774,214
========= ===========
CLASS Y*
Shares sold 8,815 $ 98,946
Reinvestment of distributions - -
Less shares repurchased - -
--------- -----------
Net increase 8,815 $ 98,946
========= ===========
</TABLE>
* Class B, Class C, and Class Y Shares were first publicly offered on February
28, 2000.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer High Yield Fund
FINANCIAL HIGHLIGHTS 4/30/00
<TABLE>
<CAPTION>
Six Months
Ended 2/12/98
4/30/00(a) Year Ended to
(unaudited) 10/31/99 10/31/98
<S> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 9.65 $ 8.50 $ 10.00
------- ------ -------
Increase (decrease) from investment operations:
Net investment income $ 0.40 $ 0.70 $ 0.34
Net realized and unrealized gain (loss)
on investments 1.49 1.14 (1.56)
------- ------ -------
Net increase (decrease) from
investment operations $ 1.89 $ 1.84 $ (1.22)
Distributions to shareholders:
Net investment income (0.48) (0.69) (0.28)
Net realized gain (0.15) - -
------- ------ -------
Net increase (decrease) in net asset value $ 1.26 $ 1.15 $ (1.50)
------- ------ -------
Net asset value, end of period $ 10.91 $ 9.65 $ 8.50
======= ====== =======
Total return* 19.87% 22.20% (12.39)%
Ratio of net expenses to average net assets 1.44%**+ 1.90% 1.90%**
Ratio of net investment income to average
net assets 8.23%**+ 7.13% 6.22%**
Portfolio turnover rate 106%** 64% 38%
Net assets, end of period (in thousands) $18,495 $7,591 $ 7,691
Ratios assuming no waiver of management
fees by PIM and no reduction for fees paid
indirectly:
Net expenses 3.23%** 3.67% 3.99%**
Net investment income 6.44%** 5.36% 4.13%**
Ratios assuming waiver of management fees
by PIM and reduction for fees paid
indirectly:
Net expenses 1.34%** 1.90% 1.90%**
Net investment income 8.33%** 7.13% 6.22%**
</TABLE>
(a) Pioneer Investment Management, Inc. assumed investment management of the
fund on February 25, 2000. Prior to that date, the Fund was advised by EQSF
Advisers, Inc.
* 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.
+ Ratio assuming no reduction for fees paid indirectly.
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer High Yield Fund
FINANCIAL HIGHLIGHTS 4/30/00
<TABLE>
<CAPTION>
2/25/00
to
4/30/00
(unaudited)
<S> <C>
CLASS B (a)
Net asset value, beginning of period $11.34
------
Increase (decrease) from investment operations:
Net investment income $ 0.17
Net realized and unrealized loss on investments (0.40)
------
Net decrease from investment operations $(0.23)
Distributions to shareholders:
Net investment income (0.17)
------
Net decrease in net asset value $(0.40)
------
Net asset value, end of period $10.94
======
Total return* (2.03)%
Ratio of net expenses to average net assets+ 1.34%**
Ratio of net investment income to average net assets+ 8.60%**
Portfolio turnover rate 106%**
Net assets, end of period (in thousands) $4,240
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 2.57%**
Net investment income 7.37%**
Ratios assuming waiver of management fees
by PIM and reduction for fees paid indirectly:
Net expenses 1.33%**
Net investment income 8.61%**
</TABLE>
(a) Class B Shares were first publicly offered on February 28, 2000.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer High Yield Fund
FINANCIAL HIGHLIGHTS 4/30/00
<TABLE>
<CAPTION>
2/25/00
to
4/30/00
(unaudited)
<S> <C>
CLASS C (a)
Net asset value, beginning of period $11.34
------
Increase (decrease) from investment operations:
Net investment income $ 0.17
Net realized and unrealized loss on investments (0.26)
------
Net decrease from investment operations $(0.09)
Distributions to shareholders:
Net investment income (0.17)
------
Net decrease in net asset value $(0.26)
------
Net asset value, end of period $11.08
======
Total return* (0.79)%
Ratio of net expenses to average net assets+ 1.27%**
Ratio of net investment income to average net assets+ 8.11%**
Portfolio turnover rate 106%**
Net assets, end of period (in thousands) $1,721
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 2.52%**
Net investment income 6.86%**
Ratios assuming waiver of management fees
by PIM and reduction for fees paid indirectly:
Net expenses 1.25%**
Net investment income 8.13%**
</TABLE>
(a) Class C Shares were first publicly offered on February 28, 2000.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of the period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer High Yield Fund
FINANCIAL HIGHLIGHTS 4/30/00
<TABLE>
<CAPTION>
2/25/00
to
4/30/00
(unaudited)
<S> <C>
CLASS Y (a)
Net asset value, beginning of period $11.34
------
Increase (decrease) from investment operations:
Net investment income $ 0.18
Net realized and unrealized loss on investments (0.45)
------
Net decrease from investment operations $(0.27)
Distributions to shareholders:
Net investment income (0.18)
------
Net decrease in net asset value $(0.45)
------
Net asset value, end of period $10.89
======
Total return* (2.39)%
Ratio of net expenses to average net assets+ 0.71%**
Ratio of net investment income to average net assets+ 9.22%**
Portfolio turnover rate 106%**
Net assets, end of period (in thousands) $ 96
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.83%**
Net investment income 8.10%**
Ratios assuming waiver of management fees
by PIM and reduction for fees paid indirectly:
Net expenses 0.44%**
Net investment income 9.49%**
</TABLE>
(a) Class Y Shares were first publicly offered on February 28, 2000.
* Assumes initial investment at net asset value at the beginning of the
period, reinvestment of all 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.
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer High Yield Fund
NOTES TO FINANCIAL STATEMENTS 4/30/00 (unaudited)
1. Organization and Significant Accounting Policies
Pioneer High Yield Fund (the Fund), a Delaware business trust, is registered
under the Investment Company Act of 1940 as a non-diversified, open-end
management investment company. The Fund is the successor to Third Avenue High
Yield Fund, a series of Third Avenue Trust. Third Avenue High Yield Fund
transferred all of its assets to the Fund's Class A shares on February 25, 2000
pursuant to an agreement and plan of reorganization. The reorganization had no
effect on the Fund's operations. The Fund, through its predecessor, commenced
investment operations on February 12, 1998. The investment objective of the Fund
is to maximize total return through a combination of income and capital
appreciation.
The Fund offers four classes of shares-Class A, Class B, Class C, and Class Y
shares. The inception date for Class B, Class C, and Class Y shares was February
25, 2000, and shares of each class were first publicly offered on February 28,
2000. Each class of shares represents an interest in the same portfolio of
investments of the Fund and has equal rights to voting, redemptions, dividends
and liquidation, except that the level of transfer agent and distribution fees
may differ among classes. Class A, Class B and Class C shareholders have
exclusive voting rights with respect to the distribution plan for each class.
There is no distribution plan for Class Y shares.
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. Securities are valued
at prices supplied by independent pricing services, which consider such
factors as Treasury spreads, yields, maturities and ratings. Valuations may
be supplemented by dealers and other
22
<PAGE>
Pioneer High Yield Fund
sources, as required and may include the use of yield equivalents or pricing
matrices. 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. Market discount and premium are accreted or amortized
daily on a straight-line basis. Original issue discount is accreted daily
into interest income on a yield-to-maturity basis with a corresponding
increase in the cost basis of the security. 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 that have
the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
C. Fund Shares
The Fund records sales and repurchases of its shares 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
$1,050 in underwriting commissions on the sale of fund shares during the six
months ended April 30, 2000.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of
23
<PAGE>
Pioneer High Yield Fund
NOTES TO FINANCIAL STATEMENTS 4/30/00 (unaudited) (continued)
the Fund, respectively. Class Y shares are not subject to a distribution
plan. 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 all classes of shares based on
their respective percentage of adjusted net assets at the beginning of the
day.
The Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
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, Class B, Class C, and Class Y shares can bear different
transfer agent and distribution fees.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of
the underlying securities (collateral), including accrued interest received
from counterparties, is required to be at least equal to or in excess of the
value of the repurchase agreement at the time of purchase. The collateral
for all repurchase agreements is held in safekeeping in the customer-only
account of the Fund's custodian, or subcustodians. The Fund's investment
adviser, Pioneer Investment Management, Inc. (PIM), is responsible for
determining that the value of the collateral remains at least equal to the
repurchase price.
F. Deferred Organization Costs
The costs incurred by the Fund in connection with its organization have been
deferred and are being amortized on a straight-line basis over a period of
up to five years.
24
<PAGE>
Pioneer High Yield Fund
2. Management Agreement
PIM manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 0.70% of the Fund's
average daily net assets up to $500 million; 0.65% of the next 500 million; and
0.60% of the excess over $1 billion.
PIM has agreed not to impose its management fee and to assume other operating
expenses of the Fund to the extent necessary to limit Class A expenses to 0.75%
of the average daily net assets attributable to Class A shares; the portion of
the Fund-wide expenses attributable to Class B and Class C shares will be
reduced only to the extent that such expenses are reduced for Class A shares.
Prior to February 25, 2000, expenses were limited to 1.90% of the Fund's average
daily net assets. PIM's agreement is voluntary and temporary and may be revised
or terminated at any time.
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At April 30, 2000, approximately $6,471 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 $5,496 in transfer agent fees payable to PSC at April 30, 2000.
25
<PAGE>
Pioneer High Yield Fund
NOTES TO FINANCIAL STATEMENTS 4/30/00 (unaudited) (continued)
4. Plans of Distribution
The Fund adopted Plans of Distribution with respect to Class A, Class B and
Class C shares (Class A Plan, Class B Plan and Class C Plan) in accordance with
Rule 12b-1 of the Investment Company Act of 1940. Pursuant to the Class A Plan,
the Fund pays PFD a service fee of up to 0.25% of the 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 and the Class C Plan, the Fund pays PFD 1.00% of
the average daily net assets attributable to each class of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Included in due
to affiliates is $7,914 in distribution fees payable to PFD at April 30, 2000.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be
imposed on redemptions of certain net asset value purchases of Class A shares
within 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. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Proceeds from the CDSCs are paid to PFD. For the six months ended April 30,
2000, CDSCs in the amount of $4,713 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the six months ended April 30, 2000,
the Fund's expenses were reduced by $5,965 under such arrangements.
26
<PAGE>
Pioneer High Yield 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
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 Plans
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 came about as part of the Taxpayer Relief Act of 1997 and is
available to investors in 1998. Contributions, up to $2,000 a year, 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 $40,000 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match PLan for Employees) IRA Plan
Businesses with 100 or fewer eligible employees can establish a plan; it
resembles a 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.
28
<PAGE>
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>
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, propectuses, 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.
[logo] Pioneer Investment Management, Inc.
60 State Street
Boston, Massachusetts 02109
www.pioneerfunds.com
8552-00-0600
(Copyright) Pioneer Funds Distributor, Inc.
[recycle symbol] Printed on Recycled Paper
