<PAGE>
[PIONEER LOGO]
Pioneer
Tax-Managed
Fund
ANNUAL REPORT 12/31/99
<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 6
Schedule of Investments 9
Financial Statements 14
Notes to Financial Statements 20
Report of Independent Public Accountants 24
Trustees, Officers and Service Providers 25
Retirement Plans from Pioneer 26
Programs and Services for Pioneer Shareowners 28
</TABLE>
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Pioneer Tax-Managed Fund
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LETTER FROM THE CHAIRMAN 12/31/99
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Dear Shareowner,
- --------------------------------------------------------------------------------
In an investment environment with many fluctuations, it can sometimes be
difficult to be disciplined enough to adhere to your investment goals. We are
bombarded every day with information and advice from a variety of sources.
Magazine and newspaper headlines create a frenzy by screaming - "Top 10 stocks
for the year 2000" - sending many investors scrambling to adjust their holdings
so that they too can have a share in these "winners". But as history often
shows us, yesterday's winners are in no way tomorrow's sure thing.
We know it's challenging to digest all of this information. But no one can know
with absolute certainty which stocks or bonds will have good performance from
day to day. It is important to focus on your own investment goals and to stick
to them. Jumping from one investment to another based upon the latest hot trend
is unlikely to help you reach your financial goals. We believe a disciplined
investment plan will.
The first few months of the year are a practical time to take a step back to
revisit your investment goals and make appropriate adjustments in your personal
portfolio. Scheduling a review session with your financial professional is a
good starting point. A professional acquainted with your individual
circumstances can help you to distill information, examine your current
strategy and make informed decisions that can satisfy your long-term investment
needs.
Among the key topics to cover with your advisor is your retirement-including
the IRA options available to you. Now is the time to think about making a 1999
contribution to an IRA, if you haven't already. This year, you'll have until
April 17 (April 15 falls on a Saturday) to make your prior-year IRA
contribution. And, to begin taking advantage of tax-deferred growth, you might
want to get a head start on your year 2000 contribution.
I encourage you to read on to learn more about Pioneer Tax-Managed Fund. If you
have questions, please contact your investment professional. Visit our web site
at www.pioneerfunds.com for more information about your fund or Pioneer.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
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Pioneer Tax-Managed Fund
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PORTFOLIO SUMMARY 12/31/99
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[TABULAR REPRESENTATION OF PIE CHART]
<TABLE>
<S> <C>
U.S. Common Stocks 93%
Depositary Receipts for International Stocks 6%
International Common Stocks 1%
</TABLE>
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[TABULAR REPRESENTATION OF PIE CHART]
<TABLE>
<S> <C>
Technology 31%
Consumer Cyclicals 17%
Healthcare 13%
Financial 12%
Consumer Staples 10%
Communication Services 4%
Basic Materials 4%
Energy 4%
Transportation 3%
Other 2%
</TABLE>
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
1. Hewlett-Packard Co. 2.49% 6. Bristol-Myers Squibb Co. 1.91%
2. IBM Corp. 2.36 7. State Street Corp. 1.88
3. Adobe Systems, Inc. 2.13 8. Intel Corp. 1.80
4. Microsoft Corp. 2.08 9. Oracle Corp. 1.78
5. American International 1.93 10. Motorola, Inc. 1.75
Group, Inc.
</TABLE>
2
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Pioneer Tax-Managed Fund
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PERFORMANCE UPDATE 12/31/99 CLASS A SHARES
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Share Prices and Distributions
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<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/99 11/18/99
$ 10.55 $ 10.00
Distributions per Share Income Short-Term Long-Term
(11/18/99 - 12/31/99) Dividends Capital Gains Capital Gains
- - -
</TABLE>
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Tax-Managed Fund at public offering price, compared to the growth of
the Standard & Poor's 500 Index.
Cumulative Total Returns
(As of December 31, 1999)
<TABLE>
<CAPTION>
Public
Net Asset Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 5.50% -0.56%
(11/18/99)
</TABLE>
* Reflects the deduction of the maximum 5.75% sales charge at the beginning of
the period and assumes reinvestment of distributions at net asset value.
[TABULAR REPRESENTATION OF LINE CHART]
Growth of $10,000
<TABLE>
<CAPTION>
Pioneer
Tax- S&P
Managed 500
Fund* Index
<S> <C> <C>
11/18/99 9425 10000
11/30/99 9312 9747
12/31/99 9943 10339
</TABLE>
The Standard & Poor's 500 Index is an unmanaged measure of 500 widely held
common stocks listed on the New York Stock Exchange, American Stock Exchange
and the over-the-counter market. Index returns 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
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Pioneer Tax-Managed Fund
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PERFORMANCE UPDATE 12/31/99 CLASS B SHARES
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Share Prices and Distributions
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/99 11/18/99
$ 10.52 $ 10.00
Distributions per Share Income Short-Term Long-Term
(11/18/99 - 12/31/99) Dividends Capital Gains Capital Gains
- - -
</TABLE>
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment in
Pioneer Tax-Managed Fund compared to the growth of the Standard & Poor's 500
Index.
Cumulative Total Returns
(As of December 31, 1999)
<TABLE>
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 5.20% 1.20%
(11/18/99)
</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.
[TABULAR REPRESENTATION OF LINE CHART]
Growth of $10,000
<TABLE>
<CAPTION>
Pioneer
Tax- S&P
Managed 500
Fund* Index
<S> <C> <C>
11/18/99 10000 10000
11/30/99 9860 9747
12/31/99 10120 10339
</TABLE>
The Standard & Poor's 500 Index is an unmanaged measure of 500 widely held
common stocks listed on the New York Stock Exchange, American Stock Exchange
and the over-the-counter market. Index returns 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
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Pioneer Tax-Managed Fund
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PERFORMANCE UPDATE 12/31/99 CLASS C SHARES
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Share Prices and Distributions
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/99 11/19/99
$ 10.54 $ 10.00
Distributions per Share Income Short-Term Long-Term
(11/19/99 - 12/31/99) Dividends Capital Gains Capital Gains
- - -
</TABLE>
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment in
Pioneer Tax-Managed Fund, compared to the growth of the Standard & Poor's
500 Index.
Cumulative Total Returns
(As of December 31, 1999)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 5.40% 4.40%
(11/19/99)
</TABLE>
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
[TABULAR REPRESENTATION OF LINE CHART]
Growth of $10,000
<TABLE>
<CAPTION>
Pioneer
Tax- S&P
Managed 500
Fund* Index
<S> <C> <C>
11/19/99 10000 10000
11/30/99 9880 9985
12/31/99 10440 10361
</TABLE>
The Standard & Poor's 500 Index is an unmanaged measure of 500 widely held
common stocks listed on the New York Stock Exchange, American Stock Exchange
and the over-the-counter market. Index returns 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 Tax-Managed Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/99
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In the following interview John Carey, the portfolio manager for Pioneer
Tax-Managed Fund, discusses the Fund's investment strategy and the market
environment during the short period since the Fund began operations on
November 18.
Q: Since its inception how has the Fund performed?
A: The Fund's total return from its inception to December 31, 1999 was 5.50%
(Class A), 5.20% (Class B) and 5.40% (Class C), all at net asset value. In
comparison, the unmanaged Standard & Poor's 500 Index returned 3.39% for
the same period, bolstered by strong gains from technology stocks.
Q: What is the strategy for Pioneer Tax-Managed Fund?
A: Pioneer Tax-Managed Fund aims to invest for long-term capital appreciation,
while minimizing taxable distributions to shareowners. It is our intention
to invest in companies with favorable outlooks extending out over several
years, in other words, companies that we believe can be long-term
investments for the portfolio. The portfolio will most likely emphasize
companies with growth, as opposed to cyclical, characteristics.
Nevertheless, we will also seek stocks with attractive valuations according
to the appraisal of our independent research staff. Although we want to
manage portfolio turnover to restrict the amount of net realized gains, we
will adjust the portfolio when investment fundamentals dictate. If we do
take gains on the sale of positions, we shall endeavor to offset the gains
with any unrealized losses on portfolio securities. While the Fund also
seeks to minimize dividend income, many of the stocks in the portfolio are
expected to pay dividends. However, by seeking to match the level of
dividend income on the portfolio to Fund expenses, we hope to minimize the
Fund's distributable amount.
Q: What is the difference between this Fund and other funds?
A: Pioneer Tax-Managed Fund holds a number of positions that can be found in
both value and growth funds. In short, it will most likely resemble a
"blend" portfolio. However, unlike aggressive growth funds, the Fund will
apply the discipline of moderate portfolio turnover. We don't expect to
take part in the initial-public-offerings market, except to the extent to
which we can identify companies whose stocks we would
6
<PAGE>
Pioneer Tax-Managed Fund
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- --------------------------------------------------------------------------------
want to hold beyond the first few days of fevered trading. We will not
pursue the kinds of "momentum" strategies that can lead to rapid portfolio
turnover and the accumulation of numerous short-term, distributable gains
and even, sometimes, losses. Finally, customary quality guidelines will be
applied to portfolio holdings rather than responding to the fads or
fashions of the marketplace. That is, we want to assure ourselves that
there is a solid, well-financed business behind the stock certificates,
with a management committed to achieving greater value for their company
over time.
Q: How do you manage risk?
A: Risk is sometimes equated with volatility: the greater the fluctuations of a
stock versus the fluctuations in a benchmark or stock-market index, the
riskier the stock is considered to be. That approach only takes into
account the risk of a sharply different investment performance versus the
average return for the investment category in which the stock or fund is
included. There are, however, other types of risk, for instance: business
or financial risk, market, industry or economic risk, and political or
regulatory risk. Some companies, in fact, may be at risk for their very
survival, and other companies may be so stable and assured of future sales
that an investor would feel comfortable holding the shares regardless of
the stock market environment. At Pioneer, with our emphasis on fundamental
value, we have always looked at risks of all types. There can never be any
guarantee that conditions for a company will not change abruptly. Nor can
one ever be sure that every potential risk has been identified. But it is
always our goal to buy shares in companies that not only stand a good
chance of being around from one year to the next, but that also have the
capability to grow in value.
Q: How will you manage the Fund if large-capitalization stocks fall out of
favor?
A: We do intend to focus generally on larger companies, typical of those found
in the S&P 500 Index. We believe that larger companies often have greater
resiliency than smaller ones. Their businesses tend to be more diversified
and established, their financial resources greater and their management
more experienced. Therefore, we think that larger companies will present
more opportunities for our long-term
7
<PAGE>
Pioneer Tax-Managed Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/99 (continued)
- --------------------------------------------------------------------------------
investment program. Certainly there will be periods when the market falters
and prices decline and the Fund will by no means be unaffected by the
general stock market. However, by emphasizing those companies that have
weathered economic storms in the past and have the wherewithal to get
through any present day adversities, we think we stand the best chance of
building long-term value for our shareowners.
Q: What type of investor would be interested in a tax-managed fund?
A: Pioneer Tax-Managed Fund would be appropriate for investors wishing to
commit money to a stock fund focused on patient, disciplined growth in
capital. It might also be a good product to consider for a child's account
under the Uniform Gift to Minors Act, since the usual objective of that
type of account is, again, the long-term build-up of capital. The purpose
of minimizing taxable distributions is to give shareowners control over
when to take gains on their fund holdings. So investors who are frustrated
by the unpredictable nature of capital-gains distributions from mutual
funds may find the Fund appealing. Of course, the Fund's tax-managed
strategies may be affected, even limited, at times by adverse market
conditions, changes in tax laws and the flow of money in and out of the
Fund.
Q: What is your outlook as we head into 2000?
A: Looking forward into 2000 and beyond, we are very excited by the potential
for further technological progress and economic growth. Of course no
economic trajectory is smooth, and no stock market always goes up. But
overall, we are quite optimistic as we look at the excellent goods and
services provided by the companies in the portfolio. We are grateful that
you have chosen to invest with us, and we shall work hard to meet your
investment expectations.
8
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 100.0%
Basic Materials - 4.2%
Aluminum - 1.3%
800 Alcoa, Inc. $ 66,400
--------
Chemicals - 0.7%
900 Rohm & Haas Co. $ 36,619
--------
Gold & Precious Metals Mining - 0.8%
1,700 Newmont Mining Corp. $ 41,650
--------
Metals Mining - 0.8%
600 Phelps Dodge Corp. $ 40,275
--------
Paper & Forest Products - 0.6%
500 Bowater, Inc. $ 27,156
--------
Total Basic Materials $212,100
--------
Capital Goods - 1.7%
Aerospace/Defense - 1.0%
2,300 Lockheed Martin Corp. $ 50,312
--------
Manufacturing (Diversified) - 0.7%
500 Illinois Tool Works, Inc. $ 33,781
--------
Total Capital Goods $ 84,093
--------
Communications Services - 4.3%
Telecommunications (Long Distance) - 1.2%
900 Sprint Corp. $ 60,581
--------
Telephone - 3.1%
1,600 BellSouth Corp. $ 74,900
1,700 SBC Communications, Inc. 82,875
--------
$157,775
--------
Total Communications Services $218,356
--------
Consumer Cyclicals - 16.8%
Automobiles - 3.3%
800 Ford Motor Co. $ 42,750
900 General Motors Corp. 65,419
600 Toyota Motor Corp. (A.D.R.) 58,425
--------
$166,594
--------
Household Furnishings & Appliances - 1.1%
1,000 Pioneer Corp. (A.D.R.)* $ 27,375
100 Sony Corp. (A.D.R.) 28,475
--------
$ 55,850
--------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Publishing - 1.2%
1,000 The McGraw-Hill Co., Inc. $ 61,625
--------
Publishing (Newspapers) - 2.3%
700 Gannett Co., Inc. $ 57,094
1,100 Tribune Co. 60,569
--------
$117,663
--------
Retail (Building Supplies) - 1.6%
1,300 Lowe's Companies, Inc. $ 77,675
--------
Retail (General Merchandise) - 2.1%
900 Dayton Hudson Corp. $ 66,094
600 Wal-Mart Stores, Inc. 41,475
--------
$107,569
--------
Retail (Specialty) - 0.6%
1,500 Barnes & Noble, Inc.* $ 30,937
--------
Retail (Specialty-Apparel) - 1.5%
1,600 Gap, Inc. $ 73,600
--------
Services (Advertising/Marketing) - 3.1%
1,300 The Interpublic Group of Companies, Inc. $ 74,994
800 Omnicom Group, Inc. 80,000
--------
$154,994
--------
Total Consumer Cyclicals $846,507
--------
Consumer Staples - 10.1%
Beverages - 1.2%
1,700 Pepsico, Inc. $ 59,925
--------
Broadcasting (Television/Radio/Cable) - 2.2%
1,300 Cox Communication, Inc.* $ 66,950
600 MediaOne Group, Inc.* 46,088
--------
$113,038
--------
Foods - 3.3%
1,500 BestFoods $ 78,844
800 Campbell Soup Co. 30,950
1,400 H.J. Heinz Co. 55,738
--------
$165,532
--------
Household Products (Non-Durables) - 1.5%
1,200 Colgate-Palmolive Co. $ 78,000
--------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Personal Care - 0.5%
600 The Gillette Co. $ 24,712
--------
Retail Stores (Drug Stores) - 1.4%
1,000 CVS Corp. $ 39,937
1,000 Walgreen Co. 29,250
--------
$ 69,187
--------
Total Consumer Staples $510,394
--------
Energy - 3.6%
Oil (International Integrated) - 1.2%
1,100 Texaco, Inc. $ 59,744
--------
Oil & Gas (Drilling & Equipment) - 1.2%
1,900 Transocean Offshore, Inc. $ 64,006
--------
Oil & Gas (Exploration/Production) - 1.2%
3,000 Houston Exploration Co. $ 59,437
--------
Total Energy $183,187
--------
Financial - 12.0%
Banks (Major Regional) - 4.5%
1,600 Mellon Bank Corp. $ 54,500
1,300 State Street Corp. 94,981
1,900 Wells Fargo & Co. 76,831
--------
$226,312
--------
Banks (Regional) - 1.4%
1,200 Zions Bancorporation $ 71,025
--------
Insurance (Life/Health) - 1.0%
1,400 Axa Financial, Inc. $ 47,425
--------
Insurance (Multi-Line) - 1.9%
900 American International Group, Inc. $ 97,312
--------
Insurance (Property/Casualty) - 0.9%
800 Chubb Corp. $ 45,050
--------
Investment Banking/Brokerage - 1.3%
1,700 Paine Webber Group, Inc. $ 65,981
--------
Investment Management - 1.0%
1,400 T. Rowe Price Associates, Inc. $ 51,713
--------
Total Financial $604,818
--------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Tax-Managed Fund
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SCHEDULE OF INVESTMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare - 12.6%
Biotechnology - 1.3%
1,100 Amgen, Inc.* $ 66,069
--------
Healthcare (Diversified) - 5.5%
1,500 Abbott Laboratories $ 54,469
1,500 Bristol-Myers Squibb Co. 96,281
900 Johnson & Johnson 83,812
500 Warner-Lambert Co., Inc. 40,969
--------
$275,531
--------
Healthcare (Drugs/Major Pharmaceuticals) - 5.8%
1,000 Eli Lilly & Co. $ 66,500
1,900 Pfizer, Inc. 61,631
350 Roche Holding AG (A.D.R.) 41,541
1,700 Schering-Plough Corp. 71,719
800 SmithKline Beecham Plc (A.D.R.) 51,550
--------
$292,941
--------
Total Healthcare $634,541
--------
Technology - 31.0%
Communications Equipment - 6.7%
1,200 ADC Telecommunications, Inc.* $ 87,075
1,000 Lucent Technologies, Inc. 74,812
600 Motorola, Inc. 88,350
1,300 Telefonaktiebolaget LM Ericsson (A.D.R.) 85,394
--------
$335,631
--------
Computers (Hardware) - 7.5%
2,000 Compaq Computer Corp. $ 54,125
1,100 Hewlett-Packard Co. 125,331
1,100 IBM Corp. 118,800
1,000 Sun Microsystems, Inc.* 77,438
--------
$375,694
--------
Computers (Software & Services) - 8.9%
1,600 Adobe Systems, Inc. $107,600
1,000 BMC Software, Inc.* 79,937
900 Microsoft Corp.* 105,075
800 Oracle Corp.* 89,650
3,100 Peoplesoft, Inc.* 66,069
--------
$448,331
--------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Electronics (Semiconductors) - 3.1%
1,100 Intel Corp. $ 90,544
700 Texas Instruments, Inc. 67,813
----------
$ 158,357
----------
Services (Computer Systems) - 1.5%
800 Computer Sciences Corp.* $ 75,700
----------
Services (Data Processing) - 3.3%
1,500 Automatic Data Processing, Inc. $ 80,812
1,300 Electronic Data Systems Corp. 87,019
----------
$ 167,831
----------
Total Technology $1,561,544
----------
Transportation - 3.2%
Airlines - 1.9%
600 AMR Corp.* $ 40,200
3,300 Southwest Airlines Co. 53,419
----------
$ 93,619
----------
Railroads - 1.3%
3,200 Norfolk Southern Corp. $ 65,600
----------
Total Transportation $ 159,219
----------
Utilities - 0.5%
Natural Gas - 0.5%
600 Enron Corp. $ 26,625
----------
Total Utilities $ 26,625
----------
Total Common Stocks
(Cost $4,833,672) $5,041,384
----------
TOTAL INVESTMENT IN SECURITIES
(Cost $4,833,672)(a) $5,041,384
----------
* Non-income producing security.
(a) At December 31, 1999, the net unrealized gain on investments,
based on cost for federal income tax purposes of $4,833,672
was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $264,099
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (56,387)
--------
Net unrealized gain $207,712
--------
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for
the period ended December 31, 1999, aggregated $4,833,672 and $0, respectively.
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $4,833,672) $ 5,041,384
Cash 600,428
Receivables -
Fund shares sold 473,176
Dividends 1,834
Due from Pioneer Investment Management, Inc. 17,084
-----------
Total assets $ 6,133,906
-----------
LIABILITIES:
Payable for investment securities purchased $ 564,639
Due to affiliates 3,982
Accrued expenses 19,475
-----------
Total liabilities $ 588,096
-----------
NET ASSETS:
Paid-in capital $ 5,338,098
Net unrealized gain on investments 207,712
-----------
Total net assets $ 5,545,810
-----------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $2,384,111/225,952 shares) $ 10.55
-----------
Class B (based on $2,238,174/212,673 shares) $ 10.52
-----------
Class C (based on $923,525/87,584 shares) $ 10.54
-----------
MAXIMUM OFFERING PRICE:
CLASS A $ 11.19
-----------
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Period from 11/18/99 (Commencement of Operations) to 12/31/99
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends $1,992
Interest 1,572
------
Total investment income $ 3,564
---------
EXPENSES:
Management fees $2,219
Transfer agent fees
Class A 1,161
Class B 774
Class C 234
Distribution fees
Class A 303
Class B 1,219
Class C 511
Custodian fees 1,978
Registration fees 5,891
Professional fees 5,805
Printing 2,795
Fees and expenses of nonaffiliated trustees 2,236
Miscellaneous 945
------
Total expenses $ 26,071
Less management fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (19,479)
---------
Net expenses $ 6,592
---------
Net investment loss $ (3,028)
---------
UNREALIZED GAIN ON INVESTMENTS:
Net unrealized gain on investments $207,712
---------
Net increase in net assets resulting from operations $204,684
---------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Period from 11/18/99 (Commencement of Operations) to 12/31/99
<TABLE>
<CAPTION>
11/18/99 to
12/31/99
<S> <C>
FROM OPERATIONS:
Net investment loss $ (3,028)
Net unrealized gain on investments 207,712
-----------
Net increase in net assets resulting from
operations $ 204,684
-----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $5,307,963
Cost of shares repurchased (66,837)
-----------
Net increase in net assets resulting from
fund share transactions $5,241,126
-----------
Net increase in net assets $5,445,810
NET ASSETS:
Beginning of period (initial capitalization - 10,000
shares) 100,000
-----------
End of period (including accumulated undistributed net
investment income of $0) $5,545,810
-----------
CLASS A '99 Shares '99 Amount
Shares sold 219,952 $2,238,711
------- -----------
Net increase 219,952 $2,238,711
------- -----------
CLASS B
Shares sold 208,761 $2,115,331
Less shares repurchased (88) (875)
------- -----------
Net increase 208,673 $2,114,456
------- -----------
CLASS C*
Shares sold 93,994 $ 953,921
Less shares repurchased (6,410) (65,962)
------- -----------
Net increase 87,584 $ 887,959
------- -----------
</TABLE>
* Class C shares were first publicly offered November 19, 1999.
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
11/18/99 to
12/31/99
<S> <C>
CLASS A
Net asset value, beginning of period $ 10.00
-------
Increase (decrease) from investment operations:
Net investment loss $ (0.00)(a)
Unrealized gain on investments 0.55
-------
Net increase in net asset value $ 0.55
-------
Net asset value, end of period $ 10.55
-------
Total return* 5.50%
Ratio of net expenses to average net assets 1.75%* *
Ratio of net investment loss to average net assets (0.55)%**
Portfolio turnover rate 0%
Net assets, end of period (in thousands) $ 2,384
Ratios assuming no waiver of management fees
and assumption of expenses by PIM:
Net expenses 8.74%* *
Net investment loss (7.54)%**
</TABLE>
(a) Amount rounds to less than one cent per share.
* 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.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
11/18/99 to
12/31/99
<S> <C>
CLASS B
Net asset value, beginning of period $ 10.00
-------
Increase (decrease) from investment operations:
Net investment loss $ (0.01)
Unrealized gain on investments 0.53
-------
Net increase in net asset value $ 0.52
-------
Net asset value, end of period $ 10.52
-------
Total return* 5.20%
Ratio of net expenses to average net assets 2.60%**
Ratio of net investment loss to average net assets (1.42)%**
Portfolio turnover rate 0%
Net assets, end of period (in thousands) $ 2,238
Ratios assuming no waiver of management fees
and assumption of expenses by PIM:
Net expenses 8.41%**
Net investment loss (7.23)%**
</TABLE>
* 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.
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
11/19/99 to
12/31/99
<S> <C>
CLASS C(a)
Net asset value, beginning of period $ 10.00
-------
Increase (decrease) from investment operations:
Net investment loss $ (0.01)
Unrealized gain on investments 0.55
-------
Net increase in net asset value $ 0.54
-------
Net asset value, end of period $ 10.54
-------
Total return* 5.40%
Ratio of net expenses to average net assets 2.25%**
Ratio of net investment loss to average net assets (1.06)%**
Portfolio turnover rate 0%
Net assets, end of period (in thousands) $ 924
Ratios assuming no waiver of management fees
and assumption of expenses by PIM:
Net expenses 8.67%**
Net investment loss (7.48)%**
</TABLE>
(a) Class C shares were first publicly offered on November 19, 1999.
* 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.
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/99
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Tax-Managed Fund (the Fund) is a Delaware business trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund was organized on August 3, 1999 and commenced
operations on November 18, 1999. Prior to November 18, 1999, the Fund had no
operations other than those relating to organizational matters and the initial
capitalization of the fund by Pioneer Funds Distributor, Inc. (PFD). The
investment objective of the Fund is to seek long-term capital growth by
investing primarily in domestic equity securities.
The Fund offers three classes of shares--Class A, Class B and Class C shares.
Class C shares were first publicly offered November 19, 1999. Shares of Class
A, Class B and Class C each represent an interest in the same portfolio of
investments of the Fund and have equal rights to voting, redemptions, dividends
and liquidation, except that each class of shares can bear different transfer
agent and distribution fees and have exclusive voting rights with respect to
the distribution plans that have been adopted by Class A, Class B and Class C
shareholders, respectively.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to,
among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts
of revenues and expenses during the reporting period. 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 on trade date. The net asset value is
computed once daily, on each day the New York Stock Exchange is open, as of
the close of regular trading on the Exchange. In computing the net asset
value, securities are valued at the last sale price on the principal exchange
where they are traded. Securities that have not traded on the date of
valuation, or securities for which sale prices are not generally reported,
are valued at the mean between the last bid and asked prices. Securities for
which market quotations are not readily available are val-
20
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ued at their fair values as determined by, or under the direction of, the
Board of Trustees. Dividend income is recorded on the ex-dividend date and
interest income is recorded on the accrual basis. Temporary cash investments
are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities 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.
At December 31, 1999, the Fund reclassified $3,028 from paid-in capital to
accumulated net investment loss. The reclassification has no impact on the
net asset value of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
C. Fund Shares
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations are absorbed by PFD, the
principal underwriter for the Fund and an indirect subsidiary of The Pioneer
Group, Inc. (PGI). PFD earned $4,783 in underwriting commissions on the sale
of fund shares during the period ended December 31, 1999.
21
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/99 (continued)
- --------------------------------------------------------------------------------
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 the Fund,
respectively. Shareholders of each class share all expenses and fees paid to
the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expense (see Note 3).
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning of
the day.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 0.75% of the Fund's
average daily net assets up to $1 billion and 0.70% of the excess over $1
billion.
PIM has agreed not to impose all or portion of its management fee and to assume
other operating expenses of the Fund to the extent necessary to limit Class A
expenses to 1.75% 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. 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.
22
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 $1,976 in transfer agent fees payable to PSC at December 31,
1999.
4. Distribution Plans
The Fund adopted Plans of Distribution for each class of 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 $2,006
in distribution fees payable to PFD at December 31, 1999.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of
purchase. Class B shares that are redeemed within six years of purchase are
subject to a CDSC at declining rates beginning at 4.00%, based on the lower of
cost or market value of shares being redeemed. 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. No CDSCs were paid to PFD during the period ended
December 31, 1999.
23
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareowners and the Board of Trustees of Pioneer Tax-Managed Fund:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Tax-Managed Fund as of December 31, 1999, and the
related statement of operations, the statement of changes in net assets, and
the financial highlights for the period presented. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1999, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Tax-Managed Fund as of December 31, 1999, the results of its
operations, the change in its net assets, and the financial highlights for the
period presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
February 4, 2000
24
<PAGE>
Pioneer Tax-Managed Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Officers Trustees
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice
Margaret B.W. Graham President
John W. Kendrick 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.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
25
<PAGE>
- --------------------------------------------------------------------------------
RETIREMENT PLANS FROM PIONEER
- --------------------------------------------------------------------------------
Pioneer has a long history of helping people work toward their retirement
goals, offering plans suited to the individual investor and businesses of all
sizes. For more information on Pioneer retirement plans, contact your
investment professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 701/2 with earned
income to contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
The Roth IRA lets investors contribute up to $2,000 a year. Contributions are
not tax-deductible, but earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $10,000 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match Plan for Employees)
401(k) or IRA Plan
Businesses with 100 or fewer eligible employees can establish either plan; both
resemble the traditional 401(k), but with less testing and lower administration
costs. Employees can make pre-tax contributions of up to $6,000 per year, and
an employer contribution is required.
Most retirement plan withdrawals must meet
specific conditions to avoid penalties.
26
<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.
27
<PAGE>
- --------------------------------------------------------------------------------
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
- --------------------------------------------------------------------------------
Your investment representative can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-800-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 13-digit account number and four-digit personal identification number at
hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as
you meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
28
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a
period of time. Just invest a lump sum in one fund, then select the other
Pioneer funds you wish to invest in. You choose the amounts and dates for
Pioneer to sell shares of your original fund, and use the proceeds to buy
shares of the other funds you have chosen. Over time, your investment will be
shifted out of the original fund. (Automatic Exchange is available for
originating accounts with a balance of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is
available for dividend payments only; capital gains distributions are not
eligible at this time.)
Direct Deposit
Lets you move money into your bank account using electronic funds trans-fer
(EFT). EFT moves your money faster than you would receive a check,
eliminates unnecessary paper and mail, and avoids lost checks. Simply fill
out a Pioneer Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set
intervals. You decide the frequency and the day of the month. Pioneer will send
the proceeds by check to the address you designate, or electronically to your
bank account. You can also authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available for accounts with a value of $10,000 or
more.)
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, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[PIONEER LOGO]
Pioneer Investment Management, Inc.
60 State Street 7898-00-0200
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com (recycle logo) Printed on Recycled Paper
