<PAGE>
[Pioneer Logo]
Pioneer
Tax-Managed
Fund
SEMIANNUAL REPORT 6/30/00
<PAGE>
Table of Contents
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 15
Notes to Financial Statements 21
Trustees, Officers and Service Providers 25
Retirement Plans from Pioneer 26
Programs and Services for Pioneer Shareowners 28
</TABLE>
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
LETTER FROM THE CHAIRMAN 6/30/00
--------------------------------------------------------------------------------
Dear Shareowner,
--------------------------------------------------------------------------------
For over a year, the Federal Reserve has been trying to suppress inflationary
pressures and restrain economic growth in the U.S. by raising short-term
interest rates. Because they represent increased costs, higher interest rates
cut into corporate profits.
With the possibility of a slowing economy and an uncertain profit outlook
overhanging the stock market, investors shifted from sector to sector in the
first half of 2000 looking for attractive opportunities. Heightened stock market
volatility was the result. Bonds also lost luster, because existing,
lower-paying issues could not compete with the higher rates that now prevail. By
summer, we began to see evidence that the Fed's tactics were having some impact,
as key statistics hinted at a contraction of the economy's growth rate.
Volatile markets should not sidetrack your plans for dealing with your essential
financial goals. Whatever your long-range needs may be - money for a child's
education, funding a comfortable retirement, or some other cherished objective -
those needs remain in place no matter what the market may do this week or next
month. For that reason, it makes sense to focus your investment strategy beyond
interim ups and downs.
Mid-year is a good time to talk to your financial representative to review what
has been happening and to make sure your strategy is intact. Part of that
discussion should be devoted to your portfolio's diversification. Do you have a
blend of stocks and bonds that you are comfortable with and that can help you
meet your goals? Or is it time to make adjustments? Be sure to include your IRAs
and other retirement vehicles when you evaluate your overall portfolio.
I hope you will take time to read the following discussion with John Carey, the
portfolio manager of Pioneer Tax-Managed Fund. It's an excellent way to
understand the Fund's performance during the past six months and to learn what
the manager's expectations are for the months ahead. If you have questions or
would like more information about your fund, visit our web site at
www.pioneerfunds.com.
Respectfully,
/s/ John F. Cogan, Jr.
------------------------------
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer Tax-Managed Fund
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PORTFOLIO SUMMARY 6/30/00
--------------------------------------------------------------------------------
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Begin Pie Chart]
<TABLE>
<S> <C>
U.S. Common Stocks 94%
Depositary Receipts for International Stocks 3%
Short-Term Cash Equivalents 2%
International Common Stocks 1%
</TABLE>
[End Pie Chart]
Sector Distribution
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
[Begin Pie Chart]
<TABLE>
<S> <C>
Technology 31%
Consumer Cyclicals 16%
Financial 13%
Healthcare 13%
Consumer Staples 10%
Communication Services 7%
Energy 3%
Transportation 2%
Basic Materials 2%
Other 3%
</TABLE>
[End Pie Chart
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C>
1. BellSouth Corp. 2.82%
2. Microsoft Corp. 2.63
3. Ford Motor Corp. 2.48
4. Pfizer, Inc. 2.25
5. IBM Corp. 2.22
6. ADC Telecommunications, Inc. 2.19
7. Adobe Systems, Inc. 2.16
8. Motorola, Inc. 2.16
9. BestFoods 2.02
10. Bristol-Myers Squibb Co. 2.02
</TABLE>
2
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/00 CLASS A SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 6/30/00 12/31/99
$ 10.81 $ 10.55
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) 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.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of June 30, 2000)
Public
Net Asset Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 8.10% 1.89%
(11/18/99)
</TABLE>
* Reflects the deduction of the maximum 5.75% sales charge at the beginning
of the period and assumes reinvest-ment of distributions at net asset value.
[Begin Line Chart]
<TABLE>
<CAPTION>
Growth of $10,000
Pioneer Standard
Tax-Managed & Poor's
Fund* 500 Index
<S> <C> <C>
11/99 9,425 10,000
9,312 9,747
12/99 9,943 10,339
9,463 9,813
2/00 9,491 9,616
10,226 10,575
4/00 10,066 10,249
10,170 10,024
6/00 10,189 10,293
</TABLE>
[End Line Chart]
The Fund's ability to pursue tax-managed strategies may be reduced under certain
circumstances including adverse market conditions, changes in tax laws and
shareholder redemptions.
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
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/00 CLASS B SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 6/30/00 12/31/99
$10.74 $10.52
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
-- -- --
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment in
Pioneer Tax-Managed Fund compared to the growth of the Standard & Poor's 500
Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of June 30, 2000)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 7.40% 3.40%
(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.
[Begin Line Chart]
<TABLE>
<CAPTION>
Growth of $10,000
Pioneer Standard
Tax-Managed & Poor's
Fund* 500 Index
<S> <C> <C>
11/99 10,000 10,000
9,860 9,747
12/99 10,520 10,339
10,020 9,813
2/00 10,040 9,616
10,810 10,575
4/00 10,640 10,249
10,730 10,024
6/00 10,340 10,293
</TABLE>
[End Line Chart]
The Fund's ability to pursue tax-managed strategies may be reduced under certain
circumstances including adverse market conditions, changes in tax laws and
shareholder redemptions.
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
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/00 CLASS C SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 6/30/00 12/31/99
$ 10.76 $ 10.54
Distributions per Share Income Short-Term Long-Term
(12/31/99 - 6/30/00) Dividends Capital Gains Capital Gains
-- -- --
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment in
Pioneer Tax-Managed Fund, compared to the growth of the Standard & Poor's 500
Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of June 30, 2000)
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 7.60% 6.60%
(11/19/99)
</TABLE>
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
[Begin Line Chart]
<TABLE>
<CAPTION>
Growth of $10,000
Pioneer Standard
Tax-Managed & Poor's
Fund* 500 Index
<S> <C> <C>
11/99 10,000 10,000
9,880 9,767
12/99 10,540 10,361
10,040 9,833
2/00 10,060 9,636
10,830 10,596
4/00 10,640 10,270
10,750 10,045
6/00 10,660 10,315
</TABLE>
[End Line Chart]
The Fund's ability to pursue tax-managed strategies may be reduced under certain
circumstances including adverse market conditions, changes in tax laws and
shareholder redemptions.
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
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
In the following discussion John Carey, portfolio manager of Pioneer Tax-Managed
Fund, reviews the market environment and investment strategies that influenced
your Fund's performance during the six months ended June 30, 2000.
Q: How would you characterize the market environment over the last six months?
A: The stock market in the United States has been extremely volatile. From the
beginning of the year through the end of the first week of March, it seemed
investors were only interested in technology; but the tables turned, and a
deep correction in that sector ensued. In the last week of May, the tables
turned yet again, and technology began to recover. This continued through the
end of our six-month period. In the meantime, the rest of the market varied
greatly. Some groups that had lagged during most of 1999 performed relatively
well, such as pharmaceuticals, electric utilities and some of the financial
and food stocks. Other stocks that should have done better in a period of
higher inflation, such as the basic materials and the large oil stocks,
performed poorly. On the whole, a diversified approach to the market, with an
emphasis on more conservatively valued names, proved a worthwhile strategy.
Q: How did the Fund perform in the period?
A: Pioneer Tax-Managed Fund Class A shares achieved a total return, at net asset
value, of 2.46% (2.09% for both Class B and Class C), for the six months
ended June 30, 2000. The return compared favorably with the loss of 0.45% on
the unmanaged Standard & Poor's 500 Index during the same period. We are
pleased that our Fund held up so well during such a bumpy time. Some
stand-out performers helping overall results were Pfizer, which completed its
merger with Warner Lambert in the second quarter; State Street, which rose to
all-time highs on the strength of its worldwide shareholder service and
investment businesses; BestFoods, the recipient of a take-over bid from
Unilever; and a number of our technology stocks.
6
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Q: What are the strategies and areas of investment emphasis for the Fund?
A: The objective of Pioneer Tax-Managed Fund is long-term capital appreciation
with a minimum of taxable income and capital gains distributions. We cannot
guarantee that the Fund will never make such distributions, but our goal is
to minimize them and our investment strategies reflect this goal. We have
positioned the Fund for the most part in large market capitalization issues
with stable but growing businesses that we feel can be long-term investments.
In that way we can minimize, we hope, the kinds of short-term gains sometimes
generated from trading in and out of stocks, speculating on near-term price
moves, playing the IPO (initial public offerings) market, and so forth. We
also watch closely the aggregate level of dividend income generated by
portfolio holdings in order to keep the income stream below the level of fund
expenses and thus minimize or eliminate income distributions.
The portfolio includes a large number of industry-leading companies. Alcoa
(aluminum), BellSouth (telecommunications), Toyota Motor and Ford Motor
(autos), Sony (consumer electronics), McGraw-Hill (business and educational
publications), Wal-Mart Stores (discount retail), PepsiCo (snackfoods and
soft drinks), Merck (pharmaceuticals) and Hewlett-Packard (computers) are
names synonymous with leadership, long-term success and financial strength.
Throughout the portfolio we have emphasized such companies. The majority of
holdings also come from the names making up the Standard & Poor's 500, and we
do regard the sector weightings within the S&P in such growth areas as
technology and healthcare as general objectives for portfolio weightings.
Among new entries for the Fund during the first six months were Bell Atlantic
(since June 30 re-named Verizon), Best Buy (consumer-electronics retailing),
Novellus Systems (semiconductor equipment) and General Motors (Class H) which
is the Hughes Electronics division (satellite television). We made other
additions and enlarged positions in numerous existing holdings as fund assets
continued to grow. At June 30, net assets in the Fund totaled about $23
million.
7
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00 (continued)
--------------------------------------------------------------------------------
Q: What is your outlook for the remainder of the year?
A: Interest rates and inflation continue to weigh on investors' minds - along
with the added uncertainty of the November elections - as we move into the
second half of the year. Clearly the Federal Reserve rate hikes have had an
effect, and the higher oil prices are working their way through the economy
slowly but surely. At a time like this there are people who speculate whether
we will have a "soft" or a "hard landing," and there are the inevitable
"bears," who will crawl forth from their caves growling, "I told you so."
Surely the business cycle is not "dead," and the economy remains vulnerable
to excessive production and capacity, relative to demand. We have had a
wonderfully long economic expansion, much longer than anyone forecast when it
began. It is not our practice, our expertise or our interest to predict the
economy. We merely take note of prevailing expert views and commentary and
observe that we may have an economic slowdown that will reduce the rate of
corporate earnings growth, though there is no way of knowing this in advance.
But if it happens, it will not be a surprise. We will take our normal
precautions; that is, we will emphasize strong companies that offer goods and
services that will still be in demand during such a slowdown and continue to
keep the portfolio well diversified to moderate risk.
8
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 97.6%
Basic Materials - 2.3%
Aluminum - 0.8%
5,800 Alcoa, Inc. $ 168,200
----------
Chemicals - 0.4%
2,800 Rohm and Haas Co. $ 96,600
----------
Gold & Precious Metals Mining - 0.5%
5,400 Newmont Mining Corp. $ 116,775
----------
Metals Mining - 0.4%
2,100 Phelps Dodge Corp. $ 78,094
----------
Paper & Forest Products - 0.2%
1,200 Bowater, Inc. $ 52,950
----------
Total Basic Materials $ 512,619
----------
Capital Goods - 0.5%
Aerospace/Defense - 0.3%
2,300 Lockheed Martin Corp. $ 57,069
----------
Manufacturing (Diversified) - 0.2%
1,000 Illinois Tool Works, Inc. $ 57,000
----------
Total Capital Goods $ 114,069
----------
Communication Services - 7.2%
Cellular/Wireless Telecommunications - 0.5%
1,400 AT&T Wireless Group* $ 39,025
1,500 Sprint Corp. (PCS Group)* 89,250
----------
$ 128,275
----------
Telecommunications (Long Distance) - 1.6%
7,000 Sprint Corp. $ 357,000
----------
Telephone - 5.1%
4,000 Bell Atlantic Corp. $ 203,250
14,700 BellSouth Corp. 626,588
7,600 SBC Communications, Inc. 328,700
----------
$1,158,538
----------
Total Communication Services $1,643,813
----------
Consumer Cyclicals - 15.6%
Auto Parts & Equipment - 0.1%
1,676 Visteon Corp. $ 20,321
----------
Automobiles - 3.2%
12,800 Ford Motor Corp. $ 550,400
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Automobiles - (continued)
2,200 General Motors Corp. $ 127,737
600 Toyota Motor Corp. (A.D.R.) 55,913
----------
$ 734,050
----------
Household Furnishings & Appliances - 0.9%
3,000 Pioneer Corp. (A.D.R.) $ 121,500
800 Sony Corp. (A.D.R.) 75,450
----------
$ 196,950
----------
Publishing - 1.7%
7,000 McGraw-Hill Co., Inc. $ 378,000
----------
Publishing (Newspapers) - 1.5%
3,000 Gannett Co., Inc. $ 179,436
4,900 Tribune Co. 171,500
----------
$ 350,936
----------
Retail (Building Supplies) - 0.9%
5,000 Lowe's Companies, Inc. $ 205,313
----------
Retail (Computers & Electronics) - 0.4%
1,000 Best Buy Co., Inc.* $ 63,250
1,000 Circuit City Group 33,188
----------
$ 96,438
----------
Retail (General Merchandise) - 1.7%
2,400 Target Corp. $ 139,200
4,200 Wal-Mart Stores, Inc. 242,025
----------
$ 381,225
----------
Retail (Specialty) - 0.1%
1,500 Barnes & Noble, Inc.* $ 33,375
----------
Retail (Specialty-Apparel) - 1.1%
8,100 Gap Inc. $ 253,125
----------
Services (Advertising/Marketing) - 3.9%
9,300 The Interpublic Group of Companies, Inc. $ 399,900
1,300 Omnicom Group 115,781
6,500 Young & Rubicam Inc. 371,719
----------
$ 887,400
----------
Services (Commercial & Consumer) - 0.1%
794 Sabre Group Holdings, Inc. $ 22,629
----------
Total Consumer Cyclicals $3,559,762
----------
</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>
Consumer Staples - 10.2%
Beverages (Non-Alcoholic) - 1.1%
5,600 PepsiCo, Inc. $ 248,850
----------
Broadcasting (Television/Cable/Radio) - 1.0%
3,600 Cox Communication, Inc.* $ 164,025
900 MediaOne Group, Inc.* 59,687
----------
$ 223,712
----------
Foods - 4.2%
6,500 BestFoods $ 450,125
6,800 Campbell Soup Co. 198,050
3,400 H.J. Heinz Co. 148,750
2,200 The Quaker Oats Co. 165,275
----------
$ 962,200
----------
Household Products (Non-Durables) - 2.3%
2,900 Colgate-Palmolive Co. $ 173,638
5,900 Procter & Gamble Co. 337,775
----------
$ 511,413
----------
Personal Care - 0.2%
1,300 The Gillette Co. $ 45,418
----------
Retail (Drug Stores) - 1.4%
4,000 CVS Corp. $ 160,000
5,200 Walgreen Co. 167,375
----------
$ 327,375
----------
Total Consumer Staples $2,318,968
----------
Energy - 2.8%
Oil (International Intergrated) - 1.6%
6,900 Texaco, Inc. $ 367,425
----------
Oil & Gas (Drilling & Equipment) - 0.8%
3,500 Transocean Offshore Inc. $ 187,031
----------
Oil & Gas (Production/Exploration) - 0.4%
3,000 Houston Exploration Co.* $ 75,375
----------
Total Energy $ 629,831
----------
Financial - 13.0%
Banks (Major Regional) - 4.3%
8,300 Mellon Bank Corp. $ 302,431
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Banks (Major Regional) - (continued)
3,400 State Street Corp. $ 360,613
7,900 Wells Fargo Co. 306,125
----------
$ 969,169
----------
Banks (Money Center) - 1.0%
2,050 J.P. Morgan & Co., Inc. $ 225,756
----------
Banks (Regional) - 0.6%
2,900 Zions Bancorporation $ 133,083
----------
Financial (Diversified) - 2.1%
10,000 Associates First Capital Corp. $ 223,125
7,600 Axa Financial, Inc. 258,400
----------
$ 481,525
----------
Insurance (Multi-Line) - 1.5%
3,000 American International Group, Inc. $ 352,500
----------
Insurance (Property/Casualty) - 1.2%
4,600 Chubb Corp. $ 282,900
----------
Investment Banking/Brokerage - 2.3%
7,300 Paine Webber Group Inc. $ 332,150
4,500 T. Rowe Price Associates, Inc. 191,250
----------
$ 523,400
----------
Total Financial $2,968,333
----------
Healthcare - 13.0%
Biotechnology - 0.7%
2,400 Amgen, Inc.* $ 168,600
----------
Healthcare (Diversified) - 4.8%
4,600 Abbott Laboratories $ 204,988
7,700 Bristol-Myers Squibb Co. 448,525
4,200 Johnson & Johnson 427,875
----------
$1,081,388
----------
Healthcare (Drugs/Major Pharmaceuticals) - 7.5%
2,500 Eli Lilly & Co. $ 249,687
3,500 Merck & Co., Inc. 268,187
10,400 Pfizer, Inc. 499,200
650 Roche Holding AG (A.D.R.) 63,233
8,000 Schering-Plough Corp. 404,000
3,400 Smithkline Beecham Plc (A.D.R.) 221,638
----------
$1,705,945
----------
Total Healthcare $2,955,933
----------
</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>
Technology - 30.7%
Communications Equipment - 6.9%
5,800 ADC Telecommunications, Inc.* $ 486,475
6,400 Lucent Technologies, Inc. 379,200
16,500 Motorola, Inc. 479,531
11,700 Telefonaktiebolaget LM Ericsson (A.D.R.) 234,000
----------
$1,579,206
----------
Computers (Hardware) - 6.3%
6,900 Compaq Computer Corp. $ 176,381
3,500 Hewlett-Packard Co. 437,063
4,500 IBM Corp. 493,031
3,400 Palm Inc.* 113,475
2,400 Sun Microsystems, Inc.* 218,250
----------
$1,438,200
----------
Computers (Networking) - 2.5%
4,000 3COM Corp.* $ 230,500
6,200 Lycos, Inc.* 334,800
----------
$ 565,300
----------
Computers (Software & Services) - 8.9%
3,700 Adobe Systems, Inc. $ 481,000
5,900 BMC Software, Inc.* 215,258
7,300 Microsoft Corp.* 584,000
2,900 Oracle Corp.* 243,781
5,100 Peoplesoft Inc.* 85,425
12,000 Synopsys, Inc.* 414,750
----------
$2,024,214
----------
Electronics (Defense) - 1.0%
2,500 General Motors Corp. (Class H)* $ 219,375
----------
Electronics (Instrumentation) - 2.8%
1,220 Agilent Technologies Inc.* $ 90,010
2,300 Intel Corp. 307,481
3,400 Texas Instruments, Inc. 233,538
----------
$ 631,029
----------
Equipment (Semiconductors) - 0.5%
2,000 Novellus Systems, Inc.* $ 113,125
----------
Services (Computer Systems) - 1.0%
3,200 Computer Sciences Corp.* $ 239,000
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Services (Data Processing) - 0.8%
1,500 Automatic Data Processing, Inc. $ 80,343
2,700 Electronic Data Systems Corp. 111,375
-----------
$ 191,718
-----------
Total Technology $ 7,001,167
-----------
Transportation - 2.0%
Airlines - 1.5%
1,100 AMR Corp.* $ 29,081
16,000 Southwest Airlines Co. 303,000
-----------
$ 332,081
-----------
Railroads - 0.5%
8,500 Norfolk Southern Corp. $ 126,438
-----------
Total Transportation $ 458,519
-----------
Utilities - 0.3%
Natural Gas - 0.3%
1,100 Enron Corp. $ 70,950
-----------
Total Utilities $ 70,950
-----------
TOTAL COMMON STOCKS
(Cost $21,227,087) $22,233,964
-----------
Principal
Amount
TEMPORARY CASH INVESTMENT - 2.4%
Commercial Paper - 2.4%
$ 548,000 Household Finance Corp., 6.88%, 7/3/00 $ 548,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $548,000) $ 548,000
-----------
TOTAL INVESTMENTS IN SECURITIES - 100.0%
(Cost $21,775,087) (a) $22,781,964
===========
</TABLE>
<TABLE>
<S> <C>
* Non-income producing security.
(a) At June 30, 2000, the net unrealized gain on investments based on cost for federal income tax
purposes of $21,775,087 was as follows:
Aggregate gross unrealized gain for all investments in which there
is an excess of value over tax cost $2,323,119
Aggregate gross unrealized loss for all investments in which there
is an excess of tax cost over value (1,316,242)
----------
Net unrealized gain $1,006,877
==========
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended June 30, 2000 aggregated $16,393,462 and $31, respectively.
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
BALANCE SHEET 6/30/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investment in securities, at value (including temporary cash investment
of $548,000) (cost $21,775,087) $22,781,964
Cash 1,314
Receivables--
Fund shares sold 387,239
Dividends 14,060
-----------
Total assets $23,184,577
-----------
LIABILITIES:
Payables--
Investment securities purchased $ 372,719
Fund shares repurchased 250
Due to affiliates 40,202
Accrued expenses 72,264
-----------
Total liabilities $ 485,435
-----------
NET ASSETS:
Paid-in capital $21,766,913
Accumulated net investment loss (74,632)
Accumulated net realized loss on investments (16)
Net unrealized gain on investments 1,006,877
-----------
Total net assets $22,699,142
===========
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $9,580,941/886,572 shares) $ 10.81
===========
Class B (based on $7,896,575/734,988 shares) $ 10.74
===========
Class C (based on $5,221,626/485,337 shares) $ 10.76
===========
MAXIMUM OFFERING PRICE:
CLASS A $ 11.47
===========
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended 6/30/00
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends $79,716
Interest 15,669
-------
Total investment income $ 95,385
--------
EXPENSES:
Management fees $58,693
Transfer agent fees
Class A 6,032
Class B 4,317
Class C 1,433
Distribution fees
Class A 6,874
Class B 28,488
Class C 16,943
Administrative fees 15,651
Custodian fees 20,417
Registration fees 24,934
Professional fees 21,840
Printing 11,620
Fees and expenses of nonaffiliated trustees 9,800
Miscellaneous 4,003
-------
Total expenses $231,045
Less management fees waived and expenses reimbursed
by Pioneer Investment Management, Inc. (54,473)
Less fees paid indirectly (6,555)
--------
Net expenses $170,017
--------
Net investment loss $(74,632)
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized loss on investments $ (16)
Change in net unrealized gain on investments 799,165
--------
Net increase in net assets resulting from operations $724,517
========
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
For the Six Months Ended 6/30/00 and the Period Ended 12/31/99
<TABLE>
<CAPTION>
Six Months Ended
6/30/00 11/18/99 to
(unaudited) 12/31/99
<S> <C> <C>
FROM OPERATION
Net investment loss $ (74,632) $ (3,028)
Net realized loss on investments (16) --
Change in net unrealized gain on investments 799,165 207,712
----------- ----------
Net increase in net assets resulting from
operations $ 724,517 $ 204,684
----------- ----------
FROM FUND SHARE TRANSACTION
Net proceeds from sale of shares $18,655,283 $5,307,963
Cost of shares repurchased (2,226,468) (66,837)
----------- ----------
Net increase in net assets resulting from
fund share transactions $16,428,815 $5,241,126
----------- ----------
Net increase in net assets $17,153,332 $5,445,810
NET ASSETS:
Beginning of period 5,545,810 100,000
----------- ----------
End of period (including accumulated net
investment loss of $74,632 and $0, respectively) $22,699,142 $5,545,810
=========== ==========
</TABLE>
<TABLE>
<CAPTION>
'00 Shares '00 Amount
(unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
CLASS A
Shares sold 759,196 $7,942,280 219,952 $2,238,711
Less shares repurchased (98,576) (1,029,764) -- --
------- ---------- ------- -----------
Net increase 660,620 $6,912,516 219,952 $2,238,711
------- ---------- ------- -----------
CLASS B
Shares sold 614,897 $6,354,752 208,761 $2,115,331
Less shares repurchased (92,582) (964,423) (88) (875)
------- ---------- ------- -----------
Net increase 522,315 $5,390,329 208,673 $2,114,456
------- ---------- ------- -----------
CLASS C
Shares sold 419,717 $4,358,251 93,994 $ 953,921
Less shares repurchased (21,964) (232,281) (6,410) (65,962)
------- ---------- ------- -----------
Net increase 397,753 $4,125,970 87,584 $ 887,959
------- ---------- ------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended 6/30/00 11/18/99 to
(unaudited) 12/31/99
<S> <C> <C>
CLASS A
Net asset value, beginning of period $10.55 $10.00
------ -------
Increase (decrease) from investment operations:
Net investment loss $(0.02) $(0.00)(a)
Realized and unrealized gain on investments 0.28 0.55
-------- --------
Net increase in net asset value $ 0.26 $ 0.55
-------- --------
Net asset value, end of period $10.81 $10.55
-------- ---------
Total return* 2.46% 5.50%
Ratio of net expenses to average net assets 1.82%**+ 1.75%**
Ratio of net investment loss to average net assets (0.60)%**+ (0.55)%**
Portfolio turnover rate 0% 0%
Net assets, end of period (in thousands) $9,581 $2,384
Ratios assuming no waiver of management fees
and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 2.52%** 8.74%**
Net investment loss (1.30)%** (7.54)%**
Ratios assuming waiver of management fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 1.75%** 1.75%**
Net investment loss (0.53)%** (0.55)%**
</TABLE>
(a) Amount rounds to less than one cent per share.
* 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 Tax-Managed Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended 6/30/00 11/18/99 to
(unaudited) 12/31/99
<S> <C> <C>
CLASS B
Net asset value, beginning of period $10.52 $10.00
------- -------
Increase (decrease) from investment operations:
Net investment loss $(0.05) $(0.01)
Realized and unrealized gain on investments 0.27 0.53
------ -------
Net increase in net asset value $ 0.22 $ 0.52
------ -------
Net asset value, end of period $10.74 $10.52
------ -------
Total return* 2.09% 5.20%
Ratio of net expenses to average net assets 2.56%**+ 2.60%**
Ratio of net investment loss to average net assets (1.35)%**+ (1.42)%**
Portfolio turnover rate 0% 0%
Net assets, end of period (in thousands) $7,897 $2,238
Ratios assuming no waiver of management fees
and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 3.27%** 8.41%**
Net investment loss (2.06)%** (7.23)%**
Ratios assuming waiver of management fees and assumption of expenses by PIM
and reduction for fees paid indrectly:
Net expenses 2.49%** 2.60%**
Net investment loss (1.28)%** (1.42)%**
</TABLE>
* 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.
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended 6/30/00 11/19/99 to
(unaudited) 12/31/99
<S> <C> <C>
CLASS C
Net asset value, beginning of period $10.54 $10.00
------- -------
Increase (decrease) from investment operations:
Net investment loss $(0.04) $(0.01)
Realized and unrealized gain on investments 0.26 0.55
------- -------
Net increase in net asset value $ 0.22 $ 0.54
------- -------
Net asset value, end of period $10.76 $10.54
------- -------
Total return* 2.09% 5.40%
Ratio of net expenses to average net assets 2.52%**+ 2.25%**
Ratio of net investment loss to average net assets (1.31)%**+ (1.06)%**
Portfolio turnover rate 0% 0%
Net assets, end of period (in thousands) $5,222 $ 924
Ratios assuming no waiver of management fees
and assumption of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 3.16%** 8.67%**
Net investment loss (1.95)%** (7.48)%**
Ratios assuming waiver of management fees and assumption of expenses by PIM
and reduction for fees paid indirectly:
Net expenses 2.42%** 2.25%**
Net investment loss (1.21)%** (1.06)%**
</TABLE>
* 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.
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (unaudited)
--------------------------------------------------------------------------------
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 objectives 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.
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 has 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 periods. Actual results could differ from those
estimates. The following is a summary of significant accounting policies
consistently followed by the Fund, which are in conformity with those generally
accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. The net asset value is
computed 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 valued
at their fair values as determined by, or under the direction of, the Board
21
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
of Trustees. Dividend income is recorded on the ex-dividend date and interest
income, including interest on income bearing cash accounts, 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. PFD,
the principal underwriter for the Fund and an indirect subsidiary of The
Pioneer Group, Inc. (PGI), earned $9,158 in underwriting commissions on the
sale of fund shares during the six months ended June 30, 2000.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset
values 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
22
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(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.
E. Repurchase Agreement
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, Pioneering Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
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 0.75% 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. At June 30, 2000, $24,818
23
<PAGE>
Pioneer Tax-Managed Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (unaudited) (continued)
--------------------------------------------------------------------------------
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 $2,801 in transfer agent fees payable to PSC at June 30, 2000.
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 $12,583
in distribution fees payable to PFD at June 30, 2000.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of purchase.
Class B shares that are redeemed within six years of purchase are subject to a
CDSC at declining rates beginning at 4.00%, based on the lower of cost or market
value of shares being redeemed. 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 June 30, 2000, CDSCs in the amount of $16,764 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 June 30, 2000,
the Fund's expenses were reduced by $6,555 under such arrangements.
24
<PAGE>
Pioneer Tax-Managed 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
Margaret B.W. Graham President
Marguerite A. Piret John A. Carey, Vice President
David D. Tripple Eric W. Reckard, Treasurer
Stephen K. West Joseph P. Barri, Secretary
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
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 came about as part of the Taxpayer Relief Act of 1997 and became
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 $10,500 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 the plan; it
resembles the traditional 401(k), but has no 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 certain 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
Boston, Massachusetts 02109 8642-00-0800
www.pioneerfunds.com (C) Pioneer Funds Distributor, Inc.
[recycle] Printed on Recycled Paper
