<PAGE>
DEAR FELLOW SHAREOWNERS,
--------------------------------------------------------------------------------
Pioneer Bond Fund ended its 17th fiscal year on June 30, 1995. It was an unusual
year for bond investing; the first few months included interest rate increases,
inflationary fears, a strongly paced economy, and as a result, falling bond
prices. Conditions improved in 1995, however, as foreign central banks purchased
a large volume of U.S. government bonds to help strengthen the weak U.S. dollar.
This action -- followed later in the period by signs of an economic slowdown,
expectations of lower interest rates and continued low inflation -- caused bond
prices to rebound and move sharply higher.
HOW YOUR FUND PERFORMED
For the year ended June 30, 1995, we are pleased to report the following
results:
- Class A shares -- The Fund paid shareowners daily dividends totaling $0.165
per share during the quarter, bringing the total dividend payout to $0.676
for the fiscal year. The Fund's 30-day SEC yield was 5.80% on June 30, 1995.
Net asset value stood at $9.35 per share, versus $9.04 one year ago. The
Fund's total return was 11.48% based on net asset value and assuming the
reinvestment of distributions.
- Class B shares -- The Fund paid shareowners a total of $0.159 per share in
daily dividends during the quarter, bringing the Fund's total dividend payout
for the year to $0.619. On June 30, 1995, the Fund's 30-day SEC yield was
5.29%. Net asset value stood at $9.31 per share, versus $9.02 one year ago.
The Fund's total return for the period was 10.57% assuming shares were held
throughout the period and distributions were reinvested.
For additional performance information, please turn to pages 4 and 5.
BOND PRICES MOVED HIGHER
AS YEAR PROGRESSED
In response to ongoing inflationary fears, the Federal Reserve (the Fed) raised
short-term interest rates three times during the period. The federal funds rate
(what banks charge each other for overnight loans) moved from 4.25% to 4.75% on
August 16, increased to 5.5% on November 15, and finally hit a three-year high
of 6% on February 1. Bond investors reacted negatively to the first two rate
hikes, particularly since many economic indicators (such as rising productivity
costs and strong employment figures) indicated that the economy still was
gaining strength, despite the Fed's intervention. The intent of the Fed was to
slow the pace of economic growth and quell inflationary fears; instead, it
helped trigger market turmoil, causing bond prices to fall during the first few
months of your Fund's fiscal year.
Moving into 1995, however, the Fed's actions began to have an impact on the pace
of economic growth. While indicators sent mixed signals about the true strength
of the economy, enough signs pointed to a slowdown (for example, home sales,
consumer spending, construction spending) for the Fed -- and investors -- to
become less concerned about higher inflation. Investors became optimistic about
the bond market, sending prices higher. Even the Fed's rate hike on February 1
was viewed as favorable, since it showed the Fed's resolve to keep inflation and
the economy under control. (Subsequently, on July 6, the Fed cut short-term
interest rates by one quarter of one percent in an attempt to keep the economy
from slowing too much.) Reflecting this renewed optimism, longer-term interest
rates began to trend lower. The yield on 30-year Treasury bonds, which stood at
7.6% on June 30, 1994, had moved down to 6.6% by the end of the fiscal year.
<PAGE>
A FOCUS ON QUALITY
Pioneer Bond Fund's objective is to provide current income by investing in U.S.
government and high-quality corporate bonds. Your Fund invests solely in
securities issued by the U.S. government or its agencies, and corporate bonds
rated AAA to BBB. At least 85% of the portfolio must be in bonds rated A or
better. Over the year, the Fund maintained a conservative AA average quality
rating. As of June 30, 43% of the portfolio was invested in government and
agency securities.
Your Fund remains broadly diversified. As the year progressed, we slightly
decreased exposure to the corporate sector in reaction to the Fed's active
stance on economic growth. We want to minimize the likelihood that a slower
economy will lead to a slowdown in earnings growth for companies in the
portfolio. Two areas, however, where we generally saw strong performance over
the year -- despite a slower economy -- were the bank/finance and industrial
sectors. Because they are not subject to the level of regulation found in many
other industries (such as utilities), they continued to experience strong profit
earnings. We are optimistic that the bank and industrial bonds in the portfolio
will perform especially well, and we expect that the Fund's other corporate
holdings also will add value going forward.
The accompanying chart shows the portfolio's diversification at the end of the
period.
PORTFOLIO DIVERSIFICATION
(as of June 30, 1995)
Short-Term Cash Equivalents 1%
U.S Goverment Agency 43%
Banks 15%
Utilities 4%
Industrial 21%
Financial 10%
International 6%
As of June 30, 34% of the Fund's portfolio was invested in securities with more
than 10 years to maturity, with the same percentage in holdings with fewer than
five years to maturity. This brought the Fund's average life to 11 years, about
where it stood one year ago. As interest rates moved up and bond conditions
worsened during the year, your management slightly lowered the average maturity
to reduce price volatility and better protect the Fund's share price. Only as
conditions improved did we again extend the portfolio's average maturity.
However, we were careful not to move the Fund's maturity too dramatically,
because we want to be confident that higher bond prices will likely be
sustainable moving forward. We think the Fund's current mix of short- and
long-term maturities makes sense; the former work to lower volatility, while the
latter help enhance the Fund's total return. The accompanying chart shows the
maturity of portfolio holdings as of June 30.
PORTFOLIO MATURITY
(as of June 30, 1995)
0-2 years 13%
2-5 years 21%
5-7 years 18%
7-10 years 14%
10-20 years 6%
20+ years 28%
LOOKING AHEAD
Bond investors will not soon forget the past year. Those who held their ground
and remained in the market saw the value of their investments recover -- and
then move higher -- after an unusually severe period of decline. While such
rollercoaster results are not what we expect from bond investing, they do
demonstrate the benefit of maintaining a long-term, disciplined outlook, rather
than jumping in and out of the market.
2
<PAGE>
As Pioneer Bond Fund begins its 18th
fiscal year, your management will
remain active in monitoring and
adjusting the Fund's portfolio. We
believe that maintaining a
conservative portfolio of high-quality
securities will help keep Fund
shareowners on track to receive
current income with an element of
capital preservation.
The following pages show the audited
Schedule of Investments and financial
statements as of June 30, 1995. If you
have any questions about your
investment in Pioneer Bond Fund,
please contact your investment
representative, or call Pioneer at
1-800-225-6292.
Respectfully,
[SIGNATURE]
John F. Cogan, Jr.
Chairman and President,
Pioneer Bond Fund
August 11, 1995
3
<PAGE>
--------------------------------------------------------------------------------
Growth of a $10,000 Investment*
This chart shows the growth of a $10,000 investment made in Pioneer Bond Fund
(Class A) at public offering price, compared with the growth of the Lehman
Brothers Government/Corporate Bond Index.
(GRAPH OF PIONEER BOND FUND (CLASS A)
* Reflects deduction of the maximum 4.5% sales charge at the beginning of
the period and assumes reinvestment of all distributions at net asset
value.
The Lehman Brothers Government/Corporate Bond Index is an unmanaged,
composite index of the U.S. bond market. It contains 4,464 issues,
including Treasury and government agency securities, investment-grade
corporate bonds and Yankee bonds.
Past performance does not guarantee future results. Returns and share
prices fluctuate, and your shares, when redeemed, may be worth more or
less than their original cost.
4
<PAGE>
--------------------------------------------------------------------------------
Growth of a $10,000 Investment**
This chart shows the growth of a $10,000 investment made in Pioneer Bond Fund
(Class B) compared with the growth of the Lehman Brothers Government/Corporate
Bond Index.
(GRAPH OF PIONEER BOND FUND (CLASS B)
** Reflects deduction of the maximum 4.0% contingent deferred sales charge
at the end of the period and assumes reinvestment of all distributions
at net asset value.
The Lehman Brothers Government/Corporate Bond Index is an unmanaged,
composite index of the U.S. bond market. It contains 4,464 issues,
including Treasury and government agency securities, investment-grade
corporate bonds and Yankee bonds.
Past performance does not guarantee future results. Returns and share
prices fluctuate, and your shares, when redeemed, may be worth more or
less than their original cost.
5
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS -- PIONEER BOND FUND -- JUNE 30, 1995
--------------------------------------------------------------------------------
<CAPTION>
S&P/MOODY'S
PRINCIPAL RATINGS
AMOUNT (UNAUDITED) VALUE
----------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
INVESTMENT IN SECURITIES -- 99.1%
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 42.5%
$ 107,468 Federal Home Loan Mortgage Corp., 10.0%, 2002............. $ 111,598
205,897 Federal Home Loan Mortgage Corp., 10.5%, 2019............. 222,496
228,850 Federal Home Loan Mortgage Corp., REMIC Series 1988-24B,
9.5%, 2005................................................ 239,507
1,000,000 Federal National Mortgage Association, 8.8%, 1997......... 1,053,750
1,000,000 Federal National Mortgage Association, 9.2%, 1997......... 1,058,590
1,500,000 Federal National Mortgage Association, 9.2%, 2000......... 1,698,045
138,949 Federal National Mortgage Association, 10.0%, 2019........ 150,846
1,000,000 Federal National Mortgage Association, 10.35%, 2015....... 1,357,660
1,000,000 Federal National Mortgage Association, 10.6%, 1995........ 1,018,590
864,865 Federal National Mortgage Association, 11.0%, 2019........ 944,865
839,142 Federal National Mortgage Association, REMIC Series 1989-
19A, 10.3%, 2019.......................................... 909,026
7,751 Federal National Mortgage Association, REMIC Series 1989-
19B, 10.3%, 2019.......................................... 8,851
111,408 Government National Mortgage Association, 9.5%, 2020...... 116,700
640,116 Government National Mortgage Association, 10.0%, 2004 to
2006...................................................... 673,920
1,114,796 Government National Mortgage Association, 10.0%, 2018 to
2020...................................................... 1,209,972
1,000,000 Resolution Trust Corp., Series 1992-5A6, 9.24%, 2026...... 1,010,000
500,000 Student Loan Marketing Association, 9.8%, 2000............ 504,140
3,025,000 U.S. Treasury Notes, 8.25%, 1998.......................... 3,218,781
2,565,000 U.S. Treasury Notes, 8.5%, 1997........................... 2,689,190
1,000,000 U.S. Treasury Notes, 10.5%, 1995.......................... 1,005,310
2,000,000 U.S. Treasury Notes, 7.5%, 2001........................... 2,146,880
7,000,000 U.S. Treasury Notes, 7.5%, 2005........................... 7,622,370
5,000,000 U.S. Treasury Bonds, 8.75%, 2008.......................... 5,758,600
5,000,000 U.S. Treasury Bonds, 8.75%, 2020.......................... 6,208,600
7,000,000 U.S. Treasury Bonds, 8.00%, 2021.......................... 8,081,710
------------
Total (Cost $47,814,252)......................... $ 49,019,997
------------
INDUSTRIALS -- 21.1%
$ 1,000,000 A-/A2 Alcan Aluminum, Ltd., Deb., 9.625%, 2019.................. $ 1,129,070
1,000,000 A/A3 Arco Chemical Co., Deb., 9.8%, 2020....................... 1,260,850
500,000 A/A2 Atlantic Richfield Co., Deb., 9.875%, 2016................ 633,155
1,200,000 BBB/Baa3 Centex Corp., Deb., 8.75%, 2007........................... 1,280,148
1,500,000 BB+/Baa3 Coastal Corp., Deb., 9.625%, 2012......................... 1,704,945
2,000,000 BBB+/Baa1 General Motors Corp., Notes, 9.40%, 2021.................. 2,387,800
1,000,000 BBB-/Baa3 Georgia-Pacific Corp., Deb., 9.5% , 2022.................. 1,108,730
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS --PIONEER BOND FUND --
JUNE 30, 1995 -- (CONTINUED)
--------------------------------------------------------------------------------
<CAPTION>
S&P/MOODY'S
PRINCIPAL RATINGS
AMOUNT (UNAUDITED) VALUE
----------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
INDUSTRIALS -- (CONTINUED)
$ 1,000,000 AA/Aa3 Norfolk Southern Corp., Notes, 9.0%, 2021................. $ 1,204,520
1,000,000 A+/A2 Penney (J.C.) Company, Inc., Deb., 9.75%, 2021............ 1,145,830
2,000,000 BBB/Baa2 Phillips Petroleum Co., Deb., 9.18%, 2021................. 2,183,200
1,500,000 AA/Aa2 Procter & Gamble Co., Notes, 9.36%, 2021.................. 1,827,825
1,500,000 BBB-/Baa2 Tenneco, Inc., Notes, 9.875%, 2001........................ 1,711,440
1,250,000 A+/A1 Texaco Capital Corp., Gtd. Deb., 9.75%, 2020.............. 1,584,363
2,000,000 BBB-/Ba1 Time Warner Inc., Deb., 9.15%, 2023....................... 2,074,340
1,000,000 BB+/Baa3 USX Corp. - U.S. Steel Group, Deb., 9.375%, 2012.......... 1,080,820
2,000,000 BBB/Ba1 Westinghouse Electric Corp., Deb., 8.625%, 2012........... 2,077,020
------------
Total (Cost $23,056,150)......................... $ 24,394,056
------------
FINANCIALS -- 10.4%
$ 1,000,000 AA-/Aa3 Associates Corp of North America, Sr. Notes, 10.75%,
1995...................................................... $ 1,014,080
1,000,000 AA-/Aa3 Berkley W.R., Deb., 8.70%, 2022........................... 1,074,890
1,500,000 AA/Aa3 GEICO Corp., Deb., 9.15%, 2021............................ 1,664,790
1,000,000 A-/A3 Household Finance Corp., Sr. Sub. Notes, 10.125%, 1996.... 1,034,030
1,000,000 A/A3 ITT Financial Corp., Sr. Deb., 10.125%, 1999.............. 1,117,150
500,000 AA/Aa3 SAFECO Corp., Notes, 10.75%, 1995......................... 504,060
2,000,000 AAA/Aaa Standard Credit Card Master Trust Series 1991-3A, 8.875%,
1999*..................................................... 2,125,620
2,000,000 AAA/Aaa Standard Credit Card Trust Series 1990-6A, 9.375%,
1997*..................................................... 2,110,000
253,000 A/A3 Transamerica Financial Corp., Jr. Sub. Notes, 11.0%,
1995...................................................... 255,231
1,000,000 A/A2 Transamerica Corp., Notes, 9.875%, 1998................... 1,078,100
------------
Total (Cost $11,919,322)......................... $ 11,977,951
------------
BANKS -- 15.2%
$ 1,000,000 A+/A1 Banc One Corp., Sub. Notes, 10.0%, 2010................... $ 1,244,850
1,000,000 A-/A3 BankAmerica Corp., Sub. Notes, 9.375%, 2001............... 1,117,000
1,000,000 AA-/Aa3 Barclays North American Capital Corp., Gtd. Sub. Cap.
Notes, 9.75%, 2021........................................ 1,145,590
1,000,000 A-/A3 Chemical Banking Corp., Sub. Notes, 8.5%, 2002............ 1,082,480
1,000,000 A-/A3 Chemical NY Corp., Sub. Notes, 9.75%, 1999................ 1,105,610
1,233,000 A-/A3 Citicorp, Sub. Notes, 10.75%, 2015........................ 1,306,511
1,250,000 A-/A3 Comerica Inc., Sub. Deb., 10.125%, 1998................... 1,366,463
1,550,000 A-/A2 CoreStates Capital Corp., Gtd. Sub. Notes, 9.375%, 2003... 1,766,364
1,500,000 A-/A3 First Chicago Corp., Sub. Notes, 10.25%, 2001............. 1,739,715
1,500,000 BBB+/A3 Fleet/Norstar Financial Group, Sub. Notes, 9.9%, 2001..... 1,712,070
1,000,000 A-/A3 Mellon Financial, Sub. Deb., 9.75%, 2001.................. 1,144,630
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS --PIONEER BOND FUND --
JUNE 30, 1995 -- (CONTINUED)
--------------------------------------------------------------------------------
<CAPTION>
S&P/MOODY'S
PRINCIPAL RATINGS
AMOUNT (UNAUDITED) VALUE
----------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
BANKS -- (CONTINUED)
$ 1,000,000 AA+/Aa2 Morgan (J.P.) & Co., Sub. Notes, 9.625%, 1998............. $ 1,013,600
1,000,000 AA-/Aa3 National Westminster Bancorp Inc., Gtd. Cap. Notes,
9.375%, 2003.............................................. 1,148,540
500,000 AA-/A1 Republic New York Corp., Sub. Notes, 9.3%, 2021........... 607,080
------------
Total (Cost $16,376,279)......................... $ 17,500,503
------------
UTILITIES -- ELECTRIC -- 1.8%
$ 500,000 AAA/Aaa Cajun Electric Power, Cooperative Utility Trust, 10.125%,
2019...................................................... $ 558,125
377,000 A+/A1 Mississippi Power Co., First Mortgage Bonds, 9.25%,
2021+..................................................... 402,907
990,000 AAA/Aaa Public Service Electric & Gas Co., First Mortgage Bonds,
9.75%, 2020+.............................................. 1,071,289
------------
Total (Cost $1,968,087).......................... $ 2,032,321
------------
UTILITIES -- NATURAL GAS -- 1.0%
$ 1,000,000 A-/Baa1 ONEOK Inc., Deb., 9.7%, 2019.............................. $ 1,150,870
------------
Total (Cost $997,500)............................ $ 1,150,870
------------
UTILITIES -- TELEPHONE -- 1.0%
1,000,000 BBB+/A3 GTE Corp., Deb., 10.3%, 2017.............................. $ 1,143,620
------------
Total (Cost $1,068,660).......................... $ 1,143,620
------------
CANADIAN -- 2.5%
$ 500,000 A+/A1 Bell Telephone Co. of Canada, Deb., 13.375%, 2010......... $ 535,560
500,000 AA+/Aa1 British Columbia Hydro Power, Bonds, 15.5%, 2011.......... 589,810
500,000 AA-/Aa3 Province of Ontario, Deb., 15.75%, 2012................... 599,730
1,000,000 BBB+/A2 Province of Saskatchewan, Deb., 9.375%, 2020.............. 1,217,820
------------
Total (Cost $2,838,370).......................... $ 2,942,920
------------
SOVEREIGNS AND SUPRANATIONALS -- 3.6%
$ 1,000,000 AAA/Aaa Inter-American Development Bank, Notes, 9.45%, 1998....... $ 1,092,440
2,000,000 AAA/Aaa International Bank for Reconstruction and Development,
Deb., 9.25%, 2017......................................... 2,477,980
500,000 AAA/Aaa Tokyo (Metropolis of), Gtd. Bonds, 10.375%, 1997.......... 542,725
------------
Total (Cost $3,883,087).......................... $ 4,113,145
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $109,921,707)(a)(b)................................. $114,275,383
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS --PIONEER BOND FUND --
JUNE 30, 1995 -- (CONTINUED)
--------------------------------------------------------------------------------
<CAPTION>
S&P/MOODY'S
PRINCIPAL RATINGS
AMOUNT (UNAUDITED) VALUE
----------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
TEMPORARY CASH INVESTMENT -- 0.9%
$ 1,015,000 Household Financial Corp., 6.08%, 07/03/95................ $ 1,015,514
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,015,000)......................................... $ 1,015,514
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT -- 100%
(Cost $110,936,707)....................................... $115,290,897
============
<FN>
* Asset-backed security.
+ Entire bond, or a portion thereof, was called on July 3, 1995.
(a) At June 30, 1995, the net unrealized appreciation on investments based on
cost for federal tax purposes of $109,921,707 was as follows:
</FN>
</TABLE>
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all investments in which there is an excess of value
over the tax cost................................................................................ $5,399,655
Aggregate gross unrealized depreciation for all investments in which there is an excess tax cost
over the value................................................................................... (1,045,979)
----------
Net unrealized appreciation....................................................................... $4,353,676
==========
<FN>
(b) At June 30, 1995, the Fund had a net capital loss carryforward of
approximately $2,956,000 which will expire between 1998 and 2003 if not
utilized.
Note: The Fund's investments in mortgage-backed securities of the Government
National Mortgage Association (GNMA) are interests in separate pools of
mortgages. All separate investments in this issuer which have the same
coupon rate have been aggregated for the purpose of presentation in this
schedule of investments.
</FN>
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
year ended June 30, 1995 aggregated approximately $45,737,000 and $39,440,000,
respectively.
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
<TABLE>
BALANCE SHEET -- JUNE 30, 1995
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
--------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash investments of $1,016)
(cost $110,937; see Schedule of Investments and Note 1).............................. $115,291
Cash.................................................................................. 1
Receivables --
Interest........................................................................... 2,511
Trust shares sold.................................................................. 227
Other................................................................................. 5
--------
Total assets..................................................................... $118,035
--------
LIABILITIES:
Payables --
Trust shares repurchased........................................................... 246
Dividends.......................................................................... 176
Accrued expenses --
Management fees (Note 2)........................................................... 10
Other (Notes 2, 3 and 4)........................................................... 107
--------
Total liabilities................................................................ $ 539
--------
NET ASSETS:
Paid-in capital (Note 1).............................................................. $116,031
Accumulated undistributed net investment income....................................... 67
Accumulated net realized loss on investments.......................................... (2,956)
Net unrealized gain on investments.................................................... 4,354
--------
Total net assets................................................................. $117,496
========
NET ASSET VALUE PER SHARE:
Class A -- (based on $110,158/11,784,329 shares of beneficial interest outstanding --
unlimited number of shares authorized with no par value)............................. $ 9.35
========
Class B -- (based on $7,338/788,493 shares of beneficial interest outstanding --
unlimited number of share authorized with no par value).............................. $ 9.31
========
MAXIMUM OFFERING PRICE:
Class A............................................................................... $ 9.79
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED JUNE 30, 1995
(DOLLARS IN THOUSANDS)
--------------------------------------------------------------------------------
INVESTMENT INCOME (NOTE 1):
<S> <C>
Interest................................................................................ $ 9,425
-------
EXPENSES:
Management fees (Note 2)................................................................ $ 546
Distribution fees (Note 4)
Class A.............................................................................. 211
Class B.............................................................................. 38
Transfer agent fees (Note 3)
Class A.............................................................................. 165
Class B.............................................................................. 8
Registration fees....................................................................... 42
Professional fees....................................................................... 77
Accounting (Note 2)..................................................................... 102
Custodian fees.......................................................................... 23
Printing................................................................................ 12
Fees and expenses of nonaffiliated trustees............................................. 16
Miscellaneous........................................................................... 31
-------
Total expenses..................................................................... $ 1,271
-------
Net investment income............................................................ $ 8,154
-------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments........................................................ $(2,542)
Decrease in unrealized loss on investments.............................................. 6,452
-------
Net gain on investments............................................................ $ 3,910
-------
Net increase in net assets resulting from operations............................. $12,064
=======
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1995 AND 1994
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
--------------------------------------------------------------------------------
<CAPTION>
YEAR YEAR
ENDED ENDED
JUNE 30, JUNE 30,
1995 1994
------------ --------
<S> <C> <C>
FROM OPERATIONS:
Net investment income................................................. $ 8,154 $ 7,903
Net realized gain (loss) on investments............................... (2,542) 963
Increase (decrease) in net unrealized gain (loss) on investments...... 6,452 (10,239)
-------- --------
Net increase (decrease) in net assets resulting from
operations..................................................... $ 12,064 $ (1,373)
-------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ($0.68 and 0.67 per share, respectively)................. $ (7,889) $ (7,859)
Class B ($0.62 and 0.14 per share, respectively)................. (258) (7)
-------- --------
$ (8,147) $ (7,866)
-------- --------
FROM TRUST SHARE TRANSACTIONS:
Net proceeds from sale of shares...................................... $ 26,148 $ 29,962
Net asset value of shares issued to shareholders in reinvestment of
dividends............................................................ 6,063 5,848
Cost of shares repurchased............................................ (26,503) (31,600)
-------- --------
Increase in net assets resulting from trust share transactions... $ 5,708 $ 4,210
-------- --------
Net increase (decrease) in net assets............................ $ 9,625 $ (5,029)
NET ASSETS:
Beginning of year..................................................... $107,871 $112,900
-------- --------
End of year (including undistributed net investment income of $67 and
$60, respectively)................................................... $117,496 $107,871
======== ========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 1995 JUNE 30, 1994
--------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ---------- ------------ --------
<S> <C> <C> <C> <C>
CLASS A
Shares sold............................... 2,143,981 $ 19,180 2,927,226 $ 28,467
Shares issued to shareholders in
reinvestment of distributions........... 654,382 5,880 606,070 5,842
Less shares repurchased................... (2,814,975) (25,231) (3,236,890) (31,333)
---------- ---------- ---------- --------
Net increase (decrease).............. (16,612) $ (171) 296,406 $ 2,976
========== ========== ========== ========
CLASS B*
Shares sold............................... 773,773 $ 6,968 163,094 $ 1,495
Shares issued to shareholders in
reinvestment of distributions........... 20,268 183 710 6
Less shares repurchased................... (139,897) (1,272) (29,455) (267)
---------- ---------- ---------- --------
Net increase......................... 654,144 $ 5,879 134,349 $ 1,234
========== ========== ========== ========
<FN>
* Class B shares were first publicly offered on April 4, 1994.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
--------------------------------------------------------------------------------
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
---------------------------------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value,
beginning of
year............ $ 9.040 $ 9.810 $ 9.370 $ 8.990 $ 8.920 $ 9.180 $ 9.040 $ 9.220 $ 9.620 $ 9.250
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
Increase
(decrease) from
investment
operations:
Net investment
income........ $ 0.678 $ 0.671 $ 0.704 $ 0.743 $ 0.788 $ 0.813 $ 0.812 $ 0.807 $ 0.827 $ 0.940
Net realized and
unrealized
gain (loss) on
investments... 0.308 (0.773) 0.440 0.387 0.071 (0.268) 0.140 (0.179) (0.397) 0.410
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
Total
increase
(decrease)
from
investment
operations... $ 0.986 $ (0.102) $ 1.144 $ 1.130 $ 0.859 $ 0.545 $ 0.952 $ 0.628 $ 0.430 $ 1.350
Distributions to
shareholders
from:
Net investment
income........ (0.676) (0.668) (0.704) (0.750) (0.789) (0.805) (0.812) (0.808) (0.830) (0.980)
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
Net increase
(decrease) in
net asset
value........... $ 0.310 $ (0.770) $ 0.440 $ 0.380 $ 0.070 $(0.260) $ 0.140 $(0.180) $(0.400) $ 0.370
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
Net asset value,
end of year..... $ 9.350 $ 9.040 $ 9.810 $ 9.370 $ 8.990 $ 8.920 $ 9.180 $ 9.040 $ 9.220 $ 9.620
======== ======== ======== ======== ======= ======= ======= ======= ======= =======
Total return*.... 11.48% (1.26%) 12.67% 13.03% 10.13% 6.24% 11.17% 7.16% 4.57% 15.33%
Ratio of net
operating
expenses to
average net
assets.......... 1.14% 1.05% 1.10% 1.09% 1.02% 0.88% 0.86% 0.88% 0.86% 1.00%
Ratio of net
investment
income to
average net
assets.......... 7.55% 6.93% 7.37% 8.04% 8.82% 9.01% 8.99% 8.90% 8.45% 10.27%
Portfolio
turnover rate... 37% 39% 37% 17% 20% 34% 34% 20% 19% 27%
Net assets, end
of year (in
thousands)...... $110,158 $106,659 $112,900 $102,503 $76,476 $74,137 $64,261 $53,090 $50,909 $29,923
<FN>
* 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.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
--------------------------------------------------------------------------------
<CAPTION>
YEAR PERIOD
ENDED ENDED
JUNE 30, JUNE 30,
1995 1994
---------- ---------
<S> <C> <C>
CLASS B***
Net asset value, beginning of period..................................... $ 9.020 $ 9.230
--------- ---------
Increase (decrease) from investment operations:
Net investment income.................................................. $ 0.604 $ 0.143
Net realized and unrealized gain (loss) on investments................. 0.305 (0.212)
--------- ---------
Total increase (decrease) from investment operations............... $ 0.909 $ (0.069)
Distributions to shareholders from:
Net investment income.................................................. (0.619) (0.141)
--------- ---------
Net increase (decrease) in net asset value............................... $ 0.290 $ (0.210)
--------- ---------
Net asset value, end of period........................................... $ 9.310 $ 9.020
========= =========
Total return*............................................................ 10.57% (0.73%)
Ratio of net operating expenses to average net assets.................... 1.97% 1.92%**
Ratio of net investment income to average net assets..................... 6.60% 6.09%**
Portfolio turnover rate.................................................. 37% 39%
Net assets, end of period (in thousands)................................. $ 7,338 $ 1,212
<FN>
* 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.
*** Class B shares were publicly offered on April 4, 1994.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 1995
--------------------------------------------------------------------------------
1. Pioneer Bond Fund (the Fund) is a Massachusetts business trust registered
under the Investment Company Act of 1940 as a diversified, open-end management
company.
The Board of Trustees authorized the issuance of two share classes of the
Fund, designated as Class A and Class B shares. Class B shares were publicly
offered on April 4, 1994. Shares issued and outstanding prior to April 4, 1994
were designated as Class A shares. The shares of each class represent an
interest in the same portfolio of investments of the Fund and have equal rights
to voting, redemptions, dividends and liquidations, 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 holders of Class A and Class B shares, respectively.
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 the date the
securities are purchased or sold. Securities are valued on the basis of
valuations furnished by an independent pricing service which utilizes a matrix
system. This matrix system reflects such factors as security prices, yields,
maturities, and ratings, and is supplemented by dealer and exchange quotations
and fair market value information from other sources. Temporary cash investments
are valued at cost plus accrued interest, which approximates market value.
Interest income is recorded on the accrual basis.
Gains and losses from 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 first to 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 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 net investment income and net realized capital gains, if
any, to its shareholders. Therefore, no federal income tax provisions are
required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with 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 capital, depending on the type of
book/tax differences that may exist.
The Fund has reclassed approximately $57,000 from Accumulated net realized
loss on investments to Paid-in capital. This 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. Trust Shares -- The Fund records sales and repurchases of trust shares on
trade date. Net losses, if any, as a result of cancellations, are absorbed by
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the Fund
and a wholly owned subsidiary of The Pioneer Group, Inc. (PGI). PFD earned
approximately $39,000 in underwriting commissions on the sale of trust shares
during the year ended June 30, 1995. Dividends and distributions to shareholders
are recorded as of the ex-dividend date. Dividends paid by the Fund with respect
to each class of shares are calculated in the same manner, at the same time, on
the same day and are in the same amount, except that Class A and
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
--------------------------------------------------------------------------------
Class B shares can bear different transfer agent and distribution fees.
D. Class Allocations -- Distribution expenses are calculated based on the
average daily net asset value attributable to Class A and Class B shares of the
Fund, respectively. Shareholders of Class A and Class B share all expenses and
fees paid to the service organization, 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 expenses (see Note 3).
Income, common expenses and realized and unrealized gains (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.
2. Pioneering Management Corporation is the Fund's investment adviser, manages
the Fund's portfolio, and is a wholly owned subsidiary of PGI. Management fees
are calculated at the annual rate of 0.50% of the Fund's average daily net
assets.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums are paid by
the Fund. Included in Accrued expenses -- Other is approximately $8,000 in
accounting fees payable to PMC at June 30, 1995.
3. PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund, at negotiated rates. Included in
Accrued expenses -- Other is approximately $8,000 in transfer agent fees payable
to PSC at June 30, 1995.
4. The Fund has adopted a Plan of Distribution (the Plan) for both Class A
shares (Class A Plan) and Class B shares (Class B Plan) in accordance with Rule
12b-1 under the Investment Company Act of 1940, pursuant to which certain
distribution and fees are paid to PFD.
Pursuant to the Class A Plan, the Fund reimburses PFD for its actual
expenditures to finance any activity primarily intended to result in the sale of
Class A shares or to provide services to holders of Class A shares.
Reimbursement for such expenditures, if any, may not exceed 0.25% of the Fund's
average daily net assets attributable to Class A shares. The Class B Plan
provides that the Fund may pay a distribution fee at an annual rate of 0.75% of
the Fund's average daily net assets attributable to Class B shares and may pay
PFD a service fee at the annual rate of 0.25% of the Fund's average daily net
assets attributable to Class B shares. Included in Accrued expenses -- Other is
approximately $51,000 in distribution fees payable to PFD at June 30, 1995.
Class B shares that are redeemed within six years of purchase are subject to a
contingent deferred sales charge (CDSC) at declining rates beginning at 4.0% of
the lesser of the current market value at the time of redemption or the original
purchase cost of the shares being redeemed. Proceeds from the CDSC are paid to
PFD. For the year ended June 30, 1995, CDSC in the amount of approximately
$6,000 was paid to PFD.
16
<PAGE>
<TABLE>
TAX TREATMENT OF DISTRIBUTIONS MADE DURING THE YEAR ENDED JUNE 30, 1995
--------------------------------------------------------------------------------
During the year ended June 30, 1995, Pioneer Bond Fund paid the following
distributions from net investment income:
<CAPTION>
DISTRIBUTIONS DISTRIBUTIONS
PAYMENT PER SHARE PER SHARE
DATE (CLASS A) (CLASS B)
---------------------------------------- ------------- -------------
<S> <C> <C>
07/29/94................................ $ 0.055 $ 0.047
08/31/94................................ 0.056 0.050
09/30/94................................ 0.057 0.051
10/31/94................................ 0.057 0.051
11/30/94................................ 0.058 0.050
12/30/94................................ 0.060 0.052
01/31/95................................ 0.058 0.053
02/28/95................................ 0.055 0.053
03/31/95................................ 0.055 0.053
04/28/95................................ 0.055 0.053
05/31/95................................ 0.055 0.053
06/30/95................................ 0.055 0.053
------- -------
Total $ 0.676 $ 0.619
======= =======
</TABLE>
For purposes of the dividend exclusion, none of the distributions per share
qualify for the exclusion.
TRUSTEES FEES, PRINCIPAL SHAREHOLDERS AND SHARE OWNERSHIP OF TRUSTEES AND
OFFICERS (UNAUDITED)
--------------------------------------------------------------------------------
The aggregate direct remuneration paid by the Fund to trustees and officers
during the year ended June 30, 1995 was approximately $14,000, plus expenses
incurred in attending trustees meetings of $2,000. Fees of trustees who are
affiliated with or are "interested persons" of Pioneering Management Corporation
and Pioneer Funds Distributor, Inc., investment adviser and underwriter,
respectively, of the Fund ($1,000 in 1995), are reimbursed to the Fund by
Pioneering Management Corporation in accordance with the management contract
with the Fund. At June 30, 1995, the trustees and officers of the Fund owned
beneficially 42,775 Class A shares of the Fund (approximately 0.4% of the
outstanding Class A shares). The Pioneer Group, Inc. is a publicly held
corporation of which Mr. Cogan beneficially owned approximately 15% of the
outstanding shares of capital stock at June 30, 1995.
17
<PAGE>
<TABLE>
LIFETIME RECORD -- PIONEER BOND FUND -- (UNAUDITED)
--------------------------------------------------------------------------------
The table below covers the periods from October 31, 1978 and April 4, 1994
(Class A and Class B, respectively) to June 30, 1994. These were periods of
fluctuating bond prices. Although the primary investment objective of Pioneer
Bond Fund is to provide current income and preservation of capital, the results
shown should not be considered an assurance of the dividend income that may be
realized nor the future value of an investment made in the Fund today. An
assumed investment in one share:
<CAPTION>
WITH DIVIDENDS
WITH DIVIDENDS REINVESTED IN ADDITIONAL SHARES
RECEIVED IN CASH ---------------------------------------------
----------------------- CUMULATIVE
NET ASSET INCOME VALUE OF SHARES VALUE OF INCOME
VALUE DIVIDENDS RECEIVED AS INVESTMENT IN DIVIDENDS
DATE PER SHARE PER SHARE DIVIDENDS ONE SHARE PER SHARE
----------------------- --------- ---------- --------------- ------------- ---------
<S> <C> <C> <C> <C> <C>
CLASS A
10/31/78.......... $ 10.00* -- -- $ 10.00 --
06/30/79.......... 10.23 $ 0.42 $ 0.43 10.66 $0.42
06/30/80.......... 9.45 1.00 1.51 10.96 1.08
06/30/81.......... 7.91 1.00 2.45 10.36 1.22
06/30/82.......... 7.76 1.00 3.78 11.54 1.38
06/30/83.......... 9.18 1.00 6.07 15.25 1.54
06/30/84.......... 8.37 1.00 7.21 15.58 1.74
06/30/85.......... 9.25 1.00 10.01 19.26 1.95
06/30/86.......... 9.62 0.98 12.59 22.21 2.14
06/30/87.......... 9.22 0.83 14.01 23.23 2.00
06/30/88.......... 9.04 0.81 15.85 24.89 2.14
06/30/89.......... 9.18 0.81 18.49 27.67 2.35
06/30/90.......... 8.92 0.81 20.48 29.40 2.53
06/30/91.......... 8.99 0.79 23.38 32.37 2.71
06/30/92.......... 9.37 0.75 27.22 36.59 2.80
06/30/93.......... 9.81 0.70 31.42 41.23 2.84
06/30/94.......... 9.04 0.67 31.67 40.71 2.90
06/30/95.......... 9.35 0.68 36.03 45.38 3.15
CLASS B
04/04/94.......... 9.23* -- -- 9.23 --
06/30/94.......... 9.02 0.14 0.14 9.16 0.14
06/30/95.......... 9.31 0.62 0.82 10.13 0.65
<FN>
* Initial Net Asset Value is the amount received by the Fund, after deducting
from the cost of the investment (for Class A shares) the sales commission as
described in the prospectus. No adjustment has been made for income taxes
payable by shareholders.
</FN>
</TABLE>
18
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
--------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER BOND FUND:
We have audited the accompanying balance sheet of Pioneer Bond Fund, including
the schedule of investments, as of June 30,1995, and the related statement of
operations, statements of changes in net assets and financial highlights for the
periods 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
audits.
We conducted our audits 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 June
30,1995 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 audits provide 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 Bond Fund as of June 30, 1995, the results of its operations, the
changes in its net assets and financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
July 28, 1995
19
<PAGE>
LOGO
PIONEER BOND FUND
60 STATE STREET
BOSTON, MASSACHUSETTS 02109
OFFICERS
JOHN F. COGAN, JR., Chairman and
President
DAVID D. TRIPPLE, Executive Vice
President
SHERMAN B. RUSS, Vice President
WILLIAM H. KEOUGH, Treasurer
JOSEPH P. BARRI, Secretary
TRUSTEES
Pioneer
JOHN F. COGAN, JR. MARGUERITE A.PIRET
RICHARD H. EGDAHL, M.D. DAVID D.TRIPPLE
Bond Fund
MARGARET B. W. GRAHAM STEPHEN K.WEST
JOHN W. KENDRICK JOHN WINTHROP
INVESTMENT ADVISER
PIONEERING MANAGEMENT CORPORATION
ANNUAL REPORT
PRINCIPAL UNDERWRITER
JUNE 30, 1995
PIONEER FUNDS DISTRIBUTOR, INC.
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
LEGAL COUNSEL
HALE AND DORR
SHAREHOLDER SERVICES AND TRANSFER
AGENT
PIONEERING SERVICES CORPORATION
60 State Street
Boston, Massachusetts 02109
INDEPENDENT PUBLIC ACCOUNTANTS
ARTHUR ANDERSEN LLP
------------------------------------
<TABLE>
<S> <C>
Please call Pioneer for information on:
Existing accounts, new
accounts, prospectuses,
applications, and service
forms............................. 1-800-225-6292
Fund yields and prices............ 1-800-225-4321
Toll-free fax..................... 1-800-225-4240
Retirement plans.................. 1-800-622-0176
Telecommunications Device for the
Deaf (TDD)........................ 1-800-225-1997
</TABLE>
------------------------------------
When distributed to persons who are
not shareowners of the Fund, this
report must be accompanied by an
official prospectus, which discusses
the objectives, policies and other
information about the Fund.
0895-2627
(C) Pioneer Funds Distributor, Inc.
