April 3, 1995
SUPPLEMENT
to the prospectuses for:
Pioneer II January 27, 1995
Pioneer Three January 27, 1995
Pioneer Capital Growth Fund February 24, 1995
Pioneer Equity-Income Fund February 24, 1995
Pioneer Gold Shares February 24, 1995
Pioneer Europe Fund February 28, 1995
Pioneer Bond Fund October 28, 1994
Pioneer California Double Tax-Free Fund January 27, 1995
Pioneer Massachusetts Double Tax-Free Fund January 27, 1995
Pioneer New York Triple Tax-Free Fund January 27, 1995
How to Buy Fund Shares
In addition to the exceptions listed in each Fund's prospectus, Class A shares
of a Fund may be sold at net asset value per share without a sales charge to
Optional Retirement Program participants if (i) the employer has authorized a
limited number of investment company providers for the Program, (ii) all
authorized investment company providers offer their shares to Program
participants at net asset value, (iii) the employer has agreed in writing to
actively promote the authorized investment company providers to Program
participants and (iv) the Program provides for a matching contribution for each
participant contribution.
0495-2419
(c) Pioneer Funds Distributor, Inc.
<PAGE>
(PIONEER LOGO)
Pioneer
Bond Fund
Class A and Class B Shares
Prospectus
October 28, 1994
The investment objective of Pioneer Bond Fund (the "Fund") is to provide
current income from a high quality portfolio with due regard to preservation
of capital and prudent investment risk. Consistent therewith, the Fund also
seeks to maintain dividend payments at a relatively stable level. At least
85% of the Fund's total assets must be invested in debt securities issued or
guaranteed by the U.S. Government or its agencies or instrumentalities, debt
securities (including convertible securities) rated within the three highest
grades by the major recognized bond services and comparably rated commercial
paper and cash and cash equivalents. The Fund may invest the balance (up to
15%) of its total assets in debt securities that are rated in the fourth
highest grade by the major recognized bond services and in commercial paper
that is of comparable quality.
Fund returns and share prices fluctuate and the value of your account, upon
redemption, may be more or less than the value of your original investment.
Shares in the Fund are not deposits or obligations of, or guaranteed or
endorsed by, any bank or depository institution, and the shares are not
federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other government agency.
This Prospectus (Part A of the Registration Statement) provides the
information about the Fund that you should know before investing in the Fund.
Please read and retain it for your future reference. More information about
the Fund is included in the Statement of Additional Information (Part B of
the Registration Statement), also dated October 28, 1994, which is
incorporated into this Prospectus by reference. A copy of the Statement of
Additional Information and the Fund's most recent Annual Report may be
obtained free of charge by calling Shareholder Services at 1-800-225-6292 or
by written request to the Fund at 60 State Street, Boston, Massachusetts
02109. Other information about the Fund has been filed with the Securities
and Exchange Commission (the "SEC") and is available upon request and without
charge.
TABLE OF CONTENTS PAGE
I. EXPENSE INFORMATION 2
II. FINANCIAL HIGHLIGHTS 3
III. INVESTMENT OBJECTIVES AND POLICIES 4
IV. MANAGEMENT OF THE FUND 5
V. FUND SHARE ALTERNATIVES 6
VI. SHARE PRICE 6
VII. HOW TO BUY FUND SHARES 6
Class A Shares 7
Class B Shares 7
VIII. HOW TO SELL FUND SHARES 9
IX. HOW TO EXCHANGE FUND SHARES 10
X. DISTRIBUTION PLANS 10
XI. DIVIDENDS, DISTRIBUTIONS AND TAXATION 11
XII. SHAREHOLDER SERVICES 12
Account and Confirmation Statements 12
Additional Investments 12
Automatic Investment Plans 12
Financial Reports and Tax Information 12
Distribution Options 12
Directed Dividends 12
Direct Deposit 12
Voluntary Tax Withholding 12
Telephone Transactions and Related Liabilities 12
Retirement Plans 13
Telecommunications Device for the Deaf (TDD) 13
Systematic Withdrawal Plans 13
Reinstatement Privilege (Class A Shares Only) 13
XIII. THE FUND 13
XIV. INVESTMENT RESULTS 14
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
<PAGE>
I. EXPENSE INFORMATION
This table is designed to help you understand the charges and expenses that
you, as a shareholder, will bear directly or indirectly when you invest in
the Fund. The table reflects estimated annual operating expenses based upon
actual expenses of the Class A and Class B shares for the fiscal year ended
June 30, 1994.
Class A Class B
Shareholder Transaction Expenses
Maximum Initial Sales Charge on
Purchases (as a percentage of
offering price) 4.50%(1) none
Maximum Sales Charge on Reinvestment of
Dividends none none
Maximum Deferred Sales Charge none(1) 4.00%
Redemption Fee(2) none none
Exchange Fee none none
Annual Operating Expenses
(as a percentage of average net assets):
Management Fee 0.50% 0.50%
12b-1 Fees 0.21% 1.00%
Other Expenses 0.34% 0.42%
Total Operating Expenses 1.05% 1.92%
(1) Purchases of $1,000,000 or more and certain purchases by participants in
a group plan ("Group Plan") are not subject to an initial sales charge but
may be subject to a contingent deferred sales charge as further described
under "How to Buy Fund Shares."
(2) Separate fees (currently $10 and $20, respectively) apply to domestic and
international wire transfers of redemption proceeds.
Example:
You would pay the following dollar amounts on a $1,000 investment, assuming a
5% annual return and redemption at the end of each of the time periods:
1 Year 3 Years 5 Years 10 Years
Class A Shares $55 $77 $100 $167
Class B Shares
- Assuming complete
redemption at end of
period $60 $90 $124 $202*
- Assuming no
redemption $20 $60 $104 $202*
*Class B shares convert to Class A shares eight years after purchase;
therefore, Class A expenses are used after year eight.
The example is designed for informational purposes only, and should not be
considered a representation of past or future expenses or return. Actual Fund
expenses and return vary from year to year and may be higher or lower than
those shown.
For further information regarding management fees, 12b-1 fees and other
expenses of the Fund, including information regarding the basis upon which
management fees and 12b-1 fees are paid, see "Management of the Fund,"
"Distribution Plans" and "How to Buy Fund Shares" in this Prospectus and
"Management of the Fund" and "Underwriting Agreement and Distribution Plans"
in the Statement of Additional Information. The Fund's payment of a 12b-1 fee
may result in long- term shareholders indirectly paying more than the
economic equivalent of the maximum sales charge permitted under the National
Association of Securities Dealers Inc. Rules of Fair Practice.
The maximum initial sales charge is reduced on purchases of specified amounts
of Class A shares and the value of Class A shares owned in other Pioneer
mutual funds is taken into account in determining the applicable initial
sales charge. See "How to Buy Fund Shares." No sales charge is applied to
exchanges of shares of other publicly available mutual funds in the Pioneer
complex. See "How to Exchange Fund Shares."
2
<PAGE>
II. FINANCIAL HIGHLIGHTS
The following information has been derived from financial statements which
have been audited by Arthur Andersen LLP, independent public accountants, in
connection with their examination of the Fund's financial statements. Arthur
Andersen LLP's report on the Fund's financial statements as of June 30, 1994
appears in the Fund's Annual Report, which is incorporated by reference in
the Statement of Additional Information. The Annual Report includes more
information about the Fund's performance and is available free of charge by
calling Shareholder Services at 1-800-225-6292.
Pioneer Bond Fund
Selected Data for a Class A Share Outstanding:
<TABLE>
<CAPTION>
For the Year Ended June 30,
1994 1993 1992 1991 1990 1989 1988 1987 1986
1985
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 9.810 $ 9.37 $ 8.99 $ 8.92 $ 9.18 $ 9.04 $ 9.22 $ 9.62 $ 9.25 $
8.37
Income from
investment
operations:
Net investment
income $ 0.671 $ 0.704 $ 0.743 $ 0.788 $ 0.813 $ 0.812 $ 0.807 $ 0.827 $ 0.940 $
0.968
Net realized and
unrealized gain
(loss) on
investments (0.773) 0.440 0.387 0.071 (0.268) 0.140 (0.179) (0.397) 0.410
0.912
Total income from
investment
operations $ (0.102) $ 1.144 $ 1.130 $ 0.859 $ 0.545 $ 0.952 $ 0.628 $ 0.430 $ 1.350 $
1.880
Distribution to
shareholders from:
Net investment
income (0.668) (0.704) (0.750) (0.789) (0.805) (0.812) (0.808) (0.830) (0.980)
(1.000)
Net realized capital
gains -- -- -- -- -- -- -- --
- -- --
Net increase
(decrease) in net
asset value $ (0.770) $ 0.44 $ 0.38 $ 0.07 $ (0.26) $ 0.14 $ (0.18) $ (0.40) $ 0.37 $
0.88
Net asset value, end
of period $ 9.040 $ 9.81 $ 9.37 $ 8.99 $ 8.92 $ 9.18 $ 9.04 $ 9.22 $ 9.62 $
9.25
Total return* (1.26)% 12.67% 13.03% 10.13% 6.24% 11.17% 7.16% 4.57% 15.33%
23.60%
Ratio of net
operating expenses
to average net
assets** 1.05% 1.10% 1.09% 1.02% 0.88% 0.86% 0.88% 0.86% 1.00%
1.00%
Ratio of net
investment income
to average net
assets** 6.93% 7.37% 8.04% 8.82% 9.01% 8.99% 8.90% 8.45% 10.27%
11.15%
Portfolio turnover
rate 39.00% 37.00% 17.00% 20.00% 34.00% 34.00% 20.00% 19.00% 27.00%
26.00%
Net assets, end of
period (in
thousands) $106,659 $112,900 $102,503 $76,476 $74,137 $64,261 $53,090 $50,909 $29,923
$18,394
<FN>
* Assumes initial investment at net asset value at the beginning of each year, reinvestment of all dividends and
distributions, the complete redemption of the investment at net asset value at the end of each year, and no sales
charges.
Total return would be reduced if sales charges were taken into account.
** The selected per share data and ratios, for several years shown above, are net of fee reductions and, in some years,
expense limitations by PMC. Assuming no fee reductions or expense limitations, the ratios to average net assets would
have
been:
Operating expenses @ @ @ @ @ @ @ @ 1.19%
1.29%
Net investment income @ @ @ @ @ @ @ @ 9.55%
10.33%
@ No fee reductions or expense limitations in this period.
</FN>
</TABLE>
3
<PAGE>
Pioneer Bond Fund
Selected Data for a Class B Share Outstanding***
Period
Ended
June 30,
1994
Net asset value, beginning of period $ 9.230
Income from investment operations:
Net investment income $ 0.143
Net realized and unrealized loss on
investments (0.212)
Total loss from investment operations $(0.069)
Distributions to shareholders from:
Net investment income (0.141)
Net realized capital gains --
Net decrease in net asset value $(0.210)
Net asset value, end of period $ 9.020
Total return* (0.73)%
Ratio of net operating expenses to average net
assets 1.92%**
Ratio of net investment income to average net
assets 6.09%**
Portfolio turnover rate 39%**
Net assets, end of period (in thousands) $ 1,212
*Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all dividends and distributions, and the complete
redemption of the investment at net asset value at the end of each period.
**Annualized.
***Class B shares were publicly offered on April 4, 1994.
III. INVESTMENT OBJECTIVES AND POLICIES
The Fund's primary objective is to provide current income from a high-quality
portfolio with due regard to preservation of capital and prudent investment
risk. The Fund has a secondary objective of maintaining a relatively stable
level of dividends; however, the level of dividends will be maintained only
if consistent with preserving the high quality of the Fund's portfolio.
At least 85% of the Fund's total assets must be invested in (a) debt
securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities, (b) investment-grade securities, that is, debt securities,
including convertible securities, that are rated "A" or higher by the major
recognized bond services (for a description of ratings see the Appendix to
the Statement of Additional Information), and comparably rated commercial
paper and (c) cash and cash equivalents (such as certificates of deposit,
repurchase agreements maturing in one week or less and bankers' acceptances).
The Fund may also invest up to 15% of its total assets in debt securities,
including convertible securities, which are rated in the fourth highest grade
by the major recognized bond services and commercial paper which is
comparable. Securities in the fourth highest grade (i.e., rated Baa by
Moody's Investor Services, Inc. or BBB by Standard & Poor's Ratings Group)
are considered medium grade, neither highly protected nor poorly secured,
with some elements of uncertainty over any great length of time and certain
speculative characteristics as well.
None of the Fund's portfolio may be invested in debt securities which are
rated below the fourth highest grade or are unrated, except that the Fund may
hold debt securities the ratings of which are reduced subsequent to purchase.
The Fund may not invest in preferred or common stocks.
The Fund may invest in the following mortgage-backed securities.
Collateralized mortgage obligations (CMOs) are obligations fully
collateralized by a portfolio of mortgages or mortgage-related securities.
Payments of principal and interest on the mortgages are passed to a special
purpose entity, then through to the holders of the CMOs on the same schedule
as they are received, although certain classes of CMOs have priority over
others with respect to the receipt of prepayments on the mortgages.
Therefore, depending on the type of CMOs in which the Fund invests, the
investment may be subject to a greater or lesser risk of prepayment than
other types of mortgage-related securities. A real estate mortgage investment
conduit ("REMIC") is a form of CMO that qualifies for special tax treatment
under the Internal Revenue Code of 1986, as amended (the "Code"). The Fund
may acquire "regular" interests in REMICs but does not intend, under current
tax law, to acquire residual interests in REMICs. Mortgage-backed securities
are derivative securities and provide for payments based on or derived from
the performance of the underlying mortgage assets. Risks associated with
mortgage-backed securities include the failure of a counter-party to meet its
commitments, adverse interest rate changes and the effects of prepayments on
mortgage cash flows. When interest rates decline, the value of an investment
in debt obligations can be expected to rise. Conversely, when interest rates
rise the value of an investment in debt obligations can be expected to
decline. Like other debt obligations, when interest rates rise the value of a
mortgage-backed security generally will decline; however, when interest
rates are declining, the value of mortgage-backed securities with prepayment
features may not increase as much as that of other debt obligations.
Mortgage-backed securities may be less effective than traditional debt
obligations of similar maturity at maintaining yields during periods of
declining interest rates.
Not more than 15% of the Fund's assets may be invested in foreign securities
and not more than 5% of its total assets may be invested in foreign
securities that are not listed on a recognized foreign or domestic exchange,
provided that purchases of Canadian securities are not subject to the
limitations in this paragraph. Investments in foreign securities may be
subject to risks including, but not limited to, foreign taxes and
restrictions, illiquidity and fluctuations in currency values. In addition,
the financial information available on issuers of foreign debt securities is
frequently not as accurate or complete as would be available for a comparable
domestic issuer. See "Other Policies and Risks" in the Statement of
Additional Information.
The Fund's portfolio will be fully managed by purchasing and selling
securities, as well as holding selected securities to maturity. The Fund's
investment manager employs "cycle analysis" in the management of the Fund's
portfolio. Cycle analysis is the process of managing the Fund's portfolio by
4
<PAGE>
analyzing the business and credit cycles of the economy to identify and
monitor trends in interest rates and to identify fixed-income securities with
characteristics most likely to meet the Fund's objectives at given stages in
the cycles. Relying on analysis of economic indicators, as well as price,
yield and maturity data of individual securities, this process requires
ongoing adjustments to the portfolio based on the relative values or
maturities of individual debt securities or changes in the creditworthiness
or overall investment merit of an issue.
Any such change in the portfolio may result in increases or decreases in the
Fund's current income available for distribution to shareholders and in its
holding of debt securities which sell at moderate to substantial premiums or
discounts from face value. If the Fund's expectations of changes in interest
rates or its evaluation of the normal yield relationships between two
securities prove to be incorrect, the Fund's income, net asset value and
potential capital gain may be reduced or its potential capital loss may be
increased. An increase in interest rates will generally reduce the value of
portfolio investments (and, therefore, the net asset value of the shares of
the Fund), and a decline in interest rates will generally increase their
value.
It is the policy of the Fund not to engage in trading for short-term profits.
The Fund will engage in portfolio trading if it believes a transaction net of
costs (including custodian's fees) will contribute to the achievement of its
investment objective.
The foregoing objectives and investment policies (other than the discussion
of "cycle analysis") may not be changed without shareholder approval.
Government securities include U.S. Treasury obligations such as bills, bonds
and notes which principally differ in their interest rates, maturities and
times of issuance, and obligations issued or guaranteed by U.S. Government
agencies or instrumentalities supported by the full faith and credit of the
U.S. Treasury (securities of the Government National Mortgage Association
"GNMA"), the authority of the U.S. Government to purchase certain obligations
of the issuer (securities of the Federal National Mortgage Association
"FNMA"), the limited authority of the issuer to borrow from the U.S. Treasury
(securities of the Student Loan Marketing Association) or only the credit of
the issuer. No assurance can be given that the U.S. Government will provide
financial support to U.S. Government agencies or instrumentalities in the
future, other than as set forth above, since it is not legally obligated to
do so. Interest payments of U.S. Treasury obligations are generally fixed.
Other investment policies and restrictions on investment are described in the
Statement of Additional Information, including a policy on lending portfolio
securities. Since all investments are subject to inherent market risks and
fluctuations in value due to earnings, economic conditions and other factors,
the Fund, of course, cannot assure that its investment objectives will be
achieved.
IV. MANAGEMENT OF THE FUND
The Fund's Board of Trustees has overall responsibility for management and
supervision of the Fund. There are currently eight Trustees, six of whom are
not "interested persons" of the Fund as defined in the Investment Company Act
of 1940, as amended (the "1940 Act"). The Board meets at least quarterly. By
virtue of the functions performed by Pioneering Management Corporation
("PMC") as investment adviser, the Fund requires no employees other than its
executive officers, all of whom receive their compensation from PMC or other
sources. The Statement of Additional Information contains the names and
general background of each Trustee and executive officer of the Fund.
All portfolios managed by PMC, including the Fund, are overseen by an
Investment Committee (the "Committee"), which consists of PMC's most senior
investment professionals. The Committee is chaired by Mr. David Tripple,
PMC's President and Chief Investment Officer and Executive Vice President of
the Fund. Mr. Tripple joined PMC in 1974 and has had general responsibility
for PMC's investment operations and specific portfolio assignments for over
five years. Day-to-day management of the Fund is the responsibility of Mr.
Sherman B. Russ, Vice President of the Fund and Senior Vice President of PMC.
Mr. Russ joined PMC in 1983.
The Fund is managed under a contract with PMC. PMC serves as investment
adviser to the Fund and is responsible for the overall management of the
Fund's business affairs, subject only to the authority of the Board of
Trustees. PMC is a wholly-owned subsidiary of The Pioneer Group, Inc.
("PGI"), a Delaware corporation. Pioneer Funds Distributor, Inc. ("PFD"), a
wholly-owned subsidiary of PGI, is the principal underwriter of shares of the
Fund.
In addition to the Fund, PMC also manages and serves as the investment
adviser for other mutual funds and is an investment adviser to certain other
institutional accounts. PMC's and PFD's executive offices are located at 60
State Street, Boston, Massachusetts 02109.
Under the terms of its contract with the Fund, PMC assists in the management
of the Fund and is authorized in its discretion to buy and sell securities
for the account of the Fund. PMC pays all the ordinary operating expenses,
including executive salaries and the rental of certain office space, related
to its services for the Fund with the exception of the following which are to
be paid by the Fund: (a) charges and expenses for fund accounting, pricing
and appraisal services and related overhead, including, to the extent such
services are performed by personnel of PMC or its affiliates, office space
and facilities and personnel compensation, training and benefits; (b) the
charges and expenses of auditors; (c) the charges and expenses of any
custodian, transfer agent, plan agent, dividend disbursing agent and
registrar appointed by the Fund; (d) issue and transfer taxes, chargeable to
the Fund in connection with securities transactions to which the Fund is a
party; (e) insurance premiums, interest charges, dues and fees for membership
in trade associations, and all taxes and corporate fees payable by the Fund
to federal, state or other governmental agencies; (f) fees and expenses
involved in registering and maintaining registrations of the Fund and/or its
shares with the SEC, individual states or blue sky securities agencies,
territories and foreign countries, including the preparation of Prospectuses
5
<PAGE>
and Statements of Additional Information for filing with the SEC; (g) all
expenses of shareholders' and Trustees' meetings and of preparing, printing
and distributing prospectuses, notices, proxy statements and all reports to
shareholders and to governmental agencies; (h) charges and expenses of legal
counsel to the Fund and the Trustees; (i) distribution fees paid by the Fund
in accordance with Rule 12b-1 promulgated by the SEC pursuant to the 1940
Act; (j) compensation of those Trustees of the Fund who are not affiliated
with or interested persons of PMC, the Fund (other than as Trustees), PGI or
PFD; (k) the cost of preparing and printing share certificates; and (l)
interest on borrowed money, if any. In addition to the expenses described
above, the Fund shall pay all brokers' and underwriting commissions
chargeable to the Fund in connection with securities transactions to which
the Fund is a party.
Orders for the Fund's portfolio securities transactions are placed by PMC,
which strives to obtain the best price and execution for each transaction. In
circumstances in which two or more broker-dealers are in a position to offer
comparable prices and execution, consideration may be given to whether the
broker-dealer provides investment research or brokerage services or sells
shares of the Fund. See the Statement of Additional Information for a further
description of PMC's brokerage allocation practices.
As compensation for its management services and certain expenses which PMC
incurs, PMC is entitled to a management fee equal to 0.50% per annum of the
Fund's average daily net assets. The fee is normally computed daily and paid
monthly. During the fiscal year ended June 30, 1994, the Fund incurred
expenses of approximately $1,194,000, including management fees paid or
payable to PMC of $571,000.
John F. Cogan, Jr., Chairman and President of the Fund, Chairman of PFD,
President and a Director of PGI and Chairman and a Director of PMC, owned
approximately 15% of the outstanding capital stock of PGI as of the date of
this Prospectus.
V. FUND SHARE ALTERNATIVES
The Fund continuously offers two Classes of shares designated as Class A and
Class B shares, as described more fully in "How to Buy Fund Shares." If you
do not specify in your instructions to the Fund which Class of shares you
wish to purchase, exchange or redeem, the Fund will assume that your
instructions apply to Class A shares.
Class A Shares. If you invest less than $1 million in Class A shares, you
will pay an initial sales charge. Certain purchases may qualify for reduced
initial sales charges. If you invest $1 million or more in Class A shares, no
sales charge will be imposed at the time of purchase, however, shares
redeemed within 12 months of purchase may be subject to a contingent deferred
sales charge ("CDSC"). Class A shares are subject to distribution and service
fees at a combined annual rate of up to 0.25% of the Fund's average daily net
assets attributable to Class A shares.
Class B Shares. If you plan to invest up to $250,000, Class B shares are
available to you. Class B shares are sold without an initial sales charge,
but are subject to a CDSC of up to 4% if redeemed within six years. Class B
shares are subject to distribution and service fees at a combined annual rate
of 1.00% of the Fund's average daily net assets attributable to Class B
shares. Your entire investment in Class B shares is available to work for you
from the time you make your investment, but the higher distribution fee paid
by Class B shares will cause your Class B shares (until conversion) to have a
higher expense ratio and to pay lower dividends, to the extent dividends are
paid, than Class A shares. Class B shares will automatically convert to Class
A shares, based on relative net asset value, approximately eight years after
the initial purchase.
Purchasing Class A or Class B Shares. The decision as to which Class to
purchase depends on the amount you invest, the intended length of the
investment and your personal situation. If you are making an investment that
qualifies for reduced sales charges, you might consider Class A shares. If
you prefer not to pay an initial sales charge on an investment of $250,000 or
less and you plan to hold the investment for at least six years, you might
consider Class B shares.
Investment dealers and their representatives may receive different
compensation depending on which Class of shares they sell. Shares may be
exchanged only for shares of the same Class of another Pioneer mutual fund
and shares acquired in the exchange will continue to be subject to any CDSC
applicable to the shares of the Fund originally purchased. Shares sold
outside the U.S. to persons who are not U.S. citizens may be subject to
different sales charges, CDSCs and dealer compensation arrangements in
accordance with local laws and business practices.
VI. SHARE PRICE
Shares of the Fund are sold at the public offering price, which is the net
asset value per share plus the applicable sales charge. Net asset value per
share of a Class of the Fund is determined by dividing the value of its
assets, less liabilities attributable to that Class, by the number of shares
of that Class outstanding. The net asset value is computed once daily, on
each day the New York Stock Exchange (the "Exchange") is open, as of the
close of regular trading on the Exchange.
VII. HOW TO BUY FUND SHARES
You may buy Fund shares at the public offering price from any securities
broker-dealer which has a sales agreement with PFD. If you do not have a
securities broker-dealer, please call 1-800-225-6292 for assistance.
The minimum initial investment is $1,000 for Class A and Class B shares
except as specified below. The minimum initial investment is $50 for Class A
accounts being established to utilize monthly bank drafts, government
allotments, payroll deduction and other similar automatic investment plans.
Separate minimum investment requirements apply to retirement plans and to
telephone and wire orders placed by broker- dealers; no sales charges or
minimum requirements apply to the reinvestment of dividends or capital gains
distributions. The
6
<PAGE>
minimum subsequent investment is $50 for Class A shares and $500 for Class B
shares except that the subsequent minimum investment amount for Class B share
accounts may be as little as $50 if an automatic investment plan (see
"Automatic Investment Plans") is established.
Class A Shares
You may buy Class A shares at the public offering price, that is, at the net
asset value per share next computed after receipt of a purchase order, plus a
sales charge as follows:
Dealer
Sales Charge as a % of Allowance
Net as a % of
Offering Amount Offering
Amount of Purchase Price Invested Price
Less than $100,000 4.50% 4.71% 4.00%
$100,000 but less than
$250,000 3.50 3.63 3.00
$250,000 but less than
$500,000 2.50 2.56 2.00
$500,000 but less than
$1,000,000 2.00 2.04 1.75
$1,000,000 or more -0- -0- see below
No sales charge is payable at the time of purchase on investments of
$1,000,000 or more or for participants in certain Group Plans (described
below) subject to a CDSC of 1% which may be imposed in the event of a
redemption of Class A shares within 12 months of purchase. See "How to Sell
Fund Shares." PFD may, in its discretion, pay a commission to broker-dealers
who initiate and are responsible for such purchases as follows: 1% on the
first $1 million invested; 0.50% on the next $4 million; and 0.10% on the
excess over $5 million. Broker-dealers who receive a commission in connection
with Class A share purchases at net asset value by 401(a) or 401(k)
retirement plans with 1,000 or more eligible participants or with at least
$10 million in plan assets will be required to return any commission paid or
a pro rata portion thereof if the retirement plan redeems its shares within
12 months of purchase. See also "Waiver or Reduction of Contingent Deferred
Sales Charge." These commissions will not be paid if the purchaser is
affiliated with the broker-dealer or if the purchase represents the
reinvestment of a redemption made during the previous 12 calendar months. In
connection with PGI's acquisition of Mutual of Omaha Fund Management Company
and contingent upon the achievement of certain sales objectives, PFD pays to
Mutual of Omaha Investor Services, Inc. 50% of PFD's retention of any sales
commission on sales of the Fund's Class A shares through such dealer.
Qualifying for a Reduced Sales Charge. Class A shares of the Fund may be sold
at a reduced or eliminated sales charge to certain Group Plans under which a
sponsoring organization makes recommendations to, permits group solicitation
of, or otherwise facilitates purchases by, its employees, members or
participants. Information about such arrangements is available from PFD.
Class A shares of the Fund may also be sold at net asset value per share
without a sales charge to: (a) current or former Trustees and officers of the
Fund and partners or employees of its legal counsel; (b) current or former
directors, officers, employees or sales representatives of PGI or its
subsidiaries; (c) current or former directors, officers, employees or sales
representatives of any subadviser or predecessor investment adviser to any
investment company for which PMC serves as investment adviser, and the
subsidiaries or affiliates of such persons; (d) current or former officers,
partners, employees or registered representatives of broker-dealers which
have entered into sales agreements with PFD; (e) members of the immediate
families of any of the foregoing persons; (f) any trust, custodian, pension,
profit-sharing or other benefit plan of the foregoing persons; (g) insurance
company separate accounts; (h) certain "wrap accounts" for the benefit of
clients of financial planners adhering to standards established by PFD; (i)
other funds and accounts for which PMC or any of its affiliates serves as
investment adviser or manager; and (j) certain unit investment trusts. Shares
so purchased are purchased for investment purposes and may not be resold
except through redemption or repurchase by or on behalf of the Fund. The
availability of this privilege is conditioned on the receipt by PFD of
written notification of eligibility. Shares of the Fund may also be issued at
net asset value without a sales charge in connection with certain
reorganization, liquidation or acquisition transactions involving other
investment companies or personal holding companies.
Reduced sales charges for Class A shares are available through an agreement
to purchase a specified quantity of Fund shares over a designated 13-month
period by completing the "Letter of Intention" section of the Account
Application. Information about the Letter of Intention Procedure, including
its terms, is contained in the Statement of Additional Information.
Investors who are clients of a broker-dealer with a current sales agreement
with PFD may purchase shares of the Fund at net asset value, without a sales
charge, to the extent that the purchase price is paid out of proceeds from
one or more redemptions by the investor of shares of certain other mutual
funds. In order for a purchase to qualify for this privilege, the investor
must document to the broker-dealer that the redemption occurred within 60
days immediately preceding the purchase of shares of the Fund; that the
client paid a sales charge on the original purchase of the shares redeemed;
and that the mutual fund whose shares were redeemed also offers net asset
value purchases to redeeming shareholders of any of the Pioneer funds.
Further details may be obtained from PFD.
Class B Shares
You may buy Class B shares at net asset value without the imposition of an
initial sales charge; however, Class B shares redeemed within six years of
purchase will be subject to a CDSC at the rates shown in the table below. The
charge will be assessed on the amount equal to the lesser of the current
market value or the original purchase cost of the shares being redeemed. No
CDSC will be imposed on increases in account value above the initial purchase
price, including shares derived from the reinvestment of dividends or capital
gains distributions.
The amount of the CDSC, if any, will vary depending on the number of years
from the time of purchase until the time of redemption of Class B shares. For
the purpose of determining the number of years from the time of any purchase,
all
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payments during a quarter will be aggregated and deemed to have been made on
the first day of that quarter. In processing redemptions of Class B shares,
the Fund will first redeem shares not subject to any CDSC, and then shares
held longest during the six-year period. As a result, you will pay the lowest
possible CDSC.
The CDSC for Class B shares subject to a CDSC upon redemption will be
determined as follows:
Year Since CDSC as a Percentage of Dollar
Purchase Amount Subject to CDSC
First 4.0%
Second 4.0%
Third 3.0%
Fourth 3.0%
Fifth 2.0%
Sixth 1.0%
Seventh and thereafter none
Proceeds from the CDSC are paid to PFD and are used in whole or in part to
defray PFD's expenses related to providing distribution-related services to
the Fund in connection with the sale of Class B shares, including the payment
of compensation to broker-dealers.
Class B shares will automatically convert into Class A shares at the end of
the calendar quarter that is eight years after the purchase date, except as
noted below. Class B shares acquired by exchange from Class B shares of
another Pioneer fund will convert into Class A shares based on the date of
the initial purchase and the applicable CDSC. Class B shares acquired through
reinvestment of distributions will convert into Class A shares based on the
date of the initial purchase to which such shares relate. For this purpose,
Class B shares acquired through reinvestment of distributions will be
attributed to particular purchases of Class B shares in accordance with such
procedures as the Trustees may determine from time to time. The conversion of
Class B shares to Class A shares is subject to the continuing availability of
a ruling from the Internal Revenue Service, which the Fund has obtained, or
an opinion of counsel that such conversions will not constitute taxable
events for federal tax purposes. There can be no assurance that such ruling
will continue to be in effect at the time any particular conversion would
normally occur. The conversion of Class B shares to Class A shares will not
occur if such ruling is no longer in effect and such an opinion is not
available and, therefore, Class B shares would continue to be subject to
higher expenses than Class A shares for an indeterminate period.
Waiver or Reduction of Contingent Deferred Sales Charge. The CDSC on Class B
shares and on any Class A shares subject to a CDSC may be waived or reduced
for non-retirement accounts if: (a) the redemption results from the death of
all registered owners of an account (in the case of UGMAs, UTMAs and trust
accounts, waiver applies upon the death of all beneficial owners) or a total
and permanent disability (as defined in Section 72 of the Code) of all
registered owners occurring after the purchase of the shares being redeemed
or (b) the redemption is made in connection with limited automatic
redemptions as set forth in "Systematic Withdrawal Plans" (limited in any
year to 10% of the value of the account in the Fund at the time the
withdrawal plan is established).
The CDSC on Class B shares and on any Class A shares subject to a CDSC may be
waived or reduced for retirement plan accounts if: (a) the redemption results
from the death or a total and permanent disability (as defined in Section 72
of the Code) occurring after the purchase of the shares being redeemed of a
shareholder or participant in an employer-sponsored retirement plan; (b) the
distribution is to a participant in an IRA, 403(b) or employer-sponsored
retirement plan, is part of a series of substantially equal payments made
over the life expectancy of the participant or the joint life expectancy of
the participant and his or her beneficiary or as scheduled periodic payments
to a participant (limited in any year to 10% of the value of the
participant's account at the time the distribution amount is established; a
required minimum distribution due to the participant's attainment of age
70-1/2 may exceed the 10% limit only if the distribution amount is based on
plan assets held by Pioneer) or a qualifying hardship distribution as defined
by the Code or results from a termination of employment (limited with respect
to a termination to 10% per year of the value of the plan's assets in the
Fund as of the later of the prior December 31 or the date the account was
established unless the plan's assets are being rolled over to or reinvested
in the same class of shares of a Pioneer mutual fund subject to the CDSC of
the shares originally held); (c) the distribution is from a 401(a) or 401(k)
retirement plan and is a return of excess employee deferrals or employee
contributions; (d) the distribution is from an IRA, 403(b) or
employer-sponsored retirement plan and is to be rolled over to or reinvested
in the same class of shares in a Pioneer mutual fund and which will be
subject to the applicable CDSC upon redemption; (e) the distribution is in
the form of a loan to a participant in a plan which permits loans (each
repayment of the loan will constitute a new sale which will be subject to the
applicable CDSC upon redemption); or (f) the distribution is from a qualified
defined contribution plan and represents a participant's directed transfer
(provided that this privilege has been pre-authorized through a prior
agreement with PFD regarding participant directed transfers).
The CDSC on Class B shares and on any Class A shares subject to a CDSC may be
waived or reduced for either non- retirement or retirement plan accounts if:
(a) the redemption is made by any state, county, or city, or any
instrumentality, department, authority, or agency thereof, which is
prohibited by applicable laws from paying a CDSC in connection with the
acquisition of shares of any registered investment management company; or (b)
the redemption is made pursuant to the Fund's right to liquidate or
involuntarily redeem shares in a shareholder's account.
Broker-Dealers. An order for either Class of Fund shares received by PFD from
a broker-dealer prior to the close of regular trading on the Exchange is
confirmed at the price appropriate for that Class as determined at the close
of regular trading on the Exchange on the day the order is received, provided
the order is received prior to PFD's close of business (usually, 5:30 p.m.
Eastern Time). It is the responsibility of broker-dealers to transmit orders
so that they will be received by PFD prior to its close of business.
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General. The Fund reserves the right in its sole discretion to withdraw all
or any part of the offering of shares when, in the judgment of the Fund's
management, such withdrawal is in the best interest of the Fund. An order to
purchase shares is not binding on, and may be rejected by, PFD until it has
been confirmed in writing by PFD and payment has been received.
VIII. HOW TO SELL FUND SHARES
You can arrange to sell (redeem) Fund shares on any day the Exchange is open
by selling either some or all of your shares to the Fund.
You may sell your shares either through your broker-dealer or directly to the
Fund. The Fund will repurchase only shares for which it has received payment
and only upon the request of the registered owner or owner's duly authorized
agent. Please note the following:
* If you are selling shares from a retirement account, you must make your
request in writing (except for exchanges to other Pioneer funds which can be
requested by phone or in writing). Call 1-800-622-0176 for more information.
* If you are selling shares from a non-retirement account, you may use any of
the methods described below.
Your shares will be sold at the share price next calculated after your order
is received and accepted less any applicable CDSC. Sale proceeds generally
will be sent to you in cash, normally within seven days after your order is
accepted. The Fund reserves the right to withhold payment of the sale
proceeds until checks received by the Fund in payment for the shares being
sold have cleared, which may take up to 15 calendar days from the purchase
date.
In Writing. You may always sell your shares by delivering a written request
in good order to Pioneering Services Corporation ("PSC"), however, you must
use a written request, including a signature guarantee, to sell your shares
if any of the following situations applies:
* you wish to sell over $50,000 worth of shares,
* your account registration or address has changed within the last 30 days,
* the check is not being mailed to the address on your account (address of
record),
* the check is not being made out to the account owners, or
* the sale proceeds are being transferred to a Pioneer account with a
different registration.
Your request should include your name, the Fund's name, your fund account
number, the Class of shares to be redeemed, the dollar amount or number of
shares to be redeemed, and any other applicable requirements as described
below. Unless instructed otherwise, Pioneer will send the proceeds of the
sale to the address of record. Fiduciaries or corporations are required to
submit additional documents. For more information, contact PSC at
1-800-225-6292.
Written requests will not be processed until they are received in good order
and accepted by PSC. Good order means that there are no outstanding claims or
requests to hold redemptions on the account, certificates are endorsed by the
record owner(s) exactly as the shares are registered and the signature(s) are
guaranteed by an eligible guarantor. You should be able to obtain a signature
guarantee from a bank, broker, dealer, credit union (if authorized under
state law), securities exchange or association, clearing agency or savings
association. A notary public cannot provide a signature guarantee. Signature
guarantees are not accepted by facsimile (fax). For additional information
about the necessary documentation for redemption by mail, please contact PSC
at 1-800-225-6292.
By Telephone or by Fax. Your account is automatically authorized to have the
telephone redemption privilege unless you indicated otherwise on your Account
Application or by writing to PSC. Proper account identification will be
required for each telephone redemption. The telephone redemption option is
not available to retirement plan accounts. A maximum of $50,000 per account
per day may be redeemed by telephone or fax and the proceeds may be received
by check or by bank wire. To receive the proceeds by check: the check must be
made payable exactly as the account is registered and the check must be sent
to the address of record which must not have changed in the last 30 days. To
receive the proceeds by bank wire: the wire must be sent to the bank wire
address of record which must have been properly pre- designated either on
your Account Application or on an Account Options Form and which must not
have changed in the last 30 days. To redeem by fax send your redemption
request to 1-800-225-4240. You may always elect to deliver redemption
instructions to PSC by mail. See "Telephone Transactions and Related
Liabilities" below. Telephone and fax redemptions will be priced as described
above.
Selling Shares Through Your Broker-Dealer. The Fund has authorized PFD to act
as its agent in the repurchase of shares of the Fund from qualified
broker-dealers and reserves the right to terminate this procedure at any
time. Your broker-dealer must receive your request before the close of
business on the Exchange and transmit it to PFD before PFD's close of
business to receive that day's redemption price. Your broker-dealer is
responsible for providing all necessary documentation to PFD and may charge
you for its services.
Small Accounts. The minimum account value is $500. If you hold shares of the
Fund in an account with a net asset value of less than the minimum required
amount due to redemptions or exchanges, the Fund may redeem the shares held
in this account at net asset value if you have not increased the net asset
value of the account to at least the minimum required amount within six
months of notice by the Fund to you of the Fund's intention to redeem the
shares.
CDSC on Class A Shares. Purchases of Class A shares of $1,000,000 or more, or
by participants in a Group Plan which were not subject to an initial sales
charge, may be subject to a CDSC upon redemption. A CDSC is payable to PFD on
these investments in the event of a share redemption within 12
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months following the share purchase, at the rate of 1% of the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital
gain distributions) or the total cost of such shares. Shares subject to the
CDSC which are exchanged into another Pioneer fund will continue to be
subject to the CDSC until the original 12-month period expires. However, no
CDSC is payable with respect to purchases of Class A shares by 401(a) or
401(k) retirement plans with 1,000 or more eligible participants or with at
least $10 million in plan assets.
General. Redemptions may be suspended or payment postponed during any period
in which any of the following conditions exist: the Exchange is closed or
trading on the Exchange is restricted; an emergency exists as a result of
which disposal by the Fund of securities owned by it is not reasonably
practicable or it is not reasonably practicable for the Fund to fairly
determine the value of the net assets of its portfolio; or the SEC, by order,
so permits.
Redemptions and repurchases are taxable transactions to shareholders. The net
asset value per share received upon redemption or repurchase may be more or
less than the cost of shares to an investor, depending on the market value of
the portfolio at the time of redemption or repurchase.
IX. HOW TO EXCHANGE FUND SHARES
Written Exchanges. You may exchange your shares by sending a letter of
instruction to PSC. Your letter should include your name, the name of the
Fund out of which you wish to exchange and the name of the Fund into which
you wish to exchange, your fund account number(s), the Class of shares to be
exchanged and the dollar amount or number of shares to be exchanged. Written
exchange requests must be signed by all record owner(s) exactly as the shares
are registered.
Telephone Exchanges. Your account is automatically authorized to have the
telephone exchange privilege unless you indicated otherwise on your Account
Application or by writing to PSC. Proper account identification will be
required for each telephone exchange. Telephone exchanges may not exceed
$500,000 per account per day. All telephone exchange requests will be
recorded. See "Telephone Transactions and Related Liabilities" below.
Automatic Exchanges. You may automatically exchange shares from one Pioneer
account for shares of the same Class in another Pioneer account on a monthly
or quarterly basis. The accounts must have identical registrations and the
originating account must have a minimum balance of $5,000. The exchange will
be effective on the 18th day of the month.
General. Exchanges must be at least $1,000. You may exchange your investment
from one Class of Fund shares at net asset value, without a sales charge, for
shares of the same Class of any other Pioneer fund. Not all Pioneer funds
offer more than one Class of shares. A new Pioneer account opened through an
exchange must have a registration identical to that on the original account.
Class A or Class B shares which would normally be subject to a CDSC upon
redemption will not be charged the applicable CDSC at the time of an
exchange. Shares acquired in an exchange will be subject to the CDSC of the
shares originally held. For purposes of determining the amount of any
applicable CDSC, the length of time you have owned Class B shares acquired by
exchange will be measured from the date you acquired the original shares and
will not be affected by any subsequent exchange.
Exchange requests received by PSC before 4:00 p.m. Eastern Time will be
effective on that day if the requirements below have been met, otherwise,
they will be effective on the next business day. PSC will process exchanges
only after receiving an exchange request in good order. There are currently
no fees or sales charges imposed at the time of an exchange. An exchange of
shares may be made only in states where legally permitted. For federal and
(generally) state income tax purposes, an exchange is considered to be a sale
of the shares of the Fund exchanged and a purchase of shares in another Fund.
Therefore, an exchange could result in a gain or loss on the shares sold,
depending on the tax basis of these shares and the timing of the transaction,
and special tax rules may apply.
You should consider the differences in objectives and policies of the Pioneer
funds, as described in each fund's current prospectus, before making any
exchange. To prevent abuse of the exchange privilege to the detriment of
other Fund shareholders, the Fund and PFD reserve the right to limit the
number and/or frequency of exchanges and/or to charge a fee for exchanges.
The exchange privilege may be changed or discontinued and may be subject to
additional limitations, including certain restriction on purchases by market
timer accounts.
X. DISTRIBUTION PLANS
The Fund has adopted a Plan of Distribution for both Class A shares ("Class A
Plan") and Class B shares ("Class B Plan") in accordance with Rule 12b-1
under the 1940 Act pursuant to which certain distribution and service fees
are paid.
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,
provided the categories of expenses for which reimbursement is made are
approved by the Fund's Board of Trustees. As of the date of this Prospectus,
the Board of Trustees has approved the following categories of expenses for
Class A shares of the Fund: (i) a service fee to be paid to qualified
broker-dealers in an amount not to exceed 0.25% per annum of the Fund's daily
net assets attributable to Class A shares; (ii) reimbursement to PFD for its
expenditures for broker-dealer commissions and employee compensation on
certain sales of the Fund's Class A shares with no initial sales charge (See
"How to Buy Fund Shares"); and (iii) reimbursement to PFD for expenses
incurred in providing services to Class A shareholders and supporting
broker-dealers and other organizations (such as banks and trust companies) in
their efforts to provide such services. Banks are currently prohibited under
the Glass-Steagall Act from providing certain underwriting or distribution
services. If a bank was prohibited from acting in any
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capacity or providing any of the described services, management would
consider what action, if any, would be appropriate.
Expenditures of the Fund pursuant to the Class A Plan are accrued daily and
may not exceed 0.25% of the Fund's average daily net assets attributable to
Class A shares. Distribution expenses of PFD are expected to substantially
exceed the distribution fees paid by the Fund in a given year. The Class A
Plan does not provide for the carryover of reimbursable expenses beyond
twelve months from the time the Fund is first invoiced for an expense. The
limited carryover provision in the Class A Plan may result in an expense
invoiced to the Fund in one fiscal year being paid in the subsequent fiscal
year and thus being treated for purposes of calculating the maximum
expenditures of the Fund as having been incurred in the subsequent fiscal
year. In the event of termination or non-continuance of the Class A Plan, the
Fund has twelve months to reimburse any expense which it incurs prior to such
termination or non-continuance, provided that payments by the Fund during
such twelve-month period shall not exceed 0.25% of the Fund's average daily
net assets during such period. The Class A Plan may not be amended to
increase materially the annual percentage limitation of average net assets
which may be spent for the services described therein without approval of the
shareholders of the Fund.
The Class B Plan provides that the Fund will pay a distribution fee at the
annual rate of 0.75% of the Fund's average daily net assets attributable to
Class B shares and will 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. The
distribution fee is intended to compensate PFD for its distribution services
to the Fund. The service fee is intended to be additional compensation for
personal services and/or account maintenance services with respect to Class B
shares. PFD also receives the proceeds of any CDSC imposed on the redemption
of Class B shares.
Commissions of 4%, equal to 3.75% of the amount invested and a first year's
service fee equal to 0.25% of the amount invested in Class B shares, are paid
to broker-dealers who have selling agreements with PFD. PFD may advance to
dealers the first year service fee at a rate up to 0.25% of the purchase
price of such shares and, as compensation therefore, PFD may retain the
service fee paid by the Fund with respect to such shares for the first year
after purchase. Dealers will become eligible for additional service fees with
respect to such shares commencing in the 13th month following the purchase.
Dealers may from time to time be required to meet certain criteria in order
to receive service fees. PFD or its affiliates are entitled to retain all
service fees payable under the Class B Plan for which there is no dealer of
record or for which qualification standards have not been met as partial
consideration for personal services and/or account maintenance services
performed by PFD or its affiliates for shareholder accounts.
XI. Dividends, Distributions and Taxation
The Fund has elected to be treated, has qualified, and intends to qualify
each year as a "regulated investment company" under the Code so that it will
not pay federal income taxes on income and capital gains distributed to
shareholders at least annually.
Under the Code, the Fund will be subject to a nondeductible 4% excise tax on
a portion of its undistributed ordinary income and capital gains if it fails
to meet certain distribution requirements with respect to each calendar year.
The Fund intends to make distributions in a timely manner and accordingly
does not expect to be subject to the excise tax.
Each business day the Fund declares a dividend consisting of substantially
all of its net investment income (earned interest income less expenses).
Shares being purchased will begin earning dividends on the first business day
following receipt of payment for purchased shares. Shares continue to earn
dividends up to and including the date of redemption. Dividends are normally
paid on the last business day of the month or shortly thereafter.
Distributions from net short-term capital gains, if any, may be paid with
such dividends; distributions of dividends and capital gains may also be made
at such times as may be necessary to avoid federal income or excise tax.
Unless shareholders specify otherwise, all distributions will be
automatically reinvested in additional full and fractional shares of the
Fund. For federal income tax purposes, all dividends are taxable as described
below whether a shareholder takes them in cash or reinvests them in
additional shares of the Fund. Information as to the tax status of
distributions will be provided annually. See "Distribution Options" and
"Directed Dividends."
The Fund's dividends from its net investment income, including interest
income, original issue discount, market discount, income from securities
lending, and certain net realized foreign exchange gains, and from any net
short-term capital gains realized by the Fund are taxable to shareholders as
ordinary income under the Code. Dividends from the Fund's net long-term
capital gains are taxable to shareholders as long-term capital gains under
the Code, regardless of a shareholder's holding period for his Fund shares.
Dividends and other distributions and the proceeds of redemptions, exchanges
or repurchase of Fund shares paid to individuals and other non-exempt payees
will be subject to a 31% federal backup withholding tax if the Fund is not
provided with the shareholder's correct taxpayer identification number and
certification that the number is correct and the shareholder is not subject
to such backup withholding or if the Fund receives notice from the IRS or a
broker that such withholding applies. Please refer to the Account Application
for additional information.
The description above relates only to federal income tax consequences for
shareholders who are U.S. persons, i.e., U.S. citizens or residents, or U.S.
corporations, partnerships, trusts or estates and who are subject to federal
income tax. It is possible that many states will exempt from personal income
tax that portion of the Fund's dividends attributable to interest received by
the Fund from certain U.S. Government obligations. Accordingly, the Fund will
report annually to its shareholders the percentage of interest income earned
from such securities during the preceding year. Shareholders
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should consult their own tax adviser regarding this possibility and other tax
consequences under state, local and other applicable tax laws.
XII. SHAREHOLDER SERVICES
PSC is the shareholder services and transfer agent for shares of the Fund.
PSC, a Massachusetts corporation, is a wholly-owned subsidiary of PGI. PSC's
offices are located at 60 State Street, Boston, Massachusetts 02109, and
inquiries to PSC should be mailed to Shareholder Services, Pioneering
Services Corporation, P.O. Box 9014, Boston, Massachusetts 02205-9014. Brown
Brothers Harriman & Co. (the "Custodian") serves as the custodian of the
Fund's securities and other assets. The principal business address of the
mutual fund division of the Custodian is 40 Water Street, Boston,
Massachusetts 02109.
Account and Confirmation Statements
PSC maintains an account for each shareholder and all transactions of the
shareholder are recorded in this account. Confirmation statements showing the
details of transactions are sent to shareholders quarterly for dividend
reinvestment transactions and more frequently for other types of
transactions. The Pioneer Combined Account Statement, mailed quarterly, is
available to all shareholders who have more than one Pioneer Account.
Shareholders whose shares are held in the name of an investment broker-dealer
or other party will not normally have an account with the Fund and might not
be able to utilize some of the services available to shareholders of record.
Examples of services that might not be available are investment or redemption
of shares by mail, automatic reinvestment of dividends and capital gains
distributions, withdrawal plans, Letters of Intention, Rights of
Accumulation, telephone exchanges and redemptions and newsletters.
Additional Investments
Additions to a shareholder's account may be made by sending a check (minimum
of $50 for Class A shares and $500 for Class B shares) to PSC (account number
and Class of shares should be clearly indicated). The bottom portion of a
confirmation statement may be used as a remittance slip to make additional
investments. Additions to a shareholder's account, whether by check or
through an Investomatic Plan, are invested in full and fractional shares of
the Fund at the applicable offering price in effect as of the close of
regular trading on the Exchange on the day of receipt.
Automatic Investment Plans
You may arrange for regular automatic investments of $50 or more through
government/military allotments or through a Pioneer Investomatic Plan. A
Pioneer Investomatic Plan provides for a monthly or quarterly investment by
means of a preauthorized electronic funds transfer or draft drawn on a
checking account. Investomatic Plan investments are voluntary, and you may
discontinue the Plan without penalty upon 30 days' written notice to PSC. PSC
acts as agent for the purchaser, the broker-dealer and PFD in maintaining
these plans.
Financial Reports and Tax Information
As a shareholder, you will receive financial reports at least semi-annually.
In January of each year the Fund will mail to you information about the tax
status of dividends and distributions.
Distribution Options
Dividends and capital gains distributions, if any, will automatically be
invested in additional shares of the Fund, at the applicable net asset value
per share, unless you indicate another option on the Account Application.
Two other options available are (a) dividends in cash and capital gains
distributions in additional shares; and (b) all dividends and capital gains
distributions in cash. These two options are not available, however, for
retirement plans or an account with a net asset value of less than $500.
Changes in the distribution option may be made by written request to PSC.
Directed Dividends
You may elect (in writing) to have the dividends paid by one Pioneer fund
account invested in a second Pioneer fund. The value of this second account
must be at least $1,000 ($500 for Pioneer Fund or Pioneer II). Invested
dividends may be in any amount. There are no fees or charges for this
service. Retirement plan shareholders may only direct dividends to accounts
with identical registrations i.e., PGI IRA Cust for John Smith may only go
into another account registered PGI IRA Cust for John Smith.
Direct Deposit
If you have elected to take distributions, whether dividends or dividends and
capital gains, in cash, or have established a Systematic Withdrawal Plan, you
may choose to have those cash payments deposited directly into your savings,
checking or NOW bank account. You may establish this service by completing
the appropriate section on the Account Application when opening a new account
or the Account Options Form for an existing account.
Voluntary Tax Withholding
You may request (in writing) that PSC withhold 28% of the dividends and
capital gain distributions paid from an account (before any reinvestment) and
forward the amount withheld to the Internal Revenue Service as a credit
against Federal income taxes. This option is not available for retirement
plan accounts or for accounts subject to backup withholding.
Telephone Transactions and Related Liabilities
Your account is automatically authorized to have telephone transaction
privileges unless you indicated otherwise on your Account Application or by
writing to PSC. You may sell or exchange your Fund shares by telephone by
calling 1-800-225-6292 between 8:00 a.m. and 8:00 p.m. Eastern Time on
weekdays. See "Share Price" for more information. To confirm that each
transaction instruction received by telephone is genuine, the Fund will
record each telephone transaction, require the caller to provide the personal
identification number (PIN) for the account and send you a written
confirmation of each telephone
12
<PAGE>
transaction. Different procedures may apply to accounts that are registered
to non-U.S. citizens or that are held in the name of an institution or in the
name of an investment broker-dealer or other third-party. If reasonable
procedures, such as those described above, are not followed, the Fund may be
liable for any loss due to unauthorized or fraudulent instructions. The Fund
may implement other procedures from time to time. In all other cases, neither
the Fund, PSC or PFD will be responsible for the authenticity of instructions
received by telephone, therefore, you bear the risk of loss for unauthorized
or fraudulent telephone transactions.
During times of economic turmoil or market volatility or as a result of
severe weather or a natural disaster, it may be difficult to contact the Fund
by telephone to institute a redemption or exchange. You should communicate
with the Fund in writing if you are unable to reach the Fund by telephone.
Retirement Plans
Interested persons should contact the Retirement Plans Department of PSC at
1-800-622-0176 for information relating to retirement plans for business,
age-weighted profit sharing plans, Simplified Employee Pension Plans,
Individual Retirement Accounts (IRAs), Section 401(k) salary reduction plans
and Section 403(b) retirement plans for employees of certain non-profit
organizations and public school systems, all of which are available in
conjunction with investments in the Fund. The Pioneer Mutual Funds Account
Application accompanying this Prospectus should not be used to establish such
plans. Separate applications are required.
Telecommunications Device for the Deaf (TDD)
If you have a hearing disability and you own TDD keyboard equipment, you can
call our TDD number toll-free at 1-800-225-1997, weekdays from 8:30 a.m. to
5:30 p.m. Eastern Time, to contact our telephone representatives with
questions about your account.
Systematic Withdrawal Plans
If your account has a total value of at least $10,000 you may establish a
Systematic Withdrawal Plan ("SWP") providing for fixed payments at regular
intervals. Withdrawals from Class B share accounts are limited to 10% of the
value of the account at the time the plan is implemented. See "Waiver or
Reduction of Contingent Deferred Sales Charge" for more information. Periodic
checks of $50 or more will be sent to you, or any person designated by you,
monthly or quarterly and your periodic redemptions of shares may be taxable
to you. You may also direct that withdrawal checks be paid to another person,
although if you make this designation after you have opened your account, a
signature guarantee must accompany your instructions. Purchases of Class A
shares of the Fund at a time when you have a SWP in effect may result in the
payment of unnecessary sales charges and may therefore be disadvantageous.
You may obtain additional information by calling PSC at 1-800-225-6292 or by
referring to the Statement of Additional Information.
Reinstatement Privilege (Class A Shares Only)
If you redeem all or part of your Class A shares of the Fund, you may
reinvest all or part of the redemption proceeds without a sales commission in
Class A shares of the Fund if you send a written request to PSC not more than
90 days after your shares were redeemed. Your redemption proceeds will be
reinvested at the next determined net asset value of the shares of the Fund
after receipt of the written request for reinstatement. You may realize a
gain or loss for federal income tax purposes as a result of the redemption,
and special tax rules may apply if a reinvestment occurs. Subject to the
provisions outlined under "How to Exchange Fund Shares" above, you may also
reinvest in certain other Pioneer mutual funds; in this case you must meet
the minimum investment requirement for each fund you enter. The 90-day
reinvestment period may be extended by PFD for periods of up to one year for
shareholders living in areas that have experienced a natural disaster, such
as a flood, hurricane, tornado or earthquake.
The options and services available to shareholders, including the terms of
the Exchange Privilege and the Pioneer Investomatic Plan, may be revised,
suspended, or terminated at any time by PFD or by the Fund. You may establish
the services described in this section when you open your account. You may
also establish or revise many of them on an existing account by completing an
Account Options Form, which you may obtain by calling 1-800-225-6292.
XIII. THE FUND
The Fund is an open-end diversified management investment company (commonly
referred to as a mutual fund) organized as a Massachusetts corporation on
August 16, 1978 and reorganized as a Massachusetts business trust on December
31, 1985. The Fund will recognize stock certificates representing shares of
Pioneer Bond Fund, Inc. issued prior to its reorganization as a Massachusetts
business trust as evidence of ownership of an equivalent number of shares of
beneficial interest. Any shareholder desiring to surrender a stock
certificate to the Fund for a share certificate representing an equivalent
number of shares of beneficial interest may do so by making a written request
for the exchange to PSC. The request must be accompanied by the surrendered
stock certificate which must be endorsed on the back exactly in the manner as
the certificate is registered.
The Fund has authorized an unlimited number of shares of beneficial interest
and the Trustees are authorized to create additional series of the Fund. The
Fund is not required to hold annual meetings, although special meetings may
be called for the purposes of electing or removing Trustees, changing
fundamental investment restrictions or approving a management contract. The
Trustees have the authority, without further shareholder approval, to
classify and reclassify the shares of the Fund, or any new series of the
Fund, into one or more classes. As of the date of this Prospectus, the
Trustees have authorized the issuance of two Classes of shares, designated
Class A and Class B. The shares of each Class represent an interest in the
same portfolio of investments of the Fund. Each Class has equal rights as to
voting, redemption, dividends and liquidation, except that each Class bears
different distribution and transfer agent fees and may bear other expenses
properly attributable to the particular Class.
13
<PAGE>
Class A and Class B shareholders have exclusive voting rights with respect to
the Rule 12b-1 distribution plans adopted by holders of those shares in
connection with the distribution of shares.
XIV. INVESTMENT RESULTS
The average annual total return (for a designated period of time) on an
investment in the Fund may be included in advertisements, and furnished to
existing or prospective shareholders. The average annual total return for
each Class is computed in accordance with the SEC's standardized formula. The
calculation for all Classes assumes the reinvestment of all dividends and
distributions at net asset value and does not reflect the impact of federal
or state income taxes. In addition, for Class A shares the calculation
assumes the deduction of the maximum sales charge of 4.50%; for Class B
shares the calculation reflects the deduction of any applicable contingent
deferred sales charge. The periods illustrated would normally include one,
five and ten years (or since the commencement of the public offering of the
shares of a Class, if shorter) through the most recent calendar quarter.
One or more additional measures and assumptions, including but not limited to
historical total returns; distribution returns; results of actual or
hypothetical investments; changes in dividends, distributions or share
values; or any graphic illustration of such data may also be used. These data
may cover any period of the Fund's existence and may or may not include the
impact of sales charges, taxes or other factors.
Other investments or savings vehicles and/or unmanaged market indexes,
indicators of economic activity or averages of mutual fund results may be
cited or compared with the investment performance of the Fund. Rankings or
listings by magazines, newspapers or independent statistical or rating
services, such as Lipper Analytical Services, Inc., may also be referenced.
The Fund's investment results will vary from time to time depending on market
conditions, the composition of the Fund's portfolio and operating expenses of
the Fund. All quoted investment results are historical and should not be
considered representative of what an investment in the Fund may earn in any
future period. For further information about the calculation methods and uses
of the Fund's investment results, see the Statement of Additional
Information.
14
<PAGE>
THE PIONEER FAMILY OF MUTUAL FUNDS
Growth Funds
Pioneer Capital Growth Fund
Pioneer Growth Shares
Pioneer International Growth Fund
Pioneer Europe Fund
Pioneer Emerging Markets Fund
Growth and Income Funds
Pioneer Three
Pioneer II
Pioneer Fund
Pioneer Equity-Income Fund
Pioneer Winthrop Real Estate Investment Fund
Income Funds
Pioneer Income Fund
Pioneer Bond Fund
Pioneer America Income Trust
Pioneer Tax-Free Income Fund
Pioneer California Double Tax-Free Fund
Pioneer Massachusetts Double Tax-Free Fund
Pioneer New York Triple Tax-Free Fund
Pioneer Intermediate Tax-Free Fund
Pioneer Short-Term Income Trust
Specialized Growth Funds
Pioneer Gold Shares
Pioneer India Fund
Money Market Funds
Pioneer Cash Reserves Fund
Pioneer U.S. Government Money Fund
Pioneer Tax-Free Money Fund
15
<PAGE>
Pioneer
Bond Fund
Class A and
Class B Shares
Prospectus
October 28, 1994
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
INVESTMENT ADVISER
PIONEERING MANAGEMENT CORPORATION
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
INDEPENDENT PUBLIC ACCOUNTANTS
ARTHUR ANDERSEN LLP
LEGAL COUNSEL
HALE AND DORR
PRINCIPAL UNDERWRITER
PIONEER FUNDS DISTRIBUTOR, INC.
SHAREHOLDER SERVICES AND TRANSFER AGENT
PIONEERING SERVICES CORPORATION
60 State Street
Boston, Massachusetts 02109
Telephone: 1-800-225-6292
SERVICE INFORMATION
If you would like information on the following, please call . . .
Existing and new accounts, prospectuses,
applications, service forms and
telephone transactions .................................. 1-800-225-6292
Automated fund yields, prices and
account information ..................................... 1-800-225-4321
Retirement plans .......................................... 1-800-622-0176
Toll-free fax ............................................. 1-800-225-4240
Telecommunications Device for the Deaf (TDD) .............. 1-800-225-1997
0395-2128-2
(C)Pioneer Funds Distributor, Inc.
<PAGE>
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
INVESTMENT ADVISER
PIONEERING MANAGEMENT CORPORATION
PRINCIPAL UNDERWRITER
PIONEER FUNDS DISTRIBUTOR, INC.
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
INDEPENDENT PUBLIC ACCOUNTANTS
ARTHUR ANDERSEN LLP
LEGAL COUNSEL
HALE AND DORR
SHAREHOLDER SERVICES AND TRANSFER AGENT
PIONEERING SERVICES CORPORATION
60 State Street
Boston, Massachusetts 02109
Telephone: 1-800-225-6292
SERVICE INFORMATION
If you would like information on the following, please call . . .
Existing and new accounts, prospectuses,
applications, service forms and
telephone transactions .................................. 1-800-225-6292
Automated fund yields, prices and
account information ..................................... 1-800-225-4321
Retirement plans .......................................... 1-800-622-0176
Toll-free fax ............................................. 1-800-225-4240
Telecommunications Device for the Deaf (TDD) .............. 1-800-225-1997
0195-2128-1
(C)Pioneer Funds Distributor, Inc.
(PIONEER LOGO)
Pioneer
Bond
Fund
Class A and
Class B Shares
Prospectus
October 28, 1994
