[Pioneer Logo]
Pioneer Bond
Fund
SEMIANNUAL REPORT 12/31/96
<PAGE>
T a b l e o f C o n t e n t s
<TABLE>
<CAPTION>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 14
Notes to Financial Statements 20
Report of Independent Public Accountants 23
Trustees, Officers and Service Providers 24
Programs and Services for Pioneer Shareowners 26
The Pioneer Family of Mutual Funds 27
</TABLE>
<PAGE>
Pioneer Bond Fund
LETTER FROM THE CHAIRMAN 12/31/96
D e a r S h a r e o w n e r,
Welcome to this semiannual report on Pioneer Bond Fund, covering the six
months ended December 31, 1996. Despite what turned out to be a volatile
period for the bond market, your Fund continued to pay regular dividends and
posted a modest total return.
Without question, the past six months were difficult for quality-oriented
bond investors. High-quality issues, particularly U.S. government securities,
were in far less demand than low-rated issues. Why? One reason is that the
performance of "junk" bonds often reflects stock performance; it's no secret
that 1996 was a year of extraordinary gains in stock prices. The speculative
edge that seemed to creep into the stock market - typified by investors'
seemingly unquenchable thirst for little-understood initial public offerings
and expensive but familiar companies - appears to have spilled over into the
bond market. As a result, junk bonds cost nearly as much as higher-quality
issues by the end of the period.
No one can predict with any accuracy when investor psychology will shift so
that today's "good" investment suddenly looks "bad" or expensive. However,
the benefits of a high-quality portfolio and a disciplined investment style
are clear, and should become more apparent if the stock market runs into any
difficulty. The backdrop for bonds is favorable again, with interest rates
moving down and inflation holding at low levels. In all, we think Pioneer
Bond Fund is still a sound investment for quality-conscious investors looking
for regular income.
Please contact your investment representative, or us at 1-800-225-6292, if
you have questions about your investment in Pioneer Bond Fund. Thank you for
your continued support.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
<PAGE>
Pioneer Bond Fund
PORTFOLIO SUMMARY 12/31/96
P o r t f o l i o D i v e r s i f i c a t i o n
(As a percentage of total investment portfolio)
[Pie Chart]
Short-Term Cash Equivalents 1%
International 7%
U.S. Government and Agency 34%
Corporate 58%
P o r t f o l i o M a t u r i t y
(Effective life as a percentage of total investment portfolio)
[Pie Chart]
10-20 Years 8%
7-10 Years 9%
5-7 Years 9%
20+ Years 18%
0-2 Years 17%
2-5 Years 39%
1 0 L a r g e s t H o l d i n g s
(As a percentage of long-term holdings)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1. U.S. Treasury Notes, 6. Imperial Oil, Ltd., 8.75%,
7.0%, 2006 6.22% 2019 2.41%
2. U.S. Treasury Notes, 7. International Bank for
8.5%, 2000 5.48 Reconstruction and
Development, Deb. 9.25%,
2017 2.13
3. U.S. Treasury Notes, 8. General Motors Corp., Notes,
8.25%, 1998 4.65 9.4%, 2021 2.07
4. U.S. Treasury Bonds, 9. U.S. Treasury Notes, 8.75%,
7.25%, 2022 3.62 2008 1.92
5. U.S. Treasury Notes, 10. Ford Motor Credit Co.,
8.0%, 2001 3.20 9.14%, 2014 1.90
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Bond Fund
PERFORMANCE UPDATE 12/31/96 CLASS A SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/96 6/30/96
$9.15 $9.08
Distributions per Share Income Short-Term Long-Term
(6/30/96-12/31/96) Dividends Capital Gains Capital Gains
$0.321 - -
</TABLE>
I n v e s t m e n t R e t u r n s
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Bond Fund at public offering price, compared to the growth of the
Lehman Brothers Government/Corporate Bond Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of December 31, 1996)
Period Net Asset Public Offering
Value Price*
<S> <C> <C>
10 Years 7.82% 7.33%
5 Years 6.77% 5.78%
1 Year 1.96% -2.60%
</TABLE>
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
[Mountain Chart]
[plots for mountain chart]
Growth of $10,000
Pioneer Lehman Brothers
Bond Government/Corporate
Fund* Bond Index
12/86 9550 10000
12/87 9809 10230
12/88 10563 11007
12/89 11790 12574
12/90 12652 13614
12/91 14618 15806
12/92 15771 17004
12/93 17573 18884
12/94 16836 18221
12/95 19893 21729
12/96 20283 22367
The Lehman Brothers Government/Corporate Bond Index is an unmanaged, composite
index of the U.S. bond market. It contains 5,353 issues, including Treasury and
government agency securities, investment-grade corporate bonds and Yankee bonds.
Index returns assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees, expenses or sales charges. You cannot invest directly in the
Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
3
<PAGE>
Pioneer Bond Fund
PERFORMANCE UPDATE 12/31/96 CLASS B SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/96 6/30/96
$9.11 $9.02
Distributions per Share Income Short-Term Long-Term
(6/30/96-12/31/96) Dividends Capital Gains Capital Gains
$0.26 - -
</TABLE>
I n v e s t m e n t R e t u r n s
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Bond Fund, compared to the growth of the Lehman Brothers
Government/Corporate Bond Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
(As of December 31, 1996)
Period If If
Held Redeemed
Life of Fund 6.09% 5.11%
<S> <C> <C>
(4/4/94)
1 Year 1.11% -2.70%
</TABLE>
* Reflects deduction of the maximum applicable contingent deferred sales
charge (CDSC) at the end of the period and assumes reinvestment of
distributions. The maximum CDSC of 4% declines over six years.
[Mountain Chart]
[plots for mountain chart]
Growth of $10,000+
Pioneer Lehman Brothers
Bond Government/Corporate
Fund* Bond Index
4/94 10000 10000
6/94 9896 9959
9/94 9914 10009
12/94 9906 10046
3/95 10327 10546
6/95 10942 11231
9/95 11089 11446
12/95 11600 11980
3/96 11274 11699
6/96 11286 11753
9/96 11439 11960
12/96 11432 12326
*Index comparison begins 4/30/94. The Lehman Brothers Government/Corporate Bond
Index is an unmanaged, composite index of the U.S. bond market. It contains
5,353 issues, including Treasury and government agency securities, investment-
grade corporate bonds and Yankee bonds. Index returns assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
4
<PAGE>
Pioneer Bond Fund
PERFORMANCE UPDATE 12/31/96 CLASS C SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/96 6/30/96
$9.11 $9.02
Distributions per Share Income Short-Term Long-Term
(6/30/96-12/31/96) Dividends Capital Gains Capital Gains
$0.26 - -
</TABLE>
I n v e s t m e n t R e t u r n s
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Bond, compared to the growth of the Lehman Brothers
Government/Corporate Bond Index.
<TABLE>
<CAPTION>
Cumulative Total Returns
(As of December 31, 1996)
Period If If
Life of Fund Held Redeemed*
<S> <C> <C>
(1/31/96) 0.81% -0.15%
</TABLE>
* Reflects deduction of the 1% contingent deferred sales charge (CDSC) at the
end of the period and assumes reinvestment of distributions.
[Mountain Chart]
[plots for mountain chart]
Growth of $10,000
Pioneer Lehman Brothers
Bond Government/Corporate
Fund* Bond Index
1/96 10000 10000
2/96 9766 9788
3/96 9679 9706
4/96 9612 9639
5/96 9620 9622
6/96 9700 9750
7/96 9714 9773
8/96 9687 9748
9/96 9831 9922
10/96 10029 10153
11/96 10207 10340
12/96 9986 10227
The Lehman Brothers Government/Corporate Bond Index is an unmanaged, composite
index of the U.S. bond market. It contains 5,353 issues, including Treasury and
government agency securities, investment-grade corporate bonds and Yankee bonds.
Index returns assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees, expenses or sales charges. You cannot invest directly in the
Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
5
<PAGE>
Pioneer Bond Fund
PORTFOLIO MANAGEMENT DISCUSSION 12/31/96
Dear Shareowner,
Pioneer Bond Fund completed the first half of its nineteenth fiscal year on
December 31, 1996. The bond market generally gained strength as the period
progressed, bouncing back nicely from the price declines recorded by many
high-quality bonds earlier in 1996. While downturns did exist during the six
months, overall results were solid for investors.
Rising Bond Prices for Much of the Period
Financial markets overall ended higher on December 31 than where they stood
on June 30. Volatility remained an issue, however, with some significant
price swings recorded - from both stocks and bonds - particularly during July
and December. The declines in December primarily stemmed from investors'
unfavorable reaction to Federal Reserve Chairman Greenspan's comments on the
stock market's "exuberance," and the implied potential for an increase in
interest rates. In fact, most of the volatility that occurred during the six
months was the result of perceptions and emotions. Many investors tried to
anticipate the Federal Reserve's attitude about the economy, or whether it
would raise or lower short-term interest rates. As it turned out, the Fed
made no changes to interest rates during the fiscal period. Despite interim
volatility, results for the six months were positive. Reflecting this, the
yield on the benchmark 30-year Treasury bond was 6.64% on December 31, versus
6.91% on July 1, after hitting a low for the period of 6.35% on November 29.
While Treasury and other high-quality investments proved rewarding, they did
not match the performance of many lower-quality securities. With the economy
doing well and stock prices on the rise, many investors became more
aggressive, selecting "junk" bonds and comparably risky securities. Because
your Fund is committed to high-quality investments, it lagged funds that held
low-grade issues in their portfolios. In our view, however, low-quality bonds
subject investors to risks they may not even realize they are taking, until
the market turns against them. We hold to our belief that conservative,
high-quality investments should have a place in most investors' portfolios.
We intend to maintain the high quality shareowners have come to depend on, as
we continue to do all we can to deliver consistent
6
<PAGE>
Pioneer Bond Fund
dividends and competitive investment returns. For additional information
about Fund performance, please refer to the Performance Update section on
page 3.
Maintaining a Diversified, High-Quality Portfolio in a Fast-Moving Market
Pioneer Bond Fund invests for current income through U.S. government
securities and high-quality corporate bonds. The Fund chooses only securities
issued by the U.S. government and its agencies, or corporate bonds rated AAA
to BBB. What's more, at least 85% of the portfolio must be invested in bonds
rated A or better by major rating agencies. As of December 31, the average
quality rating of Fund holdings was AA. Additional information about the
Fund's portfolio appears on page 2.
We kept the portfolio fairly constant over the six months, given the overall
volatility in bond prices. At year-end, securities with fewer than five years
to maturity comprised 55% of the portfolio, down slightly from 61% on June
30. We favored issues in the two-to-five year range (38%) since they
generated more income than their shorter-term counterparts, while still
contributing to overall price stability. We did modestly increase the Fund's
position in long-term Treasury bonds, since they offer a good way to
participate in the bond market's improving performance. Treasurys also can be
traded quickly and therefore give us an efficient way to adjust the
portfolio. Adding these securities caused the Fund's duration (which reflects
the sensitivity of bond prices to changes in interest rates) to increase
slightly over the six months, reflecting our more optimistic, yet still
conservative, outlook for the bond market. The portfolio's average effective
life also increased, from 7.6 years on June 30 to 8.5 years on December 31.
Over the six months, we added a few corporate issues with an A or BBB rating,
to take advantage of the strong performance being turned in by lower-rated
bonds. As always, however, we performed a lengthy credit analysis before
adding these securities to the portfolio. We are comfortable with the Fund's
mix of quality, especially since no issue falls below investment-grade, and
the average rating remains conservative. Industrial issues stayed the most
prominent within the portfolio's corporate holdings, although we kept the
Fund diversified across a variety of sectors. Our bias
7
<PAGE>
Pioneer Bond Fund
PORTFOLIO MANAGEMENT DISCUSSION (continued)
remains on well-known, proven companies that have a history of repaying their
debt. Examples include Caterpillar, CoreStates Capital and Tenneco.
Moving Forward
As we indicated in your Fund's June 30 annual report, bond prices remained
volatile over the period, reflecting how emotionally driven markets became in
1996 - especially in a year when the Fed made only one change (furthermore, a
cut) in short-term interest rates. We believe, particularly in the face of
increasing emotions, that a long-term view is the best way to overcome
volatility and pursue financial goals.
We also are encouraged by factors that affect bond investing. Namely, we
believe inflation will remain tame moving into 1997, since signs of an
accelerated economy are, in our view, simply not apparent. The economy has
shown sustainable and good growth, without "over-heating" - an important
difference. As more investors realize the actual state of the economy and
inflation, they may become less emotional, which could help lower the
volatility we saw in the bond market in 1996. Moreover, the improving budget
deficit, as well as ongoing efforts to achieve a balanced budget, could
benefit bonds. Finally, we expect that investors - especially those who asset
allocate - may look to rebalance their portfolios with more bond investments,
given the appreciation that stocks experienced during the past year. Of
course, whatever factors come into play, our primary focus for your Fund
remains unchanged: We will pursue a steady stream of income from high-quality
holdings. We expect Pioneer Bond Fund's conservative focus will reward
patient investors. Thank you for your continued support.
Respectfully,
/s/ Sherman B. Russ
Sherman B. Russ
Portfolio Manager
8
<PAGE>
Pioneer Bond Fund
SCHEDULE OF INVESTMENTS 12/31/96
<TABLE>
<CAPTION>
S&P/Moody's
Principal Ratings
Amount (Unaudited) Value
<S> <C> <C> <C>
INVESTMENT IN SECURITIES - 99.5%
U.S. Government and Agency
Obligations - 34.2%
$ 68,778 Federal Home Loan Mortgage Corp., 10.0%,
2002 $ 72,260
117,511 Federal Home Loan Mortgage Corp., 10.5%,
2019 130,105
149,187 Federal Home Loan Mortgage Corp., REMIC
Series 1988-24B, 9.5%, 2005 156,614
1,000,000 Federal National Mortgage Association, 8.8%,
1997 1,017,970
1,000,000 Federal National Mortgage Association, 9.2%,
1997 1,014,530
1,500,000 Federal National Mortgage Association, 9.2%,
2000 1,642,740
1,000,000 Federal National Mortgage Association,
10.35%, 2015 1,343,120
91,054 Federal National Mortgage Association,
10.0%, 2019 100,215
790,187 Federal National Mortgage Association,
11.0%, 2019 894,270
1,269,464 Federal National Mortgage Association, REMIC
Series 1989-72D, 8.9%, 2019 1,311,903
587,247 Federal National Mortgage Association, REMIC
Series 1989-19A, 10.3%, 2019 647,645
7,752 Federal National Mortgage Association, REMIC
Series 1989-19B, 10.3%, 2019 8,156
115,813 Government National Mortgage Association,
Midget, 10.0%, 2004 122,544
301,747 Government National Mortgage Association,
10.0%, 2006 319,285
337,638 Government National Mortgage Association,
10.0%, 2018 371,875
190,953 Government National Mortgage Association,
9.5%, 2020 206,560
436,347 Government National Mortgage Association,
10.0%, 2020 479,981
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
Pioneer Bond Fund
SCHEDULE OF INVESTMENTS 12/31/96 (continued)
U.S. Government and Agency
Obligations - (continued)
$1,000,000 Resolution Trust Corp., Series 1992-5A6,
9.238%, 2026 $ 1,010,000
4,000,000 U.S. Treasury Bonds, 7.25%, 2022 4,231,240
5,250,000 U.S. Treasury Notes, 8.25%, 1998 5,437,005
6,000,000 U.S. Treasury Notes, 8.5%, 2000 6,407,820
3,500,000 U.S. Treasury Notes, 8.0%, 2001 3,740,065
7,000,000 U.S. Treasury Notes, 7.0%, 2006 7,272,370
2,000,000 U.S. Treasury Notes, 8.75%, 2008 2,245,620
-------------
Total U.S. Government and Agency
Obligations (Cost $40,286,878) $40,183,893
-------------
Industrials - 30.1%
1,000,000 A-/A2 Alcan Aluminum, Ltd., Deb., 9.625%, 2019 $ 1,131,940
1,916,853 BBB-/A3 American Airlines, Inc., 9.71%, 2007 2,149,885
1,000,000 A/A3 Arco Chemical Co., Deb., 9.8%, 2020 1,257,720
500,000 A/A2 Atlantic Richfield Co., Deb., 9.875%, 2016 625,940
1,500,000 A/A2 Caterpillar, Inc., 9.75%, 2019 1,643,865
1,200,000 BBB/Baa3 Centex Corp., Deb., 8.75%, 2007 1,275,000
1,500,000 BB+/Baa3 Coastal Corp., Deb., 9.625%, 2012 1,788,615
2,000,000 A-/A3 General Motors Corp., Notes, 9.4%, 2021 2,414,740
1,000,000 BBB-/Baa2 Georgia-Pacific Corp., Deb., 9.5%, 2022 1,081,890
2,600,000 AA+/Aa2 Imperial Oil, Ltd., 8.75%, 2019 2,812,550
1,000,000 BBB/Ba1 Joy Technologies Co., Sen. Notes, 10.25%,
2003 1,102,500
1,500,000 BBB/Baa3 News America Holdings, 10.125%, 2012 1,720,215
1,000,000 AA/Aa3 Norfolk Southern Corp., Notes, 9.0%, 2021 1,142,260
1,000,000 A+/A1 J.C. Penney Company, Inc., Deb., 9.75%, 2021 1,120,060
2,000,000 BBB/Baa1 Phillips Petroleum Co., Deb., 9.18%, 2021 2,201,880
1,500,000 AA/Aa2 Procter & Gamble Co., Notes, 9.36%, 2021 1,821,600
1,000,000 BBB+/A3 Supervalue, Inc., Notes, 8.875%, 2022 1,060,670
1,250,000 BBB-/Ba1 Tele-Communication Inc., Deb., 10.125%, 2022 1,372,525
1,500,000 BBB-/Baa2 Tenneco, Inc., Notes, 10.075%, 2001 1,658,490
1,250,000 A+/A1 Texaco Capital Corp., Gtd. Deb., 9.75%, 2020 1,590,875
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
Pioneer Bond Fund
Industrials - (continued)
$2,000,000 BBB-/Ba1 Time Warner, Inc., Deb., 9.15%, 2023 $ 2,167,980
1,000,000 BB+/Baa3 USX Corp.-U.S. Steel Group, Deb., 9.375%,
2012 1,160,390
1,000,000 AA/Aa2 Wal-Mart Stores, Inc., Deb., 8.50%, 2024 1,070,050
-------------
Total Industrials (Cost $34,047,535) $35,371,640
-------------
Financial - 8.7%
2,000,000 A+/A1 Ford Motor Credit Co., 9.14%, 2014 $ 2,223,220
1,500,000 AA/Aa2 GEICO Corp., Deb., 9.15%, 2021 1,726,095
2,000,000 AAA/Aaa Standard Credit Card Master Trust Series
1991-3A, 8.875%, 1998 2,080,000
2,000,000 AAA/Aaa Standard Credit Card Trust Series 1990-6A,
9.375%, 1997 2,035,000
1,000,000 A/A2 Transamerica Corp., 9.875%, 1998 1,037,150
1,000,000 A+/A3 W.R. Berkley, Deb., 8.7%, 2022 1,099,120
-------------
Total Financial (Cost $10,032,928) $10,200,585
-------------
Banks - 14.5%
1,000,000 A+/A1 Banc One Corp., Sub. Notes, 10.0%, 2010 $ 1,233,060
1,000,000 A/A3 BankAmerica, Sub. Notes, 9.375%, 2001 1,096,680
1,000,000 AA-/Aa3 Barclays North American Capital Corp., Gtd.
Sub. Cap. Notes, 9.75%, 2021 1,139,640
1,000,000 A-/A2 Chase Manhattan, 8.5%, 2002 1,073,510
1,000,000 A-/A2 Chemical NY Corp., Sub. Notes, 9.75%, 1999 1,072,920
1,250,000 A-/A3 Comerica, Inc., Sub. Deb., 10.125%, 1998 1,310,862
1,550,000 A-/A2 CoreStates Capital Corp., Gtd. Sub. Notes,
9.375%, 2003 1,751,686
1,500,000 A-/A2 First Chicago Corp., Sub. Notes, 10.25%,
2001 1,698,825
2,000,000 BBB+/A3 First Interstate Bancorp, Sub. Notes, 9.0%,
2004 2,118,000
1,500,000 BBB+/A3 Fleet/Norstar Financial Group, Sub. Notes,
9.9%, 2001 1,684,560
1,000,000 A-/A3 Mellon Financial, Sub. Deb., 9.75%, 2001 1,111,680
1,000,000 AA-/Aa3 National Westminster Bancorp, Inc., Gtd.
Cap. Notes, 9.375%, 2003 1,139,900
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Pioneer Bond Fund
SCHEDULE OF INVESTMENTS 12/31/96 (continued)
Banks - (continued)
$ 500,000 AA-/A1 Republic New York Corp., Sub. Notes, 9.3%,
2021 $ 601,680
-------------
Total Banks (Cost $16,171,334) $ 17,033,003
-------------
Utilities - 5.1%
500,000 AAA/Aaa Cajun Electric Power, Cooperative Utility
Trust, 10.125%, 2019 $ 546,945
2,000,000 BBB/Baa2 Commonwealth Edison, First Mortgage Bonds,
9.75%, 2020 2,214,040
1,000,000 A/A2 Virginia Electric Power, 8.75%, 2021 1,072,030
1,000,000 A-/A3 ONEOK, Inc., Deb., 9.7%, 2019 1,097,450
1,000,000 BBB+/Baa1 GTE Corp., Deb., 10.3%, 2017 1,082,450
-------------
Total Utilities (Cost $5,850,410) $ 6,012,915
-------------
Foreign - 6.9%
2,000,000 AAA/Aaa British Telecom Finance, Deb., 9.625%, 2019 $ 2,213,320
1,000,000 AAA/Aaa Inter-American Development Bank, Notes,
9.45%, 1998 1,053,100
2,000,000 AAA/Aaa International Bank for Reconstruction and
Development, Deb., 9.25%, 2017 2,487,920
500,000 AA-/Aa3 Province of Ontario, 15.75%, 2012 540,450
1,000,000 BBB+/A2 Province of Saskatchewan, 9.375%, 2020 1,234,000
500,000 AAA/Aaa Tokyo (Metropolis of), Gtd. Bonds, 10.375%,
1997 516,665
-------------
Total Foreign (Cost $7,779,587) $ 8,045,455
-------------
TOTAL INVESTMENT IN SECURITIES (Cost
$114,168,672) $116,847,491
-------------
TEMPORARY CASH
INVESTMENT - 0.5%
Commercial Paper - 0.5%
585,000 Household Finance Corp., 6.55%, 1/2/97 $ 585,000
-------------
TOTAL TEMPORARY CASH INVESTMENT (Cost
$585,000) $ 585,000
-------------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY
CASH INVESTMENT - 100%
(Cost $114,753,672) (a)(b) $117,432,491
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
Pioneer Bond Fund
(a) At December 31, 1996, the net unrealized gain on investments, based
on cost for federal income tax purposes of $114,753,672, was as follows:
<TABLE>
<CAPTION>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 4,064,858
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (1,386,039)
---------------
Net unrealized gain $ 2,678,819
---------------
</TABLE>
(b) At June 30, 1996, the Fund had a net capital loss carryforward of
approximately $3,200,964 which will expire between 1998 and 2004 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.
Purchases and sales of securities (excluding temporary cash investments)
for the six months ended December 31, 1996 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
--------------- ------------
<S> <C> <C>
Long-term U.S. Government $18,497,500 6,755,974
Other Long-term Securities 1,493,775 1,580,759
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
Pioneer Bond Fund
BALANCE SHEET 12/31/96
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary
cash investments of $585,000) (cost $114,753,672) $117,432,491
Receivables -
Fund shares sold 492,067
Dividends and interest 2,693,907
Other 14,918
--------------------
Total assets $120,633,383
--------------------
LIABILITIES:
Payables -
Fund shares repurchased $ 105,009
Dividends 185,716
Due to bank 90,487
Due to affiliates 151,919
Accrued expenses 44,658
--------------------
Total liabilities $ 577,789
--------------------
NET ASSETS:
Paid-in capital $121,328,031
Accumulated undistributed net investment income 16,973
Accumulated net realized loss on investments (3,968,229)
Net unrealized gain on investments 2,678,819
--------------------
Total net assets $120,055,594
--------------------
Net Asset Value Per Share:
(Unlimited number of shares authorized)
Class A (based on $100,471,981/10,983,945 shares) $ 9.15
--------------------
Class B (based on $18,709,280/2,053,288 shares) $ 9.11
--------------------
Class C (based on $874,333/95,985 shares) $ 9.11
--------------------
Maximum Offering Price:
Class A $ 9.58
--------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
Pioneer Bond Fund
STATEMENT OF OPERATIONS
For the Six Months Ended 12/31/96
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Interest $4,869,865
-------------
EXPENSES:
Management fees $300,285
Transfer agent fees
Class A 95,817
Class B 21,659
Class C 1,000
Distribution fees
Class A 112,440
Class B 86,524
Class C 2,952
Accounting 38,005
Custodian fees 15,098
Registration fees 28,635
Professional fees 30,590
Printing 1,940
Fees and expenses of nonaffiliated trustees 8,622
Miscellaneous 7,653
-----------
Total expenses $ 751,220
Less fees paid indirectly (10,655)
-------------
Net expenses $ 740,565
-------------
Net investment income $4,129,300
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (252,999)
Change in net unrealized gain on investments 1,103,276
-------------
Net gain on investments $ 850,277
-------------
Net increase in net assets resulting from operations $4,979,577
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
Pioneer Bond Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended 12/31/96 and the Year Ended 6/30/96
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
12/31/96 6/30/96
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 4,129,300 $ 7,957,548
Net realized loss on investments (252,999) (759,570)
Change in net unrealized gain on investments 1,103,276 (2,778,133)
--------------------------------
Net increase in net assets resulting from operations $ 4,979,577 $ 4,419,845
--------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.32 and $0.64 per share, respectively) $ (3,555,364) $ (7,298,352)
Class B ($0.26 and $0.57 per share, respectively) (489,702) (714,880)
Class C ($0.26 and $0.22 per share, respectively) (16,771) (4,649)
In excess of net investment income:
Class B ($0.00 and $0.01 per share, respectively) - (34,464)
Class C ($0.00 and $0.01 per share, respectively) - (189)
--------------------------------
Total distributions to shareholders $ (4,061,837) $ (8,052,534)
--------------------------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 16,697,845 $ 32,345,460
Reinvestment of distributions 2,942,856 5,865,063
Cost of shares repurchased (17,645,279) (34,931,359)
--------------------------------
Net increase in net assets resulting from
fund share transactions $ 1,995,422 $ 3,279,164
--------------------------------
Net increase (decrease) in net assets $ 2,913,162 $ (353,525)
NET ASSETS:
Beginning of period 117,142,432 117,495,957
--------------------------------
End of period (including accumulated undistributed/
(distributions in excess of) net investment income of
$16,973 and ($50,490), respectively) $120,055,594 $117,142,432
--------------------------------
</TABLE>
<TABLE>
<CAPTION>
12/96 Shares 12/96 Amount 6/96 Shares 6/96 Amount
<S> <C> <C> <C> <C>
Class A
Shares sold 1,072,909 $ 9,773,226 2,099,659 $ 19,598,057
Reinvestment of distributions 286,071 2,607,186 574,935 5,351,873
Less shares repurchased (1,604,807) (14,608,393) (3,229,151) (30,032,780)
----------------------------------------------- ----------------
Net decrease (245,827) $ (2,227,981) (554,557) $ (5,082,850)
----------------------------------------------- ----------------
Class B
Shares sold 699,417 $ 6,327,465 1,330,447 $ 12,402,112
Reinvestment of distributions 35,429 321,483 55,012 508,688
Less shares repurchased (326,575) (2,953,727) (528,935) (4,897,315)
----------------------------------------------- ----------------
Net increase 408,271 $ 3,695,221 856,524 $ 8,013,485
----------------------------------------------- ----------------
Class C*
Shares sold 65,630 $ 597,154 37,622 $ 345,291
Reinvestment of distributions 1,560 14,187 497 4,502
Less shares repurchased (9,183) (83,159) (141) (1,264)
----------------------------------------------- ----------------
Net increase 58,007 $ 528,182 37,978 $ 348,529
----------------------------------------------- ----------------
</TABLE>
*Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
Pioneer Bond Fund
FINANCIAL HIGHLIGHTS 12/31/96
<TABLE>
<CAPTION>
Six Months Year Ended Year Ended Year Ended Year Ended Year Ended
Ended 12/31/96 6/30/96 6/30/95 6/30/94 6/30/93 6/30/92
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of
period $ 9.08 $ 9.35 $ 9.04 $ 9.81 $ 9.37 $ 8.99
---------------- ------------ ------------ ------------ ------------ ------------
Increase (decrease) from investment
operations:
Net investment income $ 0.32 $ 0.64 $ 0.68 $ 0.67 $ 0.70 $ 0.74
Net realized and unrealized gain
(loss) on investments 0.07 (0.27) 0.31 (0.77) 0.44 0.39
---------------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) from
investment operations $ 0.39 $ 0.37 $ 0.99 $ (0.10) $ 1.14 $ 1.13
Distributions to shareholders:
Net investment income (0.32) (0.64) (0.68) (0.67) (0.70) (0.75)
---------------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net
asset value $ 0.07 $ (0.27) $ 0.31 $ (0.77) $ 0.44 $ 0.38
---------------- ------------ ------------ ------------ ------------ ------------
Net asset value, end of period $ 9.15 $ 9.08 $ 9.35 $ 9.04 $ 9.81 $ 9.37
---------------- ------------ ------------ ------------ ------------ ------------
Total return* 4.37% 4.02% 11.48% (1.26)% 12.67% 13.03%
Ratio of net expenses to average
net assets 1.13% **+ 1.19%+ 1.14% 1.05% 1.10% 1.09%
Ratio of net investment income to
average net assets 7.01% **+ 6.80%+ 7.55% 6.93% 7.37% 8.04%
Portfolio turnover rate 15% ** 39% 37% 39% 37% 17%
Net assets, end of period (in
thousands) $100,472 $101,957 $110,158 $106,659 $112,900 $102,503
Ratios assuming reduction for fees
paid indirectly:
Net expenses 1.11% ** 1.18% - - - -
Net investment income 7.03% ** 6.81% - - - -
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the investment
at net asset value at the end of each period and no sales charges. Total return
would be reduced if sales charges were taken into account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Pioneer Bond Fund
FINANCIAL HIGHLIGHTS 12/31/96
<TABLE>
<CAPTION>
Six Months Year Ended Year Ended 4/4/94 to
Ended 12/31/96 6/30/96 6/30/95 6/30/94
<S> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 9.02 $ 9.31 $ 9.02 $ 9.23
---------------- ------------ ------------ -----------
Increase (decrease) from investment
operations:
Net investment income $ 0.28 $ 0.57 $ 0.60 $ 0.14
Net realized and unrealized gain (loss) on
investments 0.07 (0.28) 0.31 (0.21)
---------------- ------------ ------------ -----------
Net increase (decrease) from investment
operations $ 0.35 $ 0.29 $ 0.91 $(0.07)
Distributions to shareholders:
Net investment income (0.26) (0.57) (0.62) (0.14)
In excess of net investment income - (0.01) - -
---------------- ------------ ------------ -----------
Net increase (decrease) in net asset value $ 0.09 $ (0.29) $ 0.29 $(0.21)
---------------- ------------ ------------ -----------
Net asset value, end of period $ 9.11 $ 9.02 $ 9.31 $ 9.02
---------------- ------------ ------------ -----------
Total return* 3.93% 3.15% 10.57% (0.73)%
Ratio of net expenses to average net assets 1.97% **+ 1.96%+ 1.97% 1.92% **
Ratio of net investment income to average net
assets 6.16% **+ 6.01%+ 6.60% 6.09% **
Portfolio turnover rate 15% ** 39% 37% 39%
Net assets, end of period (in thousands) $18,709 $14,843 $7,338 $1,212
Ratios assuming reduction for fees paid
indirectly:
Net expenses 1.96% ** 1.94% - -
Net investment income 6.17% ** 6.03% - -
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
Pioneer Bond Fund
FINANCIAL HIGHLIGHTS 12/31/96
<TABLE>
<CAPTION>
Six Months 1/31/96 to
Ended 12/31/96 6/30/96
<S> <C> <C>
CLASS C (a)
Net asset value, beginning of period $ 9.02 $ 9.54
---------------- ------------
Increase (decrease) from investment operations:
Net investment income $ 0.28 $ 0.23
Net realized and unrealized gain (loss) on investments 0.07 (0.52)
---------------- ------------
Net increase (decrease) from investment operations $ 0.35 $(0.29)
Distributions to shareholders:
Net investment income (0.26) (0.22)
In excess of net investment income - (0.01)
---------------- ------------
Net increase (decrease) in net asset value $ 0.09 $(0.52)
---------------- ------------
Net asset value, end of period $ 9.11 $ 9.02
---------------- ------------
Total return* 3.93% (3.00)%
Ratio of net expenses to average net assets 2.06%**+ 2.18%**+
Ratio of net investment income to average net assets 6.09%**+ 5.79%**+
Portfolio turnover rate 15%** 39%
Net assets, end of period (in thousands) $ 874 $ 343
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.04%** 2.13%**
Net investment income 6.11%** 5.84%**
</TABLE>
(a) Class C shares were first publicly offered on January 31, 1996.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
Pioneer Bond Fund
NOTES TO FINANCIAL STATEMENTS 12/31/96
1. Organization and Significant Accounting Policies
Pioneer Bond Fund (the Fund) is a Massachusetts business trust registered
under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the Fund is to
seek current income from a high quality portfolio, consistent with the
preservation of capital.
The Fund offers three classes of shares - Class A, Class B, and Class C
shares. Class C shares were first publicly offered on January 31, 1996. The
shares of Class A, Class B, and Class C each represent an interest in the
same portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distributions fees and have exclusive
voting rights with respect to the distribution plans that have been adopted
by Class A, Class B, and Class C shareholders, respectively.
The Fund's financial statements have been prepared in conformity with
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent
assets and liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates. The following is a summary
of significant accounting policies consistently followed by the Fund, which
are in conformity with those generally accepted in the investment company
industry:
A. Security Valuation
Security transactions are recorded on trade date. Securities are valued based
on valuations furnished by an independent pricing service that utilizes a
matrix system. These matrix systems reflect such factors as security prices,
yields, maturities, and ratings and are supplemented by dealer and exchange
quotations and fair market value information from other sources, as required.
Principal amounts of mortgage-backed securities are adjusted for monthly
paydowns. Premium and discount related to certain mortgage-backed securities
are amortized or accreted in proportion to the underlying monthly paydowns.
Interest income is recorded on the accrual basis. Temporary cash investments
are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities
20
<PAGE>
Pioneer Bond Fund
that have the highest cost and also qualify for long-term capital gain or
loss treatment for tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
C. Fund Shares
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations are absorbed by Pioneer Funds
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $15,010 in
underwriting commissions on the sale of fund shares during the six months
ended December 31, 1996. The Fund declares as daily dividends substantially
all of its net investment income. All dividends are paid on a monthly basis.
Short-term capital gain distributions, if any, may be declared with the daily
dividends. Distributions paid by the Fund, if any, with respect to each class
of shares are calculated in the same manner, at the same time, and in the
same amount, except that Class A, Class B, and Class C shares can bear
different transfer agent and distribution fees.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, and Class C shares of the Fund,
respectively. Shareholders of each class share all expenses and fees paid to
the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expenses (see Note 3).
Income, common expenses, and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning of
the day.
2. Management Agreement
Pioneering Management Corporation (PMC), the Fund's investment adviser,
manages the Fund's portfolio, and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 0.50% of the
Fund's average daily net assets.
21
<PAGE>
Pioneer Bond Fund
NOTES TO FINANCIAL STATEMENTS 12/31/96 (continued)
In addition, under the management agreement, certain other services and
costs, including accounting, regulatory reporting and insurance premiums, are
paid by the Fund. At December 31, 1996, $58,215 was payable to PMC related to
management fees and certain other services
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in
due to affiliates is $20,110 in transfer agent fees payable to PSC at
December 31, 1996.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A
Plan, Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the
Investment Company Act of 1940. Pursuant to Class A Plan, the fund pays PFD a
service fee of up to 0.25% of the Fund's average daily net assets in
reimbursement of its actual expenditures to finance activities primarily
intended to result in the sale of Class A shares. Pursuant to Class B Plan
and Class C Plan, the Fund pays PFD 1.00% of the average daily net assets
attributable to each class of shares. The fee consists of a 0.25% service fee
and a 0.75% distribution fee paid as compensation for personal services
and/or account maintenance services or distribution services with regard to
Class B and Class C shares. Included in due to affiliates is $73,594 in
distribution fees payable to PFD at December 31, 1996.
In addition, redemptions of each class of shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
redemptions of certain net asset value purchases of Class A shares within one
year of purchase. Class B shares that are redeemed within six years of
purchase are subject to a CDSC at declining rates beginning at 4.0%, based on
the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Proceeds from the CDSC are paid to PFD. For the six months ended December 31,
1996, CDSCs in the amount of $45,435 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the six months ended December 31,
1996, the Fund's expenses were reduced by $10,655 under such arrangements.
22
<PAGE>
Pioneer Bond Fund
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 December 31, 1996, and the
related statement of operations, the 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 December 31, 1996 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 December 31, 1996, 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
February 3, 1997
23
<PAGE>
Pioneer Bond Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees
John F. Cogan, Jr.
Richard H. Egdahl, M.D.
Margaret B.W. Graham
John W. Kendrick
Marguerite A. Piret
David D. Tripple
Stephen K. West
John Winthrop
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
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareholder Services and Transfer Agent
Pioneering Services Corporation
24
<PAGE>
This page for your notes.
25
<PAGE>
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
Your investment representative can give you additional information on
Pioneer's programs and services. If you want to order literature on any of
the following items directly, simply call Pioneer at 1-800-225-6292.
FactFoneSM
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund
share prices, yields, dividends and distributions, as well as information
about your own account. Simply call 1-800-225-4321. For specific account
information, have your 13-digit account number and four-digit personal
identification number at hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as
you meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a
long-term investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
26
<PAGE>
Automatic Exchange Program
A simple way to move money from a money market or bond fund into a stock fund
over a period of time. Just invest a lump sum in a Pioneer money market fund
or bond fund. Then, select the Pioneer equity fund or funds you wish to
invest in, and choose the amounts and dates for Pioneer to sell shares of
your money market or bond fund and use the proceeds to buy shares of the
Pioneer equity fund you have chosen. Over time, your original investment will
be shifted to your Pioneer equity fund.
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals.
You decide the frequency and the day of the month you want. Pioneer will send
the proceeds by check to the address you designate, or electronically to your
bank account. You also can authorize Pioneer to make the redemptions payable
to someone else. (SWPs are available only for accounts with a value of
$10,000 or more.)
27
<PAGE>
The Pioneer Family of Mutual Funds
Growth Funds
Global/International
Pioneer Emerging Markets Fund
Pioneer Europe Fund
Pioneer Gold Shares
Pioneer India Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
United States
Pioneer Capital Growth Fund
Pioneer Growth Shares
Pioneer Mid-Cap Fund
Pioneer Small Company Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
Income Funds Taxable
Pioneer America
Income Trust
Pioneer Bond Fund
Pioneer Short-Term Income Trust*
Tax-Exempt
Pioneer Intermediate Tax-Free Fund
Pioneer Tax-Free Income Fund
Money Market Fund
Pioneer Cash Reserves Fund
*Offers Class A and B Shares only
28
<PAGE>
This page for your notes.
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us
for assistance or information.
You can call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFoneSM for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Or write to us at:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer Logo]
Pioneer Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109
0297-3931
(c) Pioneer Funds Distributor, Inc.
[Recycled Logo]
Printed on Recycled Paper
