[PIONEER LOGO]
Pioneer Bond
Fund
ANNUAL REPORT 6/30/97
<PAGE>
T a b l e o f C o n t e n t s
- --------------------------------------------------------------------------------
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 14
Notes to Financial Statements 20
Report of Independent Public Accountants 24
Trustees, Officers and Service Providers 25
Programs and Services for Pioneer Shareowners 26
The Pioneer Family of Mutual Funds 29
<PAGE>
Pioneer Bond Fund
LETTER FROM THE CHAIRMAN 6/30/97
D e a r S h a r e o w n e r ,
- --------------------------------------------------------------------------------
It is with pleasure that I introduce this annual report for Pioneer Bond
Fund, covering the year ended June 30, 1997.
It was a year of uncertainty for bond investors, and emotions and perceptions
seemed to be the primary factors moving the bond market. Corrections in the
stock market and an economy that was alternately growing and retreating -
depending on how data were interpreted - kept bond investors on the lookout
for indications of a trend. We are happy to report that even in this
challenging environment, your Fund continued to reward shareowners by paying
steady dividends and providing a positive total return. The questions and
answers in the Portfolio Management Discussion offer details of the Fund's
strategy and progress over the past year.
Recently, the stock market has outperformed the bond market. We happen to be
in the midst of the longest bull stock market in history, and our concern is
that many investors, especially newer ones, see stocks moving only in an
upward direction, which will not always be the case. If the stock market
slows or retreats, people will be reminded how important it is to diversify
among a variety of investments. Bond funds can be an effective way to enhance
a portfolio's diversity, liquidity and provide current income. If you haven't
taken a look at your portfolio recently, perhaps this is a good time to speak
with your investment professional. Varying performance of your investments
can change the balance of your portfolio, and you may need to get back on
track.
If you have any questions about Pioneer Bond Fund, please contact your
investment representative, or Pioneer at 1-800-225-6292. Thank you for your
continued support.
Respectfully,
/s/ John F. Cogan, Jr.,
John F. Cogan, Jr.,
Chairman and President
1
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Pioneer Bond Fund
PORTFOLIO SUMMARY 6/30/97
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)
[DESCRIPTION OF PIE CHART]
Corporate 55%
U.S. Government and Agency 40%
Short-Term Cash Equivalents 3%
International 2%
P o r t f o l i o M a t u r i t y
- --------------------------------------------------------------------------------
(Effective life as a percentage of long-term holdings)
[DESCRIPTION OF PIE CHART]
0-2 Years 13%
2-5 Years 30%
5-7 Years 7%
7-10 Years 12%
10-20 Years 23%
20+ Years 15%
1 0 L a r g e s t H o l d i n g s
- --------------------------------------------------------------------------------
(As a percentage of long-term holdings)
1. U.S. Treasury Notes, 7.0%, 7/15/06 6.12%
2. Government National Mortgage Association II, 8.0%, 4/20/27 4.38
3. Government National Mortgage Association, 7.5%, 5/15/27 4.30
4. Government National Mortgage Association, 7.5%, 6/15/27 4.22
5. U.S. Treasury Notes, 8.5%, 2/14/00 3.58
6. U.S. Treasury Bonds, 8.0%, 11/15/21 3.36
7. U.S. Treasury Notes, 8.0%, 5/15/01 3.14
8. Ford Capital BV, 9.5%, 6/1/10 3.02
9. Delta Air Line Trust, 9.2%, 9/23/14 2.39
10. Imperial Oil, Ltd., 8.75%, 10/15/19 2.36
Fund holdings will vary for other periods.
2
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Pioneer Bond Fund
PERFORMANCE UPDATE 6/30/97 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
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/97 6/30/96
$9.07 $9.08
Distributions per Share Income Short-Term Long-Term
(6/30/96 - 6/30/97) Dividends Capital Gains Capital Gains
$0.633 - -
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.
Average Annual Total Returns
(As of June 30, 1997)
Period Net Asset Public Offering
Value Price*
10 Years 8.09% 7.60%
5 Years 6.68 5.70
1 Year 7.09 2.25
[DESCRIPTION OF MOUNTAIN CHART]
Pioneer Bond Fund* Lehman Brothers Government/
Corporate Bond Index
6/87 9550 10000
10239 10748
6/89 11382 12076
12091 12935
6/91 13316 14257
15051 16278
6/93 16958 18419
16744 18150
6/95 18668 20467
19417 21420
6/97 20794 23080
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
The Lehman Brothers Government/Corporate Bond Index is an unmanaged,
composite index of the U.S. bond market. It contains 5,353 issues, including
Treasury and government agency securities, investment-grade corporate bonds
and Yankee bonds. Index returns are calculated monthly, assume reinvestment
of dividends and, unlike Fund returns, do not reflect any fees, expenses or
sales charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
3
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Pioneer Bond Fund
PERFORMANCE UPDATE 6/30/97 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
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/97 6/30/96
$9.03 $9.02
Distributions per Share Income Short-Term Long-Term
(6/30/96 - 6/30/97) Dividends Capital Gains Capital Gains
$0.538 - -
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.
Average Annual Total Returns
(As of June 30, 1997)
Period If If
Held Redeemed*
Life-of-Fund 5.86% 5.06%
(4/4/94)
1 Year 6.24 2.24
[DESCRIPTION OF MOUNTAIN CHART]
Pioneer Bond Fund* Lehman Brothers Government/
Corporate Bond Index
4/94 10000 10000
6/94 9896 9959
9914 10009
12/94 9906 10046
10327 10546
6/95 10942 11230
11089 11445
12/95 11600 11978
11274 11698
6/96 11286 11753
11439 11961
12/96 11729 12326
11614 12220
6/97 11690 12664
* 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.
+ 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 are
calculated monthly, assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees, expenses or sales charges. You cannot
invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
4
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Pioneer Bond Fund
PERFORMANCE UPDATE 6/30/97 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
- --------------------------------------------------------------------------------
Net Asset Value
per Share 6/30/97 6/30/96
$9.02 $9.02
Distributions per Share Income Short-Term Long-Term
(6/30/96 - 6/30/97) Dividends Capital Gains Capital Gains
$0.538 - -
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.
Average Annual Total Returns
(As of June 30, 1997)
Period If If
Held Redeemed*
Life-of-Fund 2.06% 2.06%
(1/31/96)
1 Year 6.13 6.13
[DESCRIPTION OF MOUNTAIN CHART]
Pioneer Bond Fund* Lehman Brothers Government/
Corporate Bond Index
1/96 10000 10000
9766 9788
3/96 9679 9706
9612 9639
9620 9622
6/96 9700 9751
9714 9774
9687 9750
9/96 9831 9924
10029 10155
10207 10342
12/96 10081 10227
10066 10239
10087 10261
3/97 9971 10139
10088 10287
10174 10383
6/97 10294 10507
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
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 are calculated monthly, 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 6/30/97
Pioneer Bond Fund's nineteenth fiscal year came to a close on June 30, 1997. The
bond market was resilient over the past year, recovering from several episodes
of investor nervousness and regaining ground lost in the first half of 1996.
While the bond market's performance was mixed, Pioneer Bond Fund's results were
solid.
For this report, we offer a discussion with portfolio manager Sherman B.
Russ, who has overall responsibility for Pioneer's fixed-income department.
He has more than 20 years of experience and also heads up the investment team
responsible for the day-to-day management of Pioneer Bond Fund.
How did the Fund perform over the past year?
It had a pretty good year, considering the varied conditions in the bond
market. The Fund continued to meet its objective of providing current income
from a high-quality portfolio, and shareowners received steady dividends each
month. The Fund offered a 30-day SEC yield of 5.85% at the end of the period.
The Fund generated a 12-month total return of 7.09% for Class A Shares,
compared to a 7.69% average for the 123 funds in Lipper Analytical Services'
Corporate Debt A-Rated category. (Returns do not reflect sales charges.) The
Fund's slightly lower returns reflected its concentration in high-quality
securities. Unlike some funds in Lipper's "high-quality" category, your Fund
doesn't contain lower-quality high-yield bonds, which appreciated rapidly as
the stock market soared. At all times, at least 85% of the portfolio must be
invested in bonds rated A or better by major rating agencies. The average
quality rating of Fund holdings was AA on June 30, the same as it was
throughout the year.
What happened in the bond market in fiscal 1997?
Investor expectations shaped the market - almost more than actual events.
Concern about the pace of economic growth, inflation, changes in interest
rates and the volatility in the stock market kept many bond investors on
their toes. Throughout the year, however, inflation remained contained
despite continued economic expansion, and interest rates generally were low.
6
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Pioneer Bond Fund
Actual events included a sizable correction in the stock market in July 1996,
the result of economic reports pointing to "too much" growth. Bond prices
fell, as investors expected this growth would trigger an interest-rate hike
by the Federal Reserve. When the Fed took no action, the bond market rallied
from September until December, when investors in both markets reacted
unfavorably to Fed Chairman Alan Greenspan's comments about the stock
market's "irrational exuberance."
By February 1997, the bond market had recovered much of the ground lost in
late '96. The economy showed substantial growth in the first quarter of 1997,
and the Fed increased short-term interest rates one-quarter of a percentage
point (0.25%) on March 25. The rate hike didn't have a significant or lasting
effect. Because investors acted in advance of the Fed's much-discussed move,
bond prices had already moved down, sending yields higher. Bond prices
resumed their ascent in April, finishing higher yet in June. As the period
closed, the Fed was continuing its "wait and see" attitude.
Against this backdrop, what kind of changes did you make to the portfolio?
At the start of the period, we had the Fund positioned fairly conservatively,
watching for interest rates to rise. When they didn't, and the outlook
improved, we increased the Fund's position in long-term Treasury bonds from
25% to 34%, since they offered a way to participate in the bond market's
generally improving performance. Treasuries also can be traded quickly and
give us an efficient way to adjust the portfolio. We reduced Treasury
holdings over the first few months of 1997, then built them back up, ending
the fiscal year with a 39% position.
We adjusted the Fund's maturity profile as interest rates inched up and down.
Last June 30, portfolio holdings had an average effective life of 7.6 years,
which we increased to 9.2 years by the end of this June. (Effective maturity
takes into account the time left until a bond matures or can be called on
demand by the issuer, whichever is sooner.) Over the course of
7
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Pioneer Bond Fund
PORTFOLIO MANAGEMENT DISCUSSION (continued)
the year, we also reduced the Fund's concentration in securities with
maturities of five years or less, from 61% to 42%, while increasing the
allocation to bonds with longer maturities (7-20 years) from 14% to 35%,
favoring them for their stronger income stream. This longer maturity profile
represents our bullish stance, as we think interest rates will probably be
stable or falling in the near term.
The Fund can, and does, own investment-grade corporate bonds. They performed
well, although they did not post the same spectacular gains as high-yield
"junk" bonds. Here, the greatest concentration remains in the industrial
sector, but the Fund is diversified across other industries as well. We like
strong companies with good credit histories. Examples include TCI and Time
Warner in media, and Delta and American in airlines. By the end of the year,
we had reduced the Fund's position in corporate bonds from 53% to 48%. As
time passed, their prices had appreciated and their yields had grown closer
to those offered by U.S. government and agency securities, simultaneously
bringing gains and reducing our incentive to take on the additional risk
involved with corporate issues.
What's your outlook going forward?
We have a positive outlook for bonds, so we are increasing the portfolio's
maturity. The economy and markets seem to be moving forward with an "all news
is good news" attitude. There are indications that inflation is likely to
remain contained, with interest rates staying near their current range. This
would be good for almost all bond investors. Even so, an air of nervousness
remains about the stock market and, by extension, low-quality bonds. Should
investors begin to walk away from stocks, we would expect to see more demand
for high-quality securities like those in Pioneer Bond Fund's portfolio. We
believe our emphasis on high-quality, conservative investments can help us
continue to reward investors with solid returns.
8
<PAGE>
Pioneer Bond Fund
SCHEDULE OF INVESTMENTS 6/30/97
Principal
Amount Value
INVESTMENT IN SECURITIES - 97.2%
U.S. Government and Agency
Obligations - 39.4%
$ 57,068 Federal Home Loan Mortgage Corp.,
10.0%, 2002 $ 59,695
95,525 Federal Home Loan Mortgage Corp.,
10.5%, 2019 104,506
131,064 Federal Home Loan Mortgage Corp.,
REMIC Series 1988-24B, 9.5%, 2005 136,824
1,000,000 Federal National Mortgage
Association, 8.8%, 1997 1,002,290
1,500,000 Federal National Mortgage
Association, 9.2%, 2000 1,621,980
1,000,000 Federal National Mortgage
Association, 10.35%, 2015 1,335,150
53,946 Federal National Mortgage
Association, 10.0%, 2019 58,824
652,176 Federal National Mortgage
Association, 11.0%, 2019 733,874
2,280,467 Federal National Mortgage
Association, REMIC Series G94-6VB,
8.0%, 2003 2,356,452
1,076,735 Federal National Mortgage
Association, REMIC Series 1989-72D,
8.9%, 2019 1,122,797
516,670 Federal National Mortgage
Association, REMIC Series 1989-19A,
10.3%, 2019 561,780
7,752 Federal National Mortgage
Association, REMIC Series 1989-19B,
10.3%, 2019 8,469
87,545 Government National Mortgage
Association, Midget, 10.0%, 2004 92,586
70,921 Government National Mortgage
Association II, 9.5%, 2020 76,148
4,950,000 Government National Mortgage
Association II, 7.5%, 2027 4,971,978
263,091 Government National Mortgage
Association, 10.0%, 2006 280,213
323,776 Government National Mortgage
Association, 10.0%, 2018 356,154
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
Pioneer Bond Fund
SCHEDULE OF INVESTMENTS 6/30/97 (continued)
<TABLE>
<CAPTION>
S&P/Moody's
Principal Ratings
Amount (Unaudited) Value
<S> <C> <C> <C>
U.S. Government and Agency
Obligations - (continued)
$ 92,938 Government National Mortgage
Association, 9.5%, 2020 $ 100,600
335,150 Government National Mortgage
Association, 10.0%, 2020 368,349
5,034,565 Government National Mortgage
Association, 7.5%, 2027 5,056,918
5,034,824 Government National Mortgage
Association, 8.0%, 2027 5,149,518
900,778 Resolution Trust Corp., Series 1992-5A6,
9.238%, 2026 905,283
4,000,000 U.S. Treasury Notes, 8.5%, 2000 4,218,120
3,500,000 U.S. Treasury Notes, 8.0%, 2001 3,697,680
7,000,000 U.S. Treasury Notes, 7.0%, 2006 7,202,930
2,000,000 U.S. Treasury Notes, 8.75%, 2008 2,215,680
3,500,000 U.S. Treasury Notes, 8.0%, 2021 3,959,900
-----------
Total U.S. Government and Agency
Obligations (Cost $47,313,332) $47,754,698
-----------
Industrials - 31.7%
1,832,116 BBB-/A3 American Airlines, Inc., 9.71%, 2007 $ 2,044,129
1,000,000 A/A3 Arco Chemical Co., Deb., 9.8%, 2020 1,245,140
1,000,000 BBB/Baa1 Ashland Oil Co., 8.8%, 2012 1,112,860
500,000 A/A2 Atlantic Richfield Co., Deb., 9.875%,
2016 623,730
2,200,000 BBB+/Ba2 Continental Cablevision, 9.5%, 2013 2,507,362
2,500,000 BBB-/Baa1 Delta Airline Trust, 9.2%, 2014 2,817,175
2,000,000 BBB+/A3 Federal Express, 8.4%, 2010 2,162,040
2,000,000 A-/A3 General Motors Corp., Notes, 9.4%, 2021 2,395,920
1,000,000 BBB-/Baa2 Georgia-Pacific Corp., Deb., 9.5%, 2022 1,081,650
2,600,000 AA+/Aa2 Imperial Oil, Ltd., 8.75%, 2019 2,781,714
1,500,000 A-/A3 John Deere Capital, 8.625%, 2019 1,603,560
1,000,000 BBB/Ba1 Joy Technologies Co., Sr. Notes, 10.25%,
2003 1,088,760
1,500,000 BBB/Baa3 News America Holdings, 10.125%, 2012 1,699,725
1,000,000 AA/Aa3 Norfolk Southern Corp., Notes, 9.0%,
2021 1,153,070
1,000,000 A+/A1 J.C. Penney Company, Inc., Deb., 9.75%,
2021 1,105,560
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
Pioneer Bond Fund
<TABLE>
<CAPTION>
S&P/Moody's
Principal Ratings
Amount (Unaudited) Value
<S> <C> <C> <C>
Industrials - (continued)
$2,000,000 BBB/Baa1 Phillips Petroleum Co., Deb., 9.18%,
2021 $ 2,165,340
1,500,000 AA/Aa2 Procter & Gamble Co., Notes, 9.36%, 2021 1,803,990
1,000,000 BBB+/A3 SUPERVALU, Inc., Notes, 8.875%, 2022 1,068,600
1,250,000 BBB-/Ba1 Tele Communication, Deb., 10.125%, 2022 1,450,275
1,500,000 BBB-/Baa2 Tenneco, Inc., Notes, 10.075%, 2001 1,656,075
1,250,000 A+/A1 Texaco Capital Corp., Gtd. Deb., 9.75%,
2020 1,566,313
2,000,000 BBB-/Ba1 Time Warner, Inc., Deb., 9.15%, 2023 2,205,200
1,000,000 AA/Aa2 Wal-Mart Stores, Inc., Deb., 8.50%, 2024 1,064,740
------------
Total Industrials (Cost $37,341,250) $38,402,928
------------
Financial - 9.4%
3,000,000 A+/A1 Ford Capital BV, 9.5%, 2010 $ 3,555,510
1,500,000 AA/Aa2 GEICO Corp., Deb., 9.15%, 2021 1,649,265
2,000,000 AAA/Aaa Standard Credit Card Master Trust Series
1991-3A, 8.875%, 1998 2,056,720
2,000,000 AAA/Aaa Standard Credit Card Trust Series
1990-6A, 9.375%, 1997 2,002,600
1,000,000 A/A2 Transamerica Corp., 9.875%, 1998 1,019,980
1,000,000 A+/A3 W.R. Berkley, Deb., 8.7%, 2022 1,094,730
------------
Total Financial (Cost $11,345,458) $11,378,805
------------
Banks - 12.2%
1,000,000 A+/A1 Banc One Corp., Sub. Notes, 10.0%, 2010 $ 1,224,900
1,000,000 A/A3 BankAmerica, Sub. Notes, 9.375%, 2001 1,085,830
1,000,000 AA-/Aa3 Barclays North American Capital Corp.,
Gtd. Sub. Cap. Notes, 9.75%, 2021 1,119,440
1,000,000 A-/A2 Chase Manhattan, 8.5%, 2002 1,065,380
1,000,000 A-/A2 Chemical NY Corp., Sub. Notes, 9.75%,
1999 1,061,250
1,250,000 A-/A3 Comerica, Inc., Sub. Deb., 10.125%, 1998 1,296,012
1,550,000 A-/A2 CoreStates Capital Corp., Gtd. Sub.
Notes, 9.375%, 2003 1,727,134
1,500,000 A-/A2 First Chicago Corp., Sub. Notes, 10.25%,
2001 1,672,950
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Pioneer Bond Fund
SCHEDULE OF INVESTMENTS 6/30/97 (continued)
<TABLE>
<CAPTION>
S&P/Moody's
Principal Ratings
Amount (Unaudited) Value
<S> <C> <C> <C>
Banks - (continued)
$1,500,000 BBB+/A3 Fleet/Norstar Financial Group, Sub.
Notes, 9.9%, 2001 $ 1,658,835
1,000,000 A-/A3 Mellon Financial, Sub. Deb., 9.75%, 2001 1,100,770
1,000,000 AA-/Aa3 National Westminster Bancorp, Inc., Gtd.
Cap. Notes, 9.375%, 2003 1,124,220
500,000 AA-/A1 Republic New York Corp., Sub. Notes,
9.3%, 2021 594,540
------------
Total Banks (Cost $14,014,854) $ 14,731,261
------------
Utilities - 2.2%
500,000 AAA/Aaa Cooperative Utilities Trust, 10.125%,
2019 $ 541,620
1,000,000 A/A2 Virginia Electric Power, 8.75%, 2021 1,054,170
1,000,000 BBB+/Baa1 GTE Corp., Deb., 10.3%, 2017 1,065,430
------------
Total Utilities (Cost $2,634,160) $ 2,661,220
------------
Foreign - 2.3%
1,000,000 AAA/Aaa Inter-American Development Bank, Notes,
9.45%, 1998 $ 1,039,790
1,000,000 BBB+/A2 Province of Saskatchewan, 9.375%, 2020 1,212,440
500,000 AAA/Aaa Tokyo (Metropolis of), Gtd. Bonds,
10.375%, 1997 507,105
------------
Total Foreign (Cost $2,631,187) $ 2,759,335
------------
TOTAL INVESTMENT IN SECURITIES (Cost
$115,280,241) $117,688,247
------------
TEMPORARY CASH
INVESTMENT - 2.8%
Commercial Paper - 2.8%
3,362,000 Ford Motor Credit Co., 6.11%, 7/1/97 $ 3,362,000
------------
TOTAL TEMPORARY CASH INVESTMENT (Cost
$3,362,000) $ 3,362,000
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $118,642,241) (a)(b) $121,050,247
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
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Pioneer Bond Fund
(a) At June 30, 1997, the net unrealized gain on investments, based on cost
for federal income tax purposes of $118,646,069, was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $3,297,999
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (893,821)
-----------
Net unrealized gain $2,404,178
-----------
(b) At June 30, 1997, the Fund had a net capital loss carryforward of
$3,720,307 which will expire between 1998 and 2005 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 year ended June 30, 1997 were as follows:
Purchases Sales
------------------------------
Long-term U.S. Government $50,283,325 $30,497,450
Other Long-term Securities 17,234,730 23,496,165
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
Pioneer Bond Fund
BALANCE SHEET 6/30/97
ASSETS:
Investment in securities, at value (including temporary cash
investments of $3,362,000) (cost $118,642,241) $121,050,247
Receivables -
Fund shares sold 189,197
Interest 2,329,446
Other 11,662
------------
Total assets $123,580,552
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 187,966
Dividends 198,018
Due to affiliates 147,803
Accrued expenses 44,432
------------
Total liabilities $ 578,219
------------
NET ASSETS:
Paid-in capital $125,278,711
Accumulated net realized loss on investments (4,684,384)
Net unrealized gain on investments 2,408,006
------------
Total net assets $123,002,333
------------
N e t A s s e t V a l u e P e r S h a r e :
(Unlimited number of shares authorized)
Class A (based on $98,310,214/10,841,529 shares) $ 9.07
------------
Class B (based on $20,103,950/2,226,405 shares) $ 9.03
------------
Class C (based on $4,588,169/508,891 shares) $ 9.02
------------
M a x i m u m O f f e r i n g P r i c e :
Class A $ 9.50
------------
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
Pioneer Bond Fund
STATEMENT OF OPERATIONS
For the Year Ended 6/30/97
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Interest $9,677,707
----------
EXPENSES:
Management fee $596,770
Transfer agent fees
Class A 196,348
Class B 45,373
Class C 6,312
Distribution fees
Class A 218,481
Class B 181,192
Class C 17,949
Accounting 83,929
Custodian fees 29,480
Registration fees 48,185
Professional fees 43,682
Printing 24,200
Fees and expenses of nonaffiliated trustees 16,265
Miscellaneous 19,318
--------
Total expenses $1,527,484
Less fees paid indirectly (22,117)
----------
Net expenses $1,505,367
----------
Net investment income $8,172,340
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments $ (969,154)
Change in net unrealized gain on investments 832,463
----------
Net loss on investments $ (136,691)
----------
Net increase in net assets resulting from operations $8,035,649
----------
</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 Years Ended 6/30/97 and 6/30/96
<TABLE>
<CAPTION>
Year Ended Year Ended
6/30/97 6/30/96
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 8,172,340 $ 7,957,548
Net realized loss on investments (969,154) (759,570)
Change in net unrealized gain on investments 832,463 (2,778,133)
------------ ------------
Net increase in net assets resulting from operations $ 8,035,649 $ 4,419,845
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.63 and $0.64 per share, respectively) $ (6,943,232) $ (7,298,352)
Class B ($0.54 and $0.57 per share, respectively) (1,082,662) (714,880)
Class C ($0.54 and $0.22 per share, respectively) (108,347) (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 $ (8,134,241) $ (8,052,534)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 37,432,588 $ 32,345,460
Reinvestment of distributions 5,838,102 5,865,063
Cost of shares repurchased (37,312,197) (34,931,359)
------------ ------------
Net increase in net assets resulting from
fund share transactions $ 5,958,493 $ 3,279,164
------------ ------------
Net increase (decrease) in net assets $ 5,859,901 $ (353,525)
NET ASSETS:
Beginning of year 117,142,432 117,495,957
------------ ------------
End of year (including distributions in excess of net investment
income of $0 and $50,490, respectively) $123,002,333 $117,142,432
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
'97 Shares '97 Amount '96 Shares '96 Amount
<S> <C> <C> <C> <C>
Class A
Shares sold 2,220,001 $ 20,119,015 2,099,659 $ 19,598,057
Reinvestment of distributions 561,906 5,097,205 574,935 5,351,873
Less shares repurchased (3,170,150) (28,744,746) (3,229,151) (30,032,780)
---------- ------------ ---------- ------------
Net decrease (388,243) $ (3,528,526) (554,557) $ (5,082,850)
---------- ------------ ---------- ------------
Class B
Shares sold 1,277,126 $ 11,519,150 1,330,447 $ 12,402,112
Reinvestment of distributions 76,366 689,363 55,012 508,688
Less shares repurchased (772,104) (6,961,177) (528,935) (4,897,315)
---------- ------------ ---------- ------------
Net increase 581,388 $ 5,247,336 856,524 $ 8,013,485
---------- ------------ ---------- ------------
Class C*
Shares sold 643,707 $ 5,794,423 37,622 $ 345,291
Reinvestment of distributions 5,723 51,534 497 4,502
Less shares repurchased (178,517) (1,606,274) (141) (1,264)
---------- ------------ ---------- ------------
Net increase 470,913 $ 4,239,683 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 6/30/97
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended
6/30/97 6/30/96 6/30/95
<S> <C> <C> <C>
CLASS A
Net asset value, beginning of year $ 9.08 $ 9.35 $ 9.04
------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.63 $ 0.64 $ 0.68
Net realized and unrealized gain (loss) on investments (0.01) (0.27) 0.31
------- -------- --------
Net increase (decrease) from investment operations $ 0.62 $ 0.37 $ 0.99
Distributions to shareholders:
Net investment income (0.63) (0.64) (0.68)
------- -------- --------
Net increase (decrease) in net asset value $ (0.01) $ (0.27) $ 0.31
------- -------- --------
Net asset value, end of year $ 9.07 $ 9.08 $ 9.35
------- -------- --------
Total return* 7.09% 4.02% 11.48%
Ratio of net expenses to average net assets 1.14%+ 1.19%+ 1.14%
Ratio of net investment income to average net assets 6.97%+ 6.80%+ 7.55%
Portfolio turnover rate 48% 39% 37%
Net assets, end of year (in thousands) $98,310 $101,957 $110,158
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.12% 1.18% -
Net investment income 6.99% 6.81% -
</TABLE>
<TABLE>
<CAPTION>
Year Ended Year Ended
6/30/94 6/30/93
<S> <C> <C>
CLASS A
Net asset value, beginning of year $ 9.81 $ 9.37
-------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.67 $ 0.70
Net realized and unrealized gain (loss) on investments (0.77) 0.44
-------- --------
Net increase (decrease) from investment operations $ (0.10) $ 1.14
Distributions to shareholders:
Net investment income (0.67) (0.70)
-------- --------
Net increase (decrease) in net asset value $ (0.77) $ 0.44
-------- --------
Net asset value, end of year $ 9.04 $ 9.81
-------- --------
Total return* (1.26)% 12.67%
Ratio of net expenses to average net assets 1.05% 1.10%
Ratio of net investment income to average net assets 6.93% 7.37%
Portfolio turnover rate 39% 37%
Net assets, end of year (in thousands) $106,659 $112,900
Ratios assuming reduction for fees paid indirectly:
Net expenses - -
Net investment income - -
</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.
+ 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 6/30/97
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended 4/4/94 to
6/30/97 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 $ 0.56 $ 0.57 $ 0.60 $ 0.14
Net realized and unrealized gain (loss) on investments (0.01) (0.28) 0.31 (0.21)
------- ------- ------ ------
Net increase (decrease) from investment operations $ 0.55 $ 0.29 $ 0.91 $(0.07)
Distributions to shareholders:
Net investment income (0.54) (0.57) (0.62) (0.14)
In excess of net investment income - (0.01) - -
------- ------- ------ ------
Net increase (decrease) in net asset value $ 0.01 $ (0.29) $ 0.29 $(0.21)
------- ------- ------ ------
Net asset value, end of period $ 9.03 $ 9.02 $ 9.31 $ 9.02
------- ------- ------ ------
Total return* 6.24% 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 6.12%+ 6.01%+ 6.60% 6.09%**
Portfolio turnover rate 48% 39% 37% 39%
Net assets, end of period (in thousands) $20,104 $14,843 $7,338 $1,212
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.96% 1.94% - -
Net investment income 6.13% 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 6/30/97
<TABLE>
<CAPTION>
Year Ended 1/31/96 to
6/30/97 6/30/96
<S> <C> <C>
CLASS C
Net asset value, beginning of period $ 9.02 $ 9.54
------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.54 $ 0.23
Net realized and unrealized gain (loss) on investments - (0.52)
------ ------
Net increase (decrease) from investment operations $ 0.54 $(0.29)
Distributions to shareholders:
Net investment income (0.54) (0.22)
In excess of net investment income - (0.01)
------ ------
Net decrease in net asset value $ - $(0.52)
------ ------
Net asset value, end of period $ 9.02 $ 9.02
------ ------
Total return* 6.13% (3.00)%
Ratio of net expenses to average net assets 2.05%+ 2.18%**+
Ratio of net investment income to average net assets 5.83%+ 5.79%**+
Portfolio turnover rate 48% 39%
Net assets, end of period (in thousands) $4,588 $ 343
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.92% 2.13%**
Net investment income 5.96% 5.84%**
</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.
19
<PAGE>
Pioneer Bond Fund
NOTES TO FINANCIAL STATEMENTS 6/30/97
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 consistent with preservation of capital.
The Fund offers three classes of shares - Class A, Class B and Class C
shares. The shares of Class A, Class B, and Class C 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 independent pricing services that utilize
matrix systems. 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.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in-capital, depending on the type of book/tax differences that may
exist.
The Fund has reclassified $12,391 from paid-in-capital to distributions in
excess of net investment income. The reclassification has no impact on the
net asset value of the Fund and is designed to present the Fund's capital
accounts on a tax basis.
C. Fund Shares
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations are absorbed by Pioneer Funds
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $32,537
in underwriting commissions on the sale of fund shares during the year
ended June 30, 1997.
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.
21
<PAGE>
Pioneer Bond Fund
NOTES TO FINANCIAL STATEMENTS 6/30/97 (continued)
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 to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, and Class C shares can bear different transfer
agent and distribution fees.NOTES TO FINANCIAL STATEMENTS 6/30/97 (continued)
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.
In addition, under the management agreement, certain other services and
costs, including accounting, regulatory reporting, and insurance premiums,
are paid by the Fund. At June 30, 1997, included in due to affiliates is
$55,932 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 $24,311 in transfer agent fees payable to PSC at June
30, 1997.
4. Distribution Plan
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 $67,560 in
distribution fees payable to PFD at June 30, 1997.
22
<PAGE>
Pioneer Bond Fund
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 year ended June 30, 1997,
CDSCs in the amount of $77,355 were paid to PFD.
5. Expense Reductions
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the year ended June 30, 1997, the
Fund's expenses were reduced by $22,117 under such arrangements.
23
<PAGE>
Pioneer Bond Fund
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
T o t h e S h a r e h o l d e r s a n d t h e B o a r d o f
T r u s t e e s o f P i o n e e r B o n d F u n d :
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Bond Fund as of June 30, 1997, and the related
statement of operations, statements of changes in net assets, and financial
highlights for the periods presented. These financial statements and the
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of June 30, 1997 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Bond Fund as of June 30, 1997, the results of its operations, the
changes in its net assets and the financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
August 1, 1997
24
<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
Shareowner Services and Transfer Agent
Pioneering Services Corporation
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.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund
share prices, yields, dividends and distributions, as well as information
about your own account. Simply call 1-800-225-4321. For specific account
information, have your 13-digit account number and four-digit personal
identification number at hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as
you meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a
long-term investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
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>
This page for your notes.
28
<PAGE>
THE PIONEER FAMILY OF MUTUAL FUNDS
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
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 Micro-Cap Fund*
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
29
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us
for assistance or information.
You can call us:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[PIONEER LOGO] Pioneer Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109
0897-4361
(c) Pioneer Funds Distributor, Inc.
[Recycle logo] Printed on Recycled Paper
