<PAGE>
[PIONEER LOGO]
Pioneer Bond
Fund
---------------------
ANNUAL REPORT 6/30/00
---------------------
<PAGE>
Table of Contents
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 17
Notes to Financial Statements 23
Report of Independent Public Accountants 27
Trustees, Officers and Service Providers 28
Pioneer Family of Mutual Funds 29
</TABLE>
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
LETTER FROM THE CHAIRMAN 6/30/00
--------------------------------------------------------------------------------
Dear Shareowner,
--------------------------------------------------------------------------------
For over a year, the Federal Reserve has been trying to suppress inflationary
pressures and restrain economic growth in the U.S. by raising short-term
interest rates. Because they represent increased costs, higher interest rates
cut into corporate profits.
With the possibility of a slowing economy and an uncertain profit outlook
overhanging the stock market, investors shifted from sector to sector in the
first half of 2000 looking for attractive opportunities. Heightened stock market
volatility was the result. Bonds also lost luster, because existing,
lower-paying issues could not compete with the higher rates that now prevail. By
summer, we began to see evidence that the Fed's tactics were having some impact,
as key statistics hinted at a contraction of the economy's growth rate.
Volatile markets should not sidetrack your plans for dealing with your essential
financial goals. Whatever your long-range needs may be - money for a child's
education, funding a comfortable retirement, or some other cherished objective -
those needs remain in place no matter what the market may do this week or next
month. For that reason, it makes sense to focus your investment strategy beyond
interim ups and downs.
Mid-year is a good time to talk to your financial representative to review what
has been happening and to make sure your strategy is intact. Part of that
discussion should be devoted to your portfolio's diversification. Do you have a
blend of stocks and bonds that you are comfortable with and that can help you
meet your goals? Or is it time to make adjustments? Be sure to include your IRAs
and other retirement vehicles when you evaluate your overall portfolio.
I hope you will take time to read the following discussion with Kenneth J.
Taubes, co-head of Pioneer's fixed-income team. It's an excellent way to
understand Pioneer Bond Fund's performance during the last year and to learn
about expectations for the months ahead. If you have questions or would like
more information about your fund, visit our web site at www.pioneerfunds.com.
Respectfully,
/s/ John F. Cogan, Jr.
----------------------
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
PORTFOLIO SUMMARY 6/30/00
--------------------------------------------------------------------------------
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[PIE CHART PLOT POINTS]
<TABLE>
<S> <C>
U.S. Government and Agency 29.1%
AAA 2.3%
AA 9.3%
A 24.0%
BBB 17.6%
BB 7.5%
B and lower 10.0%
Other 0.2%
</TABLE>
[END PLOT POINTS]
Portfolio Maturity
--------------------------------------------------------------------------------
(Effective life as a percentage of total investment portfolio)
[PIE CHART PLOT POINTS]
<TABLE>
<S> <C>
0-1 Years 0.3%
1-3 Years 14.1%
3-4 Years 15.7%
4-6 Years 39.9%
6-8 Years 16.4%
8+ Years 13.6%
</TABLE>
[END PLOT POINTS]
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of debt holdings)
<TABLE>
<S> <C>
1. Government National Mortgage Association, 7.0%, 1/15/30 3.91%
2. U.S. Treasury Bonds, 8.0%, 11/15/21 2.53
3. U.S. Treasury Bonds, 7.5%, 11/15/16 2.36
4. Government National Mortgage Association, 7.5%, 2/15/30 2.35
5. Ford Capital BV, 9.5%, 6/1/10 2.33
6. Government National Mortgage Association, 7.0%, 8/15/29 2.29
7. Government National Mortgage Association, 8.0%, 11/15/29 2.06
8. Government National Mortgage Association, 7.0%, 7/15/29 1.82
9. American General Finance Corp., 8.125%, 8/15/09 1.76
10. Government National Mortgage Association I, 8.0%, 5/15/30 1.68
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/00 CLASS A SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 6/30/00 6/30/99
<S> <C> <C>
$8.47 $8.94
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(6/30/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.577 - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
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, 2000)
<TABLE>
<CAPTION>
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
10 Years 6.87% 6.38%
5 Years 4.70 3.75
1 Year 1.30 -3.25
</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.
[BAR CHART PLOT POINTS]
Growth of $10,000
<TABLE>
<CAPTION>
Lehman Brothers
Pioneer Government/Corporate
Bond Fund* Bond Index
<S> <C> <C>
6/90 9550 10000
6/91 10518 11020
11888 12580
13394 14235
6/94 13226 14028
14745 15820
15337 16555
6/97 16424 17836
18073 19849
17317 20386
6/00 18555 21263
</TABLE>
[END PLOT POINTS]
The Lehman Brothers Government/Corporate Bond Index is an unmanaged, composite
index of the U.S. bond market. It contains over 5,000 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
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/00 CLASS B SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 6/30/00 6/30/99
<S> <C> <C>
$8.44 $8.91
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(6/30/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.507 - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
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, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 4.64% 4.64%
(4/4/94)
5 Years 3.88 3.72
1 Year 0.48 -3.31
</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.
[BAR CHART PLOT POINTS]
Growth of $10,000+
<TABLE>
<CAPTION>
Lehman Brothers
Pioneer Government/Corporate
Bond Fund* Bond Index
<S> <C> <C>
4/94 10000 10000
6/94 9896 9958
9906 10044
10942 11229
11600 11977
6/96 11286 11752
11729 12325
11990 12663
12713 13527
6/98 13095 14091
13579 14809
13170 14471
13056 14491
6/00 13233 15096
</TABLE>
[END PLOT POINTS]
+ 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 over 5,000 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
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/00 CLASS C SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net Asset Value
per Share 6/30/00 6/30/99
<S> <C> <C>
$8.46 $8.89
<CAPTION>
Distributions per Share Income Short-Term Long-Term
(6/30/99 - 6/30/00) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
$0.457 - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
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, 2000)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 2.89% 2.87%
(1/31/96)
1 Year 0.36 0.36
</TABLE>
* Assumes reinvestment of distributions. A 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
[BAR CHART PLOT POINTS]
Growth of $10,000
<TABLE>
<CAPTION>
Lehman Brothers
Pioneer Government/Corporate
Bond Fund* Bond Index
<S> <C> <C>
1/96 10000 10000
9679 9706
9700 9750
9831 9922
10081 10225
9971 10137
6/97 10294 10505
10607 10873
10904 11222
11024 11393
11233 11691
11700 12269
12/98 11653 12286
11515 12139
11300 12007
11277 12071
11179 12022
11246 12345
6/00 11341 12523
</TABLE>
[END PLOT POINTS]
The Lehman Brothers Government/Corporate Bond Index is an unmanaged, composite
index of the U.S. bond market. It contains over 5,000 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.
5
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
--------------------------------------------------------------------------------
Extraordinarily strong economic growth and the U.S. Federal Reserve Board's
efforts to restrain this growth and limit inflation dominated the fixed income
market in the United States during the 12 months ended June 30, 2000. In the
following discussion, Kenneth J. Taubes details the factors that influenced your
Fund's performance during the fiscal year. Mr. Taubes, co-head of Pioneer's
fixed income group, oversees the team responsible for the daily management of
Pioneer Bond Fund.
Q: Pioneer Bond Fund achieved positive returns during a period of rising
interest rates and falling prices for most types of fixed income
investments. What factors most affected performance?
A: The Fund's holdings in long-term Treasury bonds and other types of high-
quality long-term investments helped performance. However, corporate bonds
in general, especially high yield bonds, lagged Treasuries in performance
and detracted from Fund returns. Overall, the Fund's competitive yield
overcame price losses to result in positive total returns. On June 30,
2000, the Fund's 30-day SEC yield on Class A shares was 6.83%, an increase
from the 6.57% yield on December 31, 1999 and substantially higher than the
5.63% yield a year earlier. For the 12-month period, Class A shares
returned 1.30%, Class B shares returned 0.48% and Class C shares had a
total return of 0.36%, all at net asset value. In comparison, the average
return for the same period of the 173 funds in Lipper, Inc.'s Corporate
Debt A-rated category was 2.78%. (Lipper is an independent company that
tracks mutual fund performance.)
Q: Especially in the final six months of the period, U.S. Treasuries seemed to
gain in price even as most corporate securities lost value. What
contributed to this environment?
A: The main factors were the strong economy and the reactions to this
strength. We had high rates of Gross Domestic Product (GDP) growth and
falling unemployment rates. The Federal Reserve Board became increasingly
concerned that the growth rates were unsustainable and could drive up the
costs of resources, increasing inflationary pressures. Starting in June
1999, the Fed raised short-term interest rates six different times, by a
total of 1.75%. However, during the final six months of the fiscal
6
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
period, the strong economy resulted in a rising revenue flow to the federal
government, which was able to reduce debt by buying back higher-coupon,
long-term Treasury bonds. This resulted in rising prices and declining
interest rates for both intermediate- and long-term Treasury obligations.
As a consequence, the yields on longer-term Treasury obligations actually
fell below those of shorter-term government notes. Investors in fixed
income securities call this an inversion of the yield curve. Under most
conditions the yield curve is characterized by higher yields for
longer-maturity securities. While long-term Treasuries rallied, corporate
bonds presented a much different situation. Lower credit quality securities
in general underperformed Treasuries as investors feared that economic
growth would eventually slow and undermine the financial health of
companies issuing bonds. Corporate securities, especially high-yielding,
lower quality bonds, fell in price and their yields rose. The difference -
or spread - between the yields of corporate securities and government
securities grew wider and corporate bonds underperformed government bonds
of comparable maturities. While investment grade corporate securities also
underperformed Treasuries, they still performed better than higher
yielding, lower quality bonds. Mortgage securities did better than
investment grade corporate bonds, although not as well as Treasuries.
Q: Did you make any changes in strategy during this period?
A: As the end of the fiscal year approached, the spread widening - or growing
difference in yields between Treasuries and non-Treasuries - resulted in
extremely attractive yields in the corporate sector, especially the high
yield sector. Believing that high yield securities offered very good value
after two years of underperformance, we increased our allocation to this
sector close to our mandated maximum of 20% of total assets. We did this by
redeploying assets, principally from mortgage securities that had been
performing well for the Fund. We invested where we saw the greatest
relative value at current prices. For the same reason, we also invested in
more intermediate-term securities, which had been underperforming. This
resulted in a lower average maturity and lower duration for the Fund, which
we thought made sense in a period following a rally in long-term
Treasuries.
7
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00 (continued)
--------------------------------------------------------------------------------
Q: What is your outlook?
A: During the closing months of the last fiscal year, we saw some signs that
economic growth was beginning to cool down in the United States. Growth in
consumer spending was lower, and the manufacturing sector was beginning to
slow. Investors in the bond market are beginning to think that the Fed
Board may be approaching the end of its series of interest-rate hikes,
although some further rate increases certainly are possible. While we don't
think the economy will slow dramatically, we do think growth will become
more moderate, providing a better opportunity for a decline in interest
rates later in the current fiscal year.
8
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P's/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
CONVERTIBLE CORPORATE BONDS - 1.0%
$ 800,000 B+/B1 Mascotech, Inc., 4.5%, 12/15/03 $ 604,000
1,007,000 BB-/B2 Pogo Producing Co., 5.5%, 6/15/06 840,261
----------
Total Convertible Corporate Bonds $1,444,261
----------
(Cost $1,468,178)
COLLATERALIZED MORTGAGE OBLIGATIONS - 1.2%
847,697 AAA/Aaa Prudential Securities Secured Financing
Co., Series 1999-NRF1 A1, 6.074%,
1/15/08 $ 803,325
1,000,000 AAA/Aaa Prudential Securities Secured Financing
Co., Series 1999-NRF1 A1, 6.48%,
1/15/09 934,375
8,164 AAA/Aaa Resolution Trust Corp., Series 1992-5A6,
9.24%, 5/25/26 8,123
----------
Total Collateralized Mortgage Obligations $1,745,823
----------
(Cost $1,875,231)
CORPORATE BONDS - 66.4%
Basic Materials - 4.1%
Chemicals (Diversified) - 0.7%
1,000,000 B+/B2 Huntsman ICI Chemicals, 10.125%,
7/1/09 $1,005,000
----------
Chemicals (Specialty) - 0.6%
1,000,000 BB/Ba2 Arco Chemical Co., 9.8%, 2/1/20 $ 910,000
----------
Iron & Steel - 2.0%
1,000,000 AA-/A1 Nucor Corp., 6.0%, 1/1/09 (144A) $ 880,880
2,000,000 BBB-/Baa2 USX Corp., 8.125%, 7/15/23 1,988,900
----------
$2,869,780
----------
Metals Mining - 0.1%
1,000,000 CC/Ca AEI Resources, Inc., 11.5%, 12/15/06
(144A) $ 100,000
----------
Paper & Forest Products - 0.7%
1,000,000 A-/A3 Mead Corp., 8.125%, 2/1/23 $ 957,850
----------
Total Basic Materials $5,842,630
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P's/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
Capital Goods - 1.4%
Engineering & Construction - 0.6%
$ 895,000 B+/B2 Metromedia Fiber Network Inc., 10.0%,
11/15/08 $ 886,050
----------
Waste Management - 0.8%
1,000,000 B+/B2 Azurix Corp., 10.375%, 2/15/07 (144A) $ 965,000
300,000 BB-/Ba3 Browning-Ferris Industries, Inc., 6.375%,
1/15/08 234,000
----------
$1,199,000
----------
Total Capital Goods $2,085,050
----------
Communication Services - 2.0%
Cellular/Wireless Telecommunications - 1.3%
1,000,000 B/B3 Crown Castle International Corp., 9.0%,
5/15/11 $ 920,000
1,000,000 B/B2 NEXTLINK Communications, Inc., 10.75%,
6/1/09 987,500
----------
$1,907,500
----------
Telecommunications (Long Distance) - 0.7%
1,000,000 AA-/A1 AT&T Corp., 8.125%, 1/15/22 $ 968,120
----------
Total Communication Services $2,875,620
----------
Consumer Cyclicals - 6.6%
Automobiles - 1.6%
2,000,000 A/A2 General Motors Corp., 9.4%, 7/15/21 $2,276,280
----------
Building Materials - 1.0%
750,000 B/B2 NCI Building Systems, Inc., 9.25%, 5/1/09 $ 705,000
750,000 B+/B1 Nortek Inc., 9.125%, 9/1/07 695,625
----------
$1,400,625
----------
Hardware & Tools - 0.3%
500,000 B+/B1 Scott's Corp., 8.625%, 1/15/09 (144A) $ 475,000
----------
Homebuilding - 0.2%
370,000 BB+/Ba2 Toll Corp, 8.125%, 2/1/09 $ 333,000
----------
Publishing (Newspapers) - 1.1%
1,500,000 BBB-/Baa3 News America Holdings, Inc., 10.125%,
10/15/12 $1,615,350
----------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P's/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
Retail - 1.5%
$1,000,000 AA/Aa2 Wal-Mart Stores, Inc., 8.62%, 1/1/10 $ 1,056,680
1,000,000 AA/Aa2 Wal-Mart Stores, Inc., 8.5%, 9/15/24 1,045,390
-----------
$ 2,102,070
-----------
Services (Commerical & Consumer) - 0.2%
1,100,000 BBB/Baa3 Laidlaw Inc., 7.65%, 5/15/06 $ 275,000
-----------
Textiles (Apparel) - 0.7%
1,000,000 BBB-/Baa2 Jones Apparel Group, Inc., 7.875%,
6/15/06 $ 973,000
-----------
Total Consumer Cyclicals $ 9,450,325
-----------
Consumer Staples - 10.1%
Broadcasting (Television/Radio/Cable) - 5.7%
1,000,000 BBB-/Baa2 British Sky Broadcasting Corp., 8.2%,
7/15/09 $ 940,870
1,000,000 B+/B2 Charter Communications Holdings LLC,
8.25%, 4/1/07 885,000
2,200,000 BBB/Baa3 Continental Cablevision, Inc., 9.5%, 8/1/13 2,399,738
1,500,000 BBB+/Baa1 Cox Enterprises, 7.375%, 6/15/09
(144A) 1,406,610
1,040,000 B/B2 Echostar DBS Corp., 9.25%, 2/1/06 1,008,800
1,250,000 AA-/Ba1 Tele-Communications, Inc., 10.125%,
4/15/22 1,506,950
-----------
$ 8,147,968
-----------
Distributors (Food & Health) - 1.7%
500,000 B-/B3 Fisher Scientific International Inc., 9.0%,
2/1/08 $ 463,750
1,000,000 BBB+/Baa1 SUPERVALU Inc., 8.875%, 11/15/22 992,750
1,000,000 B/B2 Wesco Distribution Inc., 9.125%, 6/1/08 915,000
-----------
$ 2,371,500
-----------
Entertainment - 2.2%
1,000,000 B-/B3 Premier Parks, Inc., 9.75%, 6/15/07 $ 965,000
2,000,000 BBB/Baa3 Time Warner Inc., 9.15%, 2/1/23 2,187,460
-----------
$ 3,152,460
-----------
Household Products (Non-Durables) - 0.5%
750,000 B2/B Playtex Family Products, Inc., 9.0%,
12/15/03 $ 727,500
-----------
Total Consumer Staples $14,399,428
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P's/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
Energy - 9.3%
Oil (Domestic Integrated) - 1.5%
$2,000,000 A-/A3 Phillips Petroleum Co., 9.18%, 9/15/21 $ 2,066,400
-----------
Oil (International Integrated) - 2.0%
1,580,000 AA+/Aa2 Imperial Oil Ltd., 8.75%, 10/15/19 $ 1,633,293
1,200,000 A+/A1 Texaco Capital Corp., 8.25%, 10/1/06 1,249,848
-----------
$ 2,883,141
-----------
Oil & Gas (Drilling & Equipment) - 2.3%
1,500,000 A-/A3 Nabors Industries Inc., 6.8%, 4/15/04 $ 1,450,575
750,000 B+/B1 Parker Drilling Co., 9.75%, 11/15/06 723,750
1,000,000 BB-/Ba3 RBF Finance Co., 11.0%, 3/15/06 1,075,000
-----------
$ 3,249,325
-----------
Oil & Gas (Production/Exploration) - 2.8%
1,000,000 BB/Ba2 EOTT Energy Partners L.P., 11.0%, 10/1/09 $ 1,010,000
2,000,000 BB-/Ba2 Gulf Canada Resources Ltd., 9.625%,
7/1/05 2,044,680
975,000 BB+/Ba1 Santa Fe Snyder Corp., 8.05%, 6/15/04 965,182
-----------
$ 4,019,862
-----------
Oil & Gas (Refining & Marketing) - 0.7%
1,000,000 BBB/Baa2 Ashland Oil Co., 8.8%, 11/15/12 $ 1,029,670
-----------
Total Energy $13,248,398
-----------
Financial - 18.4%
Banks (Major Regional) - 3.6%
1,000,000 AA-/Aa3 Barclays North America Capital Corp.,
9.75%, 5/15/21 $ 1,067,930
1,550,000 A-/A2 Corestates Capital Corp., 9.375%,
4/15/03 1,605,258
2,000,000 A+/A2 Mellon Bank NA, 7.375%, 5/15/07 1,952,440
500,000 A/A1 Republic New York Corp., 9.3%, 6/1/21 544,505
-----------
$ 5,170,133
-----------
Banks (Money Center) - 0.7%
1,000,000 AA-/Aa3 National Westminster Bancorp, Inc.,
9.375%, 11/15/03 $ 1,062,490
-----------
Banks (Regional) - 1.4%
2,000,000 A+/A1 Bank of Montreal, 7.8%, 4/1/07 $ 2,009,260
-----------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P's/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
Consumer Finance - 3.0%
$1,000,000 BB+/Baa3 Capital One Financial Corp., 7.125%,
8/1/08 $ 901,000
3,000,000 A+/A1 Ford Capital BV, 9.5%, 6/1/10 3,336,660
-----------
$ 4,237,660
-----------
Financial (Diversified) - 6.8%
2,500,000 A+/A2 American General Finance Corp., 8.125%,
8/15/09 $ 2,513,675
1,100,000 A+/A1 Associates Corp., 8.15%, 8/1/09 1,105,005
1,000,000 BBB+/Baa1 AvalonBay Communities Inc., 6.8%,
7/15/06 933,510
1,000,000 BBB-/Baa3 Colonial Realty L.P., 1.0%, 7/14/07 898,610
1,500,000 A/A3 Deere (John) Capital Corp., 8.625%,
8/1/19 1,469,400
1,500,000 A-/A3 Hertz Corp., 6.25%, 3/15/09 1,352,625
1,500,000 BBB/Baa3 Mack-Cali Realty, 7.25%, 3/15/9 1,360,755
-----------
$ 9,633,580
-----------
Insurance (Property/Casualty) - 2.9%
1,500,000 AAA/Aa1 GEICO Corp., 9.15%, 9/15/21 $ 1,584,360
1,535,000 AA/Aa2 National Re Corp., 8.85%, 1/15/59 1,598,979
1,000,000 BBB+/Baa1 W.R. Berkley, 8.7%, 1/1/22 938,600
-----------
$ 4,121,939
-----------
Total Financial $26,235,062
-----------
Healthcare - 3.9%
Healthcare (Diversified) - 0.9%
1,175,000 B/B3 King Pharmaceutical Inc., 10.75%,
2/15/09 $ 1,216,125
-----------
Healthcare (Hospital Management) - 0.8%
375,000 BB+/Ba2 Columbia/HCA Healthcare Corp., 7.25%,
5/20/08 $ 334,478
1,000,000 BB-/Ba3 Tenet Healthcare Corp., 8.125%, 12/1/08 920,000
-----------
$ 1,254,478
-----------
Healthcare (Medical Products/Supplies) - 2.2%
1,070,000 BB+/Ba1 Beckman Instruments, Inc., 7.05%, 6/1/26 $ 1,002,579
750,000 NR/NR Bio-Rad Labs Inc., 11.625%, 2/15/07 772,500
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P's/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
Healthcare (Medical Products/Supplies) - (continued)
$1,500,000 A-/Baa1 Guidant Corp., 6.15%, 2/15/06 $ 1,392,150
-----------
$ 3,167,229
-----------
Total Healthcare $ 5,637,832
-----------
Technology - 0.6%
Computers (Hardware) - 0.6%
900,000 BBB+/Baa1 Sun Microsystems Inc., 7.65%, 8/15/09 $ 891,954
-----------
Total Technology $ 891,954
-----------
Transportation - 5.9%
Airfreight - 1.5%
2,000,000 BBB+/A3 Federal Express Corp., 8.4%, 3/23/10 $ 2,067,180
-----------
Airlines - 3.7%
1,481,649 BBB/A2 American Airlines, Inc., 9.71%, 1/2/07 $ 1,579,838
1,000,000 BB/Ba2 Northwest Airlines, Inc., 8.52%, 4/7/04 931,770
1,876,673 A/A1 Southwest Airlines Co., 7.67%, 1/2/14 1,884,968
1,000,000 BB+/Baa3 United Air Lines, Inc., 9.125%, 1/15/12 935,900
-----------
$ 5,332,476
-----------
Railroads - 0.7%
1,000,000 BBB+/Baa1 Norfolk Southern Corp., 9.0%, 3/1/21 $ 1,068,570
-----------
Total Transportation $ 8,468,226
-----------
Utilities - 4.1%
Electric Companies - 1.4%
1,000,000 BBB-/Baa3 Great Lakes Power Inc., 8.3%, 3/1/05 $ 987,770
1,000,000 A/A2 Virginia Electric and Power Co., 8.75%,
4/1/21 1,029,040
-----------
$ 2,016,810
-----------
Natural Gas - 2.7%
1,000,000 BBB-/Baa2 KN Energy Inc., 6.45%, 11/30/01 $ 983,510
1,000,000 A-/Baa1 Northern Natural Gas, 7.0%, 6/1/11
(144A) 943,470
1,000,000 A/A2 Oneok, Inc., 6.0%, 2/1/09 876,060
1,000,000 BBB/Baa2 Sonat Inc., 7.625%, 7/15/11 976,610
-----------
$ 3,779,650
-----------
Total Utilities $ 5,796,460
-----------
Total Corporate Bonds
(Cost $101,261,252) $94,930,985
-----------
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS - 29.5%
$ 12,930 Federal Home Loan Mortgage Corp.,
10.0%, 11/1/02 $ 13,041
25,501 Federal Home Loan Mortgage Corp.,
10.5%, 4/1/19 27,323
32,862 Federal Home Loan Mortgage Corp.,
REMIC Series 1988-24B, 9.5%, 1/15/05 33,517
118,142 Federal National Mortgage Association,
11.0%, 6/1/19 129,164
27,953 Federal National Mortgage Association,
10.0%, 7/1/19 29,547
169,717 Federal National Mortgage Association,
REMIC 1989-19A, 10.3%, 4/25/19 179,837
7,751 Federal National Mortgage Association,
REMIC 1989-19B, 10.3%, 4/25/19 8,439
21,024 Government National Mortgage Association,
9.5%, 5/15/20 21,851
193,966 Government National Mortgage Association,
10.0%, 1/15/18 to 7/15/20 205,012
8,441,987 Government National Mortgage Association,
8.0%, 11/15/29 to 1/15/30 8,537,465
9,316,210 Government National Mortgage Association,
7.5%, 5/15/27 to 2/15/30 9,254,545
8,680,904 Government National Mortgage Association,
7.0%, 7/15/29 to 12/15/30 8,447,293
66,619 Government National Mortgage Association I,
10.0%, 1/15/06 67,862
2,398,325 Government National Mortgage Association I,
8.0%, 5/15/30 2,425,450
30,038 Government National Mortgage Association II,
9.5%, 12/20/20 31,003
27,514 Government National Mortgage Association,
Midget, 10.0%, 5/15/04 28,035
1,500,000 Government National Mortgage Association,
REMIC Series 1998-21, 6.5%, 10/20/11 1,429,125
3,000,000 U.S. Treasury Bonds, 7.5%, 11/15/16 3,380,550
3,000,000 U.S. Treasury Bonds, 8.0%, 11/15/21 3,619,560
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/00 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P's/Moody's
Principal Ratings
Amount (unaudited) Value
<S> <C> <C> <C>
U.S. Government and Agency
Obligations - (continued)
$ 400,000 U.S. Treasury Notes, 6.375%, 9/30/01 $ 399,436
1,000,000 U.S. Treasury Notes, 5.875%, 11/15/04 985,700
2,000,000 U.S. Treasury Notes, 7.0%, 7/15/06 2,073,280
750,000 U.S. Treasury Notes, 6.25%, 8/15/23 754,545
------------
Total U.S. Government and
Agency Obligations
(Cost $41,831,247) $ 42,081,580
------------
FOREIGN GOVERNMENT SPONSORED - 1.9%
1,500,000 A+/A2 Hydro-Quebec, 8.0%, 2/1/13 $ 1,565,595
1,000,000 A/A2 Province of Saskatchewan, 9.375%,
12/15/20 1,180,460
------------
Total Foreign Government Sponsored
(Cost $2,740,700) $ 2,746,055
------------
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $149,176,608) (a)(b) $142,948,704
============
</TABLE>
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 2000, the
value of these securities amounted to $4,770,960 or 3.3% of total net
assets.
(a) At June 30, 2000, the net unrealized loss on investments, based on cost
for federal income tax purposes of $149,355,671 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 778,859
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (7,185,826)
-----------
Net unrealized loss $(6,406,967)
===========
</TABLE>
(b) At June 30, 2000, the Fund had a net capital loss carryforward of
$6,644,799 which will expire between 2003 and 2008 if not utilized.
Note: The Fund's investments in mortgage-backed securities of the Government
National Mortgage Association (GNMA) and Federal National Mortgage
Association (FNMA) are interests in separate pools of mortgages. All
separate investments in these issuers 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, 2000 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
----------- ------------
<S> <C> <C>
Long-term U.S. Government $76,112,571 $108,438,303
Other Long-term Securities 23,284,284 22,376,772
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
BALANCE SHEET 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $149,176,608) $142,948,704
Cash 494,315
Receivables -
Fund shares sold 404,989
Interest 2,887,327
Other 477
------------
Total assets $146,735,812
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 389,747
Dividends 208,957
Due to affiliates 142,183
Accrued expenses 113,160
------------
Total liabilities $ 854,047
------------
NET ASSETS:
Paid-in capital $162,604,600
Accumulated undistributed net investment income 55,980
Accumulated net realized loss on investments (10,550,911)
Net unrealized loss on investments (6,227,904)
------------
Total net assets $145,881,765
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $102,348,683/12,077,569 shares) $ 8.47
============
Class B (based on $37,268,744/4,413,872 shares) $ 8.44
============
Class C (based on $6,264,338/740,876 shares) $ 8.46
============
MAXIMUM OFFERING PRICE:
Class A $ 8.87
============
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
For the Year Ended 6/30/00
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest $13,264,833
-----------
EXPENSES:
Management fees $844,331
Transfer agent fees
Class A 294,305
Class B 160,089
Class C 55,266
Distribution fees
Class A 292,375
Class B 433,236
Class C 85,925
Administrative fees 44,975
Custodian fees 43,314
Registration fees 42,889
Professional fees 84,396
Printing 42,644
Fees and expenses of nonaffiliated trustees 25,432
Miscellaneous 9,495
--------
Total expenses $ 2,458,672
Less fees paid indirectly (39,376)
-----------
Net expenses $ 2,419,296
-----------
Net investment income $10,845,537
-----------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $(6,904,742)
Change in net unrealized loss on investments (2,601,649)
-----------
Net loss on investments $(9,506,391)
-----------
Net increase in net assets resulting from operations $ 1,339,146
===========
</TABLE>
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
For the Years Ended 6/30/00 and 6/30/99
<TABLE>
<CAPTION>
Year Ended Year Ended
FROM OPERATIONS: 6/30/00
6/30/99
<S> <C> <C>
Net investment income $ 10,845,537 $ 10,582,259
Net realized gain (loss) on investments (6,904,742) 937,466
Change in net unrealized gain or loss on investments (2,601,649) (10,260,323)
------------ ------------
Net increase in net assets resulting
from operations $ 1,339,146 $ 1,259,402
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.58 and $0.56 per share, respectively) $ (7,812,946) $ (7,701,473)
Class B ($0.51 and $0.48 per share, respectively) (2,547,821) (2,283,992)
Class C ($0.46 and $0.48 per share, respectively) (456,721) (599,723)
------------ ------------
Total distributions to shareholders $(10,817,488) $(10,585,188)
------------ ------------
FROM FUND SHARE TRANSACTION
Net proceeds from sale of shares $ 90,338,479 $220,458,929
Reinvestment of distributions 8,109,094 7,689,631
Cost of shares repurchased (132,759,583) (182,879,191)
------------ ------------
Net increase (decrease) in net assets resulting
from fund share transactions $(34,312,010) $ 45,269,369
------------ ------------
Net increase (decrease) in net assets $(43,790,352) $ 35,943,583
NET ASSETS:
Beginning of year 189,672,117 153,728,534
------------ ------------
End of year (including accumulated undistributed net
investment income of $55,980 and $12,118,
respectively) $145,881,765 $189,672,117
============ ============
</TABLE>
<TABLE>
<CAPTION>
CLASS A '00 Shares '00 Amount '99 Shares '99 Amount
<S> <C> <C> <C> <C>
Shares sold 6,961,511 $ 59,973,090 16,837,950 $157,202,981
Reinvestment of distributions 710,968 6,121,497 638,020 5,941,487
Less shares repurchased (10,081,538) (86,763,886) (15,191,420) (141,713,341)
----------- ------------ ----------- ------------
Net increase (decrease) (2,409,059) $(20,669,299) 2,284,550 $ 21,431,127
----------- ------------ ----------- ------------
CLASS B
Shares sold 1,752,374 $ 15,137,966 4,694,027 $ 43,795,349
Reinvestment of distributions 195,908 1,681,866 160,668 1,489,392
Less shares repurchased (3,126,491) (26,892,331) (2,573,656) (23,845,332)
----------- ------------ ----------- ------------
Net increase (decrease) (1,178,209) $(10,072,499) 2,281,039 $ 21,439,409
----------- ------------ ----------- ------------
CLASS C
Shares sold 1,740,006 $ 15,227,423 2,092,821 $ 19,460,599
Reinvestment of distributions 35,624 305,731 27,934 258,752
Less shares repurchased (2,200,860) (19,103,366) (1,869,099) (17,320,518)
----------- ------------ ----------- ------------
Net increase (decrease) (425,230) $ (3,570,212) 251,656 $ 2,398,833
----------- ------------ ----------- ------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/00 6/30/99 6/30/98 6/30/97 6/30/96
<S> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year $ 8.94 $ 9.37 $ 9.07 $ 9.08 $ 9.35
-------- -------- -------- ------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.58 $ 0.56 $ 0.59 $ 0.63 $ 0.64
Net realized and unrealized gain (loss) on investments (0.47) (0.43) 0.30 (0.01) (0.27)
-------- -------- -------- ------- --------
Net increase from investment operations $ 0.11 $ 0.13 $ 0.89 $ 0.62 $ 0.37
Distributions to shareholders:
Net investment income (0.58) (0.56) (0.59) (0.63) (0.64)
-------- -------- -------- ------- --------
Net increase (decrease) in net asset value $ (0.47) $ (0.43) $ 0.30 $ (0.01) $ (0.27)
-------- -------- -------- ------- --------
Net asset value, end of year $ 8.47 $ 8.94 $ 9.37 $ 9.07 $ 9.08
======== ======== ======== ======= ========
Total return* 1.30% 1.35% 10.04% 7.09% 4.02%
Ratio of net expenses to average net assets+ 1.18% 1.04% 1.18% 1.14% 1.19%
Ratio of net investment income to average net assets+ 6.68% 6.01% 6.34% 6.97% 6.80%
Portfolio turnover rate 60% 46% 44% 48% 39%
Net assets, end of year (in thousands) $102,349 $129,487 $114,326 $98,310 $101,957
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.15% 1.02% 1.17% 1.12% 1.18%
Net investment income 6.71% 6.03% 6.35% 6.99% 6.81%
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/00 6/30/99 6/30/98 6/30/97 6/30/96
<S> <C> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of year $ 8.91 $ 9.33 $ 9.03 $ 9.02 $ 9.31
------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.50 $ 0.48 $ 0.51 $ 0.56 $ 0.57
Net realized and unrealized gain (loss) on investments (0.46) (0.42) 0.31 (0.01) (0.28)
------- ------- ------- ------- -------
Net increase from investment operations $ 0.04 $ 0.06 $ 0.82 $ 0.55 $ 0.29
Distributions to shareholders:
Net investment income (0.51) (0.48) (0.52) (0.54) (0.57)
In excess of net investment income - - - - (0.01)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value $ (0.47) $ (0.42) $ 0.30 $ 0.01 $ (0.29)
------- ------- ------- ------- -------
Net asset value, end of year $ 8.44 $ 8.91 $ 9.33 $ 9.03 $ 9.02
======= ======= ======= ======= =======
Total return* 0.48% 0.57% 9.21% 6.24% 3.15%
Ratio of net expenses to average net assets+ 2.05% 1.86% 1.98% 1.97% 1.96%
Ratio of net investment income to average net assets+ 5.81% 5.18% 5.52% 6.12% 6.01%
Portfolio turnover rate 60% 46% 44% 48% 39%
Net assets, end of year (in thousands) $37,269 $49,816 $30,888 $20,104 $14,843
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.03% 1.83% 1.97% 1.96% 1.94%
Net investment income 5.83% 5.21% 5.53% 6.13% 6.03%
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended 1/31/96 to
6/30/00 6/30/99 6/30/98 6/30/97 6/30/96
<S> <C> <C> <C> <C> <C>
CLASS C
Net asset value, beginning of period $ 8.89 $ 9.31 $ 9.02 $ 9.02 $ 9.54
------ ------- ------ ------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.48 $ 0.48 $ 0.52 $ 0.54 $ 0.23
Net realized and unrealized gain (loss) on investments (0.45) (0.42) 0.29 - (0.52)
------- ------- ------ ------ ------
Net increase (decrease) from investment operations $ 0.03 $ 0.06 $ 0.81 $ 0.54 $(0.29)
Distributions to shareholders:
Net investment income (0.46) (0.48) (0.52) (0.54) (0.22)
In excess of net investment income - - - - (0.01)
------ ------- ------ ------ ------
Net increase (decrease) in net asset value $(0.43) $ (0.42) $ 0.29 $ - $(0.52)
------ ------- ------ ------ ------
Net asset value, end of period $ 8.46 $ 8.89 $ 9.31 $ 9.02 $ 9.02
====== ======= ====== ====== ======
Total return* 0.36% 0.60% 9.12% 6.13% (3.00)%
Ratio of net expenses to average net assets+ 2.32% 1.86% 1.90% 2.05% 2.18%**
Ratio of net investment income to average net assets+ 5.53% 5.17% 5.58% 5.83% 5.79%**
Portfolio turnover rate 60% 46% 44% 48% 39%
Net assets, end of period (in thousands) $6,264 $10,369 $8,515 $4,588 $ 343
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.30% 1.83% 1.89% 1.92% 2.13%**
Net investment income 5.55% 5.20% 5.59% 5.96% 5.84%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Bond Fund (the Fund) is a Delaware business trust registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The 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.
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 has exclusive voting
rights with respect to the distribution plans that have been adopted by Class A,
Class B, and Class C shareholders, respectively.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to, among
other things, make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and
expenses during the reporting periods. Actual results could differ from those
estimates. The following is a summary of significant accounting policies
consistently followed by the Fund, which are in conformity with those generally
accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued
at prices supplied by independent pricing services, which consider such
factors as Treasury spreads, yields, maturities and ratings. Valuations may
be supplemented by dealers and 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, including interest on income bearing cash accounts, is
recorded on the accrual basis. Temporary cash investments are valued at
amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
It is the Fund's practice to first select for sale those securities that
have the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
23
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/00 (continued)
--------------------------------------------------------------------------------
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.
At June 30, 2000, the Fund has reclassified $15,813 from accumulated net
realized loss on investments to accumulated undistributed 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 as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and an indirect subsidiary of The Pioneer Group, Inc. (PGI), earned
$20,714 in underwriting commissions on the sale of fund shares for the year
ended June 30, 2000.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset
values attributable to Class A, Class B, and Class C shares of the Fund,
respectively. Shareholders of each class share all expenses and fees paid
to the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expense (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.
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.
24
<PAGE>
Pioneer Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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.
2. Management Agreement
Pioneer Investment Management, Inc. (PIM), 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 and administration agreements, certain other
services and costs, including accounting, regulatory reporting, and insurance
premiums, are paid by the Fund. At June 30, 2000, $63,758 was payable to PIM
related to management fees, administrative fees and certain other services.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer agent
and shareholder services to the Fund at negotiated rates. Included in due to
affiliates is $31,736 in transfer agent fees payable to PSC at June 30, 2000.
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 the Class A Plan, the Fund pays PFD a service
fee of up to 0.25% of the average daily net assets attributable to Class A
shares in reimbursement of its actual expenditures to finance activities
primarily intended to result in the sale of Class A shares. Pursuant to the
Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of the average daily
net assets attributable to each class of shares. The fee consists of a 0.25%
service fee and a 0.75% distribution fee paid as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class B and Class C shares. Included in due to affiliates is $46,689
in distribution fees payable to PFD at June 30, 2000.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares
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Pioneer Bond Fund
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NOTES TO FINANCIAL STATEMENTS 6/30/00 (continued)
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within one year of purchase. Class B shares that are redeemed within six years
of purchase are subject to a CDSC at declining rates beginning at 4.00%, based
on the lower of cost or market value of shares being redeemed. Redemptions of
Class C shares within one year of purchase are subject to a CDSC of 1.00%.
Proceeds from the CDSCs are paid to PFD. For the year ended June 30, 2000, CDSCs
in the amount of $323,507 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 year ended June 30, 2000, the
Fund's expenses were reduced by $39,376 under such arrangements.
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Pioneer Bond Fund
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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To the Shareowners and the Board of Trustees of Pioneer Bond Fund:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Bond Fund as of June 30, 2000, and the related statement
of operations, the statements of changes in net assets, and the 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 auditing standards generally accepted
in the United States. 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, 2000 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, 2000, the results of its operations, the
changes in its net assets, and the financial highlights for the periods
presented, in conformity with accounting principles generally accepted in the
United States.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
August 11, 2000
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Pioneer Bond Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers Trustees
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham Sherman B. Russ, Vice President
Marguerite A. Piret Eric W. Reckard, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
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
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Pioneer Bond Fund
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THE PIONEER FAMILY OF MUTUAL FUNDS
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For information about any Pioneer mutual fund, please contact your investment
professional, 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 Income Funds
United States Taxable
Pioneer Growth Shares Pioneer America Income Trust
Pioneer Micro-Cap Fund Pioneer Bond Fund
Pioneer Mid-Cap Fund Pioneer High Yield Fund
Pioneer Mid-Cap Value Fund Pioneer Limited Maturity Bond Fund
Pioneer Science & Technology Fund Pioneer Strategic Income Fund
Pioneer Small Company Fund
Pioneer Tax-Managed Fund Tax-Free
Pioneer Tax-Free Income Fund
International/Global
Pioneer Emerging Markets Fund Money Market Fund
Pioneer Europe Fund Pioneer Cash Reserves Fund*
Pioneer Indo-Asia Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Fund
Pioneer II
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Real Estate Shares
* An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1 per share, it is
possible to lose money by investing in the Fund.
29
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HOW TO CONTACT PIONEER
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We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[PIONEER LOGO]
Pioneer Investment Management, Inc.
60 State Street 8636-00-0800
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [recycle bug] Printed on Recycled Paper
