<PAGE>
[Pioneer Logo]
Pioneer Bond
Fund
- ---------------------------
SEMIANNUAL REPORT 12/31/99
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<PAGE>
Table of Contents
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<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 18
Notes to Financial Statements 24
Trustees, Officers and Service Providers 28
Pioneer Family of Mutual Funds 29
</TABLE>
<PAGE>
Pioneer Bond Fund
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LETTER FROM THE CHAIRMAN 12/31/99
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Dear Shareowner,
- --------------------------------------------------------------------------------
In an ever-changing investment environment, it can sometimes be difficult to be
disciplined enough to adhere to your investment goals. We are bombarded every
day with information and advice from a variety of sources. Magazine and
newspaper headlines create a frenzy by shouting - "Top 10 stocks for the year
2000" - sending many investors scrambling to adjust their holdings so that they
too can have a share in these winners. But as history often shows us,
yesterday's winners are in no way tomorrow's sure thing.
We know it's challenging to digest all of this information. But no one can know
with absolute certainty which stocks or bonds will have good performance from
day to day. It is important to keep sight of your own investment goals and to
stick to them. Jumping from one investment to another based upon the latest hot
trend may not help you to reach the financial goals for which you are aiming. We
think a well reasoned investment plan will.
As in any other year, the first few months of this year are a practical time to
take a step back to revisit your investment goals and make appropriate
adjustments in your personal portfolio. Scheduling a review session with your
financial professional is a good starting point. A professional acquainted with
your individual circumstances can help you to distill information, examine your
current strategy and make informed decisions that can effectively satisfy your
long-term investment needs.
Among the key topics to cover with your advisor is your retirement - including
the IRA options available to you. Now is the time to think about making a 1999
contribution to an IRA, if you haven't already. This year, you'll have until
April 17 to make your prior-year IRA contribution because April 15 falls on a
Saturday. And, to begin taking advantage of tax-deferred growth, you might want
to get a head start on your year 2000 contribution.
I encourage you to read on to learn more about Pioneer Bond Fund. If you have
questions, please contact your investment professional. Visit our web site at
www.pioneerfunds.com for more information about your fund or Pioneer.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
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Pioneer Bond Fund
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PORTFOLIO SUMMARY 12/31/99
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[Tabular Representation of Pie Chart A]
<TABLE>
<S> <C>
Corporate 62%
U.S. Government and Agency 34%
Foreign Goverment Sponsored 2%
Collateralized Mortgage Obligations 1%
Convertible Corporate 1%
</TABLE>
Portfolio Maturity
- --------------------------------------------------------------------------------
(Effective life as a percentage of total investment portfolio)
[Tabular Representation of Pie Chart B]
<TABLE>
<S> <C>
0-2 Years 2%
2-5 Years 13%
5-7 Years 15%
7-10 Years 26%
10-20 Years 36%
20+ Years 8%
</TABLE>
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of debt holdings)
<TABLE>
<S> <C>
1. U.S. Treasury Notes, 7.0%, 7/15/06 6.61%
2. Government National Mortgage Association, 7.0%, 7/15/29 2.66
3. Government National Mortgage Association II, 7.5%, 9/20/29 2.60
4. Ford Capital BV, 9.5%, 6/1/10 1.98
5. Government National Mortgage Association, 7.0%, 8/15/28 1.92
6. Government National Mortgage Association, 8.0%, 11/15/29 1.77
7. Federal National Mortgage Association, 6.0%, 5/15/08 1.65
8. Government National Mortgage Association, 7.0%, 2/15/29 1.52
9. Government National Mortgage Association, 6.5%, 4/15/28 1.51
10. American General Finance Corp., 8.125%, 8/15/09 1.50
</TABLE>
2 Fund holdings will vary for other periods.
<PAGE>
Pioneer Bond Fund
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PERFORMANCE UPDATE 12/31/99 CLASS A SHARES
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Share Prices and Distributions
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<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/99 6/30/99
$ 8.60 $ 8.94
Distributions per Share Income Short-Term Long-Term
(6/30/99 - 12/31/99) Dividends Capital Gains Capital Gains
$ 0.291 - -
</TABLE>
Investment Returns
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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 December 31, 1999)
<TABLE>
<CAPTION>
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
10 Years 6.95% 6.45%
5 Years 6.51 5.54
1 Year -3.20 -7.60
</TABLE>
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
[Tabular Representation of Class A Line Chart]
<TABLE>
<CAPTION>
Lehman Brothers Government/
Pioneer Bond Fund* Corporate Bond Index
<S> <C> <C>
12/89 9,550 10,000
10,246 10,827
12/91 11,838 12,571
12,772 13,523
12/93 14,232 15,019
13,635 14,491
12/95 16,110 17,281
16,426 17,780
12/97 17,931 19,514
19,310 21,363
12/99 18,691 20,903
</TABLE>
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
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PERFORMANCE UPDATE 12/31/99 CLASS B SHARES
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Share Prices and Distributions
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<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/99 6/30/99
$ 8.58 $ 8.91
Distributions per Share Income Short-Term Long-Term
(6/30/99 - 12/31/99) Dividends Capital Gains Capital Gains
$ 0.254 - -
</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 December 31, 1999)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 4.81% 4.68%
(4/4/94)
5 Years 5.68 5.52
1 Year -3.85 -7.49
</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.
[Tabular Representation of Class B Line Chart]
<TABLE>
<CAPTION>
Lehman Brothers Government/
Pioneer Bond Fund* Corporate Bond Index
<S> <C> <C>
4/94 10,000 10,000
9,927 9,876
12/94 9,938 9,961
10,976 11,136
12/95 11,637 11,878
11,321 11,655
12/96 11,766 12,223
12,028 12,558
12/97 12,753 13,415
13,136 13,975
12/98 13,622 14,686
13,211 14,352
12/99 13,005 14,371
</TABLE>
+ 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
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PERFORMANCE UPDATE 12/31/99 CLASS C SHARES
- --------------------------------------------------------------------------------
Share Prices and Distributions
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/99 6/30/99
$ 8.56 $ 8.89
Distributions per Share Income Short-Term Long-Term
(6/30/99 - 12/31/99) Dividends Capital Gains Capital Gains
$ 0.236 - -
</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 December 31, 1999)
<TABLE>
<CAPTION>
If If
Period Held Redeemed*
<S> <C> <C>
Life-of-Fund 2.88% 2.88%
(1/31/96)
1 Year -4.07 -4.07
</TABLE>
* Assumes reinvestment of distributions. A 1% contingent deferred sales charge
(CDSC) applies to redemptions made within one year of purchase.
[Tabular Representation of Class C Line Chart]
<TABLE>
<CAPTION>
Lehman Brothers Government/
Pioneer Bond Fund* Corporate Bond Index
<S> <C> <C>
1/96 10,000 10,000
9,679 9,706
9,700 9,750
9,831 9,922
12/96 10,081 10,225
9,971 10,137
10,294 10,505
10,607 10,873
12/97 10,904 11,222
11,024 11,393
11,233 11,691
11,700 12,269
12/98 11,653 12,286
11,515 12,139
11,300 12,007
11,277 12,071
12/99 11,179 12,022
</TABLE>
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
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/99
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The six months that ended on December 31, 1999 were unquestionably a challenging
period for bond markets. In the following discussion, Sherman B. Russ and
Kenneth J. Taubes detail the factors and events that shaped your Fund's
performance during the fiscal period. Mr. Russ and Mr. Taubes oversee the team
responsible for the daily management of Pioneer Bond Fund.
Q: The sharp rise in interest rates made the past six months tough on bonds -
how did the Fund perform?
A: As with most bond investments, the Fund's total return reflects the drop in
bond prices, a consequence of rising interest rates. However, the Fund's
income rose during the period, helping to offset the decline in share price.
On December 31, 1999, the 30-day SEC yield for the Fund was 6.57% - rising
from 5.63%, where it stood six months ago. The six-month total return for the
Fund's Class A shares was -0.56%, -0.86% for Class B shares and -1.07% for
Class C shares, at net asset value. In comparison, the average return for the
same period of the 176 funds in Lipper, Inc.'s Corporate Debt A-rated
category was -0.21%. (Lipper, Inc. is an independent company that tracks
mutual fund performance.) The Fund's investments in high-yield bonds
detracted from its results during much of the period. The performance for
high yield bonds as a group deteriorated significantly in the second half of
1999. However, by the end of the year, high-yield bond prices had begun to
recover. Historically, high-yield securities have complemented other types of
bond investments and generated above average income and total returns.
Although past performance is no guarantee of future results, over the long
term, we believe high-yield bonds have the potential to boost the Fund's
performance.
Q: Why was the investment environment so difficult?
A: Interest rates rose sharply in the second half of 1999, reflecting investors'
concerns that strong economic growth might spark inflation. Rising interest
rates worked against the prices of bonds (just as falling rates tend to boost
bond prices). The situation represented a dramatic change in investors'
expectations from earlier in the year. The rise in rates - most of which
occurred in the second half of the year - gave 1999 the
6
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Pioneer Bond Fund
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distinction of being the second worst year for bonds since 1973. Only in 1994
did bonds experience a greater decline.
As the fiscal period began, investors had begun to shift their focus to
stronger-than-expected economic growth and its potential to stimulate
inflation, reversing course from earlier concerns of weak economic growth.
The change in outlook prompted investors to push interest rates higher and
bond prices lower. Meanwhile, the Federal Reserve Board raised short-term
interest rates three times from June 1999 to December 1999, bringing them
back to the levels that existed before 1998's international financial crisis.
Q: How did you try to protect the Fund against rising interest rates?
A: We emphasized ways to increase income, which helped offset the price
declines. Specifically, we increased holdings in mortgage-backed securities.
These securities offered higher yields than other types of high-quality
investments. During the final months of 1999 in particular, mortgage-backed
securities held their value better than other types of bonds and, as a
result, outperformed other fixed-income sectors. At that point, believing
that the performance of mortgage-backed securities might begin to wane, we
began to lighten-up on them. We invested the proceeds in older U.S. Treasury
securities called "off-the-run" Treasurys. These issues tended to provide
higher yields than the most recently issued Treasurys with similar
maturities.
In the corporate bond sector, we focused on careful security selection.
Mid-way through 1999, the Fund began taking advantage of its new flexibility
to invest in high-yield bonds. (By prospectus, the Fund may now invest up to
20% of the portfolio in high-yield, lower-grade securities.) We invested, for
example, in bonds issued by industrial companies that stand to benefit from
the pick-up in the global economy. We also chose bonds in the acute care
hospital sector, which had begun to recover from difficulties triggered by
regulatory concerns. Although high-yield bonds in general lagged other types
of fixed-income securities during much of the latter half of the year,
7
<PAGE>
Pioneer Bond Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/99 (continued)
- --------------------------------------------------------------------------------
the Fund's high-yield holdings made a strong contribution to income - raising
the Fund's current yield substantially. While the market for high-yield bonds
has been challenging during the second half of 1999, we believe the Fund's
ability to invest in this sector enhances the portfolio's potential for solid
performance.
Q: What is your outlook in the coming months?
A: In the short run, we are cautious about the direction of interest rates and -
by extension - bond prices. Longer term, we are more optimistic. The Federal
Reserve Board already has raised interest rates three-quarters of a
percentage point since June of last year. We believe the Fed is still
pursuing a goal of economic growth at more sustainable rates, so further
increases cannot be ruled out. If the Fed institutes additional rate
increases, as the market is anticipating, we think the Fed's cumulative
actions will begin to moderate economic growth later in 2000 - a positive for
bonds. In addition, it appears that current bond prices already reflect the
negative effect of higher rates, suggesting that prices have room to improve.
Further, we think fixed-income securities look very attractive right now,
relative to equities. For the past several years, U.S. bonds have not
performed as well as stocks based on broad market indices. However, if the
economy slows, as we think it will, investors could well be rewarded if they
rebalance portfolios whose allocations may have become too heavily tilted
toward stocks as stock prices rose. The value of bonds is particularly
pronounced given the low level of inflation. "Real" interest rates - or the
rate received by the investor after inflation is removed - are historically
high, thanks to inflation remaining well contained.
Admittedly, the past year has been difficult for bond investors. All
financial markets experience periods of turbulence - and while those periods
challenge even the most seasoned investors in the short term, dramatic market
changes often create longer-term opportunity. We think the Fund's recently
acquired ability to expand investments beyond investment-grade borders along
with careful bond picking will help your Fund optimize the opportunity for
attractive income and price performance in the months ahead.
8
<PAGE>
Pioneer Bond Fund
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SCHEDULE OF INVESTMENTS 12/31/99 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
INVESTMENT IN SECURITIES - 100.0%
CONVERTIBLE CORPORATE BONDS - 0.8%
$ 800,000 B+/B1 Masotech, Inc., 4.5%, 12/15/03 $ 587,000
1,007,000 BB-/B2 Pogo Producing Co., 5.5%, 6/15/06 790,515
----------
Total Convertible Corporate Bonds
(Cost $1,468,178) $1,377,515
----------
COLLATERALIZED MORTGAGE
OBLIGATIONS - 1.1%
956,605 NA/Aaa Prudential Securities Secured Financing
Co., Series 1999-NRF1 A1, 6.074%,
1/15/08 $ 908,925
1,000,000 NA/Aaa Prudential Securities Secured Financing
Co., Series 1999-NRF1 A1, 6.48%,
1/15/09 933,750
85,587 AAA/NA Resolution Trust Corp., Series 1992-5A6,
9.238%, 5/25/26 85,614
----------
Total Collateralized Mortgage Obligations
(Cost $2,063,366) $1,928,289
----------
CORPORATE BONDS - 62.3%
Basic Materials - 4.4%
Agricultural - 0.5%
1,000,000 B+/B2 Royster-Clark Inc., 10.25%, 4/1/09 (144A) $ 910,000
----------
Chemicals (Diversified) - 0.6%
1,000,000 B+/B2 Huntsman ICI Chemicals, 10.125%,
7/1/09 (144A) $1,025,000
----------
Chemicals (Specialty) - 0.6%
1,000,000 BB/Ba2 Arco Chemical Co., 9.8%, 2/1/20 $1,000,000
----------
Iron & Steel - 1.7%
1,000,000 AA-/A1 Nucor Corp., 6.0%, 1/1/09 (144A) $ 876,170
2,000,000 BBB-/Baa2 USX Corp., 8.125%, 7/15/23 1,985,580
----------
$2,861,750
----------
Metals Mining - 0.4%
1,000,000 CC/Ca AEI Resources, Inc., 11.5%, 12/15/06
(144A) $ 650,000
----------
Paper & Forest Products - 0.6%
1,000,000 A-/A3 Mead Corp., 8.125%, 2/1/23 $ 953,140
----------
Total Basic Materials $7,399,890
----------
</TABLE>
9
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Pioneer Bond Fund
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SCHEDULE OF INVESTMENTS 12/31/99 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Capital Goods - 1.2%
Engineering & Construction - 0.5%
$ 895,000 B+/B2 Metromedia Fiber Network Inc., 10.0%,
11/15/08 $ 917,375
----------
Waste Management - 0.7%
1,000,000 B+/B2 Allied Waste North America Inc., 10.0%,
8/1/09 (144A) $ 890,000
300,000 BB-/Ba3 Browning-Ferris Industries, Inc., 6.375%,
1/15/08 246,000
----------
$1,136,000
----------
Total Capital Goods $2,053,375
----------
Communication Services - 1.8%
Cellular/Wireless Telecommunications - 1.2%
1,000,000 B/B3 Crown Castle International Corp., 9.5%,
8/1/11 $1,007,500
1,000,000 B/B2 NEXTLINK Communications, Inc., 10.75%,
6/1/09 1,037,500
----------
$2,045,000
----------
Telecommunications - 0.6%
1,000,000 AA-/A1 AT&T Corp., 8.125%, 1/15/22 $ 973,130
----------
Total Communication Services $3,018,130
----------
Consumer Cyclicals - 5.9%
Automobiles - 1.4%
2,000,000 A/A2 General Motors Corp., 9.4%, 7/15/21 $2,316,280
----------
Hardware & Tools - 0.3%
500,000 B+/B2 Scotts Co., 8.625%, 1/15/09 (144A) $ 487,500
----------
Homebuilding - 0.2%
370,000 BB+/Ba2 Toll Corp., 8.125%, 2/1/09 $ 343,175
----------
Publishing (Newspapers) - 1.0%
1,500,000 BBB-/Baa3 News America Holdings, Inc., 10.125%,
10/15/12 $1,615,050
----------
Retail - 1.2%
1,000,000 AA/Aa2 Wal-Mart Stores, Inc., 8.62%, 1/1/10 $1,051,930
1,000,000 AA/Aa2 Wal-Mart Stores, Inc., 8.5%, 9/15/24 1,063,080
----------
$2,115,010
----------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Services (Commercial & Consumer) - 0.8%
$1,500,000 BBB/Baa3 Laidlaw Inc., 7.65%, 5/15/06 $ 1,389,825
-----------
Textiles (Apparel) - 1.0%
1,000,000 BBB-/Baa2 Jones Apparel Group, Inc., 7.875%,
6/15/06 $ 966,820
1,000,000 BBB-/Ba1 Levi Strauss & Co., 7.0%, 11/1/06 (144A) 744,900
-----------
$ 1,711,720
-----------
Total Consumer Cyclicals $ 9,978,560
-----------
Consumer Staples - 8.2%
Broadcasting (Television/Radio/Cable) - 4.9%
1,000,000 BBB-/Baa2 British Sky Broadcasting, 8.2%, 7/15/09
(144A) $ 960,280
1,000,000 B+/B2 Charter Communications Holdings LLC,
8.25%, 4/1/07 (144A) 925,000
2,200,000 BBB/Baa3 Continental Cablevision, Inc., 9.5%, 8/1/13 2,433,750
1,500,000 BBB+/Baa1 Cox Enterprises, 7.375%, 6/15/09 (144A) 1,458,405
1,040,000 B/B2 Echostar DBS Corp., 9.25%, 2/1/06 1,047,800
1,250,000 AA-/Ba1 Tele-Communications, Inc., 10.125%,
4/15/22 1,536,925
-----------
$ 8,362,160
-----------
Distributors (Food & Health) - 1.4%
500,000 B/B3- Fisher Scientific International Inc., 9.0%,
2/1/08 $ 478,750
1,000,000 BBB+/Baa1 SUPERVALU Inc., 8.875%, 11/15/22 993,120
1,000,000 B/B2 Wesco Distribution Inc., 9.125%, 6/1/08 940,000
-----------
$ 2,411,870
-----------
Entertainment - 1.9%
1,000,000 B-/B3 Premier Parks, Inc., 9.75%, 6/15/07 $ 1,001,250
2,000,000 BBB/Baa3 Time Warner Inc., 9.15%, 2/1/23 2,225,620
-----------
$ 3,226,870
-----------
Total Consumer Staples $14,000,900
-----------
Energy - 7.1%
Oil (Domestic Integrated) - 1.6%
500,000 A/A2 Atlantic Richfield Co., 9.875%, 3/1/16 $ 602,390
2,000,000 A-/A3 Phillips Petroleum Co., 9.18%, 9/15/21 2,054,080
-----------
$ 2,656,470
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Bond Fund
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SCHEDULE OF INVESTMENTS 12/31/99 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Oil (International Integrated) - 1.7%
$1,580,000 AA/Aa2+ Imperial Oil Ltd., 8.75%, 10/15/19 $ 1,631,840
1,200,000 A+/A1 Texaco Capital Corp., 8.25%, 10/1/06 1,258,044
-----------
$ 2,889,884
-----------
Oil & Gas (Drilling & Equipment) - 1.5%
1,500,000 A-/A3 Nabors Industries Inc., 6.8%, 4/15/04 $ 1,446,645
1,000,000 BB-/Ba3 RBF Finance Co., 11.0%, 3/15/06 1,072,500
-----------
$ 2,519,145
-----------
Oil & Gas (Production/Exploration) - 1.7%
2,000,000 BB-/Ba2 Gulf Canada Resources Ltd., 9.625%,
7/1/05 $ 2,009,920
975,000 BB+/Ba1 Santa Fe Snyder Corp., 8.05%, 6/15/04 943,595
-----------
$ 2,953,515
-----------
Oil & Gas (Refining & Marketing) - 0.6%
1,000,000 BBB/Baa2 Ashland Oil Co., 8.8%, 11/15/12 $ 1,051,500
-----------
Total Energy $12,070,514
-----------
Financial - 21.9%
Banks (Major Regional) - 5.9%
1,000,000 A/A1 Banc One Corp., 10.0%, 8/5/10 $ 1,145,390
1,000,000 AA-/Aa3 Barclays North America Capital Corp.,
9.75%, 5/15/21 1,069,700
1,550,000 A-/A2 Corestates Capital Corp., 9.375%,
4/15/03 1,638,288
1,000,000 A/A2 First National Bank of Boston, 8.0%,
9/15/04 1,020,960
1,500,000 A-/A3 Fleet/Norstar Financial Group Inc., 9.9%,
6/15/01 1,557,284
2,000,000 A+/A2 Mellon Bank NA, 7.375%, 5/15/07 1,983,080
1,000,000 A/A3 Mellon Financial Co., 9.75%, 6/15/01 1,036,160
500,000 A/A1 Republic New York Corp., 9.3%, 6/1/21 544,600
-----------
$ 9,995,462
-----------
Banks (Money Center) - 2.7%
2,630,000 A/A1 The Chase Manhattan Corp., 7.125%,
6/15/09 $ 2,558,017
1,000,000 A+/A2 J.P. Morgan & Co., 8.5%, 8/15/03 1,039,780
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Banks (Money Center) - (continued)
$1,000,000 AA-/Aa3 National Westminster Bancorp, Inc.,
9.375%, 11/15/03 $ 1,067,910
-----------
$ 4,665,707
-----------
Banks (Regional) - 2.2%
2,000,000 A+/A1 Bank of Montreal, 7.8%, 4/1/07 $ 2,016,720
1,450,000 BBB-/Ba2 Imperial Bank, 8.5%, 4/1/09 1,341,352
400,000 BB+/Ba3 Sovereign Bancorp, 10.5%, 11/15/06 406,848
-----------
$ 3,764,920
-----------
Consumer Finance - 2.9%
1,000,000 BB+/Baa3 Capital One Financial Corp., 7.125%,
8/1/08 $ 903,640
1,000,000 B/B3 Delta Financial Corp., 9.5%, 8/1/04 640,000
3,000,000 A+/A1 Ford Capital BV, 9.5%, 6/1/10 3,371,250
-----------
$ 4,914,890
-----------
Financial (Diversified) - 5.7%
2,500,000 A+/A2 American General Finance Corp., 8.125%,
8/15/09 $ 2,559,975
1,100,000 A+/A1 Associates Corp., 8.15%, 8/1/09 1,140,942
1,000,000 BBB+/Baa1 AvalonBay Communities Inc., 6.8%,
7/15/06 930,090
1,000,000 BBB-/Baa3 Colonial Realty, 7.0%, 7/14/07 890,100
1,500,000 A/A3 Deere (John) Capital Corp., 8.625%,
8/1/19 1,538,925
1,500,000 A-/A3 Hertz Corp., 6.25%, 3/15/09 1,358,865
1,500,000 BBB/Baa3 Mack-Cali Realty Corp., 7.25%, 3/15/09 1,382,265
-----------
$ 9,801,162
-----------
Insurance (Property/Casualty) - 2.5%
1,500,000 AAA/Aa1 GEICO Corp., 9.15%, 9/15/21 $ 1,609,065
1,535,000 AA/Aa2 National Re Corp., 8.85%, 1/15/59 1,616,969
1,000,000 BBB+/Baa1 W.R. Berkley, 8.7%, 1/1/22 990,890
-----------
$ 4,216,924
-----------
Total Financial $37,359,065
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Healthcare - 2.9%
Healthcare (Diversified) - 0.7%
$1,175,000 B/B3 King Pharmaceutical Inc., 10.75%,
2/15/09 $1,245,500
----------
Healthcare (Hospital Management) - 0.8%
375,000 BB+/Ba2 Columbia/HCA Healthcare Corp., 7.25%,
5/20/08 $ 333,998
1,000,000 BB-/Ba3 Tenet Healthcare Corp., 8.125%, 12/1/08 947,500
----------
$1,281,498
----------
Healthcare (Medical Products/Supplies) - 1.4%
1,070,000 BB+/Ba1 Beckman Instruments Inc., 7.05%, 6/1/26 $ 981,179
1,500,000 A-/Baa1 Guidant Corp., 6.15%, 2/15/06 1,375,935
----------
$2,357,114
----------
Total Healthcare $4,884,112
----------
Technology - 0.5%
900,000 BBB+/Baa1 Sun Microsystems, Inc., 7.65%, 8/15/09 $ 895,392
----------
Total Technology $ 895,392
Transportation - 5.1%
Airfreight - 1.2%
2,000,000 BBB+/A3 Federal Express Corp., 8.4%, 3/23/10 $2,000,320
----------
Airlines - 3.3%
1,554,629 BBB/A2 American Airlines, Inc., 9.71%, 1/2/07 $1,655,757
1,000,000 BB/Ba2 Northwest Airlines Inc., 8.52%, 4/7/04 944,660
2,051,743 A/A1 Southwest Airlines Co., 7.67%, 1/2/14 2,030,918
1,000,000 BB+/Baa3 United Air Lines, Inc., 9.125%, 1/15/12 1,035,470
----------
$5,666,805
----------
Railroads - 0.6%
1,000,000 BBB+/Baa1 Norfolk Southern Corp., 9.0%, 3/1/21 $1,098,400
----------
Total Transportation $8,765,525
----------
Utilities - 3.3%
Electric Companies - 1.1%
1,000,000 BBB-/Baa3 Great Lakes Power Inc., 8.3%, 3/1/05 $ 977,280
1,000,000 A/A2 Virginia Electric and Power Co., 8.75%,
4/1/21 979,140
----------
$1,956,420
----------
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Natural Gas - 2.2%
$1,000,000 BBB-/Baa2 KN Energy Inc., 6.45%, 11/30/01 $ 985,170
1,000,000 A-/Baa1 Northern Natural Gas, 7.0%, 6/1/11
(144A) 940,590
1,000,000 A/A2 Oneok, Inc., 6.0%, 2/1/09 882,980
1,000,000 BBB/Baa2 Sonat Inc., 7.625%, 7/15/11 979,810
------------
$ 3,788,550
------------
Total Utilities $ 5,744,970
------------
Total Corporate Bonds
(Cost $111,101,113) $106,170,433
------------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS - 34.2%
17,508 Federal Home Loan Mortgage Corp.,
10.0%, 11/1/02 $ 18,006
26,036 Federal Home Loan Mortgage Corp.,
10.5%, 4/1/19 28,206
42,974 Federal Home Loan Mortgage Corp., REMIC
Series 1988-24B, 9.5%, 1/15/05 44,025
1,500,000 Federal National Mortgage Association,
9.2%, 9/11/00 1,530,135
3,000,000 Federal National Mortgage Association,
6.0%, 5/15/08 2,801,430
1,000,000 Federal National Mortgage Association,
10.35%, 12/10/15 1,302,370
195,947 Federal National Mortgage Association,
11.0%, 6/1/19 216,745
28,413 Federal National Mortgage Association,
10.0%, 7/1/19 30,585
201,489 Federal National Mortgage Association,
REMIC Series 1989-19A, 10.3%, 4/25/19 213,194
7,751 Federal National Mortgage Association,
REMIC Series 1989-19B, 10.3%, 4/25/19 7,931
43,172 Federal National Mortgage Association,
REMIC Series 1989-72D, 8.9%, 10/25/19 43,121
30,298 Government National Mortgage Association,
9.5%, 5/15/20 32,408
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 12/31/99 (unaudited) (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS - (continued)
$ 297,274 Government National Mortgage Association,
10.0%, 1/15/06 to 7/15/20 $ 319,825
4,314,392 Government National Mortgage Association,
7.5%, 5/15/27 to 6/15/27 4,273,537
2,731,097 Government National Mortgage Association,
6.5%, 4/15/28 2,569,362
13,425,784 Government National Mortgage Association,
7.0%, 3/15/12 to 8/15/29 13,046,043
2,984,942 Government National Mortgage Association,
8.0%, 11/15/29 3,017,747
48,146 Government National Mortgage Association,
Midget, 10.0%, 5/15/04 50,235
30,258 Government National Mortgage Association
II, 9.5%, 12/20/20 32,138
4,479,137 Government National Mortgage Association
II, 7.5%, 9/20/29 4,420,594
1,500,000 Government National Mortgage Association,
REMIC Series 1998-21, 6.5%, 10/20/11 1,414,950
2,000,000 U.S. Treasury Bonds, 8.75%, 11/5/08 2,140,940
2,000,000 U.S. Treasury Bonds, 8.0%, 11/15/21 2,267,900
1,000,000 U.S. Treasury Bonds, 6.25%, 8/15/23 942,810
2,000,000 U.S. Treasury Notes, 6.5%, 5/31/01 2,008,080
2,000,000 U.S. Treasury Notes, 6.5%, 5/31/02 2,010,380
1,000,000 U.S. Treasury Notes, 7.25%, 5/15/04 1,030,070
1,000,000 U.S. Treasury Notes, 6.0%, 8/15/04 984,470
11,000,000 U.S. Treasury Notes, 7.0%, 7/15/06 11,257,070
-----------
Total U.S. Government and
Agency Obligations
(Cost $59,615,047) $58,054,307
-----------
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
FOREIGN GOVERNMENT SPONSORED - 1.6%
$1,500,000 A+/A2 Hydro-Quebec, 8.0%, 2/1/13 $ 1,537,245
1,000,000 A/A2 Province of Saskatchewan, 9.375%,
12/15/20 1,178,110
------------
Total Foreign Government Sponsored
(Cost $2,740,700) $ 2,715,355
------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $176,988,404) (a)(b) $170,245,899
------------
</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 December 31, 1999,
the value of these securities amounted to $9,867,845 or 5.7% of total net
assets.
(a) At December 31, 1999, the net unrealized loss on investments, based on
cost for federal income tax purposes of $176,988,404 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 858,835
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (7,601,340)
-----------
Net unrealized loss $(6,742,505)
-----------
</TABLE>
(b) At June 30, 1999, the Fund had a net capital loss carryforward of
$3,630,356 which will expire between 2003 and 2006 if not utilized.
Note: The Fund's investments in mortgage-backed securities of the Government
National Mortgage Association (GNMA) are interests in separate pools of
mortgages. All separate investments in this issuer which have the same
coupon rate have been aggregated for the purpose of presentation in this
schedule of investments.
Purchases and sales of securities (excluding temporary cash investments)
for the six months ended December 31, 1999 were as follows:
<TABLE>
<S> <C> <C>
Purchases Sales
----------- -----------
Long-term U.S. Government $37,541,110 $53,583,800
Other Long-term Securities 16,654,908 7,401,739
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Bond Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 12/31/99 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (cost $176,988,404) $170,245,899
Cash 311,463
Receivables -
Fund shares sold 780,299
Interest 3,375,482
Other 5,978
------------
Total assets $174,719,121
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 456,755
Dividends 241,833
Due to affiliates 169,764
Accrued expenses 82,797
------------
Total liabilities $ 951,149
------------
NET ASSETS:
Paid-in capital $187,910,327
Accumulated distributions in excess of net investment income (20,556)
Accumulated net realized loss on investments (7,379,294)
Net unrealized loss on investments (6,742,505)
------------
Total net assets $173,767,972
============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $120,786,300/14,036,975 shares) $ 8.60
============
Class B (based on $44,498,438/5,188,110 shares) $ 8.58
============
Class C (based on $8,483,234/990,732 shares) $ 8.56
============
MAXIMUM OFFERING PRICE:
Class A $ 9.01
============
</TABLE>
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
- --------------------------------------------------------------------------------
For the Six Months Ended 12/31/99
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Interest $ 7,035,343
------------
EXPENSES:
Management fees $456,807
Transfer agent fees
Class A 143,256
Class B 73,358
Class C 33,615
Distribution fees
Class A 156,653
Class B 236,861
Class C 50,141
Administrative fees 25,081
Custodian fees 20,368
Registration fees 32,047
Professional fees 59,514
Printing 16,034
Fees and expenses of nonaffiliated trustees 13,984
Miscellaneous 3,192
--------
Total expenses $ 1,320,911
Less fees paid indirectly (16,065)
------------
Net expenses $ 1,304,846
------------
Net investment income $ 5,730,497
------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $ (3,748,938)
Change in net unrealized loss on investments (3,116,250)
------------
Net loss on investments $ (6,865,188)
------------
Net decrease in net assets resulting from operations $ (1,134,691)
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 12/31/99 and Year Ended 6/30/99
<TABLE>
<CAPTION>
Six Months Ended
12/31/99 Year Ended
<S> <C> <C>
FROM OPERATIONS: (unaudited) 6/30/99
Net investment income $ 5,730,497 $ 10,582,259
Net realized gain (loss) on investments (3,748,938) 937,466
Change in net unrealized gain or loss on investments (3,116,250) (10,260,323)
------------ ------------
Net increase (decrease) in net assets resulting from
operations $ (1,134,691) $ 1,259,402
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.29 and $0.56 per share, respectively) $ (4,128,648) $ (7,701,473)
Class B ($0.25 and $0.48 per share, respectively) (1,364,875) (2,283,992)
Class C ($0.24 and $0.48 per share, respectively) (269,648) (599,723)
------------ ------------
Total distributions to shareholders $ (5,763,171) $(10,585,188)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 51,290,248 $220,458,929
Reinvestment of distributions 4,326,362 7,689,631
Cost of shares repurchased (64,622,893) (182,879,191)
------------ ------------
Net increase (decrease) in net assets resulting from
fund share transactions $ (9,006,283) $ 45,269,369
------------ ------------
Net increase (decrease) in net assets $(15,904,145) $ 35,943,583
NET ASSETS:
Beginning of period 189,672,117 153,728,534
------------ ------------
End of period (including (distributions in excess of)/
accumulated undistributed net investment income of
$(20,556) and $12,118, respectively) $173,767,972 $189,672,117
============ ============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CLASS A 12/99 Shares 12/99 Amount 6/99 Shares 6/99 Amount
Shares sold 3,199,925 $ 28,054,121 16,837,950 $157,202,981
Reinvestment of distributions 371,563 3,247,112 638,020 5,941,487
Less shares repurchased (4,021,141) (35,306,950) (15,191,420) (141,713,341)
---------- ------------- ----------- ------------
Net increase (decrease) (449,653) $ (4,005,717) 2,284,550 $ 21,431,127
========== ============= =========== ============
CLASS B
Shares sold 1,109,500 $ 9,701,742 4,694,027 $ 43,795,349
Reinvestment of distributions 104,039 906,547 160,668 1,489,392
Less shares repurchased (1,617,510) (14,127,238) (2,573,656) (23,845,332)
---------- ------------- ----------- ------------
Net increase (decrease) (403,971) $ (3,518,949) 2,281,039 $ 21,439,409
========== ============= =========== ============
CLASS C
Shares sold 1,538,967 $ 13,534,385 2,092,821 $ 19,460,599
Reinvestment of distributions 19,857 172,703 27,934 258,752
Less shares repurchased (1,734,198) (15,188,705) (1,869,099) (17,320,518)
---------- ------------- ----------- ------------
Net increase (decrease) (175,374) $ (1,481,617) 251,656 $ 2,398,833
========== ============= =========== ============
</TABLE>
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
12/31/99 Year Ended
(unaudited) 6/30/99
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 8.94 $ 9.37
------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.29 $ 0.56
Net realized and unrealized gain (loss) on investments (0.34) (0.43)
-------- --------
Net increase (decrease) from investment operations $ (0.05) $ 0.13
Distributions to shareholders:
Net investment income (0.29) (0.56)
-------- --------
Net increase (decrease) in net asset value $ (0.34) $ (0.43)
-------- --------
Net asset value, end of period $ 8.60 $ 8.94
======== ========
Total return* (0.56)% 1.35%
Ratio of net expenses to average net assets 1.17%**+ 1.04%+
Ratio of net investment income to average net assets 6.54%**+ 6.01%+
Portfolio turnover rate 61%** 46%
Net assets, end of period (in thousands) $120,786 $129,487
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.15%** 1.02%
Net investment income 6.56%** 6.03%
</TABLE>
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended
6/30/98 6/30/97 6/30/96 6/30/95
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 9.07 $ 9.08 $ 9.35 $ 9.04
-------- ------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.59 $ 0.63 $ 0.64 $ 0.68
Net realized and unrealized gain (loss) on investments 0.30 (0.01) (0.27) 0.31
-------- ------- -------- --------
Net increase (decrease) from investment operations $ 0.89 $ 0.62 $ 0.37 $ 0.99
Distributions to shareholders:
Net investment income (0.59) (0.63) (0.64) (0.68)
-------- ------- -------- --------
Net increase (decrease) in net asset value $ 0.30 $ (0.01) $ (0.27) $ 0.31
-------- ------- -------- --------
Net asset value, end of period $ 9.37 $ 9.07 $ 9.08 $ 9.35
======== ======= ======== =======
Total return* 10.04% 7.09% 4.02% 11.48%
Ratio of net expenses to average net assets 1.18%+ 1.14%+ 1.19%+ 1.14%
Ratio of net investment income to average net assets 6.34%+ 6.97%+ 6.80%+ 7.55%
Portfolio turnover rate 44% 48% 39% 37%
Net assets, end of period (in thousands) $114,326 $98,310 $101,957 $110,158
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.17% 1.12% 1.18% -
Net investment income 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.
** Annualized.
+ Ratio 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 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
12/31/99 Year Ended
(unaudited) 6/30/99
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 8.91 $ 9.33
------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.25 $ 0.48
Net realized and unrealized gain (loss) on investments (0.33) (0.42)
------- -------
Net increase (decrease) from investment operations $ (0.08) $ 0.06
Distributions to shareholders:
Net investment income (0.25) (0.48)
In excess of net investment income - -
------- -------
Net increase (decrease) in net asset value $ (0.33) $ (0.42)
------- -------
Net asset value, end of period $ 8.58 $ 8.91
======= =======
Total return* (0.86)% 0.57%
Ratio of net expenses to average net assets 2.00%**+ 1.86%+
Ratio of net investment income to average net assets 5.70%**+ 5.18%+
Portfolio turnover rate 61%** 46%
Net assets, end of period (in thousands) $44,498 $49,816
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.98%** 1.83%
Net investment income 5.72%** 5.21%
</TABLE>
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended
6/30/98 6/30/97 6/30/96 6/30/95
<S> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 9.03 $ 9.02 $ 9.31 $ 9.02
------- ------- ------- ------
Increase (decrease) from investment operations:
Net investment income $ 0.51 $ 0.56 $ 0.57 0.60
Net realized and unrealized gain (loss) on investments 0.31 (0.01) (0.28) 0.31
------- ------- ------- ------
Net increase (decrease) from investment operations $ 0.82 $ 0.55 $ 0.29 0.91
Distributions to shareholders:
Net investment income (0.52) (0.54) (0.57) (0.62)
In excess of net investment income - - (0.01) -
------- ------- ------- ------
Net increase (decrease) in net asset value $ 0.30 $ 0.01 $ (0.29) $ 0.29
------- ------- ------- ------
Net asset value, end of period $ 9.33 $ 9.03 $ 9.02 $ 9.31
======= ======= ======= ======
Total return* 9.21% 6.24% 3.15% 10.57%
Ratio of net expenses to average net assets 1.98%+ 1.97%+ 1.96%+ 1.97%
Ratio of net investment income to average net assets 5.52%+ 6.12%+ 6.01%+ 6.60%
Portfolio turnover rate 44% 48% 39% 37%
Net assets, end of period (in thousands) $30,888 $20,104 $14,843 7,338
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.97% 1.96% 1.94% -
Net investment income 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.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 12/31/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
12/31/99 Year Ended Year Ended Year Ended 1/31/96 to
(unaudited) 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 $ 0.24 $ 0.48 $ 0.52 $ 0.54 $ 0.23
Net realized and unrealized gain (loss) on investments (0.33) (0.42) 0.29 - (0.52)
------ ------- ------ ------- ------
Net increase (decrease) from investment operations $(0.09) $ 0.06 $ 0.81 $ 0.54 $(0.29)
Distributions to shareholders:
Net investment income (0.24) (0.48) (0.52) (0.54) (0.22)
In excess of net investment income - - - - (0.01)
------ ------- ------ ------ ------
Net increase (decrease) in net asset value $(0.33) $ (0.42) $ 0.29 $ - $(0.52)
------ ------- ------ ------ ------
Net asset value, end of period $ 8.56 $ 8.89 $ 9.31 $ 9.02 $ 9.02
====== ======= ====== ====== ======
Total return* (1.07)% 0.60% 9.12% 6.13% (3.00)%
Ratio of net expenses to average net assets+ 2.36%** 1.86% 1.90% 2.05% 2.18%**
Ratio of net investment income to average net assets+ 5.34%** 5.17% 5.58% 5.83% 5.79%**
Portfolio turnover rate 61%** 46% 44% 48% 39%
Net assets, end of period (in thousands) $8,483 $10,369 $8,515 $4,588 $ 343
Ratios assuming reduction for fees paid indirectly:
Net expenses 2.33%** 1.83% 1.89% 1.92% 2.13%**
Net investment income 5.37%** 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.
23
<PAGE>
Pioneer Bond Fund
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 12/31/99 (unaudited)
- ------------------------------------------------------------------------------
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 distribution 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 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 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.
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Pioneer Bond Fund
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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.
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 $17,382 in
underwriting commissions on the sale of fund shares for the six months ended
December 31, 1999.
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.
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.
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Pioneer Bond Fund
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NOTES TO FINANCIAL STATEMENTS 12/31/99 (unaudited)
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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 December 31, 1999, $78,608 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 $28,949 in transfer agent fees payable to PSC at December 31,
1999.
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 $62,207
in distribution fees payable to PFD at December 31, 1999.
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 4.00%, 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.
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Pioneer Bond Fund
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For the six months ended December 31, 1999, CDSCs in the amount of $244,301 were
paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the six months ended December 31,
1999, the Fund's expenses were reduced by $16,065 under such arrangements.
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Pioneer Bond Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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<TABLE>
<CAPTION>
Trustees Officers
<S> <C>
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
John W. Kendrick Eric W. Reckard, Treasurer
Marguerite A. Piret Joseph P. Barri, Secretary
David D. Tripple
Stephen K. West
John Winthrop
</TABLE>
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
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
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.
<TABLE>
<CAPTION>
Growth Funds Income Funds
<S> <C>
United States Taxable
Pioneer Capital Growth Fund Pioneer America Income Trust
Pioneer Growth Shares Pioneer Bond Fund
Pioneer Micro-Cap Fund Pioneer Limited Maturity Bond Fund
Pioneer Mid-Cap 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
</TABLE>
*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:
<TABLE>
<S> <C>
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
</TABLE>
This report must be preceded or accompanied by a current Fund prospectus.
[Pioneer Logo]
<TABLE>
<S> <C>
Pioneer Investment Management, Inc.
60 State Street 7315-00-0200
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [Recycle symbol] Printed on Recycled Paper
</TABLE>
