<PAGE>
PIONEER GROWTH SHARES
60 State Street
Boston, MA 02109
OFFICERS
JOHN F. COGAN, JR.
Chairman and President
DAVID D. TRIPPLE
Executive Vice President
WARREN J. ISABELLE
Vice President
WILLIAM H. KEOUGH
Treasurer
JOSEPH P. BARRI
Secretary
INVESTMENT ADVISER
PIONEERING MANAGEMENT CORPORATION
PRINCIPAL UNDERWRITER
PIONEER FUNDS DISTRIBUTOR, INC.
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
INDEPENDENT PUBLIC ACCOUNTANTS
ARTHUR ANDERSEN LLP
TRUSTEES
JOHN F. COGAN, JR.
RICHARD H. EGDAHL, M.D.
MARGARET B. W. GRAHAM
JOHN W. KENDRICK
MARGUERITE A. PIRET
DAVID D. TRIPPLE
STEPHEN K. WEST
JOHN WINTHROP
LEGAL COUNSEL
HALE AND DORR
SHAREHOLDER SERVICES AND TRANSFER AGENT
PIONEERING SERVICES CORPORATION
60 State Street
Boston, Massachusetts
02109
Please call Pioneer for information on:
Existing accounts, new accounts, prospectuses,
applications and service forms............. 1-800-225-6292
Fund yields and prices..................... 1-800-225-4321
Toll-free fax.............................. 1-800-225-4240
Retirement plans........................... 1-800-622-0176
Telecommunications Device for the Deaf
(TDD)...................................... 1-800-225-1997
When distributed to persons who are not shareowners of the Fund, this report
must be accompanied by an official prospectus, which discusses the objectives,
policies, and other information concerning the Fund.
0296-3001
(C)Pioneer Funds Distributor, Inc.
[PIONEER LOGO]
Pioneer
Growth
Shares
ANNUAL REPORT
DECEMBER 31, 1995
<PAGE>
PIONEER GROWTH SHARES
DEAR FELLOW SHAREOWNER,
Pioneer Growth Shares closed its fiscal year on December 31, 1995. It was a
tremendous year in the United States stock market. Lower interest rates, good
growth in corporate earnings and a host of corporate mergers and acquisitions
helped drive the market to new highs. Underneath the overall strong performance,
however, there were wide variations between large-and small-capitalization
stocks and among industry sectors. Generally, large-capitalization stocks saw
the greatest price increases, with technology companies leading the charge.
HOW YOUR FUND PERFORMED
We are pleased to report the following results for the 12 months ended December
31, 1995. For additional performance information, please turn to pages 3 and 4.
CLASS A SHARES
- - The Fund generated a 12-month total return of 29.82% at net asset value and
22.36% at maximum public offering price. Total return reflects the change in
share price, assuming the reinvestment of all distributions at net asset
value.
- - Net asset value rose to $10.12 per share as of December 31, 1995, from $8.85
on December 31, 1994.
- - Shareowners received a total of $0.025 per share in income dividends, $1.096
per share in short-term capital gains distributions and $0.218 per share in
long-term capital gains distributions.
CLASS B SHARES
- - Class B shares were introduced to Pioneer Growth Shares on April 28, 1995.
From that date through December 31, the Fund generated a total return of
18.26%, assuming shares were held for the entire period. If shares were sold
and the contingent deferred sales charge paid at the end of the period, total
return would have been 14.26%. Total return reflects the change in share
price, assuming the reinvestment of all distributions.
- - Net asset value was $10.07 per share at December 31, 1995, versus $9.68 on
April 28.
- - Shareowners received a total of $0.033 per share in income dividends, $1.096
per share in short-term capital gains distributions and $0.218 per share in
long-term capital gains distributions.
The broad-based, unmanaged Standard & Poor's 500 Index posted a total return of
37.45% over the full year, and 21.88% from the time Class B shares were
introduced, reflecting the high-flying performance of large-capitalization
technology stocks.
TECHNOLOGY STOCKS LED THE STOCK MARKET TO NEW HIGHS
Popular, large-capitalization companies were the biggest beneficiaries of the
low inflation, slow economic growth and falling interest rates that existed
throughout 1995. Although stocks were volatile at times, results for many
large-sized companies were impressive. In fact, on November 21, the unmanaged
Dow Jones Industrial Average of 30 large-capitalization companies reached -- and
then moved beyond -- the 5000 mark for the first time.
In addition to large companies, technology issues of all sizes were particularly
strong. These companies benefited from Wall Street's obsession for the sector as
a group -- even newly public companies. Many stocks experienced significant
price appreciation, regardless of whether such results were warranted. In our
view, the fundamentals of many of these companies did not justify their lofty
stock prices and therefore were not added to your Fund's portfolio.
HOW WE MANAGED YOUR INVESTMENT
The companies we did select within the technology arena were those our research
showed to be well-managed with strong presence in growing markets, in keeping
with our search for growth at the right price. The Fund's technology stocks
represented companies of various sizes, involved with a range of undertakings.
Examples include IBM, SoftKey International and Samsung. As a group, the Fund's
technology holdings performed well and were the major contributor to the Fund's
strong performance through the first three quarters of the fiscal year. In the
fourth quarter, investors' love affair with technology companies ended, causing
stock prices to drop sharply across the sector.
We took gains in the fourth quarter where we believed the Fund had already seen
the full value of the stock. By the end of the
<PAGE>
year, we had sold Leitch Technology and System Software Associates and reduced
holdings in Safeguard Scientific. We held other companies we liked, even though
their stock prices dipped. Included in this group were Adaptec and Vishay
Intertechnology. As of December 31, technology stocks accounted for 31% of the
portfolio.
Financial stocks, 16% of the portfolio on December 31, performed well as
interest rates dropped. In fact, financials were among the best performers in
1995, particularly in the fourth quarter, picking up where technology stocks
left off. As of December 31, the Fund owned a variety of financial stocks,
including Federal National Mortgage Association (FNMA) and Student Loan
Marketing Association (Sallie Mae). Other interest rate-sensitive stocks such as
utilities also did well, including Columbia Gas Systems.
Less satisfying was the performance of some of the Fund's retail holdings. While
we continued to like the long-term prospects and valuations of individual
holdings, the sector as a group was punished by weak sales and diffident
consumer spending. Selected retailers, such as Tandy remained in the Fund at
year-end.
The accompanying chart shows the Fund's sector distribution at the close of the
fiscal year.
SECTOR DISTRIBUTION
(Percentage of equity investments as of December 31, 1995)
(INSERT PIE CHART)
Basic Industries 3%
Consumer Non-Durables 9
Utilities 11
Capital Goods 12
Financials 16
Services 18
Technology 31
LOOKING AHEAD
Financial markets moved up at a record-setting pace in 1995. Naturally, such
upward momentum cannot be sustained forever; the market will inevitably
experience some fluctuation in value. Rather than speculate on market movements
or try to predict the direction of the economy or interest rates, our approach
concentrates on identifying stocks and companies we believe offer growth at the
right price.
As always, we will continue to carefully select and hold companies with solid
long-term prospects, just as we will eliminate those that achieve our target
price or undergo a fundamental change we believe reduces their potential return.
Even though there may be occasional changes in the personnel involved with the
Fund's management, as happened this year, our basic philosophy remains
unchanged: We expect independent research and a focus on long-term growth will
bring shareowners strong rewards over time.
The following pages include the audited Schedule of Investments and financial
statements as of December 31, 1995. If you have any questions about your
investment in Pioneer Growth Shares, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Thank you for your support.
Respectfully,
/s/ John F. Cogan, Jr.
- ----------------------
John F. Cogan, Jr.
Chairman and President,
Pioneer Growth Shares
2
<PAGE>
GROWTH OF A $10,000 INVESTMENT*
The following chart shows the growth of a $10,000 investment made in Pioneer
Growth Shares Class A shares at public offering price on December 31, 1985,
compared to the growth of the Standard & Poor's 500 Index.
PIONEER GROWTH SHARES CLASS A:
Average Annual Total Returns
(as of December 31, 1995)
Net Asset Public Offering
Value Price*
-------- ---------------
Life of Fund
(5/17/68) 8.59% 8.35%
10 Years 14.28% 13.60%
Five Years 17.66% 16.28%
One Year 29.82% 22.36%
[graph]
Pioneer Growth Shares A S&P 500
1/1/86 9,425 10,000
11,710 12,074
12/31/86 10,917 11,862
13,150 15,109
12/31/87 10,542 12,476
12,408 14,059
12/31/88 12,967 14,534
15,196 16,933
12/31/89 17,328 19,125
20,600 19,708
12/31/90 15,877 18,530
19,379 21,165
12/31/91 25,780 24,151
21,179 23,992
12/31/92 26,095 25,988
26,431 27,248
12/31/93 28,317 28,596
23,108 27,639
12/31/94 27,582 28,984
31,789 34,823
12/31/95 35,807 39,837
The Standard & Poor's (S&P) 500 Index is an unmanaged, capitalization-weighted
measure of 500 widely held common stocks listed on the New York Stock
Exchange, American Stock Exchange and the Over-the-Counter market. Index
returns assume reinvestment of dividends and, unlike Fund returns, do not
reflect any sales charges, fees or expenses. You cannot invest directly in the
Index.
- ---------------
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
Past performance does not guarantee future results. Return and principal
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
3
<PAGE>
GROWTH OF A $10,000 INVESTMENT*
The following chart shows the growth of a $10,000 investment made in Pioneer
Growth Shares Class B shares on April 28, 1995, compared to the growth of the
Standard & Poor's 500 Index.
PIONEER GROWTH SHARES CLASS B:
Average Annual Total Returns
(as of December 31, 1995)
Life of Fund
(4/28/95)
------------
If Held 18.26%
If Redeemed* 14.26%
[graph]
Pioneer Growth Shares B S&P 500
4/28/95 10,000 10,000
10,258 10,363
6/30/95 10,537 10,654
11,333 10,992
11,818 10,989
9/30/95 12,335 11,498
11,591 11,440
11,890 11,910
12/31/95 11,426 12,188
The Standard & Poor's (S&P) 500 Index is an unmanaged, capitalization-weighted
measure of 500 widely held common stocks listed on the New York Stock
Exchange, American Stock Exchange and the Over-the-Counter market. Index
returns assume reinvestment of dividends and, unlike Fund returns, do not
reflect any sales charges, fees or expenses. You cannot invest directly in the
Index.
- ---------------
* Reflects deduction of the maximum 4.0% contingent deferred sales charge at the
end of the period and assumes reinvestment of distributions.
Past performance does not guarantee future results. Return and principal will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
4
<PAGE>
PIONEER GROWTH SHARES
SCHEDULE OF INVESTMENTS
December 31, 1995
<TABLE>
<CAPTION>
Shares Value
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- 85.0%
BASIC INDUSTRIES -- 2.4%
CHEMICALS -- 1.5%
157,300 Crompton & Knowles Corp. ............................................................. $ 2,084,225
386,000 Uniroyal Technology Corp.*............................................................ 1,351,000
-----------
$ 3,435,225
-----------
METALS & MINING -- 0.9%
110,000 Ashanti Goldfields Co., Ltd. (G.D.R.) 144A............................................ $ 2,227,500
-----------
TOTAL BASIC INDUSTRIES................................................................. $ 5,662,725
-----------
CAPITAL GOODS -- 10.4%
AGRICULTURAL -- 1.5%
66,100 AGCO Corporation...................................................................... $ 3,371,100
-----------
PRODUCER GOODS -- 1.4%
170,000 Acme-Cleveland Corp. ................................................................. $ 3,187,500
-----------
TELECOMMUNICATIONS SERVICES & EQUIPMENT -- 7.5%
462,900 American Paging, Inc.*................................................................ $ 2,950,988
165,000 Airtouch Communications, Inc.*........................................................ 4,661,250
130,000 Centennial Cellular Corp.*............................................................ 2,226,250
180,000 ECI Telecommunications Ltd. .......................................................... 4,106,250
60,000 L.M. Ericsson Telephone Co. (A.D.R.).................................................. 1,170,000
14,500 Gilbert Associates, Inc. (Class A).................................................... 181,250
25,000 Korea Mobile Telecommunication Corp. (G.D.S.) 144A*................................... 1,106,250
25,000 Korea Mobile Telecommunication Corp. (G.D.S.)......................................... 1,106,250
-----------
$17,508,488
-----------
TOTAL CAPITAL GOODS.................................................................... $24,067,088
-----------
CONSUMER NON-DURABLES -- 7.4%
HOME PRODUCTS -- 2.5%
154,500 Catalina Lighting, Inc.*.............................................................. $ 753,187
150,000 Duracraft Corp.*...................................................................... 3,768,750
95,000 Sunbeam Corporation, Inc. ............................................................ 1,448,750
-----------
$ 5,970,687
-----------
RETAIL -- FOOD AND BEVERAGES -- 2.0%
112,600 Buenos Aires Embotelladora S.A. (A.D.R.).............................................. $ 2,322,375
60,000 Kroger Co.*........................................................................... 2,250,000
-----------
$ 4,572,375
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
PIONEER GROWTH SHARES
SCHEDULE OF INVESTMENTS
December 31, 1995 (Continued)
<TABLE>
<CAPTION>
Shares Value
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL NON-FOOD -- 2.9%
125,200 Best Products Corp., Inc.*............................................................ $ 594,700
265,000 Campo Electronics, Appliances & Computers, Inc.*...................................... 795,000
100,000 Tandy Corp. .......................................................................... 4,150,000
50,000 Toys "R" Us, Inc.*.................................................................... 1,087,500
-----------
$ 6,627,200
------------
TOTAL CONSUMER NON-DURABLES............................................................ $17,170,262
-----------
FINANCIAL -- 13.3%
INSURANCE -- GENERAL -- 3.3%
98,389 Financial Security Assurance Holdings Ltd. ........................................... $ 2,447,426
97,500 Mid Atlantic Medical Services, Inc.*.................................................. 2,364,375
181,200 Western National Corp. ............................................................... 2,921,850
-----------
$ 7,733,651
-----------
COMMERCIAL BANKS & SAVINGS & LOAN -- 8.3%
20,000 Bank of Boston Corp. ................................................................. $ 925,000
308,600 First Republic Bancorp, Inc.*......................................................... 4,050,375
65,900 First Union Corp. .................................................................... 3,665,688
80,000 Mellon Bank Corp. .................................................................... 4,300,000
140,300 New York Bancorp, Inc. ............................................................... 3,156,750
99,200 PNC Bank Corp. ....................................................................... 3,199,200
-----------
$19,297,013
-----------
FINANCE -- MISCELLANEOUS -- 1.7%
20,000 Federal National Mortgage Association................................................. $ 2,482,500
20,000 Student Loan Marketing Association.................................................... 1,317,500
-----------
$ 3,800,000
-----------
TOTAL FINANCIAL........................................................................ $30,830,664
-----------
SERVICES -- 15.3%
BROADCASTING & MEDIA -- 3.5%
122,400 Carmike Cinemas, Inc. (Class A)*...................................................... $ 2,754,000
39,435 Gaylord Entertainment Co. ............................................................ 1,094,321
130,000 National Media*....................................................................... 2,730,000
31,827 Viacom, Inc. (Class B)*............................................................... 1,507,804
-----------
$ 8,086,125
-----------
ENVIRONMENTAL CONTROL -- 1.8%
75,000 Browning-Ferris Industries, Inc. ..................................................... $ 2,212,500
561,900 Mid-American Waste Systems*........................................................... 1,966,650
-----------
$ 4,179,150
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
PIONEER GROWTH SHARES
SCHEDULE OF INVESTMENTS
December 31, 1995 (Continued)
<TABLE>
<CAPTION>
Shares Value
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
HEALTH SERVICES & PERSONAL CARE -- 5.0%
25,000 Foundation Health Corp.*.............................................................. $ 1,075,000
110,000 HEALTHSOUTH Corp.*.................................................................... 3,203,750
70,400 Horizon/CMS Healthcare Corp.*......................................................... 1,777,600
69,000 Lincare Holdings Inc.*................................................................ 1,725,000
100,400 Pediatrix Medical Group, Inc.*........................................................ 2,761,000
50,000 Summit Care Corp.*.................................................................... 1,143,750
-----------
$11,686,100
-----------
PHARMACEUTICALS -- 1.4%
40,000 Cardinal Health, Inc. ................................................................ $ 2,190,000
92,050 Ligand Pharmaceutical, Inc. (Class B)*................................................ 989,538
-----------
$ 3,179,538
-----------
MISCELLANEOUS SERVICES -- 3.6%
221,800 Ideon Group, Inc. .................................................................... $ 2,245,725
110,000 Personnel Group of America, Inc.*..................................................... 1,608,750
103,700 Service Corporation International..................................................... 4,562,800
-----------
$ 8,417,275
-----------
TOTAL SERVICES......................................................................... $35,548,188
-----------
TECHNOLOGY -- 26.5%
COMPUTER COMMUNICATION EQUIPMENT -- 0.7%
75,000 Symantec Corp.*....................................................................... $ 1,743,750
-----------
COMPUTERS -- 8.9%
40,000 Adaptec, Inc.*........................................................................ $ 1,640,000
282,100 Amtech Corp. ......................................................................... 1,445,762
70,000 3COM Corp.*........................................................................... 3,263,750
140,100 EMC Corp.*............................................................................ 2,154,037
50,000 International Business Machines Corp. ................................................ 4,587,500
81,000 Norand Corp.*......................................................................... 951,750
74,200 Safeguard Scientific, Inc.*........................................................... 3,672,900
80,000 Silicon Graphics, Inc.*............................................................... 2,200,000
20,000 Stratus Computers, Inc.*.............................................................. 692,500
-----------
$20,608,199
-----------
COMPUTER SOFTWARE/SERVICES -- 3.6%
30,000 Compuware Corp.*...................................................................... $ 555,000
205,000 Meridian Data, Inc.*.................................................................. 2,229,375
120,000 MICOM Communications Corp.*........................................................... 915,000
180,000 Microtec Research, Inc.*.............................................................. 2,227,500
252,500 TGV Software, Inc.*................................................................... 2,398,750
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
PIONEER GROWTH SHARES
SCHEDULE OF INVESTMENTS
December 31, 1995 (Continued)
<TABLE>
<CAPTION>
Shares Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONICS -- 13.3%
168,000 AFC Cable Systems*.................................................................... $ 2,310,000
30,700 Arrow Electronics, Inc.*.............................................................. 1,323,937
90,000 AVX Corp. ............................................................................ 2,385,000
64,950 Harman International Industries, Inc. ................................................ 2,606,119
60,000 Intel Corp. .......................................................................... 3,405,000
75,300 Marshall Industries*.................................................................. 2,419,013
130,000 Mentor Graphics Corp.*................................................................ 2,372,500
120,000 Nokia Corp. (A.D.R.).................................................................. 4,665,000
594 Samsung Electronics Co., Ltd. (G.D.R.)*............................................... 58,212
49,440 Samsung Electronics Co., Ltd. (G.D.S.)................................................ 2,879,880
91,000 Symbol Technologies, Inc.*............................................................ 3,594,500
90,000 Vishay Intertechnology, Inc.*......................................................... 2,835,000
------------
$ 30,854,161
------------
TOTAL TECHNOLOGY....................................................................... $ 61,531,735
------------
TRANSPORTATION -- 0.1%
RAILROAD AND BUS -- 0.1%
17,000 Canadian National Railway Co.+*....................................................... $ 255,000
------------
TOTAL TRANSPORTATION................................................................... $ 255,000
------------
UTILITIES -- 9.6%
TELECOMMUNICATIONS -- 3.6%
50,000 AT&T Corp. ........................................................................... $ 3,237,500
65,000 ProNet, Inc. ......................................................................... 1,917,500
90,000 DSC Communications Corp.*............................................................. 3,318,750
------------
$ 8,473,750
------------
ELECTRIC -- 1.5%
190,000 SCEcorp. ............................................................................. $ 3,372,500
------------
OIL/GAS -- 4.5%
100,000 Columbia Gas Systems, Inc.*........................................................... $ 4,387,500
37,300 Newpark Resources, Inc.*.............................................................. 829,925
80,400 Ultramar Corp. ....................................................................... 2,070,300
150,900 YPF S.A. (Sponsored A.D.R.)........................................................... 3,263,213
------------
$ 10,550,938
------------
TOTAL UTILITIES........................................................................ $ 22,397,188
------------
TOTAL COMMON STOCKS (Cost $183,737,836)(a)............................................. $197,462,850
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
PIONEER GROWTH SHARES
SCHEDULE OF INVESTMENTS
December 31, 1995 (Continued)
<TABLE>
<CAPTION>
Principal
Amount Value
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TEMPORARY CASH INVESTMENTS -- 15.0%
$6,994,000 American Express, 5.60%, 01/02/96..................................................... $ 7,005,990
5,183,000 American General, 5.83%, 01/08/96..................................................... 5,186,364
3,753,000 Commercial Credit Corp., 5.80%, 01/04/96.............................................. 3,756,633
3,902,000 Ford Motor Credit Co., 5.92%, 01/05/96................................................ 3,905,213
5,490,000 Household Finance Corp., 5.70%, 01/02/96.............................................. 5,492,609
9,393,000 Norwest Financial Corp., 5.70%, 01/03/96.............................................. 9,407,901
------------
TOTAL TEMPORARY CASH INVESTMENTS (Cost $34,715,000).................................... $ 34,754,710
------------
TOTAL INVESTMENT IN SECURITIES -- 100% (Cost $218,452,836)............................. $232,217,560
============
</TABLE>
* Non-income producing security.
144A Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31,
1995, the value of these securities amounted to $3,333,750 or 1.45% of
total net assets.
+ Partly paid security -- additional subscription payment of C$10.75 per
share will be required on November 28, 1996.
(a) At December 31, 1995, the net unrealized gain on investments based on
cost for federal income tax purposes of $184,288,543 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which there is an excess of value over
tax cost..................................................................................... $ 27,974,128
Aggregate gross unrealized loss for all investments in which there is an excess of tax cost
over value................................................................................... (14,799,821)
------------
Net unrealized gain.......................................................................... $ 13,174,307
============
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for the
year ended December 31, 1995 aggregated $280,873,711 and $244,650,371,
respectively.
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
PIONEER GROWTH SHARES
BALANCE SHEET
December 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(including temporary cash investments of
$34,754,710) (cost $218,452,836; see
Schedule of Investments and Note 1)..... $232,217,560
Receivables -
Investment securities sold.............. 1,426,819
Trust shares sold....................... 1,191,651
Dividends............................... 60,209
Other..................................... 10,313
------------
Total assets.......................... $234,906,552
------------
LIABILITIES:
Payables -
Investment securities purchased......... $ 2,404,791
Trust shares repurchased................ 1,834,869
Due to bank............................. 779,333
Dividends............................... 23,671
Due to affiliates (Note 2, 3 and 4)..... 234,804
Accrued expenses.......................... 46,492
------------
Total liabilities..................... $ 5,323,960
------------
NET ASSETS:
Paid-in capital (Note 1).................. $209,207,529
Accumulated undistributed net investment
income.................................. 11,384
Accumulated net realized gain on
investments............................. 6,638,665
Net unrealized gain on investments........ 13,725,014
------------
Total net assets...................... $229,582,592
============
NET ASSET VALUE PER SHARE:
Class A - (based on $215,563,801/
21,293,756 shares of beneficial interest
outstanding - unlimited number of shares
authorized with $0.01 par value)........ $ 10.12
============
Class B - (based on $14,018,791/
1,391,478 shares of beneficial interest
outstanding - unlimited number of shares
authorized with $0.01 par value)........ $ 10.07
============
MAXIMUM OFFERING PRICE:
Class A................................... $ 10.74
============
</TABLE>
PIONEER GROWTH SHARES
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME (NOTE 1):
Dividends (net of foreign taxes withheld
of $15,495)............................ $ 1,322,660
Interest................................. 1,379,646
-----------
Total investment income: .............. $ 2,702,306
-----------
EXPENSES:
Management fees (Note 2)................. $ 876,379
Transfer agent fees (Note 3)
Class A................................ 544,268
Class B................................ 12,154
Distribution fees (Note 4)
Class A................................ 435,094
Class B................................ 41,137
Registration fees........................ 61,403
Custodian fees........................... 48,897
Professional fees........................ 48,009
Accounting (Note 2)...................... 74,776
Printing................................. 25,997
Fees and expenses of nonaffiliated
trustees............................... 24,725
Miscellaneous............................ 25,188
-----------
Total expenses......................... $ 2,218,027
Less fees paid indirectly (Note 5)... (37,345)
-----------
Net expenses......................... $ 2,180,682
-----------
Net investment income................ $ 521,624
-----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS:
Net realized gain on investments (Note
1)..................................... $32,890,594
Change in net unrealized gain on
investments............................ 8,653,487
-----------
Net gain on investments................ $41,544,081
-----------
Net increase in net assets resulting
from operations.................... $42,065,705
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
PIONEER GROWTH SHARES
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
------------- ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income (loss).................................................. $ 521,624 $ (667,105)
Net realized gain on investments.............................................. 32,890,594 35,749,924
Change in net unrealized gain on investments.................................. 8,653,487 (38,345,452)
------------- ------------
Net increase (decrease) in net assets resulting from operations............. $ 42,065,705 $ (3,262,633)
------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A ($0.03 and $0.00 per share, respectively)........................... $ (471,206) $ --
Class B ($0.03 and $0.00 per share, respectively)........................... (39,034) --
From net realized gain
Class A ($1.31 and $3.32 per share, respectively)........................... (24,674,561) (35,944,529)
Class B ($1.31 and $0.00 per share, respectively)........................... (1,564,089) --
In excess of net realized gain on investments
Class A ($0.00 and $0.00 per share, respectively)........................... -- (13,279)
From paid-in capital
Class A ($0.00 and $0.01 per share, respectively)........................... -- (68,570)
------------- ------------
Decrease in net assets resulting from distributions to shareholders......... $ (26,748,890) $(36,026,378)
------------- ------------
FROM TRUST SHARE TRANSACTIONS:
Net proceeds from sale of shares.............................................. $ 234,292,684 $ 78,254,892
Net asset value of shares issued to shareholders in reinvestment of
dividends................................................................... 26,141,112 35,592,494
Cost of shares repurchased.................................................... (178,643,781) (76,628,846)
------------- ------------
Increase in net assets resulting from trust share transactions.............. $ 81,790,015 $ 37,218,540
------------- ------------
Net increase (decrease) in net assets....................................... $ 97,106,830 $ (2,070,471)
NET ASSETS:
Beginning of year............................................................. 132,475,762 134,546,233
------------- ------------
End of year (including accumulated undistributed net investment income of
$11,384 and $0, respectively)............................................... $ 229,582,592 $132,475,762
============= ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
PIONEER GROWTH SHARES
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended December 31, 1995 and 1994 (Continued)
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1995 December 31, 1994
---------------------------- ---------------------------
Shares Amount Shares Amount
----------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold....................................... 21,037,128 $ 218,781,090 6,842,309 $ 78,254,892
Shares issued to shareholders in reinvestment of
distributions................................... 2,487,284 24,625,337 4,152,601 35,592,494
Less shares repurchased........................... (17,195,620) (177,014,019) (6,692,293) (76,628,846)
----------- ------------- ----------- ------------
Net increase.................................... 6,328,792 $ 66,392,408 4,302,617 $ 37,218,540
=========== ============= =========== ============
CLASS B*
Shares sold....................................... 1,382,346 $ 15,511,594
Shares issued to shareholders in reinvestment of
distributions................................... 153,886 1,515,775
Less shares repurchased........................... (144,754) (1,629,762)
----------- -------------
Net increase.................................... 1,391,478 $ 15,397,607
=========== =============
</TABLE>
* Class B shares were first publicly offered on April 28, 1995.
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
PIONEER GROWTH SHARES
FINANCIAL HIGHLIGHTS -- SELECTED DATA FOR A SHARE OUTSTANDING
For the Periods Presented
<TABLE>
<CAPTION>
For the Years Ended December 31,
------------------------------------------------------------------------
1995 1994 1993+ 1992 1991 1990
-------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year................ $ 8.85 $ 12.62 $ 12.42 $ 12.27 $ 7.57 $ 8.95
-------- -------- -------- -------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss)..................... $ 0.03 $ (0.06) $ (0.07) $ -- $ 0.02 $ 0.08
Net realized and unrealized gain (loss)
on investments................................. 2.58 (0.38) 1.10 0.15 4.70 (0.83)
-------- -------- -------- -------- ------- -------
Total increase (decrease) from
investment operations......................... $ 2.61 $ (0.44) $ 1.03 $ 0.15 $ 4.72 $ (0.75)
Distribution to shareholders:
From net investment income....................... (0.03) -- -- -- -- (0.08)
From net realized gain........................... (1.31) (3.32) (0.83) -- -- (0.55)
In excess of net investment income............... -- -- -- -- (0.02) --
From paid-in capital............................. -- (.01) -- -- -- --
-------- -------- -------- -------- ------- -------
Net increase (decrease) in net asset value..... $ 1.27 $ (3.77) $ 0.20 $ 0.15 $ 4.70 $ (1.38)
-------- -------- -------- -------- ------- -------
Net asset value, end of year...................... $ 10.12 $ 8.85 $ 12.62 $ 12.42 $ 12.27 $ 7.57
======== ======== ======== ======== ======= =======
Total return*..................................... 29.82% (2.60)% 8.52% 1.22% 62.37% (8.37)%
Ratio of net operating expenses to average
net assets..................................... 1.23%++ 1.46% 1.20% 1.15% 1.22% 1.29%
Ratio of net investment income (loss) to average
net assets..................................... 0.28%++ (0.53)% (0.60)% 0.00% 0.14% 0.89%
Portfolio turnover rate........................... 158% 161% 29% 25% 27% 44%
Net assets, end of period (in thousands).......... $215,564 $132,476 $134,546 $120,847 $91,464 $52,322
Ratios assuming no waiver of fees
or assumption of expenses:
Net operating expenses......................... -- -- 1.21% 1.25% 1.28% --
Net investment income (loss)................... -- -- (0.62)% 0.10% 0.08% --
Ratios assuming reduction for fees
paid indirectly:
Net operating expenses......................... 1.21% -- -- -- -- --
Net investment income.......................... 0.30% -- -- -- -- --
<CAPTION>
1989 1988 1987 1986
------- ------- ------- -------
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year................ $ 7.39 $ 6.27 $ 7.09 $ 6.56
------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss)..................... $ 0.08 $ 0.06 $ 0.07 $ 0.10
Net realized and unrealized gain (loss)
on investments................................. 2.370 1.37 (0.31) 0.95
------- ------- ------- -------
Total increase (decrease) from
investment operations......................... $ 2.45 $ 1.43 $ (0.24) $ 1.05
Distribution to shareholders:
From net investment income....................... (0.08) (0.06) (0.07) (0.10)
From net realized gain........................... (0.81) (0.25) (0.51) (0.42)
In excess of net investment income............... -- -- -- --
From paid-in capital............................. -- -- -- --
------- ------- ------- -------
Net increase (decrease) in net asset value..... $ 1.56 $ 1.12 $ (0.82) $ 0.53
------- ------- ------- -------
Net asset value, end of year...................... $ 8.95 $ 7.39 $ 6.27 $ 7.09
======= ======= ======= =======
Total return*..................................... 33.63% 23.01% (3.44)% 15.83%
Ratio of net operating expenses to average
net assets..................................... 1.11% 1.24% 1.11% 1.11%
Ratio of net investment income (loss) to average
net assets..................................... 0.91% 0.88% 0.82% 1.28%
Portfolio turnover rate........................... 58% 48% 51% 45%
Net assets, end of period (in thousands).......... $48,904 $39,231 $36,578 $32,953
Ratios assuming no waiver of fees
or assumption of expenses:
Net operating expenses......................... -- -- -- --
Net investment income (loss)................... -- -- -- --
Ratios assuming reduction for fees
paid indirectly:
Net operating expenses......................... -- -- -- --
Net investment income.......................... -- -- -- --
</TABLE>
+ Prior to the assumption of the management agreement on December 1, 1993 by
Pioneering Management Corporation, the Fund was advised by Mutual of Omaha
++ Ratios assuming no reduction for fees paid indirectly.
* 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.
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
PIONEER GROWTH SHARES
FINANCIAL HIGHLIGHTS -- SELECTED DATA FOR A SHARE OUTSTANDING
For the Periods Presented (Continued)
<TABLE>
<CAPTION>
April 28, 1995
to
December 31, 1995
-----------------
<S> <C>
CLASS B***
Net asset value, beginning of period....... $ 9.68
-------
Increase from investment operations:
Net investment income..................... $ --
Net realized and unrealized gain
on investments.......................... 1.73
-------
Total increase from investment
operations............................. $ 1.73
Distribution to shareholders from:
Net investment income..................... (0.03)
Net realized gain......................... (1.31)
-------
Net increase in net asset value........... $ 0.39
-------
Net asset value, end of period............. $ 10.07
=======
Total return*.............................. 18.26%
Ratio of net operating expenses to average
net assets................................ 1.90%**++
Ratio of net investment loss to average
net assets................................ (0.25)%**++
Portfolio turnover rate.................... 158%
Net assets, end of period.................. $14,019
Ratios assuming reduction for fees paid
indirectly:
Net operating expenses.................... 1.84%**
Net investment loss....................... (0.19)%**
</TABLE>
++ Ratios assuming no reduction for fees paid indirectly.
* 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.
*** Class B shares were first publicly offered on April 28, 1995.
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
PIONEER GROWTH SHARES
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
1. Pioneer Growth Shares (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 appreciation
of capital through investments in common stocks, together with preferred stocks,
bonds, and debentures which are convertible into common stocks.
The Board of Trustees (the Trustees) has authorized the issuance of two share
classes of the Fund, designated as Class A and Class B shares. Class B shares
were publicly offered on April 28, 1995. Shares issued and outstanding prior to
April 28, 1995 were designated as Class A shares. The shares of each class
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 and Class B 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.
Each day, securities are valued at the last sale price on the principal exchange
where they are traded. Securities that have not traded on the date of valuation,
or securities for which sale prices are not generally reported, are valued at
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available are valued at their fair values as
determined by, or under the direction of, the Trustees. Temporary cash
investments are valued at amortized cost plus accrued interest, which
approximates value. Dividend income is recorded on the ex-dividend date and
interest income is recorded on the accrual basis.
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.
Settlements from litigation and class action suits are recognized when the
Fund acquires an enforceable right to such awards. These settlements are
included in other income to the extent that they are not identifiable with
realized or unrealized losses. Included in net realized gain on investments is
$24,692 of class action settlements received by the Fund during the year ended
December 31, 1995.
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 net investment income and net realized
capital gains, if any, to its shareholders. Therefore, no federal tax provision
is required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with 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 capital, depending on the type of
book/tax differences that may exist.
C. Trust Shares -- The Fund records sales and repurchases of its trust shares
on trade date. Net losses, if any, as a result of cancellations are absorbed by
Pioneer Funds Distributor, Inc.
15
<PAGE>
PIONEER GROWTH SHARES
NOTES TO FINANCIAL STATEMENTS
December 31, 1995 (Continued)
(PFD), the principal underwriter for the Fund and an indirect subsidiary of The
Pioneer Group, Inc. (PGI). PFD earned $152,621 in underwriting commissions on
the sale of trust shares during the year ended December 31, 1995. Distributions
to shareholders are recorded as of the ex-dividend date. Distributions paid by
the Fund, if any, with respect to each class of shares are calculated in the
same manner, at the same time, on the same day and in the same amount, except
that Class A and Class B shares bear different transfer agent and distribution
fees.
D. Class Allocations -- Distribution fees are calculated based on the average
daily net asset value attributable to Class A and Class B shares of the Fund,
respectively. Shareholders of Class A and Class B share all expenses and fees
paid to the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on number of accounts in each class and the
ratable allocation of related out-of-pocket expenses (see Note 3). Income,
common expenses and realized and unrealized gains and losses are calculated at
the Fund level and allocated daily to each class of shares based on the
respective percentage of adjusted net assets at the beginning of the day.
2. Pioneering Management Corporation (PMC), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned subsidiary of PGI. Management
fees are calculated daily at the annual rate of 0.50% of the Fund's average
daily net assets up to $250 million; 0.48% of the next $50 million; and 0.45% of
excess over $300 million.
Prior to December 1, 1995, management fees were calculated at annual rates of
0.50% of average daily net assets up to $100 million; 0.48% of the next $100
million; 0.46% of the next $100 million; 0.44% of the next $100 million; 0.42%
of the next $100 million; and 0.40% of the excess over $500 million.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. Included in due to affiliates is $15,699 and $6,095 in management and
accounting fees, respectively, payable to PMC at December 31, 1995.
3. 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 $65,582 in transfer agent fees payable to PSC at December 31,
1995.
4. The Fund adopted a Plan of Distribution for Class A shares (Class A Plan) and
Class B shares (Class B Plan) in accordance with Rule 12b-1 of the Investment
Company Act of 1940. These plans allow for Class A shares and Class B shares to
reimburse and compensate PFD for providing varying levels of distribution
services and other account maintenance services. The Class A Plan and Class B
Plan provide for reimbursement of PFD's distribution services in an amount up to
0.25% and 0.75%, respectively, of the average daily net assets of the respective
classes of shares. The Fund may also compensate PFD for additional services in
an amount up to 0.25% of the Fund's average daily net assets attributable to
Class B shares. Included in due to affiliates is $147,428 in distribution fees
payable to PFD at December 31, 1995.
In addition, Class B shares that are redeemed within six years of purchase are
subject to a contingent deferred sales charge (CDSC) at declining rates
beginning at 4.0% based on the lower of cost or market value of shares being
redeemed. Proceeds from the CDSC are paid to PFD. For the year ended December
31, 1995, CDSC in the amount of $2,023 was paid to PFD.
5. The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the year ended December 31, 1995,
the Fund's expenses were reduced by $37,345 under such arrangements.
16
<PAGE>
PIONEER GROWTH SHARES
TAX TREATMENT OF DISTRIBUTIONS MADE DURING THE YEAR ENDED DECEMBER 31, 1995
During the fiscal year ended December 31, 1995, the Fund paid the following
distributions:
<TABLE>
<CAPTION>
Distributions Per Share
---------------------------------------------------
From Net Investment Income From Net Realized Gain
To Shareholders --------------------------- ----------------------
of Record Payment Date Class A Class B Short-term Long-term
- ------------------ ------------------ ------- ------- ---------- ---------
<S> <C> <C> <C> <C> <C>
December 20, 1995 December 28, 1995 $0.0251 $0.0328 $1.0962 $0.2181
</TABLE>
On a per share basis, the distributions to Class A shareholders from net
realized gain include $0.2181, which should be reported as long-term capital
gain. The remaining $1.0962 should be combined with the $0.0251 distribution
from net investment income for a total of $1.1213, which represents ordinary
income.
On a per share basis, the distributions to Class B shareholders from net
realized gain include $0.2181, which should be reported as long-term capital
gain. The remaining $1.0962 should be combined with the $0.0328 distribution
from net investment income for a total of $1.129, which represents ordinary
income.
Corporate shareholders may deduct up to 70% of qualifying dividends received
during the year. For purposes of computing the exclusion, 5% of distributions
from net investment income represents qualifying dividends.
Shareholders who elected to take the Capital Gain Distribution in additional
shares of the Fund should report the distribution as explained above. The tax
cost of the shares received is $9.90 and $9.85 per share for Class A and Class B
shares, respectively.
The Fund hereby designates $6,820,196 as a capital gain dividend for the
purposes of the dividend paid deduction.
17
<PAGE>
TRUSTEES' FEES, PRINCIPAL SHAREHOLDERS AND SHARE OWNERSHIP OF TRUSTEES AND
OFFICERS (UNAUDITED)
The aggregate direct remuneration paid by the Fund to trustees and officers
during the year ended December 31, 1995 was approximately $22,400, plus expenses
incurred in attending trustees meetings of approximately $2,900. Fees of
trustees who are affiliated with or "interested persons" of Pioneering
Management Corporation and Pioneer Funds Distributor, Inc., investment adviser
and underwriter, respectively, of the Fund ($1,000 in 1995) are reimbursed to
the Fund by Pioneering Management Corporation in accordance with the management
contract with the Fund. At December 31, 1995, the trustees and officers of the
Fund owned beneficially 4,545 Class A shares of the Fund (approximately 0.02% of
the outstanding Class A shares). The Pioneer Group, Inc. the parent company of
Pioneering Management Corporation and Pioneer Funds Distributor, Inc., is a
publicly held corporation of which Mr. Cogan, Chairman and President of the
Fund, beneficially owned approximately 15% of the outstanding shares of capital
stock at December 31, 1995.
18
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER GROWTH SHARES:
We have audited the accompanying balance sheet of Pioneer Growth Shares,
including the schedule of investments, as of December 31, 1995, and the related
statement of operations for the year then ended, and statements of changes in
net assets and financial highlights for the years ended December 31, 1995 and
1994. 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. The financial
highlights for each of the eight years ended December 31, 1993 were audited by
other auditors whose report dated February 22, 1994 expressed an unqualified
opinion.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995 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 Growth Shares as of December 31, 1995, the results of its operations for
the year then ended, and the changes in its net assets and financial highlights
for the years ended December 31, 1995 and 1994, in conformity with generally
accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
February 2, 1996
19
