[Pioneer Logo]
Pioneer
Growth Shares
ANNUAL REPORT 12/31/97
<PAGE>
Table of Contents
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Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 13
Notes to Financial Statements 19
Report of Independent Public Accountants 23
Trustees, Officers and Service Providers 24
The Pioneer Family of Mutual Funds 25
Programs and Services for Pioneer Shareowners 26
Retirement Plans from Pioneer 28
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Pioneer Growth Shares
LETTER FROM THE CHAIRMAN 12/31/97
Dear Shareowner,
- --------------------------------------------------------------------------------
I am pleased to introduce this report for Pioneer Growth Shares, covering a
most rewarding year. On behalf of all of us at Pioneer, I thank you for your
interest and this opportunity to comment briefly on today's investing
environment.
Your Fund enjoyed tremendous success in 1997, with shareowners receiving a
total return of more than 40% for the year. It was gratifying to see the Fund
hailed as a "top performer," but the real delight came in knowing that
shareowners reaped significant reward from our investment team's efforts.
At the risk of damping any euphoria you may be experiencing, there is probably
no better moment for prudent reflection than the close of a successful year.
Recent months demonstrated that a new level of volatility and global connection
appears to have entered world stock markets. In late October, the Dow Jones
Industrial Average posted - in the space of two days - both its biggest one-day
point drop and its biggest one-day point gain. Asian markets plunged suddenly
and repeatedly in the face of severe currency changes and slowing economies,
and we continue to feel reverberations across the United States, Europe and
Latin America. In this environment, we think it is critical to adhere to a
disciplined investment approach with clear, long-term objectives and a tested
methodology. We take pride that Pioneer Growth Shares offers just such a choice
for investors who, while they appreciate an outstanding year like 1997, also
expect to tolerate some volatility in exchange for an exciting long-term
opportunity.
I encourage you to read on to learn more about Pioneer Growth Shares. If you
have questions about your Fund, please contact your investment professional, or
Pioneer at 1-800-225-6292.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
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Pioneer Growth Shares
PORTFOLIO SUMMARY 12/31/97
Portfolio Diversification
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Pie chart]
Domestic Common Stocks 94%
Short-Term Cash Equivalents 4%
International Preferred Stocks 2%
Sector Distribution
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[Pie chart]
Technology 25%
Consumer Staples 20%
Financials 19%
Basic Materials 18%
Consumer Cyclicals 11%
Healthcare 6%
Capital Goods 1%
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
1. Monsanto Co. 6.87% 6. Nike, Inc., (Class B) 4.34%
2. Dell Computer Corp. 5.04 7. The Coca-Cola Co. 4.32
3. Pioneer Hi-Bred 4.97 8. Wrigley (Wm.) Jr. Co. 3.96
International, Inc.
4. Progressive Corp. 4.84 9. Fred Meyer, Inc. 3.81
5. Minerals Technologies, Inc. 4.65 10. Microsoft Corp. 3.70
Fund holdings will vary for other periods.
2
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Pioneer Growth Shares
PERFORMANCE UPDATE 12/31/97 CLASS A SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 12/31/97 12/31/96
$16.35 $11.71
Distributions per Share Income Short-Term Long-Term
(12/31/96-12/31/97) Dividends Capital Gains Capital Gains
- $0.098 $0.388
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Growth Shares at public offering price, compared to the growth of
the Standard & Poor's 500 Index.
******************************[MOUNTAIN CHART]*********************************
Growth of $10,000
Pioneer Standard & Poor's
Growth Shares* 500 Index
12/31/87 9,425 10,000
11,598 11,650
12/31/89 15,498 15,330
14,200 14,852
12/31/91 23,058 19,358
23,339 20,831
12/31/93 25,327 22,921
24,669 23,232
12/31/95 32,026 31,931
40,658 39,243
12/31/97 58,459 52,317
*******************************************************************************
[boxed text]
Average Annual Total Returns
(As of December 31, 1997)
Net Asset Public Offering
Period Value Price*
10 Years 20.02% 19.31%
5 Years 20.16 18.74
1 Year 43.78 35.56
* Reflects deduction of the maximum 5.75% sales charge at the beginning of
the period and assumes reinvestment of distributions at net asset value.
The Fund adopted its current name and investment adviser (Pioneering Management
Corp.) on December 1, 1993. Prior to that date, the Fund's name was Mutual of
Omaha Growth Fund, Inc., and its investment adviser was Mutual of Omaha Fund
Management Company.
The Standard & Poor's 500 Index is an unmanaged 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 fees, expenses or sales charges.
You cannot invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
3
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Pioneer Growth Shares
PERFORMANCE UPDATE 12/31/97 CLASS B SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 12/31/97 12/31/96
$16.00 $11.55
Distributions per Share Income Short-Term Long-Term
(12/31/96-12/31/97) Dividends Capital Gains Capital Gains
- $0.098 $0.388
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Growth Shares, compared to the growth of the Standard & Poor's 500
Index.
*****************************[MOUNTAIN CHART]*********************************
Growth of $10,000
Pioneer Standard & Poor's
Growth Shares* 500 Index
4/30/95 10,000 10,000
6/30/95 10,537 10,654
12,335 11,498
12/31/95 11,826 12,188
12,131 12,841
6/30/96 12,605 13,416
13,330 13,828
12/31/96 14,897 14,979
15,155 15,383
5/30/97 18,766 18,062
20,959 19,413
12/31/97 20,965 19,969
*******************************************************************************
[boxed text]
Average Annual Total Returns
(As of December 31, 1997)
If If
Period Held Redeemed*
Life-of-Fund 32.51% 31.81%
(4/28/95)
1 Year 42.75 38.75
* 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.
The Standard & Poor's 500 Index is an unmanaged 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 fees, expenses or sales charges.
You cannot invest directly in the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
4
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Pioneer Growth Shares
PERFORMANCE UPDATE 12/31/97 CLASS C SHARES
Share Prices and Distributions
- --------------------------------------------------------------------------------
Net Asset Value
per Share 12/31/97 12/31/96
$ 16.08 $11.55
Distributions per Share Income Short-Term Long-Term
(12/31/96-12/31/97) Dividends Capital Gains Capital Gains
- $0.098 $0.388
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Growth Shares, compared to the growth of the Standard &
Poor's 500 Index.
*****************************[MOUNTAIN CHART]*********************************
Growth of $10,000
Pioneer Standard & Poor's
Growth Shares* 500 Index
1/31/96 10,000 10,000
10,267 10,069
3/31/96 10,228 10,203
10,644 10,340
10,950 10,577
6/30/96 10,627 10,660
9,964 10,172
10,515 10,364
9/30/96 11,239 10,987
11,372 11,274
12,442 12,101
12/31/96 12,561 11,902
13,692 12,632
13,583 12,706
3/31/97 12,832 12,223
14,007 12,937
15,279 13,695
6/30/97 15,888 14,352
17,933 15,473
16,911 14,585
9/30/97 17,748 15,426
16,932 14,894
17,889 15,558
12/31/97 18,017 15,867
*******************************************************************************
[boxed text]
Average Annual Total Returns
(As of December 31, 1997)
If If
Period Held Redeemed*
Life-of-Fund 35.88% 35.88%
(1/31/96)
1 Year 43.44 43.44
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to redemptions made within one year of purchase.
The Standard & Poor's 500 Index is an unmanaged 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 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
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Pioneer Growth Shares
PORTFOLIO MANAGEMENT DISCUSSION 12/31/97
Dear Shareowner,
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Low inflation, strong economic growth and surging consumer confidence came
together in 1997 to produce a year of remarkable stock performance. I'm pleased
to report that Pioneer Growth Shares made a memorable showing, placing in the
top 3% (#16) of the 820 growth funds tracked by Lipper Analytical Services.*
The Fund's focused portfolio of large, high-quality companies even bested a
market dominated by investors with a "big is beautiful" mentality. The Fund's
43% total return for the year handily outdistanced the Standard & Poor's (S&P)
500 Index's 33.3% return, as well as the 25.3% return generated by the average
growth fund.*
A Year that Exceeded Expectations
Few observers predicted the economy's strength or the stock market's volatile
climb. After the Federal Reserve's March interest rate increase, a series of
economic reports indicated we were enjoying the best of both worlds - strong
growth with little inflation. The U.S. stock market passed one psychological
barrier after another as corporate America reported record profits and
Washington produced landmark legislation to cut taxes and balance the federal
budget.
However, by mid-summer some of the same big-name companies that led the market
to record highs announced earnings that fell short of expectations. Investors
began to question the stock price of large multinational firms, as well as
their ability to deliver strong, consistent earnings growth. Many of these
companies were hurt by the sharp rise in the dollar, which diminishes overseas
profits. There was also talk of another Fed interest rate hike to keep growth -
and potential inflation - in check.
Solid economic growth and favorable inflation news pushed stock prices of
small- and medium-sized companies higher until late October, when Asia's
struggling economies and currencies sparked a record sell-off in the U.S.
- --------------------------------------------------------------------------------
*Lipper Analytical Services, an independent research firm, ranks funds
according to total return performance. Rankings vary over time and do not
reflect the effects of sales charges. For periods ended 12/31/97, Class A
Shares ranked 16 of 820, 46 of 311, and 15 of 181 growth funds for one-, five-
and 10-year performance, respectively; Class B and Class C Shares ranked 20 and
18, respectively, of 820 growth funds for one-year performance and were not
ranked over longer periods. Past performance does not guarantee future results.
6
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Pioneer Growth Shares
stock market. In one day, the Dow Jones Industrial Average gave back nearly
two-thirds of the gains it had amassed since the start of the year. Federal
Reserve Chairman Greenspan hailed the decline as a "salutary event" if it
cooled investors' exuberance and slowed growth. Nevertheless, the market showed
remarkable resilience, recouping losses within weeks of
the "correction."
Finding Dominant Businesses
Your Fund invests in high-growth companies from a variety of industries. We
look for "category killers" with market dominance, brand recognition, strong
financial resources and talented management teams with a commitment to growing
their business. Many are positioning for the growing global demand for premium,
brand-name products. In some cases, they've made foreign acquisitions to
broaden product lines and power sales and earnings momentum for years to come.
We select companies we think are lead contenders to benefit from important
long-term trends. For example, aging "baby boomers" are in peak saving years,
preparing for college costs and retirement. Franklin Resources, which sells
investments through full-service broker/dealers, and Charles Schwab, which
markets directly to the investor, capitalize on the popularity of mutual funds
and turned in strong performance in 1997.
Investing in healthcare and pharmaceutical stocks also taps into this market.
As baby boomers get older, they are likely to require more prescriptions and
doctor visits. Walgreen is the largest retailer of prescription drugs in the
country. It is benefiting from the rise of the prescription drug industry, as
well as the growth of health maintenance organizations (HMOs) and their
preference for a few national vendors. We added two pharmaceutical holdings,
Merck and Pfizer, during the second half of the year at very attractive prices.
Merck has been under pressure over concerns about expiring patents for key
products. However, we believe the company - long held to be the hallmark of the
industry - will retain market share with the help of new drugs, including an
anti-inflammatory drug without gastrointestinal side effects. Pfizer is a
rising company with new blockbuster drugs pending FDA approval. Monsanto, now
the Fund's largest holding, is widely recognized as an agricultural-biotech
company, but it also has a solid presence with huge growth potential in the
pharmaceutical industry.
7
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Pioneer Growth Shares
PORTFOLIO MANAGEMENT DISCUSSION 12/31/97 (continued)
Technology stocks encountered some turbulence during the year, and it fell to
astute stock picking to provide much of your Fund's success in this sector. The
stock price of Dell Computer, the Fund's second-largest stake, rose
approximately 200% for the year. Through direct build-to-order sales, Dell has
become the top provider of desktop computers to U.S. businesses and government
agencies. Microsoft performed well but was overshadowed by the Justice
Department's investigation into distribution of the company's Internet browser.
However this case plays out, we remain confident the software giant will remain
a major force in the Information Age. Intel, whose stock price rose
dramatically early in 1997, turned in a disappointing year overall, stalling
over concerns about its reliance on overseas operations and growth and the
popularity of low-priced PCs.
Looking Forward
Large-company stocks fared well in 1997, helping the S&P 500 chalk up gains of
over 20% for the third consecutive year. As we enter 1998, there is talk of a
global economic slowdown, sparked by the financial crises in Asia. While this
situation has quelled talk of an increase in U.S. interest rates in the near
term, it's also lowering expectations for earnings. With so much uncertainty,
the current strength of the U.S. economy and a worldwide trend toward savings
is a reassuring note. We remain confident that Pioneer Growth Shares' focus on
the smartest, most dynamic companies will remain key to its ongoing success.
Respectfully,
/s/ Jeffrey B. Poppenhagen
Jeffrey B. Poppenhagen,
Portfolio Manager
8
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Pioneer Growth Shares
SCHEDULE OF INVESTMENTS 12/31/97
Shares Value
INVESTMENT IN SECURITIES - 95.7%
PREFERRED STOCK - 2.1%
48,000 SAP AG (Non-voting) $ 15,702,052
------------
Total Preferred Stock
(Cost $11,905,313) $ 15,702,052
------------
COMMON STOCKS - 93.6%
Basic Materials - 17.3%
Agricultural Products - 4.8%
340,000 Pioneer Hi-Bred International, Inc. $ 36,465,000
------------
Chemicals (Diversified) - 6.6%
1,200,000 Monsanto Co. $ 50,400,000
------------
Chemicals (Specialty) - 5.9%
750,000 Minerals Technologies, Inc. $ 34,078,125
309,100 OM Group, Inc. 11,320,788
------------
$ 45,398,913
------------
Total Basic Materials $132,263,913
------------
Capital Goods - 1.2%
Manufacturing (Specialized) - 1.2%
185,000 Briggs & Stratton Corp. $ 8,984,063
------------
Total Capital Goods $ 8,984,063
------------
Consumer Cyclicals - 10.7%
Retail (General Merchandise) - 3.6%
768,340 Fred Meyer, Inc.* $ 27,948,368
------------
Auto Parts & Equipment - 0.9%
115,000 Magna International Inc. $ 7,223,438
------------
Retail Specialty - 2.0%
450,000 Barnes & Noble, Inc.* $ 15,018,750
------------
Textiles (Apparel) - 4.2%
810,000 Nike, Inc. (Class B) $ 31,792,500
------------
Total Consumer Cyclicals $ 81,983,056
------------
Consumer Staples - 19.4%
Beverages (Non-alcoholic) - 4.1%
475,000 The Coca-Cola Co. $ 31,646,875
------------
Entertainment - 1.8%
140,000 The Walt Disney Co. $ 13,868,750
------------
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Growth Shares
SCHEDULE OF INVESTMENTS 12/31/97 (continued)
Shares Value
Foods - 3.8%
365,000 Wrigley (Wm.) Jr. Co. $ 29,040,313
------------
Personal Care - 3.1%
240,000 Gillette Co. $ 24,105,000
------------
Restaurants - 3.5%
555,000 McDonald's Corp. $ 26,501,250
------------
Retail (Drug Stores) - 3.1%
760,000 Walgreen Co. $ 23,845,000
------------
Total Consumer Staples $149,007,188
------------
Financial - 17.6
Banks (Major Regional) - 1.7%
38,000 Wells Fargo & Co. $ 12,898,625
------------
Consumer Finance - 1.8%
330,000 Countrywide Credit Industries, Inc. $ 14,148,750
------------
Insurance (Property - Casualty) - 5.5%
296,300 Progressive Corp. $ 35,518,963
255,000 20th Century Industries 6,630,000
------------
$ 42,148,963
------------
Insurance (Multi-line) - 2.9%
201,000 American International Group, Inc. $ 21,858,750
------------
Investment Management - 2.7%
235,000 Franklin Resources, Inc. $ 20,430,313
------------
Investment Bank/Brokerage - 3.0%
555,000 Charles Schwab Corp. $ 23,275,313
------------
Total Financial $134,760,714
------------
Healthcare - 5.5%
Healthcare (Drugs/Major Pharmaceuticals) - 5.5%
175,000 Merck & Co., Inc. $ 18,593,750
315,000 Pfizer, Inc. 23,487,188
------------
Total Healthcare $ 42,080,938
------------
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Growth Shares
Shares Value
Technology - 21.9%
Compter Hardware - 4.8 %
440,000 Dell Computer Corp.* $ 36,960,000
------------
Communications Equipment - 1.9%
500,000 Molex Inc. (Non-voting) $ 14,375,000
------------
Services (Data Processing) - 3.1%
815,000 First Data Corp. $ 23,838,750
------------
Equipment (Semiconductor) - 2.0%
520,000 Applied Materials, Inc.* $ 15,665,000
------------
Computers (Networking) - 2.3%
320,000 Cisco Systems, Inc.* $ 17,840,000
------------
Electronics (Semiconductors) - 4.2%
125,000 Etec Systems, Inc.* $ 5,812,500
380,000 Intel Corp. 26,695,000
------------
$ 32,507,500
------------
Computers (Software & Services) - 3.6%
210,000 Microsoft Corp.* $ 27,142,500
------------
Total Technology $168,328,750
------------
Total Common Stocks
(Cost $530,238,084) $717,408,622
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $542,143,397) $733,110,674
------------
Principal
Amount
TEMPORARY CASH INVESTMENT - 4.3%
Commercial Paper - 4.3%
$32,788,000 American Express Co. 6.65%, 01/02/98 $ 32,788,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $32,788,000) $ 32,788,000
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $574,931,397)(a) $765,898,674
------------
The accompanying notes are an integral part of these financial statements. 11
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Pioneer Growth Shares
SCHEDULE OF INVESTMENTS 12/31/97 (continued)
* Non-income producing security.
(a) At December 31, 1997, the net unrealized gain on investments, based on cost
for federal income tax purposes of $574,931,397, was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $210,419,437
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (19,452,160)
-------------
Net unrealized gain $190,967,277
-------------
Purchases and sales of securities (excluding temporary cash investments) for
the year ended December 31, 1997 aggregated $409,416,419 and $138,079,614,
respectively.
12 The accompanying notes are an integral part of these financial statements.
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Pioneer Growth Shares
BALANCE SHEET 12/31/97
ASSETS:
Investment in securities, at value (including temporary
cash investment of $32,788,000) (cost $574,931,397) $765,898,674
Cash 388
Receivables -
Fund shares sold 6,148,777
Dividends and interest 393,997
Other 8,978
------------
Total assets $772,450,814
------------
LIABILITIES:
Payables -
Investment securities purchased $ 5,064,824
Fund shares repurchased 1,068,781
Due to affiliates 884,496
Accrued expenses 51,674
------------
Total liabilities $ 7,069,775
------------
NET ASSETS:
Paid-in capital $568,307,984
Accumulated undistributed net realized gain on investments 6,105,778
Net unrealized gain on investments 190,967,277
------------
Total net assets $765,381,039
------------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $567,125,750/34,682,818 shares) $ 16.35
------------
Class B (based on $163,955,280/10,246,289 shares) $ 16.00
------------
Class C (based on $34,300,009/2,132,599 shares) $ 16.08
------------
MAXIMUM OFFERING PRICE:
Class A $ 17.35
------------
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Growth Shares
STATEMENT OF OPERATIONS
For the Year Ended 12/31/97
INVESTMENT INCOME:
Dividends (net of foreign taxes
withheld of $32,631) $3,089,557
Interest 618,914
----------
Total investment income $ 3,708,471
------------
EXPENSES:
Management fees $2,401,013
Transfer agent fees
Class A 800,544
Class B 170,942
Class C 19,664
Distribution fees
Class A 1,018,801
Class B 804,344
Class C 126,321
Accounting 79,139
Custodian fees 65,914
Registration fees 100,892
Professional fees 43,040
Printing 34,612
Fees and expenses of nonaffiliated trustees 17,337
Miscellaneous 30,387
----------
Total expenses $ 5,712,950
Less fees paid indirectly (125,493)
------------
Net expenses $ 5,587,457
------------
Net investment loss $ (1,878,986)
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 24,440,249
Change in net unrealized gain on investments 136,683,350
------------
Net gain on investments $161,123,599
------------
Net increase in net assets resulting from
operations $159,244,613
------------
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Growth Shares
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended 12/31/97 and 12/31/96
<TABLE>
<CAPTION>
Year Ended Year Ended
<S> <C> <C>
FROM OPERATIONS: 12/31/97 12/31/96
Net investment loss $ (1,878,986) $ (323,136)
Net realized gain on investments 24,440,249 23,888,859
Change in net unrealized gain on investments 136,683,350 40,558,913
------------ ------------
Net increase in net assets resulting from operations $159,244,613 $ 64,124,636
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain:
Class A ($0.49 and $1.07 per share, respectively) $(16,028,550) $(23,357,095)
Class B ($0.49 and $1.07 per share, respectively) (4,596,476) (2,408,390)
Class C ($0.49 and $1.07 per share, respectively) (980,576) (107,390)
------------ ------------
Total distributions to shareholders $(21,605,602) $(25,872,875)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $439,838,081 $ 88,005,542
Reinvestment of distributions 19,890,442 25,187,073
Cost of shares repurchased (142,224,466) (70,788,997)
------------ ------------
Net increase in net assets resulting from fund
share transactions $317,504,057 $ 42,403,618
------------ ------------
Net increase in net assets $455,143,068 $ 80,655,379
NET ASSETS:
Beginning of year 310,237,971 229,582,592
------------ ------------
End of year (including accumulated net investment
income of $0 and $0, respectively) $765,381,039 $310,237,971
------------ ------------
</TABLE>
<TABLE>
<CAPTION>
CLASS A '97 Shares '97 Amount '96 Shares '96 Amount
<S> <C> <C> <C> <C>
Shares sold 16,994,243 $ 259,260,803 6,170,753 $65,424,973
Reinvestment of distributions 947,412 15,461,488 2,040,720 22,875,363
Less shares repurchased (6,967,488) (104,255,907) (5,796,578) (61,289,863)
---------- -------------- ---------- ------------
Net increase 10,974,167 $ 170,466,384 2,414,895 $27,010,473
---------- -------------- ---------- ------------
CLASS B
Shares sold 9,251,604 $ 140,282,436 1,951,888 $20,692,598
Reinvestment of distributions 235,329 3,757,908 199,188 2,220,411
Less shares repurchased (1,948,758) (28,743,764) (834,440) (8,797,032)
---------- -------------- ---------- ------------
Net increase 7,538,175 $ 115,296,580 1,316,636 $14,115,977
---------- -------------- ---------- ------------
CLASS C*
Shares sold 2,580,171 $ 40,294,842 169,294 $ 1,887,971
Reinvestment of distributions 41,778 671,046 8,096 91,299
Less shares repurchased (606,628) (9,224,795) (60,112) (702,102)
---------- -------------- ---------- ------------
Net increase 2,015,321 $ 31,741,093 117,278 $ 1,277,168
---------- -------------- ---------- ------------
</TABLE>
*Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Growth Shares
FINANCIAL HIGHLIGHTS 12/31/97
<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/97 12/31/96
<S> <C> <C>
CLASS A
Net asset value, beginning of year $ 11.71 $ 10.12
--------- --------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.03) $ (0.01)
Net realized and unrealized gain (loss) on investments 5.16 2.67
---------- ---------
Net increase (decrease) from investment operations $ 5.13 $ 2.66
Distributions to shareholders:
Net investment income - -
Net realized gain ( 0.49) ( 1.07)
Paid-in capital - -
--------- ---------
Net increase (decrease) in net asset value $ 4.64 $ 1.59
---------- ---------
Net asset value, end of year $ 16.35 $ 11.71
---------- ---------
Total return* 43.78% 26.95%
Ratio of net expenses to average net assets 0.99%+ 1.15%+
Ratio of net investment income (loss) to average net assets (0.25)%+ (0.08)%+
Portfolio turnover rate 28% 96%
Average brokerage commission per share $ 0.0630 $0.0568
Net assets, end of year (in thousands) $567,126 $277,598
Ratios assuming no waiver of management fees and assumption
of expenses by PMC and no reduction for fees paid indirectly:
Net expenses 0.99% 1.15%
Net investment loss (0.25)% ( 0.08)%
Ratios assuming reductions for fees paid indirectly:
Net expenses 0.97% 1.13%
Net investment income (loss) (0.23)% (0.06)%
Year Ended Year Ended Year Ended
12/31/95 12/31/94 12/31/93(a)
<S> <C> <C> <C>
CLASS A
Net asset value, beginning of year $ 8.85 $ 12.62 $ 12.42
-------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.03 $ (0.06) $ (0.07)
Net realized and unrealized gain (loss) on investments 2.58 (0.38) 1.10
-------- ------- -------
Net increase (decrease) from investment operations $ 2.61 $ (0.44) $ 1.03
Distributions to shareholders:
Net investment income (0.03) - -
Net realized gain (1.31) (3.32) (0.83)
Paid-in capital - (0.01) -
-------- ------- -------
Net increase (decrease) in net asset value $ 1.27 $ (3.77) $ 0.20
-------- ------- -------
Net asset value, end of year $ 10.12 $ 8.85 $ 12.62
-------- ------- -------
Total return* 29.82% (2.60)% 8.52%
Ratio of net expenses to average net assets 1.23%+ 1.46% 1.20%
Ratio of net investment income (loss) to average net assets 0.28%+ (0.53)% (0.60)%
Portfolio turnover rate 158% 161% 29%
Average brokerage commission per share - - -
Net assets, end of year (in thousands) $215,564 $132,476 $134,546
Ratios assuming no waiver of management fees and assumption
of expenses by PMC and no reduction for fees paid indirectly:
Net expenses 1.23% - 1.21%
Net investment loss 0.28% - (0.62)%
Ratios assuming reductions for fees paid indirectly:
Net expenses 1.21% - -
Net investment income (loss) 0.30% - -
</TABLE>
(a)Prior to assumption of management agreement on December 1, 1993 by PMC, the
Fund was advised by Mutual of Omaha Management Company.
*Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
Pioneer Growth Shares
FINANCIAL HIGHLIGHTS 12/31/97
Year Ended Year Ended 4/28/95 to
12/31/97(a) 12/31/96 12/31/95
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 11.55 $ 10.07 $ 9.68
-------- ------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.15) $ (0.05) $ -
Net realized and unrealized gain on investments 5.09 2.60 1.73
-------- ------- ---------
Net increase from investment operations $ 4.94 $ 2.55 $ 1.73
Distributions to shareholders:
Net investment income - - (0.03)
Net realized gain (0.49) ( 1.07) ( 1.31)
-------- ------- ---------
Net increase in net asset value $ 4.45 $ 1.48 $ 0.39
-------- ------- ---------
Net asset value, end of period $ 16.00 $ 11.55 $ 10.07
-------- ------- ---------
Total return* 42.75% 25.97% 18.26%
Ratio of net expenses to average net assets 1.76%+ 1.86%+ 1.90%**+
Ratio of net investment loss to average net assets (1.01)%+ (0.83)%+ (0.25)%**+
Portfolio turnover rate 28% 96% 158%
Average brokerage commission per share 0.0630 $0.0568 -
Net assets, end of period (in thousands) $163,955 $31,286 $14,019
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.72% 1.84% 1.84%**
Net investment loss (0.97)% (0.81)% (0.19)%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Growth Shares
FINANCIAL HIGHLIGHTS 12/31/97
<TABLE>
<CAPTION>
Year Ended 1/31/96 to
CLASS C 12/31/97(a) 12/31/96
<S> <C> <C>
Net asset value, beginning of period $ 11.55 $10.10
-------- --------
Increase (decrease) from investment operations:
Net investment loss $ (0.14) $ (0.05)
Net realized and unrealized gain on investments 5.16 2.57
-------- --------
Net increase from investment operations $ 5.02 $ 2.52
Distributions to shareholders:
Net realized gain (0.49) (107)
-------- --------
Net increase in net asset value $ 4.53 $ 1.45
-------- --------
Net asset value, end of period $ 16.08 $ 11.55
-------- --------
Total return* 43.44% 25.61%
Ratio of net expenses to average net assets 1.69%+ 1.89%**+
Ratio of net investment loss to average net assets (0.93)%+ (1.01)%**+
Portfolio turnover rate 28% 96%
Average brokerage commission per share $0.0630 $0.0568
Net assets, end of period (in thousands) $34,300 $1,354
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.63% 1.87%**
Net investment loss (0.87) (0.99)%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Growth Shares
NOTES TO FINANCIAL STATEMENTS 12/31/97
1. Organization and Significant Accounting Policies
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.
The Fund offers three classes of shares - Class A, Class B, and Class C shares.
The shares of Class A, Class B, and Class C 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. 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 Board of Trustees. Dividend
income is recorded on the ex-dividend date and 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.
19
<PAGE>
Pioneer Growth Shares
NOTES TO FINANCIAL STATEMENTS 12/31/97 (continued)
Settlements from litigation and class action suits are recognized when the
Fund acquires an enforceable right to such awards. Included in net realized
gain from investments is $52,867 of class action settlements received by the
Fund during the year ended December 31, 1997.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in-capital, depending on the type of book/tax differences that may
exist.
At December 31, 1997, the Fund reclassified $1,071,766 and $807,220 from
accumulated undistributed net realized gain on investments and paid-in
capital, respectively, to accumulated net investment loss. The
reclassification has no impact on the net asset value of the Fund and is
designed to present the Fund's capital accounts on a tax basis.
In order to comply with federal income tax regulations, the Fund has
designated $23,368,482 as a capital gain dividend for the purposes of the
dividend paid deduction.
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 $611,581 in
underwriting commissions on the sale of fund shares during the year ended
December 31, 1997.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, and Class C shares of the Fund,
respectively. Shareholders of each class share all expenses and fees paid to
the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in
20
<PAGE>
Pioneer Growth Shares
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.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B, and Class C shares can bear different transfer
agent and distribution fees.
2. Management Agreement
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 the
excess over $300 million.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. At December 31, 1997, $319,587 was payable to PMC related to
management fees and certain other services.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in due
to affiliates is $68,637 in transfer agent fees payable to PSC at December 31,
1997.
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 Fund's average daily net assets in reimbursement of
its actual expenditures to finance activities primarily intended to result in
the sale of Class A shares. Pursuant to 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
21
<PAGE>
Pioneer Growth Shares
NOTES TO FINANCIAL STATEMENTS 12/31/97 (continued)
regard to Class B and Class C shares. Included in due to affiliates is $496,272
in distribution fees payable to PFD at December 31, 1997.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of
purchase. Class B shares that are redeemed within six years of purchase are
subject to a CDSC at declining rates beginning at 4.0%, based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%. Proceeds from the
CDSCs are paid to PFD. For the year ended December 31, 1997, CDSCs in the
amount of $145,214 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain directed brokerage and expense offset
arrangements resulting in a reduction in the Fund's total expenses. For the
year ended December 31, 1997, the Fund's expenses were reduced by $125,493
under such arrangements.
22
<PAGE>
Pioneer Growth Shares
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To The Shareholders and the Board of Trustees of Pioneer Growth Shares:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Growth Shares as of December 31, 1997, and the related
statement of operations, and statements of changes in net assets for the
periods presented and financial highlights for each of the four years ended
December 31, 1997. 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 the year 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, 1997 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Growth Shares as of December 31, 1997, the results of its operations,
and the changes in its net assets for the periods presented and financial
highlights for each of the four years ended December 31, 1997, in conformity
with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
February 2, 1998
23
<PAGE>
Pioneer Growth Shares
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice
Margaret B.W. Graham President
John W. Kendrick Jeffrey B. Poppenhagen, Vice President
Marguerite A. Piret William H. Keough, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
24
<PAGE>
THE PIONEER FAMILY OF MUTUAL FUNDS
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds
Global/International
Pioneer Emerging Markets Fund
Pioneer Europe Fund
Pioneer Gold Shares
Pioneer India Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
United States
Pioneer Capital Growth Fund
Pioneer Growth Shares
Pioneer Micro-Cap Fund*
Pioneer Mid-Cap Fund
Pioneer Small Company Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
Income Funds
Taxable
Pioneer America Income Trust
Pioneer Bond Fund
Pioneer Short-Term Income Trust*
Tax-Exempt
Pioneer Intermediate Tax-Free Fund
Pioneer Tax-Free Income Fund
Money Market Fund
Pioneer Cash Reserves Fund
*Offers Class A and B Shares only
25
<PAGE>
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
Your investment representative can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-800-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 13-digit account number and four-digit personal identification number at
hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as
you meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
26
<PAGE>
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds
you wish to invest in. You choose the amounts and dates for Pioneer to sell
shares of your original fund and use the proceeds to buy shares of the other
funds you have chosen. Over time, your investment will be shifted out of the
original fund. (Automatic Exchange is available for originating accounts with a
balance of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals.
You decide the frequency and the day of the month you want. Pioneer will send
the proceeds by check to the address you designate, or electronically to your
bank account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available only for accounts with a value of $10,000 or
more.)
27
<PAGE>
RETIREMENT PLANS FROM PIONEER
Pioneer has a long history of helping people work toward their retirement
goals, offering plans suited to the individual investor and businesses of all
sizes. For more information on Pioneer retirement plans, contact your
investment professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 70-1/2 with earned
income to contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
The Roth IRA came about as part of the Taxpayer Relief Act of 1997 and is
available to investors in 1998. Contributions, up to $2,000 a year, are not
tax-deductible, but earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $9,500 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match Plan for Employees) 401(k) or IRA Plan
Businesses with 100 or fewer eligible employees can establish either plan; both
resemble the traditional 401(k), but with less testing and lower administration
costs. Employees can make pre-tax contributions of up to $6,000 per year, and
an employer contribution is required.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
28
<PAGE>
403(b) Plan
Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is available only to
employees of public schools, not-for-profit hospitals and other tax-exempt
organizations. A 403(b) plan lets employees set aside a portion of their
salary, before taxes, through payroll deduction.
Simplified Employee Pension Plan (SEP)
SEPs let self-employed people and small-business owners make tax--
deductible contributions of up to 15% of their income. Generally, employers
must contribute the same percentage of pay for themselves and any eligible
employees; contributions are made directly to employees' IRAs. SEPs are easy to
administer and can be an especially good choice for firms with few or no
employees.
Profit Sharing Plan
Profit sharing plans offer companies considerable flexibility, allowing them to
decide each year whether a contribution will be made and how much, up to 15% of
each participant's pay. These plans can include provisions for loans and
vesting schedules.
Age-Weighted Profit Sharing Plan
Like traditional profit sharing plans, employer contributions are flexible, but
age-weighted plans allocate contributions based on both age and salary. Age-
weighted plans are designed for employers who want to maximize their own
contributions while keeping contributions to employees affordable.
Money Purchase Pension Plan (MPP)
Money purchase plans are similar to profit-sharing plans, but allow for higher
annual contributions--up to 25% of pay. MPPs aren't as flexible as profit
sharing plans; a fixed percentage of pay must be contributed each year,
determined when the plan is established. Businesses often set up both MPPs and
profit sharing plans.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
29
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer Logo]
Pioneer Funds Distributor, Inc.
60 State Street 0298-4815
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
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