<PAGE>
[PIONEER LOGO]
PIONEER
BALANCED
FUND
[SEMIANNUAL REPORT 6/30/00]
<PAGE>
TABLE OF CONTENTS
-----------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 18
Notes to Financial Statements 24
Trustees, Officers and Service Providers 28
The Pioneer Family of Mutual Funds 29
</TABLE>
<PAGE>
PIONEER BALANCED FUND
LETTER FROM THE CHAIRMAN 6/30/00
DEAR SHAREOWNER,
--------------------------------------------------------------------------------
For over a year, the Federal Reserve has been trying to suppress
inflationary pressures and restrain economic growth in the U.S. by
raising short-term interest rates. Because they represent increased
costs, higher interest rates cut into corporate profits.
With the possibility of a slowing economy and an uncertain profit
outlook overhanging the stock market, investors shifted from sector to
sector in the first half of 2000 looking for attractive opportunities.
Heightened stock market volatility was the result. Bonds also lost
luster, because existing, lower-paying issues could not compete with
the higher rates that now prevail. By summer, we began to see evidence
that the Fed's tactics were having some impact, as key statistics
hinted at a contraction of the economy's growth rate.
Volatile markets should not sidetrack your plans for dealing with your
essential financial goals. Whatever your long-range needs may be --
money for a child's education, funding a comfortable retirement, or
some other cherished objective -- those needs remain in place no matter
what the market may do this week or next month. For that reason, it
makes sense to focus your investment strategy beyond interim ups and
downs.
Mid-year is a good time to talk to your financial representative to
review what has been happening and to make sure your strategy is
intact. Part of that discussion should be devoted to your portfolio's
diversification. Do you have a blend of stocks and bonds that you are
comfortable with and that can help you meet your goals? Or is it time
to make adjustments? Be sure to include your IRAs and other retirement
vehicles when you evaluate your overall portfolio.
I hope you will take time to read the following discussion about
Pioneer Balanced Fund. It's an excellent way to understand the Fund's
performance during the past six months and to learn about expectations
for the months ahead. If you have questions or would like more
information about your fund, visit our web site at
www.pioneerfunds.com.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
PIONEER BALANCED FUND
PORTFOLIO SUMMARY 6/30/00
PORTFOLIO DIVERSIFICATION
-----------------------------------------------------------------------------
(As a percentage of total investment portfolio)
U.S. Common Stocks 54.9%
U.S. Government Securities 19.5%
U.S. Corporate Bonds 17.5%
Short-Term Cash Equivalents 5.5%
International Common Stocks 1.5%
Depositary Receipts for
International Stocks 0.8%
Convertible Corporate Bonds 0.3%
SECTOR DISTRIBUTION
-----------------------------------------------------------------------------
(As a percentage of total investment in securities)
Government Obligations 21%
Technology 19%
Financial 13%
Energy 9%
Consumer Staples 9%
Healthcare 8%
Consumer Cyclicals 6%
Communication Services 5%
Basic Materials 4%
Other 6%
10 LARGEST HOLDINGS
-----------------------------------------------------------------------------
(As a percentage of total investment in securities)
<TABLE>
<C> <S> <C> <C> <C> <C>
1. Intel Corp. 3.86% 6. U.S. Treasury Bonds, 2.53%
8.125%, 8/15/19
2. Texas Instruments, Inc. 2.99 7. United Healthcare 2.23
Corp.
3. EMC Corp. 2.98 8. Phillips Petroleum Co., 2.10
8.86%, 5/15/22
4. Ford Motor Corp. 2.86 9. Ford Motor Credit Corp., 2.10
9.14%, 12/30/14
5. Hewlett-Packard Co. 2.59 10. Government National 1.86
Mortgage Association,
7.0%, 7/15/29
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
PIONEER BALANCED FUND
PERFORMANCE UPDATE 6/30/00 CLASS A SHARES
SHARE PRICES AND DISTRIBUTIONS
-----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET VALUE
PER SHARE 6/30/00 12/31/99
<S> <C> <C> <C>
$9.79 $9.73
</TABLE>
<TABLE>
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/99 - 6/30/00) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.144 - -
</TABLE>
INVESTMENT RETURNS
-----------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000
investment made in Pioneer Balanced Fund at public offering price,
compared to the growth of the Standard & Poor's 500 Index and the
Lehman Brothers Government/Corporate Bond Index.
<TABLE>
<CAPTION>
[mountain chart]
Growth of $10,000
LEHMAN BROTHERS
GOVERNMENT/CORPORATE STANDARD & POOR'S 500
PIONEER BALANCED FUND* BOND INDEX INDEX
---------------------- -------------------- ---------------------
<S> <C> <C> <C>
6/30/90 9550 10000 10000
6/30/91 10325 11020 10738
11606 12580 12174
13144 14235 13825
6/30/94 12987 14028 14025
14454 15820 17673
16034 16555 22253
6/30/97 18549 17836 29960
20889 19849 38980
20776 20386 47826
6/30/00 21173 21263 51279
[end mountain chart]
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
(As of June 30, 2000)
<TABLE>
<CAPTION>
NET ASSET PUBLIC OFFERING
PERIOD VALUE PRICE*
<S> <C> <C> <C>
10 Years 8.28 7.79
5 Years 7.93 6.95
1 Year 1.91 -2.70
</TABLE>
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
The Fund adopted its current name and investment objective on February
3, 1997. Prior to that date, the Fund's name was Pioneer Income Fund and
its objective was income from a portfolio of income-producing bonds and
stocks.
The Lehman Brothers Government/Corporate Bond Index is an unmanaged,
composite index of the U.S. bond market. It contains 5,353 issues,
including Treasury and government agency securities, investment-grade
corporate bonds and Yankee bonds. The Standard & Poor's (S&P) 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 either Index.
Past performance does not guarantee future results. Return and share
price fluctuate, and your shares, when redeemed, may be worth more or
less than their original cost.
3
<PAGE>
PIONEER BALANCED FUND
PERFORMANCE UPDATE 6/30/00 CLASS B SHARES
SHARE PRICES AND DISTRIBUTIONS
-----------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET VALUE
PER SHARE 6/30/00 12/31/99
<S> <C> <C> <C>
$9.70 $9.64
<CAPTION>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/99 - 6/30/00) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
$0.102 - -
</TABLE>
INVESTMENT RETURNS
-----------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000
investment made in Pioneer Balanced Fund, compared to the growth of the
Standard & Poor's 500 Index and the Lehman Brothers
Government/Corporate Bond Index.
<TABLE>
<CAPTION>
[mountain chart]
Growth of $10,000
LEHMAN BROTHERS
GOVERNMENT/CORPORATE STANDARD & POOR'S 500
PIONEER BALANCED FUND* BOND INDEX INDEX
---------------------- -------------------- ---------------------
<S> <C> <C> <C>
4/28/95 10000 10000 10000
6/30/95 10397 10502 10653
11374 11202 12186
6/30/96 11455 10990 13414
12400 11525 14977
6/30/97 13142 11841 18060
14010 12650 19968
6/30/98 14662 13177 23497
14036 13848 25663
6/30/99 14444 13534 28830
14350 13550 31050
6/30/00 14494 14116 30911
[end mountain chart]
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
(As of June 30, 2000)
<TABLE>
<CAPTION>
IF IF
PERIOD HELD REDEEMED*
<S> <C> <C> <C>
Life-of-Fund 7.57% 7.43%
(4/28/95)
5 Years 7.02 6.87
1 Year 1.04 -2.91
</TABLE>
* Reflects deduction of the maximum
applicable contingent deferred sales
charge (CDSC) at the end of the
period and assumes reinvestment
of distributions. The maximum CDSC
of 4% declines over six years.
The Fund adopted its current name and investment objective on February
3, 1997. Prior to that date, the Fund's name was Pioneer Income Fund and
its objective was income from a portfolio of income-producing bonds and
stocks.
The Lehman Brothers Government/Corporate Bond Index is an unmanaged,
composite index of the U.S. bond market. It contains 5,353 issues,
including Treasury and government agency securities, investment-grade
corporate bonds and Yankee bonds. The Standard & Poor's (S&P) 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 either Index.
Past performance does not guarantee future results. Return and share
price fluctuate, and your shares, when redeemed, may be worth more or
less than their original cost.
4
<PAGE>
PIONEER BALANCED FUND
PERFORMANCE UPDATE 6/30/00 CLASS C SHARES
SHARE PRICES AND DISTRIBUTIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET VALUE
PER SHARE 6/30/00 12/31/99
<S> <C> <C> <C>
$9.79 $9.73
</TABLE>
<TABLE>
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/99 - 6/30/00) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<CAPTION>
<S> <C> <C> <C>
$0.090 - -
</TABLE>
INVESTMENT RETURNS
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000
investment made in Pioneer Balanced Fund, compared to the growth of the
Standard & Poor's 500 Index and the Lehman Brothers Government/
Corporate Bond Index.
<TABLE>
<CAPTION>
[mountain chart]
Growth of $10,000
LEHMAN BROTHERS
GOVERNMENT/CORPORATE STANDARD & POOR'S 500
PIONEER BALANCED FUND* BOND INDEX INDEX
---------------------- -------------------- ---------------------
<S> <C> <C> <C>
1/96 10000 10000 10000
9865 9706 10203
9974 9750 10660
9/96 10163 9922 10987
10812 10225 11902
10678 10137 12223
6/97 11487 10505 14352
12456 10873 15426
12269 11222 15868
3/98 13029 11393 18076
12859 11691 18673
11956 12269 16818
12/98 12302 12286 20393
12206 12139 21407
12643 12007 22910
9/99 12009 12071 21482
12550 12022 24675
12752 12345 25236
6/00 12746 12523 24565
[end mountain chart]
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
(As of June 30, 2000)
<TABLE>
<CAPTION>
IF IF
PERIOD HELD REDEEMED*
<S> <C> <C> <C>
Life-of-Fund 5.64% 5.64%
(1/31/96)
1 Year 0.81 0.81
</TABLE>
* Assumes reinvestment of distributions.
The 1% contingent deferred sales
charge (CDSC) applies to redemptions
made within one year of purchase.
The Fund adopted its current name and investment objective on February
3, 1997. Prior to that date, the Fund's name was Pioneer Income Fund and
its objective was income from a portfolio of income-producing bonds and
stocks.
The Lehman Brothers Government/Corporate Bond Index is an unmanaged,
composite index of the U.S. bond market. It contains 5,353 issues,
including Treasury and government agency securities, investment-grade
corporate bonds and Yankee bonds. The Standard & Poor's (S&P) 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 either Index.
Past performance does not guarantee future results. Return and share
price fluctuate, and your shares, when redeemed, may be worth more or
less than their original cost.
5
<PAGE>
PIONEER BALANCED FUND
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00
Early in the year, the market was driven primarily by soaring
technology stocks. Most of the gains achieved by these stocks were
wiped out in March and April when the market corrected. At this time
investors turned to value-oriented stocks. However, in June, growth
stocks were back in favor. In the following discussion, Theresa
Hamacher, who supervises the team of portfolio managers and analysts
responsible for the day-to-day management of Pioneer Balanced Fund,
and Tin Chan, who focuses on the Fund's equity component, review the
performance of your Fund and the factors that affected it over the
past six months.
Q: HOW DID THE FUND PERFORM FOR THE SIX MONTHS ENDED JUNE 30, 2000?
A: The Fund performed well, outperforming its Lipper peer group for
the six months. The Fund's Class A shares returned 2.12%, Class B
shares 1.70% and Class C shares 1.56%, all at net asset value.
The average return of the 481 balanced funds tracked by Lipper
for the six months ended June 30 was 1.34% at net asset value.
(Lipper is an independent firm that tracks mutual fund
performance.)
Q: WHAT STRATEGIES DID YOU USE IN MANAGING THE FUND OVER THE PAST
SIX MONTHS?
A: Pioneer Balanced Fund is tilted toward value: it has a relatively
conservative investment focus, concentrating on stocks with low
price-to-book and price-to-earnings ratios. We strive to balance
risk and reward in the portfolio, currently allocating 60% of the
Fund's assets to equities and 40% to bonds. We manage the Fund
using a bottom-up, research-based approach, focusing on
individual stocks, not sectors. This means we buy stocks for the
portfolio that we believe are solid investments with the
potential to provide attractive returns over time. Our "buy and
hold" strategy helps to minimize turnover in the portfolio.
6
<PAGE>
PIONEER BALANCED FUND
Q: WHAT EQUITY HOLDINGS HELPED THE FUND'S PERFORMANCE?
A: Although this Fund is value oriented, it did own some technology
stocks over the period. The technology names in the portfolio are
familiar, well established companies that we believe are fairly
valued. Over the past six months, the Fund's largest holding,
Intel, rose 62%. Texas Instruments, a leading provider of
semiconductor products, was up 42%, benefiting the Fund.
Pharmaceutical holdings were also strong. Allergan, an eye care
product provider, helped performance. The stock, which has been
in the portfolio since 1998, was up 50% over the six months.
Global developer and manufacturer of medicines for humans and
animals, Pfizer, saw its stock price increase by 48%.
Q: WHAT HOLDINGS HURT THE FUND?
A: Although value stocks did witness sparks of interest over the
period, growth stocks forged to the head of the pack. Overall,
stocks that are considered traditional value stocks were a drag
on Fund performance. Pioneer Balanced Fund's focus on dividend
paying stocks also worked against it, because stocks that pay
dividends typically fall into the value category. Equipment and
components manufacturer, Ingersoll-Rand, saw a decline of over
26% over the period. Honeywell International, a producer of
automation and control systems, announced lower than expected
estimated earnings, and its stock price fell.
Q: THE BOND PORTION OF PIONEER BALANCED FUND'S PORTFOLIO
OUTPERFORMED THE EQUITY PORTION. WHY?
A: The Fund benefited from its exposure to Treasury holdings, an
asset class that performed very well over the period. In recent
months, the strong economy led to a substantial budget surplus
for the government. The government used this money to reduce its
debt by buying back some of its long-term Treasuries. In
response, the price of these instruments rose and rates dropped.
Corporate securities, particularly those that were lower quality,
did not fare as well as Treasuries for most of the six months.
The trend over
7
<PAGE>
PIONEER BALANCED FUND
PORTFOLIO MANAGEMENT DISCUSSION 6/30/00 (CONTINUED)
recent months has been that the lower the credit quality, the less
well a security performed. Many investors were unwilling to hold
higher yielding, lower quality corporate bonds, fearing that
companies would default. However, as the period progressed, and
in view of the continued strength of the U.S. economy, we
increased our corporate bond exposure to take advantage of the
attractive yields they were offering.
Q: WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF THE YEAR?
A: Pioneer Balanced Fund has the potential to offer investors the
best of both worlds by allowing exposure to the benefits of
stocks and bonds in one fund. Although stocks have been favored
over bonds by investors for quite some time, the disparity in the
returns between the equity market and the bond market have
narrowed, increasing the attractiveness of bonds. Going forward,
the Fund will continue to strive to provide investors with an
attractive level of capital growth and a steady stream of income.
8
<PAGE>
PIONEER BALANCED FUND
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS - 57.2%
BASIC MATERIALS - 1.1%
ALUMINUM - 0.5%
39,888 Alcoa, Inc.
$ 1,156,752
------------
CHEMICALS - 0.3%
18,900 Rohm and Haas Co.
$ 652,050
------------
PAPER & FOREST PRODUCTS - 0.3%
13,200 Weyerhaeuser Co.
$ 567,600
------------
TOTAL BASIC MATERIALS $ 2,376,402
------------
CAPITAL GOODS - 3.4%
AEROSPACE/DEFENSE - 0.7%
25,700 General Dynamics Corp.
$ 1,342,825
------------
ENGINEERING & CONSTRUCTION - 0.3%
22,700 Fluor Corp.
$ 717,888
------------
MACHINERY (DIVERSIFIED) - 0.6%
31,200 Ingersoll-Rand Co.
$ 1,255,800
------------
MANUFACTURING (DIVERSIFIED) - 1.8%
26,700 Honeywell International, Inc.
$ 899,456
36,600 Tyco International Ltd.
1,733,925
18,400 United Technologies Corp.
1,083,300
------------
$ 3,716,681
------------
TOTAL CAPITAL GOODS $ 7,033,194
------------
COMMUNICATION SERVICES - 4.5%
TELECOMMUNICATIONS (LONG DISTANCE) - 1.1%
69,000 AT&T Corp.
$ 2,182,125
------------
TELEPHONE - 3.4%
18,400 Bell Atlantic Corp.
$ 934,950
41,300 BellSouth Corp.
1,760,413
24,320 SBC Communications, Inc.
1,051,840
39,300 U.S. West Communications Group, Inc.
3,369,975
------------
$ 7,117,178
------------
TOTAL COMMUNICATION SERVICES $ 9,299,303
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
PIONEER BALANCED FUND
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
CONSUMER CYCLICALS - 5.4%
AUTO PARTS & EQUIPMENT - 0.1%
16,956 Visteon Corp.*
$ 205,589
------------
AUTOMOBILES - 2.7%
129,500 Ford Motor Corp.
$ 5,568,500
------------
HOMEBUILDING - 0.3%
22,700 Centex Corp.
$ 533,450
------------
PUBLISHING - 1.1%
42,500 McGraw Hill Co., Inc.
$ 2,295,000
------------
RETAIL (COMPUTERS & ELECTRONICS) - 0.6%
19,600 Best Buy Co., Inc.*
$ 1,239,700
------------
RETAIL (GENERAL MERCHANDISE) - 0.6%
37,800 Sears Roebuck & Co.
$ 1,233,225
------------
TOTAL CONSUMER CYCLICALS $ 11,075,464
------------
CONSUMER STAPLES - 5.4%
DISTRIBUTORS (FOOD & HEALTH) - 1.7%
41,500 SUPERVALU, Inc.
$ 791,093
66,100 Sysco Corp.
2,784,463
------------
$ 3,575,556
------------
ENTERTAINMENT - 0.7%
36,900 The Walt Disney Co., Inc.
$ 1,432,181
------------
FOODS - 1.0%
17,300 H.J. Heinz Co., Inc.
$ 756,875
17,300 The Quaker Oats Co.
1,299,663
------------
$ 2,056,538
------------
HOUSEHOLD PRODUCTS (NON-DURABLES) - 0.4%
15,800 Kimberly Clark Corp.
$ 906,525
------------
RESTAURANTS - 0.9%
115,900 Darden Restaurants, Inc.
$ 1,883,375
------------
SPECIALTY PRINTING - 0.7%
28,200 Deluxe Corp.
$ 664,463
31,800 R.R. Donnelley & Sons Co., Inc.
717,487
------------
$ 1,381,950
------------
TOTAL CONSUMER STAPLES $ 11,236,125
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
PIONEER BALANCED FUND
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
ENERGY - 4.3%
OIL (INTERNATIONAL INTEGRATED) - 3.6%
15,100 Chevron Corp.
$ 1,280,669
27,400 Exxon Mobil Corp.
2,150,900
50,300 Royal Dutch Petroleum Co.
3,096,594
18,400 Texaco Inc.
979,800
------------
$ 7,507,963
------------
OIL & GAS (REFINING & MARKETING) - 0.7%
41,200 Ashland, Inc.
$ 1,444,575
------------
TOTAL ENERGY $ 8,952,538
------------
FINANCIAL - 7.7%
BANKS (MAJOR REGIONAL) - 1.1%
52,900 Banc One Corp.
$ 1,405,156
27,900 Fleet Boston Financial Corp.
948,600
------------
$ 2,353,756
------------
BANKS (MONEY CENTER) - 1.9%
46,300 BankAmerica Corp.
$ 1,990,900
34,800 First Union Corp.
863,475
9,100 J.P. Morgan & Co., Inc.
1,002,138
------------
$ 3,856,513
------------
FINANCIAL (DIVERSIFIED) - 1.7%
36,600 American General Corp.
$ 2,232,600
23,600 Federal National Mortgage Association
1,231,625
------------
$ 3,464,225
------------
INSURANCE (LIFE/HEALTH) - 1.3%
48,340 Aegon NV (A.D.R.)
$ 1,722,112
25,700 Lincoln National Corp.
928,413
------------
$ 2,650,525
------------
INSURANCE (MULTI-LINE) - 1.4%
30,200 Cigna Corp.
$ 2,823,700
------------
INSURANCE (PROPERTY/CASUALTY) - 0.3%
33,900 Safeco Corp.
$ 673,762
------------
TOTAL FINANCIAL $ 15,822,481
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
PIONEER BALANCED FUND
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
HEALTHCARE - 6.9%
BIOTECHNOLOGY - 1.1%
43,315 Pharmacia Corp.
$ 2,238,844
------------
HEALTHCARE (DIVERSIFIED) - 0.7%
19,800 Allergan Inc.
$ 1,475,100
------------
HEALTHCARE (DRUGS/MAJOR PHARMACEUTICALS) - 1.4%
13,000 Eli Lilly & Co.
$ 1,298,375
33,300 Pfizer Inc.
1,598,400
------------
$ 2,896,775
------------
HEALTHCARE (HOSPITAL MANAGEMENT) - 1.6%
105,800 Columbia/HCA Healthcare Corp.
$ 3,213,675
------------
HEALTHCARE (MANAGED CARE) - 2.1%
50,600 United Healthcare Corp.
$ 4,338,950
------------
TOTAL HEALTHCARE $ 14,163,344
------------
TECHNOLOGY - 17.6%
COMMUNICATIONS EQUIPMENT - 1.3%
21,700 Lucent Technologies, Inc.
$ 1,285,725
45,400 Motorola, Inc.
1,319,438
------------
$ 2,605,163
------------
COMPUTERS (HARDWARE) - 4.4%
51,100 Compaq Computer Corp.
$ 1,306,243
40,500 Hewlett-Packard Co.
5,057,438
25,500 IBM Corp.
2,793,844
------------
$ 9,157,525
------------
COMPUTERS (PERIPHERALS) - 2.8%
75,600 EMC Corp.*
$ 5,816,475
------------
ELECTRONICS (COMPONENT DISTRIBUTORS) - 0.9%
30,200 Avnet Inc.
$ 1,789,350
------------
ELECTRONICS (INSTRUMENTATION) - 0.5%
15,462 Agilent Technologies Inc.*
$ 1,140,327
------------
ELECTRONICS (SEMICONDUCTORS) - 6.5%
56,300 Intel Corp.
$ 7,526,604
85,000 Texas Instruments, Inc.
5,838,438
------------
$ 13,365,042
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
PIONEER BALANCED FUND
<TABLE>
<CAPTION>
S&P/MOODY'S
SHARES RATINGS VALUE
<C> <S> <C> <C>
EQUIPMENT (SEMICONDUCTORS) - 1.2%
33,100 Teradyne Inc.* $ 2,432,850
------------
TOTAL TECHNOLOGY $ 36,306,732
------------
UTILITIES - 0.9%
ELECTRIC COMPANIES - 0.9%
20,800 DTE Energy Co. $ 635,700
33,100 Public Service Enterprise Group, Inc. 1,146,088
------------
TOTAL UTILITIES $ 1,781,788
------------
TOTAL COMMON STOCKS
(Cost $98,988,666) $118,047,371
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
<C> <S> <C> <C>
DEBT OBLIGATIONS - 37.3%
CORPORATE BONDS - 17.8%
BASIC MATERIALS - 2.9%
$ 500,000 CC/Ca AEI Resources, Inc., 11.5%, 12/15/06 (144A) $ 50,000
2,000,000 BB/BB3 Georgia Pacific, 9.875%, 11/1/21 2,111,400
850,000 B+/B2 Huntsman ICI Chemicals LLC, 10.125%, 7/1/09 854,250
475,000 BB/Ba3 Lyondell Chemical Co., 9.875%, 5/1/07 470,250
1,500,000 A+/A1 USX Corp., 9.375%, 2/15/12 1,653,030
1,000,000 A+/A1 Wachovia Corp., 6.15%, 3/15/09 889,750
------------
TOTAL BASIC MATERIALS $ 6,028,680
------------
CAPITAL GOODS - 0.5%
500,000 BB/Ba3 Azurix Corp., 10.75%, 2/15/10, (144A) $ 480,000
500,000 B+/B2 Metromedia Fiber Network, Inc., 10.0%,
11/15/08 495,000
------------
TOTAL CAPITAL GOODS $ 975,000
------------
COMMUNICATIONS SERVICES - 0.5%
325,000 B/B3 Crown Castle International Inc., 9.0%,
5/15/11 $ 299,000
740,000 B/B2 NEXTLINK Communications Inc., 10.75%, 6/1/09 730,750
------------
TOTAL COMMUNICATIONS SERVICES $ 1,029,750
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
PIONEER BALANCED FUND
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL S&P/MOODY'S
AMOUNT RATINGS VALUE
<C> <S> <C> <C>
CONSUMER CYCLICALS - 0.1%
$ 490,000 BBB/Baa3 Laidlaw Inc., 7.65%, 5/15/06 $ 122,500
------------
TOTAL CONSUMER CYCLICALS $ 122,500
------------
CONSUMER STAPLES - 2.5%
245,000 B+/B1 Adelphia Communications Corp., 7.875%,
5/1/09 $ 205,800
1,000,000 BBB-/Baa2 British Sky Broadcasting Group, 8.2%,
7/15/09 940,870
825,000 B+/B2 Charter Communications Holdings LLC, 8.25%,
4/1/07 730,125
1,700,000 B/B2 Echostar DBS Corp., 9.25%, 2/1/06 1,649,000
375,000 B-/B2 Emmis Communications Corp., 8.125%, 3/15/09 341,250
750,000 B-/B3 Premier Parks Inc., 9.75%, 6/15/07 723,750
685,000 B/B2 Wesco Distribution Inc., 9.125%, 6/1/08 626,775
------------
TOTAL CONSUMER STAPLES $ 5,217,570
------------
ENERGY - 4.5%
2,500,000 B+/B1 Ashland Oil Co., 8.8%, 11/15/12 $ 2,574,175
500,000 BB/Ba2 EOTT Energy Partners LP, 11.0%, 10/1/09 505,000
220,000 BB/Ba2 Parker Drilling, 9.75%, 11/15/06 212,300
4,100,000 BB-/B2 Phillips Petroleum Co., 8.86%, 5/15/22 4,091,923
820,000 BB-/B2 Pogo Producing Co., 5.5%, 6/15/06 684,224
475,000 BB-/Ba3 RBF Finance Co., 11.0%, 3/15/06 510,625
700,000 BB+/Ba1 Santa Fe Snyder Corp., 8.05%, 6/15/04 692,951
------------
TOTAL ENERGY $ 9,271,198
------------
FINANCIAL - 4.6%
1,010,000 BB+/Baa3 Capital One Financial Corp., 7.125%, 8/1/08 $ 910,010
1,000,000 BBB-/Baa3 Colonial Realty, LP, 7.0%, 7/14/07 898,610
4,000,000 A+/A1 Ford Motor Credit Corp., 9.14%, 12/30/14 4,091,920
240,000 BBB/Baa2 Forest City Enterprises Inc., 8.5%, 3/15/08 217,200
785,000 BBB/Baa3 Mack-Cali Realty Corp., 7.25%, 3/15/09 712,128
3,000,000 BBB+/A3 Washington Mutual Capital Inc., 8.375%,
6/1/27 2,679,210
------------
TOTAL FINANCIAL $ 9,509,078
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
PIONEER BALANCED FUND
<TABLE>
<CAPTION>
PRINCIPAL S&P/MOODY'S
AMOUNT RATINGS VALUE
<C> <S> <C> <C>
HEALTHCARE - 0.9%
$ 1,150,000 BBB-/Ba1 Beckman Instruments, Inc., 7.05%, 6/1/26 $ 1,077,539
875,000 BBB/Baa2 Quorum Health Group, 8.75%, 11/1/05 831,250
------------
TOTAL HEALTHCARE $ 1,908,789
------------
TECHNOLOGY - 0.3%
207,000.... B/B2 L-3 Communications Corp., 8.5%, 5/15/08 $ 190,440
500,000.... BBB+/Baa1 Sun Microsystems, 7.65%, 8/15/09 495,530
------------
TOTAL TECHNOLOGY $ 685,970
------------
TRANSPORTATION - 0.3%
750,000 BB/Ba2 Northwest Airlines, 8.52%, 4/7/04 $ 698,828
------------
TOTAL TRANSPORTATION $ 698,828
------------
UTILITIES - 0.7%
400,000 BB/Ba3 CMS Energy Corp., 7.5%, 1/15/09 $ 356,576
1,000,000 BBB-/Baa3 Great Lakes Power, 8.3%, 3/1/05 987,770
------------
TOTAL UTILITIES $ 1,344,346
------------
TOTAL CORPORATE BONDS $ 36,791,709
------------
U.S. GOVERNMENT OBLIGATIONS - 6.1%
4,090,000 U.S. Treasury Bonds, 8.125%, 8/15/19 $ 4,934,953
3,500,000 U.S. Treasury Bonds, 5.25%, 11/15/28 3,098,025
2,780,000 U.S. Treasury Notes, 5.5%, 7/31/01 2,752,395
1,750,000 U.S. Treasury Notes, 6.375%, 9/30/01 1,747,532
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS $ 12,532,905
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 13.4%
1,731,781 Federal National Mortgage Association, REMIC
Series 98-50, 6.5%, 9/25/28 $ 1,649,296
654,872 Government National Mortgage Association,
7.0%, 3/15/12 649,345
1,327,825 Government National Mortgage Association,
7.0%, 11/15/13 1,312,888
1,741,047 Government National Mortgage Association,
6.5%, 10/15/28 1,652,149
1,636,516 Government National Mortgage Association,
7.0%, 2/15/29 1,591,724
989,039 Government National Mortgage Association,
7.0%, 6/15/29 961,969
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
PIONEER BALANCED FUND
SCHEDULE OF INVESTMENTS 6/30/00 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C> <C>
$ 3,721,530 Government National Mortgage Association,
7.0%, 7/15/29 $ 3,619,672
1,983,503 Government National Mortgage Association,
7.0%, 8/15/29 1,929,213
2,894,105 Government National Mortgage Association,
7.5%, 8/15/29 2,874,570
1,966,002 Government National Mortgage Association,
7.5%, 1/15/30 1,952,732
2,995,633 Government National Mortgage Association,
8.0%, 4/15/30 3,029,513
2,897,502 Government National Mortgage Association II,
7.5%, 8/20/29 2,865,282
1,701,062 Government National Mortgage Association,
REMIC Series 1998-24A, 6.5%, 11/20/24 1,650,218
2,000,000 Government National Mortgage Association,
REMIC Series 98-13B, 6.5%, 12/20/25 1,854,580
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $ 27,593,151
------------
TOTAL DEBT OBLIGATIONS
(Cost $80,594,523) $ 76,917,765
------------
TOTAL INVESTMENT IN SECURITIES
(Cost $179,583,189) $194,965,136
------------
TEMPORARY CASH INVESTMENTS - 5.5%
COMMERCIAL PAPER - 5.5%
5,253,000 Citigroup, Inc., 6.88%, 7/3/00 $ 5,253,000
6,000,000 Household Finance Corp., 6.88%, 7/3/00 6,000,000
------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $11,253,000) $ 11,253,000
------------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY
CASH INVESTMENTS - 100.0%
(Cost $190,836,189) (a)(b) $206,218,136
------------
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
PIONEER BALANCED FUND
* Non-income producing security.
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 2000, the
value of these securities amounted to $530,000 or 0.3% of total net assets.
(a) At June 30, 2000, the net unrealized gain on investments based on cost for
federal income tax purposes of $190,836,189 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $ 28,016,406
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (12,634,459)
------------
Net unrealized gain $ 15,381,947
------------
------------
</TABLE>
(b) At December 31, 1999 the Fund had a net capital loss carryforward of
$11,948,378 which will expire in 2006 if not utilized.
Purchases and sales of securities (excluding temporary cash investments)
for the six months ended June 30, 2000, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- ------------
<S> <C> <C>
Long-term U.S. Government $14,161,913 $ 16,348,802
Other Long-term Securities 11,838,158 50,595,304
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
PIONEER BALANCED FUND
BALANCE SHEET 6/30/00 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary
cash investments of $11,253,000) (cost $190,836,189) $206,218,136
Cash 289
Receivables -
Investment securities sold 4,747,499
Fund shares sold 42,552
Dividends and interest 1,205,589
Other 385
------------
Total assets $212,214,450
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 13,906,941
Dividends 80,907
Due to affiliates 248,761
Accrued expenses 80,628
------------
Total liabilities $ 14,317,237
------------
NET ASSETS:
Paid-in capital $188,289,885
Accumulated undistributed net investment income 434,156
Accumulated net realized loss on investments (6,208,775)
Net unrealized gain on investments 15,381,947
------------
Total net assets $197,897,213
------------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $177,271,749/18,109,958 shares) $ 9.79
------------
Class B (based on $17,210,182/1,774,721 shares) $ 9.70
------------
Class C (based on $3,415,282/349,017 shares) $ 9.79
------------
MAXIMUM OFFERING PRICE:
Class A $ 10.25
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
PIONEER BALANCED FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED 6/30/00
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $8,559) $1,105,501
Interest 3,666,693
----------
Total investment income $ 4,772,194
-----------
EXPENSES:
Management fees $ 710,988
Transfer agent fees
Class A 250,098
Class B 39,275
Class C 12,039
Distribution fees
Class A 246,365
Class B 90,754
Class C 17,612
Administrative fees 32,499
Custodian fees 23,384
Registration fees 13,496
Professional fees 12,166
Printing 31,836
Fees and expenses of nonaffiliated trustees 14,182
Miscellaneous 8,459
----------
Total expenses $ 1,503,153
Less fees paid indirectly (35,318)
-----------
Net expenses $ 1,467,835
-----------
Net investment income $ 3,304,359
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments $ 5,739,603
Change in net unrealized gain on investments (4,847,674)
-----------
Net gain on investments $ 891,929
-----------
Net increase in net assets resulting from operations $ 4,196,288
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
PIONEER BALANCED FUND
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED 6/30/00 AND THE YEAR ENDED 12/31/99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6/30/00 YEAR ENDED
FROM OPERATIONS: (UNAUDITED) 12/31/99
<S> <C> <C>
Net investment income $ 3,304,359 $ 8,118,560
Net realized gain on investments 5,739,603 2,747,527
Change in net unrealized gain on investments (4,847,674) (3,396,381)
------------ ------------
Net increase in net assets resulting from
operations $ 4,196,288 $ 7,469,706
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.14 and $0.31 per share, respectively) $ (2,942,227) $ (7,418,676)
Class B ($0.10 and $0.22 per share, respectively) (193,805) (493,098)
Class C ($0.09 and $0.21 per share, respectively) (33,062) (91,525)
------------ ------------
Total distributions to shareholders $ (3,169,094) $ (8,003,299)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 11,861,061 $ 29,686,061
Reinvestment of distributions 2,788,934 7,090,271
Cost of shares repurchased (56,243,859) (81,713,110)
------------ ------------
Net decrease in net assets resulting from fund share
transactions $(41,593,864) $(44,936,778)
------------ ------------
Net decrease in net assets $(40,566,670) $(45,470,371)
NET ASSETS:
Beginning of period 238,463,883 283,934,254
------------ ------------
End of period (including accumulated undistributed net
investment income of $434,156 and $298,891,
respectively) $197,897,213 $238,463,883
============ ============
</TABLE>
<TABLE>
<CAPTION>
'00 SHARES '00 AMOUNT
CLASS A (UNAUDITED) (UNAUDITED) '99 SHARES '99 AMOUNT
<S> <C> <C> <C> <C>
Shares sold 1,007,045 $ 9,810,988 1,899,937 $ 18,442,478
Reinvestment of distributions 267,278 2,584,231 678,809 6,567,020
Less shares repurchased (5,256,283) (50,929,958) (6,916,596) (67,210,692)
---------- ------------ ---------- ------------
Net decrease (3,981,960) $(38,534,739) (4,337,850) $(42,201,194)
========== ============ ========== ============
CLASS B
Shares sold 146,827 $ 1,407,671 532,054 $ 5,134,426
Reinvestment of distributions 18,245 174,848 46,210 442,559
Less shares repurchased (451,476) (4,314,894) (872,686) (8,394,734)
---------- ------------ ---------- ------------
Net decrease (286,404) $ (2,732,375) (294,422) $ (2,817,749)
========== ============ ========== ============
CLASS C
Shares sold 66,476 $ 642,402 629,719 $ 6,109,157
Reinvestment of distributions 3,086 29,855 8,380 80,692
Less shares repurchased (104,374) (999,007) (641,571) (6,107,684)
---------- ------------ ---------- ------------
Net increase (decrease) (34,812) $ (326,750) (3,472) $ 82,165
========== ============ ========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
PIONEER BALANCED FUND
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/00
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6/30/00 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
CLASS A (UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.73 $ 9.74 $ 10.15 $ 10.65 $ 10.30 $ 9.11
-------- -------- -------- -------- -------- --------
Increase (decrease) from investment operations:
Net investment income $ 0.15 $ 0.31 $ 0.30 $ 0.41 $ 0.64 $ 0.66
Net realized and unrealized gain (loss) on
investments 0.05 (0.01) (0.18) 1.03 0.33 1.29
-------- -------- -------- -------- -------- --------
Net increase from investment operations $ 0.20 $ 0.30 $ 0.12 $ 1.44 $ 0.97 $ 1.95
Distributions to shareholders:
Net investment income (0.14) (0.31) (0.30) (0.40) (0.62) (0.65)
Net realized gain - - (0.23) (1.54) - (0.11)
-------- -------- -------- -------- -------- --------
Net increase (decrease) in net asset value $ 0.06 $ (0.01) $ (0.41) $ (0.50) $ 0.35 $ 1.19
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 9.79 $ 9.73 $ 9.74 $ 10.15 $ 10.65 $ 10.30
======== ======== ======== ======== ======== ========
Total return* 2.12% 3.15% 1.14% 13.92% 9.89% 22.00%
Ratio of net expenses to average net assets+ 1.28%** 1.23% 1.17% 1.19% 1.10% 1.13%
Ratio of net investment income to average net
assets+ 3.09%** 3.21% 2.92% 3.55% 6.17% 6.58%
Portfolio turnover rate 24%** 46% 94% 122% 31% 25%
Net assets, end of period (in thousands) $177,272 $214,866 $257,419 $274,695 $276,064 $281,639
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.25%** 1.21% 1.16% 1.17% 1.08% 1.11%
Net investment income 3.12%** 3.23% 2.93% 3.57% 6.19% 6.60%
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
PIONEER BALANCED FUND
FINANCIAL HIGHLIGHTS 6/30/00
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6/30/00 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 4/28/95 TO
CLASS B (UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.64 $ 9.65 $ 10.08 $ 10.59 $10.27 $ 9.55
------- ------- ------- ------- ------ ------
Increase (decrease) from investment
operations:
Net investment income $ 0.09 $ 0.22 $ 0.23 $ 0.32 $ 0.52 $ 0.39
Net realized and unrealized gain (loss) on
investments 0.07 (0.01) (0.21) 1.02 0.37 0.90
------- ------- ------- ------- ------ ------
Net increase from investment operations $ 0.16 $ 0.21 $ 0.02 $ 1.34 $ 0.89 $ 1.29
Distributions to shareholders:
Net investment income (0.10) (0.22) (0.22) (0.31) (0.52) (0.46)
In excess of net investment income - - - - (0.05) -
Net realized gain - - (0.23) (1.54) - (0.11)
------- ------- ------- ------- ------ ------
Net increase (decrease) in net asset value $ 0.06 $ (0.01) $ (0.43) $ (0.51) $ 0.32 $ 0.72
------- ------- ------- ------- ------ ------
Net asset value, end of period $ 9.70 $ 9.64 $ 9.65 $ 10.08 $10.59 $10.27
------- ------- ------- ------- ------ ------
Total return* 1.70% 2.24% 0.19% 12.98% 9.02% 13.74%
Ratio of net expenses to average net assets+ 2.21%** 2.14% 2.03% 2.01% 1.88% 1.88%**
Ratio of net investment income to average
net assets+ 2.16%** 2.30% 2.09% 2.65% 5.45% 5.83%**
Portfolio turnover rate 24%** 46% 94% 122% 31% 25%
Net assets, end of period (in thousands) $17,210 $19,865 $22,737 $13,789 $6,940 $1,800
Ratios assuming reduction of fees paid
indirectly:
Net expenses 2.19%** 2.12% 2.01% 1.99% 1.86% 1.78%**
Net investment income 2.18%** 2.32% 2.11% 2.67% 5.47% 5.93%**
</TABLE>
<TABLE>
<S> <C>
* Assumes initial investment at net asset value at the
beginning of each period, reinvestment of all distributions,
the complete redemption of the investment at net asset value
at the end of each period, and no sales charges. Total
return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
PIONEER BALANCED FUND
FINANCIAL HIGHLIGHTS 6/30/00
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
6/30/00 YEAR ENDED YEAR ENDED YEAR ENDED 1/31/96 TO
CLASS C (UNAUDITED) 12/31/99 12/31/98 12/31/97 12/31/96
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.73 $ 9.75 $10.17 $10.62 $10.39
------ ------ ------ ------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.09 $ 0.21 $ 0.23 $ 0.33 $ 0.49
Net realized and unrealized gain (loss) on
investments 0.06 (0.02) (0.20) 1.07 0.31
------ ------ ------ ------ ------
Net increase from investment operations $ 0.15 $ 0.19 $ 0.03 $ 1.40 $ 0.80
Distributions to shareholders:
Net investment income (0.09) (0.21) (0.22) (0.31) (0.49)
In excess of net investment income - - - - (0.08)
Net realized gain - - (0.23) (1.54) -
------ ------ ------ ------ ------
Net increase (decrease) in net asset value $ 0.06 $(0.02) $(0.42) $(0.45) $ 0.23
------ ------ ------ ------ ------
Net asset value, end of period $ 9.79 $ 9.73 $ 9.75 $10.17 $10.62
====== ====== ====== ====== ======
Total return* 1.56% 2.02% 0.27% 13.48% 8.12%
Ratio of net expenses to average net assets+ 2.46%** 2.38% 2.12% 2.03% 1.76%**
Ratio of net investment income to average net assets+ 1.91%** 2.09% 2.01% 2.68% 5.63%**
Portfolio turnover rate 24%** 46% 94% 122% 31%
Net assets, end of period (in thousands) $3,415 $3,734 $3,778 $1,900 $1,059
Ratios assuming reduction of fees paid indirectly:
Net expenses 2.43%** 2.35% 2.09% 1.98% 1.73%**
Net investment income 1.94%** 2.12% 2.04% 2.73% 5.66%**
</TABLE>
<TABLE>
<S> <C>
* Assumes initial investment at net asset value at the
beginning of each period, reinvestment of all distributions,
the complete redemption of the investment at net asset value
at the end of each period, and no sales charges. Total
return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
PIONEER BALANCED FUND
NOTES TO FINANCIAL STATEMENTS 6/30/00 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Pioneer Balanced Fund (the Fund) is a Delaware business trust
registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The Fund's investment objective
is to seek capital growth and current income.
The Fund offers three classes of shares - Class A, Class B and Class C
shares. Shares of Class A, Class B and Class C each represent an
interest in the same portfolio of investments of the Fund and have
equal rights to voting, redemptions, dividends and liquidation, except
that each class of shares can bear different transfer agent and
distribution fees and has exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B and Class
C shareholders, respectively.
The Fund's financial statements have been prepared in conformity with
generally accepted accounting principles that require the management of
the Fund to, among other things, make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure
of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during
the reporting periods. Actual results could differ from those
estimates. The following is a summary of significant accounting
policies consistently followed by the Fund, which are in conformity
with those generally accepted in the investment company industry:
A. SECURITY VALUATION
Security transactions are recorded as of trade date. The net asset
value is computed once daily, on each day the New York Stock
Exchange is open, as of the close of regular trading on the
Exchange. In computing the net asset value, debt securities are
valued at prices supplied by independent pricing services, which
consider such factors as Treasury spreads, yields, maturities and
ratings. Valuations may be supplemented by dealers and other
sources, as required. Equity 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, including interest on income bearing cash accounts, is
24
<PAGE>
PIONEER BALANCED FUND
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.
B. FEDERAL INCOME TAXES
It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income and net realized capital
gains, if any, to its shareholders. Therefore, no federal income tax
provision is required.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income
tax rules. Therefore, the source of the Fund's distributions may be
shown in the accompanying financial statements as either from or in
excess of net investment income or net realized gain on investment
transactions, or from paid-in capital, depending on the type of
book/tax differences that may exist.
C. FUND SHARES
The Fund records sales and repurchases of its shares as of trade
date. Pioneer Funds Distributor, Inc. (PFD), the principal
underwriter for the Fund and an indirect subsidiary of The Pioneer
Group, Inc. (PGI), earned $3,067 in underwriting commissions on the
sale of fund shares during the six months ended June 30, 2000.
D. CLASS ALLOCATIONS
Distribution fees are calculated based on the average daily net asset
values attributable to Class A, Class B and Class C shares of the
Fund, respectively. Shareholders of each class share all expenses
and fees paid to the transfer agent, Pioneering Services Corporation
(PSC), for their services, which are allocated based on the number
of accounts in each class and the ratable allocation of related
out-of-pocket expense (see Note 3). Income, common expenses and
realized and unrealized gains and losses are calculated at the Fund
level and allocated daily to each class of shares based on the
respective percentage of adjusted net assets at the beginning of the
day.
25
<PAGE>
PIONEER BALANCED FUND
NOTES TO FINANCIAL STATEMENTS 6/30/00 (UNAUDITED) (CONTINUED)
The Fund declares as daily dividends substantially all of it's net
investment income. All dividends are paid on a monthly basis.
Short-term capital gain distributions, if any, may be declared with
the daily dividends. Distributions to shareholders are recorded as
of the ex-dividend date. Distributions paid by the Fund with respect
to each class of shares are calculated in the same manner, at the
same time, and in the same amount, except that Class A, Class B and
Class C shares can bear different transfer agent and distribution
fees.
2. MANAGEMENT AGREEMENT
Pioneer Investment Management, Inc. (PIM), the Fund's investment
adviser, manages the Fund's portfolio and is a wholly owned subsidiary
of PGI. Management fees are calculated daily at the annual rate of
0.65% of the Fund's average daily net assets up to $1 billion; 0.60% of
the next $4 billion; and 0.55% of the excess over $5 billion.
In addition, under the management and administration agreements,
certain other services and costs, including accounting, regulatory
reporting and insurance premiums, are paid by the Fund. At June 30,
2000, $124,343 was payable to PIM related to management fees,
administrative fees and certain other services.
3. TRANSFER AGENT
PSC, a wholly owned subsidiary of PGI, provides substantially all
transfer agent and shareholder services to the Fund at negotiated
rates. Included in due to affiliates is $72,494 in transfer agent fees
payable to PSC at June 30, 2000.
4. DISTRIBUTION PLANS
The Fund adopted a Plan of Distribution for each class of shares (Class
A Plan, Class B Plan and Class C Plan) in accordance with Rule 12b-1 of
the Investment Company Act of 1940. Pursuant to the Class A Plan, the
Fund pays PFD a service fee of up to 0.25% of the average daily net
assets attributable to Class A shares in reimbursement of its actual
expenditures to finance activities primarily intended to result in the
sale of Class A shares. Pursuant to the Class B Plan and the Class C
Plan, the Fund pays PFD 1.00% of the average daily net assets
attributable to each class of shares. The fee consists of a 0.25%
service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution
services with regard to Class B and Class C
26
<PAGE>
PIONEER BALANCED FUND
shares. Included in due to affiliates is $51,924 in distribution fees
payable to PFD at June 30, 2000.
In addition, redemptions of each class of shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed
on redemptions of certain net asset value purchases of Class A shares
within one year of purchase. Class B shares that are redeemed within
six years of purchase are subject to a CDSC at declining rates
beginning at 4.00%, based on the lower of cost or market value of
shares being redeemed. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSCs are
paid to PFD. For the six months ended June 30, 2000 CDSCs in the amount
of $54,650 were paid to PFD.
5. EXPENSE OFFSETS
The Fund has entered into certain expense offset arrangements resulting
in a reduction in the Fund's total expenses. For the six months ended
June 30, 2000, the Fund's expenses were reduced by $35,318 under such
arrangements.
6. LINE OF CREDIT FACILITY
The Fund, along with certain other funds in the Pioneer Family of Funds
(the Funds), collectively participate in a $50 million committed,
unsecured revolving line of credit facility. Borrowings are used solely
for temporary or emergency purposes. The Fund may borrow up to the
lesser of $50 million or the limits set by its prospectus for
borrowings. Interest on collective borrowings of up to $25 million is
payable at the Federal Funds Rate plus 3/8% on an annualized basis, or
at the Federal Funds Rate plus 1/2% if the borrowing exceeds $25
million at any one time. The Funds pay an annual commitment fee for
this facility. The commitment fee is allocated among such Funds based
on their respective borrowing limits. For the six months ended June 30,
2000, the Fund had no borrowings under this agreement.
27
<PAGE>
PIONEER BALANCED FUND
--------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
<TABLE>
<S> <C>
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
Marguerite A. Piret Eric W. Reckard, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
</TABLE>
INVESTMENT ADVISER
Pioneer Investment Management, Inc.
CUSTODIAN
Brown Brothers Harriman & Co.
PRINCIPAL UNDERWRITER
Pioneer Funds Distributor, Inc.
LEGAL COUNSEL
Hale and Dorr LLP
SHAREOWNER SERVICES AND TRANSFER AGENT
Pioneering Services Corporation
28
<PAGE>
--------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
For information about any Pioneer mutual fund, please contact your
investment professional, or call Pioneer at 1-800-225-6292. Ask for a free
fund information kit, which includes a fund prospectus. Please read the
prospectus carefully before you invest or send money.
GROWTH FUNDS
UNITED STATES
Pioneer Growth Shares
Pioneer Micro-Cap Fund
Pioneer Mid-Cap Fund
Pioneer Mid-Cap Value Fund
Pioneer Science & Technology Fund
Pioneer Small Company Fund
Pioneer Tax-Managed Fund
INTERNATIONAL/GLOBAL
Pioneer Emerging Markets Fund
Pioneer Europe Fund
Pioneer Indo-Asia Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
GROWTH AND INCOME FUNDS
Pioneer Fund
Pioneer II
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Real Estate Shares
INCOME FUNDS
TAXABLE
Pioneer America Income Trust
Pioneer Bond Fund
Pioneer High Yield Fund
Pioneer Limited Maturity Bond Fund
Pioneer Strategic Income Fund
TAX-FREE
Pioneer Tax-Free Income Fund
MONEY MARKET FUND
Pioneer Cash Reserves Fund*
*An investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund seeks to preserve the value of your investment at $1 per share, it is
possible to lose money by investing in the Fund.
29
<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 WEBSITE: WWW.PIONEERFUNDS.COM
THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT
FUND PROSPECTUS.
<TABLE>
<S> <C> <C>
Pioneer Logo PIONEER INVESTMENT MANAGEMENT, INC. 8635-00-0800
60 STATE STREET G PIONEER FUNDS DISTRIBUTOR,
BOSTON, MASSACHUSETTS 02109 INC.
WWW.PIONEERFUNDS.COM RECYCLE LOGO PRINTED ON
RECYCLED PAPER
</TABLE>
