<PAGE>
[Pioneer Logo]
Pioneer
Interest
Shares, Inc.
SEMIANNUAL REPORT
JUNE 30, 1995
<PAGE>
PIONEER INTEREST SHARES, INC.
FELLOW SHAREOWNERS,
This semiannual report details performance of Pioneer Interest Shares, Inc., for
the first half of 1995. During the period your Fund successfully pursued its
objective of providing attractive current income by investing primarily in
investment-grade bonds (those securities rated BBB or better by Standard &
Poor's Corp. or Moody's Investors Service). The Fund benefited from a strong
bond market, in which prices of bonds increased as yields fell. As a result, in
the first half of the year, the Fund more than regained the ground it lost in
1994.
HOW YOUR FUND PERFORMED
The Fund's market price moved from $11.75 per share on December 31, 1994, to
$13.125 on June 30, 1995. Because your Fund is a "closed-end" fund, the actual
value of the securities it owns -- the net asset value, or NAV -- may be more or
less than is reflected in the market price of the shares on any given trading
day. The Fund's NAV moved from $12.65 per share on December 31, 1994, to $13.44
as of June 30. In other words, the market value of the Fund on June 30 reflected
a 2.3% "discount" compared to the value of the securities owned by your Fund.
During the first half of 1995, the Fund paid investors quarterly dividends
totaling $0.53 per share. As of June 30, the Fund provided a 12-month yield of
8.46% based on market price, and 8.26% based on net asset value.
As a closed-end fund, there are two key ways to measure your Fund's total
return. Looking at change in market price, an investment in the Fund returned
16.33% during the first half of the year, based on total return, which assumes
all dividends were reinvested but does not reflect any commissions. Based on the
change in net asset value, per share total return was 10.65%. In comparison, the
unmanaged Lehman Brothers Government/Corporate Bond Index returned 11.79% over
the same period.
MARKET OVERVIEW
So far, 1995 has been a very strong year for the bond market, which rebounded
from a difficult 1994. Last year, and once this February, the Federal Reserve
(Fed) raised key short-term interest rates with the aim of slowing the economy
and heading off the possibility of inflation. In the first quarter, there were
numerous signs that the economy had, indeed, cooled. The bond market reacted
positively -- pushing up bond prices and lowering yields -- based on the belief
that the Fed would not have to raise rates further in the near future. As it
turned out, the Fed did not have to raise rates; instead, on July 6 it lowered
rates by 0.25 percentage points.
Your management believes the bond market overreacted last year -- pushing prices
lower and yields higher than economic conditions merited. So, when market
psychology shifted, the resulting rally was stronger than it might have been
otherwise. The benchmark long-term U.S. Treasury bond provides a good example.
As of December 31, the interest rate on the 30-year Treasury bond stood at
7.88%; by the end of June, the rate was 6.62%. This drop was enough to push the
prices of those bonds up by more than 16% in six months.
HOW PIONEER MANAGED YOUR INVESTMENT
With the strength of the bond market buoyed by an economy with low inflation and
moderate growth, your management "stayed the course," making only modest changes
to the Fund's portfolio. We will only change investments when we see a
substantial new opportunity to help meet the Fund's goals -- not simply to
generate trading activity. As long-term interest rates fell to their lowest
levels since 1993, we adjusted the portfolio in anticipation of a possible rise
in rates. For that reason, we increased to 49.2% the portion of the portfolio
maturing in 5 years or less from 39.8% as of December 31; we also shortened the
average life to 8.7 years from 11.5 years. Bonds with shorter maturities
normally hold
<PAGE>
their value better than long-term bonds in a rising-rate environment. In terms
of market sectors, the Fund allocations remained largely the same.
PORTFOLIO MATURITY (AVERAGE LIFE)
(as of June 30, 1995)
[Pie chart depicting the following values:
0-2 Years 19%
2-5 Years 30%
5-7 Years 7%
7-10 Years 15%
10-20 Years 16%
20+ Years 13%
MANAGEMENT OUTLOOK
During the last few months, the economy has given mixed signals in terms of
further expansion or cooling down. We think the Fed is likely to take a "wait
and see" attitude for the rest of the summer, to gauge the effect of the rate
cut in July. We are optimistic that the economy will pick up steam and avoid the
significant downturn some have predicted. Your management will continue to look
for opportunities that present themselves in this environment, while emphasizing
current income and investment-grade quality issues.
Please refer to the following pages for audited financial statements and the
complete list of portfolio holdings as of June 30. If you have any questions
about your investment in Pioneer Interest Shares, contact your investment
representative, or call the Fund's sub-transfer agent, Mellon Securities
Transfer Services, at 1-800-526-0801.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President,
Pioneer Interest Shares, Inc.
August 10, 1995
2
<PAGE>
<TABLE>
PIONEER INTEREST SHARES, INC.
SCHEDULE OF INVESTMENTS
June 30, 1995
<CAPTION>
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT IN SECURITIES -- 100.0%
INDUSTRIALS -- 59.9%
$2,000,000 BB+/Baa3 AMR Corp., 9.75%, 2000............................................ $ 2,194,200
2,000,000 BB+/Baa3 AMR Corp., 9.88%, 2020............................................ 2,287,460
2,000,000 BB+/Baa3 Boise Cascade Corp., 9.90%, 2000.................................. 2,206,280
2,000,000 BBB-/Baa1 Bowater, Inc., 9.0%, 2009......................................... 2,307,340
4,000,000 AA-/A1 BP America Inc., 10.0%, 2018...................................... 4,516,080
2,000,000 BB+/Baa2 Delta Air Line Trust, 9.20%, 2014................................. 2,145,000
3,600,000 BB-/Ba1 Domtar Inc., 11.25%, 2017......................................... 3,843,000
2,000,000 BBB-/Baa3 Federal Paper Board Co., 10.0%, 2011.............................. 2,391,140
3,000,000 BBB-/Baa2 Georgia Pacific, 9.875%, 2021..................................... 3,389,190
2,000,000 BBB-/Baa2 Hanna (M.A.) Co., 9.375%, 2003.................................... 2,259,860
2,000,000 BB-/B1 Huntsman Corp., 10.625%, 2001..................................... 2,110,000
1,500,000 BB-/B1 Rexene Corp., 11.75%, 2004........................................ 1,605,000
5,500,000 BBB/Baa2 Shopko Stores, 9.25%, 2022........................................ 5,981,305
2,000,000 BB-/B1 Stone Container, 10.75%, 2002..................................... 2,095,000
4,000,000 BBB-/Ba1 Time Warner Inc., 9.15%, 2023..................................... 4,148,680
1,500,000 BB-/Ba3 Unisys Corp., 10.625%, 1999....................................... 1,612,500
4,000,000 BB+/Baa3 USX Corp., 9.375%, 2012........................................... 4,323,280
2,000,000 BB-/B1 Viacom International, 10.25%, 2001................................ 2,210,000
2,000,000 B/B2 Weirton Steel Corp., 10.75%, 2005................................. 1,870,000
2,000,000 BBB-/Ba1 Westinghouse Electric Corp., 8.625%, 2012......................... 2,077,020
2,250,000 A/A1 Westvaco Corp., 12.3%, 2015**..................................... 2,396,453
-----------
Total (Cost $55,746,228)...................................... $57,968,788
-----------
UTILITIES -- ELECTRIC -- 17.1%
4,000,000 NR/Aaa Big Rivers Electric Cooperative, 10.7%, 2017...................... $ 4,522,800
1,979,000 A/A2 Public Service Electric & Gas Co., 9.75%, 2020*................... 2,141,496
5,000,000 AAA/Aaa Rural Electric Cooperative (Deseret), 10.11%, 2017................ 5,597,700
4,000,000 BBB/Baa2 Texas Utilities Electric Co., 10.625%, 2020....................... 4,330,120
-----------
Total (Cost $16,501,001)...................................... $16,592,116
-----------
UTILITIES -- NATURAL GAS -- 7.9%
2,000,000 BB+/Baa3 Coastal Corp., 9.625%, 2012....................................... $ 2,273,260
2,000,000 BBB-/Baa2 Colorado Interstate Gas Co., 10.0%, 2005.......................... 2,186,720
3,000,000 BB+/Ba2 NorAm Energy Corp., 10.0%, 2019................................... 3,225,000
-----------
Total (Cost $7,305,640)....................................... $ 7,684,980
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
<TABLE>
PIONEER INTEREST SHARES, INC.
SCHEDULE OF INVESTMENTS
June 30, 1995 (Continued)
<CAPTION>
S&P/Moody's
Principal Ratings
Amount (unaudited) Value
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BANKS -- 1.8%
$ 65,890 NR/NR Bank of America National Trust & Savings Association, 10.5%,
2009.............................................................. $ 68,196
1,591,000 A/A3 Citicorp, 10.75%, 2015............................................ 1,685,855
-----------
Total (Cost $1,774,750)....................................... $ 1,754,051
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.6%
2,500,000 Federal National Mortgage Association, 9.65%, 2020................ $ 2,673,425
1,650,000 U.S. Treasury Notes, 8.5%, 1997................................... 1,723,211
1,500,000 U.S. Treasury Notes, 8.75%, 2000.................................. 1,680,000
2,230,000 U.S. Treasury Notes, 9.25%, 1996.................................. 2,269,716
-----------
Total (Cost $8,344,245)....................................... $ 8,346,352
-----------
FOREIGN GOVERNMENT AND GOVERNMENT SPONSORED -- 4.7%
4,000,000 A+/A2 Hydro-Quebec Series, 9.75%, 2018.................................. $ 4,520,720
-----------
Total (Cost $4,345,000)....................................... $ 4,520,720
-----------
TOTAL INVESTMENT IN SECURITIES
(COST $94,016,864) (a) (b)........................................ $96,867,007
===========
<FN>
* Bond was called on July 3, 1995.
** Bond was called on July 10, 1995.
(a) At June 30, 1995, the net unrealized appreciation on investments based on cost for federal
income tax purposes of $94,016,864 was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of
value over tax cost............................................................................ $ 3,762,735
Aggregate gross unrealized depreciation for all investments in which there is an excess of
tax cost over value............................................................................ (912,592)
------------
Net unrealized appreciation.................................................................... $ 2,850,143
============
(b) At December 31, 1994, the Fund had a capital loss carryforward of $7,607,211 which will expire
in 2002 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for the six months
ended June 30, 1995 were as follows:
</FN>
</TABLE>
<TABLE>
<CAPTION>
Purchases Sales
---------- ----------
<S> <C> <C>
Long-term U.S. Government.......................................................... 9,169,531 10,437,505
Other Long-term Securities......................................................... 17,580,420 14,824,083
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
<TABLE>
PIONEER INTEREST SHARES, INC.
BALANCE SHEET
June 30, 1995
<S> <C>
ASSETS:
Investment in securities, at value
(cost $94,016,864; see Schedule of
Investments and Note 1).............. $ 96,867,007
Receivables -
Interest............................. 2,370,797
Other.................................. 7,836
------------
Total assets....................... $ 99,245,640
------------
LIABILITIES:
Payables -
Due to bank.......................... $ 825,578
Accrued expenses -
Management fees (Note 2)............. 45,869
Other (Notes 2 and 3)................ 86,997
------------
Total liabilities.................. $ 958,444
------------
NET ASSETS:
Paid-in capital (Note 1)............... $104,642,424
Accumulated undistributed net
investment income.................... 76,335
Accumulated net realized loss on
investments.......................... (9,281,706)
Net unrealized gain on investments..... 2,850,143
------------
Total net assets (equivalent to
$13.44 per share based on
7,313,173 trust shares
outstanding)..................... $ 98,287,196
=============
</TABLE>
<TABLE>
PIONEER INTEREST SHARES, INC.
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1995
<S> <C>
INVESTMENT INCOME (NOTE 1):
Interest.............................. $ 4,441,525
------------
EXPENSES:
Management fees (Note 2).............. $ 269,854
Transfer agent fees (Note 3).......... 117,900
Registration fees..................... 19,220
Professional fees..................... 33,660
Accounting (Note 2)................... 18,848
Custodian fees........................ 10,920
Printing.............................. 11,460
Fees and expenses of nonaffiliated
directors........................... 10,920
Miscellaneous......................... 5,318
------------
Total expenses...................... $ 498,100
------------
Net investment income............. $ 3,943,425
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss on investments
(Note 1)............................ $ (1,674,495)
Net increase in unrealized gain on
investments......................... 7,337,703
------------
Net gain on investments............. $ 5,663,208
------------
Net increase in net assets
resulting from operations....... $ 9,606,633
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
<TABLE>
PIONEER INTEREST SHARES, INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1995 and the Year Ended December 31, 1994
<CAPTION>
Six Months Year
Ended Ended
June 30, December 31,
1995 1994
----------- ------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income............................................................ $ 3,943,425 $ 8,222,730
Net realized loss on investments................................................. (1,674,495) (4,301,326)
Net increase (decrease) in unrealized gain on investments........................ 7,337,703 (7,602,553)
----------- ------------
Net increase (decrease) in net assets resulting from operations................ $ 9,606,633 $ (3,681,149)
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ($0.53 and $1.13 per share, respectively).................. $(3,869,657) $ (8,220,163)
----------- ------------
Decrease in net assets resulting from distributions to shareholders............ $(3,869,657) $ (8,220,163)
----------- ------------
FROM TRUST SHARE TRANSACTIONS:
<CAPTION>
Shares
--------------------------
Net asset value of shares issued to shareholders in
reinvestment of dividends......................... 22,993 43,509 $ 297,731 $ 584,110
=========== =========== ------------ ------------
Net increase (decrease) in net assets......................................... $ 6,034,707 $(11,317,202)
NET ASSETS:
Beginning of period............................................................. 92,252,489 103,569,691
------------ ------------
End of period (including accumulated undistributed net investment income of
$76,335 and $2,567, respectively)............................................. $ 98,287,196 $ 92,252,489
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
<TABLE>
PIONEER INTEREST SHARES, INC.
FINANCIAL HIGHLIGHTS -- SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
<CAPTION>
Six
Months
Ended For the Years Ended December 31,
June 30, ---------------------------------------------------------------------
1995 1994 1993+ 1992 1991 1990 1989
------- ------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.......... $ 12.65 $ 14.29 $ 14.09 $ 14.15 $ 13.34 $ 13.73 $ 13.53
------- ------- -------- -------- ------- ------- -------
Increase (decrease) from investment operations
-
Net investment income........................ $ 0.54 $ 1.12 $ 1.11 $ 1.15 $ 1.17 $ 1.22 $ 1.27
Net realized and unrealized gain (loss) on
investments................................ 0.78 (1.63) 0.22 (0.06) 0.81 (0.39) 0.19
------- ------- -------- -------- ------- ------- -------
Total increase (decrease) from investment
operations............................... $ 1.32 $ (0.51) $ 1.33 $ 1.09 $ 1.98 $ 0.83 $ 1.46
Distributions to shareholders:
From net investment income................... (0.53) (1.13) (1.11) (1.15) (1.17) (1.22) (1.26)
In excess of net investment income........... -- -- (0.02) -- -- -- --
------- ------- -------- -------- ------- ------- -------
Net increase (decrease) in net asset value.... $ 0.79 $ (1.64) $ 0.20 $ (0.06) $ 0.81 $ (0.39) $ 0.20
------- ------- -------- -------- ------- ------- -------
Net asset value, end of period................ $ 13.44 $ 12.65 $ 14.29 $ 14.09 $ 14.15 $ 13.34 $ 13.73
======= ======= ======== ======== ======= ======= =======
Market value, end of period................... $13.125 $11.750 $ 13.875 $ 14.750 $14.250 $12.825 $13.750
Total return*................................. 16.33% (7.54)% 1.57% 12.24% 22.81% 0.71% 11.64%
Ratio of net operating expenses to average
net assets................................... 1.05%** 1.03% 0.82% 0.82% 0.82% 0.84% 0.85%
Ratio of net investment income to average
net assets................................... 8.30%** 8.46% 7.60% 8.20% 8.63% 9.16% 9.30%
Portfolio turnover rate....................... 55%** 65% 61% 44% 40% 32% 62%
Net assets, end of period (in thousands)...... $98,287 $92,252 $103,570 $100,596 $99,798 $93,386 $95,383
<FN>
* Assumes initial investment at market value at the beginning of each period, reinvestment of all distributions, the complete
redemption of the investment at the market value at the end of each period and no sales charges. Total return would be reduced
if sales charges were taken into account.
** Annualized.
+ Prior to the assumption of the management agreement on December 1, 1993 by Pioneering Management Corporation, the Fund was
advised by Mutual of Omaha Fund Management Company.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
PIONEER INTEREST SHARES, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
1. Pioneer Interest Shares, Inc. (the Fund) is a Massachusetts business trust
registered under the Investment Company Act of 1940 as a diversified, closed-end
management company. On December 1, 1993, Mutual of Omaha Fund Management Company
(FMC) was sold to The Pioneer Group, Inc. (PGI). Concurrent with the sale of FMC
to PGI, the Fund shareholders approved a new investment management agreement
with Pioneering Management Corporation (PMC), a wholly owned subsidiary of PGI.
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 the date the
securities are purchased or sold. Securities are valued based on valuations
furnished by an independent pricing service that utilizes a matrix system. This
matrix system reflects such factors as security prices, yields, maturities and
ratings, and is supplemented by dealer and exchange quotations and fair market
value information from other sources. Principal amounts of mortgage-backed
securities are adjusted for monthly paydowns. Premium and discount related to
certain mortgage-backed securities are amortized or accreted in proportion to
the underlying monthly paydowns. Market discount is accreted daily on a
straight-line basis. Temporary cash investments are valued at cost plus accrued
interest, which approximates market value. Interest income is recorded on the
accrual basis.
Gains and losses from 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 which have the
highest cost and also qualify for long-term capital gain or loss treatment for
tax purposes.
B. Federal 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 tax provisions are required.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with income tax rules. Therefore,
the source of the Fund's distributions may be shown in the accompanying
financial statements as either from or in excess of net investment income or net
realized gain on investment transactions, or from capital, depending on the type
of book/tax differences that may exist.
C. Dividend and Distributions -- All shareholders of the Fund are eligible
to participate in the Dividend and Distribution Reinvestment Plan (the Plan).
Under the Plan, participants will receive all dividends and distributions in
full and fractional shares of the Fund in lieu of cash when shares are trading
at or above net asset value. When shares are trading below net asset value,
dividends and distributions will be paid in cash. When the Fund declares
dividends or distributions, the number of shares to be credited to a
participant's account or the cash to be distributed to a participant, determined
as of the close of business of the New York Stock Exchange (Exchange) on the
Dividend Valuation Date, is computed as follows: (a) If the last sales price of
shares of the capital stock of the Fund is at or above net asset value, the Fund
will issue new full and fractional shares (computed to three decimals) of
capital stock at the greater of net asset value or 95% of such last sales price,
to be credited to the participant's account; or (b) if the last sales price of
shares of the capital stock of the Fund is below the net asset value, the Agent
will distribute the dividends or distributions to the participant in cash. There
are no brokerage or service fees chargeable to participants in the Plan;
however, this Plan may be amended in the future to
8
<PAGE>
PIONEER INTEREST SHARES, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 1995 (Continued)
impose a service charge. Participating in the Plan does not relieve
shareholders from any federal, state or local taxes which may be due on
dividends and distributions paid in any taxable year. Dividends and
distributions to shareholders are recorded as of the Dividend Valuation Date.
2. PMC is the Fund's investment adviser and manages the Fund's portfolio.
Management fees are calculated daily at the annual rate of 0.625% of the Fund's
average daily net assets up to $50,000,000 and 0.50% of such assets in excess of
$50,000,000.
In addition, under the management agreement, certain other services and
costs, including accounting, regulatory reporting and insurance premiums, are
paid by the Fund. Included in Accrued expenses -- Other is $1,180 in accounting
fees payable to PMC at June 30, 1995.
3. Pioneering Services Corporation (PSC), a wholly owned subsidiary of PGI,
through a sub-transfer agency agreement with Mellon Securities Transfer
Services, provides substantially all transfer agent and shareholder services to
the Fund at negotiated rates. Included in Accrued expenses -- Other is $42,992
in transfer agent fees payable to PSC at June 30, 1995.
9
<PAGE>
PIONEER INTEREST SHARES, INC.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND THE BOARD OF DIRECTORS OF PIONEER INTEREST SHARES, INC.:
We have audited the accompanying balance sheet of Pioneer Interest Shares,
Inc., including the schedule of investments, as of June 30, 1995, and the
related statement of operations, statements of changes in net assets and
financial highlights for the six months ended June 30, 1995 and the year ended
December 31, 1994. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for each of the five years ended December 31,
1993 were audited by other auditors whose report dated February 22, 1994
expressed an unqualified opinion.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1995, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Interest Shares, Inc., as of June 30, 1995, the results of its
operations and the changes in its net assets for the periods presented and
financial highlights for the six months ended June 30, 1995 and the year ended
December 31, 1994, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
July 28, 1995
10
<PAGE>
PIONEER INTEREST SHARES, INC.
60 State Street
Boston, Massachusetts 02109
OFFICERS DIRECTORS
JOHN F. COGAN, JR. JOHN F. COGAN, JR.
Chairman and President RICHARD H. EGDAHL, M.D.
DAVID D. TRIPPLE MARGARET B. W. GRAHAM
Executive Vice President JOHN W. KENDRICK
SHERMAN B. RUSS MARGUERITE A. PIRET
Vice President DAVID D. TRIPPLE
WILLIAM H. KEOUGH STEPHEN K. WEST
Treasurer JOHN WINTHROP PIONEER
JOSEPH P. BARRI INTEREST
Secretary SHARES, INC.
INVESTMENT ADVISER LEGAL COUNSEL
PIONEERING MANAGEMENT HALE AND DORR SEMIANNUAL REPORT
CORPORATION JUNE 30, 1995
PRINCIPAL UNDERWRITER TRANSFER AGENT
PIONEER FUNDS PIONEERING SERVICES
DISTRIBUTOR, INC. CORPORATION
CUSTODIAN SHAREHOLDER SERVICES AND
BROWN BROTHERS SUB-TRANSFER AGENT
HARRIMAN & CO. MELLON SECURITIES
TRANSFER SERVICES
INDEPENDENT PUBLIC
ACCOUNTANTS
ARTHUR ANDERSEN LLP
Please direct your questions about your account in Pioneer
Interest Shares to MELLON SECURITIES TRANSFER SERVICES
at 1-800-526-0801. (Telecommunication Device for the Deaf:
1-800-231-5469).
----------------------------------------------------------
Contact Mellon Securities Transfer Services in writing as
follows:
FOR: WRITE TO:
General inquiries, lost PO Box 590
dividend checks, change Ridgefield Park, NJ 07660
of address, account
consolidation
Lost stock certificates PO Box 467
Washington Bridge Station
New York, NY 10033
Stock Transfer PO Box 469
Washington Bridge Station
New York, NY 10033
Dividend reinvestment PO Box 750
plan (DRIP) Pittsburgh, PA 15230
----------------------------------------------------------
0895-2634
(Copyright)Pioneer Funds Distributor, Inc.
