<PAGE>
PIONEER FUND
60 State Street
Boston, Massachusetts 02109
OFFICERS
JOHN F. COGAN, JR., Chairman and President
DAVID D. TRIPPLE, Executive Vice President
JOHN A. CAREY, Vice President
WILLIAM H. KEOUGH, Treasurer
JOSEPH P. BARRI, Secretary
TRUSTEES
JOHN F. COGAN, JR.
RICHARD H. EGDAHL, M.D.
MARGARET B.W. GRAHAM
JOHN W. KENDRICK
MARGUERITE A. PIRET
DAVID D. TRIPPLE
STEPHEN K. WEST
JOHN WINTHROP
INVESTMENT ADVISER
PIONEERING MANAGEMENT CORPORATION
PRINCIPAL UNDERWRITER
PIONEER FUNDS DISTRIBUTOR, INC.
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
INDEPENDENT PUBLIC ACCOUNTANTS
ARTHUR ANDERSEN LLP
LEGAL COUNSEL
HALE AND DORR
SERVICES AND SHAREHOLDER TRANSFER AGENT
PIONEERING SERVICES CORPORATION
60 State Street
Boston, Massachusetts 02109
Please call Pioneer for information on:
Existing accounts, new accounts,
prospectuses, applications, and
service forms 1-800-225-6292
Fund yields and prices 1-800-225-4321
Toll-free fax 1-800-225-4240
Retirement plans 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
When distributed to persons who are not shareholders of the Fund, this report
must be accompanied by an official prospectus, which discusses the
objectives, policies, sales charges, and other information about the Fund.
0895-2628
((c))Pioneer Funds Distributor, Inc.
[Pioneer logo]
Pioneer
Fund
SEMIANNUAL REPORT
JUNE 30, 1995
<PAGE>
To the Shareholders:
The stock market continued to move forward at a brisk pace during the second
quarter of 1995, gaining momentum from the first three months of the year.
The Dow Jones Industrial Average reached another new milestone, closing above
4500 on June 30. Trading volume was very heavy. All in all, it was an
excellent period for domestic equity investors, as almost every major
industry group in the United States showed a gain. However, there were clear
market favorites. Technology stocks, especially semiconductor manufacturers
and software suppliers, were by far the most popular investments, with
runner-up status going to the financials, including banks, savings and loans
and securities brokers. Meanwhile, with a few exceptions, consumer, energy,
industrial, and utility stocks -- although they, too, had gains -- did not go
up to anywhere near the same extent.
At Pioneer we have witnessed many "sector rotations" over the years, with
groups of stocks moving in and out of favor with investors. Sometimes we have
been fortunate enough to have selected exactly the right stocks at exactly
the right time for Pioneer Fund. More normally, the Fund's diversified
portfolio includes some stocks that are in favor with the market and some
that are not. We have always made a strenuous effort at Pioneer to invest for
the long term, according to our independent analysis of investment value,
rather than follow every near-term trend.
How Your Fund Performed
We are happy to report these results for Pioneer Fund over the quarter and
six months ended June 30, 1995:
(bullet) Shareholders received $0.11 per share in quarterly income dividends
in March and June, for a total of $0.22 per share.
(bullet) Net asset value was $24.28 per share as of June 30, versus $21.32 on
December 31, 1994.
(bullet) The Fund achieved a total return of 14.96% for the six months ended
June 30, 1995, based on the change in net asset value and assuming
reinvestment of the quarterly dividends. For shareholders who paid the
maximum 5.75% sales charge, the Fund's total return was 8.35%. In the most
recent quarter, the Fund returned 6.79% at net asset value and 0.66% at
public offering price. By comparison, the unmanaged Standard & Poor's 500
Index gained 20.15% over the past six months and 9.52% for the quarter.
(bullet) For the one-, five- and 10-year periods ended June 30, the Fund's
average annual total returns, based on net asset value were, respectively,
17.32%, 10.65% and 12.00%.Over the same periods, shareholders who paid the
maximum 5.75% sales charge and reinvested distributions at net asset value
would have enjoyed returns of 10.57%, 9.34% and 11.34%, respectively.
How Pioneer Managed Your Investment
We were not quite as active during the second quarter of 1995 as we were
during the first. Nevertheless, we did add eight positions to the portfolio
and liquidate nine. Two holdings, Park Communications and Stauffer
Communications, were acquired by other companies at substantial premiums over
the Fund's average cost. The other liquidations were of stocks that had
reached our price objectives or that compared unfavorably in our mind with
stocks we wished to purchase. Since our policy is for the Fund to be
substantially fully invested at all times, your managers often must move
aside older investments to make room for newer ones.
Some of the new investments were York International, a leading manufacturer
of air-conditioning equipment; Gehe and Schwarz Pharma, German-based
distributors and marketers of pharmaceutical products; Apple Computer and
Compaq Computer, manufacturers of personal computers; and Edmark, a growing
company in the field of educational software. Darden Restaurants came to the
Fund as a spin-off from General Mills. The final addition was Sensormatic
Electronics, producer of anti-theft devices for retailers.
Past performance does not guarantee future results. Share price and return
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
<PAGE>
Looking Ahead
As we have noted, the stock market in general has been very strong this year,
but some sectors of the market have done much better than others. At this
juncture, stocks in the Fund's portfolio still appear to be quite
undervalued. When we have felt that market enthusiasm has carried prices
ahead of current values, we have sold positions. Investing is an imperfect
undertaking at best, and we can only assure you that we will always make our
best effort to provide Pioneer Fund shareholders with satisfactory returns
over the long term.
The following pages contain the Fund's audited financial statements and list
of portfolio holdings as of June 30, 1995. If you have questions about your
investment in Pioneer Fund, please call your investment representative, or
get in touch with us directly at 1-800-225-6292. Thank you for your support.
Respectfully submitted,
[signature of John F. Cogan, Jr.]
John F. Cogan, Jr.
Chairman and President,
Pioneer Fund
August 10, 1995
2
<PAGE>
PIONEER FUND
SCHEDULE OF INVESTMENTS--June 30, 1995
<TABLE>
<CAPTION>
Principal
Amount Value
-------- -------------
<S> <C> <C>
INVESTMENT IN SECURITIES--99.7%
CONVERTIBLE DEBENTURES--0.2%
$3,750,000 Unisys Corp., Sub. Conv. Notes, 8.25%, 2000 $ 4,162,500
-----------
TOTAL CONVERTIBLE DEBENTURES (Cost $3,750,000) $ 4,162,500
-----------
Shares
--------
PREFERRED STOCKS--3.1%
10,000 GEA AG $ 3,207,861
164,900 General Motors (Class H) 6,513,550
1,200,000 Greif Bros. Corp. (Class A) 28,050,000
18,600 Henkel KGAA 7,162,633
136,800 Rouse Co. (Convertible) 6,976,800
1,666 Strabag Bau AG 359,897
73,974 Times Mirror Co. (Series B) 1,766,129
19,445 Wella AG 15,453,724
-----------
TOTAL PREFERRED STOCKS (Cost $33,200,079) $ 69,490,594
-----------
COMMON STOCKS--96.4%
BASIC INDUSTRIES--13.2%
Chemicals--5.0%
124,800 Air Products and Chemicals, Inc. $ 6,957,600
268,600 Bush Boake Allen, Inc.* 8,158,725
479,000 du Pont (E.I.) de Nemours and Co. 32,931,250
133,750 Fuller Company (H.B.) 4,948,750
94,000 Geon Company, Inc. 2,702,500
200,993 Guardsman Products, Inc. 2,587,785
659,451 Lilly Industrial, Inc. (Class A) 7,748,549
265,400 Pratt & Lambert, Inc. 6,203,725
445,525 Quaker Chemical Corp.+ 7,239,781
1,005,158 Schulman (A.), Inc. 28,898,293
80,000 Sigma-Aldrich Corp. 3,930,000
-----------
$112,306,958
-----------
Containers/Cartons--0.1%
200,000 Mayr-Melnhof Karton AG (A.D.R.) $ 2,900,000
-----------
Cosmetics--0.3%
8,000 Beiersdorf AG $ 6,357,922
-----------
Forest Products--1.3%
694,500 Louisiana-Pacific Corp. $ 18,230,625
245,000 Weyerhaeuser Co. 11,545,625
-----------
$ 29,776,250
-----------
Iron & Steel--0.6%
676,200 Allegheny Ludlum Corp. $ 13,354,950
-----------
Metals & Mining--1.9%
250,000 Ashanti Goldfields Co., Ltd. (G.D.R.) $ 5,812,500
440,300 Cyprus Amax Minerals Co. 12,548,550
438,000 Phelps Dodge Corp. 25,842,000
-----------
$ 44,203,050
-----------
Paper Products--4.0%
204,000 Consolidated Papers, Inc. $ 11,755,500
275,500 Kimberly Clark Corp. 16,495,562
403,900 St. Joe Paper Company 25,647,650
473,800 Union Camp Corp. 27,421,175
238,600 Westvaco Corp. 10,558,050
-----------
$ 91,877,937
-----------
TOTAL BASIC INDUSTRIES $300,777,067
-----------
CAPITAL GOODS--6.2%
Construction & Engineering--1.7%
306,600 Armstrong World Industries, Inc. $ 15,368,325
217,656 Gilbert Associates, Inc. (Class A) 2,829,531
237,400 Martin Marietta Materials, Inc. 4,748,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
PIONEER FUND
SCHEDULE OF INVESTMENTS (Continued)
<TABLE>
<CAPTION>
Shares Value
-------- ----------------
<S> <C> <C>
151,000 The Sherwin Williams Co. $ 5,379,375
165,550 The Stanley Works 6,270,206
15,000 Strabag Bau AG 4,269,923
---------------
$ 38,865,360
---------------
Producer Goods--4.5%
187,200 Caterpillar, Inc. $ 12,027,600
30,000 Dover Corp. 2,182,500
491,907 Gorman-Rupp Co.+ 7,132,652
143,128 Hubbell Inc. (Class B) 8,086,732
90,400 Illinois Tool Works 4,972,000
172,200 Ingersoll-Rand Co. 6,586,650
122,600 Johnson Controls, Inc. 6,926,900
145,000 Lawson Products, Inc. 3,842,500
176,800 Mine Safety Appliances Co. 9,370,400
237,643 Raymond Corp.* 4,871,682
345,714 Smith (A.O.) Co. (Class B) 8,124,279
249,600 Tecumseh Products Co. (Class A) 10,982,400
83,200 Tecumseh Products Co. (Class B) 3,640,000
243,000 Tennant Co. 6,561,000
145,670 The Timken Co. 6,719,029
---------------
$102,026,324
---------------
TOTAL CAPITAL GOODS $140,891,684
---------------
CONSUMER DURABLES--6.8%
Appliances--0.4%
110,000 Whirlpool Corp. $ 6,050,000
55,000 York International Corp. 2,475,000
---------------
$ 8,525,000
---------------
Motor Vehicles--6.4%
664,300 Chrysler Corp. $ 31,803,362
152,800 Dana Corp. 4,373,900
2,041,000 Ford Motor Co. 60,719,750
490,000 General Motors Corp. 22,968,750
263,000 Genuine Parts Co. 9,961,125
186,825 PACCAR, Inc. 8,734,069
307,750 Standard Products Co. 6,693,562
---------------
$145,254,518
---------------
TOTAL CONSUMER DURABLES $153,779,518
---------------
NON-DURABLES--16.5%
Agriculture & Food--7.9%
238,600 Campbell Soups Co. $ 11,691,400
118,000 Coca-Cola Femsa, S.A. (A.D.R.) 2,507,500
193,800 CPC International, Inc. 11,967,150
320,200 Dean Foods Co. 8,965,600
309,900 General Mills, Inc. 15,921,112
570,100 Heinz, H.J. & Co. 25,298,187
235,600 Hershey Foods Corp. 13,016,900
100,000 Kellogg Co. 7,137,500
215,000 McCormick & Co. 4,622,500
210,000 Nash Finch Co. 3,412,500
280,000 Pepsico, Inc. 12,775,000
757,800 Quaker Oats Co. 24,912,675
888,100 Sara Lee Corp. 25,310,850
29,600 J.M. Smucker Co. (Class A) 654,900
221,800 J.M. Smucker Co. (Class B) 4,463,725
217,600 Sysco Corp. 6,419,200
---------------
$179,076,699
---------------
Home Products--0.2%
140,998 Lancaster Colony Corp. $ 5,040,678
500 Wella AG 404,595
---------------
$ 5,445,273
------------
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
Shares Value
-------- ----------------
Retail Food--1.8%
500,000 Albertson's, Inc. $ 14,875,000
172,200 Hannaford Bros. Co. 4,907,700
747,700 Weis Markets, Inc. 20,748,675
---------------
$ 40,531,375
---------------
Retail Non-Food--6.1%
122,875 Brown Group $ 2,795,406
353,900 Circuit City Stores, Inc. 11,192,088
95,000 Dayton-Hudson Corp. 6,816,250
13,800 Douglas Holdings AG 5,224,478
24,000 Karstadt AG 10,525,251
50,000 The Limited, Inc. 1,100,000
560,800 The May Department Stores Co. 23,343,300
398,900 Mercantile Stores Co., Inc. 18,548,850
424,800 J.C. Penney Co., Inc. 20,390,400
274,400 Sears Roebuck & Co. 16,429,700
226,695 Strawbridge & Clothier (Class A) 4,533,900
356,400 Walgreen Co. 17,864,550
---------------
$138,764,173
---------------
Textiles/Clothes--0.5%
286,200 Russell Corp. $ 8,228,250
417,600 Superior Surgical Mfg. Co., Inc. 4,384,800
---------------
$ 12,613,050
---------------
TOTAL NON-DURABLES $376,430,570
---------------
ENERGY--4.9%
Oil & Gas Extraction--4.9%
326,500 Amoco Corp. $ 21,753,063
19,800 Ashland, Inc. 695,475
107,440 Atlantic Richfield Co. 11,791,540
480,500 Chevron Corp. 22,403,312
292,950 North European Oil Royalty Trust 3,954,825
203,100 Phillips Petroleum Co. 6,778,462
144,800 Sabine Royalty Trust 1,466,100
848,800 Sonat, Inc. 25,888,400
267,000 Texaco, Inc. 17,521,875
---------------
TOTAL ENERGY $112,253,052
---------------
FINANCIAL--11.2%
Commercial Bank--8.8%
327,100 AmSouth Bancorporation $ 10,671,637
1,014,200 Bank of New York Co., Inc. 40,948,325
180,000 BayBanks, Inc. 14,265,000
569,800 Boatmen's Bancshares, Inc. 20,085,450
700,000 CoreStates Financial Corp. 24,412,500
60,000 First American Corp.--Tennessee 2,152,500
95,000 First Tennessee National Corp. 4,405,625
998,265 Huntington Bancshares, Inc. 20,714,012
462,632 NBD Bancorp, Inc 14,804,224
1,297,324 National City Corp. 38,108,893
252,900 State Street Boston Corp. 9,325,688
---------------
$199,893,854
---------------
Life Insurance--0.6%
414,800 U.S. Healthcare, Inc. $ 12,703,250
---------------
Insurance--General--1.0%
380,200 SAFECO Corp. $ 21,837,738
---------------
Investments--0.8%
500,000 T. Rowe Price Associates, Inc. $ 19,250,000
---------------
TOTAL FINANCIAL $253,684,842
------------
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
Shares Value
-------- ----------------
SERVICES--17.3%
Broadcasting & Media--2.6%
900,200 Baton Broadcasting, Inc.* $ 4,914,471
397,400 CBS, Inc. 26,625,800
515,874 Cox Communications, Inc. (Class A)* 9,995,059
659,820 Gaylord Entertainment Co. (Class A) 16,660,455
---------------
$ 58,195,785
---------------
Health Services & Personal Care--1.1%
258,200 Becton Dickinson & Co. $ 15,040,150
339,800 The West Co., Inc. 9,514,400
---------------
$ 24,554,550
---------------
Pharmaceuticals--6.9%
246,831 Block Drug Company, Inc. (Class A) $ 8,330,586
870,000 CIBA-Geigy Ltd. (A.D.R.) 31,866,534
12,000 Gehe AG 5,505,383
350,000 Johnson & Johnson 23,668,750
3,898 Roche Holdings Ltd. Genusschein 25,104,730
428,350 Schering AG, ORD 29,895,679
672,800 Schering-Plough Corp. 29,687,300
50,000 Schwarz Pharma AG* 2,095,224
---------------
$156,154,186
---------------
Publishing--5.7%
320,300 Central Newspapers, Inc. (Class A) $ 9,488,888
154,500 Dow Jones & Co., Inc. 5,697,187
200,000 The Dun & Bradstreet Corp. 10,500,000
125,000 Educational Insights, Inc.* 750,000
63,520 GC Companies, Inc.* 2,080,280
455,200 Harcourt General, Inc. 19,346,000
392,300 Houghton Mifflin Co. 20,693,825
241,000 McGraw-Hill, Inc. 18,285,875
465,500 New York Times Co. (Class A) 10,939,250
65,930 William H. Sadlier, Inc.+ 304,926
125,000 Scripps (E.W.) Co. (Class A) 4,031,250
100,000 Thomas Nelson, Inc. 1,925,000
436,800 John Wiley & Sons, Inc. (Class A)+ 24,843,000
---------------
$128,885,481
---------------
Restaurants & Food Services--0.1%
309,900 Darden Restaurants, Inc.* $ 3,370,163
---------------
Services--0.9%
163,700 Bowne & Co., Inc. $ 2,803,362
393,600 R. R. Donnelley & Sons Co. 14,169,600
185,500 The Standard Register Co. 3,524,500
---------------
$ 20,497,462
---------------
TOTAL SERVICES $391,657,627
---------------
TECHNOLOGY--4.5%
Business Machines--3.1%
100,000 Apple Computer, Inc. $ 4,643,750
100,000 Compaq Computer Corp.* 4,537,500
440,000 Hewlett Packard Co. 32,780,000
81,000 International Business Machines Corp. 7,776,000
200,000 Sun Microsystems, Inc.* 9,700,000
1,068,100 Unisys Corp.* 11,615,588
---------------
$ 71,052,838
---------------
Computer Software--0.8%
281,000 Aspen Technologies, Inc.* $ 7,165,500
83,000 Edmark Corp.* 3,351,125
115,000 The Learning Company* 4,132,813
85,000 Legent Corp.* 3,718,750
---------------
$ 18,368,188
------------
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
Shares Value
-------- ----------------
Electronics--0.6%
125,000 Motorola Corp. $ 8,390,625
50,000 Sensormatic Electronics Corp. 1,775,000
20,031 US Robotics* 2,183,379
---------------
$ 12,349,004
---------------
TOTAL TECHNOLOGY $ 101,770,030
---------------
TRANSPORTATION--1.9%
Railroad & Bus--1.9%
165,000 Burlington Northern, Inc. $ 10,456,875
120,000 Conrail, Inc. 6,675,000
237,900 Norfolk Southern Corp. 16,028,512
182,860 Union Pacific Corp. 10,125,873
---------------
TOTAL TRANSPORTATION $ 43,286,260
---------------
UTILITIES--13.9%
Electric Utility--2.1%
975,200 Allegheny Power System, Inc. $ 22,917,200
380,800 Empire District Electric Co. 6,616,400
438,600 IES Industries, Inc. 9,758,850
162,300 Sierra Pacific Resources 3,530,025
111,000 Upper Peninsula Energy Co. 1,887,000
95,000 Western Resources, Inc. 2,933,125
---------------
$ 47,642,600
---------------
Gas Utility--1.2%
170,850 Connecticut Energy Corp. $ 3,352,931
574,650 Indiana Energy, Inc. 10,918,350
134,300 Northwest Natural Gas Co. 4,196,875
214,450 NUI Corp. 3,592,037
331,500 Public Service of North Carolina, Inc. 5,428,313
---------------
$ 27,488,506
---------------
Telecommunications--9.8%
231,000 Airtouch Communications, Inc.* $ 6,583,500
476,300 American Telephone & Telegraph Co. 25,303,438
505,000 Ameritech Corp. 22,220,000
580,000 Bell Atlantic Corp. 32,480,000
564,900 BellSouth Corp. 35,871,150
383,200 GTE Corp. 13,076,700
754,400 Lincoln Telecommunications Co. 11,881,800
594,600 Pacific Telesis Group 15,905,550
500,000 Royal PTT Nederland NV 18,000,000
375,000 Tele Danmark A/S (A.D.R.) 10,500,000
741,851 US West, Inc. 30,879,548
---------------
$ 222,701,686
---------------
Utility/Other--0.8%
276,300 American Waterworks Company, Inc. $ 8,772,525
141,900 Aquarion Co. 3,263,700
190,050 E'Town Corp. 5,155,106
40,700 SJW Corp. 1,460,113
---------------
$ 18,651,444
---------------
TOTAL UTILITIES $ 316,484,236
---------------
TOTAL COMMON STOCKS (Cost $1,481,781,547) $2,191,014,886
---------------
TOTAL INVESTMENT IN SECURITIES (Cost
$1,518,731,626) (a) $2,264,667,980
---------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
----------- -------------
<S> <C> <C>
TEMPORARY CASH INVESTMENT--0.3%
Commercial Paper--0.3%
$6,084,000 Household Finance Corp., 6.08%, 7/3/95 $ 6,087,084
-----------
TOTAL TEMPORARY CASH INVESTMENT (COST
$6,084,000) $ 6,087,084
-----------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY
CASH INVESTMENT--100% (COST $1,524,815,626) $2,270,755,064
===========
(*) Non-income producing security.
(+) Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company (see Note 5).
((a)) At June 30, 1995, the net unrealized appreciation on investments based
on cost for federal income tax purposes of $1,518,731,626 was as
follows:
Aggregate gross unrealized appreciation for
all investments in which there is an excess
of value over tax cost $ 763,012,836
Aggregate gross unrealized depreciation for
all investments in which there is an excess
of tax cost over value (17,076,482)
-----------
Net unrealized appreciation $ 745,936,354
===========
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended June 30, 1995 aggregated approximately $200,747,000 and
$182,430,000, respectively.
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
PIONEER FUND
BALANCE SHEET--JUNE 30, 1995
(Dollars in Thousands
Except Per Share Amounts)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value
(including temporary cash investment of
$6,087) (cost $1,524,816; see Schedule of
Investments and Notes 1 and 5) $2,270,755
Cash 953
Receivables--
Investment securities sold 2,754
Dividends and interest 4,551
Trust shares sold 3,805
Other 41
---------
Total assets $2,282,859
---------
LIABILITIES:
Payables--
Investment securities purchased $ 6,213
Trust shares repurchased 950
Accrued expenses--
Management fees (Note 2) 113
Other (Notes 2, 3 and 4) 1,392
---------
Total liabilities $ 8,668
---------
NET ASSETS:
Paid-in capital (Note 1) $1,461,998
Accumulated undistributed net investment
income 3,126
Accumulated net realized gain on investments 63,131
Net unrealized gain on investments 745,936
---------
Total net assets (equivalent to $24.28 per
share based on 93,655,633 shares
outstanding--unlimited number of shares
authorized) $2,274,191
=========
</TABLE>
PIONEER FUND
STATEMENT OF OPERATIONS--For The Six
Months Ended June 30, 1995
(Dollars in Thousands)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME (Note 1):
Dividends (net of foreign taxes withheld of $359) $ 32,706
Interest 464
-------
Total investment income $ 33,170
-------
EXPENSES:
Management fees (Note 2) $ 4,850
Distribution fees (Note 4) 1,742
Transfer agent fees (Note 3) 2,980
Registration fees 31
Professional fees 62
Accounting (Note 2) 41
Custodian fees 98
Printing 46
Fees and expenses of nonaffiliated trustees 29
Miscellaneous 74
-------
Total expenses $ 9,953
-------
Net investment income $ 23,217
-------
Realized and Unrealized Gain on Investments:
Net realized gain on investments $ 63,072
Increase in net unrealized gain on investments 212,346
-------
Net gain on investments $275,418
-------
Net increase in net assets resulting from
operations $298,635
=======
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
PIONEER FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1995 and the Year Ended December 31, 1994
(Dollars in Thousands Except Per Share Amounts)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
June 30, December31,
1995 1994
------------ -----------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 23,217 $ 43,905
Net realized gain on investments 63,072 115,130
Increase (decrease) in net unrealized gain on investments 212,346 (170,391)
---------- ---------
Net increase (decrease) in net assets resulting from operations $ 298,635 $ (11,356)
---------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ($0.22 and $0.49 per share, respectively) $ (20,548) $ (43,571)
Net realized gain on investments ($0.00 and $1.30 per share, respectively) (4) (115,221)
---------- ---------
Decrease in net assets resulting from distributions to shareholders $ (20,552) $ (158,792)
---------- ---------
FROM TRUST SHARE TRANSACTIONS: Shares
----------------------
Net proceeds from sale of shares 5,351,024 9,205,021 $ 122,681 $ 211,010
Net asset value of shares issued to shareholders
in reinvestment of dividend distributions 783,806 6,668,270 18,297 143,387
Cost of shares repurchased (6,804,657) (9,405,264) (155,921) (216,143)
-------- -------- ---------- ---------
Net increase (decrease) in net assets resulting
from trust share transactions (669,827) 6,468,027 $ (14,943) $ 138,254
======== ======== ---------- ---------
Net increase (decrease) in net assets $ 263,140 $ (31,894)
NET ASSETS:
Beginning of period 2,011,051 2,042,945
---------- ---------
End of period (including undistributed net investment income of $3,126 and
$457, respectively) $2,274,191 $2,011,051
========== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
PIONEER FUND
FINANCIAL HIGHLIGHTS
Selected Data For a Share Outstanding For The Periods Presented
<TABLE>
<CAPTION>
Six Months
Ended For the Years Ended December 31,
June 30, -------------------------------------------------------------
1995 1994 1993 1992 1991
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 21.32 $ 23.25 $ 21.51 $ 20.24 $ 18.79
----------- ----------- ----------- ----------- -----------
Increase (decrease) from
investment operations:
Net investment income $ 0.25 $ 0.49 $ 0.47 $ 0.50 $ 0.61
Net realized and unrealized gain
(loss) on investments 2.93 (0.63) 2.57 2.22 3.49
----------- ----------- ----------- ----------- -----------
Total increase (decrease) from
investment operations $ 3.18 $ (0.14) $ 3.04 $ 2.72 $ 4.10
Distributions to shareholders
from:
Net investment income (0.22) (0.49) (0.47) (0.50) (0.61)
Net realized gain -- (1.30) (0.83) (0.95) (2.04)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
asset value $ 2.96 $ (1.93) $ 1.74 $ 1.27 $ 1.45
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 24.28 $ 21.32 $ 23.25 $ 21.51 $ 20.24
=========== =========== =========== =========== ===========
Total return* 14.96% (0.57%) 14.23% 13.60% 22.76%
Ratio of net operating expenses
to average net assets 0.94%** 0.94% 0.95% 0.98% 0.87%
Ratio of net investment income to
average net assets 2.18%** 2.13% 2.04% 2.33% 2.87%
Porfolio turnover rate 17%** 20% 12% 13% 22%
Net assets, end of period (in
thousands) $2,274,191 $2,011,051 $2,042,945 $1,786,031 $1,614,567
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
For the Years Ended December 31,
-----------------------------------------------------------------------------
1990 1989 1988 1987 1986
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 23.28 $ 20.34 $ 18.48 $ 19.72 $ 23.13
----------- ----------- ----------- ----------- -----------
Increase (decrease) from
investment operations:
Net investment income $ 0.67 $ 0.61 $ 0.63 $ 0.62 $ 0.56
Net realized and unrealized gain
(loss) on investments (3.10) 4.09 2.72 0.41 1.95
----------- ----------- ----------- ----------- -----------
Total increase (decrease) from
investment operations $ (2.43) $ 4.70 $ 3.35 $ 1.03 $ 2.51
Distributions to shareholders
from:
Net investment income (0.67) (0.68) (0.62) (0.61) (0.67)
Net realized gain (1.39) (1.08) (0.87) (1.66) (5.25)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
asset value $ (4.49) $ 2.94 $ 1.86 $ (1.24) $ (3.41)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 18.79 $ 23.28 $ 20.34 $ 18.48 $ 19.72
=========== =========== =========== =========== ===========
Total return * (10.52%) 23.39% 18.33% 5.44% 11.49%
Ratio of net operating expenses
to average net assets 0.78% 0.75% 0.76% 0.70% 0.70%
Ratio of net investment income to
average net assets 3.15% 2.60% 3.03% 2.75% 2.44%
Porfolio turnover rate 17% 6% 11% 14% 31%
Net assets, end of period (in
thousands) $1,395,520 $1,618,320 $1,409,755 $1,272,118 $1,302,120
</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.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1995
1. Pioneer Fund (the Fund) is a Massachusetts business trust registered
under the Investment Company Act of 1940 as a diversified, open-end
management company. 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 at the last sale
price on the principal exchange or market 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. Temporary cash investments are
valued at cost plus accrued interest, which approximates market value.
Dividend income is recorded on the ex-dividend date, and 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 first to 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 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
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. Trust Shares--The Fund records sales and repurchases of its trust
shares on the 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 a wholly owned subsidiary of The Pioneer
Group, Inc. (PGI). PFD earned approximately $456,000 in underwriting
commissions on the sale of trust shares of the Fund during the six months
ended June 30, 1995. Dividends and distributions to shareholders are
recorded as of the ex-dividend date.
D. Foreign Currency Translation--The books and records of the Fund are
maintained in U.S. dollars. Amounts denominated in foreign currencies are
translated into U.S. dollars using the current exchange rates.
2. Pioneering Management Corporation (PMC) is 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 $250,000,000, 0.48% of such assets
between $250,000,000 and $300,000,000, and 0.45% of such assets in excess of
$300,000,000.
In addition, under the management agreement, certain services and costs,
including accounting, regulatory reporting and insurance premiums, are paid
by the Fund.
3. Pioneering Services Corporation (PSC), a wholly owned subsidiary of
PGI, provides substantially all transfer agent and shareholder services to
the Fund at negotiated rates. Included in Accrued expenses--Other is
approximately $372,000 in transfer fees payable to PSC at June 30, 1995.
4. The Fund has adopted a Plan of Distribution (the Plan) in accordance
with Rule 12b-1 under the Investment Company Act of 1940 pursuant to which
certain distribution and service fees are paid to PFD. Under the Plan, the
Fund reimburses PFD for PFD's actual expenditures to finance any activities
primarily intended to result in the sale of the Fund's shares or to provide
services to the Fund's shareholders. Reimbursement of such expenditures, if
any, may not exceed 0.25% of the Fund's average daily net assets. The Plan
provides for service fees to be paid at a rate of 0.15% per annum on
qualifying investments in the Fund made prior to August 19, 1991 and 0.25% on
qualifying investments made on or subsequent to that date. Included in
Accrued expenses--Other is approximately $946,000 in distribution fees
payable to PFD at June 30, 1995.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
5. The Fund's investment in certain companies may exceed 5% of the
outstanding voting stock. Such companies are deemed affiliates of the Fund
for financial reporting purposes. The following summarizes transactions with
affiliates of the Fund as of June 30, 1995:
<TABLE>
<CAPTION>
Dividend
Affiliates Purchases Sales Income Value
----------------------------------- -------- ---- ------- -----------
<S> <C> <C> <C> <C>
Gorman-Rupp Co. -- -- $127,896 $ 7,132,652
John Wiley & Sons, Inc. (Class A) -- -- 67,704 24,843,000
Quaker Chemical Corp. -- -- 151,479 7,239,781
William H. Sadlier, Inc. -- -- 6,593 304,926
------ -- -------- -----------
-- -- $353,672 $39,520,359
====== == ======== ===========
</TABLE>
13
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER FUND:
We have audited the accompanying balance sheet of Pioneer Fund, 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 periods presented. 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.
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 Fund as of June 30, 1995, the results of its operations, the changes
in its net assets and financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
July 28, 1995
14
