<PAGE>
[PIONEER LOGO]
PIONEER
FUND
SEMIANNUAL REPORT 6/30/97
<PAGE>
TABLE OF CONTENTS
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Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 16
Notes to Financial Statements 22
Report of Independent Public Accountants 27
Trustees, Officers and Service Providers 28
The Pioneer Family of Mutual Funds 29
<PAGE>
PIONEER FUND
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LETTER FROM THE CHAIRMAN 6/30/97
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DEAR SHAREOWNER,
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Welcome to Pioneer Fund's semiannual report, covering the fast-paced six months
ended June 30, 1997. I thank you for your interest, and for the opportunity to
comment briefly on the Fund and today's investing environment.
This was an exciting and rewarding period for your Fund and its investment
management team. The trends that fueled a record stock market in 1996 continued
with only a few brief pauses. Money poured into financial markets; over the
past six months, $277 billion entered the stock market through mutual funds
alone. The bulk of the assets were directed toward stocks of large, familiar
companies, and the Dow Jones Industrial Average repeatedly pushed on to new
highs, posting an overall gain of 20.11% for the past six months. Your Fund,
with its exposure to a variety of these "blue chip" stocks, outpaced even the
Dow. In all, it was an extraordinary period.
As time passes, it seems realistic to expect the stock market's unprecedented
surge to slow or even backtrack. Your Fund's portfolio emphasizes established,
high-quality companies with a history of paying attractive dividends. That
strategy, combined with our ongoing and rigorous search for new investment
opportunities, gives us confidence that your Fund is well-positioned to
flourish if the current environment continues, and to hold up well if the
market turns.
Thank you for your support. I encourage you to read on to learn more about your
Fund. Please contact your investment professional, or Pioneer at
1-800-225-6292, if you have questions about Pioneer Fund.
Respectfully,
/s/ John F. Cogan
- -----------------------------
John F. Cogan, Jr.,
Chairman and President
1
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PIONEER FUND
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PORTFOLIO SUMMARY 6/30/97
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PORTFOLIO DIVERSIFICATION
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(As a percentage of total investment portfolio)
[PIE GRAPH]
U.S. Common Stocks 95.7%
Depositary Receipts for
International Stocks 2.2%
International Common Stocks 1.0%
U.S. Convertible Securities 0.9%
Short-Term Cash Equivalents 0.2%
SECTOR DISTRIBUTION
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(As a percentage of equity holdings)
[PIE GRAPH]
Financial 20%
Services 18%
Technology 14%
Utilities 13%
Consumer Non-Durables 10%
Capital Goods 9%
Basic Industries 8%
Consumer Durables 4%
Energy 3%
Tranportation 1%
10 LARGEST HOLDINGS
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(As a percentage of equity holdings)
1. Schering-Plough Corp. 3.57% 6. National City Corp. 1.86%
2. The Bank of New York Co., Inc. 2.34 7. SBC Communications, Inc. 1.80
3. Novartis AG (Sponsored A.D.R.) 2.14 8. E.I. du Pont de Nemours 1.73
and Co.
4. IBM, Corp. 2.11 9. GTE Corp. 1.72
5. Ford Motor Co. 1.94 10. Bristol-Myers Squibb Co. 1.66
Fund holdings will vary for other periods.
2
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PIONEER FUND
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PERFORMANCE UPDATE 6/30/97 CLASS A SHARES
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<TABLE>
SHARE PRICES AND DISTRIBUTIONS
- --------------------------------------------------------------------------------
<CAPTION>
NET ASSET VALUE
PER SHARE 6/30/97 12/31/96
<S> <C> <C> <C>
$32.39 $26.89
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/96 - 6/30/97) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
$0.17 -- --
</TABLE>
INVESTMENT RETURNS
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The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Fund at public offering price, compared to the growth of the
Standard & Poor's 500 Index.
<TABLE>
<CAPTION>
- --------------------------------------
AVERAGE ANNUAL TOTAL RETURNS [LINE GRAPH]
(As of June 30, 1997)
Standard &
NET ASSET PUBLIC OFFERING Date Pioneer Fund* Poor's 500 Index
PERIOD VALUE PRICE* ---- ------------ ----------------
<S> <C> <C> <C> <C> <C>
10 Years 12.43% 11.76% 6/87 9,425 10,000
5 Years 17.56 16.17 6/88 9,355 9,305
1 Years 33.18 26.18 6/89 10,761 11,207
- -------------------------------------- 6/90 11,479 13,044
* Reflects deduction of the maximum 6/91 11,913 14,008
5.75% sales charge at the beginning 6/92 13,543 15,879
of the period and assumes reinvestment 6/93 15,600 18,034
of distributions at net asset value. 6/94 16,227 18,292
6/95 19,037 23,047
6/96 22,713 29,023
6/97 30,409 39,075
</TABLE>
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 the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
3
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PIONEER FUND
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PERFORMANCE UPDATE 6/30/97 CLASS B SHARES
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SHARE PRICES AND DISTRIBUTIONS
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<TABLE>
NET ASSET VALUE
PER SHARE 6/30/97 12/31/96
<S> <C> <C> <C>
$32.47 $27.02
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/96 - 6/30/97) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
$0.10 -- --
</TABLE>
INVESTMENT RETURNS
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Fund, compared to the growth of the Standard & Poor's 500 Index.
<TABLE>
<CAPTION>
- --------------------------------------
CUMMULATIVE TOTAL RETURNS [LINE GRAPH]
(As of June 30, 1997)
Standard &
IF IF Date Pioneer Fund* Poor's 500 Index
PERIOD HELD REDEEMED* ------ ------------ ----------------
<S> <C> <C> <C> <C> <C>
Life-of-Fund 32.53% 28.53% 7/1/96 10,000 10,000
(7/1/96) 9,504 9,468
9,761 9,647
- -------------------------------------- 10,212 10,227
* Reflects deduction of the maximum 10,391 10,494
applicable contigent deferred sales 11,199 11,264
charge (CDSC) at the end of the peiod 10,991 11,078
and assumes reinvestment of 11,602 11,757
distributions. The maximum CDSC of 11,744 11,827
4% declines over six years. 11,235 11,377
11,826 12,041
12,625 12,747
6/97 12,853 13,359
</TABLE>
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 the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
4
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PIONEER FUND
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PERFORMANCE UPDATE 6/30/97 CLASS C SHARES
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SHARE PRICES AND DISTRIBUTIONS
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<TABLE>
NET ASSET VALUE
PER SHARE 6/30/97 12/31/96
<S> <C> <C> <C>
$32.15 $26.74
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/96 - 6/30/97) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
$0.09 -- --
</TABLE>
INVESTMENT RETURNS
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Fund, compared to the growth of the Standard & Poor's 500 Index.
<TABLE>
<CAPTION>
- --------------------------------------
CUMMULATIVE TOTAL RETURNS [LINE GRAPH]
(As of June 30, 1997)
Standard &
IF IF Date Pioneer Fund* Poor's 500 Index
PERIOD HELD REDEEMED* ------ ------------ ----------------
<S> <C> <C> <C> <C> <C>
Life-of-Fund 31.14% 30.14% 7/1/96 10,000 10,000
(7/1/96) 9,466 9,468
9,689 9,647
- -------------------------------------- 10,117 10,227
* Reflects deduction of the 1% contingent 10,292 10,494
deferred sales charge (CDSC) at the 11,085 11,264
end of the period, and assumes 10,874 11,078
reinvestment of distributions. 11,480 11,757
11,622 11,827
11,117 11,377
11,704 12,041
12,491 12,747
6/97 13,014 13,359
</TABLE>
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 the Index.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
5
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PIONEER FUND
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/97
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DEAR SHAREOWNER,
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The stock market moved steadily higher during the second quarter of 1997,
bouncing back after the stops and starts of the first quarter. Investor
confidence in the economy - and the continuation of low inflation - appears to
have strengthened. Here in the United States, we have experienced excellent
economic growth, with a 5.8% increase in gross domestic product in the first
quarter of 1997. Interestingly, however, inflation remains negligible and
interest rates fairly steady, here and around the world. With the global
potential for growth ever more apparent, American business is robust. Investors
seized on this tremendous long-term opportunity and poured money into stocks,
especially the stocks of larger U.S. companies with both domestic and overseas
operations.
It has been a market congenial to our style of investing for Pioneer Fund. The
kind of company we generally emphasize is well regarded by today's investor: a
company with a strong position in a leading industry, a balance sheet permitting
expansion, significant unrealized earnings power and management interested in
stockholders. The Fund generated strong results for the six months ended June
30, posting a total return of 21.14% for Class A Shares, 20.57% for Class B
Shares and 20.60% for Class C Shares, all based on net asset value. By
comparison, the Standard & Poor's 500 Index returned 20.59% over the period.
AN ECONOMY REFOCUSING
Worldwide business is driving much of our economic growth. American companies
are exporting vital goods and services to innumerable countries and are also
successfully building operations abroad. It is an exciting time as Asia, Latin
America and Eastern Europe move toward free-market economies. In considering
stocks for purchase, we have long favored companies with international
capabilities. Many portfolio holdings derive major portions of their sales and
earnings from foreign sources, including DuPont, Aluminum Company of
6
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PIONEER FUND
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America ("Alcoa"), Caterpillar and CPC International. H.J. Heinz,
Hewlett-Packard, Bristol-Myers Squibb, Emerson Electric and American
International Group also fall into this category.
Here in the United States, the financial services industry continues to grow
rapidly. We have a big lead over foreign providers of services such as life
insurance and investment planning for retirement. During recent months, the
Fund took a new position in Equitable, a company combining life insurance,
investment management, brokerage and investment banking, and foreign
connections through the French insurer, AXA, which owns about 60% of Equitable
shares. Also, the Fund received shares of Morgan Stanley, Dean Witter, Discover
in exchange for previous shares of Morgan Stanley. The merger between Morgan
Stanley and Dean Witter combines a major international investment banker and a
strong retail stock broker. Diebold is another new holding; it provides
automatic-teller machines to the banking industry, critical links between banks
and their customers in today's fast-moving world.
Nucor and Steel Dynamics are new entries in the steel industry. Both are
"mini-mills," which make steel in electric furnaces using scrap, rather than
through a fully-integrated process starting with the blast furnace. With low
costs and excellent management, both companies are poised to do well as steel
demand remains good. Shareowners will also note the addition of Newmont Mining.
The Fund received this stock in exchange for shares of Santa Fe Pacific Gold,
which was acquired by Newmont. Ciba Specialty Chemicals is a spin-off from
Ciba-Geigy, the large Swiss pharmaceutical producer, now merged with Sandoz
into Novartis.
7
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PIONEER FUND
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/97 (CONTINUED)
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THE OUTLOOK
We have seen two big dips in the stock market over the past year, one last
summer and the other this spring. Underlying the volatility, however, has been
a strong upward movement in stock prices. Certainly over this period, the
merits of staying fully invested have been quite evident. While nerve-wracking,
periodic sell-offs are also important to the longer-term health of the market -
much like prunings for a shrub. They create opportunities for investors who
kicked themselves for "missing" certain stocks to jump in at prices they deem
more attractive. As a result, any new upward leg of the market will start from
a broader base of stockholders in many leading companies. If stocks only went
up, eventually everyone would "chicken out" and take their profits, but because
they also go down, new buyers seeking "bargains" typically come in.
Wall Street has been one of the great contributors to our economic progress for
more than 200 years. We are proud to have taken part ourselves in this
wonderful phenomenon for about a third of its existence, since Pioneer Fund was
founded in 1928. We expect the stock market will remain challenging over the
balance of the year, with much backing and filling after the sharp advances of
the past two-and-a-half years. So, far from relaxing, we intend to work all the
harder to find good values for the portfolio. We look forward to helping you
meet your financial goals for many years to come.
Respectfully,
/s/ John A. Carey,
- --------------------------
John A. Carey,
Portfolio Manager
8
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PIONEER FUND
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SCHEDULE OF INVESTMENTS 6/30/97
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<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
INVESTMENT IN SECURITIES - 99.8%
PREFERRED STOCKS - 0.9%
1,033,200 Greif Brothers Corp. (non-voting) $ 27,896,400
60,000 Rouse Co., $3.00 (Series B) (convertible) 2,895,000
------------
TOTAL PREFERRED STOCKS
(Cost $3,326,152) $ 30,791,400
------------
COMMON STOCKS - 98.9%
BASIC INDUSTRIES - 7.7%
CHEMICALS - 4.0%
263,300 Bush Boake Allen, Inc.* $ 8,195,212
92,798 Ciba Specialty Chemicals AG (A.D.R.)* 4,288,261
255,000 Dow Chemical Co. 22,216,875
958,000 E.I. du Pont de Nemours and Co. 60,234,250
195,000 Eastman Chemical Co. 12,309,375
659,451 Lilly Industries, Inc. 13,189,020
875,158 A. Schulman, Inc. 21,550,766
------------
$141,983,759
------------
FOREST PRODUCTS - 0.4%
204,000 Mead Corp. $ 12,762,750
------------
IRON & STEEL - 0.4%
125,000 Nucor Corp. $ 7,156,250
220,000 Steel Dynamics, Inc.* 5,500,000
------------
$ 12,656,250
------------
METALS & MINING - 2.2%
248,000 Aluminum Co. of America $ 18,693,000
230,136 Newmont Mining Corp. 8,975,304
597,900 Phelps Dodge Corp. 50,933,606
------------
$ 78,601,910
------------
PAPER PRODUCTS - 0.7%
184,000 Consolidated Papers, Inc. $ 9,936,000
127,500 Union Camp Corp. 6,454,687
209,600 Westvaco Corp. 6,589,300
------------
$ 22,979,987
------------
TOTAL BASIC INDUSTRIES $268,984,656
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
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PIONEER FUND
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SCHEDULE OF INVESTMENTS 6/30/97 (CONTINUED)
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<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
CAPITAL GOODS - 8.1%
AEROSPACE - 1.1%
362,500 Lockheed Martin Corp. $ 37,541,406
------------
PRODUCER GOODS - 7.0%
276,500 AlliedSignal, Inc. $ 23,035,906
276,600 Caterpillar, Inc. 29,769,075
96,000 Cummins Engine Co., Inc. 6,774,000
411,600 Deere & Co. 22,586,550
60,000 Dover Corp. 3,690,000
180,000 General Electric Co. 11,767,500
286,256 Hubbell, Inc. (Class B) 12,595,264
280,800 Illinois Tool Works, Inc. 14,022,450
376,500 Ingersoll-Rand Co. 23,248,875
344,200 Johnson Controls, Inc. 14,219,763
304,242 Lucent Technologies, Inc. 21,924,439
216,200 Minnesota Mining and Manufacturing Co. 22,052,400
284,200 The Timken Co. 10,106,862
1,403,000 Westinghouse Electric Co. 32,444,375
------------
$248,237,459
------------
TOTAL CAPITAL GOODS $285,778,865
------------
CONSUMER DURABLES - 3.8%
MOTOR VEHICLES - 3.8%
1,078,600 Chrysler Corp. $ 35,391,563
1,785,000 Ford Motor Co. 67,383,750
444,500 Genuine Parts Co. 15,057,437
286,100 TRW Inc. 16,254,056
------------
TOTAL CONSUMER DURABLES $134,086,806
------------
CONSUMER NON-DURABLES - 10.2%
AGRICULTURE & FOOD - 4.9%
213,800 CPC International, Inc. $ 19,736,412
470,300 General Mills, Inc. 30,628,287
955,150 H.J. Heinz Co. 44,056,294
765,000 PepsiCo, Inc. 28,735,313
801,000 Sara Lee Corp. 33,341,625
433,100 Sysco Corp. 15,808,150
------------
$172,306,081
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
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PIONEER FUND
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
RETAIL FOOD - 0.6%
480,000 Albertson's, Inc. $ 17,520,000
206,000 Weis Markets, Inc. 5,948,250
------------
$ 23,468,250
------------
RETAIL NON-FOOD - 4.7%
690,000 Dayton Hudson Corp. $ 36,699,375
298,200 Kohl's Corp.* 15,785,963
710,800 May Department Stores Co. 34,029,550
183,500 Mercantile Stores Co., Inc. 11,549,031
826,000 Wal-Mart Stores, Inc. 27,929,125
712,800 Walgreen Co. 38,223,900
------------
$164,216,944
------------
TOTAL CONSUMER NON-DURABLES $359,991,275
------------
ENERGY - 2.9%
OIL & GAS EXTRACTION - 2.6%
436,500 Amoco Corp. $ 37,948,219
480,500 Chevron Corp. 35,526,967
185,200 Sonat, Inc. 9,503,076
335,700 Union Pacific Resources Group Inc. 8,350,538
------------
$ 91,328,800
------------
OIL SERVICES - 0.3%
89,000 Schlumberger Ltd. $ 11,125,000
------------
TOTAL ENERGY $102,453,800
------------
FINANCIAL - 20.2%
COMMERCIAL BANKS - 8.0%
256,650 AmSouth Bancorp. $ 9,752,700
1,873,400 The Bank of New York Co., Inc. 81,492,900
660,000 CoreStates Financial Corp. 35,475,000
355,132 First Chicago NBD Corp. 21,618,661
190,000 First Tennessee National Corp. 9,120,000
842,995 Huntington Bancshares, Inc. 24,762,978
1,232,324 National City Corp. 64,697,010
756,800 State Street Boston Corp. 35,616,900
------------
$282,536,149
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
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PIONEER FUND
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SCHEDULE OF INVESTMENTS 6/30/97 (CONTINUED)
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<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
MISC. FINANCE - 0.8%
279,700 Countrywide Credit Industries, Inc. $ 8,723,144
420,000 Federal National Mortgage Association 18,322,500
------------
$ 27,045,644
------------
INSURANCE - 6.4%
186,600 American International Group, Inc. $ 27,873,375
746,000 Chubb Corp. 49,888,750
1,005,700 Equitable Companies 33,439,525
486,000 Marsh & McLennan Co., Inc. 34,688,250
86,400 ReliaStar Financial Corp. 6,318,000
930,400 Safeco Corp. 43,438,050
386,600 St. Paul Companies, Inc. 29,478,250
------------
$225,124,200
------------
REAL ESTATE - 0.3%
333,641 Rouse Co. $ 9,842,410
------------
INVESTMENTS - 4.2%
676,000 Merrill Lynch & Co., Inc. $ 40,306,500
321,750 Morgan Stanley, Dean Witter, Discover & Co. 13,855,359
950,100 Charles Schwab Corp. 38,657,194
1,050,000 T. Rowe Price Associates, Inc. 54,206,250
------------
$147,025,303
------------
SAVINGS & LOAN - 0.5%
413,000 H.F. Ahmanson & Co. $ 17,759,000
------------
TOTAL FINANCIAL $709,332,706
------------
SERVICES - 17.8%
HEALTH & PERSONAL CARE - 1.5%
516,400 Becton, Dickinson & Co. $ 26,626,875
525,000 United Healthcare Corp. 27,300,000
------------
$ 53,926,875
------------
HOTEL/RESTAURANT - 0.2%
100,000 McDonald's Corp. $ 4,831,250
------------
PHARMACEUTICALS - 12.9%
343,600 Abbott Laboratories $ 22,806,450
714,000 Bristol-Myers Squibb Co. 57,834,000
750,000 Johnson & Johnson 47,812,500
205,000 Eli Lilly & Co. 22,409,063
927,994 Novartis AG (Sponsored A.D.R.)* 74,442,565
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
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PIONEER FUND
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
PHARMACEUTICALS - (CONTINUED)
335,000 Pfizer, Inc. $ 40,032,500
3,898 Roche Holdings AG 35,238,646
2,596,400 Schering-Plough Corp. 124,302,650
237,500 Warner-Lambert Co. 29,509,375
------------
$454,387,749
------------
PUBLISHING - 3.2%
320,300 Central Newspapers, Inc. $ 22,941,488
555,200 Harcourt General, Inc. 26,580,200
553,000 McGraw-Hill Co., Inc. 32,523,313
873,600 John Wiley & Sons, Inc.+ 29,593,200
------------
$111,638,201
------------
TOTAL SERVICES $624,784,075
------------
TECHNOLOGY - 14.1%
BUSINESS MACHINES - 2.8%
198,100 Diebold, Inc. $ 7,899,238
940,000 Hewlett-Packard Co. 52,640,000
1,025,000 Sun Microsystems, Inc.* 38,149,270
------------
$ 98,688,508
------------
COMPUTER SERVICES - 6.0%
687,000 Aspen Technology, Inc.* $ 25,848,375
249,200 Automatic Data Processing, Inc. 11,618,950
358,000 Compaq Computer Corp.* 35,531,500
211,300 Computer Associates International, Inc. 11,766,769
220,000 DST Systems, Inc.* 7,328,750
355,000 Electronic Data Systems Corp. 14,555,000
573,200 Indus Group, Inc.* 11,607,300
812,000 IBM, Corp. 73,232,250
515,000 Seagate Technology, Inc.* 18,121,562
------------
$209,610,456
------------
ELECTRONICS - 4.6%
140,000 Applied Materials, Inc.* $ 9,913,750
214,000 Cisco System, Inc.* 14,364,750
445,800 Emerson Electric Co. 24,546,862
444,000 General Motors Corp. (Class H) 25,641,000
662,500 Motorola, Inc. 50,350,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
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PIONEER FUND
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SCHEDULE OF INVESTMENTS 6/30/97 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
ELECTRONICS - (CONTINUED)
234,000 Teradyne, Inc.* $ 9,184,500
346,000 Texas Instruments, Inc. 29,085,625
------------
$163,086,487
------------
PHOTO/INSTRUMENTATION - 0.7%
309,100 Eastman Kodak Co. $ 23,723,425
------------
TOTAL TECHNOLOGY $495,108,876
------------
TRANSPORTATION - 1.1%
AIR TRANSPORT - 0.4%
161,454 Delta Air Lines, Inc. $ 13,319,955
------------
RAILROAD & BUS - 0.7%
266,500 Norfolk Southern Corp. $ 26,849,875
------------
TOTAL TRANSPORTATION $ 40,169,830
------------
UTILITIES - 13.0%
ELECTRIC UTILITY - 0.9%
1,125,100 Allegheny Power Systems, Inc. $ 30,026,106
------------
GAS UTILITY - 0.4%
574,650 Indiana Energy, Inc. $ 14,043,009
------------
UTILITY/OTHER - 0.3%
552,600 American Water Works Co., Inc. $ 11,811,825
------------
TELECOMMUNICATIONS - 11.4%
754,400 Aliant Communications, Inc. $ 14,710,800
733,000 Ameritech Corp. 49,798,187
231,300 AT&T Corp. 8,095,500
525,700 Bell Atlantic Corp. 39,657,494
1,129,800 BellSouth Corp. 52,182,638
1,360,900 GTE Corp. 59,709,487
530,800 NYNEX Corp. 30,587,350
1,016,601 SBC Communications, Inc. 62,648,037
1,034,000 Sprint Corp. 54,155,750
789,351 U.S. West Communication Group 29,699,331
------------
$401,244,574
------------
68,284,831 TOTAL UTILITIES $457,125,514
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
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PIONEER FUND
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
<S> <C> <C>
TOTAL COMMON STOCKS
(Cost $1,929,885,510) $3,477,816,403
--------------
TOTAL INVESTMENT IN SECURITIES
(Cost $1,933,211,662) $3,508,607,803
--------------
PRINCIPAL
AMOUNT
TEMPORARY CASH INVESTMENT - 0.2%
COMMERCIAL PAPER - 0.2%
$7,141,000 Ford Motor Credit Co., 6.11%, 7/1/97 $ 7,141,000
--------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $7,141,000) $ 7,141,000
--------------
TOTAL INVESTMENT IN SECURITIES AND TEMPORARY
CASH INVESTMENT - 100%
(Cost $1,940,352,662)(a) $3,515,748,803
--------------
* Non-income producing security.
+ Investment held by Fund representing 5% or more of the outstanding voting
stock of such company.
(a) At June 30, 1997, the net unrealized gain on investments based on cost for
federal income tax purposes of $1,940,352,662 was as follows:
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $1,579,687,206
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (4,291,065)
--------------
Net unrealized gain $1,575,396,141
==============
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended June 30, 1997, aggregated approximately $370,066,000 and
$310,475,000, respectively.
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
BALANCE SHEET 6/30/97
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary
cash investment of $7,141) (cost $1,940,353) $3,515,749
Receivables -
Investment securities sold 11,409
Fund shares sold 3,462
Dividends and interest 5,172
Other 40
----------
Total assets $3,535,832
----------
LIABILITIES:
Payables -
Investment securities purchased $ 7,147
Fund shares repurchased 1,072
Due to bank 9
Dividends 83
Due to affiliates 4,052
Accrued expenses 167
----------
Total liabilities $ 12,530
----------
NET ASSETS:
Paid-in capital $1,845,851
Accumulated undistributed net investment income 351
Accumulated net realized gain on investments and foreign
currency transactions 101,705
Net unrealized gain on investments 1,575,396
Net unrealized loss on other assets and liabilities
denominated in foreign currencies (1)
----------
Total net assets $3,523,302
==========
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $3,492,053/107,808,759 shares) $ 32.39
==========
Class B (based on $27,146/836,137 shares) $ 32.47
==========
Class C (based on $4,103/127,622 shares) $ 32.15
==========
MAXIMUM OFFERING PRICE:
Class A $ 34.37
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED 6/30/97 (DOLLARS IN THOUSANDS)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $14) $ 33,260
Interest 424
--------
Total investment income $ 33,684
--------
EXPENSES:
Management fees
Basic fee $ 9,390
Performance adjustment (382)
Transfer agent fees
Class A 3,462
Class B 22
Class C 3
Distribution fees
Class A 3,040
Class B 80
Class C 13
Accounting 111
Custodian fees 91
Registration fees 100
Professional fees 43
Printing 45
Fees and expenses of nonaffiliated trustees 25
Miscellaneous 75
--------
Total expenses $ 16,118
Less fees paid indirectly (217)
--------
Net expenses $ 15,901
--------
Net investment income $ 17,783
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $101,705
Change in net unrealized gain on:
Investments $494,170
Other assets and liabilities denominated in
foreign currencies 3 $494,173
-------- --------
Net gain on investments $595,878
--------
Net increase in net assets resulting
from operations $613,661
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED 6/30/97 AND THE YEAR ENDED 12/31/96
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
FROM OPERATIONS: 6/30/97 12/31/96
<S> <C> <C>
Net investment income $ 17,783 $ 37,721
Net realized gain on investments 101,705 184,074
Change in net unrealized gain on investments 494,173 260,584
---------- ----------
Net increase in net assets resulting
from operations $ 613,661 $ 482,379
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.17 and $0.37 per share respectively) $ (18,311) $ (37,742)
Class B ($0.10 and $0.07 per share respectively) (13) (9)
Class C ($0.09 and $0.03 per share respectively) (1) (1)
In excess of net investment income:
Class B ($0.00 and $0.06 per share respectively) - (17)
Class C ($0.00 and $0.07 per share respectively) - (3)
Net realized gain:
Class A ($0.00 and $1.82 per share respectively) - (183,429)
Class B ($0.00 and $1.82 per share respectively) - (538)
Class C ($0.00 and $1.82 per share respectively) - (114)
---------- ----------
Total distributions to shareholders $ (18,325) $ (221,853)
---------- ----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 179,121 $ 238,716
Reinvestment of distributions 16,282 201,514
Cost of shares repurchased (174,879) (259,412)
---------- ----------
Net increase in net assets resulting from
fund share transactions $ 20,524 $ 180,818
---------- ----------
Net increase in net assets $ 615,860 $ 441,344
NET ASSETS:
Beginning of period 2,907,442 2,466,098
---------- ----------
End of period (including accumulated undistributed net
investment income of $351 and $893, respectively) $3,523,302 $2,907,442
========== ==========
<CAPTION>
CLASS A '97 SHARES '97 AMOUNT '96 SHARES '96 AMOUNT
<S> <C> <C> <C> <C>
Shares sold 5,497,409 $ 160,019 8,683,155 $ 227,808
Reinvestment of distributions 540,242 16,217 7,663,593 200,891
Less shares repurchased (5,944,387) (172,320) (9,884,745) (258,910)
--------- ---------- --------- ----------
Net increase 93,264 $ 3,916 6,462,003 $ 169,789
--------- ---------- --------- ----------
CLASS B*
Shares sold 548,497 $ 16,141 325,224 $ 8,988
Reinvestment of distributions 1,897 58 19,805 522
Less shares repurchased (45,113) (1,323) (14,173) (386)
--------- ---------- --------- ----------
Net increase 505,281 $ 14,876 330,856 $ 9,124
========= ========= ========= =========
CLASS C*
Shares sold 102,161 $ 2,961 68,824 $ 1,920
Reinvestment of distributions 228 7 3,873 101
Less shares repurchased (43,237) (1,236) (4,227) (116)
--------- ---------- --------- ----------
Net increase 59,152 $ 1,732 68,470 $ 1,905
========= ========= ========= =========
</TABLE>
* Class B and Class C shares were first publicly offered on July 1, 1996.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
CLASS A 6/30/97 12/31/96 12/31/95 12/31/94 12/31/93 12/31/92
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 26.89 $ 24.36 $ 21.32 $ 23.25 $ 21.51 $ 20.24
---------- ---------- ---------- ---------- ---------- ----------
Increase (decrease) from investment
operations:
Net investment income $ 0.17 $ 0.37 $ 0.49 $ 0.49 $ 0.47 $ 0.50
Net realized and unrealized gain
(loss) on investments and
foreign currency transactions 5.50 4.35 5.13 (0.63) 2.57 2.22
---------- ---------- ---------- ---------- ---------- ----------
Total increase (decrease) from
investment operations $ 5.67 $ 4.72 $ 5.62 $ (0.14) $ 3.04 $ 2.72
Distribution to shareholders:
Net investment income (0.17) (0.37) (0.49) (0.49) (0.47) (0.50)
Net realized gain - (1.82) (2.09) (1.30) (0.83) (0.95)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset
value $ 5.50 $ 2.53 $ 3.04 $ (1.93) $ 1.74 $ 1.27
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 32.39 $ 26.89 $ 24.36 $ 21.32 $ 23.25 $ 21.51
========== ========== ========== ========== ========== ==========
Total return* 21.14% 19.70% 26.64% (0.57)% 14.23% 13.60%
Ratio of net expenses to average net
assets 1.02% **+ 1.01%+ 0.95%+ 0.94% 0.95% 0.98%
Ratio of net investment income to
average net assets 1.13% **+ 1.40%+ 2.01%+ 2.13% 2.04% 2.33%
Porfolio turnover rate 20% ** 25% 31% 20% 12% 13%
Average commission rate paid (1) $ 0.0571 $ 0.0599 - - - -
Net assets, end of period (in
thousands) $3,492,053 $2,896,670 $2,466,098 $2,011,051 $2,042,945 $1,786,031
Ratios assuming reduction for fees
paid indirectly:
Net expenses 1.01% ** 0.99% 0.94% - - -
Net investment income 1.14% ** 1.42% 2.02% - - -
</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.
(1) Amount represents the rate of commission paid on the Fund's exchange listed
security transactions.
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED 7/1/96 TO
CLASS B 6/30/97 12/31/96(A)
<S> <C> <C>
Net asset value, beginning of period $ 27.02 $ 26.40
------- -------
Increase from investment operations:
Net investment income $ 0.08 $ 0.07
Net realized and unrealized gain on
investments and foreign currency
transactions 5.47 2.50
------- -------
Total increase from investment
operations $ 5.55 $ 2.57
Distribution to shareholders:
Net investment income (0.10) (0.07)
In excess of net investment income - (0.06)
Net realized gain - (1.82)
------- -------
Net increase in net asset value $ 5.45 $ 0.62
------- -------
Net asset value, end of period $ 32.47 $ 27.02
======= =======
Total return* 20.57% 9.92%
Ratio of net expenses to average net assets 1.88%**+ 1.82%**+
Ratio of net investment income to average
net assets 0.25%**+ 0.46%**+
Portfolio turnover rate 20%** 25%
Average commission rate paid(1) $0.0571 $0.0599
Net assets, end of period (in thousands) $27,146 $ 8,940
Ratios assuming reduction for fees paid
indirectly:
Net expenses 1.84%** 1.80%**
Net investment income 0.29%** 0.48%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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.
(1) Amount represents the rate of commission paid on the Fund's exchange
listed security transactions.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED 7/1/96 TO
CLASS C 6/30/97 12/31/96(a)
<S> <C> <C>
Net asset value, beginning of period $ 26.74 $ 26.40
------- -------
Increase from investment operations:
Net investment income $ 0.08 $ 0.03
Net realized and unrealized gain on
investments and foreign currency
transactions 5.42 2.23
------- -------
Total increase from investment
operations $ 5.50 $ 2.26
Distribution to shareholders:
Net investment income (0.09) (0.03)
In excess of net investment income - (0.07)
Net realized gain - (1.82)
------- -------
Net increase in net asset value $ 5.41 $ 0.34
------- -------
Net asset value, end of period $ 32.15 $ 26.74
======= =======
Total return* 20.60% 8.74%
Ratio of net expenses to average net assets 1.81%**+ 2.11%**+
Ratio of net investment income to average
net assets 0.31%**+ 0.20%**+
Portfolio turnover rate 20%** 25%
Average commission rate paid(1) $0.0571 $0.0599
Net assets, end of period (in thousands) $ 4,103 $ 1,831
Ratios assuming reduction for fees paid
indirectly:
Net expenses 1.77%** 2.08%**
Net investment income 0.35%** 0.23%**
</TABLE>
(a) The per share data presented above is based upon the average shares
outstanding for the period presented.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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.
(1) Amount represents the rate of commission paid on the Fund's exchange
listed security transactions.
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/97
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Pioneer 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 investment objectives of the Fund are reasonable income and growth
of capital.
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 have exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B and Class C shareholders, respectively.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to,
among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts
of revenues and expenses during the reporting periods. Actual results could
differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Fund, which are in conformity
with those generally accepted in the investment company industry:
A. SECURITY VALUATION
Security transactions are recorded on trade date. Each day, securities are
valued at the last sale price on the principal exchange where they are traded.
Securities that have not traded on the date of valuation, or securities for
which sale prices are not generally reported, are valued at the mean between
the last bid and asked prices. Securities for which market quotations are not
readily available are valued at their fair values as determined by, or under
the direction of, the Board of Trustees. Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis.
Temporary cash investments are valued at amortized cost.
Gains and losses on sales of investments are calculated on the identified cost
method for both financial reporting and federal income tax purposes. It is the
Fund's practice to first select for sale
22
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
those securities that have the highest cost and also qualify for long-term
capital gain or loss treatment for tax purposes.
B. 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
current exchange rates.
Net realized gains and losses on foreign currency transactions represent,
among other things, the net realized gains and losses on foreign currency
contracts, disposition of foreign currencies and the difference between the
amount of income accrued and the U.S. dollar actually received. Further, the
effects of changes in foreign currency exchange rates on investments are not
segregated in the statement of operations from the effects of changes in
market price of those securities but are included with the net realized and
unrealized gain or loss on investments.
C. 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.
D. FUND SHARES
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations are absorbed by Pioneer Funds
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned
approximately $729,000 in underwriting commissions on the sale of fund
shares during the six months ended June 30, 1997.
23
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/97 (CONTINUED)
- --------------------------------------------------------------------------------
E. CLASS ALLOCATIONS
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Shareholders of each class share all expenses and fees paid to
the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in 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.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
2. MANAGEMENT AGREEMENT
Pioneering Management Corporation (PMC), the Fund's investment adviser, manages
the Fund's portfolio and is a wholly owned subsidiary of PGI. PMC receives a
basic fee that is calculated at the annual rate of 0.60% of the Fund's average
daily net assets. The basic fee is subject to a performance adjustment up to a
maximum ofP0.10% based on the Fund's investment performance as compared with
the Lipper Growth & Income Funds index. For the six months ended June 30, 1997,
the aggregate performance adjustment resulted in a reduction to management fees
of approximately $382,000. For the six months ended June 30, 1997, the
management fee was equivalent to 0.58% of average daily net assets.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. At June 30, 1997, approximately $1,788,000 was payable to PMC related
to management fees and certain other services.
24
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. TRANSFER AGENT
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 due to affiliates is approximately $688,000 in
transfer agent fees payable to PSC at June 30, 1997.
4. DISTRIBUTION PLANS
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the Investment
Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service
fee of up to 0.25% of the Fund's average daily net assets in reimbursement of
its actual expenditures to finance activities primarily intended to result in
the sale of Class A shares. On qualifying investments made prior to August 19,
1991, the Class A Plan provides for reimbursement of such expenditures in an
amount not to exceed 0.15%. Pursuant to the Class B Plan and 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 shares. Included in
due to affiliates is $1,576,000 in distribution fees payable to PFD at June 30,
1997.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of
purchase. Class B shares that are redeemed within six years of purchase are
subject to a CDSC at declining rates beginning at 4.0%, based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase are subject to a CDSC of 1.00%. Proceeds from the
CDSC are paid to PFD. For the six months ended June 30, 1997, CDSCs in the
amount of approximately $8,000 were paid to PFD.
25
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/97 (CONTINUED)
- --------------------------------------------------------------------------------
5. EXPENSE REDUCTIONS
The Fund has entered into certain directed brokerage and expense offset
arrangements resulting in a reduction in the Fund's total expenses. For the six
months ended June 30, 1997, the Fund's expenses were reduced by approximately
$217,000 under such arrangements.
6. AFFILIATED COMPANIES
The Fund's investments in certain companies 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, 1997:
<TABLE>
<CAPTION>
DIVIDEND
AFFILIATES PURCHASES SALES INCOME VALUE
<S> <C> <C> <C> <C>
John Wiley & Sons, Inc. $ - $- $ 87,360 $29,593,200
</TABLE>
26
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER FUND:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Fund as of June 30, 1997, and the related statement of
operations, the statements of changes in net assets, and the financial
highlights for the periods presented. These financial statements and the
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, 1997, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Fund as of June 30, 1997, the results of its operations, the changes in
its net assets, and the financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
August 1, 1997
27
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
TRUSTEES OFFICERS
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham John A. Carey, Vice President
John W. Kendrick William H. Keough, Treasurer
Marguerite A. Piret Joseph P. Barri, Secretary
David D. Tripple
Stephen K. West
John Winthrop
INVESTMENT ADVISER
Pioneering Management Corporation
CUSTODIAN
Brown Brothers Harriman & Co.
INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP
PRINCIPAL UNDERWRITER
Pioneer Funds Distributor, Inc.
LEGAL COUNSEL
Hale and Dorr LLP
SHAREOWNER SERVICES AND TRANSFER AGENT
Pioneering Services Corporation
28
<PAGE>
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
GROWTH FUNDS INCOME FUNDS
GLOBAL/INTERNATIONAL TAXABLE
Pioneer Emerging Markets Fund Pioneer America Income Trust
Pioneer Europe Fund Pioneer Bond Fund
Pioneer Gold Shares Pioneer Short-Term Income Trust*
Pioneer India Fund
Pioneer International Growth Fund TAX-EXEMPT
Pioneer World Equity Fund Pioneer Intermediate Tax-Free Fund
Pioneer Tax-Free Income Fund
UNITED STATES
Pioneer Capital Growth Fund MONEY MARKET FUND
Pioneer Growth Shares Pioneer Cash Reserves Fund
Pioneer Micro-Cap Fund*
Pioneer Mid-Cap Fund
Pioneer Small Company Fund
GROWTH AND INCOME FUNDS
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
* Offers Class A and B Shares only
29
<PAGE>
- --------------------------------------------------------------------------------
HOWTO 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
FACTFONESM 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:
Pioneer Services Corporation
60 State Street
Boston, Massachusetts 02109
OUR TOLL-FREE FAX 1-800-225-4240
OUR INTERNET E-MAIL ADDRESS [email protected]
(for general questions about Pioneer only)
VISIT OUR WEB SITE: www.pioneerfunds.com
THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT
FUND PROSPECTUS.
[PIONEER Pioneer Funds Distributor, Inc. 0897 - 4364
LOGO] 60 State Street (C)PIONEER FUNDS DISTRIBUTOR, INC.
Boston, Massachusetts 02109 [RECYCLED SIGN]PRINTED ON RECYCLED
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