<PAGE>
[PIONEER LOGO]
PIONEER
FUND
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SEMIANNUAL REPORT 6/30/99
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<PAGE>
TABLE OF CONTENTS
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Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 7
Schedule of Investments 10
Financial Statements 19
Notes to Financial Statements 27
Report of Independent Public Accountants 32
Trustees, Officers and Service Providers 33
Retirement Plans from Pioneer 34
Programs and Services for Pioneer Shareowners 36
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PIONEER FUND
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LETTER FROM THE CHAIRMAN 6/30/99
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DEAR SHAREOWNER,
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I am very pleased to introduce this report for Pioneer Fund, covering
a strong six months. On behalf of everyone at Pioneer, I thank you
for your interest and this opportunity to reflect on the investment
environment.
The first half of 1999 proved to be another eventful period for stock
investors. The long running bull market broadened as investors showed
a greater interest in many of the areas that were neglected in 1998,
namely mid-cap and small companies. The improvement in market breadth
is an indication of the cyclical nature of the open marketplace. The
large growth stocks that dominated the market for several years have
reached such high price levels that investors are finally looking
elsewhere. What they're seeing is a variety of stocks with strong
fundamentals, low prices and some real potential. For long-term
investors, holding quality companies at reasonable prices is a simple
and reliable philosophy that makes sense regardless of the type of
stocks in favor. It's a philosophy that Pioneer Fund has lived by for
more than 70 years.
Turning to other matters, for those of you who are interested in new
Pioneer products, we are pleased to introduce Pioneer Strategic
Income Fund. The Fund holds a diverse portfolio of bonds from around
the globe, including the United States. To receive a prospectus for
our newest fund - which you should read carefully before you invest
or send any money - or if you have questions regarding Pioneer Fund,
please contact your investment professional, or call Pioneer at
1-800-225-6292. You can also visit our web site at
www.pioneerfunds.com.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
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PIONEER FUND
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PORTFOLIO SUMMARY 6/30/99
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PORTFOLIO DIVERSIFICATION
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(As a percentage of total investment portfolio)
[PIE CHART]
U.S. Common Stocks 95%
International Common Stocks 2%
Depositary Receipts for
International Stocks 2%
Short-Term Cash Equivalents 1%
SECTOR DISTRIBUTION
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(As a percentage of equity holdings)
[PIE CHART]
Financial 18%
Technology 18%
Communication Services 13%
Consumer Cyclicals 11%
Healthcare 11%
Consumer Staples 10%
Capital Goods 6%
Energy 6%
Basic Materials 4%
Other 3%
10 LARGEST HOLDINGS
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(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------
1. Schering-Plough Corp. 4.03% 6. The Bank of New York Co., Inc. 2.00%
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2. IBM Corp. 3.13 7. Ameritech Corp. 1.72
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3. Sun Microsystems, Inc. 2.23 8. Sprint Corp. 1.63
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4. SBC Communications, Inc. 2.11 9. Bell Atlantic Corp. 1.63
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5. BellSouth Corp. 2.00 10. GTE Corp. 1.54
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</TABLE>
Fund holdings will vary for other periods.
2
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PIONEER FUND
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PERFORMANCE UPDATE 6/30/99 CLASS A SHARES
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SHARE PRICES AND DISTRIBUTIONS
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NET ASSET VALUE
PER SHARE 6/30/99 12/31/98
$47.75 $43.30
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
$0.070 - -
INVESTMENT RETURNS
-----------------------------------------------------------------------------
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.
AVERAGE ANNUAL TOTAL RETURNS
(As of June 30, 1999)
Net Asset Public Offering
PERIOD Value Price*
10 Years 16.49% 15.81%
5 Years 25.00 23.53
1 Year 23.49 16.40
* Reflects deduction of the maximum
5.75%d sales charge at the beginning
of the period and assumes reinvestment
of distributions at net asset value.
[MOUNTAIN CHART]
Growth of $10,000
Pioneer Fund* Standard & Poor's 500 Index
6/89 -- 9,425 10,000
6/90 -- 10,054 11,646
6/91 -- 10,434 12,503
6/92 -- 11,863 14,177
6/93 -- 13,665 16,107
6/94 -- 14,214 16,334
6/95 -- 16,676 20,584
6/96 -- 19,896 25,928
6/97 -- 26,638 34,916
6/98 -- 35,131 45,445
6/99 -- 43,383 55,664
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 6/30/99 CLASS B SHARES
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SHARE PRICES AND DISTRIBUTIONS
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NET ASSET VALUE
PER SHARE 6/30/99 12/31/98
$47.50 $43.20
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
- - -
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.
AVERAGE ANNUAL TOTAL RETURNS
(As of June 30, 1999)
IF IF
PERIOD HELD REDEEMED*
Life-of-Fund 28.45% 27.84%
(7/1/96)
1 Year 22.37 18.37
* Reflects deduction of the maximum
applicable contingent deferred sales
charge (CDSC) at the end of the
period and assumes reinvestment
of distributions. The maximum CDSC
of 4% declines over six years.
[MOUNTAIN CHART]
Growth of $10,000
Pioneer Fund* Standard & Poor's 500 Index
7/1/96 -- 10,000 10,000
10,212 10,232
12/31/96 -- 10,991 11,085
11,235 11,383
6/30/97 -- 13,253 13,367
14,473 14,367
12/31/97 -- 15,079 14,780
17,056 16,840
6/30/98 -- 17,319 17,398
15,803 15,671
12/31/98 -- 19,275 19,005
19,543 20,173
6/30/00 -- 20,894 21,327
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 6/30/99 CLASS C SHARES
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SHARE PRICES AND DISTRIBUTIONS
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NET ASSET VALUE
PER SHARE 6/30/99 12/31/98
$47.03 $42.76
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
- - -
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.
AVERAGE ANNUAL TOTAL RETURNS
(As of June 30, 1999)
IF IF
PERIOD HELD REDEEMED*
Life-of-Fund 28.03% 28.03%
(7/1/96)
1 Year 22.42 22.42
* Assumes reinvestment of distributions.
The 1% contingent deferred sales
charge (CDSC) applies to redemptions
made within one year of purchase.
[MOUNTAIN CHART]
Growth of $10,000
Pioneer Fund* Standard & Poor's 500 Index
7/1/96 -- 10,000 10,000
10,117 10,232
12/31/96 -- 10,874 11,085
11,117 11,383
6/30/97 -- 13,114 13,367
14,326 14,367
12/31/97 -- 14,925 14,780
16,880 16,840
6/30/98 -- 17,139 17,398
15,644 15,671
12/31/98 -- 19,081 19,005
19,349 20,173
6/30/99 -- 20,987 21,327
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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PERFORMANCE UPDATE 6/30/99 CLASS Y SHARES
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SHARE PRICES AND DISTRIBUTIONS
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NET ASSET VALUE
PER SHARE 6/30/99 5/6/99
$47.73 $46.44
DISTRIBUTIONS PER SHARE INCOME SHORT-TERM LONG-TERM
(5/6/99 - 6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
$0.070 - -
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.
CUMULATIVE TOTAL RETURNS*
(As of June 30, 1999)
IF IF
PERIOD HELD REDEEMED
Life-of-Fund 2.93% 2.93%
(5/6/99)
* Assumes reinvestment of distributions.
[MOUNTAIN CHART]
Growth of $10,000
Pioneer Fund* Standard & Poor's 500 Index
5/6/99 -- 10,000 10,000
5/31/99 -- 9,811 9,773
6/30/99 -- 10,293 10,306
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.
6
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PIONEER FUND
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
- --------------------------------------------------------------------------------
The first half of Pioneer Fund's fiscal year ended on June 30, 1999. The
following discussion with John A. Carey, your Fund's portfolio manager,
provides a detailed account of the investment environment and the strategies
that affected Fund performance during the period. An investment professional
for more than 20 years, Mr. Carey oversees the team responsible for the Fund's
daily management.
Q. VALUE STOCKS MADE A STRONG COMEBACK IN THE SECOND QUARTER. WHAT SPARKED THE
SHIFT IN INVESTOR DEMAND?
A: One of the intriguing aspects of the stock market is its changeability. What
is "hot" one quarter may be "cold" the next, for reasons hard to discern
from any actual business fundamentals such as sales and earnings growth.
The shift, or rotation, into value stocks resulted from better earnings
reports from many economically sensitive stocks. In addition, earnings
disappointments for some of the large companies that were driving the
market, particularly some of the technology issues, began to appear in March
and April. But frequently, these wakes and eddies tend to move through the
market with unpredictable short-term effects. The important thing, we think,
is to focus on the longer-term prospects for companies, since those
prospects are susceptible to some kind of analysis, and to invest on that
basis.
Q. DID THE BROADENING OF THE MARKET HELP FUND PERFORMANCE?
A: Yes, it was a definite plus, especially during the second quarter when it
helped the Fund outperform the broad market as Class A shares gained 8.69%
at net asset value versus 7.05% for the Standard & Poor's 500 Index. For
the six month period as a whole, the Fund's Class A shares returned 10.45%,
Class B 9.95% and Class C 9.98%, all at net asset value. In comparison, the
S&P 500 Index generated a total return of 12.38%, while the average growth
and income fund returned 10.93% as reported by Lipper, Inc. (Lipper is an
independent firm that tracks mutual fund performance.) Naturally we are
pleased, once again, to have positive results to report to you.
7
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PIONEER FUND
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/99 (CONTINUED)
- --------------------------------------------------------------------------------
Q. WHAT TYPE OF INVESTOR DO YOU HAVE IN MIND AS YOU MANAGE THE FUND?
A: We aim for Pioneer Fund to be an all-purpose, all-weather fund, appropriate
for a major or "core" portion of a long-term equity portfolio. We work at
assembling a representative selection of the very best, generally larger
companies, usually based in the United States. We attempt to buy stocks
when their price is favorable for good, longer-term gains. We generally
emphasize well-established companies with significant public operating
records, strong finances and evidence of management commitment to
stockholders. The portfolio is diversified across sectors and industries
and between companies. Moderation of risk and volatility and preservation
of capital are important considerations of our management style. All in
all, it is a value-based approach to the blue-chip market. Finally, we do
not "time" the market. Rather we keep the Fund substantially invested in
stocks throughout the market cycle, year in and year out.
Q. YOU ADDED A NUMBER OF NEW HOLDINGS OVER THE PERIOD. WHAT WERE THEY? WHAT
OTHER CHANGES WERE MADE?
A: We've been quite active. In the second quarter alone, we added 10 stocks
and deleted five. The new purchases reflect our search for value across a
wide range of industries. We think that Boeing, one of the two principal
commercial aerospace companies in the world, has potential for much
improved profitability over the next few years. Hasbro and Gap add to the
portfolio's focus on consumer goods and retailing. CVS and Kroger give
additional retail exposure, in drug and grocery stores, respectively.
Ralston-Ralston Purina is a maker of pet foods and batteries, an odd
combination, perhaps, but with meaningful unrecognized value. Texaco has
done well as oil prices have risen. BankBoston expects soon to be merged
into Fleet Financial, another New England banking company; the combined
enterprise will be the dominant bank in the region. Dow Jones, publisher of
The Wall Street Journal, is another operation with lots of room for
improvement and, we believe, a new management commitment to achieving it.
We believe that
8
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PIONEER FUND
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- --------------------------------------------------------------------------------
Adobe Systems, a specialized provider of software for printing and related
applications, is on track to continued prosperity.
Stock sales, all at profits, were completed in Novartis, Bank One, United
Healthcare, and General Motors (Class H). Of course, we can't guarantee
that what we have bought will do better than what we have sold. However, we
must make decisions every day about relative total return prospects. In the
instances just cited, we believe that we found more attractive situations
in which to deploy Fund assets.
Q. CORPORATIONS CONTINUE TO POST STRONG EARNINGS. DO YOU THINK THIS WILL
CONTINUE FOR THE REMAINDER OF THE YEAR?
A: While we are naturally wary of forecasts that ignore risks, we do find lots
of reasons for hope that American business will continue doing very well
over the next several years. The economic cycle we're in has been
extraordinarily long and robust. Part of the story is technology: the
United States is undergoing one of the most far-reaching transformations of
our industrial and service base ever. Technology is not only enhancing
productivity throughout the economy, but it is also a major growth engine
on its own, as our computer and software companies sell their products both
here and around the world. Telecommunications, pharmaceuticals, financial
services and consumer goods are a few of the other industries in which the
United States has leading global positions and that are also powering
economic growth everywhere. We recognize that growth won't come without
interruption - in this or any year - but we are optimistic about the
long-term prospects for the U.S. stock market.
9
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PIONEER FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
COMMON STOCKS - 99.5%
BASIC MATERIALS - 3.8%
ALUMINUM - 0.7%
738,000 Aluminum Co. of America, Inc. $ 45,663,750
--------------
CHEMICALS - 1.7%
290,000 Dow Chemical Co. $ 36,793,750
1,158,000 E.I. du Pont de Nemours & Co. 79,105,875
--------------
$ 115,899,625
--------------
CHEMICALS (SPECIALTY) - 0.1%
404,451 Lilly Industries, Inc. $ 7,507,622
--------------
CONTAINERS & PACKAGING (PAPER) - 0.3%
896,600 Greif Brothers Corp. (Non-voting) $ 22,863,300
--------------
IRON & STEEL - 0.4%
396,900 Nucor Corp. $ 18,827,944
382,000 Steel Dynamics, Inc.* 5,909,062
--------------
$ 24,737,006
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METALS MINING - 0.6%
647,900 Phelps Dodge Corp. $ 40,129,306
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TOTAL BASIC MATERIALS $ 256,800,609
--------------
CAPITAL GOODS - 5.7%
AEROSPACE/DEFENSE - 1.5%
500,000 Boeing Co. $ 22,093,750
312,300 General Dynamics Corp. 21,392,550
1,525,000 Lockheed Martin Corp. 56,806,250
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$ 100,292,550
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ELECTRICAL EQUIPMENT - 0.8%
445,800 Emerson Electric Co. $ 28,029,675
112,000 General Electric Co. 12,656,000
286,256 Hubbell, Inc. (Class B) 12,988,866
--------------
$ 53,674,541
--------------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
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PIONEER FUND
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
MACHINERY (DIVERSIFIED) - 2.1%
1,260,600 Caterpillar, Inc. $ 75,636,000
721,700 Deere & Co. 28,597,363
504,450 Ingersoll-Rand Co. 32,600,081
174,200 The Timken Co. 3,396,900
--------------
$ 140,230,344
--------------
MANUFACTURING (DIVERSIFIED) - 0.8%
355,800 Illinois Tool Works, Inc. $ 29,175,600
393,300 Johnson Controls, Inc. 27,260,606
--------------
$ 56,436,206
--------------
MANUFACTURING (SPECIALIZED) - 0.2%
416,100 Diebold Inc. $ 11,962,875
--------------
OFFICE EQUIPMENT & SUPPLIES - 0.3%
691,400 Canon Inc. (A.D.R.) $ 20,137,025
--------------
TOTAL CAPITAL GOODS $ 382,733,541
--------------
COMMUNICATIONS SERVICES - 13.2%
CELLULAR/WIRELESS TELECOMMUNICATIONS - 0.7%
800,000 Sprint Corp. (PCS Group)* $ 45,700,000
--------------
TELECOMMUNICATIONS - 1.6%
2,068,000 Sprint Corp. $ 109,216,250
--------------
TELEPHONE - 10.9%
754,400 Aliant Communications Co. $ 34,843,850
1,567,200 Ameritech Corp. 115,189,200
1,666,708 Bell Atlantic Corp. 108,961,036
2,859,600 BellSouth Corp. 134,043,750
1,360,900 GTE Corp. 103,088,175
2,433,202 SBC Communications, Inc. 141,125,716
1,674,351 US West Communications Group, Inc. 98,368,121
--------------
$ 735,619,848
--------------
TOTAL COMMUNICATIONS SERVICES $ 890,536,098
--------------
CONSUMER CYCLICALS - 11.1%
AUTOMOBILES - 2.5%
750,444 DaimlerChrysler AG $ 66,695,710
1,785,000 Ford Motor Co. 100,740,938
--------------
$ 167,436,648
--------------
</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 6/30/99 (CONTINUED)
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<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.6%
364,800 Sony Corp. (A.D.R.) $ 40,264,800
--------------
LEISURE TIME (PRODUCTS) - 0.2%
450,000 Hasbro, Inc. $ 12,571,875
--------------
PUBLISHING - 1.8%
3,494,400 John Wiley & Sons, Inc.+ $ 61,588,800
1,106,000 McGraw-Hill Co., Inc. 59,654,875
--------------
$ 121,243,675
--------------
PUBLISHING (NEWSPAPERS) - 0.7%
640,600 Central Newspapers, Inc. $ 24,102,575
400,000 Dow Jones & Co., Inc. 21,225,000
--------------
$ 45,327,575
--------------
RETAIL (DEPARTMENT STORES) - 1.8%
568,500 Harcourt General, Inc. $ 29,313,281
596,400 Kohl's Corp.* 46,034,625
1,234,800 May Department Stores Co. 50,472,450
--------------
$ 125,820,356
--------------
RETAIL (DISCOUNTERS) - 0.8%
1,843,875 Dollar General Corp. $ 53,472,375
--------------
RETAIL (GENERAL MERCHANDISE) - 2.1%
1,380,000 Dayton Hudson Corp. $ 89,700,000
1,052,000 Wal-Mart Stores, Inc. 50,759,000
--------------
$ 140,459,000
--------------
RETAIL (SPECIALTY) - 0.2%
525,300 Barnes & Noble, Inc.* $ 14,380,087
--------------
RETAIL (SPECIALTY/APPAREL) - 0.1%
75,000 Gap Inc. $ 3,778,125
--------------
SERVICES (ADVERTISING/MARKETING) - 0.3%
290,200 Omnicom Group $ 23,216,000
--------------
TOTAL CONSUMER CYCLICALS $ 747,970,516
--------------
CONSUMER STAPLES - 10.4%
BEVERAGES (NON-ALCOHOLIC) - 0.4%
765,000 Pepsico, Inc. $ 29,595,937
--------------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER FUND
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
BROADCASTING (CABLE/TELEVISION/RADIO) - 1.8%
481,900 Belo (A.H.) Corp. $ 9,487,406
1,511,900 CBS Corp. 65,673,156
51,200 Hearst-Argyle Television, Inc.* 1,228,800
565,700 MediaOne Group, Inc.* 42,073,938
--------------
$ 118,463,300
--------------
DISTRIBUTORS (FOOD & HEALTH) - 0.4%
866,200 Sysco Corp. $ 25,823,587
--------------
FOODS - 4.6%
1,004,600 Bestfoods $ 49,727,700
1,011,000 Campbell Soup Co. 46,885,125
1,204,000 ConAgra, Inc. 32,056,500
480,300 General Mills, Inc. 38,604,113
955,150 H.J. Heinz Co. 47,876,894
650,000 Hershey Foods Corp. 38,593,750
139,000 Nestle SA (A.D.R.) 12,649,000
389,100 Ralston-Ralston Purina Group 11,843,231
1,330,000 Sara Lee Corp. 30,174,375
--------------
$ 308,410,688
--------------
HOUSEHOLD PRODUCTS (NON-DURABLES) - 0.8%
529,300 Colgate-Palmolive Co. $ 52,268,375
--------------
RESTAURANTS - 0.4%
640,000 McDonald's Corp. $ 26,440,000
--------------
RETAIL (DRUG STORES) - 1.4%
200,000 CVS Corp. $ 10,150,000
2,851,200 Walgreen Co. 83,754,000
--------------
$ 93,904,000
--------------
RETAIL STORES (FOOD CHAINS) - 0.1%
400,000 Kroger Co.* $ 11,175,000
--------------
SERVICES (EMPLOYMENT) - 0.5%
1,266,900 Robert Half International, Inc.* $ 32,939,400
--------------
TOTAL CONSUMER STAPLES $ 699,020,287
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
PIONEER FUND
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SCHEDULE OF INVESTMENTS 6/30/99 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
ENERGY - 5.4%
OIL (DOMESTIC INTEGRATED) - 1.1%
649,300 Atlantic Richfield Co. $ 54,257,131
700,000 Conoco Inc. 19,512,500
--------------
$ 73,769,631
--------------
OIL (INTERNATIONAL INTEGRATED) - 3.4%
1,061,000 Chevron Corp. $ 100,993,938
545,000 Exxon Corp. 42,033,125
650,300 Mobil Corp. 64,379,700
400,000 Texaco, Inc. 25,000,000
--------------
$ 232,406,763
--------------
OIL & GAS (DRILLING & EQUIPMENT) - 0.9%
523,000 Schlumberger Ltd. $ 33,308,563
670,100 Smith International, Inc.* 29,107,468
--------------
$ 62,416,031
--------------
TOTAL ENERGY $ 368,592,425
--------------
FINANCIAL - 18.3%
BANKS (MAJOR REGIONAL) - 6.2%
3,646,800 The Bank of New York Co., Inc $ 133,791,975
450,000 BankBoston Corp. 23,006,250
473,700 Comerica, Inc. 28,155,544
671,000 Huntington Bancshares, Inc. 23,485,000
1,886,600 Mellon Bank Corp. 68,625,075
1,182,324 National City Corp. 77,442,222
756,800 State Street Corp. 64,611,800
--------------
$ 419,117,866
--------------
BANKS (REGIONAL) - 0.7%
625,700 First Tennessee National Corp. $ 23,972,131
415,000 Zions Bancorporation 26,352,500
--------------
$ 50,324,631
--------------
FINANCIAL (DIVERSIFIED) - 2.6%
835,642 Associates First Capital Corp. $ 37,029,386
1,068,200 The Equitable Companies, Inc. 71,569,400
420,000 Federal National Mortgage Association 28,717,500
346,750 Morgan Stanley, Dean Witter & Co. 35,541,875
--------------
$ 172,858,161
--------------
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER FUND
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
INSURANCE (LIFE/HEALTH) - 0.4%
636,200 ReliaStar Financial Corp. $ 27,833,750
--------------
INSURANCE (MULTI-LINE) - 0.7%
419,850 American International Group, Inc. $ 49,148,691
--------------
INSURANCE (PROPERTY/CASUALTY) - 3.1%
1,174,200 Chubb Corp. $ 81,606,900
707,300 Exel Ltd. 39,962,450
535,400 Partnerre Ltd. 20,010,575
930,400 Safeco Corp. 41,053,900
773,200 The St. Paul Companies, Inc. 24,597,425
--------------
$ 207,231,250
--------------
INSURANCE BROKERS - 0.8%
729,000 Marsh & McLennan Co., Inc. $ 55,039,500
--------------
INVESTMENT BANKING/BROKERAGE - 2.0%
621,000 Merrill Lynch & Co., Inc. $ 49,641,188
1,820,500 Paine Webber Group, Inc. 85,108,375
--------------
$ 134,749,563
--------------
INVESTMENT MANAGEMENT - 1.4%
777,000 Federated Investors, Inc. (Class B) $ 13,937,438
2,100,000 T. Rowe Price Associates, Inc. 80,587,500
--------------
$ 94,524,938
--------------
SAVINGS & LOAN COMPANIES - 0.4%
693,840 Washington Mutual, Inc. $ 24,544,590
--------------
TOTAL FINANCIAL $1,235,372,940
--------------
HEALTHCARE - 11.3%
HEALTHCARE (DIVERSIFIED) - 3.3%
787,200 Abbott Laboratories $ 35,817,600
1,428,000 Bristol-Myers Squibb Co. 100,584,750
850,000 Johnson & Johnson 83,300,000
--------------
$ 219,702,350
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/99 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
HEALTHCARE (DRUGS/MAJOR PHARMACEUTICALS) - 6.9%
410,000 Eli Lilly & Co. $ 29,366,250
600,600 Merck & Co., Inc. 44,444,400
3,898 Roche Holdings AG 40,047,602
5,092,800 Schering-Plough Corp. 269,918,400
1,243,000 Smithkline Beecham Plc (A.D.R.) 82,115,687
--------------
$ 465,892,339
--------------
HEALTHCARE (MANAGED CARE) - 0.4%
330,800 Wellpoint Health Networks, Inc.* $ 28,076,650
--------------
HEALTHCARE (MEDICAL PRODUCTS/SUPPLIES) - 0.7%
1,532,800 Becton, Dickinson & Co. $ 45,984,000
--------------
TOTAL HEALTHCARE $ 759,655,339
--------------
TECHNOLOGY - 17.8%
COMMUNICATIONS EQUIPMENT - 3.1%
300,500 General Instrument Corp.* $ 12,771,250
556,400 Harris Corp. 21,803,925
1,216,968 Lucent Technologies, Inc. 82,069,280
937,900 Motorola, Inc. 88,866,025
--------------
$ 205,510,480
--------------
COMPUTER (HARDWARE) - 8.0%
3,490,000 Compaq Computer Corp. $ 82,669,375
940,000 Hewlett-Packard Co. 94,470,000
1,624,000 IBM Corp. 209,902,000
2,170,000 Sun Microsystems, Inc.* 149,458,750
--------------
$ 536,500,125
--------------
COMPUTERS (SOFTWARE & SERVICES) - 0.8%
49,000 Adobe Systems, Inc. $ 4,025,656
837,000 Aspen Technology, Inc.* 9,834,750
160,000 BMC Software, Inc.* 8,640,000
600,000 Oracle Corp.* 22,275,000
498,500 Peoplesoft, Inc.* 8,599,125
--------------
$ 53,374,531
--------------
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
ELECTRONICS (SEMICONDUCTORS) - 3.1%
800,000 Altera Corp.* $ 29,450,000
1,270,000 Intel Corp 75,565,000
692,000 Texas Instruments, Inc. 100,340,000
--------------
$ 205,355,000
--------------
EQUIPMENT (SEMICONDUCTORS) - 0.3%
295,000 Applied Materials, Inc.* $ 21,793,125
--------------
PHOTOGRAPHY/IMAGING - 0.8%
829,100 Eastman Kodak Co. $ 56,171,525
--------------
SERVICES (COMPUTER SYSTEMS) - 0.6%
623,100 Computer Sciences Corp.* $ 43,110,731
--------------
SERVICES (DATA PROCESSING) - 1.1%
817,200 Automatic Data Processing, Inc. $ 35,956,800
276,400 DST Systems, Inc.* 17,378,650
205,000 Electronic Data Systems Corp. 11,595,312
367,500 Fiserv, Inc.* 11,507,344
--------------
$ 76,438,106
--------------
TOTAL TECHNOLOGY $1,198,253,623
--------------
TRANSPORTATION - 1.2%
AIRLINES - 0.3%
322,908 Delta Air Lines, Inc. $ 18,607,574
--------------
RAILROADS - 0.9%
540,500 Burlington Northern Santa Fe Corp. $ 16,755,500
1,463,900 Norfolk Southern Corp. 44,099,988
--------------
$ 60,855,488
--------------
TOTAL TRANSPORTATION $ 79,463,062
--------------
UTILITIES - 1.3%
ELECTRIC COMPANIES - 0.8%
1,125,100 Allegheny Power Systems, Inc. $ 36,073,519
968,900 DPL, Inc. 17,803,537
--------------
$ 53,877,056
--------------
NATURAL GAS - 0.2%
767,533 Indiana Energy, Inc. $ 16,358,047
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/99 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
WATER UTILITY - 0.3%
552,600 American Water Works Co., Inc. $ 16,992,450
--------------
TOTAL UTILITIES $ 87,227,553
--------------
TOTAL COMMON STOCKS
(Cost $3,420,106,379) $6,705,625,993
--------------
PRINCIPAL
AMOUNT
TEMPORARY CASH INVESTMENT - 0.5%
COMMERCIAL PAPER - 0.5%
$36,483,000 American Express Credit Corp., 5.5%, 7/1/99 $ 36,483,000
--------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $36,483,000) $ 36,483,000
--------------
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $3,456,589,379)(a) $6,742,108,993
==============
</TABLE>
* Non-income producing security.
+ Investment held by Fund representing 5% or more of the outstanding
voting stock of such company.
(a) At June 30, 1999, the net unrealized gain on investments based on
cost for federal income tax purposes of $3,456,589,379 was as
follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments
in which there is an excess of value over tax cost $3,335,599,633
Aggregate gross unrealized loss for all
investments in which there is an excess of tax
cost over value (50,080,019)
--------------
Net unrealized gain $3,285,519,614
==============
</TABLE>
Purchases and sales of securities (excluding temporary cash
investments) for the six months ended June 30, 1999, aggregated
$868,694,083 and $429,257,894, respectively.
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER FUND
-----------------------------------------------------------------------------
BALANCE SHEET 6/30/99
-----------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary
cash
investment of $36,483,000) (cost $3,456,589,379) $6,742,108,993
Cash 18,066
Receivables -
Fund shares sold 14,093,094
Dividends, interest and foreign taxes withheld 6,246,536
Other 47,663
--------------
Total assets $6,762,514,352
--------------
LIABILITIES:
Payables -
Investment securities purchased $ 16,243,496
Fund shares repurchased 2,114,252
Dividends 793
Due to affiliates 6,431,730
Accrued expenses 380,626
--------------
Total liabilities $ 25,170,897
--------------
NET ASSETS:
Paid-in capital $3,149,552,960
Accumulated undistributed net investment income 3,214,453
Accumulated undistributed net realized gain on
investments 299,057,828
Net unrealized gain on investments 3,285,519,614
Net unrealized loss on other assets and liabilities
denominated in foreign currencies (1,400)
--------------
Total net assets $6,737,343,455
==============
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $6,164,066,251/129,103,790 shares) $ 47.75
==============
Class B (based on $458,030,301/9,642,102 shares) $ 47.50
==============
Class C (based on $104,531,423/2,222,525 shares) $ 47.03
==============
Class Y (based on $10,715,480/224,488 shares) $ 47.73
==============
MAXIMUM OFFERING PRICE:
Class A $ 50.66
==============
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
PIONEER FUND
-----------------------------------------------------------------------------
STATEMENT OF OPERATIONS
-----------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED 6/30/99
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld
of $435,716) $ 45,608,550
Interest 1,277,056
------------
Total investment income $ 46,885,606
------------
EXPENSES:
Management fees
Basic fee $ 18,246,737
Performance adjustment 1,967,068
Transfer agent fees
Class A 5,140,667
Class B 541,917
Class C 102,690
Class Y 1,839
Distribution fees
Class A 5,761,441
Class B 1,764,502
Class C 366,710
Administrative fees 286,065
Custodian fees 121,274
Registration fees 336,007
Professional fees 155,000
Printing 145,784
Fees and expenses of nonaffiliated trustees 43,246
Miscellaneous 43,092
------------
Total expenses $ 35,024,039
Less fees paid indirectly (409,185)
------------
Net expenses $ 34,614,854
------------
Net investment income $ 12,270,752
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from:
Investments $299,058,331
Other assets and liabilities denominated
in foreign currencies (503) $299,057,828
------------ ------------
Change in net unrealized gain from:
Investments $309,898,529
Other assets and liabilities denominated
in foreign currencies (1,400) $309,897,129
------------ ------------
Net gain on investments $608,954,957
------------
Net increase in net assets resulting
from operations $621,225,709
------------
</TABLE>
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER FUND
-----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
-----------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED 6/30/99 AND THE YEAR ENDED 12/31/98
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
FROM OPERATIONS: 6/30/99 12/31/98
<S> <C> <C>
Net investment income $ 12,270,752 $ 23,583,905
Net realized gain on investments 299,057,828 188,378,688
Change in net unrealized gain on investments and foreign
currency transactions 309,897,129 1,016,960,019
-------------- --------------
Net increase in net assets resulting
from operations $ 621,225,709 $1,228,922,612
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ($0.07 and $0.21 per share, respectively) $ (9,040,509) $ (23,991,812)
Class Y ($0.07 and $0.00 per share, respectively) (15,790) -
Net realized gain:
Class A ($0.00 and $1.49 per share, respectively) - (178,206,860)
Class B ($0.00 and $1.49 per share, respectively) - (8,623,800)
Class C ($0.00 and $1.49 per share, respectively) - (1,502,241)
-------------- --------------
Total distributions to shareholders $ (9,056,299) $ (212,324,713)
-------------- --------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 821,435,118 $1,075,355,825
Reinvestment of distributions 8,015,245 192,687,584
Cost of shares repurchased (412,221,420) (629,692,713)
-------------- --------------
Net increase in net assets resulting from fund share
transactions $ 417,228,943 $ 638,350,696
-------------- --------------
Net increase in net assets $1,029,398,353 $1,654,948,595
NET ASSETS:
Beginning of period 5,707,945,102 4,052,996,507
-------------- --------------
End of period (including accumulated undistributed net
investment income of $3,214,453 and $0, respectively) $6,737,343,455 $5,707,945,102
============== ==============
</TABLE>
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
PIONEER FUND
-----------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
-----------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED 6/30/99 AND THE YEAR ENDED 12/31/98
<TABLE>
<CAPTION>
CLASS A '99 SHARES '99 AMOUNT '98 SHARES '98 AMOUNT
<S> <C> <C> <C> <C>
Shares sold 12,848,981 $ 575,095,359 20,599,912 $ 809,225,041
Reinvestment of distributions 176,215 7,999,454 4,465,786 183,937,799
Less shares repurchased (8,368,546) (375,456,894) (14,825,021) (578,631,413)
---------- ------------- ----------- -------------
Net increase 4,656,650 $ 207,637,919 10,240,677 $ 414,531,427
========== ============= =========== =============
CLASS B
Shares sold 3,979,391 $ 177,966,236 5,636,157 $ 221,555,435
Reinvestment of distributions - - 186,678 7,724,353
Less shares repurchased (628,219) (28,089,783) (1,046,121) (40,159,056)
---------- ------------- ----------- -------------
Net increase 3,351,172 $ 149,876,453 4,776,714 $ 189,120,732
========== ============= =========== =============
CLASS C
Shares sold 1,307,892 $ 57,840,625 1,134,435 $ 44,575,349
Reinvestment of distributions - - 25,035 1,025,432
Less shares repurchased (193,502) (8,553,545) (289,689) (10,902,244)
---------- ------------- ----------- -------------
Net increase 1,114,390 $ 49,287,080 869,781 $ 34,698,537
========== ============= =========== =============
CLASS Y*
Shares sold 226,798 $ 10,532,898
Reinvestment of distributions 341 15,791
Less shares repurchased (2,651) (121,198)
---------- -------------
Net increase 224,488 $ 10,427,491
========== =============
</TABLE>
* Class Y shares were first publicly offered on May 6, 1999.
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
CLASS A 6/30/99 12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 43.30 $ 34.95 $ 26.89 $ 24.3 $ 21.32 $ 23.25
---------- ---------- ---------- --------- ---------- ----------
Increase (decrease) from investment operations:
Net investment income $ 0.10 $ 0.21 $ 0.30 $ 0.3 $ 0.49 $ 0.49
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions 4.42 9.84 9.97 4.3 5.13 (0.63)
---------- ---------- ---------- --------- ---------- ----------
Net increase (decrease) from investment
operations $ 4.52 $ 10.05 $ 10.27 $ 4.72 $ 5.62 $ (0.14)
Distributions to shareholders:
Net investment income (0.07) (0.21) (0.31) (0.37) (0.49) (0.49)
Net realized gain - (1.49) (1.90) (1.82) (2.09) (1.30)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net asset value $ 4.45 $ 8.35 $ 8.06 $ 2.53 $ 3.04 $ (1.93)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 47.75 $ 43.30 $ 34.95 $ 26.89 $ 24.36 $ 21.32
========== ========== ========== ========== ========== ==========
Total return* 10.45% 29.00% 38.47% 19.70% 26.64% (0.57)%
Ratio of net expenses to average net assets 1.09%**+ 1.09%+ 1.03%+ 1.01%+ 0.95%+ 0.94%
Ratio of net investment income to average net
assets 0.45%**+ 0.52%+ 0.93%+ 1.40%+ 2.01%+ 2.13%
Porfolio turnover rate 14%** 9% 17% 25% 31% 20%
Net assets, end of period (in thousands) $6,164,066 $5,388,761 $3,991,726 $2,896,670 $2,466,098 $2,011,051
Ratios assuming reduction for fees paid
indirectly:
Net expenses 1.07%** 1.08% 1.02% 0.99% 0.94% -
Net investment income 0.47%** 0.53% 0.94% 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.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 23
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED 7/1/96 TO
CLASS B 6/30/99 12/31/98 12/31/97(A) 12/31/96(A)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 43.20 $ 35.01 $ 27.02 $26.40
-------- -------- ------- ------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.05) $ (0.04) $ 0.01 $ 0.07
Net realized and unrealized gain on investments and
foreign currency transactions 4.35 9.72 9.99 2.50
-------- -------- ------- ------
Net increase from investment operations $ 4.30 $ 9.68 $ 10.00 $ 2.57
Distributions to shareholders:
Net investment income - - (0.11) (0.07)
In excess of net investment income - - - (0.06)
Net realized gain - (1.49) (1.90) (1.82)
-------- -------- ------- ------
Net increase in net asset value $ 4.30 $ 8.19 $ 7.99 $ 0.62
-------- -------- ------- ------
Net asset value, end of period $ 47.50 $ 43.20 $ 35.01 $27.02
======== ======== ======= ======
Total return* 9.95% 27.82% 37.19% 9.92%
Ratio of net expenses to average net assets 2.00%**+ 1.99%+ 1.92%+ 1.82%**+
Ratio of net investment income (loss) to average net assets (0.47)%**+ (0.41)%+ (0.02)%+ 0.46%**+
Porfolio turnover rate 14%** 9% 17% 25%
Net assets, end of period (in thousands) $458,030 $271,796 $53,010 $8,940
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.98%** 1.96% 1.88% 1.80%**
Net investment income (loss) (0.45)%** (0.38)% 0.02% 0.48%**
</TABLE>
<TABLE>
<S> <C>
(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.
+ Ratio assuming no reduction for fees paid indirectly.
</TABLE>
24 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED 7/1/96 TO
CLASS C 6/30/99 12/31/98 12/31/97(A) 12/31/96(A)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 42.76 $ 34.66 $26.74 $26.40
-------- ------- ------ ------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.03) $ (0.04) $ 0.02 $ 0.03
Net realized and unrealized gain on investments and
foreign currency transactions 4.30 9.63 9.89 2.23
-------- ------- ------ ------
Net increase from investment operations $ 4.27 $ 9.59 $ 9.91 $ 2.26
Distributions to shareholders:
Net investment income - - (0.09) (0.03)
In excess of net investment income - - - (0.07)
Net realized gain - (1.49) (1.90) (1.82)
-------- ------- ------ ------
Net increase in net asset value $ 4.27 $ 8.10 $ 7.92 $ 0.34
-------- ------- ------ ------
Net asset value, end of period $ 47.03 $ 42.76 $34.66 $26.74
======== ======= ====== ======
Total return* 9.98% 27.85% 37.25% 8.74%
Ratio of net expenses to average net assets 1.98%**+ 1.97%+ 1.87%+ 2.11%**+
Ratio of net investment income (loss) to average net assets (0.44)%**+ (0.39)%+ 0.02%+ 0.20%**+
Porfolio turnover rate 14%** 9% 17% 25%
Net assets, end of period (in thousands) $104,531 $47,389 $8,261 $1,831
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.94%** 1.93% 1.83% 2.08%**
Net investment income (loss) (0.40)%** (0.35)% 0.06% 0.23%**
</TABLE>
<TABLE>
<S> <C>
(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.
+ Ratio assuming no reduction for fees paid indirectly.
</TABLE>
The accompanying notes are an integral part of these financial statements. 25
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/99
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
5/6/99 TO
CLASS Y (a) 6/30/99
<S> <C>
Net asset value, beginning of period $ 46.44
-------
Increase from investment operations:
Net investment income $ 0.04
Net realized and unrealized gain on investments and
foreign currency transactions 1.32
-------
Net increase from investment operations $ 1.36
Distributions to shareholders:
Net investment income (0.07)
-------
Net increase in net asset value $ 1.29
-------
Net asset value, end of period $ 47.73
=======
Total return* 2.93%
Ratio of net expenses to average net assets 0.83%**+
Ratio of net investment income to average net assets 0.64%**+
Porfolio turnover rate 14%**
Net assets, end of period (in thousands) $10,715
Ratios assuming reduction for fees paid indirectly:
Net expenses 0.83%**
Net investment income 0.64%**
</TABLE>
<TABLE>
<S> <C>
(a) Class Y shares were first publicly offered on May 6, 1999.
* Assumes initial investment at net asset value at the
beginning of each period, reinvestment of all distributions
and the complete redemption of the investment at net asset
value at the end of each period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
</TABLE>
26 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/99
- --------------------------------------------------------------------------------
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 four classes of shares - Class A, Class B, Class C and
Class Y shares. Class Y shares were first publicly offered on May 6,
1999. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has equal rights to voting,
redemptions, dividends and liquidation, except that the level of
transfer agent and distribution fees may differ among classes. Class
A, Class B and Class C shareholders have exclusive voting rights with
respect to the distribution plan for each class. There is no
distribution plan for Class Y shares.
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. The net asset
value is computed once daily, on each day the New York Stock
Exchange is open, as of the close of regular trading on the
Exchange. In computing the net asset value, 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.
27
<PAGE>
PIONEER FUND
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/99 (CONTINUED)
- --------------------------------------------------------------------------------
Gains and losses on sales of investments are calculated on the
identified cost method for both financial reporting and federal
income tax purposes. It is the Fund's practice to first select for
sale those securities that have the highest cost and also qualify
for long-term capital gain or loss treatment for tax purposes.
Settlements from litigation and class action suits are recognized
when the Fund acquires an enforceable right to such awards.
Included in net realized gain on investments is $59,103 of class
action settlements received by the Fund during the six months ended
June 30, 1999.
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.
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PIONEER FUND
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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 $1,627,733 in underwriting
commissions on the sale of fund shares during the six months ended
June 30, 1999.
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. Class Y shares are not subject to a
distribution plan. 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, Class C and Class Y
shares can bear different transfer agent and distribution fees.
2. MANAGEMENT AGREEMENT
Pioneer Investment Management, Inc. (PIM), the Fund's investment
adviser, manages the Fund's portfolio and is a wholly owned subsidiary
of PGI. PIM 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 of (between + or -)
0.10% based on the Fund's investment performance as compared with the
Lipper Growth & Income Funds Index. For the six months ended June 30, 1999,
the aggregate performance adjustment resulted in an increase to management
fees of $1,967,068. For the six months
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PIONEER FUND
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NOTES TO FINANCIAL STATEMENTS 6/30/99 (CONTINUED)
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ended June 30, 1999, the management fee was equivalent to 0.66% of
average daily net assets.
In addition, under the management and administration agreements,
certain other services and costs, including accounting, regulatory
reporting and insurance premiums, are paid by the Fund. At June 30,
1999, $3,927,628 was payable to PIM related to management fees,
administrative and certain other services.
3. TRANSFER AGENT
PSC, a wholly owned subsidiary of PGI, provides substantially all
transfer agent and shareholder services to the Fund at negotiated
rates. Included in due to affiliates is $1,033,159 in transfer agent
fees payable to PSC at June 30, 1999.
4. DISTRIBUTION PLANS
The Fund adopted a Plan of Distribution with respect to Class A, Class
B and Class C 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 the Class C Plan, the Fund pays PFD 1.00% of the average
daily net assets attributable to each class of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee paid as
compensation for personal services and/or account maintenance services
or distribution services with regard to Class B and Class C shares.
Included in due to affiliates is $1,470,943 in distribution fees
payable to PFD at June 30, 1999.
In addition, redemptions of each class of shares (except Class Y
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
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PIONEER FUND
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of Class C shares within one year of purchase are subject to a CDSC of
1.00%. Proceeds from the CDSCs are paid to PFD. For the six months
June 30, 1999, CDSCs in the amount of $334,905 were paid to PFD.
5. EXPENSE OFFSETS
The Fund has entered into certain directed brokerage and expense
offset arrangements resulting in a reduction in the Fund's total
expenses. For the six months ended June 30, 1999, the Fund's expenses
were reduced by $409,185 under such arrangements.
6. LINE OF CREDIT
The Fund, along with certain other funds in the Pioneer Family of
Funds (the Funds), collectively participate in a $50 million
committed, unsecured revolving line of credit facility. Borrowings are
used solely for temporary or emergency purposes. The Fund may borrow
up to the lesser of $50 million or the limits set by its prospectus
for borrowings. Interest on collective borrowings of up to $25 million
is payable at the Federal Funds Rate plus 3/8% on an annualized basis,
or at the Federal Funds Rate plus 1/2% if the borrowing exceeds $25
million at any one time. The Funds pay an annual commitment fee for
this facility. The commitment fee is allocated among such Funds based
on their respective borrowing limits. For the six months ended June
30, 1999, the Fund had no borrowings under this agreement.
7. 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, 1999:
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DIVIDEND
AFFILIATES PURCHASES SALES INCOME VALUE
John Wiley & Sons, Inc. - - $111,384 $61,588,800
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PIONEER FUND
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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TO THE SHAREOWNERS 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, 1999, 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 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, 1999, 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, 1999, 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 6, 1999
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PIONEER FUND
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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TRUSTEES OFFICERS
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice
Margaret B.W. Graham President
John W. Kendrick John A. Carey, Vice President
Marguerite A. Piret Eric W. Reckard, Treasurer
David D. Tripple Joseph P. Barri, Secretary
Stephen K. West
John Winthrop
INVESTMENT ADVISER
Pioneer Investment Management, Inc.
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
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RETIREMENT PLANS FROM PIONEER
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Pioneer has a long history of helping people work toward their
retirement goals, offering plans suited to the individual investor and
businesses of all sizes. For more information on Pioneer retirement
plans, contact your investment professional, or call Pioneer at 1-800-
622-0176
INDIVIDUAL RETIREMENT ACCOUNT (IRA)
TRADITIONAL IRA
A Traditional IRA allows anyone under age 70 1/2 with earned income to
contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a
married couple. Earnings are tax-deferred, and contributions may be
tax-deductible.
ROTH IRA
Contributions, up to $2,000 a year per person in earned income, are
not tax-deductible, but earnings are tax-free for qualified
withdrawals. You can contribute beyond age 70 1/2, although there are
income limits for contributions at any age.
401(K) PLAN
The traditional 401(k) plan allows employees to make pre-tax
contributions through payroll deduction, up to $10,000 per year or 25%
of pay, whichever is less. Employers may contribute.
SIMPLE (SAVINGS INCENTIVE MATCH PLAN FOR EMPLOYEES)
IRA
Businesses with 100 or fewer eligible employees can establish either
plan; both resemble the traditional 401(k), but with less testing and
lower administration costs. Employees can make pre-tax contributions
of up to $6,000 per year, and an employer contribution is required.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
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403(b) PLAN
Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is
available only to employees of public schools, not-for-profit
hospitals and other tax-exempt organizations. A 403(b) plan lets
employees set aside a portion of their salary, before taxes, through
payroll deduction.
SIMPLIFIED EMPLOYEE PENSION PLAN (SEP)
SEPs let self-employed people and small-business owners make tax-
deductible contributions of up to 15% of their income. Generally,
employers must contribute the same percentage of pay for themselves
and any eligible employees; contributions are made directly to
employees' IRAs. SEPs are easy to administer and can be an especially
good choice for firms with few or no employees.
PROFIT SHARING PLAN
Profit sharing plans offer companies considerable flexibility,
allowing them to decide each year whether a contribution will be made
and how much, up to 15% of each participant's pay. These plans can
include provisions for loans and vesting schedules.
AGE-BASED PROFIT SHARING PLAN
Like traditional profit sharing plans, employer contributions are
flexible, but age-based plans allocate contributions based on both age
and salary. Age-based plans are designed for employers who want to
maximize their own contributions while keeping contributions to
employees affordable.
MONEY PURCHASE PENSION PLAN (MPP)
Money purchase plans are similar to profit-sharing plans, but allow
for higher annual contributions - up to 25% of pay. MPPs aren't as
flexible as profit sharing plans; a fixed percentage of pay must be
contributed each year, determined when the plan is established.
Businesses often set up both MPPs and profit sharing plans.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
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PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
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Your investment professional can give you additional information on
Pioneer's programs and services. If you want to order literature on
any of the following items directly, simply call Pioneer at
1-800-225-6292.
FACTFONE(SM)
Our automated account information service, available to you 24 hours
a day, seven days a week. FactFone gives you a quick and easy way to
check fund share prices, yields, dividends and distributions, as well
as information about your own account. Simply call 1-800-225-4321.
For specific account information, have your 13-digit account number
and four-digit personal identification number at hand.
90-DAY REINSTATEMENT PRIVILEGE (FOR CLASS A SHARES)
Enables you to reinvest all or a portion of the money you redeem from
your Pioneer account - without paying a sales charge - within 90 days
of your redemption. You have the choice of investing in any Pioneer
fund, as long as you meet its minimum investment requirement.
INVESTOMATIC PLAN
An easy and convenient way for you to invest on a regular basis. All
you need to do is authorize a set amount of money to be moved out of
your bank account into the Pioneer fund of your choice. Investomatic
also allows you to change the dollar amount, frequency and investment
date right over the phone. By putting aside affordable amounts of
money regularly, you can build a long-term investment - without
sacrificing your current standard of living.
PAYROLL INVESTMENT PROGRAM (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All
that's involved is for your employer to fill out an authorization
form allowing Pioneer to deduct from participating employees'
paychecks. You specify the dollar amount you want to invest into the
Pioneer fund(s) of your choice.
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AUTOMATIC EXCHANGE PROGRAM
A simple way to move money from one Pioneer fund to another over a
period of time. Just invest a lump sum in one fund, and select the
other Pioneer funds you wish to invest in. You choose the amounts and
dates for Pioneer to sell shares of your original fund and use the
proceeds to buy shares of the other funds you have chosen. Over time,
your investment will be shifted out of the original fund. (Automatic
Exchange is available for originating accounts with a balance of
$5,000 or more.)
DIRECTED DIVIDENDS
Lets you invest cash dividends from one Pioneer fund to an account in
another Pioneer fund with no sales charge or fee. Simply fill out the
applicable information on a Pioneer Account Options Form. (This
program is available for dividend payments only; capital gains
distributions are not eligible at this time.)
DIRECT DEPOSIT
Lets you move money into your bank account using electronic funds
transfer (EFT). EFT moves your money faster than you would receive a
check, eliminates unnecessary paper and mail, and avoids lost checks.
Simply fill out a Pioneer Direct Deposit Form, giving your
instructions.
SYSTEMATIC WITHDRAWAL PLAN (SWP)
Lets you establish automatic withdrawals from your account at set
intervals. You decide the frequency and the day of the month you
want. Pioneer will send the proceeds by check to the address you
designate, or electronically to your bank account. You also can
authorize Pioneer to make the redemptions payable to someone else.
(SWPs are available for accounts with a value of $10,000 or more.)
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HOW TO CONTACT PIONEER
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We are pleased to offer a variety of convenient ways for you to
contact us for assistance or information.
CALL US FOR:
ACCOUNT INFORMATION, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FACTFONE(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
RETIREMENT PLANS INFORMATION 1-800-622-0176
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD) 1-800-225-1997
WRITE TO US:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
OUR TOLL-FREE FAX 1-800-225-4240
OUR INTERNET E-MAIL ADDRESS [email protected]
(for general questions about Pioneer only)
VISIT OUR WEBSITE: www.pioneerfunds.com
THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT
FUND PROSPECTUS.
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<S> <C> <C>
[PIONEER LOGO] PIONEER FUNDS DISTRIBUTOR, INC. 0899-6842
60 STATE STREET (C) PIONEER FUNDS DISTRIBUTOR, INC.
BOSTON, MASSACHUSETTS 02109 [RECYCLE LOGO] PRINTED ON RECYCLED PAPER
www.pioneerfunds.com
</TABLE>
