<PAGE>
DEAR FELLOW SHAREOWNERS,
-------------------------------------------------------------------------------
This semiannual report details the performance of Pioneer Intermediate Tax-
Free Fund for the first half of 1995. Bond markets generally moved ahead
strongly during the period, prompted by a number of events, from the weakening
U.S. dollar to lower long-term interest rates. Your Fund benefited from the
markets' momentum, delivering a solid return and competitive income stream.
HOW YOUR FUND PERFORMED
For the six months ended June 30, 1995, Pioneer Intermediate Tax-Free Fund
achieved the following results:
. Class A shares -- Shareowners received income dividends totaling $0.247 per
share. The Fund's 30-day SEC yield was 3.94% as of June 30, 1995./1/ Net
asset value stood at $10.19 per share, versus $9.62 six months earlier. The
Fund's total return was 8.55% based on net asset value, and 4.74% based on
public offering price. Total return assumes the reinvestment of all
distributions at net asset value.
. Class B shares -- Shareowners received a total of $0.205 per share in income
dividends for the period. As of June 30, the Fund's 30-day SEC yield was
3.41%./1/ Net asset value stood at $10.21 per share, versus $9.65 six months
earlier. The Fund's total return for the period was 7.97% assuming shares
were held throughout the period, and 4.97% if shares were redeemed. Total
return assumes the reinvestment of all distributions at net asset value.
AVERAGE ANNUAL TOTAL RETURNS
(as of June 30, 1995)
<TABLE>
<CAPTION>
CLASS A SHARES NET ASSET VALUE PUBLIC OFFERING PRICE*
-------------- --------------- ----------------------
<S> <C> <C>
Life-of-Fund
(10/22/86) 6.54% 6.11%
5 Years 7.29 6.52
1 Year 6.97 3.26
<CAPTION>
RETURN IF RETURN IF
CLASS B SHARES NOT REDEEMED REDEEMED**
-------------- --------------- ----------
<S> <C> <C>
Life-of-Fund
(4/29/94) 5.41% 2.86%
1 Year 5.96 2.96
</TABLE>
In comparison, the Lehman Brothers 10-Year Municipal Bond Index returned 9.76%
during the six months, and the 121 intermediate municipal bond funds tracked
by Lipper Analytical Services returned an average of 7.33%.
Because your Fund's income is free from federal taxation, its yield compares
favorably with taxable bonds on an "after-tax" basis. The Fund's 3.94% SEC
yield on Class A shares, and 3.41% yield on Class B shares, would be equal to
these taxable yields:
<TABLE>
<CAPTION>
FEDERAL TAXABLE
TAX BRACKET EQUIVALENT YIELD
----------- --------------------------
A SHARES B SHARES
-------- --------
<S> <C> <C>
39.6% 6.52% 5.65%
36.0% 6.16% 5.33%
31.0% 5.71% 4.94%
</TABLE>
MARKET OVERVIEW
The bond market has been very strong so far this year. Early in the period,
foreign central banks purchased a large volume of U.S. government bonds to
help strengthen the weak U.S. dollar. This heavy buying greatly benefited the
bond market. In addition, the Federal Reserve Board (the Fed) raised the
benchmark federal funds rate on February 1 in an attempt to slow the economy
and head off the possibility of higher inflation. Signs of an economic
slowdown subsequently appeared, and concerns over inflation and additional
interest rate hikes diminished. The bond market showed its enthusiasm toward
these trends by pushing up bond prices and lowering yields. For example, as of
December 31, the interest rate on the 30-year Treasury bond stood at 7.9%; by
the end of June, the rate had dropped to 6.6%.
The municipal bond market also fared well for the semiannual period, although
recent months (in particular, May and June) have been less favorable. Rumors
of tax reform, as well as a buoyant equity market caused municipal securities
to underperform other financial markets. This recent underperformance has made
municipals extremely inexpensive relative to Treasurys. Of course, this
relative "cheapness," together with the demand caused by the maturing and
calling of $35 million in municipal bonds, has presented attractive buying
opportunities for investors.
1 SEC yield is based on a standard formula prescribed by the Securities and
Exchange Commission. The Fund's investment adviser, Pioneering Management
Corporation, is currently reducing its management fee and certain other
expenses, otherwise the SEC yield for Class A shares and Class B shares would
have been 3.76% and 3.26%, respectively.
Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of all distributions at net asset value.
Reflects deduction of the maximum 4.0% contingent deferred sales charge at the
end of the period and assumes reinvestment of all distributions.
Past performance does not guarantee future results. Returns would have been
lower without the manager's voluntary fee waiver. Share price and return fluc-
tuate, and your shares, when redeemed, may be worth more or less than their
original cost. A portion of income may be subject to state and local taxes,
although the Fund intends to minimize any taxable income. The Fund currently
avoids investments that are subject to the alternative minimum tax.
* Reflects deduction of the maximum 4.5% sales charge at the beginning of the
period and assumes reinvestment of all distributions at net asset value.
** Reflects deduction of the maximum 4.0% contingent deferred sales charge at
the end of the period and assumes reinvestment of all distributions.
Past performance does not guarantee future results. Returns would have been
lower without the manager's voluntary fee waiver. Share price and return
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost. A portion of income may be suject to state and local taxes,
although the Fund intends to minimize any taxable income. The Fund currently
avoids investments that are subject to the alternative minimum tax.
<PAGE>
HOW PIONEER MANAGED YOUR INVESTMENT
To pursue your Fund's objective of current income exempt from federal income
-taxes, your management focuses on high-quality, intermediate-maturity issues.
All holdings in the portfolio maintain a rating of A or better. Rather than
subject the Fund to unnecessary risk, we choose securities that deal with
essential services and whose income is dedicated to repaying their debt. As of
June 30, the Fund's portfolio was diversified among 39 states, in sectors
ranging from education to transportation.
Your management took advantage of the bond market's much-improved climate by
purchasing shorter-maturity securities. We also added a number of issues with
larger coupons, or interest payments, by selling some of the portfolio's lower-
coupon bonds. We expect our strategy will provide the Fund with greater
stability if and when interest rates move up again. While we are not
pessimistic about the bond market, we saw its recent upward push as an
opportunity to prepare the Fund to weather any future uncertainties concerning
interest rates. Specifically, we acquired shorter-maturity, "noncallable"
securities. Unlike many bonds, issuers cannot redeem, or "call," noncallable
bonds prior to maturity. This becomes important when interest rates fall since
issuers often call in existing securities and replace them with lower-cost
bonds, depriving investors of future income and potential gains. Even if
interest rates rise and the likelihood of a bond being called away decreases,
these securities remain valuable investments for the Fund. Emphasizing short-
term issues also has helped protect the Fund's share price. We reduced the
portfolio's average life to 8.5 years on June 30, from 9.3 years at the end of
1994. The accompanying charts highlight the Fund's maturity and quality
distribution at the period's end.
PORTFOLIO QUALITY
(as of June 30, 1995)
[PIE CHART APPEARS HERE]
A - 20%
AA - 56%
AAA - 24%
MATURITY DISTRIBUTION
(as of June 30, 1995)
[PIE CHART APPEARS HERE]
0-2 years - 8.2%
2-5 years - 19.7%
5-7 years - 17.4%
7-10 years - 23.5%
10-15 years - 17.6%
15 + years - 13.6%
LOOKING AHEAD
On July 6, the Fed lowered short-term interest rates for the first time since
1992, reflecting its latest outlook toward inflation and the economy. Of
course, only time will tell whether the current balance of moderate economic
growth and low inflation will continue for an extended period. Nevertheless,
these trends have greatly improved the environment for bond investing so far in
1995, especially when compared with 1994. While such widely varying results are
not what we expect from bond investing, they do demonstrate the benefit of
maintaining a long-term, disciplined outlook, rather than jumping in and out of
the market.
As we move into the second half of your Fund's fiscal year, your management
will remain active in monitoring events that could affect the municipal
market -- in particular, proposals regarding any flat tax. Of course, until we
know what shape tax reform ultimately takes (e.g., flat tax, national sales
tax, consumer income tax), it is impossible to predict an outcome. Nonetheless,
we think municipal bonds will continue to play a significant role for
investors, especially given their recent value and limited supply. We think
your fund is well positioned to benefit from these trends, and we will continue
to adjust the portfolio as necessary, emphasizing current income and quality
investments.
Please read on through the following pages, which provide the Fund's audited
Schedule of Investments as of June 30, 1995. If you have any questions about
your investment in Pioneer Intermediate Tax-Free Fund, contact your investment
representative, or call Pioneer at 1-800-225-6292.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President,
Pioneer Intermediate Tax-Free Fund
August 10, 1995
2
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER INTERMEDIATE TAX-FREE FUND--JUNE 30, 1995
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD
& POOR'S
PRINCIPAL RATING
AMOUNT (UNAUDITED) INVESTMENTS+ VALUE
-------------------------------------------------------------------------------
INVESTMENT IN TAX-EXEMPT SECURITIES--
99.6%
<C> <C> <S> <C>
ARIZONA--2.5%
$1,000,000 AA Arizona State Transportation Board
Highway Revenue, 6.5%, Prerefunded,
2001*................................... $ 1,103,990
1,000,000 AA Salt River Project Agriculture
Improvement and Power District Revenue,
5.2%, 2008.............................. 964,370
-----------
2,068,360
-----------
CALIFORNIA--3.0%
2,000,000 AA Orange County Local Transportation
Authority Sales Tax Revenue, 6.0%, 2008. 2,033,500
400,000 AA Southern California Public Power
Authority Revenue, 7.375%, Prerefunded,
1996*................................... 421,728
-----------
2,455,228
-----------
COLORADO--0.3%
200,000 AA- Regional Transportation District of
Colorado Sales Tax Revenue, 8.0%,
Prerefunded, 1996*...................... 222,816
-----------
CONNECTICUT--3.1%
1,500,000 AA- Connecticut Special Tax Transportation
Revenue, 5.2%, 2005..................... 1,493,070
1,000,000 AA Connecticut Housing Finance Authority,
6.25%, 2011............................. 1,026,900
-----------
2,519,970
-----------
DISTRICT OF COLUMBIA--1.0%
250,000 A+ District of Columbia University Revenue,
Georgetown University Issue, 7.0%, 2005. 266,432
500,000 A+ Georgetown University General Obligation,
8.125%, 2008............................ 549,645
-----------
816,077
-----------
FLORIDA--4.6%
750,000 AAA Broward County, School General
Obligation, 7.125%, Prerefunded, 1999 *. 830,550
265,000 AA Florida State Board of Education Capital
Outlay, 7.25%, Prerefunded, 1996*....... 278,640
35,000 AA Florida State Board of Education Capital
Outlay, Escrowed to Maturity in
Government Securities, 7.25%, 2010...... 37,050
1,000,000 AAA Florida State Department of Environmenal
Protection Revenue, AMBAC Insured,
5.25%, 2003............................. 1,020,940
500,000 AA Jacksonville Electric Authority St. Johns
River Power Park System Revenue, 8.875%,
2010.................................... 515,560
1,000,000 AA Orlando Utilities Commission Revenue,
5.6%, 2003.............................. 1,042,820
-----------
3,725,560
-----------
GEORGIA--1.9%
500,000 AA- Metropolitan Atlanta Rapid Transit
Authority Sales Tax Revenue, 7.25%,
2010.................................... 543,010
250,000 AAA Municipal Electric Authority of Georgia
Revenue, 7.75%, Prerefunded, 1997*...... 268,020
400,000 A+ Municipal Electric Authority of Georgia
Special Obligation Revenue, 7.65%, 2003. 436,168
220,000 AA- Savannah Water & Sewer Revenue Refunding
& Improvement, 7.5%, Prerefunded, 1997*. 241,575
30,000 AA- Savannah Water & Sewer Revenue Refunding
& Improvement, 7.5%, 2010............... 32,967
-----------
1,521,740
-----------
HAWAII--3.8%
2,000,000 AA Hawaii General Obligation, 5.25%, 2000... 2,052,380
1,000,000 AA Honolulu, City and County General
Obligation, 5.1%, 2002.................. 1,011,300
-----------
3,063,680
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER INTERMEDIATE TAX-FREE FUND--JUNE 30, 1995--
continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD
& POOR'S
PRINCIPAL RATING
AMOUNT (UNAUDITED) INVESTMENTS+ VALUE
-------------------------------------------------------------------------------
<C> <C> <S> <C>
ILLINOIS--5.7%
$1,000,000 AAA Chicago, General Obligation, AMBAC
Insured, 5.7%, 2007..................... $ 1,006,700
1,000,000 AAA Chicago Wastewater Transmission Revenue,
6.3%, Prerefunded, 2003*................ 1,101,580
600,000 AAA Illinois Sales Tax Revenue, 7.25%,
Prerefunded, 1999*...................... 669,726
1,000,000 AAA Illinois Sales Tax Revenue, 5.5%, 2018... 920,570
1,000,000 AA- Illinois Education Facilities Authority
Revenue Northwestern University, 5.5%,
2013.................................... 954,290
-----------
4,652,866
-----------
INDIANA--3.5%
750,000 A Indiana Municipal Power Agency, Power
Supply System Revenue, 7.1%,
Prerefunded, 2000*...................... 833,797
1,500,000 Aaa(1) Indiana State Educational Facilities
Authority Revenue for Notre Dame, 6.0%,
2023.................................... 1,487,820
500,000 A+ Indiana Transportation Finance Authority
Highway Revenue, 8.0%, Prerefunded,
1998*................................... 559,785
-----------
2,881,402
-----------
KANSAS--0.7%
500,000 AA Kansas Department of Transportation High-
way Revenue, 6.5%, Prerefunded, 2002*... 553,450
-----------
KENTUCKY--2.6%
215,000 AAA Kentucky Turnpike Authority Economic
Development Road Revenue, 7.25%,
Prerefunded, 2000*...................... 241,793
35,000 AAA Kentucky Turnpike Authority Economic
Development Road Revenue, 7.25%,
Prerefunded, 2000*...................... 39,362
1,000,000 AAA Kentucky Turnpike Authority Economic
Development Road Revenue, AMBAC
Insured, 5.25%, 2005.................... 1,002,310
750,000 A+ Lexington-Fayette Urban County Government
Revenue, 7.0%, 2006..................... 811,875
-----------
2,095,340
-----------
LOUISIANA--0.6%
500,000 A- Louisiana Recovery District Sales Tax
Revenue, 7.625%, 1996................... 511,555
-----------
MAINE--1.4%
250,000 A+ Maine Municipal Bond Bank Sewer and Water
Revenue, 6.6%, 2015..................... 261,305
250,000 A+ Maine Municipal Bond Bank Revenue, 7.15%,
Prerefunded, 2001*...................... 285,595
245,000 A+ Maine Municipal Bond Bank Revenue, 7.65%,
Prerefunded, 1998*...................... 275,299
245,000 AAA Maine Municipal Bond Bank Revenue, 8.6%,
Prerefunded, 1997*...................... 275,277
-----------
1,097,476
-----------
MARYLAND--1.9%
1,500,000 Aa(1) Maryland Community Development
Administration Single Family Mortgage
Revenue, 5.95%, 2006.................... 1,552,860
-----------
MASSACHUSETTS--2.6%
1,000,000 AAA Massachusetts Housing Finance Agency,
FNMA Collateralized, 6.875%, 2021....... 1,042,680
1,000,000 AA- Massachusetts Water Pollution Abatement
Trust Revenue, 6.0%, 2008............... 1,022,740
-----------
2,065,420
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER INTERMEDIATE TAX-FREE FUND--JUNE 30, 1995--
continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD
& POOR'S
PRINCIPAL RATING
AMOUNT (UNAUDITED) INVESTMENTS+ VALUE
---------------------------------------------------------------------------------
<C> <C> <S> <C>
MICHIGAN--4.8%
$ 250,000 AA Detroit School District General Obligation,
7.15%, Prerefunded, 2001*................. $ 284,048
1,500,000 AAA Detroit Sewer Disposal Revenue, FGIC
Insured, 4.85%, 2001...................... 1,493,820
1,000,000 AA- Michigan State Trunk Line Fuel Sales Tax
Revenue, Series A, 5.625%, 2003........... 1,036,280
1,000,000 AA- Michigan State Trunk Line Fuel Sales Tax
Revenue, Series B, 5.625%, 2003........... 1,036,280
-----------
3,850,428
-----------
MINNESOTA--1.0%
750,000 AAA Minnesota Public Facilities Authority Water
Pollution Control Revenue, 7.0%, 2009..... 805,380
-----------
MISSOURI--1.3%
1,000,000 Aa(1) Missouri State Environmental Improvement &
Energy Resources Authority Revenue, 6.55%,
2014...................................... 1,038,520
-----------
NEBRASKA--1.4%
1,000,000 AA Omaha Public Power District Electric System
Revenue, 6.5%, Prerefunded, 2002*......... 1,104,750
-----------
NEVADA--0.5%
135,000 AA Nevada Housing Division Single Family
Program Revenue, 8.0%, 2009............... 141,137
250,000 AAA State of Nevada General Obligation, 8.0%,
Prerefunded, 1997*........................ 275,173
-----------
416,310
-----------
NEW HAMPSHIRE--2.2%
1,000,000 AA+ New Hampshire Higher Educational Facilities
Authority Dartmouth College, 5.5%, 2013... 968,950
500,000 AAA New Hampshire Turnpike System Revenue,
7.375%, Prerefunded, 2000*................ 565,715
250,000 A New Hampshire Turnpike System Revenue,
8.25%, Prerefunded, 1997*................. 277,265
-----------
1,811,930
-----------
NEW JERSEY--3.6%
750,000 AA- New Jersey Highway Authority Garden State
Parkway Senior Revenue, 7.25%,
Prerefunded, 1999*........................ 829,500
1,000,000 AA+ State of New Jersey Sales Tax General
Obligation, 5.8%, 2007.................... 1,032,380
1,000,000 A New Jersey State Turnpike Authority
Revenue, 5.9%, 2003....................... 1,046,820
-----------
2,908,700
-----------
NEW MEXICO--0.3%
250,000 AA Albuquerque Joint Water & Sewer System
Revenue, 7.65%, Prerefunded, 1997*........ 271,202
-----------
NEW YORK--3.3%
750,000 AA- Municipal Assistance Corporation for the
City of New York Revenue, 7.25%, 2008..... 783,705
500,000 AAA New York City Municipal Water Finance
Authority Revenue, 7.75%,
Prerefunded, 1998*........................ 556,545
750,000 AA- New York State Power Authority General
Purpose Revenue, 7.0%,
Prerefunded, 1996*........................ 777,285
500,000 A+ Triborough Bridge and Tunnel Authority
General Purpose Revenue, 7.375%,
Prerefunded, 1998*........................ 547,225
-----------
2,664,760
-----------
NORTH CAROLINA--1.9%
1,500,000 AAA Charlotte General Obligation, 5.7%, 2007... 1,561,920
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER INTERMEDIATE TAX-FREE FUND--JUNE 30, 1995--
continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD
& POOR'S
PRINCIPAL RATING
AMOUNT (UNAUDITED) INVESTMENTS+ VALUE
---------------------------------------------------------------------------------
<C> <C> <S> <C>
OHIO--1.7%
$1,500,000 AA Ohio Higher Educational Facilities
Commission Revenue Oberlin College
Project, 5.375%, 2015..................... $ 1,395,750
-----------
OKLAHOMA--3.1%
1,500,000 A- Grand River Dam Authority Electric Revenue,
5.75%, 2006............................... 1,545,300
1,000,000 AA Oklahoma City General Obligation, 5.0%,
2004...................................... 992,300
-----------
2,537,600
-----------
OREGON--1.0%
500,000 AA- State of Oregon Veterans Welfare General
Obligation, 7.0%, 2011.................... 544,635
250,000 AA- State of Oregon Veterans Welfare General
Obligation, 7.75%, 2003................... 268,088
-----------
812,723
-----------
PENNSYLVANIA--4.6%
1,500,000 AA- Pennsylvania General Obligation, 6.25%,
2010...................................... 1,579,335
1,000,000 A- Pennsylvania Industrial Development
Authority Revenue, 7.0%, Prerefunded,
2001*..................................... 1,129,160
1,000,000 A Pennsylvania State Turnpike Commission
Highway Revenue, 5.45%, 2002.............. 1,025,070
-----------
3,733,565
-----------
PUERTO RICO--4.2%
500,000 AAA Puerto Rico Highway Authority Revenue
Refunding, 8.0%, Prerefunded, 1998*....... 562,350
1,500,000 A Puerto Rico Highway and Transportation
Authority Revenue, 5.5%, 2019............. 1,367,985
1,500,000 A Commonwealth of Puerto Rico General
Obligation, 5.375%, 2006.................. 1,476,165
-----------
3,406,500
-----------
SOUTH CAROLINA--1.1%
750,000 AAA South Carolina Public Service Authority
Revenue, 7.0%, Prerefunded, 2001*......... 850,238
-----------
TEXAS--5.9%
1,000,000 A Houston Water & Sewer System Revenue, 5.4%,
2000...................................... 1,018,260
750,000 AAA San Antonio Prior Lien Water Revenue,
7.125%, Prerefunded, 1999*................ 828,623
1,000,000 AA Tarrant County Water Control Revenue, 6.0%,
Prerefunded, 2001*........................ 1,063,450
1,500,000 AA State of Texas General Obligation, 5.8%,
2004...................................... 1,583,340
250,000 AAA University of Texas Permanent University
Fund Escrowed to Maturity in Government
Securities, 8.0%, 2004.................... 304,242
-----------
4,797,915
-----------
UTAH--2.5%
750,000 AA Intermountain Power Agency Special
Obligation Second Crossover Revenue, 7.5%,
1995++.................................... 786,668
1,000,000 AA Intermountain Power Agency Power Supply
Revenue, 5.5%, 1995++..................... 924,720
20,000 AA Utah Housing Finance Agency Single Family
Mortgage Purchase Revenue, 7.3%, 1995++... 21,236
240,000 AA Utah Housing Finance Agency Single Family
Mortgage Purchase Revenue, 7.3%, 2003..... 254,837
-----------
1,987,461
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER INTERMEDIATE TAX-FREE FUND--JUNE 30, 1995--
continued
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STANDARD
& POOR'S
PRINCIPAL RATING
AMOUNT (UNAUDITED) INVESTMENTS+ VALUE
---------------------------------------------------------------------------------
<C> <C> <S> <C>
VERMONT--0.7%
$ 500,000 AAA Vermont Municipal Bond Bank, 7.9%,
Prerefunded, 1998*........................ $ 566,145
-----------
VIRGINIA--5.9%
750,000 AA Richmond General Obligation, 7.0%,
Prerefunded, 2000*........................ 833,880
500,000 AA+ Virginia State Housing Development
Authority, Single Family Mortgage Revenue,
7.8%, 2008................................ 529,110
1,500,000 AA Virginia State Transportation Board
Revenue, 5.5%, 2018....................... 1,400,145
1,000,000 AAA Fairfax County General Obligation, 4.8%,
2003...................................... 995,420
1,000,000 AA Virginia Public School Authority Revenue,
4.9%, 2003................................ 993,180
-----------
4,751,735
-----------
WASHINGTON--5.8%
1,000,000 AA Lewis County Public Utility District #1
Revenue, 5.0%, 2004....................... 981,060
800,000 A+ Metropolitan Seattle Limited Sales Tax
General Obligation, 7.2%, Prerefunded,
1997*..................................... 851,312
750,000 AA State of Washington Motor Vehicle Fuel Tax
General Obligation, 7.25%,
Prerefunded 1999*......................... 819,510
1,000,000 AA State of Washington General Obligation,
6.0%, 2002................................ 1,062,570
1,000,000 AA+ King County General Obligation, 4.5%, 2003. 953,740
-----------
4,668,192
-----------
WISCONSIN--1.3%
1,000,000 AA State of Wisconsin General Obligation,
5.5%, 2001................................ 1,035,700
-----------
WYOMING--2.3%
750,000 A- Sweetwater County Pollution Control
Revenue, 7.625%, 2013..................... 787,905
1,015,000 AA- Wyoming Farm Loan Board Capital Facilities
Revenue, 6.25%, 2008...................... 1,047,236
-----------
1,835,141
-----------
TOTAL INVESTMENT IN TAX-EXEMPT SECURITIES
(Total Cost $78,032,302)(a) (b)........... $80,616,365
-----------
TEMPORARY CASH INVESTMENT--0.4%
Tax-Exempt Variable Rate Securities (2)
300,000 Jackson County, Mississippi, Pollution
Control Revenue, Chevron Guarantee, 4.15%,
2023 (Total Cost $300,000)................ $ 300,983
-----------
TOTAL INVESTMENT IN SECURITIES--100% (Total
Cost $78,332,302)......................... $80,917,348
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER INTERMEDIATE TAX-FREE FUND--JUNE 30, 1995--
continued
--------------------------------------------------------------------------------
+ The concentration of securities by type of obligation/market sector is:
<TABLE>
<S> <C>
General Obligation................................................. 20.0%
Escrowed in U.S. Government Securities............................. 26.6%
Revenue Bonds:
Education Revenue................................................. 8.2%
Water & Sewer Revenue............................................. 2.9%
Housing Revenue................................................... 5.6%
Insured........................................................... 5.6%
Pollution Control Revenue......................................... 3.3%
Power Revenue..................................................... 8.9%
Sales Tax Revenue................................................. 5.9%
Transportation Revenue............................................ 10.4%
Various Revenues.................................................. 2.3%
Reserves........................................................... 0.3%
</TABLE>
++ Entire bond, or a portion thereof, was called on July 3, 1995.
* Prerefunded bonds have been collateralized by U.S. Treasury securities which
are held in escrow and used to pay principal and interest on the tax-exempt
issue and to retire the bonds in full at the earliest refunding date.
(1) Rating by Moody's.
(2) Rates for variable rate securities are as of June 30, 1995.
(a) At June 30, 1995, the net unrealized appreciation on investments, based on
cost for federal income tax purposes of $78,032,302 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost.............. $3,273,042
Aggregate gross unrealized depreciation for all investments in
which there is an excess of tax cost over value.............. (688,979)
----------
Net unrealized appreciation................................... 2,584,063
==========
</TABLE>
(b) At December 31, 1994, the Fund had a net capital loss carryforward of
$299,007 which will expire in the year 2002 if not utlilized.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended June 30, 1995 aggregated $11,580,815 and $12,370,163,
respectively.
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
BALANCE SHEET--JUNE 30,1995
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash
investment of $300,983) (cost $78,332,302; see Schedule of
Investments and Note 1)........................................ $80,917,348
Receivables--
Interest........................................................ 1,528,109
Trust shares sold............................................... 51,811
Other........................................................... 1,749
-----------
Total assets................................................... $82,499,017
-----------
LIABILITIES:
Payables--
Trust shares repurchased........................................ 2,197
Dividends....................................................... 117,248
Due to bank..................................................... 65,033
Accrued expenses--
Management fees (Note 2)........................................ 18,722
Other (Notes 2, 3 and 4)........................................ 138,753
-----------
Total liabilities.............................................. $ 341,953
-----------
NET ASSETS:
Paid-in capital (Note 1)........................................ $80,479,349
Accumulated distributions in excess of net investment income.... (24,811)
Accumulated net realized loss on investments.................... (881,537)
Net unrealized gain on investments.............................. 2,584,063
-----------
Total net assets............................................... $82,157,064
===========
NET ASSET VALUE PER SHARE:
Class A--(based on $79,794,020/7,827,882 shares of beneficial
interest outstanding--unlimited number of shares authorized $10.19
with no par value)............................................. ======
Class B--(based on $2,363,044/231,337 shares of beneficial
interest outstanding--unlimited number of shares authorized $10.21
with no par value)............................................. ======
MAXIMUM OFFERING PRICE:
Class A......................................................... $10.56
======
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
STATEMENT OF OPERATIONS--FOR THE SIX MONTHS ENDED JUNE 30, 1995
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME (NOTE 1):
Interest.......................................................... $2,405,830
EXPENSES:
Management fees (Note 2)................................ $202,703
Transfer agent fees (Note 3)
Class A................................................. 41,110
Class B................................................. 1,147
Distribution fees (Note 4)
Class A................................................. 94,003
Class B................................................. 10,111
Registration fees....................................... 17,668
Custodian fees.......................................... 6,650
Professional fees....................................... 37,805
Accounting (Note 2)..................................... 46,879
Printing................................................ 3,065
Fees and expenses of nonaffiliated trustees............. 7,240
Miscellaneous........................................... 12,439
--------
Total expenses......................................... $480,820
Less management fees waived by Pioneering Management
Corporation
(Note 2).............................................. 67,677
--------
Net expenses..................................................... $ 413,143
----------
Net investment income.......................................... $1,992,687
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments.................................. $ (582,530)
Increase in net unrealized gain on investments.................... 5,237,139
----------
Net gain on investments.......................................... $4,654,609
----------
Net increase in net assets resulting from operations............. $6,647,296
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND THE YEAR ENDED DECEMBER 31, 1994
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1995 1994
-------------- ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income.................................... $ 1,992,687 $ 4,034,832
Net realized loss on investments......................... (582,530) (299,222)
Increase (decrease) in net unrealized gain
on investments.......................................... 5,237,139 (8,771,933)
------------ -----------
Net increase (decrease) in net assets resulting
from operations....................................... $ 6,647,296 $(5,036,323)
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Class A--($0.25 and $0.49 per share, respectively)..... $(1,935,175) $(4,031,997)
Class B--($0.21 and $0.27 per share, respectively)..... (41,064) (24,385)
In excess of net investment income
Class A--($0.00 and $0.00 per share, respectively)..... (24,811) (16,135)
Class B--($0.00 and $0.00 per share, respectively)..... -- (313)
From net realized gain on investments
Class A--($0.00 and $0.01 per share, respectively)..... -- (32,059)
Class B--($0.00 and $0.00 per share, respectively)..... -- (97)
------------ -----------
Decrease in net assets resulting from distributions
to shareholders......................................... $ (2,001,050) $(4,104,986)
------------ -----------
FROM TRUST SHARE TRANSACTIONS:
Net proceeds from sale of shares......................... $ 4,145,801 $18,171,021
Net asset value of shares issued to shareholders
in reinvestment of dividends............................ 1,255,695 2,597,115
Cost of shares repurchased............................... (6,093,554) (15,520,911)
------------ -----------
Increase (decrease) in net assets resulting
from trust share transactions.......................... $ (692,058) $ 5,247,225
------------ -----------
Net increase (decrease) in net assets................. $ 3,954,188 $(3,894,084)
NET ASSETS:
Beginning of period...................................... 78,202,876 82,096,960
------------ -----------
End of period (including distributions in excess of
net investment income of $24,811 and
$16,448, respectively).................................. $82,157,064 $78,202,876
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31,1994
--------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold............................ 323,875 $ 3,235,284 1,602,661 $ 16,366,775
Shares issued to shareholders in
reinvestment of distributions......... 122,271 1,231,212 257,363 2,584,951
Less shares repurchased................ (584,563) (5,887,657) (1,526,764) (15,286,865)
-------- ----------- ---------- ------------
Net increase (decrease)............... (138,417) $(1,421,161) 333,260 $ 3,664,861
======== =========== ========== ============
CLASS B*
Shares sold............................ 90,936 $ 910,517 180,473 $ 1,804,246
Shares issued to shareholders in
reinvestment of distributions......... 2,421 24,483 1,240 12,164
Less shares repurchased................ (20,505) (205,897) (23,228) (234,046)
-------- ----------- ---------- ------------
Net increase.......................... 72,852 $ 729,103 158,485 $ 1,582,364
======== =========== ========== ============
</TABLE>
--------
* Class B shares were first publicly offered on April 29, 1994.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS FOR THE YEARS ENDED DECEMBER 31, OCTOBER 27, TO
ENDED --------------------------------------------------------------------- DECEMBER 31,
JUNE 30, 1995 1994+ 1993 1992 1991 1990 1989 1988 1987 1986
CLASS A ------------- ------------ ------- ------- ------- ------- ------- ------- -------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of peri-
od................ $ 9.62 $10.76 $10.32 $10.06 $ 9.63 $ 9.66 $9.40 $8.95 $10.01 $10.00
--------- --------- ------- ------- ------- ------- ------- ------- -------- ---------
Increase (de-
crease) from in-
vestment opera-
tions:
Net investment
income............ $ 0.25 $ 0.49 $ 0.56 $ 0.59 $ 0.61 $ 0.63 $0.63 $0.63 $ 0.62 $ 0.05
Net realized and
unrealized gain
(loss) on
investments....... 0.57 (1.13) 0.56 0.25 0.43 (0.04) 0.26 0.47 (1.02) (0.04)
--------- --------- ------- ------- ------- ------- ------- ------- -------- ---------
Total increase
(decrease) from
investment
operations....... $ 0.82 $(0.64) $ 1.12 $ 0.84 $ 1.04 $ 0.59 $0.89 $1.10 $(0.40) $ 0.01
Distributions to
shareholders from:
Net investment
income............ (0.25) (0.49) (0.56) (0.58) (0.61) (0.62) (0.63) (0.65) (0.66) --
Net realized
gain.............. -- (0.01) (0.12) -- -- -- -- -- -- --
--------- --------- ------- ------- ------- ------- ------- ------- -------- ---------
Net increase
(decrease) in net
asset value....... $ 0.57 $(1.14) $ 0.44 $ 0.26 $ 0.43 $(0.03) $0.26 $0.45 $(1.06) $ 0.01
--------- --------- ------- ------- ------- ------- ------- ------- -------- ---------
Net asset value,
end of period..... $10.19 $ 9.62 $10.76 $10.32 $10.06 $ 9.63 $9.66 $9.40 $ 8.95 $10.01
========= ========= ======= ======= ======= ======= ======= ======= ======== =========
Total return*..... 8.55% (6.02)% 11.08% 8.65% 11.17% 6.42% 9.77% 12.79% (3.91)% 0.10%
Ratio of net
operating expenses
to average net
assets............ 1.00%** 1.00% 0.85% 0.85% 0.75% 0.66% 0.60% 0.50% 0.35% 0.61%**
Ratio of net
investment income
to average net
assets............ 4.93%** 4.89% 5.23% 5.78% 6.21% 6.56% 6.60% 6.89% 7.08% 9.73%**
Portfolio turnover
rate.............. 29.36%** 39.24% 13.93% 3.52% 4.61% 7.99% 4.09% 10.03% 0.06% --
Net assets, end of
period (in
thousands)........ $ 79,794 $ 76,674 $82,097 $57,353 $44,631 $34,118 $28,754 $20,121 $ 13,107 $ 3,066
Ratios assuming no
waiver of fees or
assumption of
expenses:
Net operating
expenses.......... 1.17%** 1.22% 1.12% 1.27% 1.33% 1.17% 1.10% 1.28% 1.53% --
Net investment
income............ 4.76%** 4.67% 4.97% 5.36% 5.63% 6.05% 6.10% 6.11% 5.90% --
<CAPTION>
APRIL 29,
SIX MONTHS 1994 TO
ENDED DECEMBER 31,
JUNE 30, 1995 1994+
CLASS B*** ------------- ------------
<S> <C> <C>
Net asset value,
beginning of
period............ $ 9.65 $10.07
--------- ---------
Increase
(decrease) from
investment
operations:
Net investment
income............ $ 0.21 $ 0.27
Net realized and
unrealized gain
(loss) on
investments....... 0.56 (0.42)
--------- ---------
Total increase
(decrease) from
investment
operations....... $ 0.77 $(0.15)
Distributions to
shareholders from:
Net investment
income............ (0.21) (0.27)
--------- ---------
Net increase
(decrease) in net
asset value....... $ 0.56 $(0.42)
--------- ---------
Net asset value,
end of period..... $10.21 $ 9.65
========= =========
Total return *.... 7.97% (1.49)%
Ratio of net
operating expenses
to average net
assets............ 1.76%** 1.84%**
Ratio of net
investment income
to average net
assets............ 4.14%** 4.17%**
Portfolio turnover
rate.............. 29.36%** 39.24%
Net assets, end of
period (in
thousands)........ $ 2,363 $ 1,529
Ratios assuming no
waiver of fees or
assumption of
expenses:
Net operating
expenses.......... 1.93%** 2.14%**
Net investment
income............ 3.97%** 3.87%**
</TABLE>
-------
+ The per share data is based upon average shares and average net assets out-
standing for the period presented.
* Assumes initial investment at net asset value at the beginning of each pe-
riod, reinvestment of all distributions, the complete redemption of the in-
vestment 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.
*** Class B shares were first publicly offered on April 29, 1994.
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1995
-------------------------------------------------------------------------------
1. Pioneer Intermediate Tax-Free Fund (the Fund) is a Massachusetts business
trust registered under the Investment Company Act of 1940 as a diversified,
open-end management company. On January 1, 1994, the Fund changed its name
from the Pioneer Municipal Bond Fund to the Pioneer Intermediate Tax-Free
Fund.
The Board of Trustees has authorized the issuance of two share classes of the
Fund, designated as Class A and Class B shares. Class B shares were first pub-
licly offered on April 29, 1994. Shares issued and outstanding prior to April
29, 1994 were designated as Class A shares. The shares of each class represent
an interest in the same portfolio of investments of the Fund and have equal
rights to voting, redemptions, dividends and liquidations, 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 holders of Class A and Class B shares, respectively.
The following is a summary of significant accounting policies consistently
followed by the Fund, which are in conformity with those generally accepted in
the investment company industry.
A. Security Valuation--Security transactions are recorded on the date the se-
curities are purchased or sold. Securities are valued based on valuations fur-
nished by an independent pricing service that utilizes a matrix system. This
matrix system reflects such factors as security prices, yields, maturities and
ratings, and is supplemented by both dealer and exchange quotations and fair
market value information from other sources. Original issue discount is ac-
creted daily on a yield-to-maturity basis. Temporary cash investments are
stated at cost plus accrued interest, which approximates market value. Inter-
est income is recorded on the accrual basis.
Gains and losses from sales of investments are calculated on the "identified
cost" method for both financial reporting and federal income tax purposes. It
is the Fund's practice first to select for sale those securities which have
the highest cost and also qualify for long-term capital gain or loss treatment
for tax purposes.
B. Federal taxes--It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income and net realized capital gains, if any,
to its shareholders. Therefore, no federal tax provisions are required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with income tax rules. Therefore, the
source of the Fund's distributions may be shown in the accompanying financial
statements as either from or in excess of net investment income or net real-
ized gain on investment transactions, or from capital, depending on the type
of book/tax differences that may exist.
C. Trust Shares--The Fund records sales and repurchases of trust 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 wholly owned subsidiary of The Pioneer Group, Inc. (PGI). PFD earned
$8,991 in underwriting commissions on the sale of trust shares during the six
months ended June 30, 1995. The Fund declares as daily dividend substantially
all of its net investment income. All dividends are paid on the last business
day of the month. Short-term capital gain distributions, if any, may be paid
with the daily dividends.
D. Class Allocations--Distribution expenses are calculated based on the aver-
age daily net asset value attributable to Class A and Class B shares of the
Fund, respectively. Shareholders of Class A and Class B share all expenses and
fees paid to the transfer service organization, Pioneering Services Corpora-
tion (PSC), for their services, which are allocated based on the number of ac-
counts in each class and the ratable allocation of related out-of-pocket ex-
penses (see Note 3). Income, common expenses and realized and unrealized gains
(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 begin-
ning of the day.
2. Pioneering Management Corporation (PMC) is the Fund's investment adviser,
manages the Fund's portfolio, and is a wholly-owned subsidiary of PGI. Manage-
ment fees are calculated at the annual rate of 0.50% of the average daily net
assets.
PMC has agreed to waive its management fees and to assume other operating ex-
penses of the Fund to the extent necessary to limit Class A expenses to 1.00%
of the Fund's average daily net assets attributable to the Class A shares; the
portion of the Fund-wide expenses attributable to Class B shares will be re-
duced only to the extent such expenses are reduced for the Class A shares.
PMC's agreement to assume
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1995--continued
--------------------------------------------------------------------------------
expenses for the Fund is voluntary and temporary and may be revised or termi-
nated at any time.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. Included in Accrued expenses--Other is $6,301 in accounting fees pay-
able to PMC at June 30, 1995.
3. PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in Ac-
crued expenses--Other is $12,752 in transfer agent fees payable to PSC at June
30, 1995.
4. The Fund has adopted a Plan of Distribution for both Class A shares (Class A
Plan) and Class B shares (Class B Plan) in accordance with Rule 12b-1 under the
Investment Company Act of 1940 pursuant to which certain distribution and serv-
ice fees are paid to PFD.
Pursuant to the Class A Plan, the Fund may reimburse PFD for its actual expen-
ditures to finance any activity primarily intended to result in the sale of
Class A shares or to provide services to holders of Class A shares. Reimburse-
ment for such expenditures, if any, may not exceed 0.25% of the Fund's average
annual net assets attributable to Class A shares. The Class B Plan provides
that the Fund may pay a distribution fee at an annual rate of 0.75% of the
Fund's average daily net assets attributable to Class B shares and may pay PFD
a service fee at the annual rate of 0.25% of the Fund's average daily net as-
sets attributable to Class B shares. Included in Accrued expenses--Other is
$52,170 in distribution fees payable to PFD at June 30, 1995.
Class B shares that are redeemed within four years of purchase are subject to
a contingent deferred sales charge (CDSC) at declining rates beginning at 3.0%
of the lesser of the current market value at the time of redemption or the
original purchase cost of the shares being redeemed. Proceeds from the CDSC are
paid to PFD. For the six months ended June 30, 1995, CDSC in the amount of
$4,013 was paid to PFD.
14
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
-------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER INTERMEDIATE TAX-FREE
FUND:
We have audited the accompanying balance sheet of Pioneer Intermediate Tax-
Free Fund, including the schedule of investments, as of June 30, 1995, and the
related statement of operations, statements of changes in net assets and fi-
nancial highlights for the periods presented. These financial statements and
financial highlights are the responsibility of the Fund's management. Our re-
sponsibility is to express an opinion on these financial statements and finan-
cial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
June 30, 1995 by correspondence with the custodian. An audit also includes as-
sessing the accounting principles used and significant estimates made by man-
agement, 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 Pio-
neer Intermediate Tax-Free Fund as of June 30, 1995, the results of its opera-
tions, the changes in its net assets and financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
July 28, 1995
15
<PAGE>
PIONEER INTERMEDIATE TAX-FREE FUND
60 State Street Boston, MA 02109
OFFICERS
John F. Cogan, Jr., Chairman and President
David D. Tripple, Executive Vice President
Kathleen D. McClaskey, Vice President
William H. Keough, Treasurer
Joseph P. Barri, Secretary
TRUSTEES
John F. Cogan, Jr. Marguerite A. Piret
Richard H. Egdahl, M.D. David D. Tripple
Margaret B.W. Graham Stephen K. West
John W. Kendrick John Winthrop
INVESTMENT LEGAL COUNSEL
ADVISER Hale and Dorr
Pioneering Management
Corporation
CUSTODIAN PRINCIPAL
Brown Brothers UNDERWRITER
Harriman & Co. Pioneer Funds
Distributor, Inc.
SHAREHOLDER
SERVICES AND INDEPENDENT
TRANSFER AGENT PUBLIC ACCOUNTANTS
Pioneering Services Arthur Andersen LLP
Corporation
60 State Street
Boston, Massachusetts
02109
----------------------------------------
Please call Pioneer for infor mation on:
Existing accounts, new accounts,
prospectuses, applications,
and service forms.....1-800-225-6292
Fund yields and prices...1-800-225-4321
Toll-free fax ...1-800-225-4240
Retirement Plans.....1-800-622-0176
Telecommunications Device
for the Deaf (TDD)...1-800-225-1997
----------------------------------------
When distributed to persons who are not shareowners of the Fund, this report
must be accompanied by an official prospectus, which discusses the objectives,
policies and other information concerning the Fund.
0895-2635
(C)Pioneer Funds Distributor, Inc.
[LOGO OF PIONEER APPEARS HERE]
Pioneer
Intermediate
Tax-Free Fund
Semiannual Report
June 30, 1995
