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IMPORTANT INFORMATION ABOUT PIONEER INTERMEDIATE TAX-FREE FUND
[CALLOUT] PIONEER INTERMEDIATE TAX-FREE FUND'S BOARD OF TRUSTEES HAS APPROVED A
+ROPOSAL TO MERGE THE FUND INTO PIONEER TAX-FREE INCOME FUND
The Boards of Trustees for Pioneer Intermediate Tax-Free Fund (the Fund) and
Pioneer Tax-Free Income Fund have approved a proposal by Pioneer Investment
Management to merge the Fund into Pioneer Tax-Free Income Fund. If shareowners
approve the merger, they will become shareowners of the surviving fund--Pioneer
Tax-Free Income Fund--which will maintain its same investment objective
(described below) and management team, including portfolio manager Mark Winter.
The chief reason for this proposal is to enable all shareowners to benefit from
the lower expenses currently paid by Pioneer Tax-Free Income Fund. Pioneer
Intermediate Tax-Free Fund incurs higher expenses due to its smaller asset size,
even with the current voluntary waiver of a portion of its management fees.
Expenses could move higher if Pioneer Investment Management decided to
discontinue the waiver.
The funds have similar investment objectives; both seek a high level of current
income exempt from federal income taxes. The Trustees expect that shareowners
will receive the same investment advantages as they currently have, yet with the
potential for higher returns given Tax-Free Income Fund's lower expenses.
[CALLOUT] THE CHIEF REASON FOR THIS PROPOSAL IS TO ENABLE ALL SHAREOWNERS TO
BENEFIT FROM THE LOWER EXPENSES CURRENTLY PAID BY PIONEER TAX-FREE INCOME FUND
The primary differences between the two funds are:
<TABLE>
<CAPTION>
INTERMEDIATE TAX-FREE FUND TAX-FREE INCOME FUND
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<S> <C> <C>
CURRENT EXPENSE 1.149% (1.00% with fee waiver) 0.914%
RATIO
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INVESTMENT QUALITY Municipal bonds rated in the four highest Municipal securities rated in the three
categories by a nationally recognized highest rating categories by Moody's
rating agency (no more than 15% of assets Investor[s] Service[s], Inc. or Standard &
may be in bonds rated BBB); and notes of Poor's Rating[s] Group.
issuers with bonds rated in the three
highest categories.
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MATURITY The Fund must keep its dollar weighted No maturity policy.
average maturity to 10 years or less; at
least 80% of assets have a maturity of 15
years or less.
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INVESTMENT The Fund does not concentrate its assets May invest 25% or more of assets in
CONCENTRATION in any state or industry. issuers in one state or securities where
payment is from gas, electric, telephone,
water and sewer segments of the municipal
bond market.
- --------------------- ------------------------------------------- -------------------------------------------
</TABLE>
Pioneer Intermediate Tax-Free Fund shareowners will receive a proxy mailing in
February, which will be voted on at a meeting in March 1999. If approved, the
reorganization is expected to become effective as of March 31, 1999. We hope
you'll encourage your clients to vote FOR the proposal.
If you have any questions about Pioneer Intermediate Tax-Free Fund or the
upcoming proxy mailing, please call your Pioneer Sales Specialist at
800-622-9876.
- ------------------------------ 0199-6043
/FOR BROKER/DEALER USE ONLY / (C) Pioneer Funds Distributor, Inc.
/NOT FOR USE WITH THE PUBLIC / Underwriter of Pioneer mutual funds
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