DEAR SHAREOWNER,
This semiannual report covers the progress and performance of Pioneer Cash
Reserves Fund and Pioneer U.S. Government Money Fund for the six months ended
June 30, 1996. Two events deserve particular notice. First, Class C shares were
added to Pioneer Cash Reserves Fund on January 31, 1996. Second, your Trustees
decided it was no longer in shareowners' best interest for Pioneer U.S.
Government Money Fund to continue operations, since its assets were lower than
what was required for the Fund to operate efficiently over the long term. As a
result, effective July 1, 1996, Pioneer Cash Reserves Fund acquired the assets
of Pioneer U.S. Government Money Fund.
INTEREST RATES MOVED HIGHER
In December 1995, the Federal Reserve (the Fed) cut short-term interest rates.
It repeated the move in January, indicating its concern that economic growth was
sluggish and that inflation was not a worry. The mood changed in February,
however, when the monthly employment report, one of the many indicators used to
monitor the economy's strength, showed the biggest job increase in 12 years.
Since then, worries about an overheated economy have undermined investor
confidence and led interest rates higher. Reflecting conflicting data and
opinions about the economy's strength, short-term interest rates fell nearly
half a percentage point (0.5%) by the end of January but rose nearly one
percentage point (1.0%) from the beginning of February to the end of May. From
May through June, short-term rates eased back down slightly. The Fed has not
acted since January, reflecting the uncertain direction of the economy and the
fact that inflation remains low.
Since money fund yields tend to follow short-term interest rates, the increase
in short-term rates in February boosted both Funds' performance through May.
Uncertain about the next direction of financial markets and interest rates, and
the resulting effect on various investments, many investors turned to money
funds for the stable $1 share price they seek to maintain. Historically, money
funds have provided "safe harbors" -- and liquid cash -- during unsettling
times.
HOW YOUR FUND PERFORMED
We are pleased to present the following results for Pioneer Cash Reserves Fund
and Pioneer U.S. Government Money Fund. In the first six months of 1996, both
Funds provided a steady stream of income while achieving their objective of
maintaining a $1 share price.
PIONEER CASH RESERVES FUND invests in high-quality money market instruments
issued by the U.S. government, corporations and banks. The Fund's goal is to
provide shareowners with high current income and to preserve capital.
As of June 30, 1996:
* 87% of the Fund's portfolio was invested in commercial paper, with
the remaining 13% in U.S. government agency obligations.
* Average portfolio maturity was 34 days, versus 25 days on December
31, 1995.
CLASS A SHARES
* Shareowners received total distributions of $0.022 per share over
the past six months.
* Net 7-day annualized yield was 4.53%.
* The 7-day effective yield (taking into account the compounding of
daily dividends) was 4.63%.
CLASS B SHARES
* Shareowners received total distributions of $0.019 per share over
the past six months.
* Net 7-day annualized yield was 3.70%.
* The 7-day effective yield (taking into account the compounding of
daily dividends) was 3.77%.
Pioneer Cash Reserves Fund introduced CLASS C SHARES to investors on January 31,
1996. Through June 30, they achieved the following results:
* Shareowners received total distributions of $0.015 per share over
the past five months.
* Net 7-day annualized yield was 3.82%.
* The 7-day effective yield (taking into account the compounding of
daily dividends) was 3.90%.
<PAGE>
We increased the Fund's average maturity during the period to capture the higher
yields that accompanied rising short-term interest rates. By extending maturity,
we retain higher yields in the portfolio longer. As usual, the Fund invested in
high-quality issues -- those of the U.S. government and its agencies and
instrumentalities, certificates of deposits, corporate commercial paper and
other debt instruments.
PIONEER U.S. GOVERNMENT MONEY FUND invested in U.S. government and agency
obligations to provide high current income and to preserve capital. As you know,
June 30, 1996, was the Fund's last day of operations. Its assets were acquired
by Pioneer Cash Reserves Fund effective July 1, 1996.
As of June 30, 1996:
* Shareowners received distributions totaling $0.022 per share over the six
months.
* Net 7-day annualized yield was 4.42%.
* The 7-day effective yield (taking into account the compounding of daily
dividends) was 4.51%.
* 100% of the Fund's portfolio was invested in U.S. government agency
obligations.
* Average portfolio maturity was 28 days.
Once again, the Fund invested in only the highest quality issues -- those of the
U.S. Treasury and government agencies. We continued to focus on portfolio
liquidity while we prepared the Fund to be acquired by Pioneer Cash Reserves
Fund.
One final note. We are pleased to announce that we are giving semiannual and
annual reports a facelift, including easy-to-find and use graphic summaries.
Your annual report dated December 31, 1996, will reflect these improvements. We
wish to thank all of you who took the time to respond to our questions about
what you want to see in fund reports.
The following pages present audited schedules of portfolio holdings and
financial statements at the period's end. If you have any questions about your
investment in Pioneer Cash Reserves Fund, please consult 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 Money Market Trust
The Funds' investment adviser, Pioneering Management Corporation, reduced its
management fee during the period. Otherwise returns would have been lower and
7-day annualized yields would have been: 4.24% for Class A shares, 3.46% for
Class B shares and 3.58% for Class C shares of Pioneer Cash Reserves Fund; and
3.92% for Pioneer U.S. Government Money Fund. The expense limitation is expected
to remain in effect through December 31, 1996.
Past performance does not guarantee future results. Investment return will
fluctuate, and there can be no guarantee that the Fund will be able to maintain
a stable net asset value of $1.00 per share. An investment in the Fund is
neither insured nor guaranteed by the U.S. government.
2
<PAGE>
SCHEDULE OF INVESTMENTS -- PIONEER CASH RESERVES FUND -- JUNE 30, 1996
================================================================================
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT INVESTMENT IN SECURITIES VALUE
================================================================================
<S> <C> <C>
COMMERCIAL PAPER -- 87.0%
$4,640,000 Abbott Laboratories, 5.26%, 7/18/96 $ 4,628,475
4,960,000 American Express Credit Corp., 5.31%, 7/15/96 4,949,758
5,650,000 American General Finance Corp., 5.28%, 7/11/96 5,641,713
5,800,000 Amoco Co., 5.30%, 8/13/96 5,763,283
7,125,000 Associates Corp., 5.32%, 8/6/96 7,087,095
7,000,000 Avco Financial, 5.28%, 8/14/96 6,954,827
8,200,000 Banc One Corp., 5.36%, 8/7/96 8,154,827
6,000,000 Coca-Cola Co., 5.31%, 7/31/96 5,973,450
2,240,000 Commercial Credit Co., 5.34%, 7/15/96 2,235,348
6,000,000 John Deere Capital Corp., 5.30%, 7/10/96 5,992,050
5,000,000 Ford Motor Credit Co., 5.28%, 7/8/96 4,994,866
7,650,000 Gannett Co., 5.31%, 7/26/96 7,621,790
6,450,000 General Electric Capital Corp., 5.27%, 7/2/96 6,449,056
4,400,000 H.J. Heinz Co., 5.27%, 7/1/96 4,400,000
6,950,000 Eli Lilly Co., 5.33%, 8/22/96 6,896,493
5,730,000 J.P. Morgan & Co. Inc., 5.34%, 9/12/96 5,667,954
6,100,000 Motorola, Inc., 5.30%, 7/26/96 6,077,549
5,200,000 National Rural Utilities Corp., 5.20%, 7/12/96 5,191,738
5,400,000 Paccar Inc., 5.34%, 7/25/96 5,380,776
4,100,000 Pfizer Inc., 5.23%, 7/8/96 4,095,830
4,625,000 Prudential Funding Corp., 5.27%, 7/3/96 4,623,646
7,000,000 Schering Corp., 5.21%, 9/23/96 6,914,903
7,000,000 Transamerica Finance Corp., 5.27%, 7/22/96 6,978,481
6,400,000 Wal -- Mart Stores Inc., 5.26%, 7/9/96 6,392,519
7,400,000 Walt Disney Co., 5.31%, 8/12/96 7,354,157
7,200,000 Xerox Corp., 5.32%, 8/12/96 7,155,312
------------
TOTAL COMMERCIAL PAPER $153,575,896
------------
U.S. GOVERNMENT AGENCIES -- 13.0%
6,000,000 Federal Farm Credit Bank, 5.26%, 7/1/96 $ 6,000,000
5,000,000 Federal Farm Credit Bank, 5.30%, 8/1/96 5,000,000
6,000,000 Federal Farm Credit Bank, 5.32%, 9/3/96 6,000,000
6,000,000 Federal Farm Credit Bank, 5.41%, 10/1/96 6,000,000
------------
TOTAL U.S. GOVERNMENT AGENCIES $ 23,000,000
------------
TOTAL INVESTMENT IN SECURITIES(A) $176,575,896
============
<FN>
- ---------
(a) At December 31, 1995, Pioneer Cash Reserves Fund had a net capital loss
carryforward of $276,063 which will expire between 2002 and 2003 if not
utilized.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
PIONEER CASH RESERVES FUND
BALANCE SHEET -- JUNE 30, 1996
================================================================================
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value based on amortized
cost (see Schedule of Investments and Note 1) $176,575,896
Cash 9,120
Receivables --
Fund shares sold 1,108,948
Interest 146,247
Other 11,342
------------
Total assets $177,851,553
------------
LIABILITIES:
Payables --
Investment securities purchased $ 6,000,000
Fund shares repurchased 967,812
Dividends 35,847
Due to affiliates (Notes 2, 3 and 4) 135,290
Accrued expenses 38,460
------------
Total liabilities $ 7,177,409
------------
NET ASSETS:
Fund shares $170,950,207
Accumulated net realized loss on investments (276,063)
------------
Total net assets $170,674,144
============
NET ASSET VALUE PER SHARE (OFFERING AND
REDEMPTION PRICE $1.00):
Class A -- (based on $160,687,351 / 160,963,414 shares
of beneficial interest outstanding --
unlimited number of shares authorized) $ 1.00
============
Class B -- (based on $9,457,334 / 9,457,334 shares of
beneficial interest outstanding --
unlimited number of shares authorized) $ 1.00
============
Class C -- (based on $529,459 / 529,459 shares of
beneficial interest outstanding --
unlimited number of shares authorized) $ 1.00
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
PIONEER CASH RESERVES FUND
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED JUNE 30, 1996
================================================================================
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME (NOTE 1):
Interest $4,567,371
EXPENSES:
Management fees (Note 2) $ 338,370
Distribution fees (Note 4)
Class A 113,011
Class B 37,930
Class C 775
Transfer agent fees (Note 3)
Class A 299,021
Class B 14,772
Class C 341
Registration fees 53,680
Professional fees 20,709
Accounting (Note 2) 28,399
Custodian fees 23,562
Printing 11,080
Fees and expenses of nonaffiliated trustees 7,903
Miscellaneous 18,094
----------
Total expenses $ 967,647
Less fees paid indirectly (Note 5) (53,293)
Less management fees waived by Pioneering Management
Corporation (Note 2) (166,585)
----------
Net expenses $ 747,769
----------
Net investment income $3,819,602
----------
Net increase in net assets resulting from operations $3,819,602
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
PIONEER CASH RESERVES FUND
STATEMENTS OF CHANGES IN NET ASSETS --
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND THE YEAR ENDED DECEMBER 31, 1995
================================================================================
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1996 1995
------------- ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 3,819,602 $ 8,638,793
Net realized loss on investments -- (639)
------------- -------------
Net increase in net assets resulting
from operations $ 3,819,602 $ 8,638,154
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.02 and $0.05, respectively) $ (3,673,145) $ (8,479,787)
Class B ($0.02 and $0.03, respectively) (143,631) (159,006)
Class C ($0.01 and $0.00 respectively) (2,826) --
------------- -------------
Decrease in net assets resulting from
distributions to shareholders $ (3,819,602) (8,638,793)
------------- -------------
FROM FUND SHARE TRANSACTIONS
(AT $1.00 PER SHARE):
Net proceeds from sale of shares $ 242,676,303 $ 571,316,827
Net asset value of shares issued to
shareholders in reinvestment of dividends 3,469,211 7,861,453
Cost of shares repurchased (246,865,885) (580,978,330)
------------- -------------
Net decrease in net assets resulting from
fund share transactions $ (720,371) $ (1,800,050)
------------- -------------
Net decrease in net assets $ (720,371) $ (1,800,689)
NET ASSETS:
Beginning of period 171,394,515 173,195,204
------------- -------------
End of period $ 170,674,144 $ 171,394,515
============= =============
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
AMOUNT AMOUNT
------------- -----------------
<S> <C> <C>
Class A
Shares sold $ 225,438,699 $ 548,292,258
Shares issued to shareholders in
reinvestment of distributions 3,333,675 7,715,889
Less shares repurchased (231,905,351) (565,382,384)
------------- -------------
Net decrease $ (3,132,977) $ (9,374,237)
============= =============
Class B*
Shares sold $ 16,497,960 $ 23,024,569
Shares issued to shareholders in
reinvestment of distributions 132,837 145,564
Less shares repurchased (14,747,650) (15,595,946)
------------- -------------
Net increase $ 1,883,147 $ 7,574,187
============= =============
Class C**
Shares sold $ 739,644
Shares issued to shareholders in
reinvestment of distributions 2,699
Less shares repurchased (212,884)
-------------
Net increase $ 529,459
=============
<FN>
* Class B shares were first publicly offered on March 31, 1995.
** Class C shares were first publicly offered on January 31, 1996.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
PIONEER CASH RESERVES FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
================================================================================
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------
SIX MONTHS JUNE 22,
ENDED 1987 TO
JUNE 30, DECEMBER 31,
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
-------- ---- ---- ---- ---- ---- ---- ---- ---- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- ------- ------- ------- -------- ------- -------- -------
Income from investment
operations:
Net investment
income $ 0.02 $ 0.05 $ 0.03 $ 0.02 $ 0.03 $ 0.05 $ 0.07 $ 0.08 $ 0.07 $ 0.03
Distributions to
shareholders from:
Net investment income (0.02) (0.05) (0.03) (0.02) (0.03) (0.05) (0.07) (0.08) (0.07) (0.03)
-------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= ======= ======= ======= ======= ======= =======
Total return* 2.27% 5.17% 3.57% 2.47% 3.06% 5.29% 7.74% 8.80% 7.05% 3.48%
Ratio of net expenses
to average net assets 0.90%**+ 0.88%+ 0.50% 0.75% 0.81% 0.88% 0.75% 0.82% 0.78% 0.53%**
Ratio of net investment
income to average net
assets 4.47%**+ 5.00%+ 2.59% 2.44% 3.03% 5.23% 7.53% 8.43% 6.91% 6.94%**
Net assets end of period
(in thousands) 160,687 $163,820 $173,195 $64,841 $59,097 $73,010 $101,120 $80,121 $59,592 $34,756
Ratios assuming no waiver
of management fees and
assumption of expenses
by PMC and no reduction
for fees paid indirectly:
Net expenses 1.10%** 1.15% 0.65% 1.10% 1.01% 0.88% 0.75% 0.82% 0.91% 1.01%**
Net investment income 4.27%** 4.73% 2.44% 2.09% 2.82% 5.23% 7.53% 8.43% 6.77% 6.46%**
Ratios assuming waiver of
management fees and
assumption of expenses
by PMC and reduction
for fees paid indirectly:
Net expenses 0.85%** 0.82% -- -- -- -- -- -- -- --
Net investment income 4.52%** 5.06% -- -- -- -- -- -- -- --
<FN>
+ Ratios assuming no reduction for fees paid indirectly.
* 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 the net asset value at the end of each period.
** Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
PIONEER CASH RESERVES FUND
FINANCIAL HIGHLIGHTS -- CONTINUED
SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
================================================================================
<TABLE>
<CAPTION>
SIX MONTHS MARCH 31,
ENDED 1995 TO
JUNE 30, DECEMBER 31,
1996 1995
---------- ------------
<S> <C> <C>
CLASS B***
Net asset value, beginning of period $ 1.00 $ 1.00
-------- --------
Income from investment operations:
Net investment income $ 0.02 $ 0.03
Distributions to shareholders from:
Net investment income (0.02) (0.03)
-------- --------
Net asset value, end of period 1.00 $ 1.00
======== ========
Total return* 1.89% 3.28%
Ratio of net expenses to average net assets 1.77%**+ 1.66%**+
Ratio of net investment income to average net
assets 3.59%**+ 4.20%**+
Net assets end of period (in thousands) 9,457 $ 7,574
Ratios assuming no waiver of management fees by
PMC and no reduction for fees paid indirectly:
Net expenses 1.97%** 1.86%**
Net investment income 3.39%** 4.00%**
Ratios assuming waiver of management fees by PMC and
reduction for fees paid indirectly:
Net expenses 1.60%** 1.61%**
Net investment income 3.76%** 4.25%**
</TABLE>
<TABLE>
<CAPTION>
JANUARY 31,
1996 TO
JUNE 30,
1996
----------
<S> <C>
CLASS C****
Net asset value, beginning of period $ 1.00
Income from investment operations:
Net investment income $ 0.01
Distributions to shareholders from:
Net investment income (0.01)
Net asset value, end of period $ 1.00
Total return* 1.47%
Ratio of net expenses to average net assets 1.82%**+
Ratio of net investment income to average net
assets 3.58%**+
Net assets end of period (in thousands) $ 529
Ratios assuming no waiver of management fees by
PMC and no reduction for fees paid indirectly:
Net expenses 2.03%**
Net investment income 3.37%**
Ratios assuming waiver of management fees by PMC and
reduction for fees paid indirectly:
Net operating expenses 1.77%**
Net investment income 3.62%**
<FN>
+ Ratios assuming no reduction for fees paid indirectly.
* 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 the net asset value at the end of each period.
** Annualized.
*** Class B shares were first publicly offered on March 31, 1995.
**** Class C shares were first publicly offered on January 31, 1996.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
SCHEDULE OF INVESTMENTS -- PIONEER U.S. GOVERNMENT MONEY FUND -- JUNE 30, 1996
================================================================================
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT INVESTMENT IN SECURITIES VALUE
------ ------------------------ -----
<S> <C> <C>
U.S. GOVERNMENT AGENCIES -- 100%
$2,000,000 Federal Farm Credit Bank, 5.26%, 7/1/96 $ 2,000,000
1,000,000 Federal Farm Credit Bank, 5.16%, 7/19/96 997,420
1,790,000 Federal Farm Credit Bank, 5.24%, 7/25/96 1,783,747
1,430,000 Federal Farm Credit Bank, 5.27%, 7/26/96 1,424,767
2,000,000 Federal Farm Credit Bank, 5.30%, 8/1/96 2,000,000
2,000,000 Federal Farm Credit Bank, 5.32%, 9/3/96 2,000,000
1,000,000 Federal Home Loan Bank, 5.19%, 7/2/96 999,856
1,485,000 Federal Home Loan Bank, 5.27%, 7/5/96 1,484,130
2,440,000 Federal Home Loan Bank, 5.23%, 7/8/96 2,437,521
1,160,000 Federal Home Loan Bank, 5.22%, 7/15/96 1,157,645
930,000 Federal Home Loan Bank, 5.24%, 8/20/96 923,232
1,275,000 Federal Home Loan Bank, 5.32%, 9/4/96 1,262,753
2,000,000 Tennessee Valley Authority, 5.22%, 7/3/96 1,999,420
1,100,000 Tennessee Valley Authority, 5.18%, 7/17/96 1,097,467
1,030,000 Tennessee Valley Authority, 5.23%, 8/15/96 1,023,266
1,480,000 Tennessee Valley Authority, 5.27%, 8/23/96 1,468,517
-----------
TOTAL INVESTMENT IN SECURITIES $24,059,741
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
PIONEER U.S. GOVERNMENT MONEY FUND
BALANCE SHEET -- JUNE 30, 1996
================================================================================
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value based on amortized cost
(see Schedule of Investments and Note 1) $24,059,741
Cash 2,234
Receivables --
Interest 51,966
Fund shares sold 27,341
Due from Pioneering Management Corporation (Note 2) 25,876
Other 194
-----------
Total assets $24,167,352
-----------
LIABILITIES:
Payables --
Fund shares repurchased $ 179,694
Dividends 7,632
Due to affiliates (Notes 3 and 4) 10,815
Accrued expenses 20,279
-----------
Total liabilities $ 218,420
-----------
NET ASSETS:
Fund shares (unlimited number of shares authorized),
amount paid in on 23,948,932 shares outstanding $23,948,932
-----------
Total net assets (offering and redemption price
of $1.00 per share) $23,948,932
===========
</TABLE>
PIONEER U.S. GOVERNMENT MONEY FUND
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED JUNE 30, 1996
================================================================================
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME (NOTE 1):
Interest $715,865
--------
EXPENSES:
Management fees (Note 2) $ 53,490
Distribution fees (Note 4) 17,384
Transfer agent fees (Note 3) 36,223
Registration fees 23,231
Professional fees 21,439
Accounting (Note 2) 18,757
Custodian fees 11,078
Printing 830
Fees and expenses of nonaffiliated trustees 7,313
Miscellaneous 6,803
--------
Total expenses $196,548
Less fees paid indirectly (Note 5) (9,108)
Less management fees waived and expenses reimbursed by
Pioneering Management
Corporation (Note 2) (73,937)
--------
Net expenses $113,503
--------
Net investment income $602,362
--------
Net increase in net assets resulting from operations $602,362
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
PIONEER U.S. GOVERNMENT MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS --
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND THE YEAR ENDED DECEMBER 31, 1995
================================================================================
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
------------- -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 602,362 $ 1,509,038
------------- ----------------
Net increase in net assets resulting from operations $ 602,362 $ 1,509,038
------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ($0.02 and $0.05, respectively) $ (602,362) $ (1,509,038)
------------- ----------------
FROM FUND SHARE TRANSACTIONS (AT $1.00 PER SHARE):
Net proceeds from sale of shares $ 62,117,822 $ 125,746,780
Net asset value of shares issued to shareholders
in reinvestment of distributions 537,185 1,352,576
Cost of shares repurchased (67,017,846) (127,888,164)
------------- ----------------
Decrease in net assets resulting from fund share
transactions $ (4,362,839) $ (788,808)
------------- ----------------
Net decrease in net assets $ (4,362,839) $ (788,808)
NET ASSETS:
Beginning of period 28,311,771 29,100,579
------------- ----------------
End of period $ 23,948,932 $ 28,311,771
============= ================
</TABLE>
PIONEER U.S. GOVERNMENT MONEY FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
================================================================================
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
SIX MONTHS APRIL 11,
ENDED 1988 TO
JUNE 30, DECEMBER 31,
1996 1995 1994 1993 1992 1991 1990 1989 1988
---- ---- ---- ---- ---- ---- ---- ---- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------ ------ ------- ------
Income from investment operations:
Net investment income $ 0.02 $ 0.05 $ 0.04 $ 0.03 $ 0.03 $ 0.05 $ 0.07 $ 0.08 $ 0.05
Distributions to shareholders from net
investment income (0.02) (0.05) (0.04) (0.03) (0.03) (0.05) (0.07) (0.08) (0.05)
------- ------- ------- ------- ------- ------ ------ ------- ------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ====== ======= ======= ======
Total return* 2.25% 5.16% 3.65% 2.63% 3.19% 5.41% 7.61% 8.80% 5.34%
Ratio of net expenses to average net
assets 0.91%**+ 0.86%+ 0.63% 0.55% 0.59% 0.60% 0.60% 0.53% 0.50%**
Ratio of net investment income to
average net assets 4.41%**+ 4.96%+ 3.64% 2.61% 3.15% 5.29% 7.37% 8.37% 7.52%**
Net assets, end of period (in thousands) $23,949 $28,312 $29,101 $23,875 $23,619 $28,373 $27,828 $20,508 $9,503
Ratios assuming no waiver of management
fees and assumption of expenses by
PMC and no reduction for fees paid
indirectly:
Net expenses 1.46%** 1.36% 1.08% 1.37% 1.24% 1.08% 0.80% 1.12% 1.13%**
Net investment income 3.86%** 4.46% 3.19% 1.79% 2.50% 4.81% 7.17% 7.77% 6.88%**
Ratio assuming waiver of management
fees and assumption of expenses by
PMC and reduction for fees paid
indirectly:
Net expenes 0.85%** 0.79% -- -- -- -- -- -- --
Net investment income 4.47%** 5.03% -- -- -- -- -- -- --
<FN>
+ Ratios assuming no reduction for fees paid indirectly.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, cash and the complete redemption
of the investment at the net asset value at the end of each period.
** Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 1996
================================================================================
1. Pioneer Money Market Trust (the Trust) is a Delaware business trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Trust consisted of two separate money market
funds (the Funds): Pioneer Cash Reserves Fund (the Cash Reserves Fund) and
Pioneer U.S. Government Money Fund (the U.S. Government Fund) at June 30, 1996.
The investment objective of the Trust is to provide high current income,
preservation of capital and liquidity through investments in high quality
short-term securities.
After the close of business on June 30, 1996 (Closing Date), the Cash
Reserves Fund acquired all assets of the U.S. Government Fund in exchange solely
for (i) the issuance of shares of Cash Reserves Fund to the U.S. Government Fund
and (ii) the assumption by Cash Reserves Fund of the liabilities of the U.S.
Government Fund. Following this transfer, the U.S. Government Fund was
liquidated and dissolved and the Cash Reserves Fund shares were distributed to
the former shareholders of the U.S. Government Fund.
This reorganization was accomplished by a tax-free transfer of assets
whereby each shareholder of the U.S. Government Fund received a number of full
and fractional shares of Cash Reserves having a total net asset value equal to
the net asset value of their shares of the U.S. Government Fund held as of the
Closing Date. The net assets, net asset value per share and shares outstanding
on the Closing Date were:
<TABLE>
<CAPTION>
CASH
U.S. CASH RESERVES
GOVERNMENT RESERVES FUND
FUND FUND (COMBINED)
---------- ------------- ------------
<S> <C> <C> <C>
Net Assets $28,948,932 $170,674,144 $194,623,076
Shares Outstanding 23,948,932 170,950,207 194,899,139
Net Asset Value per Share $ 1.00 $ 1.00 $ 1.00
</TABLE>
The Board of Trustees has authorized the issuance of three share classes of
the Cash Reserves Fund, designated as Class A, Class B and Class C shares. Class
C shares were first publicly offered on January 31, 1996. The shares of Class A,
Class B and Class C represent an interest in the same portfolio of investments
of the Fund and have equal rights to voting, redemptions, dividends and
liquidation, except that each class of shares can bear different transfer agent
and distribution fees and have exclusive voting rights with respect to the
distribution plans that have been adopted by Class A, Class B and Class C
shareholders, respectively.
The Trust's financial statements have been prepared in conformity with
generally accepted accounting principles that require the management of the
trust 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 funds, which are in conformity
with those generally accepted in the investment company industry:
A. Security Valuation -- Security transactions are recorded on trade date.
Securities are valued at amortized cost, which approximates market value.
Interest income for securities purchased at face (par) value is accrued daily.
Investments purchased at a discount or premium are valued by amortizing the
difference between the original purchase price and maturity value of the issue
over the period to maturity.
B. Federal Income Taxes -- It is the policy of each Fund to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income and net realized capital
gains, if any, to its shareholders. Therefore, no federal income tax provisions
are required.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Funds' 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.
C. Fund Shares -- The Funds record sales and repurchases of its shares on
trade date. The Funds declare as daily dividends substantially all of their
respective net investment income. All dividends are paid on a monthly basis.
Short-term capital gains distributions, if any, may be declared with the daily
dividends. Dividends paid by the Cash Reserves Fund, if any, with respect to
each class of shares are calculated in the same manner, at the same time, on the
same day and in the same amount, except that Class A, Class B and Class C shares
can bear different transfer agent and distribution fees.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 1996 -- CONTINUED
================================================================================
D. 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 Cash Reserves Fund, respectively. Shareholders of each class share
all expenses and fees paid to the transfer agent, Pioneering Services
Corporation (PSC), for their services, which are allocated based on the number
of accounts in each class and the ratable allocation of related out-of-pocket
expense (see Note 3). Income, common expenses and realized and unrealized gains
and losses are calculated at the Fund level and allocated daily to each class of
shares based on the respective percentage of adjusted net assets at the
beginning of the day.
E. Repurchase Agreements -- The Funds may enter into repurchase agreements.
At the time the Funds enter into a repurchase agreement, the value of the
underlying security (collateral), including accrued interest, will be equal to
or exceed the value of the repurchase agreement, and in the case of repurchase
agreements exceeding one day, the value of the underlying security, including
accrued interest, is required during the term of the agreement to be equal to or
exceed the value of the repurchase agreement. The underlying securities for all
repurchase agreements are held in safekeeping in the customer-only account of
the Funds' custodian, or at the Federal Reserve Bank. If the seller defaults and
the value of the collateral declines, or if bankruptcy proceedings commence with
respect to the seller of the security, realization of the collateral by the
Funds may be delayed or limited.
2. PMC, the Trust's investment adviser, manages the Funds' portfolios and
is a wholly owned subsidiary of The Pioneer Group, Inc. (PGI). Management fees
are calculated daily at the annual rate of 0.40% of each Fund's average daily
net assets.
For the six months ended June 30, 1996, PMC agreed to waive its management
fees and to assume other operating expenses for the U.S. Government Fund to the
extent necessary to limit the Fund's expenses to 0.85% of average daily net
assets.
PMC has agreed not to impose a portion of its management fee and to assume
other operating expenses of the Cash Reserves Fund to the extent necessary to
limit Class A expenses to 0.85% of the average daily net assets attributable to
Class A shares; the portion of the Fund-wide expenses attributable to Class B
and Class C shares will be reduced only to the extent that such expenses are
reduced for Class A shares. PMC's agreements are voluntary and temporary and may
be revised or terminated 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 Funds. Included in due to affiliates for the Cash Reserves Fund are
$28,264 and $4,991 in management and accounting fees, respectively, payable to
PMC at June 30, 1996.
3. PSC, a wholly owned subsidiary of PGI, provides substantially all
transfer agent and shareholder services to the Funds at negotiated rates.
Included in due to affiliates are transfer agent fees payable to PSC at June 30,
1996:
<TABLE>
<CAPTION>
FUND AMOUNT
---- ------
<S> <C>
Cash Reserves Fund $43,920
U.S. Government Fund 4,734
</TABLE>
4. The Cash Reserves Fund adopted a Plan of Distribution for each class of
shares (Class A Plan, Class B Plan and Class C Plan) in accordance with Rule
12b-1 of the Investment Company Act of 1940. Pursuant to Class A Plan, the Fund
pays Pioneer Funds Distributor, Inc. (PFD) a service fee of up to 0.15% 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.
Pursuant to Class B Plan and Class C Plan, the Fund pays PFD 1.00% of the
average daily net assets attributable to each class of shares. The fee consists
of a 0.25% service fee and a 0.75% distribution fee paid as compensation for
personal services and/or account maintenance services or distribution services
with regard to Class B and Class C shares.
The U.S. Government Fund adopted a Plan of Distribution (the Plan) that
allowed for the Fund to reimburse PFD for expenditures to finance activities
primarily intended to result in the sale of the fund shares. The Plan provided
for reimbursement in an amount not to exceed 0.15% of the Fund's average daily
net assets. Included in due to affiliates are distribution fees payable to PFD
at June 30, 1996:
<TABLE>
<CAPTION>
FUND AMOUNT
---- ------
<S> <C>
Cash Reserves Fund $58,115
U.S. Government Fund 6,081
</TABLE>
In addition, redemptions of each class of shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
certain net asset value purchases of Class A shares that are redeemed within one
year of purchase. Class B shares that are
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 1996 -- CONTINUED
================================================================================
redeemed within six years of purchase are subject to a CDSC at declining rates
beginning at 4.0%, based on the lower of cost or market value of shares being
redeemed. Redemptions of Class C shares within one year of purchase are subject
to a CDSC of 1.00%. Proceeds from the CDSC are paid to PFD. For the six months
ended June 30, 1996, CDSCs in the amount of $21,489 were paid to PFD.
5. The Funds have entered into certain expense offset arrangements
resulting in a reduction in the Funds' total expenses. For the six months ended
June 30, 1996, the Funds' expenses were reduced by the following:
<TABLE>
<CAPTION>
FUND AMOUNT
---- ------
<S> <C>
Cash Reserves Fund $53,293
U.S. Government Fund 9,108
</TABLE>
================================================================================
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
================================================================================
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER MONEY MARKET
TRUST:
We have audited the accompanying balance sheets of Pioneer Money Market Trust
(comprising the Pioneer Cash Reserves Fund and the Pioneer U.S. Government Money
Fund), including the schedules of investments, as of June 30, 1996, and the
related statements of operations, statements of changes in net assets and
financial highlights for the periods presented. These financial statements and
financial highlights are the responsibility of the Trust'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, 1996 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 each
of the respective Funds composing Pioneer Money Market Trust as of June 30,
1996, the results of their operations, the changes in their net assets and
financial highlights for the periods presented, in conformity with generally
accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
August 1, 1996
14
<PAGE>
PIONEER CASH
RESERVES FUND
PIONEER U.S.
GOVERNMENT
MONEY FUND
60 State Street
Boston, Massachusetts 02109
OFFICERS
JOHN F. COGAN, JR., Chairman and President
DAVID D. TRIPPLE, Executive Vice President
SHERMAN B. RUSS, Vice President
WILLIAM H. KEOUGH, Treasurer
JOSEPH P. BARRI, Secretary
TRUSTEES
JOHN F. COGAN, JR. MARGUERITE A. PIRET
RICHARD H. EGDAHL, M.D. DAVID TRIPPLE
MARGARET B.W. GRAHAM STEPHEN K. WEST
JOHN W. KENDRICK JOHN WINTHROP
INVESTMENT ADVISER
PIONEERING MANAGEMENT CORPORATION
PRINCIPAL UNDERWRITER
PIONEER FUNDS DISTRIBUTOR, INC.
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
INDEPENDENT PUBLIC ACCOUNTANTS
ARTHUR ANDERSEN LLP
LEGAL COUNSEL
HALE AND DORR
SHAREHOLDER SERVICES AND TRANSFER AGENT
PIONEERING SERVICES CORPORATION
60 State Street
Boston, Massachusetts 02109
Please call Pioneer for
information on . . .
Existing accounts, new accounts,
prospectuses, applications and
services 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 Funds, this
report must be accompanied by a
current prospectus, which discusses
the objectives, policies and other
information concerning the Funds.
0896-3590
(C)Pioneer Funds Distributor, Inc.
PIONEER CASH
RESERVES FUND
PIONEER U.S.
GOVERNMENT
MONEY FUND
SEMIANNUAL REPORT
JUNE 30, 1996
