[Pioneer logo]
Pioneer
Cash Reserves
Fund
ANNUAL REPORT 12/31/96
<PAGE>
T a b l e o f C o n t e n t s
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Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 4
Schedule of Investments 6
Financial Statements 7
Notes to Financial Statements 13
Report of Independent Public Accountants 17
Tax Treatment of Distributions 18
Trustees' Fees and Share Ownership 19
Trustees, Officers and Service Providers 20
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Pioneer Cash Reserves Fund
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LETTER FROM THE CHAIRMAN 12/31/96
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D e a r S h a r e o w n e r,
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It is with pleasure that I introduce this report for Pioneer Cash Reserves
Fund, covering the year ended December 31, 1996.
The bond market went full cycle during the year, going from falling interest
rates and rising bond prices to rising rates and falling prices, and back
again. Short-term interest rates moved up and down, although far less
dramatically than rates on long-term investments. Your Fund's management team
was diligent, adjusting the portfolio to offer a steady $1 share price and
pursue an attractive income stream. We are pleased to report they were
successful on both counts. Pioneer Cash Reserves Fund continues to be a
high-quality choice for shareowners with short investment horizons or a need
for capital preservation.
A final note. As you see, we've given your Fund's annual report a facelift.
The new, improved style reflects what shareowners told us they want to see in
fund reports. Now you'll find a Table of Contents and consistent,
easy-to-read summaries of portfolio information and performance. There's also
a Portfolio Management Discussion of the portfolio management team's insights
into market conditions, portfolio strategy and results. We hope you find them
informative.
Please contact your investment representative, or us at 1-800-225-6292, if
you have questions about your investment in Pioneer Cash Reserves Fund. Thank
you for your continued support.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
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Pioneer Cash Reserves Fund
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PORTFOLIO SUMMARY 12/31/96
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P o r t f o l i o D i v e r s i f i c a t i o n
(As a percentage of total investment portfolio)
[pie chart]
Commercial Paper 87%
U.S. Government Agency Obligations 13%
1 0 L a r g e s t H o l d i n g s
(As a percentage of total investment portfolio)
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1. General Electric Capital Corp., 5.31%, 1/17/97 4.73%
2. Household Finance Corp., 5.5%, 1/22/97 4.71
3. JP Morgan & Co. Inc., 5.37%, 1/8/97 4.61
4. Bankers Trust New York Corp., 5.29%, 1/24/97 4.59
5. BankAmerica Corp., 5.25%, 1/6/97 4.33
6. American Express Credit Corp., 5.29%, 2/4/97 4.03
7. EI du Pont de Nemours & Co., 5.26%, 1/14/97 3.91
8. Xerox Corp., 5.25%, 3/10/97 3.85
9. CoreStates Financial Corp., 5.39%, 1/16/97 3.77
10. Kellogg Co., 5.3%, 2/5/97 3.77
Fund holdings will vary for other periods.
2
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Pioneer Cash Reserves Fund
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PERFORMANCE UPDATE 12/31/96
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S h a r e P r i c e s
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Net Asset Value per Share 12/31/96 12/31/95
Class A Shares $1.00 $1.00
Class B Shares 1.00 1.00
Class C Shares 1.00 1.00*
*Net asset value at inception on 1/31/96.
D i s t r i b u t i o n s
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Per Share Income Short-Term Long-Term
(12/31/95-12/31/96) Dividends Capital Gains Capital Gains
Class A Shares $0.046 - -
Class B Shares $0.038 - -
Class C Shares* $0.033 - -
*Period begins at inception on 1/31/96.
Y i e l d s
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7-Day Simple 7-Day Effective*
Class A Shares 4.64% 4.74%
Class B Shares 3.70% 3.77%
Class C Shares 3.56% 3.63%
*Assumes daily compounding of dividends.
The Fund is currently waiving all or a portion of its management fees and/or
expenses. Otherwise, 7-day annualized yields would have been 4.44% for Class
A Shares, 3.54% for Class B Shares and 3.40% for Class C Shares.
Past performance does not guarantee future results. Investment returns will
fluctuate, and there can be no guarantee the Fund will be able to maintain a
stable net asset value of $1 per share. An investment in the Fund is not
insured or guaranteed by the U.S. government.
3
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Pioneer Cash Reserves Fund
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PORTFOLIO MANAGEMENT DISCUSSION 12/31/96
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D e a r S h a r e o w n e r ,
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We are pleased to have this opportunity to discuss the performance of Pioneer
Cash Reserves Fund for its fiscal year ended December 31, 1996. Once again,
the Fund met its investment objective of providing current income and a
stable $1 share price. The Fund invests primarily in high-quality money
market instruments issued by the U.S government, corporations and banks. All
issues in the portfolio are given the highest rating by the two leading
nationally recognized securities rating organizations, Standard & Poor's
Investor Services (A1) and Moody's Investor Services (P1).
Slow, Steady Economy in First Half
It was a fast-paced 12 months for the bond market. Longer-term interest rates
showed a lot of volatility, reacting to the threat of rising inflation. As it
turned out, it was a threat that never materialized, but still had a
significant impact on the bond markets. As expected, your Fund's performance
reflected the movement of short-term interest rates, which moved far less
dramatically than intermediate- or long-term rates.
After making a small cut in short-term interest rates on January 31st, the
Federal Reserve did not change rates again over the remainder of the year.
Wage inflation stayed minimal due to foreign competition, and corporate
America continued its downsizing trend. As a result, inflation stayed in a
comfortable range, and the economy never picked up enough steam to warrant
interest rate increases. Even the federal budget quietly made progress
without the intense scrutiny of the previous year.
These relatively positive events moved short-term interest rates higher in
the first half of the year. And since money market fund yields tend to follow
short-term interest rates, we took this opportunity to add longer maturities
to the Fund's portfolio. On December 31, 1995, the Fund's average maturity
was 25 days, which we gradually increased to 27 days by December 31, 1996.
This relatively low maturity gives the Fund extra liquidity and mobility.
4
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Pioneer Cash Reserves Fund
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Bond Prices Headed Up, Interest Rates Fell as Year Progressed
By mid-year, worries surfaced about an overheating economy and interest rates
spiked up. However, after a few months, it again became evident that the
economy was not moving too fast. Interest rates reversed their direction,
heading downward and sending bond prices back up.
Another strategy we used to maintain the Fund's yield was to increase
investments in corporate commercial paper, which offers slightly higher
yields than U.S. Treasury bills. As of December 31, 1996, 87% of the Fund's
portfolio was invested in commercial paper, with the remaining 13% in U.S.
government agency obligations. This maneuvering allowed the Fund to continue
paying an attractive yield, although the Fund's dividend rate did fluctuate
as short-term interest rates changed.
Looking Ahead: Inflation Under Control, Slightly Lower Interest Rates
As we head into 1997, we think investors can expect less volatility in the
bond market. The economy remains slow with inflation under control. In this
steady economic environment, we would not expect the Federal Reserve to raise
short-term interest rates. However, we will closely monitor the markets and
economic data for signs of change in economic growth and Fed policy.
Once again, our primary focus will be on investments in only the highest
quality issues of the U.S. government and corporations. Because we understand
that investors are looking for a "safe harbor" in fast-moving markets, our
investment team will continue to manage Pioneer Cash Reserves Fund so it
offers the liquidity and safety that shareowners have come to expect.
Respectfully,
/s/ Sherman B. Russ,
Sherman B. Russ,
Portfolio Manager
5
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Pioneer Cash Reserves Fund
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SCHEDULE OF INVESTMENTS 12/31/96
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Principal
Amount Value
INVESTMENT IN SECURITIES - 100.0%
Commercial Paper - 86.9%
$8,370,000 American Express Credit Corp., 5.29%, 2/4/97 $ 8,329,413
6,000,000 American General Finance Corp., 5.4%, 1/7/97 5,995,500
4,510,000 Amoco Co., 5.25%, 2/21/97 4,477,115
5,510,000 Associates Corp., 5.31%, 1/21/97 5,494,558
8,970,000 Bankamerica Corp., 5.25%, 1/6/97 8,964,767
9,520,000 Bankers Trust New York Corp., 5.29%, 1/24/97 9,489,224
1,285,000 Beneficial Corp., 5.5%, 1/31/97 1,279,307
4,160,000 Commercial Credit Co., 5.5%, 1/29/97 4,142,840
7,815,000 CoreStates Financial Corp., 5.39%, 1/16/97 7,798,619
8,100,000 E I du Pont de Nemours & Co., 5.26%, 1/14/97 8,085,798
7,892,000 Exxon Asset Management, 6.25%, 1/2/97 7,892,000
5,000,000 Gannett Co., 5.35%, 1/13/97 4,991,826
9,800,000 General Electric Capital Corp., 5.31%, 1/17/97 9,778,318
4,000,000 Golden Peanut Co., 5.27%, 1/15/97 3,992,388
7,065,000 Hershey Foods Corp., 5.31%, 1/31/97 7,034,779
9,780,000 Household Finance Corp., 5.5%, 1/22/97 9,750,117
7,835,000 Kellogg Co., 5.3%, 2/5/97 7,795,781
9,550,000 J P Morgan & Co. Inc., 5.37%, 1/8/97 9,541,453
6,065,000 National Rural Utilities Corp., 5.27%, 1/27/97 6,042,804
4,960,000 Norwest Financial Inc., 5.4%, 1/23/97 4,944,376
7,640,000 Pitney Bowes Credit Corp., 5.27%, 2/7/97 7,599,737
4,795,000 Prudential Funding Corp., 5.3%, 1/10/97 4,789,246
5,385,000 Republic New York Corp., 5.35%, 1/9/97 5,379,398
6,000,000 Southwestern Bell, 5.33%, 2/18/97 5,958,248
6,450,000 Texaco Inc., 5.48%, 1/30/97 6,422,509
5,900,000 Warner Lambert, 5.26%, 1/3/97 5,899,138
8,040,000 Xerox Corp., 5.25%, 3/10/97 7,961,442
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Total Commercial Paper $179,830,701
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U.S. Government Agency Obligations - 13.1%
6,000,000 Federal Farm Credit Bank, 5.33%, 1/2/97 $ 6,000,000
7,000,000 Federal Farm Credit Bank, 5.32%, 2/3/97 7,000,000
7,000,000 Federal Farm Credit Bank, 5.22%, 3/3/97 7,000,000
7,000,000 Federal Farm Credit Bank, 5.25%, 4/1/97 7,000,000
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Total U.S. Government Agency Obligations $ 27,000,000
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TOTAL INVESTMENT IN SECURITIES(a) $206,830,701
==============
(a) At December 31, 1996, the Fund had a net capital loss carryforward of
$276,063 which will expire between 2002 and 2003 if not utilized.
The accompanying notes are an integral part of these financial statements.
6
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Pioneer Cash Reserves Fund
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BALANCE SHEET 12/31/96
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ASSETS:
Investment in securities (cost $206,830,701) $206,830,701
Receivables -
Fund shares sold 1,988,011
Interest 175,076
Other 11,350
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Total assets $209,005,138
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LIABILITIES:
Payables -
Investment securities purchased $ 7,000,000
Fund shares repurchased 1,132,399
Dividends 60,537
Due to bank 215
Due to affiliates 175,144
Accrued expenses 37,534
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Total liabilities $ 8,405,829
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NET ASSETS:
Fund Shares $200,875,372
Accumulated net realized loss on investments (276,063)
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Total net assets $200,599,309
==============
NET ASSET VALUE PER SHARE:
(Offering and redemption price;
unlimited number of shares authorized)
Class A - (based on $189,345,932/189,621,995 shares) $1.00
=========
Class B - (based on $10,341,561/10,341,561 shares) $1.00
=========
Class C - (based on $911,816/911,816 shares) $1.00
=========
The accompanying notes are an integral part of these financial statements.
7
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Pioneer Cash Reserves Fund
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STATEMENT OF OPERATIONS
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For the Year Ended 12/31/96
INVESTMENT INCOME:
Interest $10,431,324
------------
EXPENSES:
Management fees $771,591
Transfer agent fees
Class A 575,482
Class B 30,462
Class C 1,540
Distribution fees
Class A 259,453
Class B 101,494
Class C 4,180
Accounting 71,179
Custodian fees 44,061
Registration fees 88,287
Professional fees 67,852
Printing 12,098
Fees and expenses of nonaffiliated trustees 17,167
Miscellaneous 49,737
---------
Total expenses $ 2,094,583
Less management fees waived
by Pioneering Management Corporation (257,425)
Less fees paid indirectly (111,525)
------------
Net expenses $ 1,725,633
------------
Net investment income $ 8,705,691
------------
Net increase in net assets resulting from operations $ 8,705,691
============
The accompanying notes are an integral part of these financial statements.
8
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Pioneer Cash Reserves Fund
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STATEMENTS OF CHANGES IN NET ASSETS
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For the Years Ended 12/31/96 and 12/31/95
<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/96 12/31/95
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 8,705,691 $ 8,638,793
Net realized loss on investments - (639)
-------------- --------------
Net increase in net assets resulting from operations $ 8,705,691 $ 8,638,154
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DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.05 and $0.05 per share, respectively) $ (8,310,286) $ (8,479,787)
Class B ($0.04 and $0.03 per share, respectively) (380,029) (159,006)
Class C ($0.03 per share) (15,376) -
-------------- --------------
Total distributions to shareholders $ (8,705,691) $ (8,638,793)
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FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 572,906,395 $ 571,316,827
Reinvestment of distributions 7,889,833 7,861,453
Cost of shares repurchased (551,591,434) (580,978,330)
-------------- --------------
Net increase (decrease) in net assets
resulting from fund share transactions $ 29,204,794 $ (1,800,050)
-------------- --------------
Net increase (decrease) in net assets $ 29,204,794 $ (1,800,689)
NET ASSETS:
Beginning of year 171,394,515 173,195,204
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End of year $ 200,599,309 $ 171,394,515
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'96 Amount '95 Amount
CLASS A
Shares sold $ 519,457,178 $ 548,292,258
Reinvestment of distributions 7,539,821 7,715,889
Less shares repurchased (501,471,395) (565,382,384)
-------------- --------------
Net increase (decrease) $ 25,525,604 $ (9,374,237)
============== ==============
CLASS B
Shares sold $ 49,475,014 $ 23,024,569
Reinvestment of distributions 335,905 145,564
Less shares repurchased (47,043,545) (15,595,946)
-------------- --------------
Net increase $ 2,767,374 $ 7,574,187
============== ==============
CLASS C*
Shares sold $ 3,974,203
Reinvestment of distributions 14,107
Less shares repurchased (3,076,494)
--------------
Net increase $ 911,816
==============
</TABLE>
*Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements.
9
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Pioneer Cash Reserves Fund
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FINANCIAL HIGHLIGHTS 12/31/96
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<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/96 12/31/95 12/31/94 12/31/93 12/31/92
<S> <C> <C> <C> <C> <C>
CLASS A
Net asset value,
beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Income from
investment
operations:
Net investment
income $ 0.05 $ 0.05 $ 0.03 $ 0.02 $ 0.03
Distributions to
shareholders
from:
Net investment
income (0.05) (0.05) (0.03) (0.02) (0.03)
---------- ---------- ---------- ---------- --------
Net asset value,
end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== =========
Total return* 4.65% 5.17% 3.57% 2.47% 3.06%
Ratio of net
expenses to
average net
assets 0.91%+ 0.88%+ 0.50% 0.75% 0.81%
Ratio of net
investment income
to average net
assets 4.50%+ 5.00%+ 2.59% 2.44% 3.03%
Net assets, end of
year (in
thousands) $189,346 $163,820 $173,195 $64,841 $59,097
Ratios assuming no
waiver of
management fees
by PMC and no
reduction for
fees paid
indirectly:
Net expenses 1.05% 1.15% 0.65% 1.10% 1.01%
Net investment
income 4.36% 4.73% 2.44% 2.09% 2.82%
Ratios assuming
waiver of
management fees
by PMC and
reduction for
fees paid
indirectly:
Net expenses 0.85% 0.82% - - -
Net investment
income 4.56% 5.06% - - -
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of each period.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
10
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Pioneer Cash Reserves Fund
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FINANCIAL HIGHLIGHTS 12/31/96
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Year Ended 3/31/95 to
12/31/96 12/31/95
CLASS B
Net asset value, beginning of period $ 1.00 $ 1.00
---------- ----------
Income from investment operations:
Net investment income $ 0.04 $ 0.03
Distributions to shareholders from:
Net investment income (0.04) (0.03)
---------- ----------
Net asset value, end of period $ 1.00 $ 1.00
========== ==========
Total return* 3.82% 3.28%
Ratio of net expenses to average net assets 1.75%+ 1.66%**+
Ratio of net investment income to average net
assets 3.66%+ 4.20%**+
Net assets, end of period (in thousands) $10,342 $7,574
Ratios assuming no waiver of management fees by
PMC and no reduction for fees paid indirectly:
Net expenses 1.88% 1.86%**
Net investment income 3.53% 4.00%**
Ratios assuming waiver of management fees by PMC
and reduction for fees paid indirectly:
Net expenses 1.67% 1.61%**
Net investment income 3.74% 4.25%**
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
11
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Pioneer Cash Reserves
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FINANCIAL HIGHLIGHTS 12/31/96
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1/31/96 to
12/31/96
CLASS C (a)
Net asset value, beginning of period $ 1.00
----------
Income from investment operations:
Net investment income $ 0.03
Distributions to shareholders from:
Net investment income (0.03)
----------
Net asset value, end of period $ 1.00
==========
Total return* 3.35%
Ratio of net expenses to average net assets 1.84%**+
Ratio of net investment income to average net assets 3.61%**+
Net assets, end of period (in thousands) $912
Ratios assuming no waiver of management fees by PMC
and no reduction for fees paid indirectly:
Net expenses 1.95%**
Net investment income 3.50%**
Ratios assuming waiver of management fees by PMC
and reduction for fees paid indirectly:
Net expenses 1.77%**
Net investment income 3.68%**
(a) Class C shares were first publicly offered on January 31, 1996.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions and the complete redemption of the
investment at net asset value at the end of each period.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
12
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Pioneer Cash Reserves Fund
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NOTES TO FINANCIAL STATEMENTS 12/31/96
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1. Organization and Significant Accounting Policies
Pioneer Cash Reserves Fund (the Fund) is a Delaware business trust registered
under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The investment objective of the fund is to
provide high current income, preservation of capital and liquidity through
investments in high quality short-term securities.
The Fund offers three classes of shares - Class A, Class B and Class C
shares. Class C shares were first publicly offered on January 31, 1996.
Shares of Class A, Class B and Class C each represent an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees and have exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B and Class C shareholders, respectively.
After the close of business on June 30, 1996 (Closing Date), the Fund
acquired the assets of Pioneer U.S. Government Money Fund in exchange solely
for (i) the issuance of Class A shares of beneficial interest of the Fund and
(ii) the assumption by the Fund of the liabilities of Pioneer U.S. Government
Money Fund. Following this transfer, Pioneer U.S. Government Money Fund was
liquidated and Class A shares of the Fund were distributed to the former
shareholders of Pioneer U.S. Government Money Fund.
The reorganization was accomplished by a tax-free transfer of assets whereby
each shareholder of Pioneer U.S. Government Money Fund received a number of
full and fractional shares of the Fund held as of the Closing Date. The net
assets, net asset values per share and shares outstanding as of the Closing
Date were:
Pioneer Pioneer Pioneer
U.S. Government Fund Cash Reserves Fund Cash Reserves Fund
(Pre-reorganization) (Pre-reorganization) (Post-reorganization)
--------------------- ------------------- ---------------------
Net Assets $23,948,932 $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
The Fund's financial statements have been prepared in conformity with
generally accepted accounting principles that require the management of the
Fund to, among other things, make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of con-
13
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Pioneer Cash Reserves Fund
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NOTES TO FINANCIAL STATEMENTS 12/31/96 (continued)
- -----------------------------------------------------------------------------
tingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates. The following is a summary
of significant accounting policies consistently followed by the Fund, which
are in conformity with those generally accepted in the investment company
industry:
A. Security Valuation
Security transactions are recorded on trade date. Securities are valued at
amortized cost, which approximates market value. 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. Interest income for securities purchased at face (par) value is
recorded on the accrual basis.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
C. Fund Shares
The Fund records sales and repurchases of its shares on trade date. The Fund
declares as daily dividends substantially all of its net investment income.
All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
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 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
14
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Pioneer Cash Reserves Fund
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- -----------------------------------------------------------------------------
each class and the ratable allocation of related out-of-pocket expense (see
Note 3). Income, common expenses and realized and unrealized gains and losses
are calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning of
the day.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value of the
underlying securities (collateral), including accrued interest received from
counterparties, is required to be at least equal to or in excess of the value of
the repurchase agreement at the time of purchase. The collateral for all
repurchase agreements is held in safekeeping in the customer-only account of the
Fund's custodian, or subcustodians. The Fund's investment adviser, Pioneering
Management Corporation (PMC), is responsible for determining that the value of
the collateral remains at least equal to the repurchase price.
2. Management Agreement
PMC, the Fund's investment adviser, manages the Fund's portfolio 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 the Fund's average daily net
assets.
PMC has agreed not to impose a portion of its management fee and to assume
other operating expenses of the 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 agreement is 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 Fund. At December 31, 1996, $60,903 were payable to PMC related
to management fees and certain other services.
15
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Pioneer Cash Reserves Fund
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NOTES TO FINANCIAL STATEMENTS 12/31/96 (continued)
- -----------------------------------------------------------------------------
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in
due to affiliates is $35,303 in transfer agent fees payable to PSC at
December 31, 1996.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A
Plan, Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the
Investment Company Act of 1940. Pursuant to the Class A Plan, the Fund pays
PFD a service fee of up to 0.15% 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 the Class B
Plan and the Class C Plan, the Fund pays PFD 1.00% of the average daily net
assets attributable to each class of shares. The fee consists of a 0.25%
service fee and a 0.75% distribution fee paid as compensation for personal
services and/or account maintenance services or distribution services with
regard to Class B and Class C shares. Included in due to affiliates is
$78,938 in distribution fees payable to PFD at December 31, 1996.
In addition, redemptions of each class of shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
redemptions of certain net asset value purchases of Class A shares within one
year of purchase. Class B shares that are redeemed within 6 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 year ended December 31, 1996, CDSCs in
the amount of $90,572 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the year ended December 31, 1996,
the Fund's expenses were reduced by $111,525 under such arrangements.
16
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Pioneer Cash Reserves Fund
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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To the Shareholders and the Board of Trustees of Pioneer Cash Reserves Fund:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Cash Reserves Fund as of December 31, 1996, and the
related statement of operations, the statements of changes in net assets, and
the financial highlights for the periods presented. These financial
statements and the financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 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
Pioneer Cash Reserves Fund as of December 31, 1996, the results of its
operations, the changes in its net assets, and the financial highlights for
the periods presented, in conformity with generally accepted accounting
principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
February 3, 1997
17
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Pioneer Cash Reserves Fund
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TAX TREATMENT OF DISTRIBUTIONS
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Made during the year ended 12/31/96
During the year ended December 31, 1996, Pioneer Cash Reserves Fund paid the
following distributions from net investment income:
Distributions Distributions Distributions
Payment Per Share Per Share Per Share
Date (Class A) (Class B) (Class C)
1/31/96 $0.0039 $0.0032 $0.0000
2/29/96 0.0036 0.0031 0.0030
3/29/96 0.0038 0.0033 0.0030
4/30/96 0.0037 0.0031 0.0029
5/31/96 0.0040 0.0033 0.0032
6/28/96 0.0035 0.0028 0.0028
7/31/96 0.0039 0.0032 0.0033
8/30/96 0.0041 0.0034 0.0035
9/30/96 0.0035 0.0029 0.0029
10/31/96 0.0039 0.0031 0.0033
11/29/96 0.0038 0.0030 0.0028
12/31/96 0.0039 0.0031 0.0028
------------- ------------- --------------
Total $0.0456 $0.0375 $0.0335
============= ============= ==============
For the purposes of the 70% dividends received deduction allowed by
Corporate Shareholders, none of the total distributions presented above
represent qualifying dividends.
18
<PAGE>
Pioneer Cash Reserves Fund
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TRUSTEES' FEES AND SHARE OWNERSHIP 12/31/96
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Trustees' Fees, Principal Shareholders and Share
Ownership of Trustees and Officers (Unaudited)
The aggregate remuneration paid by the Fund to nonaffiliated trustees and
officers during the year ended December 31, 1996 was $14,614, plus expenses
incurred in attending trustees meetings of $4,153. Fees of trustees who are
affiliated with or "interested persons" of Pioneering Management Corporation
and Pioneer Funds Distributor, Inc., investment adviser and principal
underwriter, respectively, of the Fund ($1,000 in 1996) are reimbursed to the
Fund by Pioneering Management Corporation in accordance with the management
agreement with the Fund. At December 31, 1996, the trustees and officers of
the Fund owned beneficially 807,036 of Class A shares of the Fund (0.4% of
the outstanding Class A shares). The Pioneer Group, Inc., the parent company
of Pioneering Management Corporation and Pioneer Funds Distributor, Inc., is
a publicly held corporation of which Mr. Cogan, Chairman and President of the
Fund, owned approximately 14% of the outstanding shares of capital stock at
December 31, 1996.
19
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Pioneer Cash Reserves Fund
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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Trustees
John F. Cogan, Jr.
Richard H. Egdahl, M.D.
Margaret B.W. Graham
John W. Kendrick
Marguerite A. Piret
David D. Tripple
Stephen K. West
John Winthrop
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
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
20
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This page for your notes.
21
<PAGE>
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HOW TO CONTACT PIONEER
- -----------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us
for assistance or information.
You can call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Or write to us at:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer logo] Pioneer Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109
0297-3936
(c) Pioneer Funds Distributor, Inc.
[Recycle symbol] Printed on Recycled Paper
