[PIONEER LOGO]
Pioneer
Cash Reserves
Fund
SEMIANNUAL REPORT 6/30/97
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Table of Contents
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<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 4
Schedule of Investments 6
Financial Statements 8
Notes to Financial Statements 14
Report of Independent Public Accountants 18
Trustees, Officers and Service Providers 19
Programs and Services for Pioneer Shareowners 20
</TABLE>
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Pioneer Cash Reserves Fund
LETTER FROM THE CHAIRMAN 6/30/97
Dear Shareowner,
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It is with pleasure that I introduce this semiannual report for Pioneer Cash
Reserves Fund, covering the six months ended June 30, 1997.
It was a time of uncertainty for bond investors, and emotions and perceptions
seemed to be the primary factors moving the bond market. We are happy to report
that even in this challenging environment, your Fund continued to reward
shareowners by paying current income and maintaining a $1 share price. Pioneer
Cash Reserves Fund continues to be a high-quality choice for shareowners with
short investment horizons or a need to preserve their capital.
We are in the longest bull stock market in history. Our concern is that many
investors, especially those newer to financial markets, see stocks moving only
in an upward direction, which will not always be the case. When the stock
market slows or retreats, people will be reminded how important it is to
diversify among a variety of investments. A money market fund like Pioneer Cash
Reserves Fund offers liquidity and can act as a "safe harbor" for your money in
turbulent times.
If you have any questions about Pioneer Cash Reserves Fund, please contact your
investment representative, or Pioneer at 1-800-225-6292. 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
PORTFOLIO SUMMARY 6/30/97
P o r t f o l i o D i v e r s i f i c a t i o n
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As a percentage of total investment portfolio)
[Pie chart]
Commercial Paper 85%
U.S. Government Agency Obligations 9%
Repurchase Agreements 6%
1 0 L a r g e s t H o l d i n g s
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(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
1. Chase Manhattan Bank, Repurchase Agreement, 5.8%, 7/1/97 5.87%
2. Ford Motor Credit Co., 5.58%, 8/25/97 4.42
3. AVCO Financial Services Inc., 5.56%, 9/3/97 4.26
4. American Express Credit Corp., 5.54%, 8/29/97 3.85
5. Prudential Funding Corp., 5.59%, 8/28/97 3.81
6. American General Finance Corp., 5.56%, 8/11/97 3.64
7. Norwest Financial Inc., 5.54%, 8/18/97 3.23
8. Equitable Resources Inc., 5.57%, 8/28/97 3.22
9. Southwestern Bell, 5.50%, 8/25/97 3.21
10. BankAmerica Corp., 5.49%, 8/20/97 3.18
</TABLE>
Fund holdings will vary for other periods.
2
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Pioneer Cash Reserves Fund
PERFORMANCE UPDATE 6/30/97
S h a r e P r i c e s
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<TABLE>
<S> <C> <C>
Net Asset Value per Share 6/30/97 12/31/96
Class A Shares $1.00 $1.00
Class B Shares 1.00 1.00
Class C Shares 1.00 1.00
</TABLE>
D i s t r i b u t i o n s
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<TABLE>
<S> <C> <C> <C>
Per Share Income Short-Term Long-Term
(12/31/96 - 6/30/97) Dividends Capital Gains Capital Gains
Class A Shares $0.023 - -
Class B Shares 0.018 - -
Class C Shares 0.019 - -
</TABLE>
Y i e l d s
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<TABLE>
<S> <C> <C>
7-Day Simple 7-Day Effective*
Class A Shares 4.75% 4.87%
Class B Shares 3.88% 3.95%
Class C Shares 3.94% 4.01%
</TABLE>
*Assumes daily compounding of dividends.
Pioneer Cash Reserves Fund is currently waiving all or a portion of its
management fees and/or expenses. Otherwise, 7-day annualized yields would have
been 4.61% for Class A Shares, 3.77% for Class B Shares and 3.82% 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
PORTFOLIO MANAGEMENT DISCUSSION 6/30/97
Dear Shareowner,
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The first half of Pioneer Cash Reserves Fund's fiscal year came to a close on
June 30, 1997. Once again the Fund met its investment objective of providing
current income and a stable $1 share price. The Fund invests exclusively 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).
Bond Market Shows Resilience through Uncertain Times
Investor expectations shaped the bond market - almost more than actual events.
Concern about the pace of economic growth, inflation, changes in interest rates
and the volatility in the stock market kept many bond investors on their toes.
Throughout the period, however, inflation remained contained despite continued
economic expansion, and interest rates generally were low.
We entered 1997 with bond prices falling and long-term interest rates rising.
By February, the bond market had recovered ground lost in January. The economy
showed substantial growth in the first quarter of 1997, and the Federal Reserve
increased short-term interest rates one-quarter of a percentage point (0.25%)
on March 25. The rate hike boosted money market yields, but didn't have a
significant or lasting effect on the overall financial markets. As the period
closed, the Fed was continuing its "wait and see" attitude.
Conservative Positioning Maintained
Short-term interest rates rose a modest half-percent over the past six months
due to the combination of the Fed's action and the strengthening economy. And
since money market fund yields tend to follow short-term interest rates, we
added longer eligible maturities and some higher yields to the Fund's
portfolio. On December 31, 1996, the portfolio's average maturity was 27 days.
By June 30, we had increased maturity to 38 days,
4
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Pioneer Cash Reserves Fund
still very conservatively positioned compared to money market fund averages.
This relatively short average maturity gives the Fund extra liquidity and
mobility.
We maintained the Fund's yield by holding a substantial portion of the
portfolio in corporate commercial paper, which offers slightly higher yields
than U.S. Treasury bills. As of June 30, 85% of the Fund's portfolio was
invested in commercial paper, with 9% in U.S. government agency obligations and
the remaining 6% in repurchase agreements.
Looking Ahead
The economy and markets seem to be moving forward with an "all news is good
news" attitude. There are indications that inflation will likely remain
contained, with interest rates staying near their current range. If this
relatively tame environment continues, we also wouldn't expect to see any
further intervention by the Federal Reserve. This would be good news for almost
all bond investors.
Once again, our primary focus will be on investments in only the highest-
quality issues of corporations and the U.S. government. 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 that it
offers the liquidity and safety that shareowners have come to expect.
Respectfully,
[Signature of Sherman B. Russ]
Sherman B. Russ,
Portfolio Manager
5
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Pioneer Cash Reserves Fund
SCHEDULE OF INVESTMENTS 6/30/97
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 100.0%
Commercial Paper - 85.0%
$ 5,770,000 Abbott Laboratories, 5.5%, 8/4/97 $ 5,740,028
8,938,000 American Express Credit Corp., 5.54%, 8/29/97 8,856,848
8,415,000 American General Finance Corp., 5.56%, 8/11/97 8,361,714
5,507,000 Amoco Co., 5.46%, 9/3/97 5,453,545
9,895,000 AVCO Financial Services Inc., 5.56%, 9/3/97 9,797,193
7,370,000 BankAmerica Corp., 5.49%, 8/20/97 7,313,804
7,210,000 Bankers Trust Company, 5.51%, 9/25/97 7,115,096
6,650,000 Bell Atlantic Corp., 5.57%, 7/3/97 6,647,942
7,150,000 Beneficial Corp., 5.57%, 9/8/97 7,073,668
5,160,000 Coca-Cola Co., 5.48%, 7/14/97 5,149,789
4,845,000 Commercial Credit Corp., 5.61%, 7/7/97 4,840,470
6,410,000 CoreStates Financial Corp., 5.54%, 8/19/97 6,361,665
7,460,000 Equitable Resources Inc., 5.57%, 8/28/97 7,393,055
10,240,000 Ford Motor Credit Co., 5.58%, 8/25/97 10,152,704
4,035,000 Gannett Co., 5.48%, 7/25/97 4,020,259
5,000,000 Hershey Foods Corp., 5.53%, 7/21/97 4,984,639
6,900,000 Household Finance Corp., 5.57%, 8/4/97 6,863,702
6,030,000 Motorola, 5.47%, 7/24/97 6,008,927
5,820,000 National Rural Utilities Corp., 5.6%, 7/15/97 5,807,325
7,470,000 Norwest Financial Inc., 5.54%, 8/18/97 7,414,822
3,410,000 Pacific Gas & Electric Corp., 5.53%, 7/22/97 3,399,000
4,520,000 Penney (J.C.) Co., 5.49%, 7/10/97 4,513,796
6,200,000 Pepsico, Inc., 5.46%, 7/9/97 6,192,477
8,842,000 Prudential Funding Corp., 5.59%, 8/28/97 8,762,368
7,200,000 Republic New York Corp., 5.49%, 7/30/97 7,168,158
5,655,000 Safeco Corp., 5.55%, 7/11/97 5,646,282
1,165,000 Southern California Edison, 5.52%, 8/7/97 1,158,391
7,445,000 Southwestern Bell, 5.5%, 8/25/97 7,382,441
4,355,000 Toys "R" Us Inc., 5.49%, 8/6/97 4,331,091
5,975,000 Warner Lambert Co., 5.48%, 8/5/97 5,943,167
5,508,000 Xerox Credit Corp., 5.49%, 7/17/97 5,494,561
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Total Commercial Paper $195,348,927
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</TABLE>
The accompanying notes are an integral part of these financial statements.
6
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Pioneer Cash Reserves Fund
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. Government Agency Obligations - 9.1%
$ 7,000,000 Federal Farm Credit Bank, 5.55%, 7/1/97 $ 7,000,000
7,000,000 Federal Farm Credit Bank, 5.55%, 8/1/97 7,000,000
7,000,000 Federal Farm Credit Bank, 5.69%, 10/1/97 7,000,000
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Total U.S. Government Agency Obligations $ 21,000,000
-------------
Repurchase Agreement - 5.9%
13,500,000 Chase Manhattan Bank, 7/1/97, 5.8%, repurchase
price of $13,500,000 plus accrued interest on
7/1/97, collateralized by $13,369,000
U.S. Treasury Notes, 6.25%, 7/31/98 $ 13,500,000
-------------
Total Repurchase Agreement $ 13,500,000
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TOTAL INVESTMENT IN SECURITIES(a) $229,848,927
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</TABLE>
(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. 7
<PAGE>
Pioneer Cash Reserves Fund
BALANCE SHEET 6/30/97
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investment in securities (cost $229,848,927) $229,848,927
Receivables -
Fund shares sold 2,764,734
Interest 163,699
Other 6,166
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Total assets $232,783,526
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LIABILITIES:
Payables -
Investment securities purchased $ 7,000,000
Fund shares repurchased 1,428,003
Dividends 57,327
Due to affiliates 199,680
Accrued expenses 4,751
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Total liabilities $ 8,689,761
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NET ASSETS:
Fund shares $224,369,828
Accumulated net realized loss on investments (276,063)
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Total net assets $224,093,765
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NET ASSET VALUE PER SHARE:
(Offering and redemption price; unlimited number of shares authorized)
Class A - (based on $207,935,988/208,212,052 shares) $1.00
-----
Class B - (based on $13,514,210/13,514,210 shares) $1.00
-----
Class C - (based on $2,643,567/2,643,566 shares) $1.00
-----
</TABLE>
8 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Cash Reserves Fund
STATEMENT OF OPERATIONS
For the Period Ended 6/30/97
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Interest $ 5,868,352
-----------
EXPENSES:
Management fees $428,076
Transfer agent fees
Class A 312,670
Class B 21,365
Class C 3,135
Distribution fees
Class A 139,284
Class B 62,108
Class C 7,761
Accounting 31,452
Custodian fees 16,905
Registration fees 58,800
Professional fees 23,592
Printing 7,376
Fees and expenses of nonaffiliated trustees 9,120
Miscellaneous 20,227
---------
Total expenses $ 1,141,871
Less management fees waived by
Pioneering Management Corporation (97,401)
Less fees paid indirectly (69,768)
-----------
Net expenses $ 974,702
-----------
Net investment income $ 4,893,650
-----------
Net increase in net assets resulting from operations $ 4,893,650
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Cash Reserves Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended 6/30/97 and the Year Ended 12/31/96
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
FROM OPERATIONS: 6/30/97 12/31/96
<S> <C> <C>
Net investment income $ 4,893,650 $ 8,705,691
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Net increase in net assets resulting from operations $ 4,893,650 $ 8,705,691
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.02 and $0.05 per share, respectively) $ (4,631,061) $ (8,310,286)
Class B ($0.02 and $0.04 per share, respectively) (232,652) (380,029)
Class C ($0.02 and $0.03 per share, respectively) (29,937) (15,376)
------------- -------------
Total distributions to shareholders $ (4,893,650) $ (8,705,691)
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FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 273,040,407 $ 572,906,395
Reinvestment of distributions 4,425,361 7,889,833
Cost of shares repurchased (253,971,312) (551,591,434)
------------- -------------
Net increase in net assets resulting from
fund share transactions $ 23,494,456 $ 29,204,794
------------- -------------
Net increase in net assets $ 23,494,456 $ 29,204,794
NET ASSETS:
Beginning of period 200,599,309 171,394,515
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End of period $ 224,093,765 $ 200,599,309
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</TABLE>
<TABLE>
<CAPTION>
CLASS A '97 Amount '96 Amount
<S> <C> <C>
Shares sold $ 245,167,473 $ 519,457,178
Reinvestment of distributions 4,195,297 7,539,821
Less shares repurchased (230,772,713) (501,471,395)
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Net increase $ 18,590,057 $ 25,525,604
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CLASS B
Shares sold $ 22,551,992 $ 49,475,014
Reinvestment of distributions 202,584 335,905
Less shares repurchased (19,581,927) (47,043,545)
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Net increase $ 3,172,649 $ 2,767,374
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CLASS C*
Shares sold $ 5,320,942 $ 3,974,203
Reinvestment of distributions 27,480 14,107
Less shares repurchased (3,616,672) (3,076,494)
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Net increase $ 1,731,750 $ 911,816
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</TABLE>
* Class C shares were first publicly offered on January 31, 1996.
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Cash Reserves Fund
FINANCIAL HIGHLIGHTS 6/30/97
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
6/30/97 12/31/96
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 1.00 $ 1.00
-------- --------
Income from investment operations:
Net investment income $ 0.02 $ 0.05
Distributions to shareholders:
Net investment income (0.02) (0.05)
-------- --------
Net asset value, end of period $ 1.00 $ 1.00
-------- --------
Total return* 2.30% 4.65%
Ratio of net expenses to average net assets 0.91%**+ 0.91%+
Ratio of net investment income to average net assets 4.54%**+ 4.50%+
Net assets, end of period (in thousands) $207,936 $189,346
Ratios assuming no waiver of management fees
and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 1.00%** 1.05%
Net investment income 4.45%** 4.36%
Ratios assuming waiver of management fees
by PMC and reduction for fees paid indirectly:
Net expenses 0.85%** 0.85%
Net investment income 4.60%** 4.56%
<CAPTION>
Year Ended Year Ended Year Ended Year Ended
12/31/95 12/31/94 12/31/93 12/31/92
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- ------- -------
Income from investment operations:
Net investment income $ 0.05 $ 0.03 $ 0.02 $ 0.03
Distributions to shareholders:
Net investment income (0.05) (0.03) (0.02) (0.03)
---------- -------- ------- -------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- ------- -------
Total return* 5.17% 3.57% 2.47% 3.06%
Ratio of net expenses to average net assets 0.88%+ 0.50% 0.75% 0.81%
Ratio of net investment income to average net assets 5.00%+ 2.59% 2.44% 3.03%
Net assets, end of period (in thousands) $163,820 $173,195 $64,841 $59,097
Ratios assuming no waiver of management fees
and assumption of expenses by PMC and no
reduction for fees paid indirectly:
Net expenses 1.15% 0.65% 1.10% 1.01%
Net investment income 4.73% 2.44% 2.09% 2.82%
Ratios assuming waiver of management fees
by PMC and reduction for fees paid indirectly:
Net expenses 0.82% - - -
Net investment income 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.
** 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 Fund
FINANCIAL HIGHLIGHTS 6/30/97
<TABLE>
<CAPTION>
Six Months
Ended Year Ended 3/31/95 to
6/30/97 12/31/96 12/31/95
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
------- --------- ------
Income from investment operations:
Net investment income $ 0.02 $ 0.04 $ 0.03
Distributions to shareholders from:
Net investment income (0.02) (0.04) (0.03)
------- --------- ------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
------- --------- ------
Total return* 1.85% 3.82% 3.28%
Ratio of net expenses to average net assets 1.80%**+ 1.75%+ 1.66%**+
Ratio of net investment income to average net
assets 3.66%**+ 3.66%+ 4.20%**+
Net assets, end of period (in thousands) $13,514 $10,342 $7,574
Ratios assuming no waiver of management
fees by PMC and no reduction for fees paid
indirectly:
Net expenses 1.89%** 1.88% 1.86%**
Net investment income 3.57%** 3.53% 4.00%**
Ratios assuming waiver of management fees by
PMC and reduction for fees paid indirectly:
Net expenses 1.74%** 1.67% 1.61%**
Net investment income 3.72%** 3.74% 4.25%**
</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.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Cash Reserves Fund
FINANCIAL HIGHLIGHTS 6/30/97
<TABLE>
<CAPTION>
Six Months
Ended 1/31/96 to
6/30/97 12/31/96
<S> <C> <C>
CLASS C
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* 1.87% 3.35%
Ratio of net expenses to average net assets 1.85%**+ 1.84%**+
Ratio of net investment income to average net assets 3.63%**+ 3.61%**+
Net assets, end of period (in thousands) $2,644 $912
Ratios assuming no waiver of management fees by PMC
and no reduction for fees paid indirectly:
Net expenses 1.94%** 1.95%**
Net investment income 3.54%** 3.50%**
Ratios assuming waiver of management fees by PMC
and reduction for fees paid indirectly:
Net expenses 1.67%** 1.77%**
Net investment income 3.81%** 3.68%**
</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.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Cash Reserves Fund
NOTES TO FINANCIAL STATEMENTS 6/30/97
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 current
income, preservation of capital and liquidity.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
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.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to,
among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts
of revenues and expenses during the reporting periods. Actual results could
differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Fund, which are in conformity
with those generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded on trade date. 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 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
14
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Pioneer Cash Reserves Fund
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 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.
15
<PAGE>
Pioneer Cash Reserves Fund
NOTES TO FINANCIAL STATEMENTS 6/30/97 (continued)
2. Management Agreement
PMC manages the Fund's portfolio and is a wholly owned subsidiary of Pioneer
Group, Inc. (PGI). Management fees are calculated daily at the annual rate of
0.40% of the Fund's average daily net assets.
Until June 30, 1997, PMC 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 was reduced only to the extent that such expenses were
reduced for Class A shares.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. At June 30, 1997, $64,323 was payable to PMC related to management
fees and certain other services.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in due
to affiliates is $46,308 in transfer agent fees payable to PSC at June 30,
1997.
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 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 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
$89,049 in distribution fees payable to PFD at June 30, 1997.
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Pioneer Cash Reserves Fund
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 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, 1997, CDSCs in the
amount of $57,617 were paid to PFD.
5. Expense Reductions
The Fund has entered into certain expense offset arrangements resulting in
reduction in the Fund's total expenses. For the six months ended June 30, 1997,
the Fund's expenses were reduced by $69,768 under such arrangements.
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Pioneer Cash Reserves Fund
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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 June 30, 1997, 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 June
30, 1997 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 June 30, 1997, the results of its operations,
the changes in its net assets, and the financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
August 1, 1997
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Pioneer Cash Reserves Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Richard H. Egdahl, M.D. President
Margaret B.W. Graham David D. Tripple, Executive Vice
John W. Kendrick President
Marguerite A. Piret Sherman B. Russ, Vice President
David D. Tripple William H. Keough, Treasurer
Stephen K. West Joseph P. Barri, Secretary
John Winthrop
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
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PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
Your investment representative can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-800-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 13-digit account number and four-digit personal identification number at
hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as
you meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
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Automatic Exchange Program
A simple way to move money from a money market or bond fund into a stock fund
over a period of time. Just invest a lump sum in a Pioneer money market fund or
bond fund. Then, select the Pioneer equity fund or funds you wish to invest in,
and choose the amounts and dates for Pioneer to sell shares of your money
market or bond fund and use the proceeds to buy shares of the Pioneer equity
fund you have chosen. Over time, your original investment will be shifted to
your Pioneer equity fund.
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals.
You decide the frequency and the day of the month you want. Pioneer will send
the proceeds by check to the address you designate, or electronically to your
bank account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available only for accounts with a value of $10,000 or
more.)
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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.
Call us:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
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Pioneer Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109
0897-4367
[copyright] Pioneer Funds Distributor, Inc.
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