[PIONEER LOGO]
Pioneer
Cash Reserves
Fund
SEMIANNUAL REPORT 6/30/98
<PAGE>
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>
<PAGE>
Pioneer Cash Reserves Fund
LETTER FROM THE CHAIRMAN 6/30/98
Dear Shareowner,
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Fixed-income markets, in particular U.S. bonds, produced strong results over the
past six months as the powerful combination of low interest rates and benign
inflation pushed bond prices higher. Holders of high-quality short-term
securities - like those owned by Pioneer Cash Reserves Fund - enjoyed stable
prices and competitive yields. Over the past few years money market funds have
been overshadowed by the continuing bull market in stocks. During this period,
money funds served investors well by adding a measure of safety and liquidity to
a balanced portfolio.
Predicting the short-term direction of financial markets is almost always a
futile exercise, as the first six months of 1998 reminded many investors. While
stock and bond markets produced solid returns, concerns about the Asian economic
crisis and its effect on corporate earnings prompted increasing volatility. What
can you as an investor do? I encourage you to periodically review your financial
goals with your investment professional. It's a simple step to make sure you
will be better prepared to weather the inevitable swings in the market.
Please read on to learn more about how your Fund is being managed. If you have
questions about Pioneer Cash Reserves Fund, please contact your investment
professional, or Pioneer at 1-800-225-6292.
Respectfully,
[SIGNATURE OF JOHN F. COGAN, JR.]
John F. Cogan, Jr.,
Chairman and President
1
<PAGE>
Pioneer Cash Reserves Fund
PORTFOLIO SUMMARY 6/30/98
Portfolio Diversification
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(As a percentage of total investment portfolio)
[PIE CHART BEGINS]
Commercial Paper 80%
U.S. Government Agency Obligations 20%
[PIE CHART ENDS]
10 Largest Holdings
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
<TABLE>
<S> <C>
1. IBM Corp., 5.54%, 7/10/98 3.69%
2. Federal Farm Credit Bank, 5.46%, 7/1/98 3.66
3. Federal Farm Credit Bank, 5.51%, 8/3/98 3.66
4. Federal Farm Credit Bank, 5.50%, 9/1/98 3.66
5. Federal Farm Credit Bank, 5.53%, 10/1/98 3.66
6. Amoco Co., 5.44%, 7/13/98 3.65
7. Procter & Gamble Co., 5.45%, 8/21/98 3.48
8. Household Finance Corp., 6.05%, 7/1/98 3.46
9. Pitney Bowes Credit Corp., 5.52%, 7/20/98 3.45
10. Heinz (H.J.) Co., 5.49%, 7/2/98 3.44
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Cash Reserves Fund
PERFORMANCE UPDATE 6/30/98
Share Prices
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<TABLE>
<CAPTION>
Net Asset Value per Share 6/30/98 12/31/97
<S> <C> <C>
Class A Shares $1.00 $1.00
Class B Shares 1.00 1.00
Class C Shares 1.00 1.00
</TABLE>
Distributions
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<TABLE>
<CAPTION>
Per Share Income Short-Term Long-Term
(12/31/97 - 6/30/98) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
Class A Shares $0.023 - -
Class B Shares 0.019 - -
Class C Shares 0.020 - -
</TABLE>
Yields
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
7-Day Simple 7-Day Effective*
<S> <C> <C>
Class A Shares 4.82% 4.93
Class B Shares 3.88 3.96
Class C Shares 4.00 4.08
</TABLE>
*Assumes daily compounding of dividends.
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
<PAGE>
Pioneer Cash Reserves Fund
PORTFOLIO MANAGEMENT DISCUSSION 6/30/98
The first half of Pioneer Cash Reserves Fund's fiscal year ended on June 30,
1998. During the period, your Fund again 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). (Ratings apply to underlying securities, not Fund shares.)
The following discussion with Sherman B. Russ, your Fund's portfolio manager,
provides a detailed account of the investment environment and strategies that
affected your Fund's performance during the period. An investment professional
for more than 20 years, Mr. Russ oversees the team responsible for the daily
management of Pioneer Cash Reserves Fund.
Q: How did Pioneer Cash Reserves Fund perform over the past six months?
A: Class A Shares' seven-day effective yield on June 30 was 4.93%, compared to
5.05% six months ago. For the six months that ended June 30, the Fund's
Class A Shares returned 2.36%, Class B Shares 1.95% and Class C Shares
1.98%, all at net asset value. In comparison, the average money market fund
returned 2.42%, according to Lipper Analytical Services, Inc.
Q: What happened with interest rates during the period?
A: Short-term interest rates fluctuated within a narrow range, with the yield
on three-month U.S. Treasury bills peaking at 5.35% on December 31 and
hitting a low of 4.97% on June 1. Overall, demand for fixed-income
securities was strong as investors, spooked by the continuing Asian
financial crisis, gravitated toward the relative safety of United States.
The Federal Reserve left the federal funds rate (the rate it sets for
inter-bank lending) unchanged at 5.5%.
4
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Pioneer Cash Reserves Fund
Q: How did you manage the Fund?
A: At the beginning of the period, interest rates slipped down and we kept the
Fund's average maturity around 35 days. As the period progressed, it
appeared the Asian financial crisis was under control and that the strong
U.S. economy might prompt the Federal Reserve to raise short-term rates. In
response, we shortened the Fund's average maturity to 26 days, where it
basically remained for the rest of the period. Even though the Fed is
unlikely to change rates, given Asia's renewed troubles, we are comfortable
with this maturity range's liquidity and income.
Q: What is your outlook for the remainder of the year?
A: We expect the domestic economy to remain solid, and developments regarding
the Federal budget surplus to be positive. We also believe the uncertainty
of Asia's troubles will continue to affect the U.S. bond market. Near term,
we think investors will prefer quality and liquidity, which should
particularly benefit U.S. Treasurys and support the U.S. dollar. Looking
out further, we expect that Asia will have a powerful influence on the
direction of interest rates - if there is a significant spillover into the
U.S. economy, interest rates could remain stable or move moderately lower.
We will continue to focus on the highest quality money market instruments
and look forward to providing you with more details on the Fund's results
in our annual report in six months.
5
<PAGE>
Pioneer Cash Reserves Fund
SCHEDULE OF INVESTMENTS 6/30/98
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 100.0%
Commercial Paper - 79.6%
$8,346,000 American Express Credit Corp., 5.51%, 7/27/98 $ 8,312,787
800,000 American General Finance Corp., 5.57%, 7/8/98 799,134
9,500,000 Amoco Co., 5.44%, 7/13/98 9,482,774
7,879,000 Associates Corp., 5.51%, 7/7/98 7,871,764
6,000,000 AVCO Financial Services Inc., 5.45%, 7/22/98 5,980,925
5,289,000 BancOne Corp., 5.48%, 8/13/98 5,254,380
8,050,000 Bell Atlantic Corp., 5.52%, 8/4/98 8,008,033
5,290,000 BellSouth Capital Funding Corp., 5.48%, 8/11/98 5,256,985
4,120,000 Chevron Oil Corp., 5.5%, 7/23/98 4,106,152
4,125,000 The Coca-Cola Co., 5.45%, 8/19/98 4,094,400
5,631,000 Deere (John) Capital Corp., 5.5%, 9/2/98 5,576,802
8,098,000 Exxon Corp., 6.0%, 7/1/98 8,098,000
6,274,000 Ford Motor Credit Co., 5.51%, 7/20/98 6,255,755
7,220,000 Gannett Co., 5.45%, 7/13/98 7,206,884
5,513,000 General Electric Capital Corp., 5.51%, 8/4/98 5,484,311
4,600,000 General Motors Corp., 5.55%, 7/8/98 4,595,036
4,666,000 General Motors Corp., 5.52%, 7/17/98 4,654,553
8,954,000 Heinz (H.J.) Co., 5.49%, 7/2/98 8,952,634
9,000,000 Household Finance Corp., 6.05%, 7/1/98 9,000,000
9,593,000 IBM Corp., 5.54%, 7/10/98 9,579,713
7,542,000 Motorola Inc., 5.49%, 7/24/98 7,515,546
5,425,000 National Rural Utilities Corp., 5.43%, 7/9/98 5,418,454
8,536,000 Norwest Financial Inc., 5.5%, 7/21/98 8,509,918
7,107,000 Penney (J.C.) Co., Inc., 5.49%, 8/14/98 7,059,312
9,000,000 Pitney Bowes Credit Corp., 5.52%, 7/20/98 8,973,780
9,110,000 Procter & Gamble Co., 5.45%, 8/21/98 9,039,663
6,378,000 Prudential Funding Corp., 5.5%, 7/14/98 6,365,333
6,179,000 Texaco Inc., 5.5%, 7/28/98 6,153,512
6,385,000 Toys R Us, Inc., 5.48%, 7/6/98 6,380,140
8,000,000 Trans America Finance Corp., 5.53%, 8/10/98 7,950,844
4,990,000 Xerox Corp., 5.47%, 8/7/98 4,961,946
------------
Total Commercial Paper $206,899,470
------------
</TABLE>
6 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Cash Reserves Fund
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. Government Agency Obligations - 20.4%
$9,500,000 Federal Farm Credit Bank, 5.46%, 7/1/98 $ 9,500,000
9,500,000 Federal Farm Credit Bank, 5.51%, 8/3/98 9,500,000
9,500,000 Federal Farm Credit Bank, 5.50%, 9/1/98 9,500,000
9,500,000 Federal Farm Credit Bank, 5.53%, 10/1/98 9,500,000
5,000,000 Student Loan Finance Corp., 5.44%, 7/16/98* 5,000,000
5,000,000 Student Loan Finance Corp., 5.53%, 10/15/98* 5,000,000
5,000,000 Student Loan Finance Corp., 5.45%, 11/19/98* 5,000,000
------------
Total U.S. Government Agency Obligations $ 53,000,000
------------
TOTAL INVESTMENT IN SECURITIES (a) $259,899,470
------------
</TABLE>
* Security with weekly "put" feature, with resetting interest rate. Coupon
rate disclosed is as of June 30, 1998.
(a) At December 31, 1997, 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 6/30/98
<TABLE>
<S> <C>
ASSETS:
Investment in securities (cost $259,899,470) $259,899,470
Cash 1,109
Receivables -
Fund shares sold 13,197,995
Interest 473,309
Other 571
------------
Total assets $273,572,454
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LIABILITIES:
Payables -
Investment securities purchased $ 9,500,000
Fund shares repurchased 1,049,187
Dividends 64,267
Due to affiliates 287,417
Accrued expenses 28,940
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Total liabilities $ 10,929,811
------------
NET ASSETS:
Fund shares $262,918,706
Accumulated net realized loss on investments (276,063)
------------
Total net assets $262,642,643
============
NET ASSET VALUE PER SHARE:
(Offering and redemption price; unlimited number of shares authorized)
Class A (based on $227,058,344/227,334,406 shares) $ 1.00
============
Class B (based on $25,101,276/25,101,277 shares) $ 1.00
============
Class C (based on $10,483,023/10,483,023 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 Six Months Ended 6/30/98
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest $6,699,011
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EXPENSES:
Management fees $477,897
Transfer agent fees
Class A 187,176
Class B 15,432
Class C 3,803
Distribution fees
Class A 120,354
Class B 126,980
Class C 38,010
Accounting 27,916
Custodian fees 24,331
Registration fees 60,492
Professional fees 23,008
Printing 10,200
Fees and expenses of nonaffiliated trustees 5,920
Miscellaneous 16,582
--------
Total expenses $1,138,101
Less fees paid indirectly (8,874)
----------
Net expenses $1,129,227
----------
Net investment income $5,569,784
----------
Net increase in net assets resulting from operations $5,569,784
==========
</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 6/30/98 and the Year Ended 12/31/97
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
FROM OPERATIONS: 6/30/98 12/31/97
<S> <C> <C>
Net investment income $ 5,569,784 $ 10,356,069
------------ ------------
Net increase in net assets resulting from operations $ 5,569,784 $ 10,356,069
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.02 and $0.05 per share, respectively) $ (4,914,874) $ (9,482,518)
Class B ($0.02 and $0.04 per share, respectively) (498,717) (751,165)
Class C ($0.02 and $0.04 per share, respectively) (156,193) (122,386)
------------ ------------
Total distributions to shareholders $ (5,569,784) $(10,356,069)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $549,697,017 $683,897,126
Reinvestment of distributions 4,959,439 9,426,036
Cost of shares repurchased (541,069,188) (644,867,096)
------------ ------------
Net increase in net assets resulting from
fund share transactions $ 13,587,268 $ 48,456,066
------------ ------------
Net increase in net assets $ 13,587,268 $ 48,456,066
NET ASSETS:
Beginning of period 249,055,375 200,599,309
------------ ------------
End of period $262,642,643 $249,055,375
============ =============
CLASS A '98 Amount '97 Amount
Shares sold $439,074,241 $ 563,485,292
Reinvestment of distributions 4,392,863 8,642,216
Less shares repurchased (425,450,002) (552,432,199)
------------ ------------
Net increase $ 18,017,102 $ 19,695,309
============ =============
CLASS B
Shares sold $ 34,623,363 $ 68,418,680
Reinvestment of distributions 442,704 673,272
Less shares repurchased (42,441,959) (46,956,344)
------------ ------------
Net increase (decrease) $ (7,375,892) $ 22,135,608
============ =============
CLASS C
Shares sold $ 75,999,413 $ 51,993,154
Reinvestment of distributions 123,872 110,548
Less shares repurchased (73,177,227) (45,478,553)
------------ ------------
Net increase $ 2,946,058 $ 6,625,149
============ =============
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Cash Reserves Fund
FINANCIAL HIGHLIGHTS 6/30/98
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
6/30/98 12/31/97
<S> <C> <C>
CLASS A
Net asset value, beginning of period $ 1.00 $ 1.00
-------- --------
Increase 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* 2.37% 4.78%
Ratio of net expenses to average net assets 0.84%**+ 0.94%+
Ratio of net investment income to average net assets 4.75%**+ 4.62%+
Net assets, end of period (in thousands) $227,058 $209,041
Ratios assuming no waiver of management fees and
assumption of expenses by PMC and no reduction
for fees paid indirectly:
Net expenses 0.84%** 0.98%
Net investment income 4.75%** 4.58%
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction
for fees paid indirectly:
Net expenses 0.83%** 0.87%
Net investment income 4.76%** 4.69%
Pioneer Cash Reserves Fund
FINANCIAL HIGHLIGHTS 6/30/98
<CAPTION>
Year Ended Year Ended Year Ended Year Ended
12/31/96 12/31/95 12/31/94 12/31/93
<S> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------
Increase from investment operations:
Net investment income $ 0.05 $ 0.05 $ 0.03 $ 0.02
Distributions to shareholders:
Net investment income (0.05) (0.05) (0.03) (0.02)
-------- -------- -------- -------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== =======
Total return* 4.65% 5.17% 3.57% 2.47%
Ratio of net expenses to average net assets 0.91%+ 0.88%+ 0.50% 0.75%
Ratio of net investment income to average net assets 4.50%+ 5.00%+ 2.59% 2.44%
Net assets, end of period (in thousands) $189,346 $163,820 $173,195 $64,841
Ratios assuming no waiver of management fees and
assumption of expenses by PMC and no reduction
for fees paid indirectly:
Net expenses 1.05% 1.15% 0.65% 1.10%
Net investment income 4.36% 4.73% 2.44% 2.09%
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 4.56% 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.
**Annualized.
+Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Pioneer Cash Reserves Fund
FINANCIAL HIGHLIGHTS 6/30/98
<TABLE>
<CAPTION>
Six Months
Ended Year Ended Year Ended 3/31/95 to
6/30/98 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------
Increase from investment operations:
Net investment income $ 0.02 $ 0.04 $ 0.04 $ 0.03
Distributions to shareholders:
Net investment income (0.02) (0.04) (0.04) (0.03)
------- ------- ------- ------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======
Total return* 1.95% 3.89% 3.82% 3.28%
Ratio of net expenses to average net assets 1.66%**+ 1.75%+ 1.75%+ 1.66%**+
Ratio of net investment income to average
net assets 3.93%**+ 3.85%+ 3.66%+ 4.20%**+
Net assets, end of period (in thousands) $25,101 $32,477 $10,342 $7,574
Ratios assuming no waiver of management
fees by PMC and no reduction for fees
paid indirectly:
Net expenses 1.66%** 1.78% 1.88% 1.86%**
Net investment income 3.93%** 3.82% 3.53% 4.00%**
Ratios assuming waiver of management fees
by PMC and reduction for fees paid indirectly:
Net expenses 1.65%** 1.70% 1.67% 1.61%**
Net investment income 3.94%** 3.90% 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 6/30/98
<TABLE>
<CAPTION>
Six Months
Ended Year Ended 1/31/96 to
6/30/98 12/31/97 12/31/96
<S> <C> <C> <C>
CLASS C
Net asset value, beginning of period $ 1.00 $ 1.00 $1.00
------- ------ -----
Increase from investment operations:
Net investment income $ 0.02 $ 0.04 $0.03
Distributions to shareholders:
Net investment income (0.02) (0.04) (0.03)
------- ------ -----
Net asset value, end of period $ 1.00 $ 1.00 $1.00
======= ====== =====
Total return* 1.98% 3.96% 3.35%
Ratio of net expenses to average net assets 1.61%**+ 1.79%+ 1.84%**+
Ratio of net investment income to average net
assets 3.97%**+ 3.84%+ 3.61%**+
Net assets, end of period (in thousands) $10,483 $7,537 $ 912
Ratios assuming no waiver of management fees
by PMC and no reduction for fees paid indirectly:
Net expenses 1.61%** 1.81% 1.95%**
Net investment income 3.97%** 3.82% 3.50%**
Ratios assuming waiver of management fees by PMC
and reduction for fees paid indirectly
Net expenses 1.58%** 1.62% 1.77%**
Net investment income 4.00%** 4.01% 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 6/30/98
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 has 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.
14
<PAGE>
Pioneer Cash Reserves Fund
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 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.
15
<PAGE>
Pioneer Cash Reserves Fund
NOTES TO FINANCIAL STATEMENTS 6/30/98 (continued)
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 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.
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, 1998, $91,613 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 $106,790 in transfer agent fees payable to PSC at June 30, 1998.
16
<PAGE>
Pioneer Cash Reserves Fund
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), its principal underwriter and an indirect subsidiary of
PGI, 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 $89,014 in distribution fees
payable to PFD at June 30, 1998.
In addition, redemptions of certain classes of shares may be subject to a
contingent deferred sales charge (CDSC). 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 CDSCs are paid to PFD. For the six months ended June
30, 1998, CDSCs in the amount of $67,829 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 six months ended June 30, 1998,
the Fund's expenses were reduced by $8,874 under such arrangements.
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<PAGE>
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, 1998, 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, 1998 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, 1998, 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 7, 1998
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<PAGE>
Pioneer Cash Reserves Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
<TABLE>
<CAPTION>
Trustees Officers
<S> <C>
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham Sherman B. Russ, Vice President
John W. Kendrick William H. Keough, Treasurer
Marguerite A. Piret Joseph P. Barri, Secretary
David D. Tripple
Stephen K. West
John Winthrop
</TABLE>
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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<PAGE>
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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<PAGE>
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds you
wish to invest in. You choose the amounts and dates for Pioneer to sell shares
of your original fund and use the proceeds to buy shares of the other funds you
have chosen. Over time, your investment will be shifted out of the original
fund. (Automatic Exchange is available for originating accounts with a balance
of $5,000 or more.)
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 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 for:
<TABLE>
<S> <C>
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
</TABLE>
This report must be preceded or accompanied by a current Fund prospectus.
[PIONEER LOGO]
Pioneer Funds Distributor, Inc.
60 State Street
0898 - 5426
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [recycle symbol] Printed on Recycled Paper
