[PIONEER LOGO]
Pioneer
Cash Reserves
Fund
ANNUAL REPORT 12/31/98
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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 12/31/98
Dear Shareowner,
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I am pleased to introduce this annual report for Pioneer Cash Reserves Fund,
covering the 12 months ended December 31, 1998. On behalf of your investment
team, I thank you for your interest.
We all are aware of the volatility that the United States stock market, and
markets around the globe, experienced in 1998. The bond market and Pioneer Cash
Reserves Fund benefited from this volatility. Investors diversified their
portfolio away from stocks, turning to high-quality, short-term securities for
their reputation as relatively "safe" investments. The uncertain and erratic
behavior of the financial markets offers clear incentives to invest in a
variety of categories and maintain a well-balanced portfolio. By allocating
assets to more than one investment type, investors are not as dramatically
affected when financial markets experience the inevitable changes with which we
have all become familiar.
While a low volatility, long-term investment is important for a portfolio,
money market funds also have the potential to provide for short-term needs.
But, remember, especially at volatile times like these, your investment
professional can be a valuable resource to help you sort through your choices
and plot an effective course to achieve your near term and more distant
financial goals.
Please read on to learn more about how your Fund is being managed. If you have
questions about Pioneer Cash Reserves Fund, please call your investment
professional. You can contact Pioneer at 1-800-225-6292, or visit our web site
at www.pioneerfunds.com.
Respectfully,
/s/ John F. Cogan, Jr.
- ----------------------
John F. Cogan, Jr.
Chairman and President
1
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Pioneer Cash Reserves Fund
PORTFOLIO SUMMARY 12/31/98
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]
<TABLE>
<CAPTION>
U.S. Government Agency
Commercial Paper Obligations Repurchase Agreement
<S> <C> <C>
80% 9% 11%
</TABLE>
[END PIE CHART]
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. Credit Suisse First Boston Group, Inc., 4.75%, 1/4/99 10.85%
2. Norwest Financial Inc., 5.23%, 1/29/99 4.10
3. National Rural Utilities Corp., 5.11%, 1/25/99 3.91
4. Pepsico, Inc., 5.2%, 1/29/99 3.71
5. Walt Disney Co., 5.1%, 1/14/99 3.50
6. American Express Credit Corp., 5.05%, 1/22/99 3.34
7. E.I. du Pont de Nemours & Co., 5.01%, 2/11/99 3.28
8. Transamerica Finance Corp., 5.11%, 2/5/99 3.14
9. Prudential Funding Corp., 5.33%, 1/6/99 3.13
10. Xerox Corp., 5.2%, 1/11/99 3.12
</TABLE>
Fund holdings will vary for other periods.
2
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Pioneer Cash Reserves Fund
PERFORMANCE UPDATE 12/31/98
S h a r e P r i c e s
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<TABLE>
<CAPTION>
Net Asset Value per Share 12/31/98 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>
D i s t r i b u t i o n s
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<TABLE>
<CAPTION>
Per Share Income Short-Term Long-Term
(12/31/97 - 12/31/98) Dividends Capital Gains Capital Gains
<S> <C> <C> <C>
Class A Shares $0.047 - -
Class B Shares 0.039 - -
Class C Shares 0.040 - -
</TABLE>
Y i e l d s
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<TABLE>
<CAPTION>
(Annualized) 7-Day 7-Day Effective*
<S> <C> <C>
Class A Shares 4.43% 4.53%
Class B Shares 3.60 3.67
Class C Shares 3.85 3.92
</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 12/31/98
In the fiscal year ended December 31, 1998, Pioneer Cash Reserves Fund met its
investment objective of providing high current income and preservation of
capital. The Fund seeks to maintain 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 have the
highest rating by the two leading nationally recognized securities rating
organizations, Standard & Poor's Ratings Group (A1) and Moody's Investor
Services (P1). (Ratings apply to underlying securities, not Fund shares.)
In the following discussion, Sherman B. Russ offers a detailed account of the
investment environment and strategies that affected your Fund's performance
over the year. An investment professional for more than 20 years, Mr. Russ,
along with Kenneth J. Taubes, oversees the team of portfolio managers and
analysts responsible for the Fund's day-to-day management. Mr. Taubes joined us
in September, bringing with him 13 years of investment experience.
Q: How did the Fund perform?
A: This year, the Fund was again successful in achieving a high level of
income, one of its objectives. The seven-day effective yield for Class A
Shares was 4.53% on December 31. For the year, the Fund's Class A Shares
returned 4.84% at net asset value. That equaled the 4.84% average for
taxable money market funds, according to Lipper, Inc., an independent
company that ranks mutual fund performance. Interestingly, a high volume of
investors sent money into the Fund, most likely in an attempt to avoid the
risks of the stock market. The Fund grew by $59 million and 3,207
shareowner accounts over the year.
Q: What happened with short-term interest rates over the year?
A: During the first six months, they fluctuated only slightly. The one-year
Treasury bill's yield peaked at 5.49% on April 29, up from 5.08% on January
9. Later in the year, in response to the continuing global financial
crisis, the Federal Reserve played the role of the world's top banker,
dropping the federal funds and discount rates to add
4
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Pioneer Cash Reserves Fund
liquidity to world markets. Three cuts of 25 basis points (0.25%) each,
brought the federal funds rate down to 4.75%. These moves were the Fed's
first interest rate reductions in almost three years. One-year Treasurys
hit a low yield of 3.86% on October 16. Now we expect interest rates to
remain fairly stable until at least the middle of 1999.
Q: What strategies did you use in managing the Fund?
A: When selecting securities, we always included only those money market
instruments we considered to be good values. We also adjusted the maturity
of the Fund's securities, extending when interest rates were lower and
shortening when rates rose. As always, we worked to keep the portfolio
liquid. On average, the maturity of the portfolio ranged from 17 to 35
days. Currently, the Fund's average maturity is 25 days.
Q: What is your outlook for the year ahead?
A: We think the recent record-setting levels of the U.S. stock market and the
"first quarter phenomenon" - higher spending and production - will pass,
and economic growth will return to a more conservative pace. Inflation is
low, a circumstance that bodes well for the bond market. These all indicate
to us that the Fed will probably put any more rate changes on hold for the
near term, and well into 1999. Money market instruments and bonds should
continue to offer the potential for solid rates of return after inflation,
making them both appealing investment choices.
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 semiannual report in six months.
5
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Pioneer Cash Reserves Fund
SCHEDULE OF INVESTMENTS 12/31/98
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 100.0%
Commercial Paper - 80.2%
$8,000,000 American General Finance Corp., 5.05%, 2/4/99 $ 7,965,211
10,699,000 American Express Credit Corp., 5.05%, 1/22/99 10,671,985
8,980,000 BancOne Corp., 5.04%, 1/15/99 8,966,171
9,110,000 Chevron Oil Corp., 6.0%, 1/7/99 9,105,445
7,508,000 Citigroup Inc., 5.07%, 2/5/99 7,474,164
9,962,000 The Coca-Cola Co., 5.04%, 1/28/99 9,928,528
10,000,000 Deere (John) Capital Corp., 5.13%, 1/12/99 9,988,600
10,555,000 E.I. du Pont de Nemours & Co., 5.01%, 2/11/99 10,499,182
8,000,000 Ford Motor Credit Corp., 5.12%,1/22/99 7,979,520
7,500,000 Gannett Co., 4.92%, 1/8/99 7,495,900
8,335,000 General Electric Capital Corp., 5.03%, 1/21/99 8,315,202
6,853,000 General Motors Acceptance Corp., 5.07%, 2/18/99 6,809,569
9,889,000 Household Finance Corp., 5.03%, 1/5/99 9,887,618
9,168,000 IBM Corp., 5.03%, 1/14/99 9,155,190
8,595,000 Motorola Inc., 5.0%, 3/23/99 8,501,888
12,550,000 National Rural Utilities Corp., 5.11%, 1/25/99 12,512,590
13,160,000 Norwest Financial Inc., 5.23%, 1/29/99 13,112,202
8,260,000 Paccar Financial Corp., 5.0%, 2/25/99 8,200,344
5,520,000 Penney (J.C.) Co., 5.15%, 1/15/99 5,511,314
11,910,000 Pepsico, Inc., 5.2%, 1/29/99 11,866,992
5,000,000 Proctor & Gamble Co., 5.02%, 1/19/99 4,989,542
10,000,000 Prudential Funding Corp., 5.33%, 1/6/99 9,997,039
5,885,000 Republic New York Corp., 5.02%, 3/3/99 5,837,403
8,000,000 Schering-Plough Corp., 5.17%, 1/20/99 7,981,618
10,100,000 Transamerica Finance Corp., 5.11%, 2/5/99 10,054,124
6,600,000 Virginia Electric & Power Co., 5.12%, 1/7/99 6,597,184
6,075,000 Virginia Electric & Power Co., 5.3%, 1/13/99 6,066,951
11,210,000 Walt Disney Co., 5.1%, 1/14/99 11,194,119
10,000,000 Xerox Corp., 5.2%, 1/11/99 9,989,889
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Total Commercial Paper $256,655,484
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U.S. Government Agency Obligations - 8.9%
$9,500,000 Federal Farm Credit Bank, 5.32%, 1/4/99 $ 9,500,000
9,500,000 Federal Farm Credit Bank, 4.9%, 3/1/99 9,500,000
9,500,000 Federal Farm Credit Bank, 4.87%, 4/1/99 9,500,000
------------
Total U.S. Government Agency Obligations $ 28,500,000
------------
</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>
Repurchase Agreement - 10.9%
$34,700,000 Credit Suisse First Boston Group, Inc., dated
12/31/98, 4.75%, repurchase price of
$34,700,000 plus accrued interest on 1/4/99,
collateralized by $34,445,000 U.S. Treasury
Notes, 5.5%, 2/29/00 $ 34,700,000
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Total Repurchase Agreement $ 34,700,000
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TOTAL INVESTMENT IN SECURITIES (a) $319,855,484
============
</TABLE>
(a) At December 31, 1998, 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 12/31/98
<TABLE>
<S> <C>
ASSETS:
Investment in securities (cost $319,855,484) $319,855,484
Cash 96,258
Receivables -
Fund shares sold 6,397,661
Interest 193,131
Other 3,933
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Total assets $326,546,467
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LIABILITIES:
Payables -
Investment securities purchased $ 9,500,000
Fund shares repurchased 8,502,365
Dividends 66,154
Due to affiliates 192,612
Accrued expenses 13,000
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Total liabilities $ 18,274,131
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NET ASSETS:
Fund shares $308,548,399
Accumulated net realized loss on investments (276,063)
------------
Total net assets $308,272,336
============
NET ASSET VALUE PER SHARE:
(Offering and redemption price; unlimited number of
shares authorized)
Class A (based on $250,317,534/250,593,570 shares) $ 1.00
============
Class B (based on $39,638,833/39,638,857 shares) $ 1.00
============
Class C (based on $18,315,969/18,315,972 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 Year Ended 12/31/98
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Interest $15,457,640
-----------
EXPENSES:
Management fees $1,112,593
Transfer agent fees
Class A 535,436
Class B 56,889
Class C 21,887
Distribution fees
Class A 285,318
Class B 367,184
Class C 146,562
Accounting 74,704
Custodian fees 52,869
Registration fees 123,592
Professional fees 49,185
Printing 25,717
Fees and expenses of nonaffiliated trustees 20,933
Miscellaneous 13,867
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Total expenses $ 2,886,736
Less fees paid indirectly (323,137)
-----------
Net expenses $ 2,563,599
-----------
Net investment income $12,894,041
-----------
Net increase in net assets resulting from operations $12,894,041
===========
</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 Years Ended 12/31/98 and 12/31/97
<TABLE>
<CAPTION>
Year Ended Year Ended
FROM OPERATIONS: 12/31/98 12/31/97
<S> <C> <C>
Net investment income $ 12,894,041 $ 10,356,069
---------------- ---------------
Net increase in net assets resulting from operations $ 12,894,041 $ 10,356,069
---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.05 and $0.05 per share, respectively) $ (10,879,125) $ (9,482,518)
Class B ($0.04 and $0.04 per share, respectively) (1,418,785) (751,165)
Class C ($0.04 and $0.04 per share, respectively) (596,131) (122,386)
---------------- ---------------
Total distributions to shareholders $ (12,894,041) $ (10,356,069)
---------------- ---------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 1,568,278,082 $ 683,897,126
Reinvestment of distributions 11,406,413 9,426,036
Cost of shares repurchased (1,520,467,534) (644,867,096)
---------------- ---------------
Net increase in net assets resulting from
fund share transactions $ 59,216,961 $ 48,456,066
---------------- ---------------
Net increase in net assets $ 59,216,961 $ 48,456,066
---------------- ---------------
NET ASSETS:
Beginning of year 249,055,375 200,599,309
---------------- ---------------
End of year $ 308,272,336 $ 249,055,375
================ ===============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
CLASS A '98 Amount '97 Amount
Shares sold $ 1,158,431,336 $563,485,292
Reinvestment of distributions 9,745,095 8,642,216
Less shares repurchased (1,126,900,165) (552,432,199)
---------------- -------------
Net increase $ 41,276,266 $ 19,695,309
================ =============
CLASS B
Shares sold $ 134,241,917 $ 68,418,680
Reinvestment of distributions 1,245,114 673,272
Less shares repurchased (128,325,343) (46,956,344)
---------------- -------------
Net increase $ 7,161,688 $ 22,135,608
================ =============
CLASS C
Shares sold $ 275,604,829 $ 51,993,154
Reinvestment of distributions 416,204 110,548
Less shares repurchased (265,242,026) (45,478,553)
---------------- -------------
Net increase $ 10,779,007 $ 6,625,149
================ =============
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Cash Reserves Fund
FINANCIAL HIGHLIGHTS 12/31/98
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended Year Ended
12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
<S> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- --------
Increase from investment operations:
Net investment income $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.03
Distributions to shareholders:
Net investment income (0.05) (0.05) (0.05) (0.05) (0.03)
------- ------- ------- ------- --------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ========
Total return* 4.84% 4.78% 4.65% 5.17% 3.57%
Ratio of net expenses to average net assets 0.88%+ 0.94%+ 0.91%+ 0.88%+ 0.50%
Ratio of net investment income to average net assets 4.61%+ 4.62%+ 4.50%+ 5.00%+ 2.59%
Net assets, end of year (in thousands) $250,318 $209,041 $189,346 $163,820 $173,195
Ratios assuming no waiver of management fees and assumption of
expenses by PIM and no reduction for fees paid indirectly:
Net expenses 0.88% 0.98% 1.05% 1.15% 0.65%
Net investment income 4.61% 4.58% 4.36% 4.73% 2.44%
Ratios assuming waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 0.77% 0.87% 0.85% 0.82% -
Net investment income 4.72% 4.69% 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. 11
<PAGE>
Pioneer Cash Reserves Fund
FINANCIAL HIGHLIGHTS 12/31/98
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended 3/31/95 to
12/31/98 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 $ 0.04 $ 0.04 $ 0.04 $ 0.03
Distributions to shareholders:
Net investment income (0.04) (0.04) (0.04) (0.03)
------- ------- ------- ------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======
Total return* 3.96% 3.89% 3.82% 3.28%
Ratio of net expenses to average
net assets 1.67%+ 1.75%+ 1.75%+ 1.66%**+
Ratio of net investment income to
average net assets 3.79%+ 3.85%+ 3.66%+ 4.20%**+
Net assets, end of period
(in thousands) $39,639 $32,477 $10,342 $ 7,574
Ratios assuming no waiver of
management fees by PIM and no
reduction for fees paid indirectly:
Net expenses 1.67% 1.78% 1.88% 1.86%**
Net investment income 3.79% 3.82% 3.53% 4.00%**
Ratios assuming waiver of
management fees by PIM and
reduction for fees paid indirectly:
Net expenses 1.60% 1.70% 1.67% 1.61%**
Net investment income 3.86% 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 12/31/98
<TABLE>
<CAPTION>
Year Ended Year Ended 1/31/96 to
12/31/98 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 $ 0.04 $ 0.04 $ 0.03
Distributions to shareholders:
Net investment income (0.04) (0.04) (0.03)
------- ------- ------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
======= ======= ======
Total return* 4.12% 3.96% 3.35%
Ratio of net expenses to average net assets 1.66%+ 1.79%+ 1.84%**+
Ratio of net investment income to average net
assets 3.79%+ 3.84%+ 3.61%**+
Net assets, end of period (in thousands) $18,316 $ 7,537 $ 912
Ratios assuming no waiver of management fees by
PIM and no reduction for fees paid indirectly:
Net expenses 1.66% 1.81% 1.95%**
Net investment income 3.79% 3.82% 3.50%**
Ratios assuming waiver of management fees by PIM
and reduction for fees paid indirectly
Net expenses 1.38% 1.62% 1.77%**
Net investment income 4.07% 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 12/31/98
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 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.
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 Corp. (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 subcustodi-
15
<PAGE>
Pioneer Cash Reserves Fund
NOTES TO FINANCIAL STATEMENTS 12/31/98 (continued)
ans. The Fund's investment adviser, Pioneer Investment Management, Inc. (PIM)
(formerly Pioneering Management Corp.), is responsible for determining that
the value of the collateral remains at least equal to the repurchase price.
2. Management Agreement
PIM 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 and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund. At December 31, 1998, $116,735 was payable to
PIM related to management fees, administrative 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 $1,453 in transfer agent fees payable to PSC at December 31,
1998.
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 $74,424 in distribution
fees payable to PFD at December 31, 1998.
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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
CDSCs are paid to PFD. For the year ended December 31, 1998, CDSCs in the
amount of $202,798 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, 1998,
the Fund's expenses were reduced by $323,137 under such arrangements.
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Pioneer Cash Reserves Fund
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareowners 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, 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 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, 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 December 31, 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
February 12, 1999
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Pioneer Cash Reserves Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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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 John A. Boynton, Treasurer
Marguerite A. Piret Joseph P. Barri, Secretary
David D. Tripple
Stephen K. West
John Winthrop
</TABLE>
Investment Adviser
Pioneer Investment Management, Inc.
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 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:
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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<S> <C> <C>
[PIONEER LOGO] Pioneer Investment Management, Inc.
60 State Street 0299 - 6029
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [Recycle Symbol] Printed on Recycled Paper
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