<PAGE>
[LOGO]
PIONEER
CASH RESERVES
FUND
SEMIANNUAL REPORT 6/30/99
<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>
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PIONEER CASH RESERVES FUND
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LETTER FROM THE CHAIRMAN 6/30/99
DEAR SHAREOWNER,
- ---------------------------------------------------------------
I am pleased to introduce this semiannual report for Pioneer Cash Reserves Fund,
covering the six months ended June 30, 1999. On behalf of your investment team,
I thank you for your interest in the Fund and Pioneer.
The United States' economy has been flourishing for much of the 1990s. The
decision by the Federal Reserve to raise short-term interest rates on June 30
was a signal to many that the Fed was making a conscious move to slow the rapid
growth. Although it appears that economic conditions will continue to be
favorable, one can never be certain what the future will hold. That is why it is
important to construct a diversified portfolio that is able to weather the
ever-present ups and downs in the market. A conservative fund such as Pioneer
Cash Reserves Fund is a good way to balance out your investment portfolio by
adding a component emphasizing stability and income. A money market fund can add
liquidity and a measure of safety to your portfolio during periods of volatility
or as you near your financial goals. We always recommend that you work with your
investment professional to determine the right blend of investments for your
unique financial situation.
I encourage you to read on to learn more about your Fund's management and the
factors that affected performance, particularly the Portfolio Management
Discussion with Sherman Russ. If you have questions, please contact your
investment professional, or Pioneer at 1-800-225-6292. You can also visit our
website at www.pioneerfunds.com.
Respectfully,
[SIG]
John F. Cogan, Jr.
Chairman and President
1
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PIONEER CASH RESERVES FUND
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PORTFOLIO SUMMARY 6/30/99
PORTFOLIO DIVERSIFICATION
- ---------------------------------------------------------------
(As a percentage of total investment portfolio)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 79%
U.S. Government Agency Obligations 12%
Repurchase Agreement 9%
</TABLE>
10 LARGEST HOLDINGS
- ---------------------------------------------------------------
(As a percentage of total investment portfolio)
<TABLE>
<C> <S> <C>
1. Credit Suisse First Boston Group, Inc., 4.7%, 7/1/99 9.12%
2. Chevron USA, Inc., 5.12%, 8/18/99 4.13
3. Norwest Financial Inc., 4.79%, 7/13/99 3.72
4. Motorola Inc., 4.77%, 7/2/99 3.60
5. J.P. Morgan & Co. Inc., 4.77%, 9/15/99 3.41
6. Prudential Funding Corp., 4.92%, 8/23/99 3.40
7. Minnesota Mining Co., 4.95%, 8/25/99 3.22
8. American General Finance Corp., 4.96%, 9/8/99 3.18
9. Ford Motor Credit Corp., 4.79%, 7/12/99 3.14
10. American Express Credit Corp., 4.78%, 8/24/99 3.13
</TABLE>
Fund holdings will vary for other periods.
2
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PIONEER CASH RESERVES FUND
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PERFORMANCE UPDATE 6/30/99
SHARE PRICES
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE 6/30/99 12/31/98
<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
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
PER SHARE INCOME SHORT-TERM LONG-TERM
(12/31/98-6/30/99) DIVIDENDS CAPITAL GAINS CAPITAL GAINS
<S> <C> <C> <C>
Class A Shares $0.019 - -
Class B Shares 0.015 - -
Class C Shares 0.016 - -
</TABLE>
YIELDS
- ---------------------------------------------------------------
<TABLE>
<CAPTION>
7-DAY
SIMPLE 7-DAY EFFECTIVE*
<S> <C> <C>
Class A Shares 3.93% 4.00%
Class B Shares 3.02 3.07
Class C Shares 3.16 3.21
</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 Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund.
3
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PIONEER CASH RESERVES FUND
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/99
The first half of Pioneer Cash Reserves Fund's fiscal year ended on June 30,
1999. For the six-month period, the Fund provided 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.)
In the discussion below, your Fund's portfolio manager Sherman Russ talks about
the investment environment and strategies that affected the Fund's performance
over the past six months. Mr. Russ has been an investment professional for more
than 20 years and leads Pioneer's fixed-income team.
Q: HOW DID THE FUND PERFORM THIS YEAR?
A: Reflecting the shifting interest rates that prevailed over the period, the
seven-day effective yield for Class A shares was 4.00% on June 30, compared
to 4.53% six months ago. For the six months, the Fund's Class A shares
generated a total return of 1.94%, Class B shares 1.54% and Class C shares
1.57%. In comparison, the average money market fund returned 2.09%, according
to Lipper, Inc. (Lipper is an independent research firm that tracks mutual
fund performance.)
Q: ON JUNE 30, THE FEDERAL RESERVE RAISED SHORT-TERM INTEREST RATES 0.25
PERCENTAGE POINTS. WHAT EFFECT WILL THIS HAVE ON THE ECONOMY AND PIONEER
CASH RESERVES FUND?
A: No one was very surprised when the Federal Reserve announced that it would
raise the federal funds rate, the rate banks charge one another for overnight
loans. The increase was the first in over two years and was prompted by the
need to temper the rapidly growing economy. Last fall, the Fed moved in the
opposite direction, cutting short-term interest rates a total of 0.75
percentage points in response to the global economic crisis. Typically, an
increase in the federal funds rate slows economic
4
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PIONEER CASH RESERVES FUND
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growth because it leads to higher borrowing costs for both consumers and
corporations.
The increase should be positive for the Fund's shareowners. Your Fund
holds fixed-income instruments that have maturities of one year or
less, typically six months. In the aggregate the portfolio's average
maturity must be 90 days or less. When these short-term instruments mature,
we have the opportunity to take advantage of the rise in rates by replacing
those holdings that have reached maturity with higher-yielding instruments.
Q: WHAT STRATEGIES DID YOU USE IN MANAGING THE FUND?
A: The Fund is conservative, but one of its investment objectives is to provide
income for shareowners. Over the period, we adjusted the maturity of the
Fund's securities to make the most of prevailing interest rates. Typically,
the portfolio's average maturity falls between 30 and 50 days. As always, we
also worked to keep the portfolio liquid. At the end of the six month period,
the Fund's average maturity was 42 days, slightly shorter than the 50 days it
was in April, reflecting our strategy to be ready to lock in higher rates.
Q: WHAT IS YOUR OUTLOOK FOR THE REMAINDER OF THE YEAR?
A: The interest rate increase on June 30 was much anticipated, although there
was some surprise at the Federal Reserve's statement that it was adopting a
neutral bias, suggesting it does not see a need to raise rates again in the
very near future. Even so, we would not be shocked to see another increase in
rates before the end of the year if the economy continues to grow at a heated
pace.
Going forward, 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
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PIONEER CASH RESERVES FUND
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SCHEDULE OF INVESTMENTS 6/30/99
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
INVESTMENT IN SECURITIES - 100.0%
COMMERCIAL PAPER - 78.9%
$ 6,335,000 Abbott Laboratories, 4.92%, 7/20/99 $ 6,318,550
10,497,000 American Express Credit Corp., 4.78%, 8/24/99 10,421,737
4,426,000 American Express Credit Corp., 4.8%, 8/24/99 4,394,133
10,720,000 American General Finance Corp., 4.96%, 9/8/99 10,618,089
5,760,000 Associates First Capital Corp., 5.08%, 8/18/99 5,720,986
10,135,000 BellSouth Capital Funding Corp., 4.96%, 9/2/99 10,047,028
13,900,000 Chevron USA, Inc., 5.12%, 8/18/99 13,781,387
8,817,000 The Coca Cola Co., 4.93%, 8/17/99 8,760,250
6,709,000 Colgate-Palmolive Co., 4.83%, 7/1/99 6,709,000
7,317,000 Commercial Credit Co., 4.84%, 7/15/99 7,303,228
6,520,000 Deere (John) Capital Corp., 4.79%, 8/12/99 6,483,564
8,445,000 E.I. du Pont de Nemours & Co., 4.86%, 8/20/99 8,387,996
10,480,000 Ford Motor Credit Corp., 4.79%, 7/12/99 10,464,661
10,310,000 Gannett Co., 4.92%, 7/8/99 10,280,711
8,763,000 General Electric Capital Corp., 4.8%, 9/20/99 8,668,360
8,424,000 General Motors Acceptance Corp., 4.87%, 8/26/99 8,360,184
9,540,000 Hershey Foods Corp., 4.77%, 7/30/99 9,503,343
10,000,000 Household Finance Corp., 4.78%, 7/16/99 9,980,083
6,458,000 IBM Corp., 4.8%, 8/16/99 6,418,391
11,480,000 J.P. Morgan & Co. Inc., 4.77%, 9/15/99 11,364,396
10,815,000 Minnesota Mining Co., 4.95%, 8/25/99 10,733,212
12,000,000 Motorola Inc., 4.77%, 7/2/99 11,998,410
8,400,000 National Rural Utilities Corp., 4.78%, 8/27/99 8,336,426
12,423,000 Norwest Financial Inc., 4.79%, 7/13/99 12,403,165
5,195,000 Paccar Financial Corp., 4.77%, 7/23/99 5,179,857
4,155,000 Pfizer, Inc., 4.78%, 7/14/99 4,147,827
11,405,000 Prudential Funding Corp., 4.92%, 8/23/99 11,322,389
7,685,000 Shell Oil Co., 4.92%, 7/19/99 7,666,094
9,055,000 Walt Disney Co., 4.74%, 10/12/99 8,932,199
8,400,000 Warner-Lambert Co., 5.05%, 7/30/99 8,365,828
------------
TOTAL COMMERCIAL PAPER $263,071,484
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.0%
10,000,000 Federal Farm Credit Bank, 4.77%, 7/1/99 $ 10,000,000
10,000,000 Federal Farm Credit Bank, 4.875%, 9/1/99 10,000,000
</TABLE>
6 The accompanying notes are an integral part of these financial statements.
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PIONEER CASH RESERVES FUND
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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
$10,000,000 Federal Farm Credit Bank, 5.06%, 10/1/99 $ 10,000,000
10,000,000 Federal Farm Credit Bank, 4.77%, 11/1/99 10,000,000
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS $ 40,000,000
------------
REPURCHASE AGREEMENT - 9.1%
30,400,000 Credit Suisse First Boston Group, Inc., 4.7%, dated
6/30/99, repurchase price of $30,400,000 plus accrued
interest on 7/1/99, collateralized by $25,295,000 U.S.
Treasury Bonds, 11.125%, 8/15/03 $ 30,400,000
------------
TOTAL REPURCHASE AGREEMENT $ 30,400,000
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TOTAL INVESTMENT IN SECURITIES(a) $333,471,484
------------
</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
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PIONEER CASH RESERVES FUND
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BALANCE SHEET 6/30/99
<TABLE>
<S> <C>
ASSETS:
Investment in securities (cost $333,471,484) $333,471,484
Cash 50,615
Receivables -
Fund shares sold 2,597,069
Interest 241,363
Other 822
------------
Total assets $336,361,353
------------
LIABILITIES:
Payables -
Investment securities purchased $ 10,000,000
Fund shares repurchased 16,069,217
Dividends 111,572
Due to affiliates 209,182
Accrued expenses 20,813
------------
Total liabilities $ 26,410,784
------------
NET ASSETS:
Fund shares $310,226,632
Accumulated net realized loss on investments (276,063)
------------
Total net assets $309,950,569
------------
NET ASSET VALUE PER SHARE:
(Offering and redemption price; unlimited number of shares authorized)
Class A (based on $247,109,777/247,385,840 shares) $ 1.00
------------
Class B (based on $41,598,721/41,598,721 shares) $ 1.00
------------
Class C (based on $21,242,071/21,242,071 shares) $ 1.00
------------
</TABLE>
8 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER CASH RESERVES FUND
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STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED 6/30/99
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest $7,944,943
----------
EXPENSES:
Management fees $648,471
Transfer agent fees
Class A 364,948
Class B 52,911
Class C 17,886
Distribution fees
Class A 182,897
Class B 235,101
Class C 98,722
Administrative fees 40,261
Custodian fees 28,060
Registration fees 150,551
Professional fees 22,059
Printing 11,764
Fees and expenses of nonaffiliated trustees 14,174
Miscellaneous 3,986
--------
Total expenses $1,871,791
Less fees paid indirectly (77,814)
----------
Net expenses $1,793,977
----------
Net investment income $6,150,966
----------
Net increase in net assets resulting from operations $6,150,966
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
PIONEER CASH RESERVES FUND
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STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED 6/30/99 AND THE YEAR ENDED 12/31/98
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
FROM OPERATIONS: 6/30/99 12/31/98
<S> <C> <C>
Net investment income $ 6,150,966 $ 12,894,041
----------------- ----------------
Net increase in net assets resulting from operations $ 6,150,966 $ 12,894,041
----------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.02 and $0.05 per share, respectively) $ (5,093,318) $ (10,879,125)
Class B ($0.02 and $0.04 per share, respectively) (736,595) (1,418,785)
Class C ($0.02 and $0.04 per share, respectively) (321,053) (596,131)
----------------- ----------------
Total distributions to shareholders $ (6,150,966) $ (12,894,041)
----------------- ----------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 1,420,704,762 $ 1,568,278,082
Reinvestment of distributions 5,375,449 11,406,413
Cost of shares repurchased (1,424,401,978) (1,520,467,534)
----------------- ----------------
Net increase in net assets resulting from fund share
transactions $ 1,678,233 $ 59,216,961
----------------- ----------------
Net increase in net assets $ 1,678,233 $ 59,216,961
NET ASSETS:
Beginning of period 308,272,336 249,055,375
----------------- ----------------
End of period $ 309,950,569 $ 308,272,336
----------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
CLASS A '99 AMOUNT '98 AMOUNT
<S> <C> <C>
Shares sold $ 1,116,715,558 $ 1,158,431,336
Reinvestment of distributions 4,492,063 9,745,095
Less shares repurchased (1,124,415,351) (1,126,900,165)
--------------- ---------------
Net increase (decrease) $ (3,207,730) $ 41,276,266
--------------- ---------------
CLASS B
Shares sold $ 77,296,892 $ 134,241,917
Reinvestment of distributions 630,666 1,245,114
Less shares repurchased (75,967,694) (128,325,343)
--------------- ---------------
Net increase $ 1,959,864 $ 7,161,688
--------------- ---------------
CLASS C
Shares sold $ 226,692,312 $ 275,604,829
Reinvestment of distributions 252,720 416,204
Less shares repurchased (224,018,933) (265,242,026)
--------------- ---------------
Net increase $ 2,926,099 $ 10,779,007
--------------- ---------------
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
PIONEER CASH RESERVES FUND
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FINANCIAL HIGHLIGHTS 6/30/99
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/99 12/31/98 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Increase from investment operations:
Net investment income $ 0.02 $ 0.05 $ 0.05 $ 0.05 $ 0.05
Distributions to shareholders:
Net investment income (0.02) (0.05) (0.05) (0.05) (0.05)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Total return* 1.94% 4.84% 4.78% 4.65% 5.17%
Ratio of net expenses to average net assets 0.98%**+ 0.88%+ 0.94%+ 0.91%+ 0.88%+
Ratio of net investment income to average net assets 3.85%**+ 4.61%+ 4.62%+ 4.50%+ 5.00%+
Net assets, end of period (in thousands) $247,110 $250,318 $209,041 $189,346 $163,820
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid
indirectly:
Net expenses 0.98%** 0.88% 0.98% 1.05% 1.15%
Net investment income 3.85%** 4.61% 4.58% 4.36% 4.73%
Ratios assuming waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses 0.93%** 0.77% 0.87% 0.85% 0.82%
Net investment income 3.90%** 4.72% 4.69% 4.56% 5.06%
<CAPTION>
YEAR ENDED
12/31/94
<S> <C>
CLASS A
Net asset value, beginning of period $ 1.00
-----------
Increase from investment operations:
Net investment income $ 0.03
Distributions to shareholders:
Net investment income (0.03)
-----------
Net asset value, end of period $ 1.00
-----------
Total return* 3.57%
Ratio of net expenses to average net assets 0.50%
Ratio of net investment income to average net assets 2.59%
Net assets, end of period (in thousands) $173,195
Ratios assuming no waiver of management fees and assumption
of expenses by PIM and no reduction for fees paid
indirectly:
Net expenses 0.65%
Net investment income 2.44%
Ratios assuming waiver of management fees and assumption of
expenses by PIM and reduction for fees paid indirectly:
Net expenses -
Net investment income -
</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 6/30/99
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED YEAR ENDED
ENDED 6/30/99 12/31/98 12/31/97
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
-------- ----------- -----------
Increase from investment operations:
Net investment income $ 0.02 $ 0.04 $ 0.04
Distributions to shareholders:
Net investment income (0.02) (0.04) (0.04)
-------- ----------- -----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
-------- ----------- -----------
Total return* 1.54% 3.96% 3.89%
Ratio of net expenses to average net assets 1.77%**+ 1.67%+ 1.75%+
Ratio of net investment income to average net assets 3.06%**+ 3.79%+ 3.85%+
Net assets, end of period (in thousands) $41,599 $39,639 $32,477
Ratios assuming no waiver of management fees by PIM and
no reduction for fees paid indirectly:
Net expenses 1.77%** 1.67% 1.78%
Net investment income 3.06%** 3.79% 3.82%
Ratios assuming waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 1.74%** 1.60% 1.70%
Net investment income 3.09%** 3.86% 3.90%
<CAPTION>
YEAR ENDED 3/31/95 TO
12/31/96 12/31/95
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 1.00 $ 1.00
----------- -------
Increase from investment operations:
Net investment income $ 0.04 $ 0.03
Distributions to shareholders:
Net investment income (0.04) (0.03)
----------- -------
Net asset value, end of period $ 1.00 $ 1.00
----------- -------
Total return* 3.82% 3.28%
Ratio of net expenses to average net assets 1.75%+ 1.66%**+
Ratio of net investment income to average net assets 3.66%+ 4.20%**+
Net assets, end of period (in thousands) $10,342 $7,574
Ratios assuming no waiver of management fees by PIM and
no reduction for fees paid indirectly:
Net expenses 1.88% 1.86%**
Net investment income 3.53% 4.00%**
Ratios assuming waiver of management fees by PIM and
reduction for fees paid indirectly:
Net expenses 1.67% 1.61%**
Net investment income 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.
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
PIONEER CASH RESERVES FUND
- -------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 6/30/99
<TABLE>
<CAPTION>
SIX MONTHS YEAR ENDED YEAR ENDED
ENDED 6/30/99 12/31/98 12/31/97
<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 $ 0.04
Distributions to shareholders:
Net investment income (0.02) (0.04) (0.04)
-------- ----------- -----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
-------- ----------- -----------
Total return* 1.57% 4.12% 3.96%
Ratio of net expenses to average net assets 1.73%**+ 1.66%+ 1.79%+
Ratio of net investment income to average net assets 3.16%**+ 3.79%+ 3.84%+
Net assets, end of period (in thousands) $21,242 $18,316 $7,537
Ratios assuming no waiver of management fees by PIM and
no reduction for fees paid indirectly:
Net expenses 1.73%** 1.66% 1.81%
Net investment income 3.16%** 3.79% 3.82%
Ratios assuming waiver of management fees by PIM and
reduction for fees paid indirectly
Net expenses 1.69%** 1.38% 1.62%
Net investment income 3.20%** 4.07% 4.01%
<CAPTION>
1/31/96 TO
12/31/96
<S> <C>
CLASS C
Net asset value, beginning of period $ 1.00
------
Increase from investment operations:
Net investment income $ 0.03
Distributions to shareholders:
Net investment income (0.03)
------
Net asset value, end of period $ 1.00
------
Total return* 3.35%
Ratio of net expenses to average net assets 1.84%**+
Ratio of net investment income to average net assets 3.61%**+
Net assets, end of period (in thousands) $ 912
Ratios assuming no waiver of management fees by PIM and
no reduction for fees paid indirectly:
Net expenses 1.95%**
Net investment income 3.50%**
Ratios assuming waiver of management fees by PIM and
reduction for fees paid indirectly
Net expenses 1.77%**
Net investment income 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 6/30/99
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.
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PIONEER CASH RESERVES FUND
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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.
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. 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,
Pioneer Investment
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PIONEER CASH RESERVES FUND
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NOTES TO FINANCIAL STATEMENTS 6/30/99 (CONTINUED)
Management, Inc. (PIM), 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 June 30, 1999, $111,129 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.
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 $98,053 in distribution fees
payable to PFD at June 30, 1999.
In addition, redemptions of Class B and Class C 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%. 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, 1999, CDSCs in the amount of $220,683 were paid to PFD.
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PIONEER CASH RESERVES FUND
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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, 1999,
the Fund's expenses were reduced by $77,814 under such arrangements.
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PIONEER CASH RESERVES FUND
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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 June 30, 1999, 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 June
30, 1999, 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, 1999, 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 6, 1999
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PIONEER CASH RESERVES FUND
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TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees
John F. Cogan, Jr.
Mary K. Bush
Richard H. Egdahl, M.D.
Margaret B.W. Graham
John W. Kendrick
Marguerite A. Piret
David D. Tripple
Stephen K. West
John Winthrop
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
Officers
John F. Cogan, Jr., Chairman and
President
David D. Tripple, Executive Vice President
Sherman B. Russ, Vice President
Eric W. Reckard, Treasurer
Joseph P. Barri, Secretary
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PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
Your investment professional 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-SM- 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>
Pioneer Investment Management, Inc.
60 State Street 0799 - 6653
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [recycle logo] Printed on Recycled Paper
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