<PAGE>
[PIONEER LOGO]
Pioneer
Gold Shares
ANNUAL REPORT
OCTOBER 31, 1995
<PAGE>
Dear Shareowners,
- -------------------------------------------------------------------------------
Pioneer Gold Shares closed its sixth fiscal year on October 31, 1995. During
the first six months of the period, gold-oriented investors had many reasons
to feel good about their investment choice. In March, the U.S. dollar began a
steep decline in value versus both the Japanese yen and German deutschemark.
In reaction, investors' demand for gold rose, pushing up the price of gold
bullion to as high as $395 an ounce.
By the close of the fiscal year, however, enthusiasm for gold had cooled in
the face of continued low inflation in most major nations. Strong U.S. stock
markets and rapidly changing foreign currency exchange rates clouded gold
markets. Global investors became disappointed by heavy forward selling by
producers and gold's failure to break above the $400 per ounce mark. The
disappointment helped drive down the price of gold, to $383 as of October 31,
more than undoing gains gold-related stocks had made earlier in the year.
How Your Fund Performed
Because Pioneer Gold Shares' investment focus is on gold- mining companies,
the Fund's performance tends to track gold prices. Accordingly, we report the
following results for the 12 months ended October 31, 1995.
For additional performance information, please turn to pages 3 and 4.
Class A Shares
(bullet) Net asset value was $6.80 per share on October 31, 1995, versus $7.94
per share one year earlier.
(bullet) The Fund generated a 12-month total return of -14.36% at net asset
value, -19.24% at maximum public offering price, reflecting the drop
off in gold prices. The broad-based Standard &Poor's 500 Index posted
a total return of 26.36% over the same period, reflecting the
high-flying performance of the U.S. stock market. Total return
reflects the change in share price, assuming the reinvestment of all
distributions at net asset value.
Class B Shares
(bullet) Net asset value was $6.73 per share on October 31, 1995, versus $7.89
per share one year earlier.
(bullet) The Fund generated a 12-month total return of -14.70% assuming shares
were held throughout the period and -18.11% if shares were redeemed,
reflecting the drop off in gold prices. The broad-based Standard &
Poor's 500 Index posted a total return of 26.36% over the same
period, reflecting the high- flying performance of the U.S. stock
market. Total return reflects the change in share price, assuming the
reinvestment of all distributions.
Investment Emphasis Remains on
Gold Mining Operations
Your Fund is designed to offer shareowners a convenient way to participate in
the fortunes of the gold market. Accordingly, we focus primarily on
investments in companies involved with the production and distribution of
gold, typically mining operations. Investments tied to other precious metals
have played a much smaller role, although we do take advantage of interesting
opportunities related to silver or platinum.
As a matter of management policy, the Fund stays as fully invested as is
practical, and temporary cash investments accounted for just over 10% of the
portfolio on October 31. By taking this approach, we believe we are able to
deliver the truly gold-oriented fund you expect. This strategy also means that
the Fund's price will tend to move quickly, up or down, in response to changes
or events that affect gold and gold-related companies.
When we look for investments, we look for value. Our research process for the
Fund is designed to identify high- quality, low-cost producers whose stock is
selling at a price below the value we think they truly offer. Companies in the
portfolio tend to be leaders in their market niche, with rich mineral resources
or access to them.
<PAGE>
The past year was one of incremental change to the portfolio. We trimmed
holdings in stocks that met our target prices, including Placer Dome,
Euro-Nevada Mining and Franco-Nevada Mining. We added to holdings in Santa Fe
Pacific and TVX. Newmont remains the Fund's largest position and continues to
show good rising production and profitability.
We added to holdings in Coeur d'Alene Mines and to the Fund's investments in
South Africa, including Vaal Reefs. Australia, 14% of the portfolio, continues
to offer attractive, resource-rich operations. Among these are renowned names
such as Homestake Gold of Australia and Newcrest Mining, major players in gold
extraction and production. The Fund also is invested in the resource-rich
Ashanti Goldfields Co., Ltd., the major, publicly traded gold mining company in
Ghana.
Looking Ahead
We believe that supply and demand, the two major drivers of the gold market,
are still in a position to support the price of gold, even if they do not
propel it above $400 an ounce. Supply has been slow to increase, in part
because of the lag time and capital investment required for mining operations
to expand output. At the same time, demand has steadily risen, and held,
above production levels. Gold for jewelry has been a significant draw,
particularly in emerging nations. Even so, we think investors should expect
gold to continue trading within a relatively tight range, as we saw occur
over the past months.
Our strategy for your Fund will remain focused on low-cost, high-quality
manufacturers of gold, with a smattering of other precious metals as
opportunities arise. We continue to believe that this will give shareowners
real value, and an effective way to participate in the gold market.
The following pages include the audited Schedule of Investments for the Fund,
along with financial statements, as of October 31, 1995. If you have any
questions about your investment in Pioneer Gold Shares, please contact your
investment representative, or call Pioneer at 1-800-225-6292. Thank you for
your support.
Respectfully,
/S/ JOHN F. COGAN, JR.
John F. Cogan, Jr.
Chairman and President,
Pioneer Gold Shares
December 8, 1995
2
<PAGE>
GROWTH OF A $10,000 INVESTMENT*
The following chart shows the growth of a $10,000 investment made in Pioneer
Gold Shares Class A shares at public offering price on July 25, 1990,
compared to the growth of the Standard & Poor's 500 Index+.
[LINE CHART]
PIONEER GOLD SHARES CLASS A:
Average Annual Total Returns
(for periods ended October 31, 1995
Net Asset Public Offering
Class A Shares Value Price
- -------------- ----- -----
Life of Fund (7/25/90) 0.62% -0.49%
Five Years 5.05 3.80
Three Years 10.57 8.39
One Year -14.36 -19.24
7/31/90 9425 10000
10/31/90 7614 8619
1/31/91 6957 9844
4/30/91 7329 10823
7/31/91 7957 11280
10/31/91 7643 11507
1/31/92 7565 12073
4/30/92 6691 12344
7/31/92 7880 12719
10/31/92 7207 12649
1/31/93 6648 13349
4/30/93 9170 13481
7/31/93 11663 13824
10/31/93 10660 14533
1/31/94 11835 15060
4/30/94 10588 14199
7/31/94 10603 14541
10/31/94 11376 15095
1/31/95 9098 15413
4/30/95 10688 16672
7/31/95 11004 18326
10/31/95 9743 19074
Pioneer Gold Shares Class A
Standard & Poor's 500 Index
$20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
The Standard & Poor's (S&P) 500 Index is an unmanaged, capitalization-weighted
measure of 500 widely held common stocks listed on the New York Stock Exchange,
American Stock Exchange and the Over-the-Counter market. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any sales
charges, fees or expenses.
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvestment of all distributions at net asset value.
+ Index comparisons begin July 31, 1990.
Past performance does not guarantee future results. Return and principal
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
3
<PAGE>
GROWTH OF A $10,000 INVESTMENT*
The following chart shows the growth of a $10,000 investment made in Pioneer
Gold Shares Class B shares, compared to the growth of the Standard & Poor's
500 Index.
[LINE CHARD]
PIONEER GOLD SHARES CLASS B:
Average Annual Total Returns
(for periods ended October 31, 1995)
Class B Shares If Held If Redeemed*
- -------------- ------- -----------
Life of Fund (4/4/94) -9.14% -11.45%
One Year -14.70 -18.11
4/30/94 10000 10000
5/31/94 10447 10124
6/30/94 9986 9928
7/31/94 9973 10241
8/31/94 10555 10626
9/30/94 11516 10414
10/31/94 10677 10631
11/30/94 9486 10211
12/31/94 9702 10412
1/31/95 8539 10665
2/28/95 8850 11049
3/31/95 9959 11422
4/30/95 10027 11742
5/31/95 10000 12168
6/30/95 10027 12509
7/31/95 10298 12907
8/31/95 10325 12903
9/30/95 10352 13500
10/31/95 8743 13433
$14,000
13,000
12,000
11,000
10,000
9,000
8,000
Pioneer Gold Shares Class B
Standard & Poor's 500 Index
The Standard & Poor's (S&P) 500 Index is an unmanaged, capitalization-weighted
measure of 500 widely held common stocks listed on the New York Stock Exchange,
American Stock Exchange and the Over-the-Counter market. Index returns assume
reinvestment of dividends and, unlike Fund returns, do not reflect any sales
charges, fees or expenses.
* Reflects deduction of the maximum 4.0% contingent deferred sales charge at
the end of the period and assumes reinvestment of distributions.
Past performance does not guarantee future results. Return and principal
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
4
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS--PIONEER GOLD SHARES--October 31, 1995
- -----------------------------------------------------------------------------------
Shares Value
- ------------- -------------
<S> <C> <C>
COMMON STOCKS--89.5%
PRECIOUS METALS--89.5%
Australia--13.8%
470,000 Gold Mines of Kalgoorlie Ltd. $ 375,399
510,000 Homestake Gold of Australia Ltd.* 737,106
282,200 Newcrest Mining Ltd. 1,159,197
42,500 Plutonic Resources Ltd. 193,975
250,000 Posgold Ltd.* 429,789
195,000 St. Barbara Mines Ltd. 118,667
119,000 Sons of Gwalia NL 588,392
-----------
$ 3,602,525
-----------
Canada--34.7%
60,000 Agnico-Eagle Mines Ltd. $ 660,000
51,742 American Barrick Resources Corp. 1,196,534
106,300 Cambior, Inc. 1,047,193
37,000 Echo Bay Mines Ltd. 333,000
12,500 Euro-Nevada Mining Corp. 413,569
7,250 Franco-Nevada Mining Corp., Ltd. 393,494
100,900 Hemlo Gold Mines Inc. 832,425
40,000 Kinross Gold Corp.* 297,398
35,800 Pegasus Gold, Inc. 393,800
39,200 Placer Dome, Inc. 857,500
25,000 Prime Resources Group, Inc.* 181,227
14,300 Rayrock Yellowknife Resources, Inc.* 106,320
29,300 Teck Corp. (Class B) 539,164
175,200 TVX Gold Inc.* 1,138,800
66,600 Viceroy Resources Corp.* 259,963
63,900 Wharf Resources Ltd. 419,344
-----------
$ 9,069,731
-----------
Ghana--4.4%
65,000 Ashanti Goldfields Co., Ltd. (G.D.R.) $ 1,145,625
-----------
Great Britain--2.2%
60,383 Johnson Matthey Plc $ 577,436
-----------
South Africa--7.4%
35,000 Driefontein Consolidated Ltd. (A.D.R.) $ 385,000
44,600 Free State Consolidated Gold Mines, Ltd. (A.D.R.) 420,912
33,000 Kloof Gold Mining Co., Ltd. (A.D.R.) 309,375
15,289 Rustenberg Platinum Holdings Ltd. (A.D.R.)* 271,380
97,500 Vaal Reefs Exploration & Mining Co., Ltd. (A.D.R.) 554,531
-----------
$ 1,941,198
-----------
United States--27.0%
51,600 AMAX Gold Inc. $ 290,250
129,000 Battle Mountain Gold Co. 983,625
53,000 Coeur d'Alene Mines Corp. 894,375
30,000 Firstmiss Gold Inc. 540,000
20,900 FMC Gold Co. 80,987
35,000 Freeport-McMoRan Copper & Gold Inc. (Class A) 800,625
31,095 Hecla Mining Co.* 229,326
59,900 Homestake Mining Co. 920,962
15,825 Newmont Gold Co. 569,700
24,088 Newmont Mining Corp. 909,322
84,000 Santa Fe Pacific Gold Corp. 829,500
-----------
$ 7,048,672
-----------
TOTAL PRECIOUS METALS $23,385,187
-----------
TOTAL COMMON STOCKS (Cost $24,329,156) (a)(b) $23,385,187
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS--PIONEER GOLD SHARES--October 31, 1995--Continued
- ---------------------------------------------------------------------------------------
Principal
Amount Value
- ------------- -------------
<S> <C> <C>
TEMPORARY CASH INVESTMENTS--10.5%
$1,400,000 Commercial Credit Corp., 5.70%, 11/01/95 $ 1,400,443
1,342,000 Ford Motor Credit Co., 5.78%, 11/02/95 1,342,216
-----------
TOTAL TEMPORARY CASH INVESTMENTS (Cost $2,742,000) $ 2,742,659
-----------
TOTAL INVESTMENT IN SECURITIES--100% (Cost $27,071,156) $26,127,846
===========
* Non-income producing security.
(a) At October 31, 1995, the net unrealized loss on investments based on cost
for federal income tax purposes of $24,341,504 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 2,664,781
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (3,621,098)
-----------
Net unrealized loss $ (956,317)
===========
(b) At October 31, 1995, the Fund had a capital loss carryforward of $72,050
which will expire in the year 2001.
- --------------------------------------------------------------------------------------
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 1995 aggregated approximately $3,655,000 and
$1,439,000, respectively.
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
PIONEER GOLD SHARES
BALANCE SHEET--OCTOBER 31,1995
- ------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash investments of
$2,742,659)
(cost $27,071,156; see Schedule of Investments and Note 1) $26,127,846
Cash 852
Receivables--
Trust shares sold 135,305
Dividends 11,942
Other 17,109
-----------
Total assets $26,293,054
-----------
LIABILITIES:
Payables--
Trust shares repurchased $ 49,878
Investment securities purchased 14,375
Accrued expenses (Notes 2, 3 and 4) 54,904
-----------
Total liabilities $ 119,157
-----------
NET ASSETS:
Paid-in capital (Note 1) $27,202,264
Accumulated net realized loss on investments (Note 1) (84,398)
Net unrealized loss on investments (Note 1) (943,969)
-----------
Total net assets $26,173,897
===========
NET ASSET VALUE PER SHARE:
Class A--(based on $24,411,993/3,588,062 shares of beneficial interest outstanding--
unlimited number of shares authorized) $6.80
===========
Class B--(based on $1,761,904/261,928 shares of beneficial interest outstanding--
unlimited number of shares authorized) $6.73
===========
MAXIMUM OFFERING PRICE:
Class A $7.21
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
PIONEER GOLD SHARES
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1995
- -----------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME (Note 1):
Dividends (net of withholding tax of $30,713) $322,209
Interest 106,972
--------
Total investment income $ 429,181
-----------
EXPENSES:
Management fees (Note 2) $174,094
Distribution fees (Note 4)
Class A 55,852
Class B 14,660
Transfer agent fees (Note 3)
Class A 79,620
Class B 5,432
Registration fees 71,158
Professional fees 37,315
Accounting (Note 2) 87,885
Custodian fees 16,075
Fees and expenses of nonaffiliated trustees 12,302
Printing 48,185
Miscellaneous 21,289
--------
Total expenses $ 623,867
Less fees paid indirectly (Note 5) (3,958)
Less management fees waived and expenses assumed by
Pioneering Management Corporation (Note 2) (139,498)
-----------
Net expenses $ 480,411
-----------
Net investment loss $ (51,230)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments (Note 1) $ 6,397
Change in net unrealized gain on investments (4,123,733)
-----------
Net loss on investments $(4,117,336)
-----------
Net decrease in net assets resulting from operations $(4,168,566)
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
PIONEER GOLD SHARES
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 1995 AND 1994
- ---------------------------------------------------------------------------------------------------------
1995 1994
------------ ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (51,230) $ (89,040)
Net realized gain on investments and foreign currency related
transactions 6,397 113,251
Change in net unrealized gain on investments (4,123,733) 897,002
------------ ------------
Net increase (decrease) in net assets resulting from operations $ (4,168,566) $ 921,213
------------ ------------
FROM TRUST SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 18,503,183 $ 26,462,253
Cost of shares repurchased (15,279,791) (14,321,485)
------------ ------------
Increase in net assets resulting from trust share transactions $ 3,223,392 $ 12,140,768
------------ ------------
Net increase (decrease) in net assets $ (945,174) $ 13,061,981
NET ASSETS:
Beginning of year 27,119,071 14,057,090
------------ ------------
End of year $ 26,173,897 $ 27,119,071
============ ============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, 1995 OCTOBER 31,1994
-------------------------- --------------------------
Shares Amount Shares Amount
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold 2,085,125 $ 15,212,360 3,192,531 $ 25,169,438
Less shares repurchased (1,793,566) (13,045,144) (1,784,885) (13,969,554)
---------- ------------ ---------- ------------
Net increase 291,559 $ 2,167,216 1,407,646 $ 11,199,884
========== ============ ========== ============
CLASS B*
Shares sold 443,501 $ 3,290,823 164,903 $ 1,292,815
Less shares repurchased (302,063) (2,234,647) (44,413) (351,931)
---------- ------------ ---------- ------------
Net increase 141,438 $ 1,056,176 120,490 $ 940,884
========== ============ ========== ============
</TABLE>
* Class B shares were first publicly offered on April 4, 1994.
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
PIONEER GOLD SHARES
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
- ----------------------------------------------------------------------------------------------------------------------------
JULY 25,
FOR THE YEARS ENDED OCTOBER 31, 1990 TO
--------------------------------------------------- OCTOBER 31,
1995 1994 1993 1992 1991 1990
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 7.94 $ 7.44 $ 5.03 $ 5.35 $ 5.33 $ 6.50
------- ------- ------- ------- ------- -------
Increase (decrease) from investment operations:
Net investment income (loss) $ (0.01) $ (0.03) $ (0.03) $ (0.02) $ 0.01 $ (0.14)
Net realized and unrealized gain (loss) on investments and
foreign currency related transactions (1.13) 0.53 2.44 (0.28) 0.01 (1.03)
------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations $ (1.14) $ 0.50 $ 2.41 $ (0.30) $ 0.02 $ (1.17)
------- ------- ------- ------- ------- -------
Distribution to shareholders from:
Net investment income -- -- -- (0.02) -- --
Net increase (decrease) in net asset value $ (1.14) $ 0.50 $ 2.41 $ (0.32) $ 0.02 $ (1.17)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 6.80 $ 7.94 $ 7.44 $ 5.03 $ 5.35 $ 5.33
======= ======= ======= ======= ======= =======
Total return* (14.36%) 6.72% 47.91% (5.70%) 0.38% (18.00%)
Ratio of net operating expenses to average net assets 1.76%+ 1.75% 1.75% 1.75% 1.75% 9.21%**
Ratio of net investment income (loss) to average net assets (0.16%)+ (0.40%) (0.52%) (0.35%) 0.18% (6.31%)**
Portfolio turnover rate 5.79% 2.86% 6.00% 4.00 % 10.00% 15.00%**
Net assets, end of period (in thousands) $24,412 $26,168 $14,057 $ 3,461 $ 1,800 $ 1,399
Ratios assuming no waiver of management fees or assumption
of expenses by PMC and no reduction for fees paid
indirectly:
Net operating expenses 2.28% 2.14% 3.23% 6.62% 10.97% --
Net investment loss (0.68%) (0.79%) (2.00%) (5.22%) (9.04%) --
Ratios assuming waiver of management fees and assumption of
expenses by PMC and reduction for fees paid indirectly:
Net operating expenses 1.75% -- -- -- -- --
Net investment loss (0.15%) -- -- -- -- --
</TABLE>
+ Ratios include fees paid indirectly.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PIONEER GOLD SHARES
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------------
Year April 4,
Ended 1994 to
October 31, October 31,
1995 1994
------------ ------------
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 7.89 $ 7.83
------- ------
Increase (decrease) from investment operations:
Net investment loss $ (0.05) $(0.03)
Net realized and unrealized gain (loss) on investments and foreign currency
related transactions (1.11) 0.09
------- ------
Net increase (decrease) in net asset value $ (1.16) $ 0.06
------- ------
Net asset value, end of period $ 6.73 $ 7.89
======= ======
Total return* (14.70%) 0.77%
Ratio of net operating expenses to average net assets 2.57%+ 2.67%**
Ratio of net investment loss to average net assets (1.01%)+ (1.42%)**
Portfolio turnover rate 5.79% 2.86%
Net assets, end of period (in thousands) $ 1,762 $ 951
Ratios assuming no waiver of management fees or assumption of expenses by PMC
and no reduction for fees paid indirectly:
Net operating expenses 3.12% 2.79%
Net investment loss (1.56%) (1.54%)
Ratios assuming waiver of management fees and assumption of expenses by PMC and
reduction for fees paid indirectly:
Net operating expenses 2.53% --
Net investment loss (0.97%) --
</TABLE>
+ Ratios include fees paid indirectly.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS -- October 31, 1995
- -------------------------------------------------------------------------------
1. Pioneer Gold Shares (the Fund), one of three funds that composes Pioneer
Growth Trust, is a Massachusetts business trust registered under the
Investment Company Act of 1940 as a diversified, open-end management
investment company.
The Board of Trustees (the Trustees) has authorized the issuance of two
share classes of the Fund, designated as Class A and Class B shares. Class B
shares were first publicly offered on April 4, 1994. Shares issued and
outstanding prior to April 4, 1994 were designated as Class A shares. The
shares of each class 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
shareholders of Class A and Class B shares, respectively.
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. Each day, securities are valued at the last sale price on the
principal exchange where they are traded. Securities that have not traded
on the date of valuation, or securities for which sale prices are not
generally reported, are valued at the mean between the last bid and asked
prices. Securities for which market quotations are not readily available
are valued at their fair values as determined by, or under the direction
of, the Trustees. Temporary cash investments are valued at amortized cost
plus accrued interest, which approximates value. Dividend income is
recorded on the ex-dividend date and interest income is recorded on the
accrual basis.
Gains and losses on sales of investments are calculated on the
"identified cost" method for both financial reporting and federal income
tax purposes. It is the Fund's practice to first select for sale those
securities that have the highest cost and also qualify for long-term
capital gain or loss treatment for tax purposes.
B. Foreign Currency Translation--The books and records of the Fund are
maintained in U.S. dollars. Amounts denominated in foreign currencies are
translated into U.S. dollars using current exchange rates.
Net realized gains and losses on foreign currency transactions
represent, among other things, the net realized gains and losses on
foreign currency contracts, disposition of foreign currencies and the
difference between the amount of income accrued and the U.S. dollar
actually received. Further, the effects of changes in foreign currency
exchange rates on investments are not segregated in the statement of
operations from the effects of changes in market price of those securities
but are included with the net realized and unrealized gain or loss on
investments.
C. Federal Taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income and net
realized capital gains, if any, to its shareholders. Therefore, no federal
income tax provision is required.
The characterization of distributions to shareholders for financial
reporting purposes is determined in accordance with federal income tax
rules. Therefore, the source of the Fund's distributions may be shown in
the accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
The Fund has reclassified from net investment loss $48,937 and $2,293
to paid-in capital and accumulated net realized loss on investments,
respectively. This reclassification has no impact on the net asset value
of the Fund and is designed to present the Fund's capital accounts on a
tax basis.
D. Trust Shares--The Fund records sales and repurchases of its trust
shares on trade date. Net losses, if any, as a result of cancellations are
absorbed by Pioneer Funds Distributor, Inc. (PFD), the principal
underwriter for the Fund and an indirect subsidiary of The Pioneer Group,
Inc. (PGI). PFD earned $31,818 in underwriting commissions on the sale of
the Fund's trust shares dur-
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
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ing the year ended October 31, 1995. Distributions to shareholders are
recorded as of the ex-dividend date. Dividends paid by the Fund, if any,
with respect to each class of shares are calculated in the same manner, at
the same time, on the same day and in the same amount, except that Class A
and Class B shares bear different transfer agent and distribution fees.
E. Class Allocations--Distribution expenses are calculated based on the
average daily net asset value attributable to Class A and Class B shares
of the Fund, respectively. Shareholders of Class A and Class B share all
expenses and fees paid to the transfer agent, Pioneering Services
Corporation (PSC), for their services, which are allocated based on 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 (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.
F. Reclassification--Certain prior year amounts have been reclassified
to be consistent with current year presentation.
2. Pioneering Management Corporation (PMC), the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 0.65% of the
Fund's average daily net assets up to $300 million; 0.60% of the next $200
million; 0.50% of the next $500 million; and 0.45% of the excess over $1
billion.
PMC has agreed not to impose a portion of its management fee and to assume
other operating expenses of the Fund to the extent necessary to limit Class A
expenses to 1.75% of the average daily net assets attributable to Class A
shares; the portion of the Fund-wide expenses attributable to Class B shares
will be reduced only to the extent that such expenses are reduced for Class A
shares.
In addition, under the management agreement, certain other services and
costs, including accounting, regulatory reporting and insurance premiums, are
paid by the Fund. Included in accrued expenses is $6,732 in accounting fees
payable to PMC at October 31, 1995.
3. PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in
accrued expenses is $8,844 in transfer agent fees payable to PSC at October
31, 1995.
4. The Fund adopted a Plan of Distribution for Class A shares (Class A Plan)
and Class B shares (Class B Plan) in accordance with Rule 12b-1 of the
Investment Company Act of 1940. These plans allow for Class A shares and
Class B shares to reimburse and compensate PFD for providing varying levels
of distribution services and other account maintenance services. The Class A
Plan and Class B Plan provide for reimbursement of PFD's distribution
services in an amount up to 0.25% and 0.75%, respectively, of the average
daily net assets of the respective classes of shares. The Fund may also
compensate PFD for additional services in an amount up to 0.25% of the Fund's
average daily net assets attributable to Class B shares. Included in accrued
expenses is $7,067 in distribution fees payable to PFD at October 31, 1995.
In addition, Class B shares that are redeemed within six years of purchase
are subject to a contingent deferred sales charge (CDSC) at declining rates
beginning at 4.0% based on the lower of cost or market value of shares being
redeemed. Proceeds from the CDSC are paid to PFD. For the year ended October
31, 1995, CDSC in the amount of $5,311 was paid to PFD.
5. The Fund has entered into certain expense offset arrangements resulting in
a reduction of the Fund's total expenses. For the year ended October 31,
1995, fees paid indirectly through such offset arrangements were $3,958.
13
<PAGE>
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TRUSTEES' FEES, PRINCIPAL SHAREHOLDERS AND SHARE OWNERSHIP OF TRUSTEES AND
OFFICERS (UNAUDITED)
- -------------------------------------------------------------------------------
The aggregate direct remuneration paid by the Fund to nonaffiliated trustees
and officers during the year ended October 31, 1995 was approximately $9,000,
plus expenses incurred in attending trustees meetings of approximately
$3,000. Fees of trustees who are affiliated with or "interested persons" of
Pioneering Management Corporation and Pioneer Funds Distributor, Inc., the
investment adviser and principal underwriter, respectively, of the Fund
(approximately $300 in 1995), are reimbursed to the Fund by Pioneering
Management Corporation in accordance with the management contract with the
Fund. At October 31, 1995, the trustees and officers of the Fund owned
beneficially 39,413 Class A shares of the Fund (approximately 1.10% of the
outstanding Class A shares). The Pioneer Group, Inc., the parent company of
Pioneering Management Corporation and Pioneer Funds Distributor, Inc., is a
publicly held corporation of which Mr. Cogan, Chairman and President of the
Fund, owned approximately 15% of the outstanding shares of capital stock at
October 31, 1995.
14
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTS
- -------------------------------------------------------------------------------
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER GOLD SHARES:
We have audited the accompanying balance sheet of Pioneer Gold Shares
(one of three funds that composes Pioneer Growth Trust) including the
schedule of investments, as of October 31, 1995, and the related statement of
operations, statements of changes in net assets and 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 October 31, 1995 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 Gold Shares as of October 31, 1995, the results of its
operations, the changes in its net assets and financial highlights for the
periods presented, in conformity with generally accepted accounting
principles.
Boston, Massachusetts ARTHUR ANDERSEN LLP
November 27, 1995
15
<PAGE>
PIONEER GOLD SHARES
60 State Street
Boston, MA 02109
OFFICERS
JOHN F. COGAN, JR., Chairman and President
DAVID D. TRIPPLE, Executive Vice President
WILLIAM H. KEOUGH, Treasurer
JOSEPH P. BARRI, Secretary
TRUSTEES
JOHN F. COGAN, JR. MARGUERITE A. PIRET
RICHARD H. EGDAHL, M.D. DAVID D. TRIPPLE
MARGARET B.W. GRAHAM STEPHEN K. WEST
JOHN W. KENDRICK JOHN WINTHROP
INVESTMENT ADVISER PRINCIPAL UNDERWRITER
PIONEERING MANAGEMENT PIONEER FUNDS
CORPORATION DISTRIBUTOR, INC.
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
INDEPENDENT PUBLIC LEGAL COUNSEL
ACCOUNTANTS HALE AND DORR
ARTHUR ANDERSEN LLP
SHAREHOLDER SERVICES AND TRANSFER AGENT
PIONEERING SERVICES CORPORATION
60 State Street
Boston, Massachusetts 02109
Please call Pioneer for information on:
Existing accounts, new accounts,
prospectuses, applications
and service forms 1-800-225-6292
Fund yields and prices 1-800-225-4321
Toll-free fax 1-800-225-4240
Retirement plans 1-800-622-0176
Telecommunications Device
for the Deaf (TDD) 1-800-225-1997
When distributed to persons who are not shareowners of the Fund, this report
must be accompanied by an official prospectus, which discusses the
objectives, policies, sales charges and other information about the Fund.
1295-2923
(c)Pioneer Funds Distributor, Inc.
