PIONEER CAPITAL GROWTH FUND
60 State Street
Boston, Massachusetts 02109
OFFICERS
JOHN F. COGAN, JR., Chairman and President
DAVID D. TRIPPLE, Executive Vice President
WARREN J. ISABELLE, Vice President
WILLIAM H. KEOUGH, Treasurer
JOSEPH P. BARRI, Secretary
TRUSTEES
JOHN F. COGAN, JR.
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
PIONEERING MANAGEMENT
CORPORATION
PRINCIPAL UNDERWRITER
PIONEER FUNDS
DISTRIBUTOR, INC.
CUSTODIAN
BROWN BROTHERS
HARRIMAN & CO.
INDEPENDENT PUBLIC
ACCOUNTANTS
ARTHUR ANDERSEN LLP
LEGAL COUNSEL
HALE AND DORR
SHAREHOLDER SERVICES
AND TRANSFER AGENT
PIONEERING SERVICES
CORPORATION
60 State Street
Boston, Massachusetts 02109
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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
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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.
0695-2522
(c)Pioneer Funds Distributor, Inc.
[Pioneer logo]
Pioneer
Capital Growth
Fund
SEMIANNUAL REPORT
APRIL 30, 1995
<PAGE>
Dear Fellow Shareowners,
We are pleased to report the continued success of Pioneer Capital Growth Fund.
For the six months ended April 30, 1995, your Fund achieved a strong return and
maintained its impressive five-star rating, the highest available from
Morningstar, an independent mutual fund research firm.(1)
Fund Performance
For your Fund's semiannual period ended April 30, 1995, we report the following
results:
(bullet) Class A shares -- Net asset value rose to $17.87 per share on April
30, versus $17.26 six months earlier. Your Fund achieved a total
return of 9.80% based on net asset value, and 3.50% based on maximum
public offering price. These figures include reinvestment of the $0.95
capital gains distribution paid in December 1994.
(bullet) Class B shares -- Net asset value increased to $17.73 per share on
April 30, versus its net asset value of $17.20 six months ago. Your
Fund's six-month total return was 9.35% assuming shares were held
throughout the period, and 5.35% assuming shares were redeemed. These
figures include reinvestment of the $0.95 capital gains distribution
paid in December 1994.
Average Annual Total Returns
(as of April 30, 1995)
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Class A Shares Net Asset Value Public Offering Price*
Life-of-Fund (7/25/90) 17.78% 16.33%
3 Years 18.66 16.34
1 Year 22.82 15.77
Class B Shares Return If Not Redeemed Return If Redeemed**
Life-of-Fund (4/4/94) 23.76% 20.12%
1 Year 21.97 17.97
</TABLE>
*Reflects deduction of the maximum 5.75% sales charge and assumes reinvestment
of all distributions at net asset value.
**Reflects deduction of the maximum 4.0% contingent deferred sales charge and
assumes reinvestment of all distributions.
Past performance does not guarantee future results. Return and share price
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
Domestic Stock Market Reached Record Highs
The Dow Jones Industrial Average made impressive strides during the six-month
period, crossing the 4000 threshold for the first time in its history on
February 23, 1995, and closing at 4321.27 on April 30. The 4000 level was an
important psychological milestone for many investors. Its attainment fueled
optimism in financial markets, and led many individuals and institutions back
to securities after 1994's uncertain interest rate and economic climate had
pushed many away from investing.
Much of the positive momentum experienced over the past six months resulted in
large part from low inflation. The Federal Reserve (the Fed), persistent in its
attempts to curtail the pace of the economic growth and to stem inflation,
raised short-term interest rates on November 15, 1994, and February 1, 1995.
The results of the Fed's actions have been evident, with many economic
indicators trending lower. Although a slower-paced economy can lead to concerns
over stock market movements, the focus so far has been on the benefit of
continued low inflation.
Portfolio Strategy: Aggressive Value
Your Fund's management continues to invest with the same aggressive value
strategy that has been used since the Fund's inception. We focus on careful
stock selection, looking particularly at key company attributes such as cash
flows, balance sheets, earnings growth, and current stock price, as well as
recent changes or restructuring that we expect will increase the value of the
company's stock price. Our focus leads us to undervalued companies that either
are undiscovered, or are experiencing some sort of turnaround. These companies,
which may appear unimpressive at first glance, tend to be overlooked or ignored
by the general market. Recognizing the value of companies while they are still
unpopular enables the Fund to capitalize on the upward price movement potential
we expect they have.
(1) Morningstar proprietary ratings are published in Morningstar Mutual Funds
and are subject to change every month. Pioneer Capital Growth Fund's
five-star rating is based on its three-year performance ended April 30,
1995. The Fund was rated against a universe of equity funds by assessing
each fund's historical total returns and risk relative to the other mutual
funds in its class. The risk and return evaluations are then combined to
produce a one- to five-star risk-adjusted rating, with five stars
representing the top 10%. The Fund's Class B shares will not be eligible
for a Morningstar rating until they have three years of operating history.
<PAGE>
Another benefit to investing in these companies is that, as they become more
efficient, they often become attractive to other companies. This creates the
potential for acquisition, which very often pushes up the targeted company's
stock price. While we do not set out to find companies that will become
takeover targets, we inevitably hold likely candidates, simply because others
(often competitors) eventually see the attractive characteristics identified by
your management. This was the case with a number of holdings over the past six
months. Examples include: Leaseway Transportation Corp., bought by Penske; U.S.
Shoe Corp., bought by Luxottica; Clark Equipment Co., currently in a tentative
agreement to be acquired by Ingersoll Rand; and Green Forest Lumber Corp.,
acquired by McMillan Bloedel, a Canadian forest products manufacturer.
Company takeovers inevitably lead to a sizable inflow of cash into your Fund.
The number of companies taken over during the past six months, as well as the
substantial flow of assets into the Fund has, at times created higher-than-
normal cash positions. As of April 30, 14% of the portfolio was in cash or cash
equivalents. While we intend to be as fully invested as possible, your
management will continue to invest prudently and will not add a stock to the
portfolio until we have completed a thorough assessment of its value.
Over the six-month period, your management added several stocks to the Fund's
portfolio. While most are small-capitalization companies, we pursue value
wherever we see it, which means we also locate opportunities in the large-
capitalization market. A good example comes from the consumer non-durables
industry (one of your Fund's largest sector weightings --17% as of April 30).
Best Buy Company Co., Inc. is a large consumer electronics retailer located in
27 states across the U.S. We like this company's competitive marketing
strategy. Another holding we find attractive is Federal National Mortgage
Association (Fannie Mae), a government agency mortgage association. Its stock
declined due to concerns over interest rate increases. However, Fannie Mae has
maintained solid earnings. We expect the company will continue to produce
strong earnings, and that its price will begin to appreciate now that interest
rates appear to be settling.
The accompanying chart shows Pioneer Capital Growth Fund's diverse sector
distribution at the period's end.
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Sector Distribution
(as of April 30, 1995)
Other 2%
Capital Goods 17%
Consumer Durables 3%
Consumer Non-Durables 17%
Financial 9%
Services 6%
Technology 13%
Basic Industries 13%
Energy 6%
Cash 14%
</TABLE>
Each stock in your Fund's portfolio is subject to a detailed analysis to
determine the price we believe reflects its true worth. Once a company attains
this price, we sell it. Our discipline to sell stocks -- and patience to hold
- -- shows your management's commitment to, and confidence in, our research and
methodology. Occasionally, of course, a company fails to reach its potential.
When a significant change -- one that has an impact on our reasons for
selecting a stock -- occurs, we eliminate it from the portfolio. We are pleased
with the results of our ongoing analysis and discipline, and expect shareowners
will continue to benefit from our efforts.
Over the past six months, we sold a number of stocks that met our target price.
One example is Softkey International, Inc., a distributor/publisher of
independent software. Another is Allen Group, Inc., a company involved with
telecommunication systems. We held these investments less than a year, as they
quickly moved to our estimates of fair value. Our average cost per share for
Softkey was $11; we sold this stock at approximately $25. For Allen Group the
average cost per share was $14; we received an average price of $24. We
eliminated two other positions, Carlisle and Microcom Inc., after holding them
for approximately three years. These, too, reached our target price; Carlisle
Companies, Inc. cost approximately $21 per share when we bought it three years
ago, and we sold it for $34. We sold Microcom, which had an average cost of $5
per share, at an average price of $11.
2
<PAGE>
Looking Ahead
Financial markets have appreciated significantly over the past few months.
Despite ongoing concerns about inflation, the dollar, and political and social
events, the stock market has moved "onward and upward." How long the market can
sustain this pace is anyone's guess. Your management prefers not to get bogged
down in speculating on the overall market's next move. Instead, we focus first
and foremost on what we think makes the most sense for your Fund -- identifying
the potential of individual companies, particularly those that have been
overlooked or have fallen out of favor.
As your Fund's five-year anniversary approaches, your management is pleased
with the Fund's overall achievements. By adhering to our disciplined,
aggressive value strategy, we remain optimistic about the opportunities that
can be uncovered in the stock market. We therefore will continue to pursue your
Fund's long-term capital growth objective with the same investing approach that
has brought the Fund its success to date.
Please review the audited Schedule of Investments on the following pages. If
you have any questions about your investment in Pioneer Capital Growth Fund,
please contact your investment representative, or call Pioneer at
1-800-225-6292.
Respectfully,
[Signature of John F. Cogan, Jr.]
John F. Cogan, Jr.
Chairman and President,
Pioneer Capital Growth Fund
June 8, 1995
3
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER CAPITAL GROWTH FUND--April 30, 1995
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS--86.2%
BASIC INDUSTRIES--13.2%
Chemicals--8.5%
638,700 Albermarle Corp. $ 8,702,287
155,900 Cambrex Corp. 5,320,087
290,000 CIMCO, Inc.*+ 1,522,500
455,800 Crompton & Knowles Corp. 8,261,375
459,400 DeSoto, Inc.*+ 2,411,850
230,000 The Geon Co. 6,210,000
1,063,400 Grow Group, Inc.+ 18,742,425
670,000 NL Industries, Inc.* 9,882,500
230,500 Pratt & Lambert, Inc. 4,725,250
330,000 Specialty Chemical Resources, Inc.*+ 1,299,375
$ 67,077,649
Containers--0.5%
394,300 Sun Coast Industries, Inc.*+ $ 3,795,138
Iron & Steel--3.0%
1,116,200 Armco, Inc. $ 7,813,400
659,000 Intermet Corp.* 5,931,000
465,600 Kentucky Electric Steel, Inc.*+ 4,306,800
488,100 NS Group, Inc.* 2,135,437
468,000 Proler International Corp.*+ 3,685,500
$ 23,872,137
Metals--0.4%
156,000 Brush Wellman, Inc. $ 3,081,000
Telecommunications--0.8%
350,000 ECI Telecom, Ltd. $ 5,906,250
TOTAL BASIC INDUSTRIES $103,732,174
CAPITAL GOODS--17.3%
Aerospace--1.0%
275,200 Precision Castparts Corp. $ 7,568,000
Construction & Engineering--5.4%
1,043,800 AMRE, Inc.+ $ 4,566,625
298,000 BMC West Corp.* 4,395,500
180,200 CBI Industries, Inc. 4,459,950
1,217,000 The Lamson & Sessions Co.*+ 7,758,375
538,900 Lone Star Industries, Inc.* 11,721,075
627,600 Kasler Holding Corp.* 3,844,050
835,600 Morgan Products, Ltd.*+ 5,744,750
$ 42,490,325
Producer Goods--10.9%
334,500 Autoclave Engineers, Inc.+ $ 3,700,406
80,000 Clark Equipment Co.* 6,840,000
174,000 Farrel Corp. 957,000
251,700 Ferrofluidics Corp.*# 1,667,512
362,900 Figgie International, Inc. (Class A)* 3,130,013
283,400 Furon Company 5,703,425
533,300 Gehl Company*+ 4,266,400
640,300 Griffon Corp.* 4,962,325
415,000 Insilco Corp.* 11,101,250
269,000 Lindberg Corp.+ 1,849,375
140,000 Lindsay Manufacturing Co.* 4,541,250
855,600 Park Ohio Industries, Inc.*+ 9,732,450
162,177 Raymond Corp.* 3,304,356
259,000 Robbins & Myers, Inc.+ 6,280,750
1,000,000 Sudbury, Inc.*+ 6,812,500
203,900 Sundstrand Corp. 11,316,450
$ 86,165,462
TOTAL CAPITAL GOODS $136,223,787
CONSUMER DURABLES--2.6%
Consumer Durables--0.9%
670,400 Supreme Industries, Inc. (Class A)*+ $ 4,944,200
112,800 Watsco, Inc. (Class A) 2,072,700
$ 7,016,900
Motor Vehicles--1.7%
97,500 Ford Motor Co. $ 2,632,500
571,300 Schwitzer, Inc.*+ 6,212,887
410,000 TBC Corp.* 4,356,250
$ 13,201,637
TOTAL CONSUMER DURABLES $ 20,218,537
CONSUMER NON-DURABLES--16.7%
Home Products--1.1%
221,089 Lifetime Hoan Corp.* $ 2,680,704
350,000 Rival Co. 5,600,000
$ 8,280,704
Retail Non-Food--7.7%
510,100 Best Buy Co., Inc.* $ 13,963,987
221,000 Big B, Inc. 3,204,500
987,300 Fingerhut Co., Inc. 11,477,363
1,018,600 InterTAN, Inc.*+ 7,766,825
160,000 Kmart Corp. 2,220,000
225,000 LADD Furniture, Inc. 1,209,375
1,096,900 Levitz Furniture, Inc.* 8,226,750
182,000 Maybelline, Inc. 4,004,000
635,500 TJX Co., Inc. 7,308,250
267,800 Vans, Inc.* 1,221,838
$ 60,602,888
Textiles/Clothes--7.9%
1,004,500 Farah, Inc.*+ $ 7,282,625
808,800 Galey & Lord, Inc.*+ 9,705,600
272,200 Guilford Mills, Inc. 6,736,950
898,900 Justin Industries, Inc. 9,944,081
607,700 Marisa Christina, Inc.*+ 7,140,475
559,600 Paragon Trade Brands, Inc.* 8,673,800
983,100 Tultex Corp.* 5,038,387
1,448,300 Worldtex, Inc.*+ 7,784,613
$ 62,306,531
TOTAL CONSUMER NON-DURABLES $131,190,123
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER CAPITAL GROWTH FUND--April 30, 1995--Continued
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
ENERGY--6.0%
Oil & Gas Extraction--4.1%
1,075,000 Arakis Energy Corp.*+ $ 7,928,125
70,000 Ashland, Inc. 2,590,000
218,700 Diamond Shamrock, Inc. 5,877,563
140,300 Giant Industries, Inc. 1,087,325
230,600 Ranger Oil, Ltd. 1,700,675
400,000 YPF Sociedad Anonima (A.D.R.) 8,100,000
199,300 Ultramar Corp. 5,206,713
$ 32,490,401
Oil & Gas Services--0.9%
774,200 Tokheim Corp.*+ $ 6,967,800
Electric--1.0%
200,000 Niagara Mohawk Power Corp. $ 2,775,000
300,000 SCEcorp 5,025,000
$ 7,800,000
TOTAL ENERGY $ 47,258,201
FINANCIAL--8.8%
Real Estate--1.2%
1,223,000 Amresco, Inc.+ $ 8,713,875
286,950 Patten Corp.* 968,456
$ 9,682,331
Commercial Bank--0.3%
290,000 RedFed Bancorp, Inc.*+ $ 2,537,500
Finance Miscellaneous--4.1%
140,000 Federal National Mortgage Association $ 12,355,000
425,000 Lehman Brothers Holdings, Inc. 8,287,500
176,700 Salomon, Inc. 6,383,287
130,000 Student Loan Marketing Association 5,265,000
$ 32,290,787
Insurance--3.2%
418,500 Capital Guaranty Corp. $ 7,428,375
295,600 Citizens Corp. 5,025,200
100,000 Mid Atlantic Medical Services, Inc.* 1,725,000
722,900 Twentieth Century Industries, Inc. 8,765,163
181,600 Western National Corp. 2,406,200
$ 25,349,938
TOTAL FINANCIAL $ 69,860,556
SERVICES--6.4%
Broadcasting & Media--0.1%
145,000 Future Communications, Inc.*+@ $ 18,125
60,000 Vertex Communications Corp.* 847,500
$ 865,625
Pharmaceuticals--4.2%
127,500 Agouron Pharmaceuticals, Inc.* $ 2,390,625
1,020,000 Alkermes, Inc.*+ 2,932,500
455,000 Argus Pharmaceuticals, Inc.* 966,875
150,000 BioChem Pharma, Inc.* 2,400,000
1,195,000 ImClone Systems, Inc.*+ 746,875
396,325 Ligand Pharmaceuticals, Inc.*+ 2,278,869
908,000 Medeva Plc (A.D.R.) 14,755,000
733,000 NeoRx Corp.*+ 3,802,438
255,000 Sepracor, Inc.* 2,466,309
$ 32,739,491
Health Services & Personal Care--2.1%
364,800 American Healthcorp, Inc.* $ 2,781,600
614,500 Applied Bioscience International, Inc.* 3,379,750
534,700 BioWhittaker, Inc.*+ 4,277,600
315,000 Summit Care Corp.* 6,457,500
$ 16,896,450
TOTAL SERVICES $ 50,501,566
TECHNOLOGY--13.5%
Electronics--11.2%
135,400 Acme Electric Corp.* $ 2,944,950
954,200 Amtech Corp.+ 6,560,125
50,000 Apple Computer, Inc. 1,912,500
491,000 Banyan Systems, Inc.* 7,150,188
50,000 Belden, Inc. 1,125,000
293,900 Dataflex Corp.*+ 2,351,200
8,000 HADCO Corp.* 141,000
361,000 Instron Corp.+ 4,377,125
214,500 International Rectifier Corp.* 5,442,937
715,000 Marcam Corp.*+ 10,635,625
718,000 Micro Focus Group Plc (A.D.R.)* 8,616,000
480,800 Moog, Inc. (Class A)*+ 5,228,700
666,500 NAI Technologies, Inc.*+ 1,666,250
665,000 Signal Technology Corp.*+ 2,285,938
675,000 Southern Electronics Corp.*+ 3,712,500
917,500 Walker Interactive Systems, Inc.*+ 5,963,750
331,600 Whittaker Corp.* 6,963,600
1,364,000 Willcox & Gibbs, Inc.*+ 11,253,000
$ 88,330,388
Computers/Software--2.3%
373,100 BancTec, Inc.* $ 6,342,700
377,500 CrossComm Corp.* 4,530,000
574,500 INTERLINQ Software Corp.*+ 1,723,500
654,300 Meridian Data, Inc.* 3,189,712
367,000 Triad Systems Corp.* 2,339,625
$ 18,125,537
TOTAL TECHNOLOGY $106,455,925
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
SCHEDULE OF INVESTMENTS--PIONEER CAPITAL GROWTH FUND--April 30, 1995--Continued
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
TRANSPORTATION--1.3%
1,377,000 Avondale Industries, Inc.*+ $ 10,327,500
HOLDINGS & CONGLOMERATES--0.4%
120,500 Astrum International Corp.* $ 3,419,188
TOTAL COMMON STOCKS
(Cost $613,291,103) (a) $679,187,557
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C>
TEMPORARY CASH INVESTMENTS--13.8%
$13,291,000 Deere Co., 5.91%, 5/01/95 $ 13,315,045
11,125,000 Ford Motor Credit Company, 5.86%,
5/02/95 11,143,110
15,000,000 Norwest Finance Co., 5.91%, 5/03/95 15,017,234
16,025,000 Associates Corp. North America, 5.91%,
5/04/95 16,043,414
12,886,000 American General Finance Corp., 5.90%,
5/05/95 12,898,692
10,748,000 Commercial Credit Co., 5.94%, 5/08/95 10,756,870
14,312,000 Exxon Asset Management., 5.93%,
5/09/95 14,321,433
14,803,000 General Electric Capital Corp., 5.93%,
5/10/95 14,810,330
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $108,190,000) $108,306,128
TOTAL INVESTMENT IN SECURITIES--100%
(Cost $721,481,103) $787,493,685
</TABLE>
* Non-income producing security.
+ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company. (See Note 5)
@ Future Communications, Inc. was ordered into Chapter 7 of the federal
bankruptcy regulations on March 22, 1994.
# 40,000 shares of Ferrofluidics Corp. were restricted as of April 30, 1995.
(a) At April 30, 1995, the net unrealized appreciation on investments based on
cost for federal income tax purposes of $613,730,752 was as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
Aggregate gross unrealized appreciation
for all investments in which there is an
excess of value over tax cost $101,516,230
Aggregate gross unrealized depreciation
for all investments in which there is an
excess of tax cost over value (36,059,425)
Net unrealized appreciation $ 65,456,805
</TABLE>
Purchases and sales of investment securities (excluding temporary cash
investments) for the six months ended April 30, 1995, aggregated $339,237,587
and $117,065,196, respectively.
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
PIONEER CAPITAL GROWTH FUND
BALANCE SHEET--APRIL 30, 1995
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash investments of $108,306,128)
(cost $721,481,103; see Schedule of Investments and Notes 1 and 5) $787,493,685
Receivables--
Trust shares sold 11,290,699
Investment securities sold 3,220,575
Dividends 565,021
Other 25,337
Total assets $802,595,317
LIABILITIES:
Payables--
Investment securities purchased $ 18,104,062
Trust shares repurchased 1,501,259
Due to bank 1,014,744
Accrued expenses--
Management fees (Note 2) 61,987
Other (Notes 2, 3 and 4) 526,560
Total liabilities $ 21,208,612
NET ASSETS:
Paid-in capital (Note 1) $674,656,882
Accumulated undistributed net investment income (Note 1) 360,116
Accumulated undistributed net realized gain on investments (Note 1) 40,473,253
Net unrealized gain on investments (Note 1) 65,896,454
Total net assets $781,386,705
NET ASSET VALUE PER SHARE:
Class A--(based on $630,347,180/35,279,092 shares of beneficial interest outstanding--
unlimited number of shares authorized with no par value) $17.87
Class B--(based on $151,039,525/8,517,995 shares of beneficial interest outstanding--
unlimited number of shares authorized with no par value) $17.73
MAXIMUM OFFERING PRICE:
Class A $18.96
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
PIONEER CAPITAL GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Investment Income (Note 1):
Dividends $ 2,107,744
Interest 2,003,598
Total investment income $ 4,111,342
Expenses:
Management fees (Note 2) $ 1,741,141
Distribution fees (Note 4)
Class A 555,822
Class B 423,303
Transfer fees (Note 3)
Class A 543,400
Class B 89,728
Registration fees 189,915
Professional fees 60,804
Accounting (Note 2) 49,840
Custodian fees 41,635
Printing 37,408
Fees and expenses of nonaffiliated trustees 6,450
Miscellaneous 11,780
Total expenses $ 3,751,226
Net investment income $ 360,116
Realized and Unrealized Gain on Investments:
Net realized gain on investments (Note 1) $40,898,918
Increase in net unrealized gain on investments (Note 1) 25,942,525
Net gain on investments $66,841,443
Net increase in net assets resulting from operations $67,201,559
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
PIONEER CAPITAL GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 1995 AND
THE YEAR ENDED OCTOBER 31, 1994
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31,
1995 1994
<S> <C> <C>
From Operations:
Net investment income (loss) $ 360,116 $ (1,291,839)
Net realized gain on investments 40,898,918 28,413,760
Increase in net unrealized gain on investments 25,942,525 25,232,865
Net increase in net assets resulting from operations $ 67,201,559 $ 52,354,786
Distributions to Shareholders From:
Realized gain on investments
Class A--net ($0.95 and $1.66 per share, respectively) $(24,106,074) $(20,592,457)
Class B--net ($0.95 and $0.00 per share, respectively) (3,341,734) --
Decrease in net assets resulting from distributions to
shareholders $(27,447,808) $(20,592,457)
From Trust Share Transactions:
Net proceeds from sale of shares $364,469,059 $277,119,481
Net asset value of shares issued to shareholders in
reinvestment of dividends 25,070,443 18,612,184
Cost of shares repurchased (96,270,031) (73,800,383)
Increase in net assets resulting from trust share
transactions $293,269,471 $221,931,282
Net increase in net assets $333,023,222 $253,693,611
Net Assets:
Beginning of period 448,363,483 194,669,872
End of period (including accumulated undistributed net
investment income of $360,116 and $0, respectively) $781,386,705 $448,363,483
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31, 1994
<S> <C> <C> <C> <C>
SHARES AMOUNT SHARES AMOUNT
CLASS A
Shares sold 15,685,793 $259,825,392 14,785,940 $236,147,803
Shares issued to shareholders in
reinvestment of distributions 1,416,433 22,167,146 1,290,735 18,612,184
Less shares repurchased (5,337,042) (88,601,851) (4,604,463) (72,755,557)
Net increase 11,765,184 $193,390,687 11,472,212 $182,004,430
CLASS B*
Shares sold 6,324,998 $104,643,667 2,532,278 $ 40,971,678
Shares issued to shareholders in
reinvestment of distributions 186,467 2,903,297 -- --
Less shares repurchased (462,335) (7,668,180) (63,413) (1,044,826)
Net increase 6,049,130 $ 99,878,784 2,468,865 $ 39,926,852
</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>
PIONEER CAPITAL GROWTH FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING FOR THE PERIODS PRESENTED
<TABLE>
<CAPTION>
Six Months July 25,
Ended 1990 to
April 30, For the Year Ended October 31, October 31,
CLASS A 1995 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.26 $ 16.17 $ 12.42 $ 11.58 $ 7.50 $ 10.50
Increase (decrease) from investment operations:
Net investment income (loss) $ 0.02 $ (0.05) $ (0.02) $ (0.01) $ 0.07 $ (0.04)
Net realized and unrealized gain (loss) on investments 1.54 2.80 4.43 1.21 4.01 (2.96)
Total increase (decrease) from investment operations $ 1.56 $ 2.75 $ 4.41 $ 1.20 $ 4.08 $ (3.00)
Distribution to shareholders from:
Net investment income -- -- -- (0.04) -- --
Net realized gain (0.95) (1.66) (0.66) (0.32) -- --
Net increase (decrease) in net asset value $ 0.61 $ 1.09 $ 3.75 $ 0.84 $ 4.08 $ (3.00)
Net asset value, end of period $ 17.87 $ 17.26 $ 16.17 $ 12.42 $ 11.58 $ 7.50
Total return* 9.80% 19.03% 36.59% 10.88% 54.40% (28.57%)
Ratio of net operating expenses to average net assets 1.20%** 1.26% 1.27% 1.48% 1.69% 7.12%**
Ratio of net investment income (loss) to average net
assets 0.24%** (0.44%) (0.26%) (0.20%) 0.69% (2.18%)**
Portfolio turnover rate 45.82%** 47.10% 68.09% 62.00% 37.76% --
Net assets, end of period (in thousands) $630,347 $405,904 $194,670 $75,796 $21,013 $ 2,483
Ratios assuming no waiver of management fees or
assumption of expenses by PMC for the year ended
October 31, 1991:
Net operating expenses -- -- -- -- 2.78% --
Net investment loss -- -- -- -- -- (0.40%)
</TABLE>
<TABLE>
<CAPTION>
Six Months April 4,
Ended 1994 to
April 30, October 31,
CLASS B*** 1995 1994
<S> <C> <C>
<C> <C>
Net asset value, beginning of period
$ 17.20 $ 14.94
Increase (decrease) from investment operations:
Net investment loss $ (0.02) $ (0.04)
Net realized and unrealized gain on investments 1.50 2.30
Total increase from investment operations $ 1.48 $ 2.26
Distribution to shareholders from:
Net realized gain (0.95) --
Net increase in net asset value $ 0.53 $ 2.26
Net asset value, end of period $ 17.73 $ 17.20
Total return* 9.35% 15.13%
Ratio of net operating expenses to average net assets 1.95%** 2.04%**
Ratio of net investment loss to average net assets (0.51%)** (1.12%)**
Portfolio turnover rate 45.82%** 47.10%
Net assets, end of period (in thousands) $151,040 $42,459
</TABLE>
* 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.
*** Class B shares were first publicly offered on April 4, 1994.
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS-April 30, 1995
1. Pioneer Capital Growth Fund (the Fund) is one of three funds that currently
form Pioneer Growth Trust (the Trust), a Massachusetts business trust organized
on April 7, 1990 and registered under the Investment Company Act of 1940 as a
diversified, open-end management company.
The Board of Trustees (the Trustees) has authorized the issuance of two
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 liquidations,
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 holders 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. Investment Securities--Security transactions are recorded on the date the
securities are purchased or sold. Investments in 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. Temporary cash investments are valued at cost plus accrued
interest, which approximates market value. Dividend income is recorded on the
ex-dividend date and interest income is recorded on the accrual basis.
Gains and losses from 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 first to 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. 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 provisions are required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with income tax rules. Therefore, the
source of a 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 capital, depending on the
type of book/tax differences that may exist.
The Fund has reclassified the previous year's net investment loss in the
amount of $1,291,839, previously reclassified to Paid-in capital, to
Accumulated undistributed net realized gain on investments. 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.
C. Trust Shares--The Fund records sales and repurchases of its trust shares
on the 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 a wholly owned subsidiary of The Pioneer Group, Inc. (PGI).
PFD earned $804,188 in underwriting commissions on the sale of trust shares of
the Fund during the six months ended April 30, 1995. Dividends and
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 and on the same day and are in
the same amount, except that Class A and Class B shares can bear different
transfer agent and distribution fees.
D. 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 service organization, 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 (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.
2. Pioneering Management Corporation (PMC) is the Fund's investment adviser,
manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
are calculated daily at the annual rate of 0.65% of the average daily net
assets up to $300,000,000, 0.60% of such assets between $300,000,000 and
$500,000,000, 0.50% of such assets between $500,000,000 and $1,000,000,000, and
0.45% of such assets in excess of $1,000,000,000.
In addition, under the management agreement, certain services and costs
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. Included in Accrued expenses--Other is $6,640 in accounting fees
payable to PMC at April 30, 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--Other is $111,135 in transfer fees payable to PSC at April
30, 1995.
4. The Fund has adopted a Plan of Distribution for both Class A shares (Class A
Plan) and Class B shares (Class B Plan) in accordance with Rule 12b-1 under the
Investment Company Act of 1940, pursuant to which certain distribution and
service fees are paid to PFD.
Pursuant to the Class A Plan, the Fund may reimburse PFD for its actual
expenditures to finance any activity primarily intended to result in the sale
of Class A shares or to provide services to holders of Class A shares.
Reimbursement for such expenditures, if any, may not exceed 0.25% of the Fund's
average annual net assets attributable to Class A shares. The Class B Plan
provides that the Fund may pay a distribution fee at an annual rate of 0.75% of
the Fund's average daily net assets attributable to Class B shares and may pay
PFD a service fee at the annual rate of 0.25% of the Fund's average daily net
assets attributable to Class B shares. Included in Accrued expenses--Other is
$327,738 in distribution fees payable to PFD at April 30, 1995.
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% of
the lesser of the current market value at the time of redemption or the
original purchase cost of the shares being redeemed. Proceeds from the CDSC are
paid to PFD. For the six months ended April 30, 1995, CDSC in the amount of
$47,693 was paid to PFD.
5. The Fund's investment in certain companies may exceed 5% of the outstanding
voting stock. Such companies are deemed affiliates of the Fund for financial
reporting purposes. The following summarizes transactions with affiliates of
the Fund as of April 30, 1995:
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
<TABLE>
<CAPTION>
Purchases Sales Dividend
Affiliates Cost Cost Income Value
<S> <C> <C> <C> <C>
Alkermes, Inc.* $ 2,877,813 -- -- $ 2,932,500
Amresco, Inc. 2,194,350 -- $110,550 8,713,875
AMRE, Inc. 4,028,746 -- 47,493 4,566,625
Amtech Corp. 5,054,116 -- 22,036 6,560,125
Arakis Energy Corp.* 1,104,080 -- -- 7,928,125
Autoclave Engineers, Inc. 270,000 -- 40,140 3,700,406
Avondale Industries, Inc.* 2,491,875 -- -- 10,327,500
BioWhittaker, Inc.* -- -- -- 4,277,600
CIMCO, Inc.* -- -- -- 1,522,500
Dataflex Corp.* -- $ 232,500 -- 2,351,200
DeSoto, Inc.* -- -- -- 2,411,850
Farah, Inc.* 6,346,332 -- -- 7,282,625
Future Communications, Inc.* -- -- -- 18,125
Galey & Lord Inc.* 8,428,276 -- -- 9,705,600
Gehl Company* -- -- -- 4,266,400
Grow Group, Inc. 8,766,470 -- 115,479 18,742,425
ImClone Systems, Inc.* 273,906 -- -- 746,875
Instron Corp. 110,500 -- 21,660 4,377,125
INTERLINQ Software Corp.* -- -- -- 1,723,500
InterTAN, Inc.* 5,873,955 567,000 -- 7,766,825
Kentucky Electric Steel, Inc.* 411,275 -- -- 4,306,800
Ligand Pharmaceuticals, Inc.* 1,835,625 -- -- 2,278,869
Lindberg Corp. -- -- 32,280 1,849,375
Marcam Corp.* 2,323,126 446,580 -- 10,635,625
Marisa Christina, Inc.* 2,000,100 -- -- 7,140,475
Moog, Inc. (Class A)* 969,052 -- -- 5,228,700
Morgan Products, Ltd.* 1,095,724 -- -- 5,744,750
NAI Technologies, Inc.* 638,000 -- -- 1,666,250
NeoRx Corp.* 796,875 -- -- 3,802,438
Park Ohio Industries, Inc.* 4,544,186 -- -- 9,732,450
Proler International Corp.* -- -- -- 3,685,500
RedFed Bancorp, Inc.* 195,000 -- -- 2,537,500
Robbins & Myers, Inc. 102,750 -- 38,850 6,280,750
Schwitzer, Inc.* 234,000 -- -- 6,212,887
Signal Technology Corp.* 610,806 -- -- 2,285,938
Southern Electronics Corp.* 70,312 -- -- 3,712,500
Specialty Chemical Resources, Inc.* -- -- -- 1,299,375
Sudbury, Inc.* 2,982,125 -- -- 6,812,500
Sun Coast Industries, Inc.* 1,247,394 -- -- 3,795,138
Supreme Industries, Inc. (Class A)* 434,000 -- -- 4,944,200
The Lamson & Sessions Co.* 1,586,366 -- -- 7,758,375
Tokheim Corp.* -- -- -- 6,967,800
Walker Interactive Systems, Inc* 2,391,248 -- -- 5,963,750
Willcox & Gibbs, Inc.* 1,089,450 -- -- 11,253,000
Worldtex, Inc.* 306,875 -- -- 7,784,613
$73,684,708 $1,246,080 $428,488 $243,601,364
</TABLE>
*Non-income producing security.
13
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER CAPITAL GROWTH FUND:
We have audited the accompanying balance sheet of Pioneer Capital Growth
Fund (one of three funds that comprise Pioneer Growth Trust, a Massachusetts
business trust), including the schedule of investments, as of April 30, 1995,
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 Trust'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
April 30, 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 Capital Growth Fund as of April 30, 1995, and 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
May 26, 1995
14
