[Pioneer logo]
Pioneer
Equity-Income
Fund
ANNUAL REPORT 10/31/96
<PAGE>
Table of Contents
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 14
Notes to Financial Statements 20
Report of Independent Public Accountants 24
Tax Treatment of Distributions 25
Trustees' Fees and Share Ownership 26
Trustees, Officers and Service Providers 27
Programs and Services for Pioneer Shareowners 28
<PAGE>
Pioneer Equity-Income Fund
LETTER FROM THE CHAIRMAN 10/31/96
Dear Shareowner,
I introduce with pleasure this report for Pioneer Equity-Income Fund,
covering the year ended October 31, 1996. We wish to welcome the Fund's new
shareowners, particularly those in the Fund's Class C Shares, introduced on
January 31.
The year was fast-paced, exciting and nerve-racking for stock investors. The
Dow Jones Industrial Average moved to historic highs, although it was a
journey of significant peaks and troughs. And the Dow's upward surge has
continued - on November 20 it closed above 6400 for the first time in its
100-year history. While indicative of few stocks - it includes only 30 large
companies - it is a significant barometer of investor sentiment. In the face
of today's enthusiasm, we urge you to maintain realistic expectations about
the stock market. It doesn't always go up, and certainly not always at the
extraordinary rate of the past few years. There can be significant risks for
those who chase "hot" stocks; we still think a stock should be purchased
because it represents a good value for a company with strong growth prospects
over time.
One final note. As you see, we've given your Fund's annual report a facelift.
The new, improved style reflects what shareowners told us they want to see in
fund reports. Our thanks to all of you who took the time to respond to our
questions. Now you'll find a Table of Contents and consistent, easy-to-read
summaries of portfolio information and performance. There's also a Portfolio
Management Discussion, where your Fund's portfolio manager offers insights
into market conditions, portfolio strategy and results.
Please contact your investment representative, or us at 1-800-225-6292, if
you have questions about your investment in Pioneer Equity-Income Fund. Thank
you for your continued support.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
<PAGE>
Pioneer Equity-Income Fund
PORTFOLIO SUMMARY 10/31/96
Portfolio Diversification
(As a percentage of total investment portfolio)
[pie chart]
U.S. Common Stocks 99.8%
U.S. Convertible Securities 0.2%
Sector Distribution
(As a percentage of equity holdings)
[pie chart]
Utilities 27%
Financial 22%
Basic Industries 12%
Consumer Non-Durables 9%
Consumer Durables 7%
Energy 6%
Services 6%
Capital Goods 6%
Technology 3%
Transportation 2%
10 Largest Holdings
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
1. Ford Motor Co. 3.72% 6. Ameritech Corp. 2.62%
2. Schering-Plough Corp. 3.45 7. The Bank of New York Co., Inc. 2.55
3. SBC Communications, Inc. 2.90 8. CPC International, Inc. 2.34
4. Phelps Dodge Corp. 2.66 9. Union Camp Corp. 2.06
5. Chrysler Corp. 2.63 10. Amoco Corp. 2.05
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Equity-Income Fund
PERFORMANCE UPDATE 10/31/96 CLASS A SHARES
Share Prices and Distributions
Net Asset Value
per Share 10/31/96 10/31/95
$ 20.37 $ 18.22
Distributions per Share Income Short-Term Long-Term
(10/31/95-10/31/96) Dividends Capital Gains Capital Gains
$ 0.4970 $ 0.0004 $0.1414
Investment Returns
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Equity-Income Fund at public offering price, compared to the
growth of the Standard & Poor's 500 Index.
Average Annual Total Returns
(As of October 31, 1996)
Period Net Asset Public Offering
Value Price*
Life-of-Fund
(7/25/90) 14.00% 12.93%
5 Years 14.22 12.87
1 Year 15.53 8.89
* Reflects deduction of the maximum
5.75% sales charge at the beginning of
the period and assumes reinvestment
of distributions at net asset value.
[mountain chart]
Growth of $10,000
Pioneer Equity- Standard & Poor's
Income Fund* 500 Index
7/25/90 9,425 10,000
10/31/90 8,160 8,597
4/30/91 9,913 10,794
10/31/91 11,025 11,477
4/30/92 11,947 12,311
10/31/92 12,848 12,616
4/30/93 14,517 13,446
10/31/93 15,509 14,494
4/30/94 15,111 14,162
10/31/94 15,523 15,055
4/30/95 16,234 16,628
10/31/95 18,552 19,023
4/30/96 20,518 21,639
10/31/96 21,433 23,593
The Standard & Poor's (S&P) 500 Index is an unmanaged 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 fees, expenses or
sales charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
3
<PAGE>
Pioneer Equity-Income Fund
PERFORMANCE UPDATE 10/31/96 CLASS B SHARES
Share Prices and Distributions
Net Asset Value
per Share 10/31/96 10/31/95
$ 20.26 $ 18.15
Distributions per Share Income Short-Term Long-Term
(10/31/95-10/31/96) Dividends Capital Gains Capital Gains
$ 0.3850 $ 0.0004 $0.1414
Investment Returns
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Equity-Income Fund, compared to the growth of the Standard &
Poor's 500 Index.
Average Annual Total Returns
(As of October 31, 1996)
Period If If
Held Redeemed*
Life-of-Fund 15.23% 14.30%
(4/4/94)
1 Year 14.70 10.70
* Reflects deduction of the maximum
applicable contingent deferred sales
charge (CDSC) at the end of the
period and assumes reinvestment
of distributions. The maximum CDSC
of 4% declines over six years.
[mountain chart]
Growth of $10,000
Standard & Poor's Pioneer Equity-
500 Index Income Fund*
4/4/94 10000 10000
4/30/94 10273 10343
7/31/94 10521 10666
10/31/94 10921 10593
1/31/95 10956 10436
4/30/95 12062 11036
7/31/95 13259 12072
10/31/95 13800 12575
1/31/96 15181 13678
4/30/96 15697 13854
7/31/96 15443 13330
10/31/96 17115 14116
The Standard & Poor's (S&P) 500 Index is an unmanaged 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 fees, expenses or
sales charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
4
<PAGE>
Pioneer Equity-Income Fund
PERFORMANCE UPDATE 10/31/96 CLASS C SHARES
Share Prices and Distributions
Net Asset Value
per Share 10/31/96 1/31/96
$ 20.25 $ 19.49
Distributions per Share Income Short-Term Long-Term
(1/31/96-10/31/96) Dividends Capital Gains Capital Gains
$ 0.270 - -
Investment Returns
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Equity-Income Fund, compared to the growth of the Standard &
Poor's 500 Index.
Cumulative Total Returns
(As of October 31, 1996)
Period If If
Held Redeemed*
Life-of-Fund 5.34% 4.34%
(1/31/96)
* Reflects deduction of the 1% contingent
deferred sales charge (CDSC) at the end
of the period and assumes reinvestment
of distributions.
[mountain chart]
Growth of $10,000
Pioneer Equity- Standard & Poor's
Income Fund* 500 Index
1/96 10000 10000
2/96 9838 10069
3/96 10066 10203
4/96 10133 10340
5/96 10149 10577
6/96 10118 10660
7/96 9745 10172
8/96 9901 10364
9/96 10237 10987
10/96 10434 11274
The Standard & Poor's (S&P) 500 Index is an unmanaged 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 fees, expenses or
sales charges. You cannot invest directly in the Index.
Past performance does not guarantee future results. Returns and share prices
fluctuate, and your shares, when redeemed, may be worth more or less than
their original cost.
5
<PAGE>
Pioneer Equity-Income Fund
PORTFOLIO MANAGEMENT DISCUSSION 10/31/96
Dear Shareowner,
I am pleased to bring you up-to-date on Pioneer Equity-Income Fund. We are
especially gratified by the growth in assets since the Fund's inception in
July 1990. On October 31, 1996, the end of the Fund's seventh fiscal year,
net assets totaled $475 million.
We are also pleased to report that the Fund has consistently met its
objective of providing a net current-dividend yield above that of the
Standard & Poor's 500 Index. Investing for dividend income has been
particularly challenging of late, as average dividend yields are near
all-time record lows. It is our extra challenge to generate income with
high-quality stocks. We believe that the Fund's portfolio does represent
quality and that it offers the potential for both current income and capital
appreciation.
Managing for Growth and Income
We follow strict guidelines when selecting stocks for the Fund's portfolio.
All securities must produce income; that is, every stock must pay a dividend.
Every company must be based in the U.S.; there are no foreign stocks. We like
companies with long public operating records and the proven experience to
manage in both good times and bad. We do not buy "start ups," "hot" new
issues or "turnarounds." What we most like, in general, are companies that
will be familiar to our shareowners by name, goods or services.
We look across a broad range of industries for stocks we believe can make a
positive contribution to investment results. We evaluate not only current
dividend yields, but also the ability and commitment of each company to raise
its dividend regularly. We thoroughly research each company, and once we have
bought a stock it is part of our job to follow it closely and monitor the
progress of the company. Over the past six months, our investment process led
to our initiating nearly 30 new positions while eliminating about 15
holdings.
6
<PAGE>
Crosscurrents in the Market
Stock prices moved to new highs during the past year, with the Dow Jones
Industrial Average seeming to set new records almost daily. Along the way,
there were setbacks. This summer, for instance, the market experienced a
sharp sell-off before recovering in the autumn. The Fund's portfolio held
together relatively well, and appears to be performing creditably so far this
fall. For the year ended October 31, the Fund generated double-digit returns
for shareowners in both Class A and Class B shares. The Performance Updates,
beginning on page 3, provide more information on the Fund's results.
Some currents in the stock market produced happy outcomes for the portfolio.
The trend toward strategic mergers between competing corporations is one. The
Fund saw price gains on Conrail, recipient of competing offers from Norfolk
Southern and CSX, two other Eastern railroads, and Boatmen's Bancshares,
slated to be acquired by Nationsbank. Following a "value" approach to
investing often leads us to stocks that attract potential acquirers looking
for the same strengths and buying opportunities.
There are, however, lingering effects from negative events that occurred
early in the year. One was the concern over interest rates. To meet its
income objective, the Fund tends to be "overweighted" in utility and
financial stocks, which generally pay higher-than-average dividends but also
are sensitive to changes in interest rates. When interest rates rose, the
price of these stocks declined. And, on February 8, the President signed into
law the most sweeping changes in telecommunications regulations since 1934.
While the short-term effects on most telephone companies have been modest,
worries about the longer-term impact provoked considerable selling, and price
declines, of telephone stocks.
While we are not at all sure the stock market has correctly reacted to these
changes, we adjusted the portfolio to moderate the Fund's industry risk. We
maintained a very large weighting in utilities, but significantly broadened
investments to include important, remaining telephone positions, and more
than a dozen new and meaningful positions in electric and gas utility
companies.
7
<PAGE>
We also found worthwhile companies in other industries. Examples include
Eastman Chemical, formerly part of Eastman Kodak and a producer of plastic
for soft-drink bottles; Consolidated Papers and Mead, manufacturers of paper;
and Sonat, operator of natural-gas pipelines and also a producer of oil and
gas. Other entries included General Mills, a leading food company;
Hewlett-Packard, a major presence in the computer industry; and Abbott
Laboratories, a premier pharmaceutical company. The Portfolio Summary on page
2 provides more information on the portfolio, including the Fund's 10 largest
holdings.
Staying True to the Fund's Style
The stock market has seen remarkable gains in recent years. Starting with the
great surge in 1982, and excepting a few rough periods along the way (most
notably October 1987), we have had an almost uninterrupted bull market for 14
years. That is remarkable by all measures of historical comparison.
At Pioneer we don't forecast the market, believing instead that staying fully
invested offers the best possibility for satisfactory, long-term total
returns. Like everyone else, however, we do marvel at the market averages,
and at the prices of many individual stocks, as they reach one new high after
another. When a "correction" will come, we do not know, but one is likely at
some point. One should not mistake an elongation of the market cycle for its
extinction.
By staying always on the conservative side of share-price valuations and by
emphasizing dividends, we hope to mute some of the potential volatility for
Fund shareowners. By design, Pioneer Equity-Income Fund will not "tear up the
track," but it should produce solid long-term results. Thank you very much
for your support and interest.
Respectfully,
/s/ John A. Carey
John A. Carey,
Portfolio Manager
8
<PAGE>
Pioneer Equity-Income Fund
SCHEDULE OF INVESTMENTS 10/31/96
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 100%
CONVERTIBLE PREFERRED STOCKS - 0.2%
20,000 International Paper Co., 5.25%, 7/20/25 $ 952,500
1,840 Stepan Co., 5.50%, 9/1/97 43,125
--------------
Total Convertible Preferred Stocks (Cost $969,870) $ 995,625
--------------
COMMON STOCKS - 99.8%
Basic Industries - 12.3%
Chemicals - 4.8%
179,224 ARCO Chemical Co. $ 8,557,946
136,300 Borden Chemicals & Plastics, L.P. 1,243,737
66,500 E.I. du Pont de Nemours and Co. 6,167,875
125,000 Eastman Chemical Co. 6,593,750
--------------
$22,563,308
--------------
Forest Products - 1.6%
42,600 Consolidated Papers, Inc. $ 2,135,325
100,000 Mead Corp. 5,675,000
--------------
$ 7,810,325
--------------
Iron & Steel - 1.2%
13,800 Great Northern Iron Ore Properties $ 695,175
348,937 Roanoke Electric Steel Corp. 4,885,118
--------------
$ 5,580,293
--------------
Non-Ferrous Metals - 2.7%
200,600 Phelps Dodge Corp. $12,612,725
--------------
Paper Products - 2.0%
200,000 Union Camp Corp. $ 9,750,000
--------------
Total Basic Industries $58,316,651
--------------
Capital Goods - 5.6%
Construction & Engineering - 0.1%
12,000 The Manitowoc Co., Inc. $ 402,000
--------------
Producer Goods - 5.5%
556,557 The Gorman-Rupp Co.+ $ 7,652,659
166,000 Helix Technology Corp. 4,419,750
28,900 Johnson Controls, Inc. 2,109,700
73,000 Minnesota Mining and Manufacturing Co. 5,593,625
92,000 Thomas & Betts Corp. 3,898,500
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
Producer Goods (continued)
57,600 The Timken Co. $ 2,570,400
--------------
$26,244,634
--------------
Total Capital Goods $26,646,634
--------------
Consumer Durables - 6.3%
Motor Vehicles - 6.3%
370,300 Chrysler Corp. $12,451,337
563,800 Ford Motor Co. 17,618,750
--------------
Total Consumer Durables $30,070,087
--------------
Consumer Non-Durables - 9.4%
Agriculture & Food - 5.0%
140,900 CPC International, Inc. $11,113,487
108,000 General Mills, Inc. 6,169,500
157,750 H.J. Heinz Co. 5,600,125
20,000 Sara Lee Corp. 710,000
--------------
$23,593,112
--------------
Consumer Luxury - 1.4%
172,000 Cedar Fair, L.P. $ 6,020,000
37,300 Cross (A.T.) Co. 424,287
--------------
$ 6,444,287
--------------
Retail Non-Food - 3.0%
204,000 The May Department Stores Co. $ 9,664,500
30,000 Mercantile Stores Co., Inc. 1,488,750
60,000 J.C. Penney Co., Inc. 3,150,000
--------------
$14,303,250
--------------
Total Consumer Non-Durables $44,340,649
--------------
Energy - 6.3%
Oil & Gas Extraction - 4.3%
128,500 Amoco Corp. $ 9,733,875
114,000 Chevron Corp. 7,495,500
28,500 Mobil Corp. 3,327,375
--------------
$20,556,750
--------------
Oil Services - 2.0%
50,300 Buckeye Partners, L.P. $ 1,961,700
1,500 Lakehead Pipe Line Partners, L.P. (Preferred Units) 49,312
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
Oil Services (continued)
36,300 Santa Fe Pacific Pipeline Partners, L.P. $ 1,315,875
120,000 Sonat, Inc. 5,910,000
--------------
$ 9,236,887
--------------
Total Energy $ 29,793,637
--------------
Financial - 21.4%
Financial Services - 1.4%
60,000 Alliance Capital Management L.P. $ 1,672,500
56,900 Eaton Vance Corp. 2,489,375
75,000 T. Rowe Price Associates, Inc. 2,559,375
--------------
$ 6,721,250
--------------
Commercial Banks - 11.9%
103,100 AmSouth Bancorp. $ 4,781,263
364,800 The Bank of New York Co., Inc. 12,084,000
157,500 CoreStates Financial Corp. 7,658,438
270,000 First Security Corp. 7,931,250
150,000 First Tennessee National Corp. 5,456,250
179,059 Huntington Bancshares Inc. 4,297,416
58,000 National City Corp. 2,515,750
211,183 Old Kent Financial Corp. 9,529,633
65,000 SouthTrust Corp. 2,153,125
--------------
$ 56,407,125
--------------
Misc. Finance - 0.7%
132,400 H & R Block, Inc. $ 3,276,900
--------------
Insurance - 5.7%
170,100 Chubb Corp. $ 8,505,000
79,500 Hartford Steam Boiler Inspection & Insurance Co. 3,428,438
240,500 Safeco Corp. 9,078,875
113,100 St. Paul Companies, Inc. 6,149,812
--------------
$ 27,162,125
--------------
Real Estate - 1.7%
311,523 The Rouse Co. $ 7,904,896
--------------
Total Financial $101,472,296
--------------
Services - 6.1%
Pharmaceuticals - 5.3%
68,300 Abbott Laboratories $ 3,457,688
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
Pharmaceuticals (continued)
50,000 Bristol-Myers Squibb Co. $ 5,287,500
255,400 Schering-Plough Corp. 16,345,600
--------------
$25,090,788
--------------
Publishing - 0.8%
80,000 The McGraw-Hill Co., Inc. $ 3,750,000
--------------
Total Services $28,840,788
--------------
Technology - 3.2%
Business Machines - 3.2%
109,900 Diebold, Inc. $ 6,319,250
200,600 Hewlett-Packard Co. 8,851,475
1,000 IBM Corp. 129,000
--------------
Total Technology $15,299,725
--------------
Transportation - 2.1%
Railroads - 2.1%
82,700 Conrail, Inc. $ 7,866,837
21,600 Norfolk Southern Corp. 1,925,100
--------------
Total Transportation $ 9,791,937
--------------
Utilities - 27.1%
Electric Utility - 7.0%
147,100 Allegheny Power Systems, Inc. $ 4,394,613
101,500 Baltimore Gas & Electric Co. 2,765,875
141,400 Dominion Resources, Inc. 5,337,850
180,300 DPL, Inc. 4,304,663
200,000 DQE, Inc. 5,750,000
134,100 DTE Energy Co. 4,039,762
100,000 Kansas City Power & Light Co. 2,750,000
50,000 New York State Electric & Gas Co. 1,043,750
100,000 Western Resources, Inc. 3,000,000
--------------
$33,386,513
--------------
Gas Utility - 4.7%
110,500 The Brooklyn Union Gas Co. $ 3,204,500
72,500 Consolidated Natural Gas Co. 3,851,563
50,000 El Paso Natural Gas Co. 2,425,000
60,000 Equitable Resources, Inc. 1,725,000
110,950 Indiana Energy, Inc. 2,718,275
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
Gas Utility (continued)
108,800 NICOR, Inc. $ 3,794,400
12,500 Peoples Energy Corp. 440,625
115,000 Public Service Co. of North Carolina, Inc. 2,070,000
60,000 Questar Corp. 2,160,000
--------------
$ 22,389,363
--------------
Utility-Other - 0.7%
150,400 American Water Works Co., Inc. $ 3,064,400
--------------
Telecommunications - 14.7%
275,500 Aliant Communications Inc. $ 4,476,875
227,000 Ameritech Corp. 12,428,250
141,100 Bell Atlantic Corp. 8,501,275
158,200 Bellsouth Corp. 6,446,650
169,700 Frontier Corp. 4,921,300
134,000 GTE Corp. 5,644,750
166,500 NYNEX Corp. 7,409,250
283,000 SBC Communications, Inc. 13,760,875
199,877 U.S. West Communication Group 6,071,264
--------------
$ 69,660,489
--------------
12,191,100 Total Utilities $128,500,765
--------------
Total Common Stocks (Cost $413,008,578) $473,073,169
--------------
TOTAL INVESTMENT IN SECURITIES
(Cost $413,978,448) (a) $474,068,794
--------------
</TABLE>
+ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company.
(a) At October 31, 1996, the net unrealized gain on investments based on cost
for federal income tax purposes of $413,100,636 was as follows:
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $68,910,838
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (7,942,680)
-------------
Net unrealized gain $60,968,158
-------------
Purchases and sales of securities (excluding temporary cash investments) for
the year ended October 31, 1996, aggregated $308,803,379 and $186,875,974,
respectively.
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
Pioneer Equity-Income Fund
BALANCE SHEET 10/31/96
ASSETS:
Investment in securities, at value (cost $413,978,448) $474,068,794
Cash 196,987
Receivables -
Fund shares sold 947,792
Dividends 1,594,018
Other 6,791
--------------
Total assets $476,814,382
--------------
LIABILITIES:
Payables -
Investment securities purchased $ 718,700
Fund shares repurchased 305,947
Dividends 575
Due to affiliates 513,128
Accrued expenses 90,978
--------------
Total liabilities $ 1,629,328
--------------
NET ASSETS:
Paid-in capital $391,430,582
Accumulated undistributed net investment income 1,465,184
Accumulated undistributed net realized gain on investments 22,198,942
Net unrealized gain on investments 60,090,346
--------------
Total net assets $475,185,054
--------------
Net Asset Value Per Share:
(Unlimited number of shares authorized)
Class A - (based on $336,384,316/16,516,465 shares) $ 20.37
--------------
Class B - (based on $134,656,734/6,647,149 shares) $ 20.26
--------------
Class C - (based on $4,144,004/204,609 shares) $ 20.25
--------------
Maximum Offering Price:
Class A $ 21.61
--------------
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
Pioneer Equity-Income Fund
STATEMENT OF OPERATIONSr
For the Year Ended 10/31/96
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends $16,140,773
Interest 251,656
------------
Total investment income $16,392,429
-------------
EXPENSES:
Management fees $ 2,586,845
Transfer agent fees
Class A 585,577
Class B 210,129
Class C 3,747
Distribution fees
Class A 752,607
Class B 1,024,442
Class C 14,924
Accounting 73,785
Custodian fees 65,779
Registration fees 175,229
Professional fees 49,276
Printing 57,273
Fees and expenses of nonaffiliated trustees 20,907
Miscellaneous 25,222
------------
Total expenses $ 5,645,742
Less fees paid indirectly (59,470)
-------------
Net expenses $ 5,586,272
-------------
Net investment income $10,806,157
-------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $22,257,590
Change in net unrealized gain on investments 21,475,903
-------------
Net gain on investments $43,733,493
-------------
Net increase in net assets resulting from operations $54,539,650
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
Pioneer Equity-Income Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended 10/31/96 and 10/31/95
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/96 10/31/95
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 10,806,157 $ 7,581,927
Net realized gain on investments 22,257,590 2,578,622
Change in net unrealized gain on investments 21,475,903 35,460,573
-------------- ----------------
Net increase in net assets resulting from operations $ 54,539,650 $ 45,621,122
-------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A ($0.50 and $0.53 per share, respectively) $ (7,706,730) $ (6,559,110)
Class B ($0.38 and $0.45 per share, respectively) (2,015,151) (866,524)
Class C ($0.27 per share) (28,635) -
Net realized gain:
Class A ($0.14 and $0.40 per share, respectively) (2,023,143) (4,472,881)
Class B ($0.14 and $0.40 per share, respectively) (557,724) (399,279)
-------------- ----------------
Total distributions to shareholders $(12,331,383) $(12,297,794)
-------------- ----------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $199,692,732 $136,750,005
Reinvestment of distributions 11,274,526 11,369,138
Cost of shares repurchased (88,404,621) (59,634,245)
-------------- ----------------
Net increase in net assets resulting from fund share
transactions $122,562,637 $ 88,484,898
-------------- ----------------
Net increase in net assets $164,770,904 $121,808,226
NET ASSETS:
Beginning of year 310,414,150 188,605,924
-------------- ----------------
End of year (including accumulated undistributed net
investment income of $1,465,184 and $474,567,
respectively) $475,185,054 $310,414,150
-------------- ----------------
</TABLE>
<TABLE>
<CAPTION>
'96 Shares '96 Amount '95 Shares '95 Amount
<S> <C> <C> <C> <C>
Class A
Shares sold 5,764,800 $112,159,968 5,290,568 $ 87,988,000
Reinvestment of distributions 462,438 8,968,423 645,020 10,214,521
Less shares repurchased (3,433,149) (66,861,714) (3,101,300) (51,919,543)
------------ ------------- ------------ --------------
Net increase 2,794,089 $ 54,266,677 2,834,288 $ 46,282,978
------------ ------------- ------------ --------------
Class B
Shares sold 4,304,163 $ 83,465,277 2,941,211 $ 48,762,005
Reinvestment of distributions 118,318 2,285,275 71,617 1,154,617
Less shares repurchased (1,104,135) (21,455,557) (468,458) (7,714,702)
------------ ------------- ------------ --------------
Net increase 3,318,346 $ 64,294,995 2,544,370 $ 42,201,920
------------ ------------- ------------ --------------
Class C*
Shares sold 208,040 $ 4,067,487
Reinvestment of distributions 1,066 20,828
Less shares repurchased (4,497) (87,350)
------------ -------------
Net increase 204,609 $ 4,000,965
------------ -------------
</TABLE>
*Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
Pioneer Equity-Income Fund
FINANCIAL HIGHLIGHTS 10/31/96
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended
10/31/96 10/31/95 10/31/94
<S> <C> <C> <C>
CLASS A
Net asset value, beginning of year $ 18.22 $ 16.16 $ 16.92
---------- ---------- ----------
Increase (decrease) from investment operations:
Net investment income $ 0.55 $ 0.54 $ 0.55
Net realized and unrealized gain (loss) on investments 2.24 2.45 (0.54)
---------- ---------- ----------
Net increase from investment operations $ 2.79 $ 2.99 $ 0.01
Distributions to shareholders from:
Net investment income (0.50) (0.53) (0.54)
Net realized gain (0.14) (0.40) (0.23)
---------- ---------- ----------
Net increase (decrease) in net asset value $ 2.15 $ 2.06 $ (0.76)
---------- ---------- ----------
Net asset value, end of year $ 20.37 $ 18.22 $ 16.16
---------- ---------- ----------
Total return* 15.53% 19.51% 0.09%
Ratio of net expenses to average net assets 1.19%+ 1.29%+ 1.24%
Ratio of net investment income to average net assets 2.85%+ 3.26%+ 3.43%
Portfolio turnover rate 47% 13% 27%
Average commission rate paid(1) $ 0.0585 - -
Net assets, end of year (in thousands) $336,384 $249,981 $175,943
Ratios assuming no waiver of management fees and assumption of
expenses by PMC and no reduction for fees paid indirectly:
Net expenses - - -
Net investment income - - -
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.18% 1.27% -
Net investment income 2.86% 3.28% -
</TABLE>
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/93 10/31/92
<S> <C> <C>
CLASS A
Net asset value, beginning of year $ 14.56 $ 13.25
---------- ----------
Increase (decrease) from investment operations:
Net investment income $ 0.50 $ 0.52
Net realized and unrealized gain (loss) on investments 2.46 1.57
---------- ----------
Net increase from investment operations $ 2.96 $ 2.09
Distributions to shareholders from:
Net investment income (0.50) (0.56)
Net realized gain (0.10) (0.22)
---------- ----------
Net increase (decrease) in net asset value $ 2.36 $ 1.31
---------- ----------
Net asset value, end of year $ 16.92 $ 14.56
---------- ----------
Total return* 20.71% 16.53%
Ratio of net expenses to average net assets 1.33% 1.73%
Ratio of net investment income to average net assets 3.20% 4.01%
Portfolio turnover rate 14% 18%
Average commission rate paid(1) - -
Net assets, end of year (in thousands) $143,025 $39,269
Ratios assuming no waiver of management fees and assumption of
expenses by PMC and no reduction for fees paid indirectly:
Net expenses - 1.77%
Net investment income - 3.97%
Ratios assuming reduction for fees paid indirectly:
Net expenses - -
Net investment income - -
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
year, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each year and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratios assuming no reduction for fees paid indirectly.
(1) Amount represents the rate of commission paid per share on the Fund's
exchange listed security transactions.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
Pioneer Equity-Income Fund
FINANCIAL HIGHLIGHTS 10/31/96
<TABLE>
<CAPTION>
Year Ended Year Ended 4/4/94 to
10/31/96 10/31/95 10/31/94
<S> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 18.15 $ 16.14 $ 15.46
---------- ---------- ----------
Increase from investment operations:
Net investment income $ 0.41 $ 0.45 $ 0.21
Net realized and unrealized gain
on investments 2.22 2.41 0.71
---------- ---------- ----------
Net increase from investment operations $ 2.63 $ 2.86 $ 0.92
Distributions to shareholders:
From net investment income (0.38) (0.45) (0.21)
In excess of net investment income - - (0.03)
From net realized gain (0.14) (0.40) -
---------- ---------- ----------
Net increase in net asset value $ 2.11 $ 2.01 $ 0.68
---------- ---------- ----------
Net asset value, end of period $ 20.26 $ 18.15 $ 16.14
---------- ---------- ----------
Total return* 14.70% 18.64% 5.93%
Ratio of net expenses to average net assets 1.95%+ 2.02%+ 1.92%**
Ratio of net investment income to average net
assets 2.06%+ 2.35%+ 2.35%**
Portfolio turnover rate 47% 13% 27%
Average commission rate paid(1) $ 0.0585 - -
Net assets, end of period (in thousands) $134,657 $60,433 $12,663
Ratios assuming reduction of fees paid indirectly:
Net expenses 1.94% 1.98% -
Net investment income 2.07% 2.39% -
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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 sale charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
(1) Amount represents the rate of commission paid per share on the Fund's
exchange listed security transactions.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
Pioneer Equity-Income Fund
FINANCIAL HIGHLIGHTS 10/31/96
1/31/96 to
10/31/96
CLASS C(a)
Net asset value, beginning of period $ 19.49
-----------
Increase from investment operations:
Net investment income $ 0.27
Net realized and unrealized gain on investments 0.76
-----------
Net increase from investment operations $ 1.03
Distributions to shareholders from:
Net investment income (0.27)
-----------
Net increase in net asset value $ 0.76
-----------
Net asset value, end of period $ 20.25
-----------
Total return* 5.34%
Ratio of net expenses to average net assets 1.98%**+
Ratio of net investment income to average net assets 1.91%**+
Portfolio turnover rate 47%
Average commission rate paid(1) $0.0585
Net assets, end of period (in thousands) $ 4,144
Ratios assuming reduction of fees paid indirectly:
Net expenses 1.94%**
Net investment income 1.95%**
(a) Class C shares were first publicly offered on January 31, 1996.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of 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 sale charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
(1) Amount represents the rate of commission paid per share on the Fund's
exchange listed security transactions.
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
Pioneer Equity-Income Fund
NOTES TO FINANCIAL STATEMENTS 10/31/96
1. Organization and Significant Accounting Policies
Pioneer Equity-Income Fund (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 investment objectives of the Fund are current income
and long-term growth of capital.
The Fund offers three classes of shares - Class A, Class B and Class C
shares. Class C shares were first publicly offered on January 31, 1996.
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. 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 Board of Trustees. Dividend
income is recorded on the ex-dividend date and interest income is recorded on
the accrual basis. Temporary cash investments are valued at amortized cost.
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
20
<PAGE>
that have the highest cost and also qualify for long-term capital gain or
loss treatment for tax purposes.
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.
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.
At October 31, 1996, the Fund has reclassified $65,024 from accumulated
undistributed net investment income to accumulated undistributed net realized
gain. The 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. Fund Shares
The Fund records sales and repurchases of its 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 $398,178 in
underwriting commissions on the sale of fund shares during the year ended
October 31, 1996.
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.
21
<PAGE>
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.
2. Management Agreement
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.
In addition, under the management agreement, certain other services and
costs, including accounting, regulatory reporting and insurance premiums, are
paid by the Fund. At October 31, 1996, $259,611 was payable to PMC related to
management fees and certain other services.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in
due to affiliates is $67,385 in transfer agent fees payable to PSC at October
31, 1996.
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
PFD a service fee of up to 0.25% 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
$186,132 in distribution fees payable to PFD at October 31, 1996.
In addition, redemptions of each class of shares may be subject to a
contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
certain net asset value purchases of Class A shares that are redeemed
22
<PAGE>
within one year of purchase. Class B shares that are redeemed within six
years of purchase are subject to a CDSC at declining rates beginning at 4.0%,
based on the lower of cost or market value of shares being redeemed.
Redemptions of Class C shares within one year of purchase are subject to a
CDSC of 1.00%. Proceeds from the CDSC are paid to PFD. For the year ended
October 31, 1996, CDSC in the amount of $167,707 was paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the year ended October 31, 1996,
the Fund's expenses were reduced by $59,470 under such arrangements.
6. Affiliated Companies
The Fund's investments in certain companies 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 October 31, 1996:
Dividend
Affiliates Purchases Sales Income Value
- -------------------- ----------- ------- --------- ------------
The Gorman-Rupp Co. $5,902,512 $ - $241,452 $7,652,659
----------- ------- --------- ------------
$5,902,512 $ - $241,452 $7,652,659
----------- ------- --------- ------------
23
<PAGE>
Pioneer Equity-Income Fund
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and the Board of Trustees of
Pioneer Equity-Income Fund:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Equity-Income Fund (one of the portfolios
constituting Pioneer Growth Trust) as of October 31, 1996, 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 October 31, 1996, 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 Equity-Income Fund (of Pioneer Growth Trust) as of October 31, 1996,
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
December 4, 1996
24
<PAGE>
Pioneer Equity-Income Fund
TAX TREATMENT OF DISTRIBUTIONS
Made during the Year Ended 10/31/96
During the year ended October 31, 1996, Pioneer Equity-Income Fund paid the
following distributions per share:
Net
Realized Gain
-------------------------
Net
Investment
Record Date Payment Date Income Short-Term Long-Term
CLASS A:
12/20/95 12/28/95 $0.127 $0.001 $0.141
3/19/96 3/29/96 0.120 - -
6/18/96 6/30/96 0.120 - -
9/19/96 9/30/96 0.130 - -
---------- ----------- -----------
Total $0.497 $0.001 $0.141
---------- ----------- -----------
CLASS B:
12/20/95 12/28/95 $0.115 $0.001 $0.141
3/19/96 3/29/96 0.090 - -
6/18/96 6/30/96 0.090 - -
9/19/96 9/30/96 0.090 - -
---------- ----------- -----------
Total $0.385 $0.001 $0.141
---------- ----------- -----------
CLASS C:
3/19/96 3/29/96 $0.090 - -
6/18/96 6/30/96 0.090 - -
9/19/96 9/30/96 0.090 - -
---------- ----------- -----------
Total $0.270 - -
---------- ----------- -----------
On a per share basis, distributions of $0.001 from short-term capital gain
should be reported as ordinary income.
Corporate shareholders may deduct up to 70% of qualifying dividends received
during the year. For purposes of computing the exclusion, 100% of the
distributions from net investment income represents qualifying dividends.
Shareholders who elected to take the Capital Gain Distribution in additional
shares of the Fund should report the distribution as explained above. The tax
cost of the shares received on December 28, 1995 are $19.02 and $18.95 per
share for Class A and Class B shares, respectively.
The Fund hereby designates $20,515,085 as a capital gain dividend for the
purposes of the dividend paid deduction.
25
<PAGE>
Pioneer Equity-Income Fund
TRUSTEES' FEES AND SHARE OWNERSHIP 10/31/96
Trustees' Fees, Principal Shareholders and Share
Ownership of Trustees and Officers (Unaudited)
The aggregate remuneration paid by the Fund to nonaffiliated trustees and
officers during the year ended October 31, 1996 was $15,445, plus expenses
incurred in attending trustees meetings of $3,284. Fees of trustees who are
affiliated with or "interested persons" of Pioneering Management Corporation
and Pioneer Funds Distributor, Inc., investment adviser and principal
underwriter, respectively, of the Fund ($300 in 1996) are reimbursed to the
Fund by Pioneering Management Corporation in accordance with the management
agreement with the Fund. At October 31, 1996, the trustees and officers of
the Fund owned beneficially 25,120 of Class A shares of the Fund (0.15% 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 14% of the outstanding shares of capital stock at
October 31, 1996.
26
<PAGE>
Pioneer Equity-Income Fund
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
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
Officers
John F. Cogan, Jr., Chairman and President
David D. Tripple, Executive Vice President
John A. Carey, Vice President
William H. Keough, Treasurer
Joseph P. Barri, Secretary
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr
27
<PAGE>
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
Your investment representative can give you additional information on
Pioneer's programs and services. If you want to order literature on any of
the following items directly, simply call Pioneer at 1-800-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund
share prices, yields, dividends and distributions, as well as information
about your own account. Simply call 1-800-225-4321. For specific account
information, have your 13-digit account number and four-digit personal
identification number at hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as
you meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a
long-term investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
28
<PAGE>
Automatic Exchange Program
A simple way to move money from a money market or bond fund into a stock fund
over a period of time. Just invest a lump sum in a Pioneer money market fund
or bond fund. Then, select the Pioneer equity fund or funds you wish to
invest in, and choose the amounts and dates for Pioneer to sell shares of
your money market or bond fund and use the proceeds to buy shares of the
Pioneer equity fund you have chosen. Over time, your original investment will
be shifted to your Pioneer equity fund.
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 only for accounts with a value of
$10,000 or more.)
29
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us
for assistance or information.
You can 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
Or write to us at:
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)
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer logo]
Pioneer Funds Distributor, Inc.
60 State Street
Boston, Massachusetts 02109
1296-3830
(c) Pioneer Funds Distributor, Inc.
[recycled logo] Printed on Recycled Paper
