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Pioneer Gold Shares
SEMIANNUAL REPORT 4/30/97
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Table of Contents
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Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 11
Notes to Financial Statements 17
Report of Independent Public Accountants 23
Trustees, Officers and Service Providers 24
Programs and Services for Pioneer Shareowners 26
The Pioneer Family of Mutual Funds 29
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Pioneer Gold Shares
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Letter from the Chairman 4/30/97
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Dear Shareowner,
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It is with pleasure that I introduce this report for Pioneer Gold Shares,
covering the first half of its 1997 fiscal year.
It was an active period for gold and gold-related stocks, reflecting the type of
fast-paced change inherent to this sector. As we have seen increasingly in
recent years, perceptions of supply and demand drove this market, as inflation
around the globe, by and large, holds at low levels. After its periodic rallies
in 1995, the price of bullion sank back down to around $340 an ounce, near the
same level we saw in 1993.
Your Fund continued to focus on established mining operations, rather than
exploration companies, a strategy that proved especially prudent as the period
progressed. We continue to believe that a stock should be purchased because it
represents a good value for a company with strong growth prospects over time -
not just because its price is rapidly increasing.
I urge you to read on to learn more about your Fund and how your investment team
was able to generate good results over the past six months, relative to the
overall decline in the price of bullion and gold-related stocks. Please contact
your investment representative, or us at 1-800-225-6292, if you have questions
your investment in Pioneer Gold Shares. Thank you for your support.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
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Pioneer Gold Shares
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PORTFOLIO SUMMARY 4/30/97
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[The following table was represented as a pie graph in the printed material]
U.S. Common Stocks 44%
International Common Stocks 34%
Depositary Receipts for International Stocks 14%
Short-Term Cash Equivalents 8%
Geographical Distribution
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(As a percentage of equity holdings)
[The following table was represented as a pie graph in the printed material]
United States 47%
Canada 28%
South Africa 13%
Australia 10%
Ghana 2%
10 Largest Holdings
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(As a percentage of equity holdings)
1. Getchell Gold Corp. 6.67%
2. Newmont Mining Corp. 6.58
3. Battle Mountain Gold Co. 6.40
4. Homestake Mining Co. 5.71
5. Freeport-McMoRan Copper 5.57
& Gold Inc. (Class A)
6. Barrick Gold Corp. 5.37
7. Placer Dome, Inc. 5.09
8. VAAL Reefs Explor. 4.66
& Mining Co., Ltd (A.D.R.)
9. Kloof Gold Mining Co., Ltd. 4.28
10. TVX Gold Inc. 4.24
Fund holdings will vary for other periods.
2
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Pioneer Gold Shares
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PERFORMANCE UPDATE 4/30/97 CLASS A SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 4/30/97 10/31/96
$6.54 $7.81
Distributions per Share Income Short-Term Long-Term
(10/31/96 - 4/30/97) Dividends Capital Gains Capital Gains
- - $0.089
Investment Returns
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The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Gold Shares at public offering price, compared to the growth of the
Standard & Poor's 500 Index.
Average Annual Total Returns
(As of April 30, 1997)
Net Asset Public Offering
Period Value Price*
Life-of-Fund 0.08% -0.78%
(7/25/90)
5 Years 7.22 5.98
1 Year -25.22 -29.52
* Reflects deduction of the maximum 5.75% sales charge at the beginning of
the period and assumes reinvestment of distributions at net asset value.
[The following table was represented as a mountain chart in the printed
material]
Growth of
$10,000
Pioneer Gold Shares* Standard & Poor's 500 Index
-------------------- ---------------------------
7/25/90 9,425 10,000
10/31/90 7,614 8,597
4/30/91 7,329 10,794
10/31/91 7,643 11,477
4/30/92 6,691 12,311
10/31/92 7,207 12,616
4/30/93 9,170 13,446
10/31/93 10,660 14,494
4/30/94 10,588 14,162
10/31/94 11,376 15,055
4/30/95 10,688 16,628
10/31/95 9,743 19,023
4/30/96 12,680 21,639
10/31/96 11,190 23,593
4/30/97 9,482 27,073
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
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Pioneer Gold Shares
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PERFORMANCE UPDATE 4/30/97 CLASS B SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 4/30/97 10/31/96
$6.38 $7.65
Distributions per Share Income Short-Term Long-Term
(10/31/96 - 4/30/97) Dividends Capital Gains Capital Gains
- - $0.089
Investment Returns
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The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Gold Shares, compared to the growth of the Standard & Poor's 500 Index.
$19,639
Average Annual Total Returns
(As of April 30, 1997)
If If
Period Held Redeemed*
Life-of-Fund -6.08% -7.00%
(4/4/94)
1 Year -25.86 -28.79
* 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.
[The following table was represented as a mountain chart in the printed
material]
Growth of
$10,000
Pioneer Gold Shares* Standard & Poor's 500 Index
-------------------- ---------------------------
4/4/94 10,000 10,000
4/30/94 9,438 10,273
7/31/94 9,413 10,521
10/31/94 10,077 10,921
1/31/95 8,059 10,956
4/30/95 9,464 12,062
7/31/95 9,719 13,259
10/31/95 8,595 13,800
1/31/96 11,111 15,181
4/30/96 11,124 15,697
7/31/96 9,974 15,443
10/31/96 9,770 17,115
1/31/97 9,049 19,176
4/30/97 8,003 19,639
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
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Pioneer Gold Shares
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PERFORMANCE UPDATE 4/30/97 CLASS C SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 4/30/97 10/31/96
$6.38 $7.65
Distributions per Share Income Short-Term Long-Term
(10/31/96 - 4/30/97) Dividends Capital Gains Capital Gains
- - $0.089
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made in
Pioneer Gold Shares, compared to the growth of the Standard & Poor's 500 Index.
Average Annual Total Returns
(As of April 30, 1997)
If If
Period Held Redeemed*
Life-of-Fund -21.21% -21.21%
(1/31/96)
1 Year -25.77 -25.77
* Assumes reinvestment of distributions. The 1% contingent deferred sales
charge (CDSC) applies to investments sold within one year of purchase.
[The following table was represented as a mountain chart in the printed
material]
Growth of
$10,000
Pioneer Gold Shares* Standard & Poor's 500 Index
-------------------- ---------------------------
1/31/96 10,000 10,000
2/29/96 10,138 10,069
3/31/96 10,034 10,203
4/30/96 10,000 10,340
5/31/96 10,460 10,577
6/30/96 9,069 10,660
7/31/96 8,966 10,172
8/31/96 9,322 10,364
9/30/96 8,770 10,987
10/31/96 8,793 11,274
11/30/96 8,563 12,101
12/31/96 8,516 11,902
1/31/97 8,144 12,632
2/28/97 9,401 12,706
3/31/97 8,144 12,223
4/30/97 7,423 12,937
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
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Pioneer Gold Shares
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PORTFOLIO MANAGEMENT DISCUSSION 4/30/97
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Dear Shareowner,
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The past six months brought home the value of solid research and investment
discipline to many gold-oriented investors. For most of 1996, new,
exploration-oriented companies were the darlings of individuals and institutions
looking for rapid stock price appreciation. The larger, established companies we
tend to prefer for Pioneer Gold Shares were viewed by many as plodding,
unexciting investments.
Established Companies Move to the Fore
That all changed as 1997 progressed. Bre-X, perhaps the most-noticed of the
small companies in 1996 and early 1997, was revealed to have grossly inflated
its announced gold reserves. By the end of April, the company was facing
accusations of fraud, and its stock was de-listed in early May. Investors
abandoned other speculative gold companies in fear that similar news could
emerge about them as well, reversing much of the gains they achieved last year.
As a more reassuring alternative, investors directed their attention to the
"dull," proven operators we have always preferred.
While all this turmoil was taking place in the stock market, the price of gold
came down to levels we hadn't seen since 1993. On April 30, the price of gold
was $339.50 an ounce, its low for the period, down from its high of $383.16 on
November 13, 1996. Your Fund performed relatively well, with Class A Shares
posting a -15.26% six-month total return, and Class B Shares and Class C Shares
both showing a -15.58% return, all at net asset value. Thanks to our emphasis on
proven mining outfits, the Fund outperformed the average -17.99% total return
recorded by the 46 gold-related funds tracked by Lipper Analytical Services for
the six months. (Lipper is an independent firm that reports on mutual fund
performance.)
6
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Pioneer Gold Shares
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Strategies for Reducing Risk
We hold firm to our belief that we must see real, demonstrable value before we
select a company for your Fund's portfolio. In the inherently volatile world of
gold investing, it is one of our strategies for balancing potential risks and
rewards. As the Fund's recent results show, this approach of investing in large,
well-established companies exhibiting positive cash flows and steady reserve
growth can work to soften the impact of market fluctuations.
Your Fund's diversification is another strategy to reduce the risks associated
with gold-related investments. On April 30, the portfolio included 28
established, medium- to large-sized companies. Our value orientation offers a
third way to reduce risk. By virtue of being very conscious of stock valuations
- - the relative value of a stock given its prospects for growth - we attempt to
uncover well-priced companies we believe will demonstrate above-average growth
over time.
Significant portfolio holdings include Getchell Gold (U.S.), the Fund's largest
holding. We added to this proven mining operation during the period. Three other
cornerstones of your Fund - Newmont Mining (U.S.), Battle Mountain Gold (U.S.)
and Homestake Mining (U.S.) - are growing reserves or production faster than the
industry average. Between them, these world-class companies have projects in
Canada, Chile, Nevada and Peru. Targeting experienced firms with development
potential is how we attempt to capture the growth potential that exploration
brings.
Once again, South African stocks underperformed their North American
counterparts. The country is still in transition, and has experienced political
and economic instability. It still is rich in natural resources, however, and we
expect that gold companies based here will get back on track. Anticipation of
poor earnings results for the second quarter recently drove down prices for this
group. We bought additional shares when prices fell, giving the Fund a lower
average cost for these investments. South African holdings in the portfolio are
more volatile than
7
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Pioneer Gold Shares
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PORTFOLIO MANAGEMENT DISCUSSION 4/30/97 (continued)
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other similar gold stocks, rising higher or falling lower relative to a change
in the price of bullion. Given that we expect gold prices may have moved near
their low, this group could add some potential for significant appreciation.
Looking Ahead
So far in fiscal 1997, several factors have combined to push down gold prices.
The U.S. stock market has continued to show exceptional strength, and the U.S.
dollar has remained strong against most major foreign currencies. In addition,
European central banks have sold gold - or rumors have circulated anticipating
their selling - to prepare national balance sheets to meet the criteria for the
upcoming European Monetary Union.
As we look forward, we think we see signs of improvement for the price of gold.
It has already risen for yen-based investors, for example. We think that when we
look back on this point in time, 12 or 18 months from now, we'll see this as a
good time to have built a gold-oriented portfolio.
Respectfully,
/s/ David D. Tripple
David D. Tripple,
Portfolio Manager
8
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Pioneer Gold Shares
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SCHEDULE OF INVESTMENTS 4/30/97
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Shares Value
COMMON STOCKS - 92.1%
Precious Metals - 92.1%
Australia - 9.3%
141,700 Lihir Gold Ltd.* $ 252,879
5,000 Lihir Gold Ltd. (Sponsored A.D.R.)* 182,187
287,700 Newcrest Mining Ltd. 850,510
1,105,832 Normandy Mining Ltd. 1,347,111
165,000 Sons of Gwalia NL 723,347
-----------
$ 3,356,034
-----------
Canada - 25.4%
48,000 Agnico-Eagle Mines Ltd. $ 480,000
79,742 Barrick Gold Corp. 1,784,227
123,200 Cambior, Inc. 1,481,343
38,400 Euro-Nevada Mining Corp. 1,102,248
103,200 Placer Dome, Inc. 1,689,900
29,300 Teck Corp. (Class B) 579,918
250,650 TVX Gold Inc.* 1,409,906
177,400 Viceroy Resources Corp.* 634,932
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$ 9,162,474
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Ghana - 1.8%
55,000 Ashanti Goldfields Co., Ltd. (G.D.R.) $ 653,125
-----------
South Africa - 11.9%
93,900 Driefontein Consolidated Ltd. (A.D.R.) $ 801,089
39,600 Free State Consolidated Gold Mines, Ltd. (A.D 269,775
206,800 Kloof Gold Mining Co., Ltd. (A.D.R.) 1,421,750
15,915 Rustenberg Platinum Holdings Ltd. (A.D.R.) 256,498
263,600 Vaal Reefs Exploration & Mining Co., Ltd. (A.D.R.) 1,548,650
-----------
$ 4,297,762
-----------
The accompanying notes are an integral part of these financial statements. 9
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Pioneer Gold Shares
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SCHEDULE OF INVESTMENTS 4/30/97 (continued)
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Shares Value
United States - 43.7%
13,800 Amax Gold Inc. $ 77,625
369,736 Battle Mountain Gold Co. 2,125,982
14,500 Coeur d'Alene Mines Corp. 199,375
141,900 Echo Bay Mines Ltd. 771,581
66,000 Freeport-McMoRan Copper & Gold Inc. (Class A) 1,848,000
22,200 Freeport-McMoRan Copper & Gold Inc. (Class B) 646,575
57,700 Getchell Gold Corp.* 2,214,237
160,095 Hecla Mining Co.* 860,511
143,190 Homestake Mining Co. 1,897,267
63,113 Newmont Mining Corp. 2,185,288
196,900 Santa Fe Pacific Gold Corp. 2,904,275
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$15,730,716
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Total Precious Metals $33,200,111
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TOTAL COMMON STOCKS
(Cost $38,585,076) $33,200,111
-----------
Principal
Amount
TEMPORARY CASH INVESTMENTS - 7.9%
Commercial Paper - 7.9%
$1,050,000 American Express Co., 5.50%, 5/2/97 $ 1,050,000
852,000 Prudential Securities Group, 5.50%, 5/5/97 852,000
963,000 Ford Motor Credit Co., 5.48, 5/1/97 963,000
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TOTAL TEMPORARY CASH INVESTMENTS
(Cost $2,865,000) $ 2,865,000
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TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $41,450,076) (a) $36,065,111
===========
* Non-income producing security.
(a) At April 30, 1997, the net unrealized loss on investments
based on cost for federal income tax purposes of
$41,450,076 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 2,637,757
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (8,022,722)
-----------
Net unrealized loss $(5,384,965)
===========
Purchases and sales of securities (excluding temporary cash investments) for the
six months ended April 30, 1997 aggregated $6,860,728 and $4,138,742,
respectively.
10 The accompanying notes are an integral part of these financial statements.
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Pioneer Gold Shares
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BALANCE SHEET 4/30/97
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ASSETS:
Investment in securities, at value (including temporary cash
investments of $2,865,000)(cost $41,450,076) $36,065,111
Cash 392
Receivables -
Fund shares sold 348,514
Dividends, interest and foreign taxes withheld 53,099
Other 2,062
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Total assets $36,469,178
-----------
LIABILITIES:
Payables -
Investment securities purchased $ 100,077
Fund shares repurchased 240,744
Due to affiliates 42,842
Accrued expenses 47,937
-----------
Total liabilities $ 431,600
-----------
NET ASSETS:
Paid-in capital $41,484,474
Accumulated net investment loss (29,679)
Accumulated undistributed net realized loss on
investments and foreign currency transactions (32,371)
Net unrealized loss on investments (5,384,965)
Net unrealized gain on other assets and liabilities
denominated in foreign currencies 119
-----------
Total net assets $36,037,578
===========
Net Asset Value Per Share:
(Unlimited number of shares authorized)
Class A (based on $30,251,702/4,625,520 shares) $ 6.54
===========
Class B (based on $4,953,330/776,466 shares) $ 6.38
===========
Class C (based on $832,546/130,580 shares) $ 6.38
===========
Maximum Offering Price:
Class A $ 6.94
===========
The accompanying notes are an integral part of these financial statements. 11
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Pioneer Gold Shares
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STATEMENT OF OPERATIONS
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For the Six Months Ended 4/30/97
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld of $16,559) $ 254,378
Interest 76,165
-----------
Total investment income $ 330,543
-----------
EXPENSES:
Transfer agent fees
Class A 54,996
Class B 7,349
Class C 1,633
Distribution fees
Class A 43,333
Class B 25,071
Class C 4,067
Accounting 41,600
Custodian fees 9,408
Registration fees 32,642
Professional fees 17,845
Printing 9,970
Fees and expenses of nonaffiliated trustees 6,607
Miscellaneous 10,861
----------
Total expenses $ 393,349
Less management fees waived by
Pioneering Management Corporation (30,226)
Less fees paid indirectly (2,901)
-----------
Net expenses $ 360,222
-----------
Net investment loss $ (29,679)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain(loss) from:
Investments $ (21,607)
Forward foreign currency contracts and other
assets and liabilities denominated in foreign
currencies 1,370 $ (20,237)
---------- -----------
Change in net unrealized gain from:
Investments $(6,598,085)
Other assets and liabilities denominated in
foreign currencies 119 $(6,597,966)
---------- -----------
Net loss on investments and foreign currency
transactions $(6,618,203)
-----------
Net decrease in net assets resulting from operations $(6,647,882)
-----------
12 The accompanying notes are an integral part of these financial statements.
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Pioneer Gold Shares
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STATEMENTS OF CHANGES IN NET ASSETS
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For the Six Months Ended 4/30/97 and Year Ended 10/31/96
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
FROM OPERATIONS: 4/30/97 10/31/96
<S> <C> <C>
Net investment loss $ (29,679) $ (83,648)
Net realized gain(loss) on investments and foreign
currency transactions (20,237) 530,995
Change in net unrealized gain or loss on investments
and foreign currency transactions (6,597,966) 2,157,089
------------ ------------
Net increase (decrease) in net assets resulting
from operations $ (6,647,882) $ 2,604,436
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain:
Class A ($0.09 and $0.00 per share, respectively) $ (393,765) $ --
Class B ($0.09 and $0.00 per share, respectively) (56,980) --
Class C ($0.09 and $0.00 per share, respectively) (7,314) --
------------ ------------
Total distributions to shareholders $ (458,059) $ --
============ ============
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 16,613,199 $ 38,017,099
Reinvestment of distributions 396,376
Cost of shares repurchased (16,303,976) (24,357,512)
------------ ------------
Net increase in net assets resulting from
fund share transactions $ 705,599 $ 13,659,587
------------ ------------
Net increase (decrease) in net assets $ (6,400,342) $ 16,264,023
------------ ------------
NET ASSETS:
Beginning of period 42,437,920 26,173,897
------------ ------------
End of period (including accumulated net investment
loss of $29,679 and $0, respectively) $ 36,037,578 $ 42,437,920
============ ============
</TABLE>
<TABLE>
<CAPTION>
Class A '97 Shares '97 Amount '96 Shares '96 Amount
<S> <C> <C> <C> <C>
Shares sold 1,491,203 $11,245,831 3,215,923 $27,245,587
Reinvestment of distributions 46,394 346,561
Less shares repurchased (1,525,350) (11,511,950) (2,190,712) (18,357,489)
---------- ----------- ---------- -----------
Net increase 12,247 $ 80,442 1,025,211 $ 8,888,098
---------- ----------- ---------- -----------
Class B
Shares sold 598,509 $ 4,496,591 1,051,892 $ 8,694,332
Reinvestment of distributions 5,848 42,746
Less shares repurchased (444,932) (3,292,601) (696,779) (5,689,345)
---------- ----------- ---------- -----------
Net increase 159,425 $ 1,246,736 355,113 $ 3,004,987
---------- ----------- ---------- -----------
Class C*
Shares sold 113,824 $ 870,777 260,179 $ 2,077,180
Reinvestment of distributions 967 7,069
Less shares repurchased (205,093) (1,499,425) (39,297) (310,678)
---------- ----------- ---------- -----------
Net increase (90,302) $ (621,579) 220,882 $ 1,766,502
---------- ----------- ---------- -----------
</TABLE>
* Class C shares were first publicly offered on January 31, 1996.
The accompanying notes are an integral part of these financial statements. 13
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Pioneer Gold Shares
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FINANCIAL HIGHLIGHTS 4/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
CLASS A 4/30/97 10/31/96 10/31/95 10/31/94 10/31/93 10/31/92
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.81 $ 6.80 $ 7.94 $ 7.44 $ 5.03 $ 5.35
------- ------- -------- -------- -------- ------
Increase (decrease) from investment operations:
Net investment loss $ (0.01) $ (0.01) $ (0.01) $ (0.03) $ (0.03) $ 0.02
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (1.17) 1.02 (1.13) 0.53 2.44 (0.28)
------- ------- -------- -------- -------- ------
Net increase (decrease) from investment operations $ (1.18) $ 1.01 $ (1.14) $ 0.50 $ 2.41 $(0.30)
Distributions to shareholders from:
Net investment income -- -- -- -- -- (0.02)
Net realized gain (0.09) -- -- -- -- --
------- ------- -------- -------- -------- ------
Net increase (decrease) in net asset value $ (1.27) $ 1.01 $ (1.14) $ 0.50 $ 2.41 $(0.32)
------- ------- -------- -------- -------- ------
Net asset value, end of period $ 6.54 $ 7.81 $ 6.80 $ 7.94 $ 7.44 $ 5.03
======= ======= ======== ======== ======== ======
Total return* (15.26)% 14.85% (14.36)% 6.72% 47.91% 5.70%
Ratio of net expenses to average net assets 1.74%**+ 1.72%+ 1.76%+ 1.75% 1.75% 1.75%
Ratio of net investment loss to average net assets (0.06)%** (0.13)% (0.16)% (0.40) (0.52) (0.35)%
Portfolio turnover rate 23%** 15% 6% 3% 6% 4%
Average commission rate paid (1) $0.0357 $0.0349 -- -- -- --
Net assets, end of period (in thousands) $30,252 $36,028 $ 24,412 $ 26,168 $ 14,057 $3,461
Ratios assuming no waiver of management fees and
assumption of expenses by PMC and no reduction for
fees paid indirectly:
Net expenses 1.89%** 1.88% 2.28% 2.14% 3.23% 6.62%
Net investment loss (0.21)%** (0.29)% (0.68)% (0.79) (2.00) (5.22)%
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction for
fees paid indirectly:
Net expenses 1.72%** 1.71% 1.75% -- -- --
Net investment loss (0.04)%** (0.12)% (0.15)% -- -- --
</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 sales charges were taken into
account.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Year
Ended Ended Ended 4/4/94 to
CLASS B 4/30/97 10/31/96 10/31/95 10/31/94
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.65 $ 6.73 $ 7.89 $ 7.83
-------- -------- -------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.02) $ (0.06) $ (0.05) $ (0.03)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions (1.16) 0.98 (1.11) 0.09
-------- -------- -------- -------
Net increase (decrease) from investment operations $ (1.18) $ 0.92 $ (1.16) $ 0.06
Distributions to shareholders from:
Net realized gain (0.09) -- -- --
-------- -------- -------- -------
Net asset value, end of period $ 6.38 $ 7.65 $ 6.73 $ 7.89
======== ======== ======== =======
Total return* (15.58)% 13.67% (14.70)% 0.77%
Ratio of net expenses to average net assets 2.44%**+ 2.59%+ 2.57%+ 2.67%**
Ratio of net investment loss to average net assets (0.75)%**+ (1.00)%+ (1.01)%+ (1.42)%**
Portfolio turnover rate 23%** 15% 6% 3%
Average commission rate paid(1) $ 0.0357 $ 0.0349 -- --
Net assets, end of period (in thousands) $ 4,953 $ 4,720 $ 1,762 $ 951
Ratios assuming no waiver of management fees and
assumption of expenses by PMC and no reduction for
fees paid indirectly:
Net expenses 2.60%** 2.73% 3.12% 2.79%**
Net investment loss (0.91)%** (1.14)% (1.56)% (1.54)%**
Ratios assuming waiver of management fees and
assumption of expenses by PMC and reduction for
fees paid indirectly:
Net expenses 2.42%** 2.57% 2.53% --
Net investment loss (0.73)%** (0.98)% (0.97)% --
</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 sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/97
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended 1/31/96 to
CLASS C 4/30/97 10/31/96
<S> <C> <C>
Net asset value, beginning of period $ 7.65 $ 8.70
-------- --------
Decrease from investment operations:
Net investment loss $ (0.03) $ (0.02)
Net realized and unrealized loss on investments
and foreign currency transactions (1.15) (1.03)
-------- --------
Net decrease from investment operations $ (1.18) $ (1.05)
Distributions to shareholders from:
Net realized gain (0.09) --
-------- --------
Net asset value, end of period $ 6.38 $ 7.65
======== ========
Total return* (15.58)% (12.07)%
Ratio of net expenses to average net assets 2.60%**+ 2.59%**+
Ratio of net investment loss to average net assets (1.05)%**+ (1.12)%**+
Portfolio turnover rate 23%** 15%
Average commission rate paid(1) $ 0.0357 $ 0.0349
Net assets, end of period (in thousands) $ 833 $ 1,690
Ratios assuming no waiver of management fees
by PMC and no reduction for fees paid indirectly:
Net expenses 2.76%** 2.83%**
Net investment loss (1.21)%** (1.36)%**
Ratios assuming waiver of management fees
by PMC and reduction for fees paid directly:
Net expenses 2.53%** 2.56%**
Net investment loss (0.98)%** (1.09)%**
</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 sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
(1) Amount may fluctuate from period to period as a result of portfolio
transactions executed in different markets where trading practices and
commission rate structures may vary.
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/97
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
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
investment objective of the Fund is to seek long-term capital appreciation.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
Shares of Class A, Class B and Class C each represent an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees and have exclusive voting
rights with respect to the distribution plans that have been adopted by Class A,
Class B and Class C shareholders, respectively.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to, among
other things, make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and
expenses during the reporting periods. Actual results could differ from those
estimates. The following is a summary of significant accounting policies
consistently followed by the Fund, which are in conformity with those generally
accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded on trade date. 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
17
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/97 (continued)
- --------------------------------------------------------------------------------
their fair values as determined by, or under the direction of, the Board of
Trustees. Trading in foreign securities is substantially completed each day
at various times prior to the close of the New York Stock Exchange. The
values of such securities used in computing the net asset value of the Fund's
shares are determined as of such times. Dividend income is recorded on the
ex-dividend date, except that certain dividends from foreign securities where
the ex-dividend date may have passed are recorded as soon as the Fund is
informed of the ex-dividend data in the exercise of reasonable diligence.
Interest income is recorded on the accrual basis, net of unrecoverable
foreign taxes withheld at the applicable country rates. 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 that have
the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
The Fund's investment policies present unique risks to the portfolio's value.
The price of gold and other precious metals may be subject to fluctuations
caused by international monetary and political developments including trade
or currency restrictions, currency devaluation and revaluation, and social
and political conditions within a country. Fluctuations in the prices of gold
and other metals will affect the market values of the securities of the
companies invested by the Fund.
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.
18
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 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.
D. 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 $18,152 in
underwriting commissions on the sale of fund shares during the six months
ended April 30, 1997.
19
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/97 (continued)
- --------------------------------------------------------------------------------
E. 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.
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.
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 and Class C shares
were reduced only to the extent that such expenses were reduced for Class A
shares.
20
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. At April 30, 1997, $20,006 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 $12,196 in transfer agent fees payable to PSC at April 30, 1997.
4. Plan of Distribution
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 $10,640 in distribution fees payable to
PFD at April 30, 1997.
21
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/97 (continued)
- --------------------------------------------------------------------------------
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of purchase.
Class B shares that are redeemed within six years of purchase are subject to a
CDSC at declining rates beginning at 4.0%, based on the lower of cost or market
value of shares being redeemed. Redemptions of Class C shares within one year of
purchase are subject to a CDSC of 1.00%. Proceeds from the CDSC are paid to PFD.
For the six months ended April 30, 1997, CDSCs in the amount of $9,319 were paid
to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the six months ended April 30, 1997,
the Fund's expenses were reduced by $2,901 under such arrangements.
22
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and the Board of Trustees of
Pioneer Gold Shares:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Gold Shares (one of the portfolios constituting Pioneer
Growth Trust) as of April 30, 1997, and the related statement of operations, the
statements of changes in net assets, and the financial highlights for the
periods presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1997, 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 (of Pioneer Growth Trust) as of April 30, 1997, 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
June 2, 1997
23
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
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
Patrick M. Smith, 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 LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
24
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
25
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
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 1-8O0-225-6292.
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.
9O-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.
26
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
divident 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
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.)
27
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
28
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
- --------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds
Global/International
Pioneer Emerging Markets Fund
Pioneer Europe Fund
Pioneer Gold Shares
Pioneer India Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
United States
Pioneer Capital Growth Fund
Pioneer Growth Shares
Pioneer Micro-Cap Fund*
Pioneer Mid-Cap Fund
Pioneer Small Company Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
Income Funds
Taxable
Pioneer America Income Trust
Pioneer Bond Fund
Pioneer Short-Term Income Trust*
Tax-Exempt
Pioneer Intermediate Tax-Free Fund
Pioneer Tax-Free Income Fund
Money Market Fund
Pioneer Cash Reserves Fund
* 0ffers Class A and B Shares only
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, propectuses, 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)
Or visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current Fund prospectus.
[LOGO] Pioneer Funds Distributor, Inc. 0697-4220
60 State Street (C) Pioneer Funds Distributor, Inc.
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