<PAGE>
[PIONEER LOGO]
Pioneer
Capital Growth
Fund
SEMIANNUAL REPORT 4/30/98
<PAGE>
Table of Contents
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 18
Notes to Financial Statements 24
Report of Independent Public Accountants 29
Results of Shareowner Meetings 30
Trustees, Officers and Service Providers 33
</TABLE>
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
LETTER FROM THE CHAIRMAN 4/30/98
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
I am pleased to introduce this semiannual report for Pioneer Capital Growth
Fund, covering the six months ended April 30, 1998. On behalf of your
investment team, I thank you for your interest and this opportunity to comment
on today's investing environment.
The United States economic news continued to be positive, propelling the
domestic stock market to yet another series of record highs. Large
capitalization stocks were the big winners with the Dow Jones Industrial
Average returning over 22% as concerns about the Asian financial crisis drew
investors toward the safety of U.S. "blue chip" companies.
Recently, many of the mid-sized, value-oriented stocks of the type found in
your Fund have not performed as well as larger well-known growth stocks, but
history tells us that markets are cyclical. While it is impossible to predict
the direction of the markets with any degree of certainty, the fact remains
that large company stocks' record-breaking pace has pushed that group's average
price-to-earnings ratio to an all-time high. The rest of the market, on the
other hand, is trading at lower levels. It would not be surprising to see new
trends emerge, as investors search for more reasonable valuations.
We believe that using a solid value approach to choosing stocks -
purchasing them at reasonable prices and holding them until we think they reach
full value - will provide the best opportunity for positive long-term results.
Investors who maintain a diversified portfolio and a long-term perspective have
the potential to weather any short-term risks the market may pose.
I encourage you to read on to learn more about Pioneer Capital Growth Fund. If
you have questions, please contact your investment professional, or Pioneer at
1-800-225-6292.
Respectfully,
/s/ John F. Cogan, Jr.
- ----------------------
John F. Cogan, Jr.,
Chairman and President
1
<PAGE>
Pioneer Capital Growth Fund
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PORTFOLIO SUMMARY 4/30/98
- --------------------------------------------------------------------------------
P o r t f o l i o D i v e r s i f i c a t i o n
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[PIE CHART]
Short-Term Cash Equivalents 2.3%
Depositary Receipts for International Stocks 2.4%
International Common Stocks 3.1%
U.S. Common Stocks 92.2%
S e c t o r D i s t r i b u t i o n
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[PIE CHART]
Other 2%
Energy 4%
Healthcare 9%
Financial 9%
Communication Services 9%
Basic Materials 10%
Capital Goods 12%
Consumer Staples 14%
Technology 15%
Consumer Cyclicals 16%
1 0 L a r g e s t H o l d i n g s
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
- --------------------------------------------------------------------------------
1. McDonald's Corp. 2.42% 6. Hasbro, Inc. 1.92%
- --------------------------------------------------------------------------------
2. NCR Corp. 2.34 7. Telephone and Data 1.84
Systems, Inc.
- --------------------------------------------------------------------------------
3. Viacom, Inc. (Class B) 2.25 8. Frontier Corp. 1.80
(Non-voting)
- --------------------------------------------------------------------------------
4. Columbia/HCA 2.10 9. GTE Corp. 1.75
Healthcare Corp.
- --------------------------------------------------------------------------------
5. 20th Century Industries 2.04 10. Wellman, Inc. 1.69
- --------------------------------------------------------------------------------
</TABLE>
Fund holdings will vary for other periods.
2
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Pioneer Capital Growth Fund
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PERFORMANCE UPDATE 4/30/98 CLASS A SHARES
- --------------------------------------------------------------------------------
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/98 10/31/97
$23.73 $23.23
Income Short-Term Long-Term
Distributions per Share Dividends Capital Gains Capital Gains
(10/31/97 - 4/30/98) $0.104 $0.617 $1.627
</TABLE>
I n v e s t m e n t R e t u r n s
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The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Capital Growth Fund at public offering price, compared to the growth
of the Standard & Poor's 500 Index.
Average Annual Total Returns
(As of April 30, 1998)
<TABLE>
<S> <C> <C>
Net Asset Public Offering
Period Value Price*
Life-of-Fund 18.54% 17.64%
(7/25/90)
5 Years 19.76 18.35
1 Year 31.66 24.06
</TABLE>
* 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 Capital Standard & Poor's
Growth Fund* 500 Index
07/25/90 9425 10000
10/31/90 6732 8597
04/30/91 9470 10794
10/31/90 10395 11477
04/30/92 12315 12311
10/31/92 11526 12616
04/30/93 14341 13446
10/31/93 15743 14494
04/30/94 16752 14162
10/31/94 18738 15055
04/30/95 20575 16628
10/31/95 22348 19023
04/30/96 26375 21639
10/31/96 25292 23593
04/30/97 26832 27073
10/31/97 31026 31168
04/30/98 35328 38170
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 Capital Growth Fund
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PERFORMANCE UPDATE 4/30/98 CLASS B SHARES
- --------------------------------------------------------------------------------
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/98 10/31/97
$23.20 $22.73
Income Short-Term Long-Term
Distributions per Share Dividends Capital Gains Capital Gains
(10/31/97 - 4/30/98) - $0.617 $1.627
</TABLE>
I n v e s t m e n t R e t u r n s
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Capital Growth Fund, compared to the growth of the Standard & Poor's
500 Index.
Average Annual Total Returns
(As of April 30, 1998)
<TABLE>
<S> <C> <C>
If If
Period Held Redeemed*
Life-of-Fund 20.19% 19.91%
(4/4/94)
1 Year 30.73 26.73
</TABLE>
* 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
Pioneer Capital Standard & Poor's
Growth Fund* 500 Index
04/04/94 10000 10000
04/30/94 10321 10273
07/31/94 10489 10521
10/31/94 11513 10921
01/31/95 11396 10956
04/30/95 12589 12062
07/31/95 13789 13259
10/31/95 13633 13800
01/31/96 14640 15181
04/30/96 16019 15697
07/31/96 14726 15443
10/31/96 15306 17115
01/31/97 16635 19176
04/30/97 16168 19639
07/31/97 18791 23490
10/31/97 18627 22610
01/31/98 18477 24332
04/30/98 20937 27689
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 Capital Growth Fund
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PERFORMANCE UPDATE 4/30/98 CLASS C SHARES
- --------------------------------------------------------------------------------
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 4/30/98 10/31/97
$23.15 $22.69
Income Short-Term Long-Term
Distributions per Share Dividends Capital Gains Capital Gains
(10/31/97 - 4/30/98) - $0.617 $1.627
</TABLE>
I n v e s t m e n t R e t u r n s
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Capital Growth Fund, compared to the growth of the Standard & Poor's
500 Index.
Average Annual Total Returns
(As of April 30, 1998)
<TABLE>
<S> <C> <C>
If If
Period Held Redeemed*
Life-of-Fund 17.71% 17.71%
(1/31/96)
1 Year 30.67 30.67
</TABLE>
* Assumes reinvestment of distributions.
The 1% contingent deferred sales charge
(CDSC) applies to redemptions made
within one year of purchase.
[Mountain Chart]
Growth of $10,000
Pioneer Capital Standard & Poor's
Growth Fund* 500 Index
01/31/96 10000 10000
04/30/96 10931 10340
07/31/96 10053 10172
10/31/96 10449 11274
01/31/97 11359 12632
04/30/97 11045 12937
07/31/97 12833 15473
10/31/97 12721 14894
01/31/98 12619 16028
04/30/98 14433 18240
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 Capital Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/98
- --------------------------------------------------------------------------------
Dear Shareowner,
- --------------------------------------------------------------------------------
I am pleased to report on the progress of Pioneer Capital Growth Fund for the
six months through April 30, 1998. As the Fund began its new fiscal year last
November, economic and currency crises in Asia dominated the financial news.
Investors' subsequent "flight to quality"- a rush to the most familiar and
liquid securities they could find--caused them to pay record-high prices for a
relatively small number of large-capitalization stocks while mostly ignoring
smaller stocks.
The Fund's mid-cap size bias hurt its relative performance under these
circumstances. For the six months ending April 30, your Fund's Class A Shares
posted a total return of 13.86%, Class B Shares 13.48% and Class C Shares
13.45%, all at net asset value. While performance in absolute terms was good,
we are disappointed in how the portfolio performed relative to the market as a
whole. The Standard & Poor's 500 Index returned 22.46%, and the 953 growth
funds tracked by Lipper Analytical Services, Inc. generated an average return
of 17.31% (Lipper is an independent research organization). On a positive note,
over the past three months, we began to see substantially enhanced relative
investment performance. At period-end the Fund was fully invested, and we
believe its holdings offer opportunity with less valuation-based risk than the
broader market. In addition, with each day that the market goes higher, we are
further convinced that our long-term investment strategy is prudent, and will
benefit the Fund in the future.
Varied Portfolio Focused on Value
The Fund has investments in many low-priced stocks we think have the potential
for significant capital appreciation over the course of the next few years.
Although recently we have found the most opportunity in mid- and large-sized
companies, we can and do invest in businesses of any size, since our stock
selection is driven by investment potential rather than mar-
6
<PAGE>
Pioneer Capital Growth Fund
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- --------------------------------------------------------------------------------
ket capitalization. We typically look for firms that have some type of
undervalued or hidden assets that can provide some price protection in the
event of a market downturn. Often, although not always, we find these
opportunities in out-of-favor, misunderstood or turn-around companies with
significant cash flow, asset value or earnings power potential. Frequently, a
catalyst such as the sale of an asset or the arrival of new management is
required in order to unlock the hidden value. Many times, the Fund will hold an
undervalued security several years while waiting for the catalyst to appear.
Fund Well Positioned
A great portion (near 75%) of the portfolio is now invested in companies that
were new to the Fund in 1997, thanks to new cash flowing into the Fund. A
number of these new investments have started to come to fruition. McDonald's,
in the portfolio since 1996, is now beginning to show some promise after
restructuring to become more competitive, and its stock is up over 38% since
October. Green Tree Financial's stock price recently doubled, benefiting from
the consolidation trends taking place throughout the world, after it was
purchased by Conseco, a company that remains in the portfolio. As a result, the
Fund's performance improved significantly in the last three months, with all
share classes gaining over 14% at net asset value, slightly ahead of the S&P
500.
Overall, small-cap stocks were a drag on performance. In particular results
were hurt in the first fiscal quarter when a change in management at John H.
Harland triggered a sell-off in the stock. Because we like the improvement in
their basic business and financial status, we used the price decline to
increase holdings in what we saw as a very undervalued company.
7
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 4/30/98 (continued)
- --------------------------------------------------------------------------------
Further, oil-related holdings suffered as oil prices weakened significantly in
the latter part of 1997. As is our style, we continued to select stocks as
their prices fell, including Seagull Energy and Union Texas Petroleum Holdings.
Finally, prices of technology stocks came down as investors moved away from the
group because of the perceived threat of a slow-down in Asian economies. These
areas of weakness were partially offset, however, by strong gains by larger
holdings; for example Viacom rose over 35% in the past three months.
Looking Forward
As we move into the second half of the fiscal year, the portfolio remains well
diversified, both in terms of sectors and the size of companies. We are
encouraged by recent performance and the way the Fund's investment discipline
is again proving its value. We believe that well-valued stocks offer some of
the most attractive equity investments available today, and are optimistic
about the Fund's prospects.
Respectfully,
/s/ J. Rodman Wright
- --------------------
J. Rodman Wright,
Portfolio Manager
8
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/98
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
INVESTMENT IN SECURITIES - 97.7%
PREFERRED STOCK - 0.6%
990,000 Aracruz Cellulose SA (Sponsored A.D.R.) $ 15,592,500
------------
Total Preferred Stock
(Cost $16,830,638) $ 15,592,500
------------
COMMON STOCKS - 97.1%
Basic Materials - 9.0%
Chemicals - 1.2%
1,300,000 The Geon Co.+ $ 31,037,500
------------
Chemicals (Specialty) - 2.4%
2,250,000 Agrium, Inc. $ 35,296,875
990,000 Borden Chemicals & Plastics, L.P. 6,620,625
946,900 NL Industries, Inc.* 21,364,431
------------
$ 63,281,931
------------
Gold & Precious Metals Mining - 1.1%
725,000 Newmont Mining Corp. $ 23,335,937
1,600,200 TVX Gold Inc.* 6,500,813
------------
$ 29,836,750
------------
Iron & Steel - 0.9%
1,925,000 LTV Corp. $ 25,025,000
------------
Metals Mining - 0.3%
450,000 Freeport-McMoRan Copper & Gold Inc. $ 8,015,625
------------
Paper & Forest Products - 3.1%
650,000 Bowater, Inc. $ 36,359,375
200,000 Consolidated Papers, Inc. 13,237,500
1,425,000 Louisiana-Pacific Corp. 31,171,875
------------
$ 80,768,750
------------
Total Basic Materials $237,965,556
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/98 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Capital Goods - 11.3%
Electrical Equipment - 3.1%
312,800 Belden, Inc. $ 12,961,650
425,000 Philips Electronics NV (NY Shares) 38,250,000
1,650,000 Vishay Intertechnology, Inc.* 30,215,625
------------
$ 81,427,275
------------
Engineering & Construction - 1.2%
2,551,800 Morrison Knudsen Corp.* $ 30,462,112
------------
Manufacturing (Diversified) - 2.5%
400,000 Corning, Inc. $ 16,000,000
730,000 Raychem Corp. 29,336,875
740,000 U.S. Industries, Inc. 20,072,500
------------
$ 65,409,375
------------
Metal Fabricators - 2.8%
635,000 Avondale Industries, Inc.* $ 17,065,625
850,000 Brush Wellman, Inc.+ 23,162,500
1,225,000 CommScope, Inc.* 19,906,250
800,000 Park Ohio Industries, Inc.*+ 14,700,000
------------
$ 74,834,375
------------
Office Equipment & Supplies - 0.4%
660,000 Moore Corporation Ltd. $ 10,353,750
------------
Waste Management - 1.3%
1,050,000 Waste Management, Inc. $ 35,175,000
------------
Total Capital Goods $297,661,887
------------
Communication Services - 8.3%
Telecommunications (Long Distance) - 1.4%
550,000 Sprint Corp. $ 37,571,875
------------
Telephone - 6.9%
275,000 Bell Atlantic Corp. $ 25,729,688
1,581,350 Citizens Utilities Co. (Class B)* 16,011,169
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Telephone - (continued)
1,550,000 Frontier Corp. $ 46,403,125
775,000 GTE Corp. 45,289,062
1,000,000 Telephone and Data Systems, Inc. 47,500,000
------------
$180,933,044
------------
Total Communication Services $218,504,919
------------
Consumer Cyclicals - 15.6%
Auto Parts & Equipment - 1.3%
925,000 ITT Industries $ 33,704,688
------------
Automobiles - 0.9%
900,000 Republic Industries, Inc.* $ 25,031,250
------------
Building Materials - 0.3%
974,700 The Lamson & Sessions Co.*+ $ 7,249,331
------------
Consumer (Jewelry, Novelties & Gifts) - 0.6%
688,600 Jostens, Inc. $ 16,311,212
------------
Household Furniture & Appliances - 0.6%
385,600 Harman International Industries, Inc. $ 16,580,800
------------
Leisure Time (Products) - 2.7%
1,129,700 Arctic Cat Inc.+ $ 11,297,000
354,000 Callaway Golf Co. 9,646,500
1,350,000 Hasbro, Inc. 49,696,875
------------
$ 70,640,375
------------
Publishing - 0.4%
803,800 PRIMEDIA, Inc.* $ 11,454,150
------------
Retail (Specialty) - 2.8%
385,000 Cole National Corp.* $ 14,317,187
1,293,500 Pep Boys - Manny, Moe & Jack 28,133,625
1,350,000 Woolworth Corp.* 31,050,000
------------
$ 73,500,812
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/98 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Textiles (Apparel) - 4.0%
900,000 Fruit of the Loom, Inc.* $ 33,637,500
1,590,000 Justin Industries+ 24,843,750
700,000 Reebok International Ltd.* 20,562,500
1,643,500 The Stride Rite Corp. 20,646,469
1,630,000 Tultex Corp.*+ 5,501,250
------------
$105,191,469
------------
Textiles (Home Furnishings) - 0.4%
1,263,500 Worldtex, Inc.*+ $ 9,634,188
------------
Textiles (Specialty) - 1.6%
1,925,000 Wellman, Inc.+ $ 43,553,125
------------
Total Consumer Cyclicals $412,851,400
------------
Consumer Staples - 13.8%
Entertainment - 2.2%
1,000,000 Viacom, Inc. (Class B) (Non-voting)* $ 58,000,000
------------
Foods - 1.0%
1,325,000 Tyson Foods, Inc. $ 25,589,063
------------
Household Products (Non-Durables) - 1.6%
575,000 Dial Corp. $ 14,015,625
300,000 Kimberly Clark Corp. 15,225,000
885,000 The Rival Co.+ 14,215,312
------------
$ 43,455,937
------------
Housewares - 1.2%
1,175,000 Tupperware Corp. $ 31,798,437
------------
Restaurants - 3.9%
644,000 Darden Restaurants, Inc. $ 10,304,000
1,450,000 Lone Star Steakhouse & Saloon, Inc.* 30,812,500
1,010,500 McDonald's Corp. 62,524,688
------------
$103,641,188
------------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Retail Stores (Food Chains) - 0.9%
750,000 The Great Atlantic & Pacific Tea Co., Inc. $ 23,343,750
------------
Services (Employment) - 1.8%
957,800 The Loewen Group, Inc. $ 27,177,575
500,000 Manpower, Inc. 22,031,250
------------
$ 49,208,825
------------
Specialty Printing - 1.2%
1,736,400 John H. Harland Co.+ $ 30,929,625
------------
Total Consumer Staples $365,966,825
------------
Energy - 4.3%
Oil (Domestic Integrated) - 1.5%
515,000 Atlantic Richfield Co. $ 40,170,000
------------
Oil & Gas (Drilling & Equipment) - 1.0%
500,000 ENSCO International, Inc. $ 14,125,000
325,000 Tidewater, Inc. 12,878,125
------------
$ 27,003,125
------------
Oil & Gas (Exploration/Production) - 1.8%
450,000 Oryx Energy Co.* $ 11,756,250
650,000 Seagull Energy Corp.* 11,090,625
450,000 Union Pacific Resources Group, Inc. 10,743,750
600,000 Union Texas Petroleum Holdings, Inc. 12,112,500
------------
$ 45,703,125
------------
Total Energy $112,876,250
------------
Financial - 9.2%
Consumer Finance - 1.3%
829,500 Green Tree Financial Corp. $ 33,802,125
------------
Financial (Diversified) - 1.8%
300,000 American General Corp. $ 19,987,500
138,200 Bluegreen Corp.* 1,382,000
425,000 Equitable Companies, Inc. 26,084,375
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/98 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Financial (Diversified) - (continued)
737,950 Triad Park, LLC* $ 1,383,656
------------
$ 48,837,531
------------
Insurance (Life/Health) - 0.6%
300,000 Conseco, Inc. $ 14,887,500
------------
Insurance (Property/Casualty) - 3.6%
500,000 Financial Security Assurance Holdings Ltd. $ 29,937,500
660,000 Gryphon Holdings, Inc.*+ 11,756,250
1,850,000 20th Century Industries 52,725,000
------------
$ 94,418,750
------------
Investment Management - 0.8%
850,000 United Asset Management Corp. $ 22,525,000
------------
Savings & Loan Companies - 1.1%
400,000 Washington Mutual, Inc. $ 28,025,000
------------
Total Financial $242,495,906
------------
Healthcare - 8.6%
Biotechnology - 0.2%
650,000 ImClone Systems, Inc.* $ 5,728,125
------------
Healthcare (Diversified) - 1.8%
688,500 Ethical Holdings, Plc (Sponsored A.D.R.)* $ 1,290,938
742,800 IVAX Corp.* 7,242,300
700,000 Mallinckrodt, Inc. 22,575,000
1,429,900 Medeva Plc (Sponsored A.D.R.) 16,801,325
------------
$ 47,909,563
------------
Healthcare (Hospital Management) - 2.5%
1,650,000 Columbia/HCA Healthcare Corp. $ 54,346,875
610,000 Sun Healthcare Group, Inc.* 10,217,500
------------
$ 64,564,375
------------
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Healthcare (Long-Term Care) - 1.4%
987,500 Integrated Health Services, Inc. $ 38,080,469
------------
Healthcare (Managed Care) - 2.2%
600,000 FPA Medical Management, Inc.* $ 7,500,000
1,570,000 Mid Atlantic Medical Services, Inc.* 20,115,625
422,000 PacifiCare Health Systems, Inc.* 30,225,750
------------
$ 57,841,375
------------
Healthcare (Medical Products/Supplies) - 0.5%
249,800 Beckman Coulter, Inc. $ 13,910,737
------------
Total Healthcare $228,034,644
------------
Technology - 14.8%
Communications Equipment - 3.3%
800,000 Alcatel Alsthom (Sponsored A.D.R.) $ 29,000,000
600,000 Andrew Corp.* 13,725,000
1,930,000 DSC Communications Corp.* 34,740,000
382,300 General Instrument Corp.* 8,577,856
------------
$ 86,042,856
------------
Computer (Hardware) - 2.3%
1,650,000 NCR Corp.* $ 60,534,375
------------
Computer (Peripherals) - 0.8%
685,000 Intergraph Corp.* $ 5,822,500
575,000 Seagate Technology, Inc.* 15,345,313
------------
$ 21,167,813
------------
Computer (Software & Services) - 1.4%
822,500 Broderbund Software, Inc.* $ 14,702,188
1,000,000 Unisys Corp.* 22,437,500
------------
$ 37,139,688
------------
Electronics (Component Distributors) - 1.0%
850,000 Marshall Industries*+ $ 27,571,875
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 4/30/98 (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Electronics (Defense) - 0.4%
740,000 Whittaker Corp.*+ $ 10,545,000
--------------
Equipment (Semiconductor) - 0.5%
100,000 Lam Research Corp.* $ 3,100,000
300,000 Teradyne, Inc.* 10,950,000
--------------
$ 14,050,000
--------------
Photography/Imaging - 3.6%
450,000 Eastman Kodak Co. $ 32,484,375
2,220,500 Imation Corp.*+ 41,911,937
464,500 Polaroid Corp. 20,438,000
--------------
$ 94,834,312
--------------
Services (Data Processing) - 1.5%
1,200,000 First Data Corp. $ 40,650,000
--------------
Total Technology $ 392,535,919
--------------
Transportation - 0.8%
Railroads - 0.8%
325,000 Norfolk Southern Corp. $ 10,867,188
200,000 Union Pacific Corp. 10,950,000
--------------
Total Transportation $ 21,817,188
--------------
Utilities - 1.4%
Electronic Companies - 1.4%
160,900 Boston Edison Co. $ 6,556,675
450,000 Dominion Resources, Inc. 17,803,125
316,300 DTE Energy Co. 12,395,006
--------------
Total Utilities $ 36,754,806
--------------
Total Common Stocks
(Cost $2,173,619,498) $2,567,465,300
--------------
TOTAL INVESTMENT IN SECURITIES
(Cost $2,190,450,136) $2,583,057,800
--------------
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
TEMPORARY CASH INVESTMENTS - 2.3%
Commercial Paper - 2.3%
$13,240,000 Abbott Labs, 5.44%, 5/21/98 $ 13,199,986
10,000,000 Bell Atlantic Financial Services, Inc., 5.49%, 5/18/98 9,974,075
10,000,000 E. I. Dupont & Co., 5.43%, 5/13/98 9,981,900
7,630,000 Household Finance Corp., 5.51%, 5/1/98 7,630,000
8,000,000 Shell Oil Co., 5.47%, 5/14/98 7,984,198
12,900,000 Xerox Corp., 5.46%, 5/22/98 12,858,913
--------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $61,629,072) $ 61,629,072
--------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENTS - 100%
(Cost $2,252,079,208)(a) $2,644,686,872
--------------
</TABLE>
* Non-income producing security.
+ Investment held by the Fund representing 5% or more of the outstanding
voting stock of such company.
(a) At April 30, 1998, the net unrealized gain on investments based on cost for
federal income tax purposes of $2,252,330,282 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $487,542,287
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (95,185,697)
------------
Net unrealized gain $392,356,590
------------
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended April 30, 1998 aggregated $781,017,745 and $823,422,898,
respectively.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
BALANCE SHEET 4/30/98
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash
investments of $61,629,072) (cost $2,252,079,208) $2,644,686,872
Cash 2,065
Receivables -
Investment securities sold 13,481,139
Fund shares sold 3,788,203
Dividends and interest 1,442,355
Other 9,870
--------------
Total assets $2,663,410,504
--------------
LIABILITIES:
Payables -
Investment securities purchased $ 8,925,805
Fund shares repurchased 6,004,932
Due to affiliates 2,646,807
Accrued expenses 208,305
--------------
Total liabilities $ 17,785,849
--------------
NET ASSETS:
Paid-in capital $2,003,312,215
Accumulated undistributed net investment income 1,964,726
Accumulated undistributed net realized gain on investments 247,740,050
Net unrealized gain on investments 392,607,664
--------------
Total net assets $2,645,624,655
--------------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $1,773,530,378/74,729,647 shares) $ 23.73
--------------
Class B (based on $803,091,705/34,619,802 shares) $ 23.20
--------------
Class C (based on $69,002,572/2,980,748 shares) $ 23.15
--------------
MAXIMUM OFFERING PRICE:
Class A $ 25.18
--------------
</TABLE>
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/98
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends (net of foreign taxes withheld of $252,259) $12,690,360
Interest 4,091,302
-----------
Total investment income $ 16,781,662
------------
EXPENSES:
Management fees $ 6,070,847
Transfer agent fees
Class A 1,611,430
Class B 815,455
Class C 65,650
Distribution fees
Class A 2,032,242
Class B 3,750,947
Class C 315,582
Accounting 77,830
Custodian fees 87,697
Registration fees 278,950
Professional fees 33,125
Printing 41,840
Fees and expenses of nonaffiliated trustees 23,625
Miscellaneous 48,268
-----------
Total expenses $ 15,253,488
Less fees paid indirectly (174,365)
------------
Net expenses $ 15,079,123
------------
Net investment income $ 1,702,539
------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $248,156,014
Change in net unrealized gain on investments 74,183,767
------------
Net gain on investments $322,339,781
------------
Net increase in net assets resulting from operations $324,042,320
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Six Months Ended 4/30/98 and the Year Ended 10/31/97
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
FROM OPERATIONS: 4/30/98 10/31/97
<S> <C> <C>
Net investment income $ 1,702,539 $ 9,267,366
Net realized gain on investments 248,156,014 235,661,875
Change in net unrealized gain on investments 74,183,767 203,007,226
-------------- ---------------
Net increase in net assets resulting from operations $ 324,042,320 $ 447,936,467
-------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.10 and $0.06 per share, respectively) $ (7,125,667) $ (4,238,978)
Class C ($0.00 and $0.04 per share, respectively) - (64,617)
Net realized gain:
Class A ($2.24 and $0.88 per share, respectively) (154,432,088) (58,684,558)
Class B ($2.24 and $0.88 per share, respectively) (73,631,505) (27,212,132)
Class C ($2.24 and $0.88 per share, respectively) (6,091,340) (1,392,090)
-------------- ---------------
Total distributions to shareholders $ (241,280,600) $ (91,592,375)
-------------- ---------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 289,710,690 $ 765,729,787
Reinvestment of distributions 209,302,295 79,547,895
Cost of shares repurchased (333,274,795) (720,497,724)
-------------- ---------------
Net increase in net assets resulting from fund
share transactions $ 165,738,190 $ 124,779,958
-------------- ---------------
Net increase in net assets $ 248,499,910 $ 481,124,050
NET ASSETS:
Beginning of period 2,397,124,745 1,916,000,695
-------------- ---------------
End of period (including accumulated undistributed net
investment income of $1,964,726 and $7,387,854,
respectively) $2,645,624,655 $2,397,124,745
-------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
CLASS A '98 Shares '98 Amount '97 Shares '97 Amount
<S> <C> <C> <C> <C>
Shares sold 9,224,955 $ 204,145,456 25,780,570 $ 549,681,572
Reinvestment of distributions 7,251,904 148,519,055 2,920,874 57,365,349
Less shares repurchased (10,277,672) (228,254,299) (25,642,389) (562,314,860)
----------- ------------- ----------- -------------
Net increase 6,199,187 $ 124,410,212 3,059,055 $ 44,732,061
----------- ------------- ----------- -------------
CLASS B
Shares sold 3,314,131 $ 71,219,902 8,593,655 $ 181,607,305
Reinvestment of distributions 2,889,009 58,011,298 1,116,304 21,600,490
Less shares repurchased (4,371,411) (94,508,195) (7,093,350) (149,421,822)
----------- ------------- ----------- -------------
Net increase 1,831,729 $ 34,723,005 2,616,609 $ 53,785,973
----------- ------------- ----------- -------------
CLASS C
Shares sold 676,980 $ 14,345,332 1,640,290 $ 34,440,910
Reinvestment of distributions 138,320 2,771,942 30,143 582,056
Less shares repurchased (488,575) (10,512,301) (409,184) (8,761,042)
----------- ------------- ----------- -------------
Net increase 326,725 $ 6,604,973 1,261,249 $ 26,261,924
----------- ------------- ----------- -------------
</TABLE>
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/98
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Ended Year Ended Year Ended Year Ended Year Ended
Ended 4/30/98 10/31/97 10/31/96 10/31/95 10/31/94 10/31/93
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $ 23.23 $ 19.85 $ 19.42 $ 17.26 $ 16.17 $ 12.42
--------- ------- ------- ------- ------- -------
Increase (decrease) from investment
operations:
Net investment income (loss) $ 0.04 $ 0.15 $ 0.08 $ 0.08 $ (0.05) $ (0.02)
Net realized and unrealized gain on
investments 2.80 4.17 2.31 3.03 2.80 4.43
--------- ------- ------- -------- ------- -------
Net increase from investment operations $ 2.84 $ 4.32 $ 2.39 $ 3.11 $ 2.75 $ 4.41
Distributions to shareholders:
Net investment income (0.10) (0.06) (0.09) - - -
Net realized gain (2.24) (0.88) (1.87) (0.95) (1.66) ( 0.66)
--------- --------- --------- -------- ------- -------
Net increase in net asset value $ 0.50 $ 3.38 $ 0.43 $ 2.16 $ 1.09 $ 3.75
--------- --------- --------- -------- ------- -------
Net asset value, end of period $ 23.73 $ 23.23 $ 19.85 $ 19.42 $ 17.26 $ 16.17
--------- --------- --------- -------- ------- -------
Total return* 13.86% 22.67% 13.12% 19.32% 19.03% 36.59%
Ratio of net expenses to average net assets 0.99%**+ 1.00%+ 1.02%+ 1.16%+ 1.26% 1.27%
Ratio of net investment income (loss) to
average net assets 0.38%**+ 0.64%+ 0.43%+ 0.53%+ (0.44)% (0.26)%
Portfolio turnover rate 67%** 63% 37% 59% 47% 68%
Average brokerage commission per share $ 0.0562 $ 0.0552 $ 0.0518 - - -
Net assets, end of period (in thousands) $1,773,530 $1,591,655 $1,299,611 $845,415 $405,904 $194,670
Ratios assuming reduction for fees paid
indirectly:
Net expenses 0.98%** 0.98% 1.00% 1.14% - -
Net investment income 0.39%** 0.66% 0.45% 0.55% - -
* 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.
</TABLE>
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/98
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Ended Year Ended Year Ended 4/4/94 to
Ended 4/30/98 10/31/97 10/31/96 10/31/95 10/31/94
<S> <C> <C> <C> <C> <C>
CLASS B
Net asset value, beginning of period $ 22.73 $ 19.53 $ 19.20 $ 17.20 $ 14.94
-------- -------- -------- -------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.04) $ (0.02) $ (0.04) $ (0.01) $ (0.04)
Net realized and unrealized gain on investments 2.75 4.10 2.26 2.96 2.30
-------- -------- -------- -------- -------
Net increase from investment operations $ 2.71 $ 4.08 $ 2.22 $ 2.95 $ 2.26
Distributions to shareholders:
In excess of net investment income - - (0.02) - -
Net realized gain (2.24) (0.88) (1.87) (0.95) -
-------- -------- -------- -------- -------
Net increase in net asset value $ 0.47 $ 3.20 $ 0.33 $ 2.00 $ 2.26
-------- -------- -------- -------- -------
Net asset value, end of period $ 23.20 $ 22.73 $ 19.53 $ 19.20 $ 17.20
-------- -------- -------- -------- -------
Total return* 13.48% 21.70% 12.27% 18.42% 15.13%
Ratio of net expenses to average net assets 1.76%**+ 1.76%+ 1.79%+ 1.93%+ 2.04%**
Ratio of net investment loss to average net assets (0.39)%**+ (0.12)%+ (0.35)%+ (0.18)%+ (1.12)%**
Portfolio turnover rate 67%** 63% 37% 59% 47%
Average brokerage commission per share $ 0.0562 $ 0.0552 $ 0.0518 - -
Net assets, end of period (in thousands) $803,092 $745,258 $589,188 $311,672 $42,459
Ratios assuming reduction for fees paid indirectly:
Net expenses 1.75%** 1.75% 1.78% 1.88% -
Net investment loss (0.38)%** (0.11)% (0.34)% (0.13)% -
* 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.
</TABLE>
22 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 4/30/98
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year 1/31/96
Ended Ended to
4/30/98 10/31/97(a) 10/31/96
<S> <C> <C> <C>
CLASS C
Net asset value, beginning of period $ 22.69 $ 19.53 $ 18.69
------- ------- -------
Increase (decrease) from investment
operations:
Net investment loss $ (0.03) $ (0.03) $ (0.02)
Net realized and unrealized gain on
investments 2.73 4.11 0.86
------- ------- -------
Net increase from investment operations $ 2.70 $ 4.08 $ 0.84
Distributions to shareholders:
Net investment income - (0.04) -
Net realized gain (2.24) (0.88) -
------- ------- -------
Net increase in net asset value $ 0.46 $ 3.16 $ 0.84
------- ------- -------
Net asset value, end of period $ 23.15 $ 22.69 $ 19.53
------- ------- -------
Total return* 13.45% 21.74% 4.50%
Ratio of net expenses to average net assets 1.75%**+ 1.75%+ 1.79%**+
Ratio of net investment loss to average net assets (0.38)%**+ (0.15)%+ (0.39)%**+
Portfolio turnover rate 67%** 63% 37%
Average brokerage commission per share $0.0562 $0.0552 $0.0518
Net assets, end of period (in thousands) $69,003 $60,211 $27,202
Ratios assuming reduction for fees paid
indirectly:
Net expenses 1.73%** 1.73% 1.74%**
Net investment loss (0.36)%** (0.13)% (0.34)%**
(a) The per share data presented above is based upon the average shares outstanding for the period
presented.
* 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.
</TABLE>
The accompanying notes are an integral part of these financial statements. 23
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/98
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Capital Growth 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 objective of the Fund is to seek capital appreciation
by investing in a diversified portfolio of securities consisting primarily of
common stocks.
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 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 first to select for sale those securities
24
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
that have the highest cost and also qualify for long-term capital gain or
loss treatment for tax purposes.
Settlements from litigation and class action suits are recognized when the
Fund acquires an enforceable right to such awards. Included in net realized
gain from investments is $27,059 of class action settlements received by the
Fund during the six months ended April 30, 1998.
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.
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 wholly owned subsidiary of The Pioneer Group, Inc. (PGI). PFD earned
$525,153 in underwriting commissions on the sale of fund shares during the
six months ended April 30, 1998.
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 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.
25
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/98 (continued)
- --------------------------------------------------------------------------------
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund, if any, with respect to each class of shares
are calculated in the same manner, at the same time, on the same day and in
the same amount, except that Class A, Class B, and Class C shares 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.
Effective May 1, 1998, PMC receives a basic fee that is calculated at the
annual rate of 0.70% of the Fund's average daily net assets up to $500 million,
0.65% of the next $500 million and 0.625% of the excess over $1 billion.
Effective May 1, 1999, the basic fee will be subject to a performance
adjustment up to a maximum of - 0.10% based on the Fund's investment
performance as compared with the Lipper Growth Funds Index.
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, 1998, $1,086,928 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 $495,237 in transfer agent fees payable to PSC at April 30,
1998.
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 ser-
26
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
vices with regard to Class B and Class C shares. Included in due to affiliates
is $1,064,642 in distribution fees payable to PFD at April 30, 1998.
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 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
CDSCs are paid to PFD. For the six months ended April 30, 1998, CDSCs in the
amount of $999,742 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain directed brokerage and expense offset
arrangements resulting in a reduction in the Fund's total expenses. For the six
months ended April 30, 1998, the Fund's expenses were reduced by $174,365 under
such arrangements.
6. Line of Credit Facility
The Fund, along with certain others in the Pioneer Family of Funds (the
"Funds"), collectively participate in a $50 million committed, unsecured
revolving line of credit facility. Borrowings are used solely for temporary or
emergency purposes. The Fund may borrow up to the lesser of $50 million or the
limits set by its prospectus for borrowings. Interest on collective borrowings
of up to $25 million is payable at the Federal Funds Rate plus 3/8% on an
annualized basis, or at the Federal Funds Rate plus 1/2% if the borrowing
exceeds $25 million at any one time. The Funds pay an annual commitment fee for
this facility. The commitment fee is allocated among such Funds based on their
respective borrowing limits. For the six months ended April 30, 1998, there
were no borrowings under this agreement.
7. Affiliated Companies
The Fund may invest in smaller capitalized company securities that tend to be
more sensitive to changes in earnings expectations and have lower trading
volumes than mid to large capitalized company securities, and as a result, they
may experience more abrupt and erratic price movements. The Fund's investment
in these smaller capitalized companies may exceed 5% of the outstanding voting
stock. Such companies are deemed affiliates of
27
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 4/30/98 (continued)
- --------------------------------------------------------------------------------
the Fund for financial reporting purposes. The following summarizes
transactions with affiliates of the Fund as of April 30, 1998:
<TABLE>
<CAPTION>
Dividend
Affiliates Purchases Sales Income Value
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Arctic Cat Inc. $ - $ - $ 135,564 $ 11,297,000
Brush Wellman, Inc. 480,750 824,036 208,740 23,162,500
The Geon Co. 3,282,634 179,328 291,088 31,037,500
Gryphon Holdings, Inc. - - - 11,756,250
Imation Corp. 10,941,981 - - 41,911,937
Justin Industries - 676,102 159,650 24,843,750
John H. Harland Co. 9,251,994 - 202,898 30,929,625
The Lamson & Sessions
Co. - 172,428 - 7,249,331
Marshall Industries 5,253,293 - - 27,571,875
Park Ohio Industries, Inc. - 4,598,597 - 14,700,000
The Rival Co. 51,500 - 116,110 14,215,312
Tultex Corp. - 419,034 - 5,501,250
Wellman, Inc. - - 346,500 43,553,125
Whittaker Corp. - 902,805 - 10,545,000
Worldtex, Inc. - 868,804 - 9,634,188
----------- ---------- ---------- ------------
$29,262,152 $8,641,134 $1,460,550 $307,908,643
----------- ---------- ---------- ------------
</TABLE>
28
<PAGE>
Pioneer Capital Growth Fund
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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To the Shareholders and the Board of Trustees of Pioneer Capital Growth Fund:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Capital Growth Fund (one of the portfolios constituting
Pioneer Growth Trust) as of April 30, 1998, 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, 1998 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Capital Growth Fund (of Pioneer Growth Trust) as of April 30, 1998, 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 5, 1998
29
<PAGE>
Pioneer Capital Growth Fund
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RESULTS OF SHAREOWNER MEETINGS
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On April 21, 1998, Pioneer Capital Growth Fund held a special meeting of
shareowners. The following proposals were passed by shareowner vote. Following
are the detailed results of the votes.
Proposal 2 -- Elect nine Trustees to serve on the Board of Trustees.
<TABLE>
<CAPTION>
Nominee Affirmative Withheld
<S> <C> <C>
Mary K. Bush 67,435,931.806 2,013,777.289
John F. Cogan, Jr. 67,528,598.418 1,921,110.677
Richard H. Egdahl, M.D. 67,482,790.445 1,966,918.650
Margaret B.W. Graham 67,448,118.486 2,001,590.609
John W. Kendrick 67,489,368.177 1,960,340.918
Marguerite A. Piret 67,558,498.723 1,891,210.372
David D. Tripple 67,527,483.700 1,922,225.395
Stephen K. West 67,546,032.276 1,903,676.819
John Winthrop 67,568,308.899 1,881,400.196
</TABLE>
Proposal 5 -- Ratify the selection of Arthur Andersen LLP as the Fund's
independent public accountants for the fiscal year ending October 31, 1998.
<TABLE>
<CAPTION>
Affirmative Against Abstain
<S> <C> <C>
64,512,217.936 939,524.329 3,997,966.830
</TABLE>
- --------------------------------------------------------------------------------
On April 30, 1998, Pioneer Capital Growth Fund held a special meeting of
shareowners. The following proposals were passed by shareowner vote. Following
are the detailed results of the votes.
Proposal 1(a) -- A new management contract with Pioneering Management
Corporation.
<TABLE>
<CAPTION>
Affirmative Against Abstain
<S> <C> <C>
46,030,403.828 9,953,797.442 4,392,722.922
</TABLE>
Proposal 4 -- Approve an amendment to or elimination of the Funds' fundamental
investment restrictions regarding:
Proposal 4a -- Borrowing.
<TABLE>
<CAPTION>
Affirmative Against Abstain
<S> <C> <C>
49,213,063.654 5,498,565.515 5,665,295.023
</TABLE>
Proposal 4b -- Investment in voting securities of a single issuer.
<TABLE>
<CAPTION>
Affirmative Against Abstain
<S> <C> <C>
50,174,686.543 4,355,983.009 5,846,254.640
</TABLE>
Proposal 4c -- Shareholder approval for the modification of certain investment
restrictions.
<TABLE>
<CAPTION>
Affirmative Against Abstain
<S> <C> <C>
50,469,712.065 4,588,798.853 5,318,413.274
</TABLE>
30
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The remaining proposal up for shareowner approval, Proposal 3, has been
adjourned to the shareowner meeting on June 18, 1998.
Proposal 3--Allow the Fund to be reorganized as a separate Delaware business
trust.
Currently, Pioneer Growth Trust is registered as a single Massachusetts
business trust with three funds, one of which is your Fund. As a separate
Delaware business trust, the Fund and its shareowners could benefit from a
decreased possibility of shareholder and trustee liability and various
potential operating efficiencies all described in the Proxy Statement.
31
<PAGE>
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This page for your notes.
32
<PAGE>
Pioneer Capital Growth Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Richard H. Egdahl, M.D. David D. Tripple, Executive Vice President
Margaret B.W. Graham J. Rodman Wright, Vice President
John W. Kendrick William H. Keough, Treasurer
Marguerite A. Piret Joseph P. Barri, Secretary
David D. Tripple
Stephen K. West
John Winthrop
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
33
<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.
34
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds
you wish to invest in. You choose the amounts and dates for Pioneer to sell
shares of your original fund and use the proceeds to buy shares of the other
funds you have chosen. Over time, your investment will be shifted out of the
original fund. (Automatic Exchange is available for originating accounts with a
balance of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals.
You decide the frequency and the day of the month you want. Pioneer will send
the proceeds by check to the address you designate, or electronically to your
bank account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available only for accounts with a value of $10,000 or
more.)
35
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This page for your notes.
36
<PAGE>
- --------------------------------------------------------------------------------
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 Income Funds
Global/International Taxable
Pioneer Emerging Markets Fund Pioneer America Income Trust
Pioneer Europe Fund Pioneer Bond Fund
Pioneer Gold Shares Pioneer Short-Term Income Trust
Pioneer International Growth Fund
Pioneer World Equity Fund
Tax-Exempt
Pioneer Intermediate Tax-Free Fund
United States Pioneer Tax-Free Income Fund
Pioneer Capital Growth Fund
Pioneer Growth Shares
Pioneer Micro-Cap Fund Money Market Fund
Pioneer Mid-Cap Fund Pioneer Cash Reserves Fund
Pioneer Small Company Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
37
<PAGE>
- --------------------------------------------------------------------------------
HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
<TABLE>
<S> <C>
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
</TABLE>
This report must be preceded or accompanied by a current
Fund prospectus.
<TABLE>
<S> <C>
[Pioneer Logo] Pioneer Funds Distributor, Inc. 0698 - 5287
60 State Street [Copyright] Pioneer Funds Distributor, Inc.
Boston, Massachusetts 02109 [Recycle] Printed on Recycled Paper
</TABLE>
