<PAGE> [LOGO] Pioneer
Pioneer Gold Shares
ANNUAL REPORT 10/31/98
<PAGE>
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
Results of Shareowner Meeting 24
Trustees, Officers and Service Providers 25
Retirement Plans from Pioneer 26
Programs and Services for Pioneer Shareowners 27
A Salute to Pioneer Fund 29
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Pioneer Gold Shares
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Letter from the Chairman 10/31/98
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Dear Shareowner,
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I am pleased to introduce this report for Pioneer Gold Shares, covering the
fiscal year ended October 31, 1998. Thank you for your investment with Pioneer.
I appreciate this opportunity to comment briefly on the world of finance.
It is said, "all that glitters is not gold," and so it was over the past 12
months. Despite some market dips, the surging economy in the United States
provided investors worldwide with a strong dollar and another year of
double-digit returns from equity investments. Many, including stewards of some
central banks around the world, questioned gold's value. The paper profits
wrought by Wall Street in the last three years have dimmed the memories of even
veteran investors.
Because change is inevitable and the future uncertain, we think gold will
continue to be in demand as tangible evidence of wealth. Seventy years of
experience in an up and down investment world tells us that. As we close the
roaring 1990's with a dose of global market volatility, investors would be well
advised to enter the future armed with some fundamental investment precepts that
should never be out of fashion.
At Pioneer, we believe the success of long-term investing has most often been
determined by discipline, patience and clear thinking. To a great extent, this
means selecting companies with strong management and a compelling competitive
advantage and holding on to them. This thinking has stood the test of time in an
ever-changing marketplace.
I encourage you to read on and learn more about Pioneer Gold Shares. If you have
questions about your Fund, please contact your investment professional, or call
Pioneer at 1-800-225-6292.
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 10/31/98
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[The following information was depicted as a pie chart in the printed material]
International Common Stocks 55%
U.S. Common Stocks 23%
Depositary Receipts for International Stocks 17%
Short-Term Equivalents 5%
Geographical Distribution
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(As a percentage of equity holdings)
[The following information was depicted as a pie chart in the printed material]
Canada 48%
United States 25%
South Africa 11%
Australia 8%
Other 8%
10 Largest Holdings
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(As a percentage of equity holdings)
1. Placer Dome, Inc. 8.25%
2. Barrick Gold Corp. 5.44
3. Euro-Nevada Mining Corp. 4.74
4. Getchell Gold Corp. 4.73
5. Lihir Gold Ltd. (A.D.R.) 4.70
6. Normandy Mining Ltd. 4.62
7. Franco-Nevada Mining
Corp. Ltd. 4.55
8. Anglogold Ltd. (A.D.R) 4.54
9. Newmont Mining Corp. 4.25
10. Battle Mountain Gold Co. 4.06
Fund holdings will vary for other periods.
2
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Pioneer Gold Shares
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PERFORMANCE UPDATE 10/31/98 CLASS A SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 10/31/98 10/31/97
$4.58 $5.77
Distributions per Share Income Short-Term Long-Term
(10/31/97 - 10/31/98) Dividends Capital Gains Capital Gains
-- -- --
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.
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Average Annual Total Returns
(As of October 31, 1998)
Net Asset Public Offering
Period Value Price*
Life-of-Fund (4.15)% (4.83)%
(7/25/90)
5 Years (9.03) (10.09)
1 Year (20.62) (25.16)
- --------------------------------------------------------------------------------
* 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 information was depicted as a line graph in the printed material]
Growth of $10,000
Pioneer Gold Shares Standard &
A Shares Poor's 500 Index
-------- ----------------
7/25/90 9,425 10,000
10/31/90 7,614 8,597
7,329 10,794
7,643 11,477
6,691 12,311
10/31/92 7,207 12,616
9,170 13,446
10,660 14,494
10,588 14,162
10/31/94 11,376 15,055
10,688 16,628
9,743 19,023
12,680 21,639
10/31/96 11,190 23,593
9,482 27,073
8,366 31,168
8,061 38,170
10/31/98 6,640 38,018
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 10/31/98 CLASS B SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 10/31/98 10/31/97
$4.41 $5.61
Distributions per Share Income Short-Term Long-Term
(10/31/97 - 10/31/98) Dividends Capital Gains Capital Gains
-- -- --
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.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of October 31, 1998)
If If
Period Held Redeemed*
Life-of-Fund (11.55%) (11.93%)
(4/4/94)
1 Year (21.39) (24.53)
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* 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 information was depicted as a line graph in the printed material]
Growth of $10,000
Pioneer Gold Shares Standard &
B Shares Poor's 500 Index
-------- ----------------
4/4/94 9,425 10,000
9,438 10,273
9,413 10,521
10/31/94 10,077 10,921
8,059 10,956
9,464 12,062
9,719 13,259
10/31/95 8,595 13,800
11,111 15,181
11,124 15,697
9,974 15,443
10/31/96 9,770 17,115
9,049 19,176
8,248 19,639
7,924 23,490
10/31/97 7,252 22,610
6,140 24,332
6,968 27,689
4,874 28,014
10/31/98 5,588 27,579
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 10/31/98 CLASS C SHARES
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Share Prices and Distributions
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Net Asset Value
per Share 10/31/98 10/31/97
$4.42 $5.62
Distributions per Share Income Short-Term Long-Term
(10/31/97 - 10/31/98) Dividends Capital Gains Capital Gains
-- -- --
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 October 31 1998)
If If
Period Held Redeemed*
Life-of-Fund (21.48)% (21.48)%
(1/31/96)
1 Year (21.35) (21.35)
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* Assumes reinvestment of distributions. The 1% contingent deferred sales charge
(CDSC) applies to investments sold within one year of purchase.
[The following information was depicted as a line graph in the printed material]
Growth of $10,000
Pioneer Gold Shares Standard &
C Shares Poor's 500 Index
-------- ----------------
1/31/96 10,000 10,000
4/30/96 10,000 10,340
8,966 10,172
10/31/96 8,793 11,274
8,144 12,632
4/30/97 7,423 12,937
7,132 15,473
10/31/97 6,539 14,894
5,526 16,028
4/30/98 6,259 18,240
4,386 18,454
10/31/98 5,142 18,167
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 10/31/98
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In a fiscal year that saw a historic bull market on one side of the globe and a
crushing bear market on another, it's not surprising that Pioneer Gold Shares
and its shareowners felt the effects of both skepticism and enthusiasm for
commodities. Following is a discussion with Vice President and portfolio manager
Michael P. Bradshaw. Michael is responsible for the day-to-day management of the
Fund and is supported by the portfolio managers and analysts on Pioneer's core
value team. This discussion covers the fiscal year ended October 31, 1998.
Q: How did the Fund perform over the fiscal year?
A: Compared to other gold funds, above average. But it was a down year for gold
and, by extension, the Fund. Of the many variables that can affect the Fund's
performance, the price of gold - as you might expect - has an enormous
impact. Ultimately, it drives the price of stocks in gold-related businesses.
Like other gold-oriented investments, your Fund experienced the volatility
often associated with investing in a narrow sector of the market. The Fund's
Class A Shares returned -20.62% at net asset value for the one-year period
ended October 31, 1998. The 42 gold-oriented funds tracked by Lipper had an
average return of -21.67% for the same period. (Lipper Analytical Services,
Inc. is an independent research firm that tracks mutual fund performance.)
Q: Did the turbulent Asian marketplace affect the Fund?
A: Yes and no. While market instability historically unnerves investors and
increases the demand for gold, the bear market in Asia over the past year was
only one half of a two-dimensional global marketplace. The other half, a
raging bull market in the established markets of Europe and the United
States, provided another year of double-digit returns for investors who might
otherwise have sheltered at least some of their money in gold. Additionally,
while the lure of American and European equities out-shone gold, the troubled
economies of Asia consumed far less gold. Even though the price of gold was
dropping, many Asian countries' currencies were dropping faster and gold
became prohibitively expensive, keeping banks from building their reserves
and local businesses from using gold for products.
6
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Pioneer Gold Shares
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Q: What was the Fund's investment strategy over the period?
A: Our strategy of investing mostly in large, established companies with known
reserves and multiple mining operations helps, we believe, when times are
tough for gold. We expect these companies to weather the years when gold is
not in demand. These big name companies are also the first place nervous
investors run when economic news looks bad. In fact, after the market
downturns in very late August, the Fund's class A shares returned more than
55% at net asset value for the month of September, compared to the 43%
average return of the 45 gold-oriented funds tracked by Lipper.
One of the Fund's best performers during the period is also one of the bigger
companies in the portfolio. Placer Dome, the Fund's top holding as of October
31 returned 24% for the calendar year to date. Placer Dome is one of the
world's largest gold mining companies, producing over 2.8 million ounces
annually. It estimates that it has more than 31 million ounces of gold in
proven and probable reserves.
Q: Were there other factors that affected the Fund?
A: Yes, two especially. The booming economies of the United States and Europe
have experienced low inflation that shows no sign of ending. This reduces
demand for gold as a preserver of wealth.
The strength of the U.S. dollar has also negatively affected the value of
gold. The dollar has become the "gold standard" for other currencies and
gold's major competitor for investors seeking to protect their wealth. For
these reasons and others, central banks around the world have sold or
threatened to sell some of their gold reserves to reinvest in
interest-bearing securities. These factors, real and imagined, pushed the
price of gold to a 19-year intraday low of $271.13 an ounce on August 28.
The drop in the price of gold hurt the Fund in particular through its
investment in Newmont Mining, a large, unhedged North American company which
relies on current pricing in the gold market. Because of Newmont's volatility
and its rising costs, we reduced the Fund's investment from 14.7% to 4.0%
over the fiscal year. We will keep Newmont in the portfolio mix, however,
because it is a large company with staying power.
7
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Pioneer Gold Shares
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PORTFOLIO MANAGEMENT DISCUSSION 10/31/98 (continued)
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Q: Did you adjust your investment strategy or portfolio mix
A: We're investing in an always-changing, global marketplace. And, we are
constantly looking for ways to improve the Fund's price stability and
performance. This year we added some low cost, growth-oriented companies to
the portfolio. Through our research we have found common elements of proven
low-cost production, high-grade ore discoveries and cash flow growth in
several companies.
For instance, Gold Corp., based in Canada, made a new discovery at its Red
Lake mine; the company expects it to yield over one ounce per ton, which is a
very high-grade deposit. Company-wide production is expected to grow from
100,000 ounces this year to 300,000 ounces by the year 2000, at a cash cost
of $150 an ounce. Another new investment, Meridian Gold, also made a
high-grade gold discovery in Chile of over one ounce per ton. Production is
expected to double to 400,000 ounces per year by 2000 and costs should fall
to less than a $160 an ounce.
Stillwater Mining - a large producer of palladium (a platinum group element)
- has contracts with automakers to provide palladium for their catalytic
converters. These contracts guarantee the company a minimum price. And, as a
result of these contracts, Stillwater expects to grow production from 400,000
to 1.2 million ounces over the next three years.
Q: How does the coming year look for gold and Pioneer Gold Shares?
A: In the next year, we look for the supply/demand equation in gold markets to
equalize and help stabilize the price of gold. Demand has actually picked up
in Asia as currencies shore up and Asia rebounds. The European Central Bank
has said it won't allow member countries to dump gold reserves on the market
when the euro begins to phase in. In the U.S., we expect the Fed to continue
to ease interest rates which should spur inflation a bit and help the price
of gold. For our part, we will continue to look for low-cost producers with
rising production and cashflow. We remain cautiously optimistic that gold
will continue to be a haven for investors in a global marketplace that never
sits still.
8
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Pioneer Gold Shares
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SCHEDULE OF INVESTMENTS 10/31/98
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Shares Value
------ -----
COMMON STOCKS - 95.4%
Precious Metals - 95.4%
Australia - 7.1%
287,700 Newcrest Mining Ltd.* $ 472,887
1,476,492 Normandy Mining Ltd. 1,320,565
110,000 Sons of Gwalia NL 343,516
-----------
$ 2,136,968
-----------
Canada - 45.8%
148,000 Agnico-Eagle Mines Ltd. $ 730,750
72,742 Barrick Gold Corp. 1,554,860
163,000 Cambior, Inc. 810,189
86,800 Euro-Nevada Mining Corp. 1,355,723
67,500 Franco-Nevada Mining Corp. Ltd. 1,301,442
175,000 Goldcorp Inc.* 873,034
334,000 Kinross Gold Ltd.* 855,023
200,000 Meridian Gold Inc. 1,030,460
149,800 Placer Dome, Inc. 2,359,350
133,000 Prime Resource Group, Inc. 1,129,164
74,300 Teck Corp. (Class B) 609,135
396,650 TVX Gold Inc.* 741,026
177,400 Viceroy Resources Corp.* 367,907
-----------
$13,718,063
-----------
Ghana - 3.0%
105,000 Ashanti Goldfields Co., Ltd.(G.D.R.) $ 899,063
-----------
Papua New Guinea - 5.2%
152,400 Lihir Gold Ltd.* $ 211,607
49,100 Lihir Gold Ltd. (A.D.R.)* 1,344,113
-----------
$ 1,555,720
-----------
South Africa - 10.8%
17,915 Anglo American Platinium Corp. (A.D.R.) $ 266,038
51,899 Anglogold Ltd. (A.D.R.) 1,297,475
93,900 Driefontein Consolidated Ltd. (A.D.R.) 548,728
64,500 Gold Fields Ltd.* 455,159
98,147 Gold Fields Ltd. (A.D.R.)* 679,668
-----------
$ 3,247,068
-----------
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 10/31/98 (continued)
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Shares Value
------ -----
United States - 23.5%
213,736 Battle Mountain Gold Co. $ 1,162,190
14,500 Coeur d'Alene Mines Corp.* 81,563
87,600 Freeport-McMoRan Copper & Gold Inc. 1,045,725
77,250 Getchell Gold Corp.* 1,351,875
160,095 Hecla Mining Co.* 720,428
82,490 Homestake Mining Co. 979,569
57,180 Newmont Mining Corp. 1,215,074
15,000 Stillwater Mining Co. 485,621
-----------
$ 7,042,045
-----------
Total Precious Metals $28,598,927
-----------
TOTAL COMMON STOCKS
(Cost $38,959,822) $28,598,927
-----------
Principal
Amount
------
TEMPORARY CASH INVESTMENT - 4.6%
Commercial Paper - 4.6%
$1,393,000 Citigroup Inc., 5.65%, 11/2/98 $ 1,393,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $1,393,000) $ 1,393,000
-----------
TOTAL INVESTMENT IN SECURITIES -- 100%
(Cost $40,352,822) (a)(b) $29,991,927
===========
* Non-income producing security.
(a) At October 31, 1998, the net unrealized loss on investments based on
cost for federal income tax purposes of $40,629,339 was as follows:
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 2,066,250
Aggregate gross unrealized loss for all investments
in which there is an excess of tax cost over value (12,703,662)
-------------
Net unrealized loss $(10,637,412)
=============
(b) At October 31, 1998, the fund had a capital loss carryforward of
$6,670,781 which will expire between 2004 and 2005 if not used.
Purchases and sales of securities (excluding temporary cash investments) for the
year ended October 31, 1998 aggregated $13,123,313 and $7,180,253, 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 10/31/98
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ASSETS:
Investment in securities, at value (including
temporary cash investment of $1,393,000)
(cost $40,352,822) $ 29,991,927
Cash 438
Receivables -
Investment securities sold 220,643
Fund shares sold 58,641
Dividends, interest and foreign taxes withheld 8,942
Other 6,422
------------
Total assets $ 30,287,013
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 128,251
Due to affiliates 96,217
Accrued expenses 75,320
------------
Total liabilities $ 299,788
------------
NET ASSETS:
Paid-in capital $ 47,295,418
Accumulated net realized loss on investments
and foreign currency transactions (6,947,298)
Net unrealized loss on investments (10,360,895)
------------
Total net assets $ 29,987,225
============
Net Asset Value Per Share:
(Unlimited number of shares authorized)
Class A (based on $21,476,873/4,690,564 shares) $ 4.58
============
Class B (based on $6,008,378/1,361,887 shares) $ 4.41
============
Class C (based on $2,501,974/566,647shares) $ 4.42
============
Maximum Offering Price:
Class A $ 4.86
============
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 Year Ended 10/31/98
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld
of $17,994) $ 280,606
Interest 123,002
-----------
Total investment income $ 403,608
-----------
EXPENSES:
Management fees $ 189,728
Transfer agent fees
Class A 94,695
Class B 23,689
Class C 6,908
Distribution fees
Class A 54,199
Class B 52,685
Class C 22,005
Accounting 47,508
Custodian fees 20,509
Registration fees 73,050
Professional fees 34,503
Printing 31,612
Fees and expenses of nonaffiliated trustees 18,275
Miscellaneous 12,755
-----------
Total expenses $ 682,121
Less management fees waived by
Pioneer Investment Management, Inc. (115,362)
Less fees paid indirectly (12,739)
-----------
Net expenses $ 554,020
-----------
Net investment loss $ (150,412)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) from:
Investments $(5,995,163)
Other assets and liabilities denominated
in foreign currencies 8,398 $(5,986,765)
----------- -----------
Change in net unrealized loss from:
Investments $(1,125,269)
Other assets and liabilities denominated
in foreign currencies (23) $(1,125,292)
----------- -----------
Net loss on investments and foreign
currency transactions $(7,112,057)
-----------
Net decrease in net assets resulting from operations $(7,262,469)
===========
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
- --------------------------------------------------------------------------------
For the Years Ended 10/31/98 and 10/31/97
<TABLE>
<CAPTION>
Year Ended Year Ended
10/31/98 10/31/97
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (150,412) $ (68,674)
Net realized loss on investments and
foreign currency transactions (5,986,765) (938,822)
Change in net unrealized loss on investments
and foreign currency transactions (1,125,292) (10,448,723)
------------ ------------
Net decrease in net assets resulting
from operations $ (7,262,469) $(11,456,219)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net realized gain:
Class A ($0.00 and $0.09 per share, respectively) $ -- $ (393,765)
Class B ($0.00 and $0.09 per share, respectively) -- (56,981)
Class C ($0.00 and $0.09 per share, respectively) -- (7,314)
------------ ------------
Total distributions to shareholders $ -- $ (458,060)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 37,465,357 $ 33,284,658
Reinvestment of distributions -- 396,376
Cost of shares repurchased (35,280,659) (29,139,679)
------------ ------------
Net increase in net assets resulting from
fund share transactions $ 2,184,698 $ 4,541,355
------------ ------------
Net decrease in net assets $ (5,077,771) $ (7,372,924)
NET ASSETS:
Beginning of year 35,064,996 42,437,920
------------ ------------
End of year (including accumulated net investment
income of $0 and $0, respectively) $ 29,987,225 $ 35,064,996
============ ============
</TABLE>
<TABLE>
<CAPTION>
Class A '98 Shares '98 Amount '97 Shares '97 Amount
<S> <C> <C> <C> <C>
Shares sold 6,077,334 $ 27,988,973 3,510,035 $ 24,383,526
Reinvestment of distributions -- -- 46,394 346,561
Less shares repurchased (6,348,644) (29,453,462) (3,207,828) (22,320,541)
------------ ------------ ------------ ------------
Net increase (decrease) (271,310) $ (1,464,489) 348,601 $ 2,409,546
============ ============ ============ ============
Class B
Shares sold 1,457,789 $ 6,710,001 1,071,945 $ 7,495,337
Reinvestment of distributions -- -- 5,848 42,746
Less shares repurchased (1,057,167) (4,761,178) (733,569) (5,106,550)
------------ ------------ ------------ ------------
Net increase 400,622 $ 1,948,823 344,224 $ 2,431,533
============ ============ ============ ============
Class C
Shares sold 614,931 $ 2,766,383 200,519 $ 1,405,795
Reinvestment of distributions -- -- 967 7,069
Less shares repurchased (232,370) (1,066,019) (238,282) (1,712,588)
------------ ------------ ------------ ------------
Net increase (decrease) 382,561 $ 1,700,364 (36,796) $ (299,724)
============ ============ ============ ============
</TABLE>
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 10/31/98
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<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended Year Ended
10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
<S> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year $ 5.77 $ 7.81 $ 6.80 $ 7.94 $ 7.44
-------- ------- -------- -------- -------
Increase (decrease) from investment operations:
Net investment loss $(0.01) $ (0.01) $(0.01) $ (0.01) (0.03)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (1.18) (1.94) 1.02 (1.13) 0.53
-------- ------- -------- -------- -------
Net increase (decrease) from
investment operations $ ( 1.19) $ (1.95) $ 1.01 $ (1.14) $ 0.50
Distributions to shareholders:
Net realized gain - (0.09) - - -
-------- ------- -------- -------- -------
Net increase (decrease) in net asset value $ (1.19) $ (2.04) $ 1.01 $ (1.14) $ 0.50
-------- ------- -------- -------- -------
Net asset value, end of year $ 4.58 $ 5.77 $ 7.81 $ 6.80 $ 7.94
======== ======= ======== ======= =======
Total return* (20.62)% (25.24)% 14.85% (14.36)% 6.72%
Ratio of net expenses to average net assets 1.76%+ 1.74% + 1.72%+ 1.76%+ 1.75%
Ratio of net investment loss to average net assets (0.38)%+ (0.08)%+ (0.13)%+ (0.16)%+ (0.40)%
Portfolio turnover rate 26% 22% 15% 6% 3%
Net assets, end of year (in thousands) $ 21,477 $28,638 $ 36,028 $ 24,412 $26,168
Ratios assuming no waiver of management fees
and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 2.15% 1.93% 1.88% 2.28% 2.14%
Net investment loss (0.77)% (0.27)% (0.29)% (0.68)% (0.79)%
Ratios assuming waiver of management fees
and assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.71% 1.72% 1.71% 1.75% -
Net investment loss (0.33)% (0.06)% (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.
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 10/31/98
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended Year Ended Year Ended 4/4/94 to
10/31/98 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 $ 5.61 $ 7.65 $ 6.73 $ 7.89 $ 7.83
-------- ------- -------- -------- -------
Increase (decrease) from investment operations:
Net investment loss $ (0.03) $ (0.04) $ (0.06) $ (0.05) $ (0.03)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (1.17) (1.91) 0.98 (1.11) 0.09
-------- ------- -------- -------- -------
Net increase (decrease) from investment
operations $ (1.20) $ (1.95) $ 0.92 $ (1.16) $ 0.06
Distributions to shareholders:
Net realized gain - (0.09) - - -
-------- ------- -------- -------- -------
Net increase (decrease) in net asset value $ (1.20) $ (2.04) $ 0.92 $ (1.16) $ 0.06
-------- ------- -------- -------- -------
Net asset value, end of period $ 4.41 $ 5.61 $ 7.65 $ 6.73 $ 7.89
======== ======= ======== ======== =======
Total return* (21.39)% (25.77)% 13.67% (14.70)% 0.77%
Ratio of net expenses to average net assets 2.51%+ 2.51%+ 2.59%+ 2.57%+ 2.67%**
Ratio of net investment loss to average net assets (1.14)%+ (0.84)%+ (1.00)%+ (1.01)%+ (1.42)%**
Portfolio turnover rate 26% 22% 15% 6% 3%
Net assets, end of period (in thousands) $ 6,008 $ 5,394 $ 4,720 $ 1,762 $ 951
Ratios assuming no waiver of management fees
and assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 2.91% 2.72% 2.73% 3.12% 2.79% **
Net investment loss (1.54) (1.05)% (1.14)% (1.56)% (1.54)%**
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for
fees paid indirectly:
Net expenses 2.48% 2.49% 2.57% 2.53% -
Net investment loss (1.11)% (0.82)% (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.
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 10/31/98
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended 1/31/96 to
10/31/98 10/31/97 10/31/96
<S> <C> <C> <C>
CLASS C
Net asset value, beginning of period $ 5.62 $ 7.65 $ 8.70
------- ------- -------
Decrease from investment operations:
Net investment loss $ (0.02) $ (0.04) $ (0.02)
Net realized and unrealized loss on investments
and foreign currency transactions (1.18) (1.90) (1.03)
------- ------- -------
Net decrease from investment operations $ (1.20) $ (1.94) $ (1.05)
Distributions to shareholders:
Net realized gain - (0.09) -
------- ------- -------
Net decrease in net asset value $ (1.20) $ (2.03) $ (1.05)
------- ------- -------
Net asset value, end of period $ 4.42 $ 5.62 $ 7.65
======= ======= =======
Total return* (21.35)% (25.64)% (12.07)%
Ratio of net expenses to average net assets 2.36%+ 2.38%+ 2.59%**+
Ratio of net investment loss to average net assets (0.97)%+ (0.76)%+ (1.12)%**+
Portfolio turnover rate 26% 22% 15%
Net assets, end of period (in thousands) $ 2,502 $ 1,034 $ 1,690
Ratios assuming no waiver of management
fees by PIM and no reduction for fees
paid indirectly:
Net expenses 2.77% 2.58% 2.83%**
Net investment loss (1.38)% (0.96)% (1.36)%**
Ratios assuming waiver of management
fees by PIM and reduction for fees paid
indirectly:
Net expenses 2.33% 2.33% 2.56% **
Net investment loss (0.94)% (0.71)% (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.
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/98
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Gold Shares (the Fund) is a Delaware 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. The net asset value is
computed once daily, on each day the New York Stock Exchange is open, as of
the close of regular trading on the Exchange. In computing the net asset
value, 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.
Trading in foreign securities is substantially completed
17
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/98 (continued)
- --------------------------------------------------------------------------------
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 date 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.
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
18
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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.
At October 31, 1998, the Fund has reclassified $8,398 and $142,014 from
accumulated net realized loss on investments and foreign currency
transactions and paid-in capital, respectively, to accumulated net investment
loss. The reclassification has no impact on the net asset value of the Fund
and is designed to present the Fund's capital accounts on a tax basis.
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 $29,794 in
underwriting commissions on the sale of fund shares during the year ended
October 31, 1998.
19
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/98 (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
Pioneer Investment Management, Inc. (PIM), 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.
PIM 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. PIM's agreement is voluntary and temporary and may be revised or
terminated at any time.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. At October 31, 1998, $73,584 was payable to PIM related to management
fees and certain other services.
20
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 $12,497 in transfer agent fees payable to PSC at October 31, 1998.
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 $10,136 in distribution fees payable to
PFD at October 31, 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 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 CDSCs are paid to
PFD. For the year ended October 31, 1998, CDSCs in the amount of $53,195 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 year ended October 31, 1998, the
Fund's expenses were reduced by $12,739 under such arrangements.
21
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 10/31/98 (continued)
- --------------------------------------------------------------------------------
6. Line of Credit Facility
Effective April 14, 1998, the Fund, along with certain other Funds 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 period ended October
31, 1998, the Fund had no borrowings under this agreement.
22
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareowners 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 as of October 31, 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
October 31, 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 Gold Shares as of October 31, 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
December 4, 1998
23
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
RESULTS OF SHAREOWNER MEETING
- --------------------------------------------------------------------------------
On June 18, 1998, Pioneer Gold Shares held a special meeting of shareowners. The
following proposal was passed by shareowner vote. Following are the detailed
results of the vote.
Proposal 3 - Allow the Fund to be reorganized as a separate Delaware business
trust.
Affirmative Against Abstain
3,197,940.598 128,348.708 305,878.130
24
<PAGE>
Pioneer Gold Shares
- --------------------------------------------------------------------------------
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 John A. Boynton, Treasurer
John W. Kendrick Joseph P. Barri, Secretary
Marguerite A. Piret
David D. Tripple
Stephen K. West
John Winthrop
Investment Adviser
Pioneer Investment Management, Inc.
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
25
<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 1-8O0-225-6292.
FactFone(TM)
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.
26
<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 for accounts with a value of $10,000 or more.)
27
<PAGE>
- --------------------------------------------------------------------------------
RETIREMENT PLANS FROM PIONEER
- --------------------------------------------------------------------------------
Pioneer offers retirement plans suited to the individual investor and businesses
of all sizes. For information, contact your investment professional, or call
Pioneer at 1-800-622-0176.
Individual Plans
Individual Retirement Account (IRA) The $2,000 maximum annual contribution may
be tax-deductible; earnings are tax-deferred.
Roth IRA New in 1998, $2,000 maximum annual contributions are not
tax-deductible. Earnings are tax-free for qualified withdrawals.
Plans for Small Businesses or the Self-Employed SIMPLE (Savings Incentive Match
PLan for Employees) IRA or 401(k) Plan For firms with 100 or fewer employees.
Employees can make pre-tax contributions of up to $6,000 annually, and an
employer contribution is required.
Simplified Employee Pension Plan (SEP) Self-employed people and small-business
owners can make tax-deductible contributions of up to 15% of their income.
Employer-Sponsored Plans
401(k) Plan Allows employees to make pre-tax contributions. Also allows for
employer contributions.
403(b) Plan Lets employees of tax-exempt organizations set aside part of their
salary, before taxes, through payroll deduction.
Profit Sharing Plan Employers contribute on a discretionary basis, usually based
on profits.
Age-Weighted Profit Sharing Plan Employer makes discretionary contributions
based on employees' age and salary.
Money Purchase Pension Plan (MPP) Employers contribute based on a fixed formula.
Most retirement plan withdrawals must meet specific conditions
to avoid penalties.
28
<PAGE>
- --------------------------------------------------------------------------------
A SALUTE TO PIONEER FUND
- --------------------------------------------------------------------------------
[LOGO] HAPPY 70TH BIRTHDAY PIONEER FUND
This year, 1998, marks a special anniversary for the Pioneer family of mutual
funds and an important milestone for the entire mutual fund industry. In the mid
1920s, a group of forward thinking financial professionals started the first
"open-end" investment companies, known today as mutual funds. They provided a
way for small investors to benefit from professional financial management.
In 1928, Pioneer Fund became the fourth mutual fund created.
Since then, Pioneer Fund has gone to work for its shareowners everyday for 70
years. Through 15 bear markets, 16 bull markets and even the Great Depression,
Pioneer Fund has stayed true to an investment ethic that relies on the rewards
of hard work.
Rather than follow trends, the financial professionals at Pioneer roll-up their
sleeves and research. We look for value in an investment: companies that might
not be the current rage on Wall Street, but that we believe have the business
smarts on Main Street to keep their earnings strong. The Fund's investment
objective continues to be growth and income.
For 70 years, Pioneer Fund has made investments based on experience, our own
investment ethic, and the needs of our shareowners.
Everyday, the financial professionals at Pioneer Fund come to work, aware of the
job at hand. We know shareowners are investing their hard-earned money to
provide for the future.
In 1928 there were four mutual funds. Today there are 11,000. Only one can tell
the Pioneer Fund story.
For the complete Pioneer Fund story call your investment professional, or
Pioneer at 1-800-225-6292, for a prospectus. Please read it carefully before you
invest or send money.
Class B and C Shares have been available since 7/1/96. Past performance does not
guarantee future results.
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.
Call us for:
Account Information, including existing accounts,
new accounts, propectuses, applications
and service forms 1-800-225-6292
FactFoneSM 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
This report must be preceded or accompanied by a current Fund prospectus.
[LOGO] PIONEER FUND
Pioneer Investment Management, Inc.
60 State Street 1298-5784
Boston, Massachusetts 02109 (c) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com Printed on Recycled Paper
