<PAGE>
[pioneer logo]
Pioneer
Limited Maturity
Bond Fund
SEMIANNUAL REPORT 5/31/00
<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 15
Notes to Financial Statements 22
Trustees, Officers and Service Providers 26
The Pioneer Family of Mutual Funds 27
Retirement Plans from Pioneer 28
</TABLE>
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
LETTER FROM THE CHAIRMAN 5/31/00
--------------------------------------------------------------------------------
Dear Shareowner,
--------------------------------------------------------------------------------
As you may know, on May 15, 2000, The Pioneer Group, Inc. and UniCredito
Italiano S.p.A. announced an agreement under which UniCredito is expected to
purchase all of the outstanding stock of Pioneer Group. UniCredito is Italy's
largest banking group based on market capitalization. We are pleased to be
joining with UniCredito not only because of its reputation and breadth, but
also because of the similar business strategies shared by the two companies.
UniCredito employs many of the same investment philosophies that Pioneer has
believed in for over 70 years. In the meantime, your mutual fund will be
managed by the same portfolio management team, which is overseen by a Board of
Trustees. In addition, the union with UniCredito will give Pioneer Investment
Management, your fund's investment adviser, access to greater resources,
enabling us to strengthen and support our money management efforts for all
Pioneer shareowners.
We expect that the transition resulting from the acquisition will not have a
direct impact on fund shareowners. At Pioneer we always strive to provide our
shareowners with exemplary customer service and a diverse product line. Going
forward, we will continue to work as hard as we can to ensure that our
investors' needs are met and that you are satisfied in any dealings you have
with Pioneer.
Soon you will receive a letter and a proxy statement that will contain more
information about the transaction along with information about a special
shareholder meeting. We are excited about the acquisition (which is subject to
regulatory approval) and hope you are as well. I feel confident about prospects
for the days ahead and I truly believe that Pioneer Group has entered into a
relationship that will be beneficial to you.
Please read this report closely, particularly the Portfolio Management
Discussion with Richard Schlanger. The Q&A in this section gives you the
opportunity to read about your Fund and its performance over the period covered
in the report. If you have questions, please contact your investment
professional or call Pioneer at 1-800-225-6292. You can also visit our web site
at www.pioneerfunds.com for more information.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.
Chairman and President
1
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
PORTFOLIO SUMMARY 5/31/00
--------------------------------------------------------------------------------
Portfolio Diversification
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[begin pie chart plot points]
Corporate Bonds 56%
U.S. Government Agency Obligations 40%
U.S. Government Obligations 2%
Short-Term Cash Equivalents 2%
[end plot points]
Portfolio Quality
--------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[begin pie chart plot points]
Treasury/Agency 43%
AAA 12%
AA 6%
A 11%
BBB 19%
Below BBB 8%
Commercial Paper 1%
[end plot points]
10 Largest Holdings
--------------------------------------------------------------------------------
(As a percentage of debt holdings)
<TABLE>
<S> <C>
1. Government National Mortgage Association II, 7.5%, 8/20/27 3.64%
2. U.S. Treasury Notes, 6.375%, 9/30/01 2.53
3. KN Energy Inc., 6.45%, 11/30/01 2.49
4. Government National Mortgage Association, 7.0%, 4/15/29 2.41
5. Shopko Stores, 6.5%, 8/15/03 2.40
6. Government National Mortgage Association II, 6.5%, 3/20/29 2.24
7. Government National Mortgage Association II, 7.0%, 1/20/29 2.21
8. Spieker Properties L.P., 6.8%, 12/15/01 1.98
9. Government National Mortgage Association II, 7.5%, 8/20/28 1.80
10. Echostar DBS Corp., 9.25%, 2/1/06 1.67
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/00 CLASS A SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 5/31/00 11/30/99
$ 3.53 $ 3.62
Income Short-Term Long-Term
Distributions per Share Dividends Capital Gains Capital Gains
(11/30/99-5/31/00) $ 0.110 - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Limited Maturity Bond Fund at public offering price, compared to the
growth of the Merrill Lynch 1-3 Year Treasury Index and the Lehman Brothers
Government/Corporate Bond Index-Intermediate.
[mountain chart plot points]
<TABLE>
<CAPTION>
Lehman Brothers
Government/
Pioneer Limited Merrill Lynch Corporate
Maturity 1-3 Year Bond Index-
Bond Fund* Treasury Index Intermediate
<S> <C> <C> <C>
8/92 10000 10000 9750
9969 10018 9809
5/93 10561 10372 10204
10937 10623 10425
5/94 10698 10586 10466
10737 10697 10457
5/95 11731 11375 11122
12298 11810 11466
5/96 12271 11975 11606
13013 12494 12062
5/97 13176 12766 12332
13837 13235 12743
5/98 14340 13657 13094
15064 14207 13543
5/99 15026 14380 13633
15232 14674 13743
5/00 15340 14978 13820
</TABLE>
[end plot points]
<TABLE>
<CAPTION>
----------------------------------------
Average Annual Total Returns
(As of May 31, 2000)
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 4.59% 4.26%
(8/10/92)
5 Years 4.44 3.91
1 Year 1.37 -1.04
----------------------------------------
</TABLE>
* Reflects deduction of the maximum
2.5% sales charge at the beginning
of the period and assumes reinvestment
of distributions at net asset value.
+ Index comparison begins 8/31/92. The Merrill Lynch 1-3 Year Treasury Index is
an unmanaged, composite index of debt obligations of the U.S. Treasury and U.S.
government agencies (excluding mortgage-backed securities). All issues have a
maturity of at least one year and no more than three years. The Lehman Brothers
Government/Corporate Bond Index-Intermediate is an unmanaged, composite index
of the U.S. bond market and represents only securities with one to ten years to
maturity. Index returns are calculated monthly, 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. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
3
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/00 CLASS B SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 5/31/00 11/30/99
$ 3.53 $ 3.62
Income Short-Term Long-Term
Distributions per Share Dividends Capital Gains Capital Gains
(11/30/99 -5/31/00) $ 0.097 - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Limited Maturity Bond Fund, compared to the growth of the Merrill
Lynch 1-3 Year Treasury Index and the Lehman Brothers Government/
Corporate Bond Index-Intermediate.
[begin chart plot points]
<TABLE>
<CAPTION>
Lehman Brothers
Government/
Pioneer Limited Merrill Lynch Corporate
Maturity 1-3 Year Bond Index-
Bond Fund* Treasury Index Intermediate
<S> <C> <C> <C>
4/94 10000 10000 10000
9987 10014 10007
9961 10119 10043
5/95 10539 10761 10973
10850 11172 11504
5/96 10910 11328 11478
11325 11819 12172
5/97 11521 12077 12324
11845 12520 12943
5/98 12107 12919 13413
12496 13440 14090
5/99 12521 13603 14054
12576 13881 14248
5/00 12603 14169 14405
</TABLE>
[end plot points]
<TABLE>
<CAPTION>
----------------------------------------
Average Annual Total Returns
(As of May 31, 2000)
Net Asset Public Offering
Period Value Price*
<S> <C> <C>
Life-of-Fund 3.85% 3.85%
(4/4//94)
5 Years 3.64 3.64
1 Year 0.65 -1.26
----------------------------------------
</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 2% declines
over three years.
+ Index comparison begins 4/30/94. The Merrill Lynch 1-3 Year Treasury Index is
an unmanaged, composite index of debt obligations of the U.S. Treasury and U.S.
government agencies (excluding mortgage-backed securities). All issues have a
maturity of at least one year and no more than three years. The Lehman Brothers
Government/Corporate Bond Index-Intermediate is an unmanaged, composite index
of the U.S. bond market and represents only securities with one to ten years to
maturity. Index returns are calculated monthly, 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. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
4
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
PERFORMANCE UPDATE 5/31/00 CLASS Y SHARES
--------------------------------------------------------------------------------
Share Prices and Distributions
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 5/31/00 11/30/99
$ 3.53 $ 3.62
Distributions per Share Income Short-Term Long-Term
(11/30/99 -5/31/00) Dividends Capital Gains Capital Gains
$ 0.115 - -
</TABLE>
Investment Returns
--------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Limited Maturity Bond Fund, compared to the growth of the Merrill
Lynch 1-3 Year Treasury Index and the Lehman Brothers Government/
Corporate Bond Index-Intermediate.
[Begin chart plot points]
<TABLE>
<CAPTION>
Lehman Brothers
Government/
Pioneer Limited Merrill Lynch Corporate
Maturity 1-3 Year Bond Index-
Bond Fund* Treasury Index Intermediate
<S> <C> <C> <C>
4/98 10000 10000 10000
5/98 10050 10053 10073
10255 10281 10333
11/98 10432 10458 10582
10444 10485 10525
5/99 10518 10585 10555
10488 10682 10561
11/99 10602 10801 10700
10631 10885 10714
5/00 10678 11026 10818
</TABLE>
[end plot points]
<TABLE>
<CAPTION>
----------------------------------------
Average Annual Total Returns
(As of May 31, 2000)
If If
Period Held Redeemed
<S> <C> <C>
Life-of-Fund
(4/9/98) 3.12% 3.12%
1 Year 0.52 1.52
----------------------------------------
</TABLE>
* Assumes reinvestments of distributions.
+ Index comparison begins 4/30/98. The Merrill Lynch 1-3 Year Treasury Index is
an unmanaged, composite index of debt obligations of the U.S. Treasury and U.S.
government agencies (excluding mortgage-backed securities). All issues have a
maturity of at least one year and no more than three years. The Lehman Brothers
Government/Corporate Bond Index-Intermediate is an unmanaged, composite index
of the U.S. bond market and represents only securities with one to ten years to
maturity. Index returns are calculated monthly, 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. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
5
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 5/31/00
--------------------------------------------------------------------------------
In the following discussion, Richard Schlanger details the investment
environment and strategies that affected your Fund's performance over the past
six months. Rich has been a key member of the team responsible for the
day-to-day management of Pioneer Limited Maturity Bond Fund for seven years.
Q: Over the past six months, what was the economic environment like for bond
investors?
A: Strong economic data over the past six months contributed to the Federal
Reserve's decision to implement a series of short-term interest rate
increases. The Federal Reserve started gradually increasing short-term
rates in the third quarter of 1999; over the past six months rate increases
totaled 100 basis points, or 1%. As of this time, these interest rate hikes
appear to be contributing to a slowdown in the U.S. economy, as suggested
by an overall decrease in retail and auto sales as well as in the purchases
of new homes. As is typically the case in an environment of rising rates,
bond prices declined while yields increased.
Q: How did Pioneer Limited Maturity Bond Fund perform over the past six months?
A: Although the Fund's net asset value decreased somewhat over the six months,
it turned in positive total returns. In addition, as is usually the case in
a high interest rate environment, the Fund provided shareowners with an
attractive level of income. On May 31, the Fund's 30-day SEC yield stood at
6.83%, an increase compared to the 6.31% it was six months ago. As we
anticipate future rate increases, this Fund should be an attractive
investment option for investors with short- to intermediate-term goals.
When and if rates rise, the Fund's shareowners have the potential to
receive higher dividends.
For the six months ended May 31, Class A shares and Class B shares returned
0.56% and 0.21%, respectively, both at net asset value. In comparison, the
average fund in Lipper, Inc.'s short-
6
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
intermediate investment-grade debt funds category returned 1.18%. (Lipper is
an independent firm that tracks mutual fund performance.)
Q: How does the fixed-income team manage the Fund?
A: The fixed-income team meets on at least a weekly basis. At that time, we
evaluate the markets, examine our commitments to sectors and specific
securities and decide where there are buying and selling opportunities. We
carefully examine the balance sheets and earnings forecasts of companies
whose bonds we are considering buying to ensure that they will be able to
repay their debt. In addition, in keeping with Pioneer's value tradition,
we search for bonds whose prices are below what we believe they are truly
worth.
Q: Please describe how the Fund's portfolio is structured and discuss the types
of bonds that contributed to the Fund's performance.
A: Pioneer Limited Maturity Bond Fund invests at least 90% of its assets in
investment-grade instruments. The average credit quality of issues in the
portfolio is AA. The Fund is allowed to invest in securities with a wide
range of maturities, the maximum being securities with 10 years to
maturity. The portfolio's duration, which is a measure of risk, is altered
as we monitor market conditions. As the Fed was raising rates, we shortened
our duration somewhat moving from 3.37 years on November 30, 1999 to 2.97
years on May 31, 2000.
The Fund's portfolio is composed of U.S. government issues, investment-grade
corporate bonds and a small high-yield component. (Investing in below
investment-grade bonds may be more volatile and less liquid than more
highly rated bonds.) The Fund can invest up to 10% of its assets in
high-yield bonds, but on May 31, 2000, these bonds comprised only 7.8% of
the portfolio. Over the six months, the Fund benefited from its holdings in
shorter-term Treasuries and agency securities. The extreme volatility
experienced by equity investors over the past few months caused many of
them to look for a "safe haven" in which to invest their money, and a
number of them chose short-term Treasuries and agency securities. Both of
these types of securities performed well and contributed to your Fund's
performance.
7
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
PORTFOLIO MANAGEMENT DISCUSSION 5/31/00
--------------------------------------------------------------------------------
In addition, the Fund's exposure to Ginnie Mae's (Government National
Mortgage Association) proved beneficial. With discussions circulating that
some agency-backed issues, namely Fannie Maes (Federal National Mortgage
Association) and Freddie Macs (Federal Home Loan Mortgage Corporation), may
lose their government backing, many institutions sold these securities in
favor of GNMAs, which are backed by the full faith and credit of the U.S.
government. As a result, this sector outperformed the other two sectors.
Q: What is your outlook going forward?
A: We believe that the Federal Reserve will continue to raise rates until
growth slows to a level that is more manageable. However, we do believe
that the end of the tightening cycle is in sight, and bonds tend to rally
when a rising rate environment comes to a close. The results are higher
prices and lower yields. This Fund has a history of producing a positive
total return even in an environment that is challenging for bonds. Although
past performance is not indicative of future results, with short and
intermediate rates higher than long-term interest rates, we believe this
Fund has the potential to provide investors who have short- to
intermediate-term time horizons with relative price stability and a steady
income stream.
8
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
INVESTMENTS IN SECURITIES - 98.5%
CORPORATE BONDS - 56.3%
Asset-Backed - 12.9%
$ 216,982 AAA/Aaa Advanta Mortgage Loan Trust, Series
93-4A, 5.55%, 3/25/10 $ 207,091
400,000 AAA/Aaa Americredit Automobile Receivables Trust,
Series 1999-B A4, 5.96%, 3/5/06 386,840
522,407 AAA/Aaa Bay View Auto Trust, Series 1997-RA1,
6.59%, 12/15/04 515,376
250,000 AAA/Aaa Boston Edison Company, 1999-1 A4,
6.91%, 9/15/09 237,340
500,000 AAA/Aaa California Infrastructure SCE-1, Series
1997-1, 6.28%, 9/25/05 484,885
316,912 AAA/Aaa Carco Auto Loan Master Trust, Series
1997-1A, 6.689%, 8/15/04 317,400
350,000 AAA/Aaa Citibank Credit Card Master Trust I, Series
1999-5A, 6.1%, 5/15/08 325,451
250,000 AAA/Aaa Comed Transitional Funding Trust, Series
1997-RA1, 5.34%, 3/25/04 242,555
444,254 A-/Baa1 Continental Airlines, Series 1998-3 Pass
Through Trust C-1, 7.08%, 11/1/04 429,114
331,180 AAA/Aaa CoreStates Home Equity Trust, Series
1994-1, 6.65%, 5/15/09 317,131
500,000 AAA/Aaa Discover Card Master Trust, Series
1998-7A, 5.6%, 5/15/06 472,505
476,219 AAA/Aaa Discover Card Master Trust, Series
1997-2, 6.792%, 4/16/10 464,113
500,000 AAA/Aaa Greenpoint Manufactured Housing, Series
1999-1A2, 6.01%, 8/15/15 484,410
196,206 AAA/Aaa Premier Auto Trust, Series 1997-1A4,
6.35%, 4/6/02 194,946
62,500 AAA/Aaa Sears Credit Account Master Trust, Series
1994-1A, 7.0%, 1/15/04 62,559
----------
$5,141,716
----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Collateralized Mortgage Obligations - 1.2%
$ 61,136 AAA/Aaa Mortgage Capital Funding Inc., 1995-MCI
Class A1B, 7.6%, 5/25/27 $ 60,200
426,332 AAA/Aaa National Realty Finance, 1999-A2,
6.074%, 1/15/08 399,086
----------
$ 459,286
----------
Basic Materials - 1.2%
500,000 BBB-/Baa1 USX Corp., 7.2%, 2/15/04 $ 483,855
----------
Capital Goods - 0.8%
325,000 BBB/Ba1 USA Waste Services, 6.5%, 12/15/02 $ 300,869
----------
Communication Services - 1.1%
350,000 B+/B2 Charter Communications Holdings LLC,
8.25%, 4/1/07 $ 295,750
150,000 B/B2 Nextlink Communications Inc., 10.75%,
6/1/09 144,000
----------
$ 439,750
----------
Consumer Cyclicals - 7.5%
500,000 BBB-/Baa3 A.H. Belo Corp., 6.875%, 6/1/02 $ 485,365
500,000 BBB/Baa2 Delphi Auto Systems, 6.125%, 5/1/04 464,680
350,000 A/A2 General Motors Acceptance Corp.,
6.375%, 12/1/01 344,844
200,000 CC/Caa2 Laidlaw Inc., 7.65%, 5/15/06* 47,000
200,000 BBB+/Baa2 Penny (J.C.) & Co., Inc., 6.5%, 6/15/02 187,066
1,000,000 BBB-/Baa3 Shopko Stores, 6.5%, 8/15/03 945,990
550,000 A+/Aa3 Sony Corp., 6.125%, 3/4/03 532,147
----------
$3,007,092
Consumer Staples - 3.8%
700,000 B/B2 Echostar DBS Corp., 9.25%, 2/1/06 $ 658,000
500,000 B-/B3 Premier Parks, Inc., 9.75%, 6/15/07 478,750
350,000 BBB+/Baa2 SUPERVALU Inc., 9.75%, 6/15/04 370,608
----------
$1,507,358
----------
Energy - 4.4%
500,000 A-/A3 Conoco Inc., 5.9%, 4/15/04 $ 469,070
500,000 BB/Ba2 Gulf Canada Resources Ltd., 9.625%,
7/1/05 509,750
500,000 A-/A3 Nabors Industries, 6.8%, 4/15/04 477,445
</TABLE>
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
Energy - (continued)
$ 300,000 BBB-/Ba1 Santa Fe Snyder Corp., 8.05%, 6/15/04 $ 294,453
-----------
$ 1,750,718
Financial - 16.3%
500,000 BB-/B1 Advanta Corp., 7.0%, 5/1/01 $ 484,640
528,000 A+/Aa3 Associates Corp., 6.5%, 7/15/02 516,711
600,000 A-/A1 Bank One Corp., 7.25%, 8/1/02 591,564
500,000 BB+/Baa3 Capital One Financial Corp., 7.125%,
8/1/08 442,300
500,000 A+/A1 Citicorp, 7.125%, 6/1/03 491,400
500,000 A/A2 Ford Motor Credit Co., 6.55%, 9/10/02 488,845
500,000 A/A2 General Motors Acceptance Corp., 7.05%,
4/23/02 495,045
200,000 A+/A1 Goldman Sachs Group, 7.35%, 10/1/09 186,678
470,000 BBB-/Ba2 Imperial Bank, 8.5%, 4/1/09 425,087
500,000 A/Aa3 NationsBank Corp., 6.5%, 8/15/03 481,465
400,000 A+/Aa2 Norwest Corp., 6.8%, 5/15/02 393,412
500,000 BBB-/Baa2 The Rouse Co., 8.05%, 3/23/01 495,710
250,000 BBB/Baa2 Spieker Properties L.P., 6.65%, 12/15/00 247,652
800,000 BBB/Baa2 Spieker Properties L.P., 6.8%, 12/15/01 779,016
-----------
$ 6,519,525
-----------
Healthcare - 1.1%
500,000 A-/Baa1 Guidant Corp., 6.15%, 2/15/06 $ 456,470
-----------
Technology - 0.6%
250,000 BBB+/Baa1 Sun Microsystems Inc., 7.35%, 8/15/04 $ 244,243
-----------
Transportation - 1.1%
500,000 BB/Ba2 Northwest Airlines Corp., 8.52%, 4/7/04 $ 451,560
-----------
Utilities - 4.3%
250,000 BBB-/Baa3 Great Lakes Power Inc., 8.3%, 3/1/05 $ 243,620
1,000,000 BBB-/Baa2 KN Energy Inc., 6.45%, 11/30/01 978,610
500,000 AA/Aa1 Northern Illinois Gas Co., 6.75%, 6/1/02 494,370
-----------
$ 1,716,600
-----------
Total Corporate Bonds
(Cost $23,679,028) $22,479,042
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS - 42.2%
$ 300,000 Federal Home Loan Bank, 7.08%, 11/5/04 $293,529
300,000 Federal Home Loan Mortgage Corp.,
6.22%, 6/24/08 275,145
58,630 Federal Home Loan Mortgage Corp.,
REMIC Series 1132I, 8.0%, 5/15/06 58,507
49,352 Federal Home Loan Mortgage Corp.,
REMIC Series 1181H, 7.0% 7/15/06 49,193
350,049 Federal Home Loan Mortgage Corp.,
REMIC Series 1145G, 8.0%, 9/15/06 351,121
84,363 Federal Home Loan Mortgage Corp.,
REMIC Series 1564J, 6.5%, 7/15/08 82,200
500,000 Federal Home Loan Mortgage Corp.,
REMIC Series 1848PB, 7.0%, 2/15/20 494,500
157,073 Federal Home Loan Mortgage Corp.,
REMIC Series 1206H, 7.0%, 3/15/21 155,072
409,556 Federal Home Loan Mortgage Corp.,
REMIC Series 1987PM, 6.5%, 10/15/21 401,713
36,358 Federal Home Loan Mortgage Corp.,
REMIC Series 1590K, 6.5%, 10/15/23 36,252
518,305 Federal Home Loan Mortgage Corp.,
REMIC Series 2043G, 6.5%, 4/15/28 490,249
397,872 Federal National Mortgage Association,
7.5%, 4/1/30 386,357
500,000 Federal National Mortgage Association,
Medium Term Note, 6.63%, 6/5/01 498,170
300,000 Federal National Mortgage Association,
Medium Term Note, 6.52%, 9/5/02 294,396
500,000 Federal National Mortgage Association,
Medium Term Note, 6.625%, 11/27/02 490,535
350,000 Federal National Mortgage Association,
Medium Term Note, 5.9%, 6/19/03 335,479
258,583 Federal National Mortgage Association,
REMIC Series 1992-145, 7.15%, 7/25/03 255,648
500,000 Federal National Mortgage Association,
REMIC Series 1999-W5, 6.115%, 11/15/05 459,063
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
U.S. Government and Agency
Obligations - (continued)
$ 302,837 Federal National Mortgage Association,
REMIC Series 1995-23D, 7.0%, 10/25/07 $ 295,421
478,504 Federal National Mortgage Association,
REMIC Series 1993-129KB, 6.5%, 4/25/08 463,800
428,558 Federal National Mortgage Association,
REMIC Series 1993-30PG, 6.65%, 9/25/17 425,747
60,269 Federal National Mortgage Association,
REMIC Series 1988-26C, 7.5%, 7/25/18 60,062
97,518 Federal National Mortgage Association,
REMIC Series 1993-17PE, 6.75%, 6/25/19 96,993
609,525 Federal National Mortgage Association,
REMIC Series 1993-23PJ, 6.7%, 7/25/19 604,277
589,388 Federal National Mortgage Association,
REMIC Series 1998-50EN, 6.5%, 9/25/28 528,074
351,866 Government National Mortgage
Association, 7.5%, 2/15/26 346,500
282,658 Government National Mortgage
Association, 6.5%,. 2/15/29 264,503
986,792 Government National Mortgage
Association, 7.0%, 4/15/29 947,380
500,050 Government National Mortgage
Association, 7.5%, 10/15/29 491,329
498,883 Government National Mortgage
Association, 7.75%, 2/15/30 495,071
500,050 Government National Mortgage
Association, 8.0%, 2/15/30 501,290
430,779 Government National Mortgage
Association, REMIC Series 1998-24A,
6.5%, 11/20/24 413,828
466,158 Government National Mortgage
Association II, 7.5%, 3/20/26 456,718
1,462,799 Government National Mortgage
Association II, 7.5%, 8/20/27 1,431,802
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 5/31/00 (unaudited) (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal S&P/Moody's
Amount Ratings Value
<S> <C> <C> <C>
U.S. Government and Agency
Obligations - (continued)
$ 724,470 Government National Mortgage
Association II, 7.5%, 8/20/28 $ 708,669
907,237 Government National Mortgage
Association II, 7.0%, 1/20/29 867,600
196,185 Government National Mortgage
Association II, 6.5%, 2/20/29 182,848
945,536 Government National Mortgage
Association II, 6.5%, 3/20/29 881,258
1,000,000 U.S. Treasury Notes, 6.375%, 9/30/01 994,370
-----------
Total U.S. Government and Agency
Obligations
(Cost $17,447,840) $16,864,669
-----------
TOTAL INVESTMENT IN SECURITIES
(Cost $41,126,868) $39,343,711
-----------
Commercial Paper - 1.5%
$ 614,000 Household Finance Corp., 6.74%, 6/1/00 $ 614,000
-----------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $614,000) $ 614,000
-----------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $41,740,868) (a) (b) $39,957,711
-----------
</TABLE>
* Issuer is in default.
(a) At May 31, 2000 the net unrealized loss on investments based on cost for
federal income tax purposes of $41,742,958 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in
which there is an excess of value over tax cost $ 12,694
Aggregate gross unrealized loss for all investments in
which there is an excess of tax cost over value (1,797,941)
-----------
Net unrealized loss $(1,785,247)
-----------
</TABLE>
(b) At November 30, 1999 the Fund had a net capital loss carryforward of
$4,019,115 which will expire between 2000 and 2007 if not utilized.
Purchases and sales of securities (excluding temporary cash investments) for
the six months ended May 31, 2000 were as follows:
<TABLE>
<S> <C> <C>
Purchases Sales
-------- -------
Long-term U.S. Government $5,158,452 $13,752,022
Other Long-term Securities 367,910 7,991,595
</TABLE>
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
BALANCE SHEET 5/31/00 (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash investment
of $614,000) (cost $41,740,868) $39,957,711
Cash 427
Receivables -
Fund shares sold 4,767
Interest 543,603
Due from Pioneer Investment Management, Inc. 54,974
Other 1,086
------------
Total assets $40,562,568
------------
LIABILITIES:
Payables -
Fund shares repurchased $ 61,511
Dividends 32,097
Due to affiliates 29,324
Accrued expenses 79,352
------------
Total liabilities $ 202,284
------------
NET ASSETS:
Paid-in capital $47,593,434
Accumulated undistributed net investment income 22,259
Accumulated net realized loss on investments (5,472,252)
Net unrealized loss on investments (1,783,157)
------------
Total net assets $40,360,284
------------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A (based on $33,700,176/9,537,602 shares) $ 3.53
------------
Class B (based on $6,469,845/1,832,868 shares) $ 3.53
------------
Class Y (based on $190,263/53,946 shares) $ 3.53
------------
MAXIMUM OFFERING PRICE:
Class A $ 3.62
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (unaudited)
--------------------------------------------------------------------------------
For the Six Months Ended 5/31/00
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Interest $ 1,743,997
------------
EXPENSES:
Management fees $124,555
Transfer agent fees
Class A 66,373
Class B 12,989
Class Y 590
Distribution fees
Class A 51,845
Class B 40,125
Administrative fees 15,793
Custodian fees 11,662
Registration fees 35,920
Professional fees 23,904
Printing 13,802
Fees and expenses of nonaffiliated trustees 12,444
Miscellaneous 5,497
--------
Total expenses $ 415,499
Less management fees waived and
expenses reimbursed by Pioneer
Investment Management, Inc. (166,924)
Less fees paid indirectly (6,467)
------------
Net expenses $ 242,108
------------
Net investment income $ 1,501,889
------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS:
Net realized loss on investments $ (1,154,476)
Change in net unrealized loss on investments (108,102)
------------
Net loss on investments $ (1,262,578)
------------
Net increase in net assets resulting from operations $ 239,311
------------
</TABLE>
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
For the Six Months Ended 5/31/00 and the Year Ended 11/30/99
<TABLE>
<CAPTION>
Six Months
Ended
5/31/00 Year Ended
(unaudited) 11/30/99
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 1,501,889 $ 3,408,183
Net realized loss on investments (1,154,476) (592,766)
Change in net unrealized gain or loss on investments (108,102) (2,082,562)
------------ -----------
Net increase in net assets resulting from operations $ 239,311 $ 732,855
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.11 and $0.21 per share, respectively) $ (1,275,671) $(2,844,985)
Class B ($0.10 and $0.18 per share, respectively) (218,940) (516,835)
Class Y ($0.11 and $0.23 per share, respectively) (10,478) (23,908)
------------ -----------
Total distributions to shareholders $ (1,505,089) $(3,385,728)
------------ -----------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 8,411,844 $49,295,514
Reinvestment of distributions 1,206,354 2,647,588
Cost of shares repurchased (26,182,489) (50,875,886)
------------ -----------
Net increase (decrease) in net assets resulting
from fund share transactions $(16,564,291) $ 1,067,216
------------ -----------
Net decrease in net assets $(17,830,069) $(1,585,657)
NET ASSETS:
Beginning of period 58,190,353 59,776,010
------------ -----------
End of period (including accumulated undistributed
net investment income of $22,259 and $25,459,
respectively) $ 40,360,284 $58,190,353
------------ -----------
</TABLE>
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
For the Six Months Ended 5/31/00 and the Year Ended 11/30/99
<TABLE>
<CAPTION>
'00 Shares '00 Amount
(unaudited) (unaudited) '99 Shares '99 Amount
<S> <C> <C> <C> <C>
CLASS A
Shares sold 2,105,256 $ 7,495,318 10,232,153 $38,074,896
Reinvestment of distributions 296,481 1,056,394 621,135 2,294,085
Less shares repurchased (6,064,204) (21,589,601) (10,637,046) (39,466,164)
---------- ------------ ----------- -----------
Net increase (decrease) (3,662,467) $(13,037,889) 216,242 $ 902,817
---------- ------------ ----------- -----------
CLASS B
Shares sold 251,508 $ 901,856 3,002,539 $11,109,190
Reinvestment of distributions 39,156 139,519 89,263 329,597
Less shares repurchased (1,224,772) (4,374,318) (3,041,290) (11,242,752)
---------- ------------ ----------- -----------
Net increase (decrease) (934,108) $ (3,332,943) 50,512 $ 196,035
---------- ------------ ----------- -----------
CLASS Y
Shares sold 4,091 $ 14,670 29,860 $ 111,428
Reinvestment of distributions 2,927 10,441 6,463 23,906
Less shares repurchased (60,998) (218,570) (44,458) (166,970)
---------- ------------ ----------- -----------
Net decrease (53,980) $ (193,459) (8,135) $ (31,636)
---------- ------------ ----------- -----------
</TABLE>
18 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
5/31/00 Year Ended
(unaudited) 11/30/99
CLASS A
<S> <C> <C>
Net asset value, beginning of period $ 3.62 $ 3.78
------- ------
Increase (decrease) from investment operations:
Net investment income $ 0.11 $ 0.21
Net realized and unrealized gain (loss) on investments (0.09) (0.16)
--------- -------
Net increase from investment operations $ 0.02 $ 0.05
Distributions to shareholders:
Net investment income (0.11) (0.21)
--------- -------
Net increase (decrease) in net asset value $ (0.09) $ (0.16)
--------- -------
Net asset value, end of period $ 3.53 $ 3.62
--------- -------
Total return* 0.56% 1.47%
Ratio of net expenses to average net assets+ 0.88%** 0.88%
Ratio of net investment income to average net assets+ 6.13%** 5.75%
Portfolio turnover rate 23%** 86%
Net assets, end of period (in thousands) $33,700 $47,781
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 1.55%** 1.31%
Net investment income 5.46%** 5.32%
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 0.85%** 0.85%
Net investment income 6.16%** 5.78%
<CAPTION>
Year Ended Year Ended Year Ended Year Ended
11/30/98 11/30/97 11/30/96 11/30/95
CLASS A
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 3.77 $ 3.79 $ 3.84 $ 3.75
------ ------ ------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.22 $ 0.21 $ 0.24 $ 0.25
Net realized and unrealized gain (loss) on investments 0.01 - (0.05) 0.10
------ ------- ------- ------
Net increase from investment operations $ 0.23 $ 0.21 $ 0.19 $ 0.35
Distributions to shareholders:
Net investment income (0.22) (0.23) (0.24) (0.26)
------- ------- ------- -------
Net increase (decrease) in net asset value $ 0.01 $ (0.02) $ (0.05) $ 0.09
------- ------- ------- -------
Net asset value, end of period $ 3.78 $ 3.77 $ 3.79 $ 3.84
------- ------- ------- -------
Total return* 6.28% 5.64% 5.20% 9.64%
Ratio of net expenses to average net assets+ 0.85% 0.87% 0.87% 0.86%
Ratio of net investment income to average net assets+ 5.78% 6.10% 6.25% 6.43%
Portfolio turnover rate 70% 31% 65% 110%
Net assets, end of period (in thousands) $49,072 $42,058 $54,637 $53,860
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 1.30% 1.44% 1.33% 1.38%
Net investment income 5.33% 5.53% 5.79% 5.92%
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 0.85% 0.85% 0.85% 0.85%
Net investment income 5.78% 6.12% 6.27% 6.44%
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 19
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
5/31/00 Year Ended
(unaudited) 11/30/99
CLASS B
<S> <C> <C>
Net asset value, beginning of period $ 3.62 $ 3.78
------- ------
Increase (decrease) from investment operations:
Net investment income $ 0.10 $ 0.18
Net realized and unrealized gain (loss) on investments (0.09) (0.16)
--------- -------
Net increase from investment operations $ 0.01 $ 0.02
Distributions to shareholders:
Net investment income (0.10) (0.18)
In excess of net investment income - -
--------- -------
Net increase (decrease) in net asset value $ (0.09) $ (0.16)
--------- -------
Net asset value, end of period $ 3.53 $ 3.62
--------- -------
Total return* 0.21% 0.64%
Ratio of net expenses to average net assets+ 1.64%** 1.62%
Ratio of net investment income to average net assets+ 5.38%** 5.04%
Portfolio turnover rate 23%** 86%
Net assets, end of period (in thousands) $ 6,470 $10,018
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 2.31%** 2.05%
Net investment income 4.71%** 4.61%
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 1.62%** 1.61%
Net investment income 5.40%** 5.05%
<CAPTION>
Year Ended Year Ended Year Ended Year Ended
11/30/98 11/30/97 11/30/96 11/30/95
CLASS B
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 3.76 $ 3.79 $ 3.85 $ 3.75
------ ------ ------ ------
Increase (decrease) from investment operations:
Net investment income $ 0.19 $ 0.20 $ 0.21 $ 0.22
Net realized and unrealized gain (loss) on investments 0.01 (0.03) (0.05) 0.11
------ ------- ------- ------
Net increase from investment operations $ 0.20 $ 0.17 $ 0.16 $ 0.33
Distributions to shareholders:
Net investment income (0.18) (0.20) (0.21) (0.23)
In excess of net investment income - - (0.01) -
------- ------- ------- -------
Net increase (decrease) in net asset value $ 0.02 $ (0.03) $ (0.06) $ 0.10
------- ------- ------- -------
Net asset value, end of period $ 3.78 $ 3.76 $ 3.79 $ 3.85
------- ------- ------- -------
Total return* 5.49% 4.60% 4.37% 8.93%
Ratio of net expenses to average net assets+ 1.63% 1.67% 1.69% 1.63%
Ratio of net investment income to average net assets+ 5.00% 5.29% 5.40% 5.61%
Portfolio turnover rate 70% 31% 65% 110%
Net assets, end of period (in thousands) $10,264 $ 5,187 $4,969 $ 2,924
Ratios assuming no waiver of management fees and
assumption of expenses by PIM and no reduction for
fees paid indirectly:
Net expenses 1.99% 2.25% 2.15% 2.17%
Net investment income 4.64% 4.71% 4.94% 5.08%
Ratios assuming waiver of management fees and
assumption of expenses by PIM and reduction for fees
paid indirectly:
Net expenses 1.62% 1.66% 1.67% 1.60%
Net investment income 5.01% 5.30% 5.42% 5.64%
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net value at the end of each period, and no sales charges.
Total return would be reduced if sales charges were taken into account.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
20 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS 5/31/00
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
5/31/00 Year Ended 4/9/98 to
CLASS Y (unaudited) 11/30/99 11/30/98
<S> <C> <C> <C>
Net asset value, beginning of period $ 3.62 $ 3.79 $ 3.77
------ ------ -------
Increase (decrease) from investment
operations:
Net investment income $ 0.11 $ 0.23 $ 0.14
Net realized and unrealized gain
(loss) on investments (0.09) (0.17) 0.02
-------- ------- -------
Net increase from investment
operations $ 0.02 $ 0.06 $ 0.16
Distributions to shareholders:
Net investment income (0.11) (0.23) (0.14)
-------- ------- --------
Net increase (decrease) in net asset
value $(0.09) $(0.17) $ 0.02
-------- ------- --------
Net asset value, end of period $ 3.53 $ 3.62 $ 3.79
-------- ------- --------
Total return* 0.72% 1.64% 4.35%
Ratio of net expenses to average net
assets+ 0.68%** 0.48% 0.55%**
Ratio of net investment income to
average net assets+ 6.35%** 6.18% 5.99%**
Portfolio turnover rate 23%** 86% 70%
Net assets, end of period
(in thousands) $ 190 $ 391 $ 440
Ratios assuming no waiver of
management fees and assumption
of expenses by PIM and no
reduction for fees paid indirectly:
Net expenses 1.35%** 0.90% 0.74%**
Net investment income 5.68%** 5.76% 5.80%**
Ratios assuming waiver of
management fees and assumption
of expenses by PIM and reduction
for fees paid indirectly:
Net expenses 0.67%** 0.46% 0.55%**
Net investment income 6.36%** 6.20% 5.99%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at the end of each period.
** Annualized.
+ Ratios assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 21
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/00 (unaudited)
--------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Limited Maturity Bond Fund (The Fund) is a Massachusetts business trust
registered under the Investment Company Act of 1940 as a diversified, open-end
management investment company. The Fund's investment objective is to seek a
high level of current income consistent with a high level of principal
stability.
The Fund offers three classes of shares - Class A, Class B and Class Y shares.
Each class of shares represents an interest in the same portfolio of
investments of the Fund and has equal rights to voting, redemptions, dividends
and liquidation, except that the level of transfer agent and distribution fees
may differ among classes. Class A and Class B shareholders have exclusive
voting rights with respect to the distribution plan for each class. There is no
distribution plan for Class Y shares.
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 as of trade date. Securities are valued
at prices supplied by independent pricing services, which consider such
factors as Treasury spreads, yields, maturities and ratings. Valuations may
be supplemented by other sources, as required. Principal amounts of
mortgage-backed securities are adjusted for monthly paydowns. Premium and
discount related to certain mortgage-backed securities are amortized or
accreted in proportion to the underlying monthly paydowns. Interest income
is recorded on the accrual basis. Temporary cash investments are valued at
amortized cost.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities that have
the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
22
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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 as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and an indirect subsidiary of The Pioneer Group, Inc. (PGI), earned
$1,029 in underwriting commissions on the sale of fund shares during the six
months ended May 31, 2000.
D. Class Allocations
Distribution fees are calculated based on the average daily net assets
attributable to Class A and Class B 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.
The Fund declares as daily dividends substantially all of its net investment
income. All dividends are paid on a monthly basis. Short-term capital gain
distributions, if any, may be declared with the daily dividends.
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 Y shares can bear different transfer
agent and distribution fees.
23
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 5/31/00 (unaudited) (continued)
--------------------------------------------------------------------------------
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 0.50% of the Fund's
average daily net assets up to $100 million; 0.45% of the next $200 million;
and 0.40% of the excess over $300 million.
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 0.85% of the average daily net assets attributable to Class A
shares; the portion of the Fund-wide expenses attributable to Class B and Class
Y shares will be reduced only to the extent that such expenses are 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 and administration agreements, certain other
services and costs, including accounting, regulatory reporting and insurance
premiums, are paid by the Fund.
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 $15,540 in transfer agent fees payable to PSC at May 31, 2000.
4. Distribution Plans
The Fund adopted a Plan of Distribution with respect to Class A and Class B
shares (Class A Plan and Class B 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 average daily net assets attributable to
Class A shares 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, the Fund pays PFD 1.00% of the average daily net assets
attributable to Class B 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
shares. Included in due to affiliates is $13,784 in distribution fees payable
to PFD at May 31, 2000.
In addition, redemptions of each class of shares (except Class Y shares) may be
subject to a contingent deferred sales charge (CDSC). A CDSC of 0.50% 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 three
years of purchase are subject to a CDSC at
24
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
declining rates beginning at 2.00%, based on the lower of cost or market value
of shares being redeemed. Proceeds from the CDSCs are paid to PFD. For the six
months ended May 31, 2000, CDSCs in the amount of $19,174 were paid to PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the six months ended May 31, 2000
the Fund's expenses were reduced by $6,467 under such arrangements.
6. Line of Credit Facility
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 six months ended May 31, 2000, the Fund
had no borrowings under this agreement.
25
<PAGE>
Pioneer Limited Maturity Bond Fund
--------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
--------------------------------------------------------------------------------
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and President
Mary K. Bush David D. Tripple, Executive Vice President
Richard H. Egdahl, M.D. Eric W. Reckard, Treasurer
Margaret B.W. Graham 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.
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
26
<PAGE>
--------------------------------------------------------------------------------
THE PIONEER FAMILY OF MUTUAL FUNDS
--------------------------------------------------------------------------------
For information about any Pioneer mutual fund, please contact your investment
professional, 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
United States Taxable
Pioneer Growth Shares Pioneer America Income Trust
Pioneer Micro-Cap Fund Pioneer Bond Fund
Pioneer Mid-Cap Fund Pioneer High Yield Fund
Pioneer Mid-Cap Value Fund Pioneer Limited Maturity Bond Fund
Pioneer Science & Technology Fund Pioneer Strategic Income Fund
Pioneer Small Company Fund
Pioneer Tax-Managed Fund Tax-Free
Pioneer Tax-Free Income Fund
International/Global Money Market Fund
Pioneer Emerging Markets Fund Pioneer Cash Reserves Fund*
Pioneer Europe Fund
Pioneer Indo-Asia Fund
Pioneer International Growth Fund
Pioneer World Equity Fund
Growth and Income Funds
Pioneer Fund
Pioneer II
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Real Estate Shares
*An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1 per share, it is possible to
lose money by investing in the Fund.
27
<PAGE>
--------------------------------------------------------------------------------
RETIREMENT PLANS FROM PIONEER
--------------------------------------------------------------------------------
Pioneer has a long history of helping people work toward their retirement
goals, offering plans suited to the individual investor and businesses of all
sizes. For more information on Pioneer retirement plans, contact your
investment professional, or call Pioneer at 1-800-622-0176.
Individual Retirement Account (IRA)
An IRA is a tax-favored account that allows anyone under age 701/2 with earned
income to contribute up to $2,000 annually. Spouses may contribute up to $2,000
annually into a separate IRA, for a total of $4,000 per year for a married
couple. Earnings are tax-deferred, and contributions may be tax-deductible.
Roth IRA
The Roth IRA came about as part of the Taxpayer Relief Act of 1997 and became
available to investors in 1998. Contributions, up to $2,000 a year, are not
tax-deductible, but earnings are tax-free for qualified withdrawals.
401(k) Plan
The traditional 401(k) plan allows employees to make pre-tax contributions
through payroll deduction, up to $10,500 per year or 25% of pay, whichever is
less. Employers may contribute.
SIMPLE (Savings Incentive Match PLan for Employees) - IRA Plan
Businesses with 100 or fewer eligible employees can establish the plan; it
resembles the traditional 401(k), but has no administration costs. Employees
can make pre-tax contributions of up to $6,000 per year, and an employer
contribution is required.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
28
<PAGE>
403(b) Plan
Also known as a Tax-Sheltered Account (TSA), a 403(b) plan is available only to
employees of public schools, not-for-profit hospitals and certain other tax-
exempt organizations. A 403(b) plan lets employees set aside a portion of their
salary, before taxes, through payroll deduction.
Simplified Employee Pension Plan (SEP)
SEPs let self-employed people and small-business owners make tax-deductible
contributions of up to 15% of their income. Generally, employers must
contribute the same percentage of pay for themselves and any eligible
employees; contributions are made directly to employees' IRAs. SEPs are easy to
administer and can be an especially good choice for firms with few or no
employees.
Profit Sharing Plan
Profit sharing plans offer companies considerable flexibility, allowing them to
decide each year whether a contribution will be made and how much, up to 15% of
each participant's pay. These plans can include provisions for loans and
vesting schedules.
Age-Weighted Profit Sharing Plan
Like traditional profit sharing plans, employer contributions are flexible, but
age-weighted plans allocate contributions based on both age and salary. Age-
weighted plans are designed for employers who want to maximize their own
contributions while keeping contributions to employees affordable.
Money Purchase Pension Plan (MPP)
Money purchase plans are similar to profit sharing plans, but allow for higher
annual contributions - up to 25% of pay. MPPs aren't as flexible as profit
sharing plans; a fixed percentage of pay must be contributed each year,
determined when the plan is established. Businesses often set up both MPPs and
profit sharing plans.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
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, prospectuses, 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 at:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[Pioneer Logo]
Pioneer Investment Management, Inc.
60 State Street 8536-00-0700
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
www.pioneerfunds.com [Recycle Logo] Printed on Recycled Paper
