PIONEER WINTHROP REAL ESTATE INVESTMENT FUND
485APOS, 1995-04-25
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                                                          File No. 33-65822
                                                          File No. 811-7870

   
    As Filed with the Securities and Exchange Commission on April 25, 1995.
    


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933    /_X__/
                                                           
         Pre-Effective Amendment No. ___                   /____/
                                                           
   
         Post-Effective Amendment No. 4                    /_X__/
    

                                     and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT    
OF 1940                                                    /_X__/

   
         Amendment No. 5                                   /_X__/
    

                        (Check appropriate box or boxes)

                  PIONEER WINTHROP REAL ESTATE INVESTMENT FUND
               (Exact name of registrant as specified in charter)


                  60 State Street, Boston, Massachusetts 02109
                (Address of principal executive office) Zip Code

                                 (617) 742-7825
              (Registrant's Telephone Number, including Area Code)

       Joseph P. Barri, Hale and Dorr, 60 State Street, Boston, MA 02109
                    (Name and address of agent for service)

         It  is  proposed  that  this  filing  will  become   effective   (check
appropriate box):

          ___  immediately upon filing pursuant to paragraph (b)
          ___  on [date] pursuant to paragraph (b)
          ___  60 days after filing pursuant to paragraph (a)(1)
   
          _X_  on April 28, 1995 pursuant to paragraph (a)(1)
          ___  75 days after filing pursuant to paragraph (a)(2)
          ___  on [date] pursuant to paragraph (a)(2)of Rule 485
    

The Registrant has  registered an indefinite  number of shares  pursuant to Rule
24f-2 under the Investment  Company Act of 1940, as amended.  The Registrant has
filed its Rule 24f-2 Notice for its current fiscal year on February 27, 1995.



<PAGE>



         This  Post-Effective  Amendment No.y4 to the Registration  Statement of
Pioneer Winthrop Real Estate  Investment  Trust, a Massachusetts  business trust
(the  "Massachusetts  Trust"),  is being filed by Pioneer  Winthrop  Real Estate
Investment Trust, a Delaware business trust (the "Delaware Trust"),  pursuant to
Ruley414(d)  and Ruley485(a)  under the Securities Act of 1933, as amended,  for
the  purpose  of  the  Delaware   Trust  adopting  the   Massachusetts   Trust's
Registration   Statement  on  Form  N-1A.   The  Delaware  Trust  is  requesting
acceleration of the effective date of this Post-Effective Amendment to 9:00 a.m.
on April 28,  1995 which is the start of  business  on the first  business  date
after the  Massachusetts  Trust is reorganized as a Delaware business trust. The
reorganization was approved by the shareholders of the Massachusetts  Trust at a
meeting held on April 11, 1995.

                             ----------------------


                       ADOPTION OF REGISTRATION STATEMENT

         The  Delaware  Trust  hereby   affirmatively  adopts  the  Registration
Statement (File Nos. 33-65822 and 811-7870) of the Massachusetts Trust.



<PAGE>

                  PIONEER WINTHROP REAL ESTATE INVESTMENT FUND


            Cross-Reference Sheet Showing Location in Prospectus and
                     Statement of Additional Information of
             Information Required by Items of the Registration Form



Form N-1A Item Number and Caption               Location

Part A

1.  Cover Page............................      Cover Page

2.  Synopsis..............................      Expense Information

3.  Condensed Financial Information.......      Financial Highlights

4.  General Description of Registrant.....      Investment Objectives and
                                                Policies; Management of
                                                the Fund; Information
                                                About Fund Shares

5.  Management of the Fund................      Management of the Fund

6.  Capital Stock and Other Securities....      Investment Objectives and
                                                Policies; Information
                                                About Fund Shares

7.  Purchase of Securities Being Offered..      Information About Fund Shares;
                                                Distribution Plan; Shareholder
                                                Services

8.  Redemption or Repurchase..............      Information About Fund Shares;
                                                Shareholder Services

9.  Pending Legal Proceedings.............      Not Applicable


Part B

10. Cover Page............................      Cover Page

11. Table of Contents.....................      Cover Page

12. General Information and History.......      Cover Page;
                                                Certain Liabilities
<PAGE>


Form N-1A Item Number and Caption               Location


13. Investment Objectives and Policies....      Investment Policies and 
                                                Restrictions

14. Management of the Fund................      Management of the Fund;
                                                Advisory and Subadvisory
                                                Services

15. Control Persons and Principle Holders
      of Securities.......................      Management of the Fund

16. Investment Advisory and Other
      Services............................      Management of the Fund; 
                                                Advisory and Subadvisory
                                                Services; Shareholder
                                                Servicing/Transfer Agent;
                                                Custodian; Independent Public
                                                Accountant

17. Brokerage Allocation and Other
      Practices...........................      Portfolio Transactions

18. Capital Stock and Other Securities....      Description of Shares; 
                                                Certain Liabilities

19. Purchase Redemption and Pricing of
      Securities Being Offered............      Determination of Net Asset
                                                Value; Letter of Intention;
                                                Systematic Withdrawal Plan

20. Tax Status............................      Tax Status

21. Underwriters..........................      Principal Underwriter; 
                                                Underwriting Agreement and
                                                Distribution Plan

22. Calculation of Performance Data.......      Investment Results

   
23. Financial Statements..................      Financial Statements
    

Part C

         Information  required  to be  included in Part C is set forth under the
appropriate item, so numbered, in Part C of this Registration Statement.


<PAGE>


   
Pioneer Winthrop
Real Estate Investment Fund
    

   
Prospectus
April 28, 1995
    

   
   Pioneer Winthrop Real Estate Investment Fund (the "Fund") is a
non-diversified open-end investment company seeking primarily long-term growth
of capital. Current income is a secondary objective. The Fund will seek to
achieve its investment objectives by investing at least 75% of its total assets
in a portfolio consisting primarily of equity securities of real estate
investment trusts and other real estate industry companies.
    

   The Fund may also invest up to 25% of its total assets in debt securities of
real estate industry companies, mortgage- backed securities and short-term
investments. In pursuit of its objectives, the Fund may employ active
management techniques (including futures and options) in an attempt to hedge
risks associated with the Fund's investments in real estate equity securities.
There is, of course, no assurance that the Fund will achieve its investment
objectives.

   Fund returns and share prices fluctuate and the value of your account upon
redemption may be more or less than your purchase price. Shares in the Fund are
not deposits or obligations of, or guaranteed or endorsed by, any bank or other
depository institution, and the shares are not federally insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investments in securities of real estate industry companies
entail risks in addition to those customarily associated with investing in
securities in general. The Fund is intended for investors who can accept the
risks associated with its investments and may not be suitable for all
investors. See "Investment Objectives and Policies" for a discussion of these
risks.

   
   This Prospectus provides information about the Fund that you should know
before investing in the Fund. Please read and retain it for your future
reference. More information about the Fund is included in the Statement of
Additional Information, also dated April 28, 1995, which is incorporated in
this Prospectus by reference. A copy of the Statement of Additional Information
may be obtained free of charge by calling Shareholder Services at
1-800-225-6292 or by written request to the Fund at 60 State Street, Boston,
Massachusetts 02109. Other information about the Fund has been filed with the
Securities and Exchange Commission (the "SEC") and is available upon request
and without charge.
    


<TABLE>
<CAPTION>
               TABLE OF CONTENTS                                         PAGE
<S>             <C>                                                       <C>
I.              EXPENSE INFORMATION                                        2
II.             FINANCIAL HIGHLIGHTS                                       2
III.            INVESTMENT OBJECTIVES AND POLICIES                         2
IV.             MANAGEMENT OF THE FUND                                     4
V.              DISTRIBUTION PLAN                                          6
VI.             INFORMATION ABOUT FUND SHARES                              6
                 How to Purchase Shares                                    6
                 Net Asset Value and Pricing of Orders                     7
                 Dividends, Distributions and Taxation                     8
                 Redemptions and Repurchases                               8
                 Redemption of Small Accounts                             10
                 Description of Shares and Voting Rights                  10
VII.            SHAREHOLDER SERVICES                                      10
                 Account and Confirmation Statements                      10
                 Additional Investments                                   11
                 Financial Reports and Tax Information                    11
                 Distribution Options                                     11
                 Directed Dividends                                       11
                 Direct Deposit                                           11
                 Voluntary Tax Withholding                                11
                 Exchange Privilege                                       11
                 Telephone Transactions and Related Liabilities           12
                 Telecommunications Device for the Deaf (TDD)             12
                 Retirement Plans                                         12
                 Systematic Withdrawal Plans                              12
                 Reinstatement Privilege                                  12
VIII.           INVESTMENT RESULTS                                        13
                APPENDIX A: Certain Investment Practices                  13
</TABLE>

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION
OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

<PAGE>
I. EXPENSE INFORMATION

   
   This table is designed to help you understand the charges and expenses that
you, as a shareholder, will bear directly or indirectly when you invest in the
Fund. The table reflects annual operating expenses based on actual expenses for
the fiscal period ended December 31, 1994.
<TABLE>
<CAPTION>
<S>                                                                         <C>
Shareholder Transaction Expenses:
Maximum Initial Sales Charge on Purchases
 (as a percentage of offering price)                                        5.75%
Maximum Sales Charge on Reinvestment of Dividends                           None
Deferred Sales Charge                                                       None(1)
Redemption Fee                                                              None(2)
Exchange Fee                                                                None
Annual Operating Expenses (as a percentage of net assets):
Management Fee (after Expense Limitation)(3)                                0.48%
12b-1 Fees                                                                  0.25%
Other Expenses (including transfer agent fee, custodian fees and
 accounting and printing expenses)                                          1.02%
Total Operating Expenses (after Expense Limitation):(3)                     1.75%
</TABLE>
    

   
(1) Purchases of $1 million or more and certain purchases by participants in a
    "Group Plan" (as described under "How to Purchase Shares") are not subject
    to an initial sales charge. A contingent deferred sales charge of 1.00%
    may, however, be charged on redemptions by such accounts of shares held
    less than 12 months, as further described under "Redemptions and
    Repurchases" in this Prospectus.
    

(2) Separate fees (currently $10 and $20, respectively) apply to domestic and
    international bank wire transfers of redemption proceeds.

   
(3) Pioneer Winthrop Associates ("PWA" or the "Manager") has agreed not to
    impose a portion of its management fee and to make other arrangements, if
    necessary, to the extent necessary to limit the operating expenses of the
    Fund as listed below. This agreement is voluntary and temporary and may be
    revised or terminated at any time.
    

<TABLE>
<CAPTION>
<S>                              <C>
Expense Limitation               1.75%
Expenses Absent Limitation
  Total Operating Expenses       2.27%
Management Fee                   1.00%
</TABLE>

   
 Example:
    

   You would pay the following fees and expenses on a $1,000 investment,
assuming a 5% annual return and constant expenses, with or without redemption
at the end of each time period:

<TABLE>
<CAPTION>
 One Year        Three Years      Five Years       Ten Years

<S>                  <C>             <C>             <C> 
$74                  $109            $147            $252
</TABLE>

   The example above assumes reinvestment of all dividends and distributions
and that the percentage amounts listed under "Annual Operating Expenses" remain
the same each year.

   The example is designed for information purposes only, and should not be
considered a representation of past or future expenses or return. Actual fund
expenses and return vary from year to year and may be higher or lower than
those shown.

   
   For further information regarding management fees, 12b-1 fees and other
expenses of the Fund, including information regarding the basis upon which fees
and expenses are reduced or reallocated, see "Management of the Fund,"
"Distribution Plan" and "How to Purchase Shares" in this Prospectus and
"Management of the Fund" and "Underwriting Agreement and Distribution Plan" in
the Statement of Additional Information. The Fund's payment of a 12b-1 fee may
result in long-term shareholders indirectly paying more than the economic
equivalent of the maximum initial sales charge permitted under the Rules of
Fair Practice of the National Association of Securities Dealers, Inc. ("NASD").
    

   The maximum sales charge is reduced on purchases of specified amounts and
the value of shares owned in other Pioneer mutual funds is taken into account
in determining the applicable sales charge. See "How to Purchase Shares." No
sales charge is applied to exchanges of shares of other publicly available
Pioneer mutual funds.

II. FINANCIAL HIGHLIGHTS

   The following information has been derived from financial statements which
have been audited by Arthur Andersen LLP, independent public accountants, in
connection with their examination of the Fund's financial statements. Arthur
Andersen LLP's report on the Fund's financial statements as of December 31,
1994 appears in the Fund's Annual Report, which is incorporated by reference
into the Statement of Additional Information. The Annual Report includes more
information about the Fund's performance and is available free of charge by
calling Shareholder Services at 1-800-225-6292.

   
Pioneer Winthrop Real Estate Investment Fund
For A Share Outstanding Throughout the Period:
<TABLE>
<CAPTION>
                                                                   October 25, 1993
                                                                     (commencement
                                                 July 1, 1994       of operations)
                                                   through              through
                                              December 31, 1994      June 30, 1994
<S>                                           <C>                    <C>
Net asset value, beginning of period               $12.020              $12.500
Income from investment operations--
 Net investment income                             $ 0.210              $ 0.268
 Net realized and unrealized loss on
   investments                                      (0.475)              (0.448)
  Total loss from investment operations            $(0.265)             $(0.180)
Distribution to shareholders from--
 Net investment income                              (0.199)              (0.270)
 Paid-in capital                                    (0.151)              (0.030)
 Realized capital gains                             (0.025)                --
Net decrease in net asset value                    $(0.640)             $(0.480)
Net asset value, end of period                     $11.380              $12.020
Total return*                                        (2.16%)              (1.47%)
Ratio of net operating expenses to average
  net assets                                          1.75%**              1.71%**
Ratio of net investment income to average
  net assets                                          3.72%**              3.73%**
Portfolio turnover rate                              17.40%**             23.98%**
Net assets, end of period (in thousands)           $28,068              $29,584
Ratios assuming no waiver of fees or
  assumption of expenses--
  Net operating expenses                              2.27%**              2.15%**
  Net investment income                               3.20%**              3.28%**
</TABLE>
    

 * Assumes initial investment at net asset value at the beginning of period,
   reinvestment of all dividends, and the complete redemption of the investment
   at the net asset value at the end of the period and no sales charges. Total
   return would be reduced if sales charges were taken into account.
** Annualized

III. INVESTMENT OBJECTIVES AND POLICIES

   The Fund's primary investment objective is to seek long-term growth of
capital. Current income is a secondary investment objective. The Fund pursues
these objectives by investing in a non-diversified portfolio consisting
primarily of equity securities

                                        2
<PAGE>
of real estate investment trusts and other real estate industry companies and,
to a lesser extent, in debt securities of such companies and in mortgage-backed
securities.

   Under normal circumstances, at least 75% of the Fund's total assets are
invested in equity securities of real estate investment trusts ("REITs") and
other real estate industry companies. For purposes of the Fund's investments, a
"real estate industry company" is a company that derives at least 50% of its
gross revenues or net profits from either (a) the ownership, development,
construction, financing, management or sale of commercial, industrial or
residential real estate or (b) products or services related to the real estate
industry like building supplies or mortgage servicing. The equity securities of
real estate industry companies in which the Fund will invest consist of common
stock, shares of beneficial interest of real estate investment trusts and
securities with common stock characteristics, such as preferred stock and debt
securities convertible into common stock ("Real Estate Equity Securities").

   The Fund may also invest up to 25% of its total assets in
(a) debt securities of real estate industry companies, (b) mortgage-backed
securities, such as mortgage pass-through certificates, real estate mortgage
investment conduit ("REMIC") certificates and collateralized mortgage
obligations ("CMOs") and (c) short-term investments (as listed below). See
"Other Eligible Investments."

   In pursuit of its objectives, the Fund may employ certain management
techniques including options on securities indices and futures contracts on
securities and indices and options on such futures contracts. These techniques
may be employed in an attempt to hedge interest rate or other risks associated
with the Fund's portfolio securities. See Appendix A for a description of these
investment practices and associated risks.

   For temporary defensive purposes, the Fund may invest up to 100% of its
total assets in short-term investments (as listed below). The Fund will assume
a temporary defensive posture only when economic and other factors affect the
real estate industry market to such an extent that the Manager believes there
to be extraordinary risks in being substantially invested in Real Estate Equity
Securities.

   As to any specific investment in Real Estate Equity Securities, the
Manager's analysis will focus on evaluating the fundamental value of an
enterprise. The Fund will purchase securities for its portfolio when, in the
judgment of the Manager, their market price appears to be less than their
fundamental value and/or which offer a high level of current income consistent
with reasonable investment risk. In selecting specific investments, the Manager
will attempt to identify securities with significant potential for appreciation
relative to their downside exposure and/or which have a timely record and high
level of interest or dividend payments. In making these determinations, the
Manager will take into account price-earnings ratios, cash flow, the
relationship of asset value to market price of the securities, interest or
dividend payment history and other factors which it may determine from time to
time to be relevant. The Manager will attempt to allocate the Fund's portfolio
investments across regional economies and property types.

Risk Factors Associated with the Real Estate Industry

   Although the Fund does not invest directly in real estate, it does invest
primarily in Real Estate Equity Securities and does concentrate its investments
in the real estate industry, and, therefore, an investment in the Fund may be
subject to certain risks associated with the direct ownership of real estate
and with the real estate industry in general. These risks include, among
others: possible declines in the value of real estate; risks related to general
and local economic conditions; possible lack of availability of mortgage funds;
overbuilding; extended vacancies of properties; increases in competition,
property taxes and operating expenses; changes in zoning laws; costs resulting
from the clean-up of, and liability to third parties for damages resulting
from, environmental problems; casualty or condemnation losses; uninsured
damages from floods, earthquakes or other natural disasters; limitations on and
variations in rents; and changes in interest rates.

   In addition, if the Fund has rental income or income from the disposition of
real property acquired as a result of a default on securities the Fund owns,
the receipt of such income may adversely affect its ability to retain its tax
status as a regulated investment company. See "Tax Status" in the Statement of
Additional Information. Investments by the Fund in securities of companies
providing mortgage servicing will be subject to the risks associated with
refinancings and their impact on servicing rights.

Real Estate Investment Trusts and Associated Risk Factors

   The Fund may invest without limitation in shares of REITs. REITs are pooled
investment vehicles which invest primarily in income producing real estate or
real estate related loans or interests. REITs are generally classified as
equity REITs, mortgage REITs or a combination of equity and mortgage REITs.
Equity REITs invest the majority of their assets directly in real property and
derive income primarily from the collection of rents. Equity REITs can also
realize capital gains by selling properties that have appreciated in value.
Mortgage REITs invest the majority of their assets in real estate mortgages and
derive income from the collection of interest payments. Like investment
companies such as the Fund, REITs are not taxed on income distributed to
shareholders provided they comply with several requirements of the Internal
Revenue Code of 1986, as amended (the "Code"). The Fund will indirectly bear
its proportionate share of any expenses paid by REITs in which it invests in
addition to the expenses paid by the Fund.

   Investing in REITs involves certain unique risks in addition to those risks
associated with investing in the real estate industry in general. Equity REITs
may be affected by changes in the value of the underlying property owned by the
REITs, while mortgage REITs may be affected by the quality of any credit
extended. REITs are dependent upon management skills, are not diversified, and
are subject to the risks of financing projects. REITs are subject to heavy cash
flow dependency, default by borrowers, self-liquidation, and the possibilities
of failing to qualify for the exemption from tax for distributed income under
the Code and failing to maintain their exemptions from the Investment Company
Act of 1940, as amended (the "1940 Act"). REITs whose underlying assets

                                        3
<PAGE>
include long-term health care properties, such as nursing, retirement and
assisted living homes, may be impacted by federal regulations concerning the
health care industry.

   REITs (especially mortgage REITs) are also subject to interest rate risks.
When interest rates decline, the value of a REIT's investment in fixed rate
obligations can be expected to rise. Conversely, when interest rates rise, the
value of a REIT's investment in fixed rate obligations can be expected to
decline. In contrast, as interest rates on adjustable rate mortgage loans are
reset periodically, yields on a REIT's investments in such loans will gradually
align themselves to reflect changes in market interest rates, causing the value
of such investments to fluctuate less dramatically in response to interest rate
fluctuations than would investments in fixed rate obligations.

   Investing in REITs involves risks similar to those associated with investing
in small capitalization companies. REITs may have limited financial resources,
may trade less frequently and in a limited volume and may be subject to more
abrupt or erratic price movements than larger company securities. Historically,
small capitalization stocks, such as REITs, have been more volatile in price
than the larger capitalization stocks included in the Standard & Poor's Index
of 500 Common Stocks.

Other Eligible Investments

   The Fund may invest up to 25% of its total assets in any of the investments
described in this section.

   Debt Securities of Real Estate Industry Companies and Mortgage-Backed
Securities. The Fund may invest in debt securities (including convertible debt
securities) of real estate industry companies. The Manager intends to invest no
more than 5% of the Fund's net assets in debt securities rated below Baa by
Moody's Investors Service, Inc. ("Moody's") or BBB by Standard & Poor's Ratings
Group ("Standard & Poor's") or, if unrated, judged by the Manager to be of at
least comparable quality. Securities rated Baa by Moody's or BBB by Standard &
Poor's and securities of comparable quality, referred to as "medium grade"
obligations, have speculative characteristics, and changes in economic
conditions and other factors are more likely to lead to weakened capacity to
pay principal and interest than is the case for higher rated investment grade
securities. In the event a debt security purchased by the Fund is subsequently
down graded below investment grade, the Manager will consider whether the Fund
should continue to hold the security. See the Statement of Additional
Information for a description of the corporate debt ratings assigned by Moody's
and Standard & Poor's and the risks associated with lower-rated debt
securities.

   The Fund may also invest in securities that directly or indirectly represent
participations in, or are collateralized by and payable from, mortgage loans
secured by real property ("Mortgage-Backed Securities"). Investing in Mortgage-
Backed Securities involves certain unique risks in addition to those associated
with investing in the real estate industry in general. These risks include the
failure of a counter-party to meet its commitments, adverse interest rate
changes and the effects of prepayments on mortgage cash flows. See Appendix A
for a more complete description of the characteristics of Mortgage-Backed
Securities and associated risks.

   Short-Term Investments. The Fund may invest in short-term investments
consisting of: corporate commercial paper and other short-term commercial
obligations, in each case rated or issued by companies with similar securities
outstanding that are rated Prime-1, Aa or better by Moody's or A-1, AA or
better by Standard & Poor's; obligations (including certificates of deposit,
time deposits, demand deposits and bankers' acceptances) of banks with
securities outstanding that are rated Prime-1, Aa or better by Moody's, or A-1,
AA or better by Standard & Poor's; obligations issued or guaranteed by the U.S.
Government or its agencies or instrumentalities with remaining maturities not
exceeding 18 months; and repurchase agreements.

Foreign Investments

   The Fund may invest up to 5% of its net assets in equity and debt securities
of foreign real estate companies. See "Foreign Real Estate Companies and
Associated Risks" in the Statement of Additional Information for a description
of the risks associated with foreign investments.

Restricted and Illiquid Securities

   The Fund may invest up to 5% of its net assets in securities exempt from
registration and up to 15% of its net assets in illiquid investments. See
Appendix A for a description of the risks associated with these securities.

Non-Diversified Status

   The Fund is "non-diversified" for purposes of the 1940 Act. As a
non-diversified mutual fund, the Fund may be more susceptible to risks
associated with a single economic, political or regulatory occurrence than a
diversified fund might be. Like most other registered investment companies,
however, the Fund intends to qualify as a "regulated investment company" under
the Code and therefore will be subject to diversification limits, which
generally require that, as of the close of each quarter of its taxable year,
(i) no more than 25% of its assets may be invested in the securities of a
single issuer (except for U.S. Government securities) and (ii) with respect to
50% of its total assets, no more than 5% of its total assets may be invested in
the securities of a single issuer (except for U.S. Government securities) or
invested in more than 10% of the outstanding voting securities of a single
issuer.

Portfolio Turnover

   The Manager generally avoids market-timing or speculating on broad market
fluctuations. Therefore, except as described above, the Fund will be
substantially fully invested at all times. It is anticipated that the portfolio
turnover rate of the Fund will not exceed 75% in the coming year. Changes in
the portfolio may be made promptly when determined to be advisable by reason of
developments not foreseen at the time of the initial investment decision, and
usually without reference to the length of time a security has been held.
Accordingly, portfolio turnover rates are not considered a limiting factor in
the execution of investment decisions.

   The Fund's investment objectives and certain investment restrictions
designated as fundamental in the Statement of Additional Information may be
changed by the Board of Trustees only with shareholder approval.

IV.  MANAGEMENT OF THE FUND

   The Fund's Board of Trustees has overall responsibility for the management
and supervision of the Fund. There are cur-

                                        4
<PAGE>
rently ten Trustees, six of whom are not "interested persons" of the Fund as
defined in the 1940 Act. The Board meets at least quarterly. By virtue of the
functions performed by Pioneer Winthrop Advisers ("PWA" or the "Manager") as
investment adviser, the Fund requires no employees other than its executive
officers, all of whom receive their compensation from PWA or other sources. The
Statement of Additional Information contains the names and general business and
professional background of each Trustee and executive officer of the Fund.

   
   The Fund is managed under an investment advisory contract with PWA. PWA
serves as investment adviser to the Fund and is responsible for the overall
management of the Fund's business affairs, subject only to the authority of the
Board of Trustees. All the Fund's portfolio investment decisions are made by
PWA's advisory committee which relies on investment subadvisory services
provided by Pioneering Management Corporation ("PMC"), a Delaware corporation,
and by Winthrop Advisors Limited Partnership ("WALP"), a Delaware limited
partnership, pursuant to their investment subadvisory contracts with the Fund.
PWA's advisory committee consists of David D. Tripple, PMC's Chief Investment
Officer, Robert Benson, Senior Vice President of PMC and Francis X. Jacoby,
Managing Director of WALP. Day-to-day portfolio decisions are the
responsibility of Robert Benson. Mr. Benson joined PMC in 1974 and is a Vice
President of the Fund. PWA is a joint venture of The Pioneer Group, Inc.
("PGI"), a Delaware corporation, and Winthrop Financial Associates, A Limited
Partnership ("WFA"), a Maryland limited partnership. PWA and WALP currently
provide investment advice to one other Pioneer mutual fund.
    

   
   PMC, a wholly owned subsidiary of PGI, manages and serves as the investment
adviser for other mutual funds and is an investment adviser to certain other
institutional accounts. PMC is one of the oldest money managers in the United
States and, as of March 31, 1994, PMC managed more than $11 billion in assets
for more than 900,000 investors. Also as of that date, PGI employed more than
500 people in the United States and more than 800 people abroad. In its
capacity as subadviser to the Fund, PMC (i) is responsible for making portfolio
investment recommendations to PWA based on information, data and analysis
provided to PMC by WALP and other sources, (ii) assures the Fund's investment
portfolio complies with its investment objectives, policies and restrictions,
and is adequately diversified and sufficiently liquid, (iii) analyzes factors
that affect investment securities generally and (iv) places purchase and sale
orders for the Fund's portfolio transactions as approved by PWA. Pioneer Funds
Distributor, Inc. ("PFD"), an indirect wholly owned subsidiary of PGI, is the
principal underwriter of shares of the Fund.
    

   
   WALP is a wholly owned subsidiary of WFA, one of the nation's largest owners
and managers of real estate. WFA is an indirect majority owned subsidiary of
The Nomura Securities Co., Ltd., an international brokerage and fianancial
services firm. In its capacity as subadviser to the Fund, WALP (i) identifies
and analyzes real estate industry companies, including their real estate
properties, and other permissible investments for the Fund, (ii) analyzes
market conditions affecting the real estate industry generally and specific
geographical and securities markets in which the Fund may invest or is
invested, (iii) continuously reviews and analyzes the investments in the Fund's
portfolio, and (iv) furnishes advisory reports based on such analysis to PWA
and PMC.
    

   The executive offices of PWA, PMC, PGI and PFD are located at 60 State
Street, Boston, Massachusetts 02109. WFA's and WALP's executive offices are
located at One International Place, Boston, Massachusetts 02110.

   Under the terms of its contract with the Fund, PWA serves as the Fund's
manager and investment adviser subject to the supervision of the Fund's
Trustees. PWA pays all the ordinary operating expenses, including executive
salaries and the rental of office space relating to its services for the Fund
with the exception of the following which are to be paid by the Fund: (a) taxes
and other governmental charges, if any; (b) interest on borrowed money, if any;
(c) legal fees and expenses; (d) auditing fees; (e) insurance premiums; (f)
dues and fees for membership in trade associations; (g) fees and expenses of
registering and maintaining registrations by the Fund of its shares with the
SEC, individual states, territories and foreign jurisdictions and of preparing
reports to government agencies; (h) fees and expenses of Trustees not
affiliated with or interested persons of PWA; (i) fees and expenses of the
custodian, dividend disbursing agent, transfer agent and registrar; (j) issue
and transfer taxes chargeable to the Fund in connection with securities
transactions to which the Fund is a party; (k) costs of reports to
shareholders, shareholders' meetings and Trustees' meetings; (l) the cost of
certificates representing shares of the fund; (m) fund accounting, pricing and
appraisal charges and related overhead; and (n) distribution fees in accordance
with Rule 12b-1. The Fund also pays all brokerage commissions and any taxes or
other charges in connection with its portfolio transactions. In addition, the
expense of organizing the Fund and initially registering and qualifying its
shares under federal and state securities laws are being charged to the Fund's
operations, as an expense, over a period not to exceed 60 months from the
Fund's inception date.

   Orders for the Fund's portfolio securities transactions are placed by PMC,
which strives to obtain the best price and execution for each transaction. In
circumstances in which two or more broker-dealers are in a position to offer
comparable prices and execution, consideration may be given to whether the
broker-dealer provides investment research or brokerage services or sells
shares of the Fund or other Pioneer mutual funds. See the Statement of
Additional Information for a further description of PMC's brokerage allocation
practices.

   As compensation for its management and investment advisory services and
certain expenses which PWA incurs, PWA is entitled to a management fee equal to
1.00% per annum of the Fund's average daily net assets. The management fee,
which is greater than those paid by most funds, reflects the added complexity
and additional expenses associated with analyzing real estate investments and
related securities. As compensation for their investment subadvisory services,

                                        5
<PAGE>
PMC and WALP are each entitled to a fee equal to 0.30% per annum of the Fund's
average daily net assets. These subadvisory fees are payable solely by PWA, and
the Fund is not responsible for their payment. All fees are normally computed
daily and paid monthly.

   
   During the fiscal periods ended June 30, 1994 and December 31, 1994, the
Fund incurred expenses of $223,842 and $320,405, respectively, including
management fees paid or payable to PWA of $103,371 and $141,284, respectively.
PWA has agreed temporarily to limit its management fee, so that the Fund's
expenses will not exceed 1.75% of average daily net assets. During the fiscal
periods ended June 30, 1994 and December 31, 1994, this arrangement resulted in
a reduction of expenses for the Fund of $45,812 and $73,158, respectively, due
to reduced management fees. This agreement is voluntary and temporary and may
be revised or terminated at any time.
    

   As of March 31, 1995, John F. Cogan, Jr., Chairman and Chief Executive
Officer of the Fund and PWA, Chairman of PFD, and President and a Director of
PGI, owned approximately 15% of the outstanding capital stock of PGI.

V.  DISTRIBUTION PLAN

   The Fund has adopted a Plan of Distribution (the "Distribution Plan") in
accordance with Rule 12b-1 under the 1940 Act pursuant to which certain
distribution fees are paid to PFD.

   Pursuant to the Distribution Plan, the Fund reimburses PFD for its actual
expenditures to finance any activity primarily intended to result in the sale
of Fund shares or to provide services to Fund shareholders, provided the
categories of expenses for which reimbursement is made are approved by the
Fund's Board of Trustees. As of the date of this Prospectus, the Board of
Trustees has approved the following categories of expenses for the Fund: (i) a
service fee to be paid to qualified broker-dealers in an amount not to exceed
0.25% per annum of the Fund's average daily net assets; (ii) reimbursement to
PFD, PWA, PMC and WALP for their expenditures for broker-dealer commissions and
employee compensation on certain sales of the Fund's shares with no initial
sales charge (see "How to Purchase Shares"); and (iii) reimbursement to PFD for
expenses incurred in providing services to shareholders and supporting
broker-dealers and other organizations (such as banks and trust companies) in
their efforts to provide such services. Banks are currently prohibited under
the Glass-Steagall Act from providing certain underwriting or distribution
services. If a bank were prohibited from acting in any capacity or providing
any of the described services, management would consider what action, if any,
would be appropriate.

   Total expenses under the plan may not exceed 0.25% of average daily net
assets. Distribution expenses of PFD are expected to substantially exceed the
distribution fees paid by the Fund in a given year. The Distribution Plan may
not be amended to increase materially the annual percentage limitation of
average net assets which may be spent for the services described therein
without approval of the shareholders of the Fund.

   The Distribution Plan does not provide for the carryover of reimbursable
expenses beyond 12 months from the time they are incurred. The limited
carryover provision in the Plan may result in an expense invoiced to the Fund
in one fiscal year being paid in the subsequent fiscal year and thus being
treated for purposes of calculating the maximum expenditures of the Fund as
having been incurred in the subsequent fiscal year. In the event of termination
or non-continuance of the Distribution Plan, the Fund may nevertheless, within
12 months of such termination or non-continuance, reimburse any expense which
it incurs prior to such termination or non- continuance, provided that payments
by the Fund during such 12-month period shall not exceed 0.25% of the Fund's
average daily net assets during such period.

VI.  INFORMATION ABOUT FUND SHARES

How to Purchase Shares

   You may purchase shares of the Fund at the public offering price from any
securities broker-dealer having a sales agreement with PFD. The minimum initial
investment is $1,000, except for accounts being established to utilize monthly
bank drafts, government allotments and other similar automatic investment
plans. The minimum investment for such plans, as well as all other subsequent
additions to an account, is $50. Separate minimum investment requirements apply
to retirement plans and no sales charge or minimum investment requirements
apply to the reinvestment of dividends or capital gains distributions.

   The public offering price is the net asset value per share next computed
after receipt of a purchase order, plus a sales charge as follows:
<TABLE>
<CAPTION>
                                        Sales Charge as a % of

                                                                     Dealer
                                          Net                      Allowance
                                        Offering      Amount       as a % of
         Amount of Purchase              Price       Invested        Price
<S>                                      <C>         <C>            <C>
Less than $50,000                         5.75%        6.10%          5.00%
$50,000 but less than $100,000            4.50         4.71           4.00
$100,000 but less than $250,000           3.50         3.63           3.00
$250,000 but less than $500,000           2.50         2.56           2.00
$500,000 but less than $1,000,000         2.00         2.04           1.75
$1 million or more                         -0-          -0-         See Below
</TABLE>

   No sales charge is payable at the time of purchase on investments of $1
million or more, or for investments by certain group plans ("Group Plans"), but
for such investments a contingent deferred sales charge ("CDSC") of 1.00% is
imposed in the event of certain redemption transactions within 12 months of
purchase. See "Redemptions and Repurchases" below. PFD may, in its discretion,
pay a commission to broker-dealers who initiate and are responsible for such
purchases as follows: 1.00% on the first $1 million invested; 0.50% on the next
$4 million invested; and 0.10% on the excess over $5 million invested. These
commissions shall not be payable if the purchaser is affiliated with the
broker-dealer or if the purchase represents the reinvestment of a redemption
made during the previous 12 calendar months. Broker-dealers who receive a
commission in connection with purchases at net asset value by 401(a) or 401(k)
retirement plans with 1,000 or more eligible participants or with at least $10
million in plan assets will be required to return any commissions paid or a pro
rata portion thereof if the retirement plan redeems its shares within 12 months
of purchase. See also "Waiver or Reduction of

                                        6
<PAGE>
Contingent Deferred Sales Charge." In connection with PGI's acquisition of
Mutual of Omaha Fund Management Company and contingent upon the achievement of
certain sales objectives, PFD pays to Mutual of Omaha Investor Services, Inc.
50% of PFD's retention of any sales commission on sales of the Fund's shares
through such dealer. Shares sold outside the U.S. to persons who are not U.S.
citizens may be subject to different sales charges, CDSCs and dealer
compensation arrangements in accordance with local laws and business practices.

   The schedule of sales charges above is applicable to purchases of shares of
the Fund by (i) an individual, (ii) an individual, his or her spouse and
children under the age of 21 and (iii) a trustee or other fiduciary of a trust,
estate or fiduciary account or related trusts or accounts, including pension,
profit-sharing and other employee benefit trusts qualified under Section 401 or
408 of the Code although more than one beneficiary is involved.

   
   The sales charge applicable to a current purchase of shares of the Fund by a
person listed above is determined by adding the value of shares to be purchased
to the aggregate value (at current offering price) of shares of any of the
Pioneer mutual funds previously purchased and then owned (except direct
purchases of the Class A shares of Pioneer Money Market Trust), provided PFD is
notified by such person or his or her broker-dealer each time a purchase is
made which would so qualify. For purposes of the preceding sentence, Pioneer
mutual funds include all mutual funds for which PFD serves as principal
underwriter. For example, a person investing $5,000 in the Fund who currently
owns shares of the Pioneer funds with a value of $50,000 would pay a sales
charge of 4.50% of the offering price on the new investment.
    

   Qualifying for a Reduced Sales Charge. Sales charges may also be reduced
through an agreement to purchase a specified quantity of shares over a
designated thirteen-month period by completing the "Letter of Intention"
section of the Account Application. Information about the "Letter of Intention"
procedure, including its terms, is contained on the back of the Account
Application as well as in the Statement of Additional Information.

   
   Shares of the Fund may be sold at a reduced or eliminated sales charge to
certain Group Plans under which a sponsoring organization makes recommendations
to, permits group solicitation of, or otherwise facilitates purchases by, its
employees, members or participants. Shares of the Fund may be sold at net asset
value per share without a sales charge to state-sponsored Optional Retirement
Program participants if (i) the employer has authorized a limited number of
investment company providers for the Program, (ii) all authorized investment
company providers offer their shares to Program participants at net asset
value, (iii) the employer has agreed in writing to actively promote the
authorized investment providers to Program participants and (iv) the Program
provides for a matching contribution for each participant contribution.
Information about such arrangements is available from PFD.
    

   Shares of the Fund may also be sold at net asset value per share without a
sales charge to: (a) current or former Trustees and officers of the Fund and
partners and employees of its legal counsel; (b) current or former directors,
officers, employees or sales representatives of PGI, its subsidiaries or
affiliates; (c) current or former directors, officers, employees or sales
representatives of any subadviser or predecessor investment adviser to any
investment company for which PMC serves as an investment adviser, and the
subsidiaries or affiliates of such persons; (d) current or former officers,
partners, employees or registered representatives of broker-dealers which have
entered into sales agreements with PFD; (e) members of the immediate families
of any of the foregoing persons; (f) any trust, custodian, pension,
profit-sharing or other benefit plan of the foregoing persons; (g) insurance
company separate accounts; (h) certain "wrap accounts" for the benefit of
clients of financial planners adhering to standards established by PFD; (i)
other funds and accounts for which PMC or any of its affiliates serves as
investment adviser or manager; and (j) certain unit investment trusts. Shares
so purchased are purchased for investment purposes and may not be resold except
through redemption or repurchase by or on behalf of the Fund. The availability
of this privilege is conditioned on the receipt by PFD of written notification
of eligibility. Shares of the Fund may also be sold at net asset value without
a sales charge in connection with certain reorganization, liquidation or
acquisition transactions involving other investment companies or personal
holding companies.

   Investors who are clients of a broker-dealer with a current sales agreement
with PFD may purchase shares of the Fund at net asset value, without a sales
charge, to the extent that the purchase price is paid out of proceeds from one
or more redemptions by the investor of shares of certain other mutual funds. In
order for a purchase to qualify for this privilege, the investor must document
to the broker-dealer that the redemption occurred within 60 days immediately
preceding the purchase of shares of the Fund; that the client paid a sales
charge on the original purchase of the shares redeemed; and that the mutual
fund whose shares were redeemed also offers net asset value purchases to
redeeming shareholders of any of the Pioneer family of mutual funds. Further
details may be obtained from PFD.

Net Asset Value and Pricing of Orders

   Shares of the Fund are sold at the public offering price, which is the net
asset value per share plus the applicable sales charge, if any. Net asset value
per share of the Fund is determined by dividing the value of its assets, less
liabilities, by the number of shares outstanding. The net asset value is
computed once daily, on each day the New York Stock Exchange (the "Exchange")
is open, as of the close of regular trading hours of the Exchange.

   Securities are valued at the last sale price on the principal exchange or
market where they are traded. Securities which have not traded on the date of
valuation, or securities for which sales prices are not generally reported, are
valued at the mean between the current bid and asked prices. Securities quoted
in foreign currencies are converted to U.S. dollars utilizing foreign exchange
rates employed by the Fund's independent pricing services. Generally, trading
in foreign securities is substantially completed each day at various times

                                        7
<PAGE>
prior to the close of regular trading hours on the Exchange. The values of such
securities used in computing the net asset value of the Fund's shares are
determined as of such times. Foreign currency exchange rates are also generally
determined prior to the close of regular trading hours on the Exchange.
Occasionally, events which affect the values of such securities and such
exchange rates may occur between the times at which they are determined and the
close of regular trading hours on the Exchange and will therefore not be
reflected in the computation of the Fund's net asset value. If events
materially affecting the value of such securities occur during such period,
then these securities are valued at their fair value as determined in good
faith by the Trustees. All assets of the Fund for which there is no other
readily available valuation method are valued at their fair value as determined
in good faith by the Trustees.

   An order for shares received by a broker-dealer prior to the close of
regular trading of the Exchange (currently 4:00 p.m. Eastern Time) is confirmed
at the offering price determined at the close of the Exchange on the day the
order is received, provided the order is received by PFD prior to its close of
business (normally 5:30 p.m. Eastern Time). It is the responsibility of
broker-dealers to transmit orders promptly so that they will be received by PFD
prior to its close of business. An order received by a broker-dealer following
the close of regular trading of the Exchange will be confirmed at the offering
price as of the close of regular trading of the Exchange on the next trading
day.

   The Fund reserves the right in its sole discretion to withdraw all or any
part of the offering of shares when, in the judgment of the Fund's management,
such withdrawal is in the best interest of the Fund. An order to purchase
shares is not binding on, and may be rejected by, PFD until it has been
confirmed in writing by PFD and payment has been received.

Dividends, Distributions and Taxation

   The Fund's policy is to pay dividends from net investment income, if any,
quarterly during the months of March, June, September and December and to make
distributions from net realized long-term capital gains, if any, in December.
Net short-term capital gains distributions, if any, may be paid with such
dividends, and additional distributions may also be made at such times as may
be necessary to avoid federal income or excise tax. Dividends from the Fund's
net investment income, net short-term capital gains and certain net foreign
exchange gains are taxable as ordinary income. Dividends from the Fund's net
long-term capital gains are taxable as long-term capital gains.

   Unless shareholders specify otherwise, all distributions will be
automatically reinvested in additional full and fractional shares of the Fund.
For federal income tax purposes, all distributions are taxable as described
above whether a shareholder takes them in cash or reinvests them in additional
shares of the Fund. Information as to the federal tax status of distributions
will be provided to shareholders annually. For further information on the
distribution options available to shareholders, see "Distribution Options" and
"Directed Dividends" below.

   Distributions by the Fund of the dividend income it receives from U.S.
domestic corporations, if any, may qualify for the corporate dividends-received
deduction for corporate shareholders, subject to minimum holding requirements
and debt-financing restrictions under the Code.

   Dividends and other distributions and the proceeds of the redemptions,
repurchases or exchanges of Fund shares paid to individuals and other
non-exempt payees will be subject to a 31% backup withholding of federal income
tax if the Fund is not provided with the shareholder's correct taxpayer
identification number and certification that the number is correct and the
shareholder is not subject to such backup withholding or if the Fund receives
notice from the Internal Revenue Service or a broker that such withholding
applies. Please refer to the Account Application for additional information.

   The Fund has elected to be treated, has qualified and intends to qualify
each year as a "regulated investment company" under Subchapter M of the Code so
that it will not pay federal income taxes on income and capital gains
distributed to shareholders at least annually.

   Under the Code, the Fund will be subject to a nondeductible 4% federal
excise tax on a portion of its undistributed ordinary income and capital gains
if it fails to meet certain distribution requirements with respect to each
calendar year. The Fund intends to make distributions in a timely manner and,
accordingly, does not expect to be subject to the excise tax.

   The description above relates only to U.S. federal income tax consequences
for shareholders who are U.S. persons, i.e., U.S. citizens or residents or U.S.
corporations, partnerships, trusts or estates and who are subject to U.S.
federal income taxes. Non-U.S. shareholders and tax-exempt shareholders are
subject to different tax treatment that is not described above. Shareholders
should consult their own tax advisers regarding state, local and other
applicable tax laws.

Redemptions and Repurchases

   Redemption by Mail. As a shareholder, you have the right to offer your
shares for redemption by delivering to Pioneering Services Corporation ("PSC")
a written request for redemption in proper form and, if applicable, your share
certificates properly endorsed and in good order for transfer. Redemptions will
be made in cash at the net asset value per share next determined following
receipt by PSC of all necessary documents subject in certain cases to the
contingent deferred sales charge described below.

   Good order means that there are no outstanding claims or requests to hold
redemptions on the account, any certificates are endorsed by the record
owner(s) exactly as the shares are registered and the signature(s) are
guaranteed by any of the following eligible guarantor institutions: (i) all
brokers, dealers, municipal securities dealers and/or brokers, government 
securities dealers and/or brokers, who are members of a clearing agency or 
whose net capital exceeds $100,000; (ii) all banks; (iii) all credit unions; 
(iv) all savings associations, including all savings and loan associations; (v) 
all national securities exchanges, registered securities associations, and all 
clearing agencies; and (vi) all trust companies. In addition, in some cases 
(involving fiduciary or corporate transactions), good order may require the 
furnishing of additional documents. You cannot provide a signature guarantee by 
facsimile ("fax"). 

                                        8 
<PAGE> 
Signature guarantees are not necessary for redemption requests of $50,000 or 
less, provided that the request is otherwise in good order, the record holder 
executes the redemption request, payment is directed to the record holder at 
the record address, and the address was not changed during the previous 30 
days. Payment normally will be made within seven days after receipt of the 
appropriate documents. The Fund reserves the right to withhold payment until 
checks received in payment of shares purchased have cleared, which may take up 
to 15 calendar days from the purchase date. For additional information about 
the necessary documentation for redemption by mail, please contact PSC at 
1-800-225-6292. 

   Redemption by Telephone or Fax. Your account is automatically authorized to 
have the telephone redemption privilege unless you indicated otherwise on your 
Account Application or by writing to PSC. Proper account identification will be 
required for each telephone redemption. The telephone redemption option is not 
available to retirement plan accounts. A maximum of $50,000 per account per day 
may be redeemed by telephone or fax and the proceeds may be received by check 
or by bank wire. To receive the proceeds by check: the check must be made 
payable exactly as the account is registered and the check must be sent to the 
address of record which must not have changed in the last 30 days. To receive 
the proceeds by bank wire: the wire must be sent to the bank wire address of 
record which must have been properly pre-designated either on your Account 
Application or on an Account Options Form and which must not have changed in 
the last 30 days. To redeem by fax, send your redemption request to 
1-800-225-4240. You may always elect to deliver redemption instructions to PSC 
by mail. See "Telephone Transactions and Related Liabilities" below. Telephone 
redemptions will be priced as described above. 

   Additional Conditions of Redemption. For the convenience of shareholders, 
the Fund has authorized PFD to act as its agent in the repurchase of shares of 
the Fund. The Fund reserves the right to terminate this procedure at any time. 
Shareholders whose accounts are registered in the name of a broker, dealer or 
other financial institution must contact a representative of the institution 
holding the shares to arrange for redemption. Offers to sell shares to the Fund 
may be communicated to PFD by wire or telephone by broker-dealers for their 
customers. The Fund repurchases shares offered to it at the net asset value per 
share determined as of the close of regular trading on the Exchange on the day 
the offer for repurchase is received and accepted by the broker-dealer if the 
offer is received by PFD before the close of business on that day. 

   A broker-dealer which receives an offer for repurchase is responsible for 
the prompt transmittal of such offer to PFD. Payment of the repurchase proceeds 
will be made in cash to the broker-dealer placing the order. Except for certain 
large accounts subject to a contingent deferred sales charge (as described 
below) neither the Fund nor PFD charges any fee or commission upon such 
repurchase which is then settled as an ordinary transaction with the 
broker-dealer (which may make a charge to the shareholder for this service) 
delivering the shares repurchased. Payment will be made within seven days of 
the receipt by PSC of valid instructions, including validly endorsed 
certificates, if appropriate, in good order as described above. 

   The net asset value per share received upon redemption or repurchase may be 
more or less than the cost of shares to an investor, depending upon the market 
value of the portfolio at the time of redemption or repurchase. Redemptions and 
repurchases are taxable transactions to shareholders. 

   Redemptions and repurchases may be suspended or payment postponed during any 
period in which any of the following conditions exist: the Exchange is closed 
or trading on the Exchange is restricted; an emergency exists as a result of 
which disposal by the Fund of securities owned by it is not reasonably 
practicable or it is not reasonably practicable for the Fund to fairly 
determine the value of the net assets of its portfolio; or the SEC, by order, 
so permits. 

   Purchases of $1,000,000 or more, and purchases by participants in a Group 
Plan which have not been subject to a sales charge, may be subject to a CDSC 
upon redemption or repurchase. A CDSC is payable to PFD on these investments in 
the event of a share redemption within 12 months following the share purchase, 
at the rate of 1.00% of the lesser of the value of the shares redeemed 
(exclusive of reinvested dividend and capital gain distributions) or the total 
cost of such shares. In determining whether a CDSC is payable, and, if so, the 
amount of the charge, it is assumed that shares purchased with reinvested 
dividend and capital gain distributions and then such other shares which are 
held the longest will be the first redeemed. Shares subject to the CDSC which 
are exchanged into another Pioneer fund will continue to be subject to the CDSC 
until the original 12-month period expires. However, no CDSC is payable with 
respect to purchases of shares by 401(a) or 401(k) retirement plans with 1,000 
or more eligible participants or with at least $10 million in plan assets. 

   Waiver or Reduction of Contingent Deferred Sales Charge. The CDSC on any 
shares subject to a CDSC may be waived or reduced for non-retirement accounts 
if: (a) the redemption results from the death of all registered owners of an 
account (in the case of UGMAs, UTMAs and trust accounts, waiver applies upon 
the death of all beneficial owners) or a total and permanent disability (as 
defined in Section 72 of the Code) of all registered owners occurring after the 
purchase of the shares being redeemed or (b) the redemption is made in 
connection with a Systematic Withdrawal Plan (limited in any year to 10% of the 
value of the account in the Fund at the time the withdrawal plan is 
established). 

   The CDSC on any shares subject to a CDSC may be waived or reduced for 
retirement plan accounts if: (a) the redemption results from the death or a 
total and permanent disability (as defined in Section 72 of the Code) occurring 
after the purchase of the shares being redeemed of a shareholder or participant 
in an employer-sponsored retirement plan; (b) the distribution is to a 
participant in an IRA, 403(b) or employer- sponsored retirement plan, is part 
of a series of substantially equal payments made over the life expectancy of 
the participant or the joint life expectancy of the participant and his or her 
beneficiary or as scheduled periodic payments to a 

                                        9 
<PAGE> 
participant (limited in any year to 10% of the value of the participant's 
account at the time the distribution amount is established; a required minimum 
distribution due to the participant's attainment of age 70-1/2 may exceed the 
10% limit only if the distribution amount is based on plan assets held by 
Pioneer); (c) the distribution is from a 401(a) or 401(k) retirement plan and 
is a return of excess employee deferrals or employee contributions or a 
qualifying hardship distribution as defined by the Code or results from a 
termination of employment (limited with respect to a termination to 10% per 
year of the value of the plan's assets in the Fund as of the later of the prior 
December 31 or the date the account was established unless the plan's assets 
are being rolled over to or reinvested in the same class of shares of a Pioneer 
mutual fund subject to the CDSC of the shares originally held); (d) the 
distribution is from an IRA, 403(b) or employer-sponsored retirement plan and 
is to be rolled over to or reinvested in the same class of shares in a Pioneer 
mutual fund and which will be subject to the applicable CDSC upon redemption; 
(e) the distribution is in the form of a loan to a participant in a plan which 
permits loans (each repayment of the loan will constitute a new sale which will 
be subject to the applicable CDSC upon redemption); or (f) the distribution is 
from a qualified defined contribution plan and represents a participant's 
directed transfer (provided that this privilege has been pre-authorized 
through a prior agreement with PFD regarding participant directed transfers). 

   The CDSC on any shares subject to a CDSC may be waived or reduced for either 
non-retirement or retirement plan accounts if: (a) the redemption is made by 
any state, county, or city, or any instrumentality, department, authority, or 
agency thereof, which is prohibited by applicable laws from paying a CDSC in 
connection with the acquisition of shares of any registered investment 
management company; or (b) the redemption is made pursuant to the Fund's right 
to liquidate or involuntarily redeem shares in a shareholder's account. 

Redemption of Small Accounts 

   If a shareholder holds shares of the Fund in an account with a net asset 
value of less than $500 due to redemptions or exchanges, the Fund may redeem 
the shares held in this account at net asset value if the shareholder has not 
increased the net asset value of the shares in the account to at least $500 
within six months of written notice by the Fund to the shareholder of the 
Fund's intention to redeem the shares. 

Description of Shares and Voting Rights 

   
   The Fund, a non-diversified open-end management investment company (commonly 
referred to as a mutual fund) was established as a Massachusetts business trust 
on July 1, 1993 and was reorganized as a Delaware business trust on April 28, 
1995 under an Agreement and Declaration of Trust (the "Declaration of Trust"). 
    

   
   The Trustees are responsible for the overall management and supervision of 
the Fund's affairs. Each share represents an equal proportionate interest in 
the Fund with each other share. Shares entitle their holders to one vote per 
share in the election of Trustees and other matters submitted to shareholders. 
Shares have noncumulative voting rights, do not have preemptive or subscription 
rights and are transferable. The Trustees are empowered, without shareholder 
approval, by the Agreement and Declaration of Trust (the "Declaration of 
Trust") and By-Laws to create additional series of shares and to classify and 
reclassify any new or existing series of shares into one or more classes. 
    

   The Declaration of Trust permits the issuance of series of shares in 
addition to the Fund which would represent interests in separate portfolios of 
investments. No series would be entitled to share in the assets of any other 
series or be liable for the expenses or liabilities of any other series. The 
Fund is authorized, but does not currently intend to, issue multiple classes of 
its shares. 

   The Fund does not intend to hold annual shareholder meetings. Shareholders 
have certain rights, as set forth in the Declaration of Trust, including the 
right to call a meeting of shareholders for the purpose of voting on the 
removal of one or more Trustees. Such removal can be effected upon the action 
of two-thirds of the outstanding shares of the Fund. 

   In addition to the requirements under Delaware law, the Declaration of Trust 
provides that a shareholder of the Fund may bring a derivative action on behalf 
of the Fund only if the following conditions are met: (a) shareholders eligible 
to bring such derivative action under Delaware law who hold at least 10% of the 
outstanding shares of the Fund, or 10% of the outstanding shares of the series 
or class to which such action relates, shall join in the request for the 
Trustees to commence such action; and (b) the Trustees must be afforded a 
reasonable amount of time to consider such shareholder request and investigate 
the basis of such claim. The Trustees shall be entitled to retain counsel or 
other advisers in considering the merits of the request and shall require an 
undertaking by the shareholders making such request to reimburse the Fund for 
the expense of any such advisers in the event that the Trustees determine not 
to bring such action. 

   In the interest of economy and convenience, the Fund does not issue 
certificates representing Fund shares unless requested. Instead, the transfer 
agent maintains a record of each shareholder's ownership. Certificates for 
fractional shares will not be issued. Although there is currently no fee for 
the issuance of certificates, the Fund reserves the right to charge such a fee. 

VII.  SHAREHOLDER SERVICES 

   PSC is the shareholder services and transfer agent for shares of the Fund. 
PSC, a Massachusetts corporation, is a wholly owned subsidiary of PGI. PSC's 
offices are located at 60 State Street, Boston, Massachusetts 02109, and 
inquiries to PSC should be mailed to Pioneering Services Corporation, P.O. Box 
9014, Boston, Massachusetts 02205-9014. Brown Brothers Harriman & Co. (the 
"Custodian") serves as the custodian of the Fund's portfolio securities and 
other assets. The principal business address of the Mutual Fund Division of the 
Custodian is 40 Water Street, Boston, Massachusetts 02109. 

Account and Confirmation Statements 

   PSC maintains an account for each shareholder and all transactions of the 
shareholder are recorded in this account. 

                                       10 
<PAGE> 
Confirmation statements showing the details of transactions are sent to 
shareholders quarterly for dividend reinvestment and Investomatic transactions 
and more frequently for other types of transactions. The Pioneer Combined 
Account Statement, mailed quarterly, is available to all shareholders who have 
more than one Pioneer account. 

   Shareholders whose shares are held in the name of an investment 
broker-dealer or other party will not normally have an account with the Fund 
and might not be able to utilize some of the services available to shareholders 
of record. Examples of services that might not be available are investment or 
redemption of shares by mail or telephone, automatic reinvestment of dividends 
and capital gains distributions, systematic withdrawal plan, Letters of 
Intention, Rights of Accumulation, telephone exchanges and redemptions, and 
newsletters. 

Additional Investments 

   You may add to your account by sending a check ($50 minimum) to PSC; please 
indicate your account number clearly. The designated portion of a confirmation 
statement may be used as a remittance slip to make additional investments. You 
may also make arrangements for regular automatic investments through payroll 
deduction, government/military allotments or through a Pioneer Investomatic 
Plan. A Pioneer Investomatic Plan provides for monthly or quarterly investments 
by means of a preauthorized electronic funds transfer or draft drawn on a 
checking account. Pioneer Investomatic Plan investments are voluntary, and you 
may discontinue the Plan without penalty upon 30 days' written notice to PSC. 
PSC acts as agent for the purchasers, the broker-dealer and PFD in maintaining 
Pioneer Investomatic Plans. 

   Additions to a shareholder's account, whether by check or through a Pioneer 
Investomatic Plan, are invested in full and fractional shares of the Fund at 
the applicable offering price in effect as of the close of the Exchange on the 
day of receipt. 

Financial Reports and Tax Information 

   As a shareholder, you will receive financial reports at least semiannually. 
In January of each year the Fund will mail to you information about the tax 
status of dividends and distributions. 

Distribution Options 

   Dividends and capital gains distributions, if any, will automatically be 
invested in additional shares of the Fund, at the applicable net asset value 
per share, unless you indicate another option on the Account Application. 

   Two other options available are (a) dividends in cash and capital gains 
distributions in additional shares; and (b) all dividends and distributions in 
cash. These two options are not available, however, for retirement plans or an 
account with a net asset value of less than $500. Changes in the distribution 
option may be made by written request to PSC. 

Directed Dividends 

   
   You may elect (in writing) to have the dividends paid by one Pioneer fund 
account invested in a second Pioneer fund. The value of this second account 
must be at least $1,000 ($500 for Pioneer Fund or Pioneer II). Invested 
dividends may be in any amount. There are no fees or charges for this service. 
Retirement plan shareholders may only direct dividends to accounts with 
identical registrations; e.g., PGI IRA Cust for John Smith may only go into 
another account registered PGI IRA Cust for John Smith. 
    

Direct Deposit 

   If you have elected to take distributions, whether dividends or dividends 
and capital gains, in cash, or have established a Systematic Withdrawal Plan, 
you may choose to have those cash payments deposited directly into your 
savings, checking, or NOW bank account. You may establish this service by 
completing the appropriate section on the Account Application when opening a 
new account or the Account Options Form for an existing account. 

Voluntary Tax Withholding 

   You may request (in writing) that PSC withhold 28% of the dividends and 
capital gain distributions paid from an account (before any reinvestment) and 
forward the amount withheld to the Internal Revenue Service as a credit against 
federal income taxes. This option is not available for retirement plan accounts 
or for accounts subject to backup withholding. 

Exchange Privilege 

   You may exchange your shares of the Fund at net asset value, without a sales 
charge, for shares of other Pioneer funds which do not offer different classes 
of shares or for the Class A shares of those Pioneer funds that offer more than 
one class of shares. There are currently no sales charges or fees on exchanges. 

   Exchanges must be at least $1,000. A new Pioneer account opened through an 
exchange must have a registration identical to that on the original account. 
PSC will process exchanges only after receiving an exchange request in proper 
form. The exchange privilege is available only in those states where exchanges 
can legally be made. 

   Written Exchanges. If the exchange request is in writing, it must be signed 
by all record owner(s) exactly as the shares are registered. If your original 
account includes a Pioneer Investomatic or Systematic Withdrawal Plan and you 
open a new account by exchange, you should specify whether the plans should 
continue in your new account or remain with your original account. Written 
exchange requests may be sent by mail or fax. 

   Telephone Exchanges. Your account is automatically authorized to have the 
telephone exchange privilege unless you indicated otherwise on your Account 
Application or by writing to PSC. Proper account identification will be 
required for each telephone exchange. Telephone exchanges may not exceed 
$500,000 per account per day. All telephone exchange requests will be recorded. 

                                       11 
<PAGE> 
Automatic Exchange. You may automatically exchange shares from one Pioneer 
account to another Pioneer account on a regular schedule, either monthly or 
quarterly. The accounts must have identical registrations and the originating 
account must have a minimum balance of $5,000. The exchange will occur on the 
18th day of each month. 

   If an exchange request is received by PSC before 4:00 p.m. Eastern Time (or 
before the time that the Exchange closes for regular trading on that day, if 
different), the exchange will be effective on that day if the requirements 
above have been met. If the exchange request is received after 4:00 p.m. 
Eastern Time, the exchange will be effective on the following business day. 

   You should consider the differences in objectives and policies of the funds, 
as described in each fund's current prospectus, before making any exchange. For 
federal and (generally) state income tax purposes, an exchange represents a 
sale of the shares exchanged and a purchase of shares in another fund. 
Therefore, an exchange could result in a gain or loss on the shares sold, 
depending on the cost basis of these shares and the timing of the transaction, 
and special tax rules may apply. 

   To prevent abuse of the exchange privilege to the detriment of other Fund 
shareholders, the Fund and PFD reserve the right to limit the number and/or 
frequency of exchanges and/or to charge a fee for exchanges. The Fund will 
notify shareholders at least 60 days prior to any such modification or 
termination of the exchange privilege. 

Telephone Transactions and Related Liabilities 

   Your account is automatically authorized to have telephone transaction 
privileges unless you indicated otherwise on your Account Application or by 
writing to PSC. You may sell or exchange your Fund shares by telephone by 
calling 1-800- 225-6292 between the hours of 8:00 a.m. and 8:00 p.m. Eastern 
Time on weekdays. See "Redemptions and Repurchases" and "Exchange Privilege" 
for more information. 

   To confirm that each transaction instruction received by telephone is 
genuine, the Fund will record each telephone transaction, require the caller to 
provide the personal identification number (PIN) for the account and send you a 
written confirmation of each telephone transaction. Different procedures may 
apply to accounts that are registered to non-U.S. citizens or that are held in 
the name of an institution or in the name of an investment broker-dealer or 
other third-party. If reasonable procedures, such as those described above, are 
not followed, the Fund may be liable for any loss due to unauthorized or 
fraudulent instructions. In all other cases, neither the Fund, PSC nor PFD will 
be responsible for the authenticity of instructions received by telephone, 
therefore, you bear the risk of loss for unauthorized or fraudulent telephone 
transactions. The Fund may implement other procedures from time to time. 

   During times of economic turmoil or market volatility or as a result of 
severe weather or a natural disaster, it may be difficult to contact the Fund 
by telephone to institute a redemption or exchange. You should communicate with 
the Fund in writing if you are unable to reach the Fund by telephone. 

Telecommunications Device for the Deaf (TDD) 

   If you have a hearing disability and your own TDD keyboard equipment, you 
can call our TDD number toll-free at 1-800- 225-1997, week days from 8:30 a.m. 
to 5:30 p.m. Eastern Time, to contact our telephone representatives with 
questions about your account. 

Retirement Plans 

   Please contact the Retirement Plans Department of PSC at 1-800-622-0176 for 
information relating to retirement plans for business, Simplified Employee 
Pension Plans, Individual Retirement Accounts (IRAs), Section 401(k) salary 
reduction plans and Section 403(b) retirement plans for employees of certain 
non-profit organizations and public school systems, all of which are available 
in conjunction with investments in the Fund. The Account Application 
accompanying this Prospectus should not be used to establish such plans. 
Separate applications are required. 

Systematic Withdrawal Plans 

   If your account has a total value of at least $10,000, you may establish a 
Systematic Withdrawal Plan providing for fixed payments at regular intervals. 
Periodic checks of $50 or more will be sent to you, or any person designated by 
you, monthly or quarterly, and your periodic redemptions of shares may be 
taxable transactions. You may also direct that withdrawal checks be paid to 
another person, although if you make this designation after you have opened 
your account, a signature guarantee must accompany your instructions. Purchases 
of shares of the Fund at a time when you have a Systematic Withdrawal Plan in 
effect may result in the payment of unnecessary sales charges and may therefore 
be disadvantageous. 

   You may obtain additional information by calling PSC at 1-800-225-6292 or by 
referring to the Statement of Additional Information. 

Reinstatement Privilege 

   If you redeem all or part of your shares of the Fund, you may reinvest all 
or part of the redemption proceeds without a sales commission in shares of the 
Fund if you send a written request to PSC not more than 90 days after your 
shares were redeemed. Your redemption proceeds will be reinvested at the next 
determined net asset value of the shares of the Fund after receipt of the 
written request for reinstatement. You may realize a gain or loss for federal 
income tax purposes as a result of the redemption, and special tax rules may 
apply if a reinvestment occurs. You may also reinvest in certain other Pioneer 
mutual funds; in this case you must meet the minimum investment requirement for 
each fund you enter. The 90-day reinstatement period may be extended by PFD for 
periods of up to one year for shareholders living in areas that have 
experienced a natural disaster, such as a flood, hurricane, tornado, or 
earthquake. 

   The options and services available to shareholders, including the terms of 
the Exchange Privilege and the Pioneer Investomatic Plan, may be revised, 
suspended, or terminated at any time by PFD or by the Fund. You may establish 
the services described in this section when you open your account. You may also 
establish or revise many of them on an existing account by completing an 
Account Options Form, which you may obtain by calling 1-800-225-6292. 

                                       12 
<PAGE> 
VIII. INVESTMENT RESULTS 

   The Fund may include in advertisements, and furnish to existing or 
prospective shareholders, information concerning the average annual total 
return on an investment in the Fund for a designated period of time. Whenever 
this information is provided, it includes a standardized calculation of average 
annual total return computed by determining the average annual compounded rate 
of return that would cause a hypothetical investment (after deduction of the 
maximum sales charge) made on the first day of the designated period (assuming 
all dividends and distributions are reinvested) to equal the resulting net 
asset value of such hypothetical investment on the last day of the designated 
period. The periods illustrated would normally include one, five and ten years 
or such lesser periods as the Fund has been in existence. These standardized 
calculations do not reflect the impact of federal or state income taxes. 

   From time to time, the Fund may include in advertisements or other 
communications to existing or proposed shareholders its respective "yield" and 
"effective yield." Whenever yield information is provided, it includes a 
standardized yield calculation computed by dividing the Fund's net investment 
income per share during a base period of 30 days, or one month, by the maximum 
offering price per share of the Fund on the last day of such base period. The 
resulting "30-day yield" is then annualized as described below. The Fund's net 
investment income per share is determined by dividing the Fund's net investment 
income during the base period by the average number of shares of the Fund 
entitled to receive dividends during the base period. The Fund's 30-day yield 
is then "annualized" by a computation that assumes that the Fund's net 
investment income is earned and reinvested for a six-month period at the same 
rate as during the 30-day base period and that the resulting six-month income 
will be generated over an additional six months. 

   The computation methods described above are prescribed for advertising and 
other communications subject to SEC Rule 482. Communications not subject to 
this rule may contain a number of different measures of performance, 
computation methods and assumptions, including but not limited to: historical 
total returns; distribution returns; results of actual or hypothetical 
investments; changes in dividends, distributions or share values; or any 
graphic illustration of such data. These data may cover any period of the 
Fund's existence and may or may not include the impact of sales charges, taxes 
or other factors. 

   The Fund's investment results will vary from time to time depending on 
market conditions, the composition of the Fund's portfolio, and operating 
expenses of the Fund. The temporary management fee reduction and expense 
limitation arrangement by PWA has the effect of increasing total return. These 
factors and possible differences in the methods used in calculating investment 
results should be considered when comparing performance information regarding 
the Fund to information published for other investment companies and other 
investment vehicles. You should also consider return quotations relative to 
changes in the value of the Fund's shares and the risks associated with the 
Fund's investment objectives and policies. At any time in the future, return 
quotations may be higher or lower than past return quotations, and there can be 
no assurance that any historical return quotation will continue in the future. 

   The Fund may also include securities industry, real estate industry or 
comparative performance information in advertising or marketing the Fund's 
shares. Such performance information may include rankings or listings by 
magazines, newspapers, or independent statistical or ratings services, such as 
Lipper Analytical Services, Inc. or Ibbotson Associates. 

   For more information about the calculation methods used to compute the 
Fund's investment results, see the Statement of Additional Information. 

APPENDIX A: Certain Investment Practices 

   This Appendix provides a brief description of certain securities in which 
the Fund may invest and certain transactions it may make. For a more complete 
discussion of these and other securities and practices, see "Investment 
Objectives and Policies" in this Prospectus and "Investment Policies and 
Restrictions" in the Statement of Additional Information. 

Mortgage-Backed Securities and Associated Risks 

   The Fund may invest up to 25% of its total assets in mortgage pass-through 
certificates and multiple-class pass-through securities, such as real estate 
mortgage investment conduits ("REMIC") pass-through certificates, 
collateralized mortgage obligations ("CMOs") and stripped mortgage-backed 
securities ("SMBS"), and other types of Mortgage-Backed Securities that may be 
available in the future. 

   Guaranteed Mortgage Pass-Through Securities. The Fund may invest in 
guaranteed mortgage pass-through securities which represent participation 
interests in pools of residential mortgage loans and are issued by U.S. 
Governmental or private lenders and guaranteed by the U.S. Government or one of 
its agencies or instrumentalities, including but not limited to the Government 
National Mortgage Association ("Ginnie Mae"), the Federal National Mortgage 
Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation 
("Freddie Mac"). Ginnie Mae certificates are guaranteed by the full faith and 
credit of the United States government for timely payment of principal and 
interest on the certificates. Fannie Mae certificates are guaranteed by Fannie 
Mae, a federally chartered and privately-owned corporation for full and timely 
payment of principal and interest on the certificates. Freddie Mac certificates 
are guaranteed by Freddie Mac, a corporate instrumentality of the United States 
government, for timely payment of interest and the ultimate collection of all 
principal of the related mortgage loans. 

   
   Multiple-Class Pass-Through Securities and Collateralized Mortgage 
Obligations. The Fund may also invest in CMOs and REMIC pass-through or 
participation certificates, which may be issued by, among others, U.S. 
Government agencies and instrumentalities as well as private lenders. CMOs and 
REMIC certificates are issued in multiple classes and the principal of and 
interest on the mortgage assets may be 
allocated among the several classes of CMOs or REMIC certificates in various 
ways. Each class of CMOs or REMIC 
    


                                       13 
<PAGE> 
certificates, often referred to as a "tranche," is issued at a specific 
adjustable or fixed interest rate and must be fully retired no later than its 
final distribution date. Generally, interest is paid or accrues on all classes 
of CMOs or REMIC certificates on a monthly basis. 

   Typically, CMOs are collateralized by Ginnie Mae, Fannie Mae or Freddie Mac 
certificates but also may be collateralized by other mortgage assets such as 
whole loans or private mortgage pass-through securities. Debt service on CMOs 
is provided from payments of principal and interest on collateral of mortgaged 
assets and any reinvestment income thereon. 

   A REMIC is a CMO that qualifies for special tax treatment under the Code and 
invests in certain mortgages primarily secured by interests in real property 
and other permitted investments. Investors may purchase "regular" and 
"residual" interest shares of beneficial interest in REMIC trusts although the 
Fund does not intend to invest in residual interests. 

   Risk Factors Associated with Mortgage-Backed Securities. As discussed above, 
investing in Mortgage-Backed Securities involves certain unique risks in 
addition to those risks associated with investing in the real estate industry 
in general. These risks include the failure of a counter-party to meet its 
commitments, adverse interest rate changes and the effects of prepayments on 
mortgage cash flows. The Fund will not invest in the lowest tranche of CMOs and 
REMIC certificates. When interest rates decline, the value of an investment in 
fixed rate obligations can be expected to rise. Conversely, when interest rates 
rise, the value of an investment in fixed rate obligations can be expected to 
decline. In contrast, as interest rates on adjustable rate mortgage loans are 
reset periodically, yields on investments in such loans will gradually align 
themselves to reflect changes in market interest rates, causing the value of 
such investments to fluctuate less dramatically in response to interest rate 
fluctuations than would investments in fixed rate obligations. 

   Further, the yield characteristics of Mortgage-Backed Securities, such as 
those in which the Fund may invest, differ from those of traditional fixed 
income securities. The major differences typically include more frequent 
interest and principal payments (usually monthly), the adjustability of 
interest rates, and the possibility that prepayments of principal may be made 
substantially earlier than their final distribution dates. 

   Prepayment rates are influenced by changes in current interest rates and a 
variety of economic, geographic, social and other factors and cannot be 
predicted with certainty. Both adjustable rate mortgage loans and fixed rate 
mortgage loans may be subject to a greater rate of principal prepayments in a 
declining interest rate environment and to a lesser rate of principal 
prepayments in an increasing interest rate environment. Under certain interest 
rate and prepayment rate scenarios, the Fund may fail to recoup fully its 
investment in Mortgage-Backed Securities notwithstanding any direct or indirect 
governmental or agency guarantee. When the Fund reinvests amounts representing 
payments and unscheduled prepayments of principal, it may receive a rate of 
interest that is lower than the rate on existing adjustable rate mortgage 
pass-through securities. Thus, Mortgage-Backed Securities, and adjustable rate 
mortgage pass-through securities in particular, may be less effective than 
other types of U.S. Government securities as a means of "locking in" interest 
rates. 

Repurchase Agreements 

   The Fund may enter into repurchase agreements, generally not exceeding seven 
days. In a repurchase agreement, an investor (e.g., the Fund) purchases a debt 
security from a seller which undertakes to repurchase the security at a 
specified resale price on an agreed future date (ordinarily a week or less). 
The resale price generally exceeds the purchase price by an amount which 
reflects an agreed-upon market interest rate for the term of the repurchase 
agreement. Repurchase agreements entered into by the Fund will be fully 
collateralized with United States Treasury and/or U.S. Government agency 
obligations with a market value of not less than 100% of the obligation, valued 
daily. Collateral will be held in a segregated, safekeeping account for the 
benefit of the Fund. In the event that a repurchase agreement is not fulfilled, 
the Fund could suffer a loss to the extent that the value of the collateral 
falls below the repurchase price or if the Fund is prevented from realizing the 
value of the collateral by reason of an order of a court with jurisdiction over 
an insolvency proceeding with respect to the other party to the repurchase 
agreement. 

Restricted and Illiquid Securities 

   The Fund may invest up to 5% of its net assets in "restricted securities" 
(i.e., securities that would be required to be registered prior to distribution 
to the public), excluding restricted securities eligible for resale to certain 
institutional investors pursuant to Rule 144A of the Securities Act of 1933 or 
foreign securities which are offered or sold outside the United States; 
provided, however, that no more than 15% of the Fund's net assets may be 
invested in restricted securities including securities eligible for resale 
under Rule 144A. In addition, the Fund may invest up to 15% of its net assets 
in illiquid investments, which includes securities that are not readily 
marketable, repurchase agreements maturing in more than seven days. The Board 
of Trustees may adopt guidelines and delegate to the Manager the daily function 
of determining and monitoring the liquidity of restricted securities. The 
Board, however, will retain sufficient oversight and be ultimately responsible 
for the determinations. 

   Since it is not possible to predict with assurance exactly how this market 
for restricted securities sold and offered under Rule 144A will develop, the 
Board will carefully monitor the Fund's investments in these securities, 
focusing on such important factors, among others, as valuation, liquidity and 
availability of information. This investment practice could have the effect of 
increasing the level of illiquidity in the Fund to the extent that qualified 
institutional buyers become for a time uninterested in purchasing these 
restricted securities. 

Limitations and Risks Associated with Transactions in Options and Futures 
Contracts 

   The Fund may employ certain active management techniques including options 
on securities indices, futures contracts and options on futures contacts. Each 
of these active management techniques involves transaction costs as well 

                                       14 
<PAGE> 
as (1) liquidity risk that contractual positions cannot be easily closed out in 
the event of market changes or generally in the absence of a liquid secondary 
market, (2) correlation risk that changes in the value of hedging positions may 
not match the securities market fluctuations intended to be hedged, and (3) 
market risk that an incorrect prediction of securities prices by the Manager 
may cause the Fund to perform less well than if such positions had not been 
entered. The ability to terminate over-the-counter options is more limited than 
with exchange traded options and may involve the risk that the counter-party to 
the option will not fulfill its obligations. The Fund will treat 
over-the-counter options (both purchased and written) as illiquid securities. 
The use of options and futures contracts are highly specialized activities 
which involve investment techniques and risks that are different from those 
associated with ordinary portfolio transactions. The loss that may be incurred 
by the Fund in entering into futures contracts and written options thereon is 
potentially unlimited. There is no limit on the percentage of the Fund's assets 
that may be invested in futures contracts and related options. The Fund may not 
invest more than 5% of its total assets in purchased options other than 
protective put options. 

   The Fund's transactions in options, futures contracts and options on futures 
contracts may be limited by the requirements for qualification of the Fund as a 
regulated investment company for tax purposes. See "Tax Status" in the 
Statement of Additional Information. 

Options on Securities Indices 

   The Fund may purchase put and call options on securities indices that are 
based on securities in which it may invest in an attempt to hedge against risks 
of market-wide price fluctuations. 

   The Fund may purchase put options in an attempt to hedge against an 
anticipated decline in securities prices that might adversely affect the value 
of the Fund's portfolio securities. If the Fund purchases a put option on a 
securities index, the amount of the payment it would receive upon exercising 
the option would depend on the extent of any decline in the level of the 
securities index below the exercise price. Such payments would tend to offset a 
decline in the value of the Fund's portfolio securities. However, if the level 
of the securities index increases and remains above the exercise price while 
the put option is outstanding, the Fund will not be able to profitably exercise 
the option and will lose the amount of the premium and any transaction costs. 
Such loss may be partially offset by an increase in the value of the Fund's 
portfolio securities. 

   The Fund may purchase call options on securities indices in an attempt to 
lock in a favorable price on securities that it intends to buy in the future. 
If the Fund purchases a call option on a securities index, the amount of the 
payment it receives upon exercising the option depends on the extent of an 
increase in the level of other securities indices above the exercise price. 
Such payments would in effect allow the Fund to benefit from securities market 
appreciation even though it may not have had sufficient cash to purchase the 
underlying securities. Such payments may also offset increases in the price of 
securities that the Fund intends to purchase. If, however, the level of the 
securities index declines and remains below the exercise price while the call 
option is outstanding, the Fund will not be able to exercise the option 
profitably and will lose the amount of the premium and transaction costs. Such 
loss may be partially offset by a reduction in the price the Fund pays to buy 
additional securities for its portfolio. 

   The Fund may sell an option it has purchased or a similar option prior to 
the expiration of the purchased option in order to close out its position in an 
option which it has purchased. The Fund may also allow options to expire 
unexercised, which would result in the loss of the premium paid. 

Futures Contracts and Options on Futures Contracts 

   To hedge against changes in securities prices or interest rates, the Fund 
may purchase and sell various kinds of futures contracts, and purchase and 
write call and put options on any of such futures contracts. The Fund may also 
enter into closing purchase and sale transactions with respect to any of such 
contracts and options. The futures contracts may be based on various securities 
and other financial instruments and indices. The Fund will engage in futures 
and related options transactions for bona fide hedging purposes as are 
permitted by regulations of the Commodity Futures Trading Commission. 

   The Fund may not purchase or sell non-hedging futures contracts or purchase 
or sell related non-hedging options, except for closing purchase or sale 
transactions. These transactions involve brokerage costs, require margin 
deposits and, in the case of contracts and options obligating the Fund to 
purchase securities, require the Fund to segregate assets to cover such 
contracts and options. Perfect correlation between the Fund's futures positions 
and portfolio positions will be difficult to achieve because no futures 
contracts based on corporate fixed-income securities are currently available. 

                                       15 
<PAGE> 
   
Pioneer Winthrop 
Real Estate Investment Fund 
    

60 State Street 
Boston, Massachusetts 02109 


OFFICERS 
JOHN F. COGAN, JR., Chairman and Chief Executive Officer 
ARTHUR J. HALLERAN, JR., President and Chief Operating Officer 
DAVID D. TRIPPLE, Executive Vice President 
   
ROBERT W. BENSON, Vice President 
    
STEPHEN G. KASNET, Vice President 
WILLIAM H. KEOUGH, Treasurer 
JOSEPH P. BARRI, Secretary 

INVESTMENT ADVISER 
PIONEER WINTHROP ADVISERS 

INVESTMENT SUBADVISERS 
PIONEERING MANAGEMENT CORPORATION 
WINTHROP ADVISORS LIMITED PARTNERSHIP 

PRINCIPAL UNDERWRITER 
PIONEER FUNDS DISTRIBUTOR, INC. 

CUSTODIAN 
BROWN BROTHERS HARRIMAN & CO. 

INDEPENDENT PUBLIC ACCOUNTANTS 
ARTHUR ANDERSEN LLP 

LEGAL COUNSEL 
HALE AND DORR 

SHAREHOLDER SERVICES AND TRANSFER AGENT 
PIONEERING SERVICES CORPORATION 
60 State Street 
Boston, Massachusetts 02109 
Telephone: 1-800-225-6292 

SERVICE INFORMATION 
If you would like information on the following, please call... 
Existing and new accounts, prospectuses, 
 applications, service forms, and 
 telephone transactions  ........................................ 1-800-225-6292
Automated fund yields, prices and 
 account information ............................................ 1-800-225-4321
Retirement plans ................................................ 1-800-622-0176
Toll-free fax ................................................... 1-800-225-4240
Telecommunications Device for the Deaf (TDD) .................... 1-800-225-1997

0495-2459 
(C)Pioneer Funds Distributor, Inc. 






<PAGE>



                  PIONEER WINTHROP REAL ESTATE INVESTMENT FUND
                                60 State Street
                          Boston, Massachusetts 02109

                      STATEMENT OF ADDITIONAL INFORMATION

   
                                 April 28, 1995

         This Statement of Additional  Information  (Part B of the  Registration
Statement)  is not a  Prospectus,  but  should be read in  conjunction  with the
Prospectus  dated April 28, 1995, as amended  and/or  supplemented  from time to
time (the  "Prospectus")  of Pioneer  Winthrop Real Estate  Investment Fund (the
"Fund").  A copy of the  Prospectus  can be  obtained  free of charge by calling
Shareholder  Services at  1-800-225-6292 or by written request to the Fund at 60
State Street, Boston, Massachusetts 02109.
    


                               TABLE OF CONTENTS
                                                                     Page

1.  Investment Policies and Restrictions.............................B-2
2.  Management of the Fund...........................................B-14
3.  Advisory and Subadvisory Services................................B-19
   
4.  Underwriting Agreement and
      Distribution Plan..............................................B-21
5.  Shareholder Servicing/Transfer Agent.............................B-23
6.  Custodian........................................................B-23
7   Principal Underwriter............................................B-24
8.  Independent Public Accountant....................................B-25
9.  Portfolio Transactions...........................................B-25
10. Tax Status.......................................................B-27
11. Description of Shares............................................B-31
12. Certain Liabilities..............................................B-32
13. Determination of Net Asset Value.................................B-33
14. Systematic Withdrawal Plan.......................................B-34
15. Letter of Intention..............................................B-35
16. Investment Results...............................................B-35
17. Financial Statements.............................................B-40
    

    APPENDIX A - Description of Bond Ratings.........................A-1
    APPENDIX B - Additional Pioneer Information......................B-*1
    APPENDIX C - Securities Indices .................................C-1

THIS  STATEMENT OF ADDITIONAL  INFORMATION IS NOT A PROSPECTUS AND IS AUTHORIZED
FOR DISTRIBUTION TO PROSPECTIVE  INVESTORS ONLY IF PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.


<PAGE>


1.       INVESTMENT POLICIES AND RESTRICTIONS

         The  Prospectus of Pioneer  Winthrop Real Estate  Investment  Fund (the
"Fund"),  identifies  the  investment  objectives  and the principal  investment
policies of the Fund. Other investment policies of the Fund are set forth below.
Capitalized terms not otherwise defined herein have the meaning given to them in
the Prospectus.

Lower-Rated Debt Securities and Associated Risks

         As  described  in the  Prospectus,  the  Fund  may  make a  variety  of
investments,  including  corporate  debt  obligations  of real  estate  industry
companies  which may be  unrated  or rated in the lowest  rating  categories  by
Standard & Poor's  Ratings Group  ("Standard & Poor's") or by Moody's  Investors
Services, Inc. ("Moody's") (i.e., ratings of BB or lower by Standard & Poor's or
Ba or lower by Moody's).  Bonds rated BB or Ba or below (or  comparable  unrated
securities)  are  commonly  referred  to as  "junk  bonds"  and  are  considered
speculative and may be questionable  as to principal and interest  payments.  In
some  cases,  such  bonds may be highly  speculative,  have poor  prospects  for
reaching investment standing and be in default. As a result,  investment in such
bonds  will  entail  greater   speculative  risks  than  those  associated  with
investment  in  investment-grade  bonds  (i.e.,  bonds  rated  BBB or  better by
Standard  & Poor's  or Baa or  better  by  Moody's).  The Fund  will  limit  its
investment in non-investment  grade corporate debt  obligations,  and comparable
unrated debt obligations,  to less than 5% of its net assets. See Appendix A for
a description of the ratings issued by investment rating services.

         The amount of junk bond  securities  outstanding  has  proliferated  in
conjunction  with the increase in merger and  acquisition  and leveraged  buyout
activity.  An  economic  downturn  could  severely  affect the ability of highly
leveraged   issuers  to  service  their  debt  obligations  or  to  repay  their
obligations upon maturity.  Factors having an adverse impact on the market value
of lower rated  securities  will have an adverse  effect on the Fund's net asset
value to the extent it invests in such  securities.  In  addition,  the Fund may
incur  additional  expenses to the extent it is required to seek recovery upon a
default in payment of principal or interest on its portfolio holdings.

         The secondary market for junk bond securities, which is concentrated in
relatively few market makers,  may not be as liquid as the secondary  market for
more highly rated  securities,  a factor which may have an adverse effect on the
Fund's  ability to dispose of a particular  security when  necessary to meet its
liquidity  needs.  Under adverse  market or economic  conditions,  the secondary
market for junk bond  securities  could  contract  further,  independent  of any


                                      B-2
<PAGE>

specific adverse changes in the condition of a particular  issuer.  As a result,
the Manager could find it more difficult to sell these securities or may be able
to sell the securities  only at prices lower than if such securities were widely
traded. Prices realized upon the sale of such lower rated or unrated securities,
under these  circumstances,  may be less than the prices used in calculating the
Fund's net asset value.

         Certain  proposed  and recently  enacted  federal  laws  including  the
required  divestiture by federally  insured savings and loan associates of their
investments  in junk bonds and  proposals  designed to limit the use, or tax and
other advantages,  of junk bond securities could adversely affect the Fund's net
asset value and investment practices. Such proposals could also adversely affect
the  secondary  market for junk bond  securities,  the  financial  condition  of
issuers of these  securities and the value of outstanding  junk bond securities.
The form of such proposed  legislation and the  probability of such  legislation
being passed are uncertain.

         Since  investors  generally  perceive  that  there  are  greater  risks
associated  with the medium to lower rated  securities  of the type in which the
Fund may invest,  the yields and prices of such securities may tend to fluctuate
more than those for higher rated  securities.  In the lower quality  segments of
the  fixed-income   securities  market,   changes  in  perceptions  of  issuers'
creditworthiness  tend to occur more frequently and in a more pronounced  manner
than do changes in higher quality segments of the fixed-income securities market
resulting in greater yield and price volatility.

         Another factor which causes  fluctuations in the prices of fixed-income
securities is the supply and demand for similarly rated securities. In addition,
the prices of fixed-income securities fluctuate in response to the general level
of interest rates. Fluctuations in the prices of portfolio securities subsequent
to their  acquisition  will not affect cash income from such securities but will
be reflected in the Fund's net asset value.

   
         Medium-to-lower rated and comparable non-rated securities tend to offer
higher yields than higher rated securities with the same maturities  because the
historical  financial  condition of the issuers of such  securities may not have
been as strong as that of other issuers.  Since medium-to-lower rated securities
generally  involve  greater  risks of loss of income and  principal  than higher
rated  securities,  investors  should  consider  carefully  the  relative  risks
associated with investment in securities which carry medium to lower ratings and
in comparable non-rated  securities.  In addition to the risk of default,  there


                                      B-3
<PAGE>

are the related costs of recovery on defaulted issues.  The Manager will attempt
to reduce these risks  through  diversification  of the Fund's  portfolio and by
analysis of each  issuer and its  ability to make timely  payments of income and
principal, as well as broad economic trends in corporate developments.
    

Foreign Real Estate Companies and Associated Risks

         The Fund may invest up to 5% of its net assets in securities of foreign
real estate  companies.  Such  investments  involve  certain risks which are not
typically  associated  with  investing  in  securities  of domestic  real estate
companies. Foreign companies are not subject to uniform accounting, auditing and
financial  standards and  requirements  comparable to those applicable to United
States companies.  There may also be less government  supervision and regulation
of foreign securities exchanges, brokers and listed companies than exists in the
United States.  Interest and dividends paid by foreign issuers may be subject to
withholding  and other  foreign taxes which will decrease the net return on such
investments as compared to interest and dividends paid to the Fund by the United
States  Government  or by  domestic  companies.  In  addition,  there may be the
possibility of  expropriation,  confiscatory  taxation,  political,  economic or
social instability,  or diplomatic developments which could affect assets of the
Fund held in foreign countries.

         In  addition,  the value of foreign  securities  may also be  adversely
affected  by  fluctuations  in  the  relative  rates  of  exchange  between  the
currencies of different nations and exchange control  regulations.  There may be
less publicly available  information about foreign companies compared to reports
and ratings published about United States companies.  Foreign securities markets
have  substantially  less trading volume than domestic markets and securities of
some foreign  companies  are less liquid and more  volatile  than  securities of
comparable  United States  companies.  Transaction  costs on foreign  securities
exchanges are generally higher than in the U.S.

         The Fund's investments in securities  denominated in foreign currencies
are also subject to currency risk, as the U.S. dollar value of these  securities
may be favorably or unfavorably affected by changes in foreign currency exchange
rates and exchange control  regulations.  Currency  exchange rates may fluctuate
significantly  over short  periods of time  causing,  among other  factors,  the
Fund's  net  asset  value to  fluctuate  as well.  Currency  exchange  rates are
generally  determined by forces of supply and demand and the perceived  relative
merits of investments in various countries, but can be affected unpredictable by
intervention  from U.S.  and foreign  governments  or central  banks,  political
events and  currency  control  measures.  The Manager  will take these and other


                                      B-4
<PAGE>

factors into consideration in managing the Fund's investments.

Securities Index Options

         The Fund may purchase  call and put options on  securities  indices for
the purpose of hedging against the risk of unfavorable price movements adversely
affecting the value of the Fund's  securities or securities  the Fund intends to
buy. Securities index options will not be used for speculative purposes.

         Currently,  options on stock indices are traded on national  securities
exchanges  and  over-the-counter,  both  in the  United  States  and in  foreign
countries.  A securities  index  fluctuates with changes in the market values of
the securities included in the index. For example,  some stock index options are
based on a broad  market  index such as the S&P 500 or the Value Line  Composite
Index.  Index  options may also be based on a narrower  market index such as the
S&P 100 or on an industry or market  segment  such as the AMEX Oil and Gas Index
or the Computer and Business Equipment Index.

         The Fund may  purchase  put  options  in  order  to  hedge  against  an
anticipated  decline in securities  prices that might adversely affect the value
of the Fund's  portfolio  securities.  If the Fund  purchases  a put option on a
securities index, the amount of the payment it would receive upon exercising the
option would depend on the extent of any decline in the level of the  securities
index below the exercise price.  Such payments would tend to offset a decline in
the  value of the  Fund's  portfolio  securities.  However,  if the level of the
securities  index  increases and remains above the exercise  price while the put
option is  outstanding,  the Fund will not be able to  profitably  exercise  the
option and will lose the amount of the premium and any transaction  costs.  Such
loss may be partially offset by an increase in the value of the Fund's portfolio
securities.

         The Fund may purchase call options on securities  indices in an attempt
to lock in a favorable price on securities that it intends to buy in the future.
If the Fund  purchases a call option on a  securities  index,  the amount of the
payment it  receives  upon  exercising  the  option  depends on the extent of an
increase in the level of other securities indices above the exercise price. Such
payments  would in  effect  allow the Fund to  benefit  from  securities  market
appreciation  even though it may not have had  sufficient  cash to purchase  the
underlying  securities.  Such payments may also offset increases in the price of
securities  that the Fund intends to  purchase.  If,  however,  the level of the
securities  index  declines and remains below the exercise  price while the call
option  is  outstanding,  the  Fund  will  not be able to  exercise  the  option


                                      B-5
<PAGE>

profitably and will lose the amount of the premium and transaction  costs.  Such
loss may be  partially  offset by a reduction  in the price the Fund pays to buy
additional securities for its portfolio.

         The Fund may sell the securities index option it has purchased or write
a similar offsetting securities index option in order to close out a position in
a  securities   index  option  which  it  has  purchased.   These  closing  sale
transactions  enable the Fund to immediately realize gains or minimize losses on
its options  positions.  However,  there is no assurance that a liquid secondary
market on an options  exchange will exist for any particular  option,  or at any
particular  time,  and for some  options  no  secondary  market  may  exist.  In
addition,  securities  index  prices may be distorted  by  interruptions  in the
trading of securities of certain companies or of issuers in certain  industries,
or by  restrictions  that may be  imposed by an  exchange  on opening or closing
transactions,  or both,  which would disrupt  trading in options on such indices
and  preclude the Fund from  closing out its options  positions.  If the Fund is
unable to effect a closing sale  transaction with respect to options that it has
purchased, it would have to exercise the options in order to realize any profit.

         The hours of trading for  options  may not conform to the hours  during
which the  underlying  securities  are  traded.  To the extent  that the options
markets  close  before the markets for the  underlying  securities,  significant
price and rate movements can take place in the  underlying  markets that can not
be  reflected  in the  options  markets.  The  purchase  of  options is a highly
specialized  activity which involves  investment  techniques and risks different
from those associated with ordinary portfolio securities transactions.

         In addition to the risks of  imperfect  correlation  between the Fund's
portfolio and the index underlying the option,  the purchase of securities index
options  involves  the risk that the premium and  transaction  costs paid by the
Fund in  purchasing  an option  will be lost.  This  could  occur as a result of
unanticipated  movements in prices of the  securities  comprising the securities
index on which the option is based.

Futures Contracts and Options on Futures Contracts

         To hedge against  changes in securities  prices,  the Fund may purchase
and sell various kinds of futures contracts,  and purchase and write (sell) call
and put options on any of such futures  contracts.  The Fund may also enter into
closing purchase and sale transactions with respect to any of such contracts and
options.  The futures contracts may be based on various securities (such as U.S.
Government  securities),  securities indices and other financial instruments and


                                      B-6
<PAGE>

indices.  The Fund will engage in futures and related options  transactions  for
bona fide hedging and,  although the Fund has no current  intention of doing so,
for non-hedging  purposes as described below. All futures contracts entered into
by the Fund are traded on U.S.  exchanges  or boards of trade that are  licensed
and regulated by the Commodity  Futures  Trading  Commission  (the "CFTC") or on
foreign exchanges.

         Futures Contracts.  A futures contract may generally be described as an
agreement between two parties to buy and sell particular  financial  instruments
for an agreed  price  during a  designated  month (or to deliver  the final cash
settlement  price,  in the case of a contract  relating to an index or otherwise
not calling for physical delivery at the end of trading in the contract).

         When interest  rates are rising or securities  prices are falling,  the
Fund can  seek to  offset  a  decline  in the  value  of its  current  portfolio
securities  through  the sale of  futures  contracts.  When  interest  rates are
falling or  securities  prices are rising,  the Fund,  through  the  purchase of
futures contracts, can attempt to secure better rates or prices than might later
be available in the market when it effects anticipated purchases.

         Positions  taken  in the  futures  markets  are  not  normally  held to
maturity but are instead liquidated  through  offsetting  transactions which may
result  in a  profit  or a loss.  A  clearing  corporation  associated  with the
exchange on which futures on  securities  are traded  guarantees  that, if still
open, the sale or purchase will be performed on the settlement date.

         Hedging  Strategies.  Hedging,  by use of futures  contracts,  seeks to
establish  with  more  certainty  the  effective  price  and rate of  return  on
portfolio  securities and securities  that the Fund owns or proposes to acquire.
The Fund may,  for  example,  take a "short"  position in the futures  market by
selling  futures  contracts  in order to hedge  against an  anticipated  rise in
interest  rates that would  adversely  affect the value of the Fund's  portfolio
securities. Such futures contracts may include contracts for the future delivery
of securities  held by the Fund or securities  with  characteristics  similar to
those of the Fund's portfolio securities.  If, in the opinion of PWA, there is a
sufficient  degree of correlation  between price trends for the Fund's portfolio
securities  and  futures   contracts  based  on  other  financial   instruments,
securities  indices or other indices,  the Fund may also enter into such futures
contracts as part of its hedging  strategy.  Although  under some  circumstances
prices of securities  in the Fund's  portfolio may be more or less volatile than
prices of such  futures  contracts,  PWA will  attempt to estimate the extent of
this volatility  difference based on historical  patterns and compensate for any


                                      B-7
<PAGE>
such  differential  by having the Fund enter into a greater or lesser  number of
futures contracts or by attempting to achieve only a partial hedge against price
changes  affecting  the  Fund's  securities  portfolio.  When  hedging  of  this
character is successful,  any depreciation in the value of portfolio  securities
will be  substantially  offset  by  appreciation  in the  value  of the  futures
position. On the other hand, any unanticipated  appreciation in the value of the
Fund's portfolio  securities  would be substantially  offset by a decline in the
value of the futures position.

         On other  occasions,  the Fund may take a "long" position by purchasing
futures  contracts.  This would be done, for example,  when the Fund anticipates
the subsequent purchase of particular securities when it has the necessary cash,
but  expects  the  prices or  currency  exchange  rates  then  available  in the
applicable  market to be less  favorable than prices or rates that are currently
available.

         Options on Futures  Contracts.  The acquisition of put and call options
on futures contracts will give the Fund the right (but not the obligation) for a
specified  price to sell or to purchase,  respectively,  the underlying  futures
contract at any time during the option period.  As the purchaser of an option on
a futures  contract,  the Fund  obtains the  benefit of the futures  position if
prices move in a favorable direction but limits its risk of loss in the event of
an unfavorable price movement to the loss of the premium and transaction costs.

         The writing of a call option on a futures contract  generates a premium
which may  partially  offset a decline  in the value of the  Fund's  assets.  By
writing a call option, the Fund becomes obligated,  in exchange for the premium,
to sell a futures  contract,  which may have a value  higher  than the  exercise
price. Conversely, the writing of a put option on a futures contract generates a
premium which may partially  offset an increase in the price of securities  that
the Fund intends to purchase.  However, the Fund becomes obligated to purchase a
futures contract which may have a value lower than the exercise price. Thus, the
loss incurred by the Fund in writing options on futures is potentially unlimited
and may  exceed  the  amount  of the  premium  received.  The  Fund  will  incur
transaction costs in connection with the writing of options on futures.

         The holder or writer of an option on a futures  contract may  terminate
its position by selling or purchasing  an offsetting  option on the same series.
There is no guarantee that such closing transactions can be effected. The Fund's
ability to establish  and close out positions on such options will be subject to
the development and maintenance of a liquid market.


                                      B-8
<PAGE>

         Other  Considerations.  The Fund may  engage  in  futures  and  related
options  transactions  only for bona fide hedging and,  although the Fund has no
current intention of doing so, for non-hedging  purposes in accordance with CFTC
regulations  which permit principals of an investment  company  registered under
the  Investment  Company Act of 1940, as amended (the "1940 Act"),  to engage in
such transactions  without registering as commodity pool operators.  The Fund is
not permitted to engage in speculative futures trading.  The Fund will determine
that the price fluctuations in the futures contracts and options on futures used
for  hedging  purposes  are  substantially  related  to  price  fluctuations  in
securities held by the Fund or which it expects to purchase.  The Fund's futures
transactions  will be entered  into for  traditional  hedging  purposes -- i.e.,
futures  contracts  will be sold to  protect  against a decline  in the price of
securities that the Fund owns, or futures contracts will be purchased to protect
the Fund against an increase in the price of  securities it intends to purchase.
As evidence of this hedging intent,  the Fund expects that on 75% or more of the
occasions on which it takes a long  futures or option  position  (involving  the
purchase of futures contracts),  the Fund will have purchased, or will be in the
process of purchasing, equivalent amounts of related securities or assets in the
cash  market at the time when the  futures  or option  position  is closed  out.
However, in particular cases, when it is economically  advantageous for the Fund
to do so, a long  futures  position  may be  terminated  or an option may expire
without the corresponding purchase of securities or other assets.

         As an  alternative  to literal  compliance  with the bona fide  hedging
definition,  a CFTC  regulation  permits  the  Fund to elect  to  comply  with a
different test, under which the sum of the amounts of initial margin deposits on
the  Fund's  existing  non-hedging  futures  contracts  and  premiums  paid  for
non-hedging  options on futures  (net of the  amount the  positions  are "in the
money") would not exceed 5% of the market value of the Fund's total  assets.  As
noted  above,  the Fund has no current  intention of entering  into  non-hedging
futures  contracts and non-hedging  options on futures.  The Fund will engage in
transactions  in futures  contracts and related  options only to the extent such
transactions  are consistent with the  requirements of the Internal Revenue Code
of 1986,  as amended  (the  "Code"),  for  maintaining  its  qualification  as a
regulated investment company for federal income tax purposes.

         Transaction costs associated with futures contracts and related options
involve  brokerage costs,  require margin deposits and, in the case of contracts
and  options  obligating  the Fund to purchase  securities,  require the Fund to
segregate assets to cover such contracts and options.


                                      B-9
<PAGE>

         While  transactions  in futures  contracts  and  options on futures may
reduce certain risks, such  transactions  themselves entail certain other risks.
Thus, while the Fund may benefit from the use of futures and options on futures,
unanticipated  changes in interest  rates or  securities  prices may result in a
poorer  overall  performance  for the Fund than if it had not  entered  into any
futures  contracts  or  options  transactions.  In  the  event  of an  imperfect
correlation  between  a  futures  position  and a  portfolio  position  which is
intended to be  protected,  the desired  protection  may not be obtained and the
Fund may be exposed to risk of loss.  The only  futures  contracts  available to
hedge the Fund's  portfolio are various futures on U.S.  Government  securities,
futures on a municipal securities index and stock index futures.

Repurchase Agreements

         The Fund may enter into repurchase agreements with "primary dealers" in
U.S. Government  securities and member banks of the Federal Reserve System which
furnish  collateral  at least  equal in value or market  price to the  amount of
their repurchase obligation.  The Fund may also enter into repurchase agreements
involving certain foreign  government  securities.  The primary risk is that, if
the  seller  defaults,  the  Fund  might  suffer a loss to the  extent  that the
proceeds from the sale of the underlying securities and other collateral held by
the Fund in connection with the related  repurchase  agreement are less than the
agreed-upon  repurchase price.  Another risk is that, in the event of bankruptcy
of the seller,  the Fund could be delayed in or prohibited from disposing of the
underlying  securities and other  collateral held by the Fund in connection with
the related  repurchase  agreement  pending  court  proceedings.  In  evaluating
whether to enter a repurchase agreement, the Manager will carefully consider the
creditworthiness  of the seller pursuant to procedures  reviewed and approved by
the Trustees.

Investment Restrictions

         The Fund has adopted certain additional  investment  restrictions which
may not be changed without the affirmative  vote of the holders of a majority of
the Fund's outstanding voting securities. The Fund may not:

         (1) Issue senior securities, except as permitted by paragraphs (2), (6)
and (7) below.  For  purposes  of this  restriction,  the  issuance of shares of
beneficial  interest  in  multiple  classes or series,  the  purchase or sale of
options,   futures   contracts  and  options  on  futures   contracts,   forward
commitments,  forward  foreign  exchange  contracts,  repurchase  agreements and
reverse  repurchase  agreements  entered  into in  accordance  with  the  Fund's
investment  policy,  and the  pledge,  mortgage or  hypothecation  of the Fund's


                                      B-10
<PAGE>

assets  within the  meaning of  paragraph  (3) below are not deemed to be senior
securities.

         (2)  Borrow  money,  except  from  banks  as a  temporary  measure  for
extraordinary  emergency  purposes  and except  pursuant  to reverse  repurchase
agreements  and then only in amounts  not to exceed 33 1/3% of the Fund's  total
assets  (including the amount borrowed) taken at market value. The Fund will not
use  leverage  to  attempt  to  increase  income.  The Fund  will  not  purchase
securities  while   outstanding   borrowings   (including   reverse   repurchase
agreements) exceed 5% of the Fund's total assets.

         (3) Pledge,  mortgage,  or  hypothecate  its  assets,  except to secure
indebtedness  permitted by paragraph  (2) above and then only if such  pledging,
mortgaging or  hypothecating  does not exceed 33 1/3% of the Fund's total assets
taken at market value.

         (4) Act as an  underwriter,  except to the extent that,  in  connection
with the  disposition of portfolio  securities,  the Fund may be deemed to be an
underwriter for purposes of the Securities Act of 1933.

         (5)  Purchase  or  sell  real  estate,  including  limited  partnership
interests,  except  that the Fund may invest in  securities  that are secured by
real estate or  interests  therein and may  purchase  and sell  mortgage-related
securities and may hold and sell real estate acquired by the Fund as a result of
the ownership of securities.

         (6) Make loans,  except that the Fund may lend portfolio  securities in
accordance  with the Fund's  investment  policies  and may purchase or invest in
repurchase  agreements,  bank  certificates  of deposit,  all or a portion of an
issue  of  publicly  distributed  bonds,  bank  loan  participation  agreements,
bankers'  acceptances,  debentures  or  other  securities,  whether  or not  the
purchase is made upon the original issuance of the securities.

         (7) Invest in commodities or commodity  contracts or in puts, calls, or
combinations  of both,  except  interest  rate  futures  contracts,  options  on
securities,  securities  indices,  currency  and  other  financial  instruments,
futures  contracts  on  securities,   securities  indices,  currency  and  other
financial  instruments  and options on such futures  contracts,  forward foreign
currency exchange contracts,  forward commitments,  securities index put or call
warrants and repurchase  agreements  entered into in accordance  with the Fund's
investment policies.

         The Fund  will  invest  25% or more of its total  assets in  securities
issued by companies in the real estate industry. Except as noted in the previous
sentence,  it is the  fundamental  policy  of the  Fund not to  concentrate  its


                                      B-11
<PAGE>

investments  in  securities  of companies  in any  particular  industry.  In the
opinion of the staff of the Securities and Exchange Commission,  investments are
concentrated in a particular  industry if such  investments (but not investments
in U.S. Government securities) aggregate 25% or more of the Fund's total assets.

         The Fund does not  intend to  invest  in or to enter  into any  forward
commitments,  forward foreign currency exchange  contracts,  reverse  repurchase
agreements,  options on securities or currency or securities  index put and call
warrants or to lend portfolio securities as described in fundamental  investment
restrictions (1), (2), (6) and (7) above, during the current fiscal year.

         In addition,  as a matter of  nonfundamental  investment  policy and in
connection  with the  offering  of its  shares in  various  states  and  foreign
countries, the Fund has agreed not to:

         (a) Participate on a joint-and-several  basis in any securities trading
account.  The  "bunching"  of  orders  for the sale or  purchase  of  marketable
portfolio  securities with other accounts under the management of the Manager to
save  commissions  or to average  prices among them is not deemed to result in a
securities trading account.

         (b) Purchase  securities on margin or make short sales unless by virtue
of its ownership of other securities,  the Fund has the right to obtain, without
payment of additional consideration, securities equivalent in kind and amount to
the securities sold and, if the right is conditional,  the sale is made upon the
same conditions, except that a Fund may obtain such short-term credits as may be
necessary  for the  clearance  of  purchases  and  sales  of  securities  and in
connection  with  transactions   involving  forward  foreign  currency  exchange
transactions.

         (c)  Purchase  a  security  if, as a  result,  (i) more than 10% of the
Fund's  assets  would  be  invested  in  securities  of  closed-end   investment
companies,  (ii)  such  purchase  would  result  in more  than  3% of the  total
outstanding  voting  securities of any one such  closed-end  investment  company
being  held by the Fund,  or (iii) more than 5% of the  Fund's  assets  would be
invested in any one such closed-end investment company;  provided,  however, the
Fund  can  exceed  such  limitations  in  connection  with a plan of  merger  or
consolidation  with or acquisition of substantially all the assets of such other
closed-end investment company. The Fund will not invest in the securities of any
open-end  investment  company,  except  in  connection  with a plan of merger or
consolidation  with or acquisition of substantially all the assets of such other
open-end investment company.


                                      B-12
<PAGE>

         (d)  Purchase  securities  of  any  issuer  which,  together  with  any
predecessor,  has a record of less than three years' continuous operations prior
to the purchase if such purchase would cause investments of the Fund in all such
issuers to exceed 5% of the value of the total assets of the Fund.

         (e) Invest for the purpose of exercising  control over or management of
any company.

         (f) Purchase warrants of any issuer, if, as a result of such purchases,
more  than 2% of the value of the  Fund's  total  assets  would be  invested  in
warrants  which are not listed on the New York Stock  Exchange  or the  American
Stock  Exchange  or more than 5% of the  value of the  total  assets of the Fund
would be  invested in warrants  generally,  whether or not so listed.  For these
purposes,  warrants  are to be  valued  at the  lesser  of cost or  market,  but
warrants acquired by the Fund in units with or attached to debt securities shall
be deemed to be without value.

         (g) Knowingly purchase or retain securities of an issuer if one or more
of the  Trustees or officers of the Fund or directors or officers of the Manager
or any  investment  management  subsidiary  of  the  Manager  individually  owns
beneficially  more than 0.5% and together own  beneficially  more than 5% of the
securities of such issuer.

         (h)  Purchase  interests  in  oil,  gas  or  other  mineral  leases  or
exploration programs;  however, this policy will not prohibit the acquisition of
securities of companies engaged in the production or transmission of oil, gas or
other minerals.  These  restrictions  may not be changed without the approval of
the regulatory agencies in such states or foreign countries.

         (i)  Purchase  any   security,   including   stripped   mortgage-backed
securities and any repurchase  agreement maturing in more than seven days, which
is  illiquid,  if more than 15% of the net  assets of the Fund,  taken at market
value, would be invested in such securities.

         (j) Invest more than 10% of its total assets in restricted  securities,
excluding restricted  securities eligible for resale pursuant to Rule 144A under
the  Securities  Act of 1933;  provided,  however,  that no more than 15% of the
Fund's  total  assets  may  be  invested  in  restricted   securities  including
restricted securities eligible for resale under Rule 144A.

         (k) Write covered calls or put options with respect to more than 25% of
the value of its total  assets  or  invest  more than 5% of its total  assets in
puts, calls, spreads, or straddles, other than protective put options.


                                      B-13
<PAGE>

         (l) Invest  more than 10% of its total  assets in shares of real estate
investment trusts that are not readily marketable.


2.       MANAGEMENT OF THE FUND

         The  Fund's  Board of  Trustees  provides  broad  supervision  over the
affairs of the Fund.  The  officers of the Fund are  responsible  for the Fund's
operations.  The Trustees and  executive  officers of the Fund are listed below,
together  with  their  principal  occupations  during  the past five  years.  An
asterisk  indicates those Trustees who are interested persons of the Fund within
the meaning of the 1940 Act.

JOHN F. COGAN, JR.*,                  President and Director of The
Chairman of the Board,                Pioneer Group, Inc. ("PGI");
President                             and Trustee Chairman and Director of
                                      Pioneering Management Corporation ("PMC");
                                      Chairman of the Board and Chief Executive
                                      Officer of Pioneer Winthrop Advisers
                                      ("PWA" or the "Manager") since 1993;
                                      Chairman and Director of Pioneer Funds
                                      Distributor, Inc. ("PFD"); Director of
                                      Pioneering Services Corporation ("PSC")
                                      and Pioneer Capital Corporation ("PCC");
                                      President and Director of Pioneer Plans
                                      Corporation ("PPC"); Chairman and Director
                                      of Teberebie Goldfields Limited; and
                                      Chairman and Partner, Hale and Dorr
                                      (counsel to the Fund).



ARTHUR J. HALLERAN, JR.*,             Chairman and Chief Executive Officer
Trustee, President and Chief          of Winthrop Financial Associates,
Operating Officer                     A Limited Partnership ("WFA") (a
49 Miles River                        real estate investment and
Hamilton, Massachusetts               management firm); Chairman and Chief
                                      Executive Officer of Winthrop Advisors
                                      Limited Partnership ("WALP"); and
                                      President, Chief Operating Officer and a
                                      Director of PWA since 1993.

RICHARD H. EGDAHL, M.D.,              Professor of Management, Boston
Trustee                               University School of Management,
53 Bay State Road                     since 1988; Professor of Public
Boston, Massachusetts                 Health, Boston University School of Public
                                      Health; Professor of Surgery, Boston
                                      University School of Medicine and Boston


                                      B-14
<PAGE>

                                      University Health Policy Institute;
                                      Director, Boston University Medical
                                      Center; Executive Vice President and Vice
                                      Chairman of the Board, University
                                      Hospital; Academic Vice President for
                                      Health Affairs, Boston University;
                                      Director, Essex Investment Management
                                      Company, Inc. (investment adviser), Health
                                      Payment Review, Inc. (health care
                                      containment software firm), Mediplex
                                      Group, Inc. (nursing care facilities
                                      firm), Peer Review Analysis, Inc. (health
                                      care utilization management firm) and
                                      Springer-Verlag New York, Inc.
                                      (publisher); Honorary Director, Franciscan
                                      Children's Hospital. Boston University
                                      Health Policy Institute.


MARGARET B.W. GRAHAM,                 Manager of Research Operations,
Trustee                               Xerox Palo Alto Research Center,
  The Keep                            since September 1991; Professor of
  Post Office Box 110                 Operations Management and Management
  Little Deer Isle,                   of Technology, Boston University
  Maine  04650                        School of Management ("BUSM"), since 1989;
                                      Associate Dean, BUSM, 1988 to 1990 and
                                      previously, Associate Professor,
                                      Department of Operations Management, BUSM.

STEPHEN G. KASNET*,                   Managing Director, WFA since 1991;
Trustee and Vice President            Director and Vice President of PWA
  One University Lane                 since 1993; Executive Vice
  Manchester, Massachusetts           President, Cabot, Cabot & Forbes, 1989 to
                                      1991; Executive Vice President, R.M.
                                      Bradley & Co., prior to 1989.

JOHN W. KENDRICK,                     Professor Emeritus, George
Trustee                               Washington University; Economic
  6363 Waterway Drive                 Consultant and Director, American
  Falls Church, Virginia              Productivity and Quality Center.

MARGUERITE A. PIRET,                  President, Newbury, Piret & Company,
Trustee                               Inc. (a merchant banking firm).
  One Boston Place,
  Suite 2635
  Boston, Massachusetts


                                      B-15
<PAGE>

DAVID D. TRIPPLE*,                    Executive Vice President and
Trustee and Executive                 Director of PGI; Director of PFD,
Vice President                        since 1989; Director of PCC and
                                      Pioneer  SBIC  Corporation;
                                      President, Chief Investment
                                      Officer  and a Director  of
                                      PMC; Director and Executive
                                      Vice President of PWA since
                                      1993.


JOHN WINTHROP,                        President, John Winthrop & Co., Inc.
Trustee                               (a private investment firm);
  One North Adgers Wharf              Director of NUI Corp., and Trustee
  Charleston, South Carolina          of Alliance Capital Reserves, Alliance
                                      Government Reserves and Alliance Tax
                                      Exempt Reserves.


STEPHEN K. WEST,                      Partner, Sullivan & Cromwell (a law
Trustee                               firm).
  125 Broad Street
  New York, New York

ROBERT W. BENSON,                     Senior Vice President of PMC
Vice President

WILLIAM H. KEOUGH,                    Senior Vice President, Chief
Treasurer                             Financial Officer and Treasurer of PGI and
                                      Treasurer of PFD, PMC, PSC, PCC, PPC and
                                      Pioneer SBIC Corporation; Treasurer of PWA
                                      since 1993.

ERIC W. RECKARD,                      Manager of Fund Accounting and
Assistant                             Treasurer Compliance for PMC since May,
                                      1994; Manager of Auditing and Business
                                      Analysis for PGI prior to May, 1994.

   
ROBERT P. NAULT,                      General Counsel of PGI since 1995;
Assistant Secretary                   formerly of Hale and Dorr (counsel to the
                                      Fund) where he most recently served as a
                                      junior partner.
    

JOSEPH P. BARRI,                      Secretary of PGI, PMC, PCC and PWA;
Secretary                             Clerk of PFD and PSC and Partner, Hale and
                                      Dorr (counsel to the Fund).

FRANCIS X. JACOBY, III,               Managing Director, WFA.
Assistant Secretary
  14 Parkman Street
  Brookline, Massachusetts


                                      B-16
<PAGE>

   
         Each of the above (except Messrs. Halleran,  Jacoby and Kasnet) is also
an officer and/or  Trustee of each Pioneer mutual fund listed below.  The Fund's
Declaration of Trust provides that the holders of two-thirds of its  outstanding
shares may vote to remove a Trustee of the Fund at any meeting of  shareholders.
The business address of all officers is 60 State Street,  Boston,  Massachusetts
02109.

         All  of  the  outstanding   capital  stock  of  Pioneering   Management
Corporation and Pioneering  Services  Corporation is owned by The Pioneer Group,
Inc., a publicly-owned Delaware corporation. All of the capital stock of Pioneer
Funds Distributor, Inc. is indirectly owned by The Pioneer Group, Inc. The table
below lists all the Pioneer mutual funds,  including the Fund, currently offered
to the public and the  investment  adviser and  principal  underwriter  for each
fund.
    
<TABLE>
<CAPTION>

                                                                            Investment              Principal
Fund Name                                                                     Adviser              Underwriter

<S>                                                                             <C>                    <C>    
Pioneer Fund                                                                    PMC                    PFD
Pioneer II                                                                      PMC                    PFD
Pioneer Three                                                                   PMC                    PFD
Pioneer Growth Shares                                                           PMC                    PFD
Pioneer Capital Growth Fund                                                     PMC                    PFD
Pioneer Equity-Income Fund                                                      PMC                    PFD
Pioneer Gold Shares                                                             PMC                    PFD
Pioneer Winthrop Real Estate
  Investment Fund                                                             Note 1                   PFD
Pioneer Europe Fund                                                             PMC                    PFD
Pioneer India Fund                                                              PMC                    PFD
Pioneer International Growth Fund                                               PMC                    PFD
Pioneer Emerging Markets Fund                                                   PMC                    PFD
Pioneer Bond Fund                                                               PMC                    PFD
Pioneer America Income Trust                                                    PMC                    PFD
Pioneer Short-Term Income Trust                                                 PMC                    PFD
Pioneer Income Fund                                                             PMC                    PFD
Pioneer Tax-Free Income Fund                                                    PMC                    PFD
Pioneer Intermediate Tax-Free Fund                                              PMC                    PFD
Pioneer California Double Tax-Free Fund                                         PMC                    PFD
Pioneer New York Triple Tax-Free Fund                                           PMC                    PFD
Pioneer Massachusetts Double Tax-Free Fund                                      PMC                    PFD
Pioneer Cash Reserve Fund                                                       PMC                    PFD
Pioneer U.S. Government Money Fund                                              PMC                    PFD
Pioneer Tax-Free Money Fund                                                     PMC                    PFD
Pioneer Interest Shares, Inc.                                                   PMC                  Note 2
<FN>
                                      B-17
<PAGE>

Note 1 Pioneer Winthrop Advisers is the investment adviser for this fund. Note 2
This fund is a closed-end fund.
</FN>
</TABLE>

   
         PMC also  manages  the  investments  of certain  institutional  private
accounts.  As of March 31, 1995,  to the  knowledge  of the Fund,  no officer or
Trustee of the Fund owned 5% or more of the  issued  and  outstanding  shares of
PGI, except Mr. Cogan who then owned approximately 15% of such shares.
    

Remuneration of Trustees

   
         The following  table provides  information  regarding the  compensation
paid by the Fund and the other Pioneer Funds to the Trustees for their  services
for the Fund's most recently completed fiscal year. The Fund pays no salaries or
compensation  to any of its officers.  The Fund pays an annual  trustees' fee of
$500 to each Trustee who is not affiliated  with PWA,  WALP,  PMC, PFD or PSC as
well as an  annual  fee of $200 to each of the  Trustees  who is a member of the
Fund's Audit Committee,  except for the Chairman of such Committee, who receives
an annual fee of $250.  The Fund also pays an annual  trustees' fee of $500 plus
expenses to each Trustee  affiliated  with PWA, WALP,  PMC, PSC or PFD. Any such
fees and expenses paid to affiliates or interested  persons of PWA,  WALP.  PMC,
PFD or PSC are  reimbursed to the Fund under its  Management  Contract.  As of a
date no earlier  than 30 days prior to the date of this SAI,  the  Trustees  and
officers  of the Fund  owned  in the  aggregate  1.02%  (23,879  shares)  of the
outstanding  securities of the Fund and there were no shareholders of record who
owned 5% or more of the Fund's outstanding  voting  securities,  except Merrill,
Lynch, Pierce, Fenner & Smith Inc., Mutual Fund Operations, 4800 Deer Lake Drive
East,  Third Floor,  Jacksonville,  Florida  32246-6484  owned 257,191  (11.03%)
shares of the Fund.
    



                                      B-18
<PAGE>
<TABLE>
<CAPTION>
   


                                                                                     Total Compensa-
                                                                                      tion from the
                                                            Pension or               Fund and other
                                     Aggregate              Retirement                funds in the
                                   Compensation              Benefits                Pioneer Family
Trustee                            From the Fund*            Accrued                of Mutual Funds**

<S>                                   <C>                       <C>                    <C>    
John F. Cogan, Jr.***                 $250                      0                      $11,750
David D. Tripple***                    250                      0                       11,750
Arthur J. Halleran, Jr.***             250                      0                          250
Stephen G. Kasnet***                   250                      0                          250
Richard H. Egdahl, M.D.                250                      0                       55,650
Margaret B.W. Graham                   250                      0                       55,650
John W. Kendrick                       250                      0                       55,650
Marguerite A. Piret                    375                      0                       66,650
Stephen K. West                        350                      0                       63,650
John Winthrop                          350                      0                       63,650
                                       ---                     ---                      -------

  Totals                            $2,825                     $0                     $384,900
                                     =====                      ==                     ========

<FN>

- --------
*     As of the Fund's most recent completed fiscal year.
**    For the calendar year ended December 31, 1994.
***   WALP fully  reimbursed the Fund and PMC fully  reimbursed the other funds
      in the Pioneer  Family of Mutual Funds for  compensation  paid to Messrs.
      Cogan and  Tripple.  In  addition,  WALP  fully  reimbursed  the Fund for
      compensation paid to Messrs. Halleran and Kasnet.
</FN>
</TABLE>
    


3. ADVISORY AND SUBADVISORY SERVICES

The Investment Adviser
   

     As  stated  in the  Prospectus,  Pioneer  Winthrop  Advisers  ("PWA" or the
"Manager"),  60  State  Street,  Boston,  Massachusetts,  serves  as the  Fund's
investment adviser. The management contract expires on April 30, 1996, but it is
renewable  annually  after such date by the vote of a  majority  of the Board of
Trustees of the Fund  (including a majority of the Board of Trustees who are not
parties to the  contract  or  interested  persons of any such  parties)  cast in
person at a meeting called for the


                                      B-19
<PAGE>

purpose of voting on such renewal.  This contract terminates if assigned and may
be terminated  without penalty by either party by vote of its Board of Directors
or Trustees or a majority of its outstanding voting securities and the giving of
sixty days' written notice.     

     As  compensation  for its investment  advisory and management  services and
expenses incurred,  PWA is entitled to a management fee at the rate of 1.00% per
annum of the Fund's average daily net assets. The fee is normally computed daily
and paid  monthly.  PWA has  voluntarily  agreed  not to impose a portion of its
management  fee to the extent  required  to limit the Fund's  total  expenses to
1.75% of the Fund's  average daily net assets.  This  agreement is voluntary and
temporary and may be revised or terminated at any time.

   

     For the period  October 25, 1993  through  June 30, 1994 and for the period
July 1, 1994  through  December  31,  1994,  the Fund would have paid or accrued
total   management  fees  to  PWA  of   approximately   $103,371  and  $141,284,
respectively, but $45,812 and $73,158, respectively, of such fee was not imposed
pursuant to PWA's voluntary agreement described above.     

     PWA has agreed  that if in any fiscal  year the  aggregate  expenses of the
Fund exceed the expense limitation  established by any state having jurisdiction
over the Fund,  PWA will  reduce its  management  fee to the extent  required by
state law. The most restrictive state expense limit currently  applicable to the
Fund provides that the Fund's expenses in any fiscal year may not exceed 2.5% of
the first $30 million of average daily net assets,  2.0% of the next $70 million
of such assets and 1.5% of such assets in excess of $100  million.  In the past,
the relevant state has granted relief for real estate  investment funds, such as
the Fund, because of their higher operations costs, and the Fund expects to seek
such relief to the extent it becomes necessary to do so.

   
     In an attempt to avoid any potential  conflict with portfolio  transactions
for the Fund,  the  Adviser,  Subadvisers  and the Fund have  adopted  extensive
restrictions on personal  securities trading by personnel of the Adviser and its
affiliates. These restrictions include: pre-clearance of all personal securities
transactions  and a  prohibition  of  purchasing  initial  public  offerings  of
securities.  These  restrictions  are a continuation of the basic principle that
the interests of the Fund and its shareholders  come before those of the Adviser
and Subadvisers and their respective employees.
    

The Investment Subadvisers

     As stated in the Prospectus,  Pioneering Management Corporation ("PMC"), 60
State Street,  Boston  Massachusetts,  and Winthrop Advisors Limited Partnership


                                      B-20
<PAGE>

   
("WALP"), One International Place, Boston, Massachusetts, have been appointed by
the  Manager  as  investment  subadvisers  to the Fund  pursuant  to  Investment
Subadvisory  Contracts by and among the Fund,  PWA and PMC or WALP,  as the case
may be. The Investment  Subadvisory  Contract with PMC expires on April 30, 1996
and the Investment Subadvisory Contract with WALP expires on April 30, 1997, but
each is  renewable  annually  after such date by the vote of a  majority  of the
Board of Trustees of the Fund (including a majority of the Board of Trustees who
are not parties to the contract or interested  persons of any such parties) cast
in person at a meeting  called for the  purpose of voting on such  renewal.  The
Investment  Subadvisory  Contracts  terminate if assigned and may be  terminated
without  penalty by any party by vote of its Board of Directors or Trustees,  as
the case may be, or a majority  of its  outstanding  voting  securities  and the
giving of sixty days' written notice.

     Pursuant to the  Investment  Subadvisory  Contracts,  PMC and WALP are each
entitled to a fee payable by PWA equal to 0.30% per annum of the Fund's  average
daily net assets.  The Fund has no  responsibility to pay such subadvisory fees.
For the period October 25, 1993 through June 30, 1994, PWA paid or accrued total
subadvisory  fees  to  PMC  and  WALP  of  approximately  $12,500  and  $12,500,
respectively. For the period July 1, 1994 through December 31, 1994, PWA paid or
accrued  total  subadvisory  fees to PMC and WALP of  approximately  $26,010 and
$26,010,  respectively.  See  "Management  of the Fund" in the  Prospectus for a
discussion of the services provided by PWA, PMC and WALP.
    

4. UNDERWRITING AGREEMENT AND DISTRIBUTION PLAN

   
     The Fund and Pioneer Funds Distributor, Inc. are parties to an Underwriting
Agreement.  See "Principal  Underwriter" below. The Trustees who were not at the
time they  voted  interested  persons  of the Fund,  as defined in the 1940 Act,
approved the Underwriting  Agreement.  The Underwriting  Agreement will continue
from  year  to year if  annually  approved  by the  Trustees.  The  Underwriting
Agreement provides that PFD will bear certain distribution expenses not borne by
the Fund.
    

     PFD  bears  all  expenses  it  incurs  in  providing   services  under  the
Underwriting Agreement.  Such expenses include compensation to its employees and
representatives  and to securities  dealers for  distribution  related  services
performed for the Fund.  PFD also pays certain  expenses in connection  with the
distribution of the Fund's shares, including the cost of preparing, printing and
distributing  advertising or promotional materials, and the cost of printing and


                                      B-21
<PAGE>

distributing prospectuses and supplements to prospective shareholders.  The Fund
bears the cost of registering its shares under federal and state securities law.

     The Fund and PFD have  agreed  to  indemnify  each  other  against  certain
liabilities, including liabilities under the Securities Act of 1933, as amended.
Under the  Underwriting  Agreement,  PFD will use its best  efforts in rendering
services to the Fund.

     The  Fund  has  adopted  a plan of  distribution  pursuant  to  Rule  12b-1
promulgated by the Commission  under the 1940 Act (the "Plan") pursuant to which
the Fund may  reimburse  PFD for its  expenditures  in  financing  any  activity
primarily  intended to result in the sale of Fund shares.  Certain categories of
such  expenditures have been approved by the Board of Trustees and are set forth
in the Prospectus.  See "Distribution  Plan" in the Prospectus.  The expenses of
the Fund  pursuant  to the Plan are  accrued on a fiscal  year basis and may not
exceed the annual rate of 0.25% of the Fund's  average  annual net  assets.  The
Plan does not provide for the carryover of  reimbursable  expenses beyond twelve
months  from the date they are  incurred.  In  accordance  with the terms of the
Plan,  PFD provides to the Fund for review by the  Trustees a quarterly  written
report of the  amounts  expended  under the Plan and the  purpose for which such
expenditures were made.

     No interested person of the Fund, nor any Trustee of the Fund who is not an
interested person of the Fund, has any direct or indirect  financial interest in
the  operation  of the Plan  except to the  extent  that PFD and  certain of its
employees  may be deemed to have such an  interest  as a result of  receiving  a
portion  of the  amounts  expended  under the Plan by the Fund and except to the
extent certain officers may have an interest in PFD's ultimate parent, PGI.

     The Plan was adopted by a majority vote of the Board of Trustees, including
all of the Trustees who are not, and were not at the time they voted, interested
persons  of the Fund,  as  defined in the 1940 Act (none of whom had or have any
direct or indirect  financial  interest in the  operation of the Plan),  cast in
person at a meeting called for the purpose of voting on the Plan and approved by
the shareholders of the Fund. In approving the Plan, the Trustees identified and
considered a number of potential benefits which the Plan may provide.  The Board
of Trustees  believes that there is a reasonable  likelihood  that the Plan will
benefit the Fund and its current and future  shareholders.  Under its terms, the
Plan remains in effect from year to year provided such  continuance  is approved
annually by vote of the Trustees in the manner described above. The Plan may not
be amended to increase  materially the annual  percentage  limitation of average
net  assets  which  may be spent  for the  services  described  therein  without
approval of the  shareholders  of the Fund, and material  amendments to the Plan


                                      B-22
<PAGE>

must also be approved by the Trustees in the manner  described  above.  The Plan
may be terminated at any time,  without  payment of any penalty,  by vote of the
majority of the Trustees who are not interested  persons of the Fund and have no
direct or indirect  financial  interest in the  operations  of the Plan, or by a
vote of a majority of the outstanding  voting securities of the Fund (as defined
in the 1940  Act).  The Plan will  automatically  terminate  in the event of its
assignment  (as defined in the 1940 Act). In the Trustees'  quarterly  review of
the Plan,  they will  consider its  continued  appropriateness  and the level of
compensation it provides.

   
     During the period  October 25, 1993 through June 30, 1994, the Fund did not
incur any  distribution  fees pursuant to the Plan. The Fund commenced  accruing
distribution  and  service  fees under the Plan on July 1, 1994.  For the period
July 1, 1994 through  December 31, 1994,  the Fund incurred  total  distribution
fees of  $35,321.  Such fees will be paid to PFD in  reimbursement  of  expenses
related to servicing of  shareholder  accounts and to  compensating  dealers and
sales personnel.
    


5. SHAREHOLDER SERVICING/TRANSFER AGENT

     The Fund has contracted with Pioneering  Services  Corporation  ("PSC"), 60
State Street, Boston,  Massachusetts,  to act as shareholder servicing agent and
transfer  agent for the Fund.  This  contract  terminates if assigned and may be
terminated  without penalty by either party by vote of its Board of Directors or
Trustees or a majority of its  outstanding  voting  securities and the giving of
ninety days' written notice.

     Under the terms of its contract with the Fund, PSC will service shareholder
accounts,  and its duties will include:  (i) processing  sales,  redemptions and
exchanges of shares of the Fund; (ii)  distributing  dividends and capital gains
associated with Fund portfolio  accounts;  and (iii) maintaining account records
and responding to routine shareholder inquiries.

   
     PSC receives an annual fee of $22.00 per shareholder  account from the Fund
as compensation for the services  described above.  This fee is set at an amount
determined  by vote of a majority of the  Trustees  (including a majority of the
Trustees who are not parties to the contract with PSC or  interested  persons of
any such parties) to be comparable to fees for such services being paid by other
investment companies.
    


                                      B-23
<PAGE>


6. CUSTODIAN

     Brown  Brothers  Harriman & Co. (the  "Custodian")  is the custodian of the
Fund's  assets.  The  Custodian's   responsibilities   include  safekeeping  and
controlling  the Fund's cash and  securities  in the United States as well as in
foreign  countries,  handling  the  receipt  and  delivery  of  securities,  and
collecting  interest and  dividends  on the Fund's  investments.  The  Custodian
fulfills its  function in foreign  countries  through a network of  subcustodian
banks located in the foreign countries (the "Subcustodians").

     The Custodian  does not determine  the  investment  policies of the Fund or
decide which  securities it will buy or sell.  The Fund may invest in securities
issued  by the  Custodian,  deposit  cash in the  Custodian  and  deal  with the
Custodian as a principal in securities transactions. Portfolio securities may be
deposited into the Federal Reserve-Treasury  Department Book Entry System or the
Depository  Trust  Company  in  the  United  States  or  in  recognized  central
depositories in foreign countries.


7. PRINCIPAL UNDERWRITER

     Pioneer Funds Distributor,  Inc., 60 State Street,  Boston,  Massachusetts,
serves  as the  principal  underwriter  for the  Fund  in  connection  with  the
continuous offering of its shares. The Fund will not generally issue Fund shares
for consideration  other than cash. At the Fund's sole discretion,  however,  it
may issue Fund shares for  consideration  other than cash in connection  with an
acquisition of portfolio  securities pursuant to a bona fide purchase of assets,
merger or reorganization  provided (i) securities meet the investment objectives
and  policies  of the Fund;  (ii) the  securities  are  acquired by the Fund for
investment  and not for resale;  (iii) the  securities  are not restricted as to
transfer  either by law or liquidity of market;  and (iv) the securities  have a
value which is readily  ascertainable  (and not  established  only by evaluation
procedures)  as evidenced by a listing on the American Stock Exchange or the New
York Stock Exchange,  or by quotation under the NASD Automated Quotation System.
An  exchange  of  securities  for  Fund  shares  will  generally  be  a  taxable
transaction to the shareholder.

     The redemption  price of shares of beneficial  interest of the Fund may, at
PWA's  discretion,  be paid  in cash or  portfolio  securities.  The  Fund  has,
however,  elected to be governed  by Rule 18f-1  under the 1940 Act  pursuant to
which the Fund is obligated to redeem  shares solely in cash up to the lesser of
$250,000  or 1% of the Fund's net asset value  during any 90-day  period for any
one shareholder. Should the amount of redemptions by any shareholder exceed such
limitation,  the Fund will have the  option of  redeeming  the excess in cash or


                                      B-24
<PAGE>

portfolio  securities.  In the latter case,  the  securities  are taken at their
value  employed in determining  the Fund's net asset value. A shareholder  whose
shares  are  redeemed  in-kind  may  incur  brokerage  charges  in  selling  the
securities  received  in-kind.  The selection of such securities will be made in
such manner as the Board deems fair and reasonable.

   
     During  the period  from  October  25,  1993  through  June 30,  1994,  net
underwriting  commissions  earned by PFD in connection with its offering of Fund
shares were  approximately  $66,304.  For the period  from July 1, 1994  through
December 31, 1994, net underwriting commissions earned by PFD in connection with
its  offering of Fund shares were  $27,497.  For the same  periods,  commissions
reallowed  to  dealers  by  PFD  were  approximately  $1,124,000  and  $186,213,
respectively.
    


8. INDEPENDENT PUBLIC ACCOUNTANTS

     Arthur Andersen LLP is the Fund's independent public accountant,  providing
audit services,  tax return review, and assistance and consultation with respect
to the preparation of filings with the Commission.


9. PORTFOLIO TRANSACTIONS

     All orders for the purchase or sale of portfolio  securities  are placed on
behalf of the Fund by PMC  pursuant to  authority  contained  in the  Investment
Subadvisory  Contract with PMC. In selecting  brokers or dealers,  PMC considers
other factors  relating to best  execution,  including,  but not limited to, the
size and type of the transaction; the nature and character of the markets of the
security  to  be  purchased  or  sold;  the  execution  efficiency,   settlement
capability,  and  financial  condition  of the dealer;  the  dealer's  execution
services  rendered on a continuing  basis; and the  reasonableness of any dealer
spreads.  Most  transactions  in  foreign  equity  securities  are  executed  by
broker-dealers  in foreign  countries in which  commission  rates are fixed and,
therefore,  are not  negotiable (as such rates are in the United States) and are
generally higher than in the United States.

     PMC may select dealers which provide  brokerage and/or research services to
the Fund and/or other  investment  companies or accounts  managed by PMC, PWA or
WALP. Such services may include advice  concerning the value of securities;  the
advisability of investing in, purchasing or selling securities; the availability
of securities or the  purchasers or sellers of securities;  furnishing  analyses


                                      B-25
<PAGE>

and reports concerning  issuers,  industries,  securities,  economic factors and
trends, portfolio strategy and performance of accounts; and effecting securities
transactions and performing  functions incidental thereto (such as clearance and
settlement).  PMC  maintains a listing of dealers who provide such services on a
regular  basis.  However,  because many  transactions  on behalf of the Fund and
other  investment  companies or accounts  managed by PWA, PMC or WALP are placed
with dealers (including dealers on the listing) without regard to the furnishing
of  such  services,  it is not  possible  to  estimate  the  proportion  of such
transactions  directed  to  such  dealers  solely  because  such  services  were
provided.  Management  believes that no exact dollar value can be calculated for
such services.

     The  research  received  from  dealers may be useful to PMC, PWA or WALP in
rendering  investment  management  services  to the  Fund as  well  as to  other
investment  companies or accounts managed by PMC, PWA or WALP,  although not all
of such  research  may be  useful  to the  Fund.  Conversely,  such  information
provided by brokers or dealers who have executed transaction orders on behalf of
such other  accounts  may be useful to PMC,  PWA or WALP in  carrying  out their
obligations  to the Fund.  The receipt of such research has not reduced PMC, PWA
or WALP's normal independent research  activities;  however, it enables PMC, PWA
and WALP to avoid the additional  expenses which might  otherwise be incurred if
they were to attempt to develop comparable information through their own staffs.

     In circumstances where two or more  broker-dealers  offer comparable prices
and executions, preference may be given to a broker-dealer which has sold shares
of the Fund as well as shares of other investment  companies or accounts managed
by PMC,  PWA or WALP.  This  policy does not imply a  commitment  to execute all
portfolio  transactions through all broker-dealers that sell shares of the Fund.
In  addition,  if PMC  determines  in good faith that the amount of  commissions
charged by a broker is  reasonable in relation to the value of the brokerage and
research services provided by such broker,  the Fund may pay commissions to such
broker in an amount greater than the amount another firm may charge.

     The Trustees  periodically review PMC's performance of its responsibilities
in  connection  with the  placement of portfolio  transactions  on behalf of the
Fund.

     Neither PWA nor WALP currently provides investment advisory services to any
other fund or account.  In addition to serving as  investment  subadviser to the
Fund, PMC acts as investment  adviser to other mutual funds in the Pioneer group
and private accounts with investment objectives similar to those of the Fund. As
such,  securities may meet  investment  objectives of the Fund, such other funds


                                      B-26
<PAGE>

and such private accounts.  In such cases, the decision to recommend to purchase
for one fund or account rather than another is based on a number of factors. The
determining  factors in most cases are the  amount of  securities  of the issuer
then  outstanding,  the value of those securities and the market for them. Other
factors considered in the investment  recommendations  include other investments
which each fund or account presently has in a particular industry or country and
the availability of investment funds in each fund or account.

     It is possible that, at times,  identical  securities  will be held by more
than one fund and/or  account.  However,  the position of any fund or account in
the same  issue may vary and the  length of time  that any fund or  account  may
choose to hold its investment in the same issue may likewise vary. To the extent
that the Fund, another fund in the Pioneer group or a private account managed by
PMC seeks to acquire the same security at about the same time,  the Fund may not
be able to acquire as large a position in such  security as it desires or it may
have to pay a higher price for the security. Similarly, the Fund may not be able
to obtain as large an  execution  of an order to sell or as high a price for any
particular  portfolio  security  if PMC  decides  to sell on behalf  of  another
account the same portfolio  security at the same time. On the other hand, if the
same  securities  are bought or sold at the same time by more than one  account,
the  resulting   participation  in  volume  transactions  could  produce  better
executions  for the Fund or other  account.  In the  event  that  more  than one
account  purchases or sells the same security on a given date, the purchases and
sales  will  normally  be made as nearly as  practicable  on a pro rata basis in
proportion to the amounts desired to be purchased or sold by each.

   
     During the periods  from  October 25, 1993  through  June 30, 1994 and from
July 1, 1994  through  December  31,  1994,  the Fund paid or accrued  aggregate
brokerage and underwriting  commissions of approximately  $170,534 and $213,710,
respectively.
    


10. TAX STATUS

     It is the Fund's  policy to meet the  requirements  of  Subchapter M of the
Code for qualification as a regulated  investment company. If the Fund meets all
such  requirements  and  distributes to its  shareholders  at least annually all
investment  company  taxable  income  and net  capital  gain,  if any,  which it
receives,  the Fund will be relieved of the necessity of paying  federal  income
tax.


                                      B-27
<PAGE>

     In order to qualify as a regulated  investment  company under Subchapter M,
the Fund must,  among  other  things,  derive at least 90% of its  annual  gross
income from  dividends,  interest,  gains from the sale or other  disposition of
stock,  securities or foreign currencies,  or other income (including gains from
options,  futures and forward contracts) derived with respect to its business of
investing in such stock, securities or currencies (the "90% income test"), limit
its gains from the sale of certain  investments  held for less than three months
to less than 30% of its annual gross income (the "30% test") and satisfy certain
annual distribution and quarterly diversification requirements.

     Dividends from net investment  income,  net short-term  capital gains,  and
certain net foreign  exchange  gains are  taxable as  ordinary  income,  whether
received in cash or in additional  shares.  Dividends from net long-term capital
gains, if any, whether received in cash or additional shares, are taxable to the
Fund's  shareholders as long-term  capital gains for Federal income tax purposes
without  regard to the  length of time  shares of the Fund have been  held.  The
federal income tax status of all distributions  will be reported to shareholders
annually.

     Any dividend declared by the Fund in October,  November or December as of a
record  date in such a month  and paid  during  the  following  January  will be
treated for federal income tax purposes as received by  shareholders on December
31 of the calendar year in which it is declared.

     For  purposes  of  the  70%   dividends-received   deduction  available  to
corporations,  dividends  received  by the  Fund,  if any,  from  U.S.  domestic
corporations  in respect of any share of stock with a tax  holding  period of at
least 46 days (91 days in the case of certain preferred stock) in an unleveraged
position and distributed and designated by the Fund may be treated as qualifying
dividends.  Any corporate  shareholder  should consult its tax adviser regarding
the  possibility  that its tax basis in its shares may be  reduced,  for federal
income  tax  purposes,  by reason of  "extraordinary  dividends"  received  with
respect to the shares.  Corporate  shareholders  must meet the  minimum  holding
period  requirement  stated  above  (46 or 91 days),  taking  into  account  any
holding-period  reductions  from  certain  hedging  or other  transactions  that
diminish risk of loss, with respect to their Fund shares in order to qualify for
the  deduction  and,  if they  borrow to acquire  Fund  shares,  may be denied a
portion of the  dividends-received  deduction.  The entire qualifying  dividend,
including the otherwise  deductible amount,  will be included in determining the
excess  (if  any)  of  a  corporation's   adjusted  current  earnings  over  its
alternative   minimum  taxable  income,   which  may  increase  a  corporation's
alternative minimum tax liability.


                                      B-28
<PAGE>

     The Fund may be subject to  withholding  and other taxes imposed by foreign
countries  with  respect to  investments  in those  countries.  Tax  conventions
between certain  countries and the U.S. may reduce or eliminate such taxes.  The
Fund will not satisfy the requirements for passing through to shareholders their
pro rata  shares of  foreign  taxes paid by the Fund,  with the result  that its
shareholders  will not include such taxes in their gross incomes and will not be
entitled to a tax deduction or credit for such taxes on their own tax returns.

     Foreign  exchange gains and losses  realized by the Fund in connection with
certain  transactions  involving foreign currency-  denominated debt securities,
foreign currencies, or payables or receivables denominated in a foreign currency
are subject to Section 988 of the Code,  which  generally  causes such gains and
losses to be treated as  ordinary  income and losses and may affect the  amount,
timing and character of distributions to shareholders.

     If the Fund  acquires  the  stock of  certain  non-U.S.  corporations  that
receive at least 75% of their annual gross income from passive  sources (such as
sources that produce interest, dividend, rental, royalty or capital gain income)
or hold at least 50% of their assets in such passive sources  ("passive  foreign
investment  companies"),  the Fund could be  subject  to Federal  income tax and
additional  interest  charges  on  "excess  distributions"  received  from  such
companies or gain from the sale of stock in such  companies,  even if all income
or gain actually received by the Fund is timely distributed to its shareholders.
The Fund  would not be able to pass  through to its  shareholders  any credit or
deduction for such a tax. In certain  cases,  an election may be available  that
would  ameliorate  these  adverse  tax  consequences.  The  Fund may  limit  its
investments  in  passive  foreign   investment   companies  and  will  undertake
appropriate  actions,  including  consideration of any available  elections,  to
limit its tax liability,  if any, or take other defensive action with respect to
such investments.

     Investment in debt  obligations  that are at risk of or in default presents
special tax issues for the Fund.  Tax rules are not entirely  clear about issues
such as when the Fund may cease to accrue  interest,  original issue discount or
market discount,  when and to what extent  deductions may be taken for bad debts
or worthless securities,  how payments received on obligations in default should
be  allocated  between  principal  and  income,  and whether  exchanges  of debt
obligations  in a workout  context are  taxable.  These and other issues will be
addressed by the Fund, in the event it invests in such  securities,  in order to
ensure  that it  distributes  sufficient  income  to  preserve  its  status as a
regulated  investment company and to avoid becoming subject to federal income or
excise tax.


                                      B-29
<PAGE>

     Since, at the time of an investor's  purchase of Fund shares,  a portion of
the per share net asset value by which the purchase  price is determined  may be
represented by realized or unrealized  appreciation  in the Fund's  portfolio or
undistributed taxable income of the Fund, subsequent  distributions (or portions
thereof)  on such shares may be taxable to such  investor  even if the net asset
value of his shares is, as a result of the distributions, reduced below his cost
for such shares and the distributions (or portions thereof) in reality represent
a return of a portion of his investment.

     Any loss realized upon the  redemption of shares with a tax holding  period
of six months or less will be treated as a long-term  capital loss to the extent
of any amounts treated as distributions  of long-term  capital gain with respect
to such shares.

     In addition,  if shares  redeemed or exchanged have been held for less than
91 days, (a) in the case of a  reinvestment  at net asset value the sales charge
paid on such  shares is not  included  in their  tax  basis  under the Code if a
reinvestment  occurs, and (2) in a case of an exchange,  all or a portion of the
sales  charge paid on such  shares is not  included in their tax basis under the
Code,  to the extent a sales  charge  that would  otherwise  apply to the shares
received is reduced  pursuant to the exchange  privilege.  In either  case,  the
portion of the sales charge not included in the tax basis of the shares redeemed
or  surrendered  in an  exchange  is  included  in the tax  basis of the  shares
acquired in the reinvestment or exchange.  Losses on certain  redemptions may be
disallowed under "wash sale" rules in the event of other investments in the Fund
within 30 days before or after a redemption or other sale of shares.

     For Federal  income tax purposes,  the Fund is permitted to carry forward a
net realized  capital loss in any year to offset realized capital gains, if any,
during the eight years following the year of the loss. To the extent  subsequent
net realized  capital gains are offset by such losses,  they would not result in
Federal  income tax liability to the Fund and are not expected to be distributed
as such to shareholders.

     Different   tax   treatment,   including   penalties   on  certain   excess
contributions  and  deferrals,   certain   pre-retirement  and   post-retirement
distributions,  and  certain  prohibited  transactions,  is accorded to accounts
maintained as qualified retirement plans.  Shareholders should consult their tax
advisers for more information.

     Provided that the Fund qualifies as a regulated  investment company ("RIC")
under  the  Code,  it will  not be  required  to pay any  Massachusetts  income,


                                      B-30
<PAGE>

corporate excise or franchise  taxes.  Provided that the Fund qualifies as a RIC
and meets certain income source requirements under Delaware Law, the Fund should
also not be required to pay Delaware corporation income tax.

     Options written or purchased and futures contracts entered into by the Fund
on certain  securities  and  securities  indices may cause the Fund to recognize
gains or  losses  from  marking-to-market  at the end of its  taxable  year even
though such options may not have  lapsed,  been closed out, or exercised or such
futures contracts may not have been closed out or disposed of and may affect the
characterization  as long-term or  short-term  of some capital  gains and losses
realized  by the Fund.  Losses on certain  options or futures  contracts  and/or
offsetting  positions  (portfolio  securities or other positions with respect to
which the Fund's risk of loss is substantially diminished by one or more options
or futures  contracts)  may also be deferred under the tax straddle rules of the
Code, which may also affect the characterization of capital gains or losses from
straddle  positions and certain successor  positions as long-term or short-term.
The tax rules  applicable  to  options,  futures  and  straddles  may affect the
amount,  timing and  character  of the  Fund's  income and loss and hence of its
distributions to shareholders.

     Federal law requires that the Fund withhold (as "backup  withholding")  31%
of reportable  payments,  including dividends,  capital gain dividends,  and the
proceeds of redemptions  (including exchanges) and repurchases,  to shareholders
who have not complied with IRS  regulations.  In order to avoid this withholding
requirement,  shareholders  must certify on their  Account  Applications,  or on
separate W-9 Forms,  that the Social  Security or other Taxpayer  Identification
Number  they  provide is their  correct  number and that they are not  currently
subject to backup withholding,  or that they are exempt from backup withholding.
The Fund may nevertheless be required to withhold if it receives notice from the
IRS or a broker that the number  provided is incorrect or backup  withholding is
applicable  as a result of  previous  underreporting  of  interest  or  dividend
income.

     The description  above relates only to U.S. federal income tax consequences
for shareholders who are U.S. persons, i.e., U.S. citizens or residents and U.S.
domestic corporations,  partnerships,  trusts or estates, and who are subject to
U.S.  federal  income tax. The  description  does not address  special tax rules
applicable  to  certain  classes  of  investors,  such as  tax-exempt  entities,
insurance  companies,  and financial  institutions.  Shareholders should consult
their own tax advisers on these matters and on state, local and other applicable
tax laws. Investors other than U.S. persons may be subject to different U.S. tax
treatment,  including a possible 30% U.S. withholding tax (or withholding tax at


                                      B-31
<PAGE>

a lower treaty rate) on dividends treated as ordinary income.


11. DESCRIPTION OF SHARES

     The Fund's Agreement and Declaration of Trust permits its Board of Trustees
to authorize the issuance of an unlimited  number of full and fractional  shares
of  beneficial  interest  (without  par value)  which may be  divided  into such
separate  series as the Trustees  may  establish.  The  Trustees  may  establish
additional series of shares, and may divide or combine the shares into a greater
or lesser number of shares without thereby changing the proportionate beneficial
interests in the Fund. Each share represents an equal proportionate  interest in
the Fund with each  other  share.  The  shares of any  additional  series  would
participate  equally in the  earnings,  dividends  and assets of the  particular
series, and would be entitled to vote separately to approve investment  advisory
agreements or changes in investment restrictions, but shareholders of all series
would vote together in the election and  selection of Trustees and  accountants.
Upon liquidation of the Fund, the Fund's  shareholders are entitled to share pro
rata in the Fund's net assets available for  distribution to  shareholders.  The
Fund  currently  has only one class of shares of  beneficial  interest,  but may
establish  other  classes in the  future  upon such  terms as the  Trustees  may
establish.

     As determined by the  Trustees,  shareholders  are entitled to one vote for
each share held or each dollar of net asset  value  (number of shares held times
the Fund's net asset value).  Shareholders  may vote in the election of Trustees
and on other matters  submitted to meetings of shareholders.  Although  Trustees
are not elected annually by the  shareholders,  shareholders  have under certain
circumstances the right to remove one or more Trustees.  No amendment  adversely
affecting certain rights of shareholders may be made to the Fund's Agreement and
Declaration of Trust without the  affirmative  vote of a majority of its shares.
Shares  have no  preemptive  or  conversion  rights.  Shares  are fully paid and
non-assessable. See "Certain Liabilities."


12. CERTAIN LIABILITIES

   
     As a Delaware  business  trust,  the Fund's  operations are governed by its
Agreement and  Declaration  of Trust dated March 10, 1995, a copy of which is on
file with the Office of the Secretary of State of the State of Delaware.
    

     Generally,  Delaware business trust  shareholders are not personally liable
for obligations of the Delaware  business trust under Delaware law. The Delaware


                                      B-32
<PAGE>

Business  Trust  Act (the  "Delaware  Act")  provides  that a  shareholder  of a
Delaware  business  trust shall be entitled to the same  limitation of liability
extended  to  shareholders  of  private  for-profit  corporations.   The  Fund's
Agreement and  Declaration  of Trust  expressly  provides that the Fund has been
organized under the Delaware Act and that the Agreement and Declaration of Trust
is to be governed by Delaware law. It is  nevertheless  possible that a Delaware
business trust,  such as the Fund,  might become a party to an action in another
state  whose  courts  refused to apply  Delaware  law, in which case the trust's
shareholders could be subject to personal liability.

     To guard  against this risk,  the Agreement  and  Declaration  of Trust (i)
contains an express disclaimer of shareholder  liability for acts or obligations
of the Fund and  provides  that notice of such  disclaimer  may be given in each
agreement, obligation and instrument entered into or executed by the Fund or its
Trustees,  (ii)  provides for the  indemnification  out of Fund  property of any
shareholders  held  personally  liable  for any  obligations  of the Fund or any
series of the Fund and (iii) provides that the Fund shall, upon request,  assume
the defense of any claim made against any  shareholder for any act or obligation
of the  Fund  and  satisfy  any  judgment  thereon.  Thus,  the  risk  of a Fund
shareholder  incurring  financial loss beyond his or her  investment  because of
shareholder  liability is limited to circumstances in which all of the following
factors  are  present:  (1) a court  refused  to  apply  Delaware  law;  (2) the
liability  arose  under  tort  law or,  if not,  no  contractual  limitation  of
liability  was in effect;  and (3) the Fund  itself  would be unable to meet its
obligations. In light of Delaware law, the nature of the Fund's business and the
nature of its assets,  the risk of personal  liability to a Fund  shareholder is
remote.

     The Agreement and Declaration of Trust further provides that the Fund shall
indemnify  each of its Trustees and officers  against  liabilities  and expenses
reasonably  incurred by them, in connection with, or arising out of, any action,
suit or proceeding,  threatened  against or otherwise  involving such Trustee or
officer,  directly or indirectly, by reason of being or having been a Trustee or
officer of the Fund.  The Agreement and  Declaration of Trust does not authorize
the Fund to indemnify  any Trustee or officer  against any liability to which he
or she would otherwise be subject by reason of or for willful  misfeasance,  bad
faith, gross negligence or reckless disregard of such person's duties.


                                      B-33
<PAGE>


13. DETERMINATION OF NET ASSET VALUE

   
     The net asset value per share of the Fund is  determined as of the close of
regular trading (currently 4:00 p.m., Eastern Time) on each day on which the New
York Stock Exchange (the "Exchange") is open for regular trading. As of the date
of this  Statement of Additional  Information,  the Exchange is open for trading
every weekday  except for the following  holidays:  New Year's Day,  Presidents'
Day, Good Friday,  Memorial Day,  Independence Day, Labor Day,  Thanksgiving Day
and Christmas Day. The net asset value per share of the Fund is also  determined
on any other day in which the level of trading in its  portfolio  securities  is
sufficiently  high so that the  current  net  asset  value  per  share  might be
materially  affected by changes in the value of its  portfolio  securities.  The
Fund is not  required to  determine  its net asset value per share on any day in
which no  purchase  orders for the shares of the Fund  become  effective  and no
shares are tendered for redemption.
    

     The net asset  value per share of the Fund is  computed by taking the value
of all of its assets,  less its  liabilities,  and  dividing it by the number of
outstanding  shares.  Expenses of the Fund are accrued daily.  Securities  which
have not traded on the date of  valuation or  securities  for which sales prices
are not generally reported are valued at the mean between the last bid and asked
prices.  Securities  for  which  no  market  quotations  are  readily  available
(including those the trading of which has been suspended) will be valued at fair
value as determined in good faith by the Board of Trustees,  although the actual
computations  may be made by persons  acting  pursuant to the  direction  of the
Board.  The maximum  offering  price per share is the net asset value per share,
plus the maximum sales charge.


14. SYSTEMATIC WITHDRAWAL PLAN

     The Systematic  Withdrawal Plan is designed to provide a convenient  method
of  receiving  fixed  payments  at  regular  intervals  from  shares of the Fund
deposited  by the  applicant  under this Plan.  The  applicant  must  deposit or
purchase  for  deposit  with PSC shares of the Fund  having a total value of not
less than $10,000. Periodic checks of $50 or more will be sent to the applicant,
or any person designated by him, monthly or quarterly.  A designation of a third
party to receive checks requires an acceptable signature guarantee.

     Any income  dividends or capital  gains  distributions  on shares under the
Systematic  Withdrawal  Plan will be credited to the Plan account on the payment
date in full and fractional shares at the net asset value per share in effect on
the record date.


                                      B-34
<PAGE>

     Systematic  Withdrawal  Plan  payments  are made from the  proceeds  of the
redemption of shares  deposited under the Plan in a Plan account.  To the extent
that such redemptions for periodic withdrawals exceed dividend income reinvested
in the Plan account, such redemptions will reduce and may ultimately exhaust the
number  of  shares  deposited  in the  Plan  account.  Redemptions  are  taxable
transactions to shareholders. In addition, the amounts received by a shareholder
cannot  be  considered  as an actual  yield or  income on his or her  investment
because part of such payments may be a return of his or her investment.

     The Systematic Withdrawal Plan may be terminated at any time (1) by written
notice  to PSC or  from  PSC to the  shareholder;  (2)  upon  receipt  by PSC of
appropriate  evidence of the  shareholder's  death; or (3) when all shares under
the Plan have been redeemed.


15. LETTER OF INTENTION

   
     Purchases in the Fund of $50,000 or over  (excluding any  reinvestments  of
dividends  and  capital  gains  distributions)  made  within a  13-month  period
pursuant to a Letter of  Intention  provided  by PFD will  qualify for a reduced
sales  charge.  Such  reduced  sales  charge  will be the  charge  that would be
applicable to the purchase of all shares  purchased  during such 13-month period
pursuant to a Letter of Intention  had such shares been  purchased  all at once.
See "Information About Fund Shares" in the Prospectus. For example, a person who
signs a Letter of Intention  providing for a total  investment in Fund shares of
$50,000  over a 13-month  period would be charged at the 4.50% sales charge rate
with respect to all  purchases  during that period.  Should the amount  actually
purchased  during the 13-month period be more or less than that indicated in the
Letter,  an  adjustment  in the sales  charge will be made.  A purchase not made
pursuant to a Letter of Intention  may be included  thereafter  if the Letter is
filed  within 90 days of such  purchase.  Any  shareholder  may also  obtain the
reduced sales charge by including the value (at current  offering  price) of all
his  shares in the Fund and all other  Pioneer  open-end  mutual  funds,  except
direct  purchases of the Class A shares of Pioneer Money Market  Trust,  held of
record as of the date of his Letter of Intention as a credit toward  determining
the  applicable  scale of sales charge for the shares to be purchased  under the
Letter of Intention.
    

     The Letter of Intention  authorizes  PSC to escrow shares having a purchase
price equal to 5% of the stated investment in the Letter of Intention.  A Letter
of Intention is not a binding  obligation upon the investor to purchase,  or the


                                      B-35
<PAGE>

Fund to  sell,  the full  amount  indicated  and the  investor  should  read the
provisions  of the Letter of  Intention  contained  in the  Account  Application
carefully before signing.


16. INVESTMENT RESULTS

     One of the primary methods used to measure the Fund's performance is "total
return." "Total return" will normally  represent the percentage  change in value
of an account,  or of a hypothetical  investment in the Fund, over any period up
to the lifetime of the Fund. Total return  calculations  will usually assume the
reinvestment  of all  dividends  and  capital  gains  distributions  and will be
expressed as a percentage  increase or decrease from an initial  value,  for the
entire period or for one or more  specified  periods  within the entire  period.
Total  return  percentages  for  periods  of less than one year will  usually be
annualized;  total  return  percentages  for  periods  longer than one year will
usually be  accompanied  by total  return  percentages  for each year within the
period and/or by the average annual compounded total return for the period.  The
income and capital  components  of a given return may be separated and portrayed
in a  variety  of ways in  order  to  illustrate  their  relative  significance.
Performance may also be portrayed in terms of cash or investment values, without
percentages. Past performance cannot guarantee any particular future result.

     The Fund's yield  quotations and average annual total return  quotations as
they may appear in the Prospectus,  this Statement of Additional  Information or
in advertising are calculated by standard methods prescribed by the Commission.

     Standardized Yield Quotations. The Fund's yield is computed by dividing the
Fund's net  investment  income per share during a base period of 30 days, or one
month,  by the maximum  offering  price per share of the Fund on the last day of
such base period in accordance with the following formula:


                                      B-36
<PAGE>

                                                  a-b
                                    YIELD = 2[ ( ----- +1)6 -1]
                                                   cd

         Where:   a  =    interest earned during the period

                  b  =    net expenses accrued for the period

                  c  =    the average daily number of shares outstanding
                          during the period that were entitled to
                          receive dividends

                  d  =    the maximum offering price per share on the
                          last day of the period

     For purposes of calculating interest earned on debt obligations as provided
in item "a" above:

     (i) The yield to maturity of each  obligation  held by the Fund is computed
based on the market value of the obligation  (including actual accrued interest,
if any) at the close of  business  each day during the 30-day base  period,  or,
with respect to obligations purchased during the month, the purchase price (plus
actual  accrued  interest,  if any) on  settlement  date,  and with  respect  to
obligations sold during the month the sale price (plus actual accrued  interest,
if any) between the trade and settlement dates.

     (ii) The yield to maturity of each  obligation  is then  divided by 360 and
the  resulting  quotient is  multiplied  by the market  value of the  obligation
(including actual accrued interest,  if any) to determine the interest income on
the obligation for each day. The yield to maturity  calculation has been made on
each obligation during the 30-day base period.

     (iii)  Interest  earned on all debt  obligations  during  the 30-day or one
month period is then totaled.

     (iv) The maturity of an  obligation  with a call  provision(s)  is the next
call date on which the obligation reasonably may be expected to be called or, if
none, the maturity date.

     With respect to the  treatment of discount and premium on mortgage or other
receivables-backed  obligations  which are  expected  to be  subject  to monthly
payments of principal and interest ("pay downs"),  the Fund accounts for gain or
loss  attributable  to actual  monthly  pay downs as an  increase or decrease to
interest  income  during  the  period.  In  addition,  the Fund may elect (i) to
amortize the discount or premium  remaining on a security,  based on the cost of


                                      B-37
<PAGE>

the security,  to the weighted  average  maturity  date, if such  information is
available,  or to the remaining  term of the security,  if the weighted  average
maturity date is not available,  or (ii) not to amortize the remaining  discount
or premium on a security.

   
     The Fund's  standardized  yield for the 30-day periods  October 25, 1993 to
June 30,  1994 and July 1,  1994 to  December  31,  1994 were  3.45% and  5.63%,
respectively.  Assuming no fee  reductions  or expense  limitations,  the Fund's
standardized  yield  for the same  periods  would  have been  2.88%  and  4.97%,
respectively.

     Standardized  Average Annual Total Return Quotations.  Average annual total
return quotations are computed by finding the average annual compounded rates of
return that would  cause a  hypothetical  investment  made on the first day of a
designated  period (assuming all dividends and  distributions are reinvested) to
equal the ending  redeemable value of such  hypothetical  investment on the last
day of the designated period in accordance with the following formula:
    

                            P(1+T)n  =  ERV

Where:   P    =     a hypothetical initial payment of $1000,
                    less the maximum sales load of $5.75.

         T    =     average annual total return

         n    =     number of years

         ERV  =     ending  redeemable  value of the  hypothetical  $1000
                    initial payment made at the beginning of the designated
                    period (or fractional portion thereof)


         For purposes of the above  computation,  it is assumed that the maximum
sales  charge of 5.75% was  deducted  from the initial  investment  and that all
dividends and  distributions  made by the Fund are reinvested at net asset value
during the  designated  period.  The average  annual total  return  quotation is
determined to the nearest 1/100 of 1%.

         In determining the average annual total return  (calculated as provided
above), recurring fees, if any, that are charged to all shareholder accounts are
taken into  consideration.  For any account  fees that vary with the size of the
account,  the account fee used for purposes of the above  computation is assumed
to be the fee that would be charged to the Fund's mean account size.


                                      B-38
<PAGE>

   
         The Fund's annual total return for the periods October 25, 1993 to June
30,  1994  and July 1,  1994 to  December  31,  1994  were  -1.47%  and  -2.16%,
respectively.  The Fund's one-year and  life-of-Fund  annual total returns as of
December  31,  1994  were  -5.54%  and  -7.78%,  respectively.  Assuming  no fee
reductions or expense  limitations,  the Fund's annual total return for the same
periods would have been lower.

         Other Quotations,  Comparisons,  and General Information.  From time to
time, in advertisements, in sales literature, or in reports to shareholders, the
past  performance  of the Fund may be illustrated  and/or  compared with that of
other  mutual funds with similar  investment  objectives,  and to stock or other
relevant  indices.  For  example,  the Fund's  total  return may be  compared to
averages or rankings  prepared by Lipper  Analytical  Services,  Inc.,  a widely
recognized  independent  service which  monitors  mutual fund  performance;  the
Standard & Poor's 500 Stock  Index ("S&P  500"),  an  unmanaged  index of common
stocks;  or the Dow Jones Industrial  Average,  a recognized  unmanaged index of
common stocks of 30 industrial companies listed on the New York Stock Exchange.

         In addition, the performance of the Fund may be compared to alternative
investment  or savings  vehicles  and/or to indexes or  indicators  of  economic
activity,  e.g., inflation or interest rates.  Performance rankings and listings
reported in newspapers or national business and financial publications,  such as
Barron's,  Business Week, Consumer's Digest, Consumer's Report, Financial World,
Forbes,  Fortune,   Investors  Business  Daily,   Kiplinger's  Personal  Finance
Magazine,  Lipper Real Estate Funds  Average,  Money  Magazine,  NARIET All Reit
Index,  NAREIT  Equity Reit Index,  the New York Times,  RUSSELL-NACRIEF  Index,
Smart Money,  USA Today,  U.S. News and World Report,  The Wall Street  Journal,
Wilshire Real Estate  Securities  Trust and Worth may also be cited (if the Fund
is  listed  in any  such  publication)  or  used  for  comparison,  as  well  as
performance listings and rankings from various other sources including Bloomberg
Financial Systems,  CDA/Wiesenberger  Investment  Companies Service,  Donoghue's
Mutual Fund Almanac,  Investment  Company Data, Inc.,  Johnson's  Charts,  Kanon
Bloch Carre & Co., Micropal,  Inc.,  Morningstar,  Inc.,  Schabacker  Investment
Management, Towers Data Systems and Weisenberger Investment Companies Service.
    

         In addition, from time to time, quotations from articles from financial
publications,  such as those listed  above,  may be used in  advertisements,  in
sales literature or in reports to shareholders of the Fund.


                                      B-39
<PAGE>

Automated Information Line

         FactFone,   Pioneer's  24-hour   automated   information  line,  allows
shareholders   to  dial   toll-free   1-800-225-4321   and  hear  recorded  fund
information, including:

         o   net asset value prices for all Pioneer mutual funds;

         o   annualized 30-day yields on Pioneer's bond funds;

         o   annualized 7-day yields and 7-day effective (compound)
             yields for Pioneer's money market funds; and

         o   dividends and capital gains distributions on all
             Pioneer mutual funds.

Yields are  calculated in  accordance  with  standard  formulas  mandated by the
Securities and Exchange Commission.

         In  addition,   by  using  a  personal   identification  number  (PIN),
shareholders  may access their account balance and last three  transactions  and
may order a duplicate statement.

         All performance  numbers  communicated  through FactFone represent past
performance;  figures for all quoted bond funds  include the maximum  applicable
sales  charge.  A  shareholder's  actual  yield and total  return will vary with
changing market conditions. The value of shares (except for Pioneer money market
funds,  which seek a stable $1.00 share  price) will also vary,  and they may be
worth more or less at redemption than their original cost.


17.      FINANCIAL STATEMENTS

         The Fund's  financial  statements for the periods from October 25, 1993
(commencement of operations) through June 30, 1994 and from July 1, 1994 through
December 31, 1994 attached to this Statement of Additional Information have been
included in reliance upon the report of Arthur Andersen LLP,  independent public
accountants, as experts in accounting and auditing.




                                      B-40
<PAGE>


                                   APPENDIX A

                          DESCRIPTION OF BOND RATINGS


         The rating systems  described herein are believed to be the most recent
ratings systems  available from Moody's Investors  Service,  Inc. and Standard &
Poor's Ratings Group at the date of this Statement of Additional Information for
the securities listed.  Ratings are generally given to securities at the time of
issuance.  While the rating  agencies may from time to time revise such ratings,
they  undertake  no  obligation  to do so,  and  the  ratings  indicated  do not
necessarily  represent  ratings  which will be given to these  securities on the
date of the Fund's fiscal year end.

Moody's Investors Service, Inc.

         Aaa:  Bonds  which are rated Aaa are judged to be of the best  quality.
They carry the smallest degree of investment risk and are generally  referred to
as  "gilt  edge."  Interest   payments  are  protected  by  a  large  or  by  an
exceptionally   stable  margin  and  principal  is  secure.  While  the  various
protective  elements are likely to change, such changes as can be visualized are
most unlikely to impair the fundamentally strong position of such issues.

         Aa:  Bonds  which are rated Aa are judged to be of high  quality by all
standards. Together with the Aaa group they comprise what are generally known as
high grade bonds.  They are rated lower than the best bonds  because  margins of
protection may not be as large as in Aaa securities or fluctuation of protective
elements  may be of greater  amplitude  or there may be other  elements  present
which make the long-term risks appear somewhat larger than in Aaa securities.

         A: Bonds which are rated A possess many favorable investment attributes
and are to be  considered  as upper medium  grade  obligations.  Factors  giving
security to principal and interest are considered adequate,  but elements may be
present which suggest a susceptibility to impairment sometime in the future.

         Baa:  Bonds  which  are  rated  Baa  are  considered  as  medium  grade
obligations,  i.e.,  they are  neither  highly  protected  nor  poorly  secured.
Interest  payments and principal  security  appear  adequate for the present but
certain  protective  elements  may  be  lacking  or  may  be  characteristically
unreliable over any great length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as well.


                                      A-1
<PAGE>

         Ba: Bonds which are rated Ba are judged to have  speculative  elements;
their future  cannot be  considered  as well  assured.  Often the  protection of
interest  and  principal  payments  may be very  moderate  and  thereby not well
safeguarded  during  both good and bad times  over the  future.  Uncertainty  of
position characterizes bonds in this class.

         B:  Bonds  which  are rated B  generally  lack  characteristics  of the
desirable  investment.  Assurance  of  interest  and  principal  payments  or of
maintenance  of other terms of the contract  over any long period of time may be
small.

         Caa: Bonds which are rated Caa are of poor standing. Such issues may be
in default or there may be present  elements of danger with respect to principal
or interest.

         Ca:  Bonds  which  are  rated  Ca  represent   obligations   which  are
speculative  in a high  degree.  Such  issues are often in default or have other
marked shortcomings.

         C: Bonds  which are rated C are the lowest  rated  class of bonds,  and
issues so rated can be  regarded  as having  extremely  poor  prospects  of ever
attaining any real investment standing.

         Unrated:  Where no rating has been  assigned or where a rating has been
suspended or  withdrawn,  it may be for reasons  unrelated to the quality of the
issue.

         Should no rating be assigned, the reason may be one of the following:

          1.   An application for rating was not received or accepted.

          2.   The issue or issuer belongs to a group of securities or companies
               that are not rated as a matter of policy.

          3.   There is a lack of  essential  data  pertaining  to the  issue or
               issuer.

          4.   The issue was privately  placed,  in which case the rating is not
               published in Moody's publications.

         Suspension  or withdrawal  may occur if new and material  circumstances
arise,  the  effects of which  preclude  satisfactory  analysis;  if there is no
longer available  reasonable  up-to-date data to permit a judgment to be formed;
if a bond is called for redemption; or for other reasons.
<PAGE>

         Note:  Those  bonds in the Aa, A, Baa,  Ba and B groups  which  Moody's
believe  possess the  strongest  investment  attributes  are  designated  by the
symbols Aa1, A1, Baa1 and B1.

Standard & Poor's Ratings Group1

         AAA:  Bonds  rated AAA have the highest  rating  assigned by Standard &
Poor's. Capacity to pay interest and repay principal is extremely strong.

         AA:  Bonds rated AA have a very strong  capacity  to pay  interest  and
repay principal and differ from the higher rated issues only in small degree.

         A: Bonds rated A have a very strong  capacity to pay interest and repay
principal  although they are somewhat more susceptible to the adverse effects of
changes in  circumstances  and  economic  conditions  than bonds in higher rated
categories.

         BBB: Bonds rated BBB are regarded as having an adequate capacity to pay
interest and repay principal.  Whereas they normally exhibit adequate protection
parameters,  adverse  economic  conditions  or changing  circumstances  are more
likely to lead to a weakened  capacity to pay interest and repay  principal  for
bonds in this category than in higher rated categories.

         BB, B, CCC,  CC, C: Bonds rated BB, B, CCC, CC and C are  regarded,  on
balance,  as predominantly  speculative with respect to capacity to pay interest
and repay principal in accordance with the terms of the obligation. BB indicates
the lowest degree of speculation  and the highest degree of  speculation.  While
such bonds will likely have some quality and protective  characteristics,  these
are  outweighed  by large  uncertainties  of major  risk  exposures  to  adverse
conditions.

         D: Bonds rated D are in payment default.  The D rating category is used
when interest  payments or principal  payments are not made on the date due even
if the  applicable  grace  period  has not  expired,  unless  Standard  & Poor's
believes that such payments will be made during such grace period.

         Plus (+) or Minus (-):  The ratings from "AA" to "B" may be modified by
the addition of a plus or minus sign to show relative  standing within the major
rating categories.

- --------
1       Rates  all  governmental  bodies  having  $1,000,000  or  more  of debt
outstanding, unless adequate information is not available.


<PAGE>

         Unrated: Indicates that no public rating has been requested, that there
is insufficient information on which to base a rating, or that Standard & Poor's
does not rate a particular type of obligations as a matter of policy.

<PAGE>






                                   APPENDIX B


                         ADDITIONAL PIONEER INFORMATION


         The Pioneer  family of mutual  funds was  established  in 1928 with the
creation of Pioneer  Fund.  Pioneer is one of the  oldest,  most  respected  and
successful money managers in the United States.

         As of December 31, 1994, PMC employed a professional  investment  staff
of 46, with a combined average of 14 years' experience in the financial services
industry.

   
         At December 31, 1994,  there were  591,192  non-retirement  shareholder
accounts and 337,577  retirement  shareholder  accounts in the Pioneer's  funds.
Total assets for all Pioneer Funds as of December 31, 1994 were  $10,038,000,000
representing 928,769 shareholder accounts.
    










                                      B-*1
<PAGE>

<TABLE>
<CAPTION>

                                      Pioneer Winthrop Real Estate Investment Fund

Date      Initial Investment     Offering Price     Sales Charge    Shares Purchased    Net Asset Value  Initial Net Asset
                                                                        Included           Per Share           Value
<C>            <C>                   <C>               <C>               <C>               <C>                <C>   
10/25/93       10,000                $13.26            5.75%             754.148            $12.50            $9,425


                                           Dividends and Capital Gains Reinvested

                                                      Value of Shares
                             
Date        From Investment      From Cap. Gains      From Dividends      Total Value
                                                        Reinvested         Reinvested
12/31/93       $9,012                  $0                  $55                $9,067
12/31/94       $8,583                 $20                 $485                $9,088


</TABLE>





<PAGE>


                        APPENDIX C - SECURITIES INDICES

                               INDEX DESCRIPTIONS

S&P 500 *
This index is a readily available, carefully constructed,  market value weighted
benchmark  of common  stock  performance.  Currently,  the S&P  Composite  Index
includes  500 of the  largest  stocks  (in terms of stock  market  value) in the
United States; prior to March 1957 it consisted of 90 of the largest stocks.

DOW JONES INDUSTRIAL AVERAGE *
This is a total return index based on the performance of 30 blue chip stocks.

SMALL CAPITALIZATION STOCKS *
This index is a market value  weighted  index of the ninth and tenth  deciles of
the New York Stock  Exchange  (NYSE),  plus stocks listed on the American  Stock
Exchange (AMEX) and over-the-counter  (OTC) with the same or less capitalization
as the upper bound of the NYSE ninth decile.

INFLATION *
The  Consumer  Price  Index  for All Urban  Consumers  (CPI-U),  not  seasonally
adjusted, is used to measure inflation,  which is the rate of change of consumer
goods prices.  Unfortunately,  the  inflation  rate as derived by the CPI is not
measured  over the same period as the other asset  returns.  All of the security
returns are measured  from one  month-end to the next  month-end.  CPI commodity
prices are collected during the month.  Thus,  measured  inflation rates lag the
other  series  by about  one-half  month.  Prior to  January  1978,  the CPI (as
compared with CPI-U) was used.  Both inflation  measures are  constructed by the
U.S. Department of Labor, Bureau of Labor Statistics, Washington, DC.

S&P/BARRA INDEXES *
"The S&P/BARRA  Growth and Value Indexes are  constructed by dividing the stocks
in the S&P 500  Index  according  to  price-to-book  ratios.  The  Growth  Index
contains stocks with higher  price-to-book  ratios, and the Value Index contains
stocks with lower price-to-book  ratios. Both indexes are market  capitalization
weighted."

LONG-TERM MUNICIPAL BOND PORTFOLIO *
For 1926-1984,  returns are calculated  form yields on 20-year prime issues from
Solomon  Brothers'  Analytical  Record of Yields  and Yields  Spreads,  assuming
coupon equals previous year-end yield and a 20-year maturity.  For 1985-present,
returns are  calculated  using Moody's Bond Record,  using the December  average
municipal yield as the  beginning-of-following  year coupon (average of Aaa, Aa,
A, Baa grades).

LONG-TERM CORPORATE BONDS *
For  1969-1991,  corporate  bond total  returns are  represented  by the Salomon
Brothers Long-Term  High-Grade  Corporate Bond Index. Since most large corporate
bond  transactions  take place over the  counter,  a major dealer is the natural
source of these data. The index includes  nearly all Aaa- and Aa-rated bonds. If
a bond is  downgraded  during a  particular  month,  its return for the month is
included in the index before removing the bond from future portfolios.
<PAGE>

                               INDEX DESCRIPTIONS


Over  1926-1968  the total  returns  were  calculated  by  summing  the  capital
appreciation returns and the income returns. For the period 1946-1968,  Ibbotson
and Sinquefield  backdated the Salomon Brothers' index,  using Salomon Brothers'
monthly  yield  data with a  methodology  similar  to that used by  Salomon  for
1969-1991. Capital appreciation returns were calculated from yields assuming (at
the beginning of each monthly holding period) a 20-year  maturity,  a bond price
equal to par,  and a  coupon  equal to the  beginning-of-period  yield.  For the
period 1926-1945, the Standard and Poor's monthly High-Grade Corporate Composite
yield data were used,  assuming a 4 percent coupon and a 20-year  maturity.  The
conventional  present-value  formula  for  bond  price  for  the  beginning  and
end-of-month  prices was used.  (This formula is presented in Ross,  Stephen A.,
and Randolph W. Westerfield,  Corporate Finance, Times Mirror/Mosby,  St. Louis,
1990, p. 97 ["Level-Coupon Bonds"].) The monthly income return was assumed to be
one-twelfth the coupon.

LONG-TERM GOVERNMENT BOND TOTAL RETURN *
The  total  returns  on  long-term  government  bonds  from  1977  to  1991  are
constructed  with data from The Wall Street Journal.  Over  1926-1976,  data are
obtained  from the  Government  bond file at the Center for Research in Security
Prices (CRSP), Graduate School of Business,  University of Chicago. Each year, a
one-bond  portfolio  with a term of  approximately  20  years  and a  reasonably
current  coupon  was used,  and whose  returns  did not  reflect  potential  tax
benefits,  impaired  negotiability,  or special  redemption or call  privileges.
Where  callable  bonds had to be used,  the term of the bond was assumed to be a
simple  average of the maturity and first call dates minus the current date. The
bond was "held" for the calendar year and returns were  computed.  Total returns
for  1977-1991 are  calculated  as the change in the flat price or  and-interest
price.

INTERMEDIATE-TERM GOVERNMENT BONDS TOTAL RETURN *
Total  returns  of the  intermediate-term  government  bonds for  1977-1991  are
calculated from The Wall Street Journal prices,  using the change in flat price.
Returns from 1934-1986 are obtained from the CRSP Government Bond File.

Each year,  one-bond  portfolios  are formed,  the bond  chosen is the  shortest
noncallable  bond with a maturity not less than 5 years, and this bond is "held"
for the  calendar  year.  Monthly  returns are  computed.  (Bonds with  impaired
negotiability or special redemption  privileges are omitted, as are partially or
fully  tax-exempt  bonds starting with 1943.) From  1934-1942,  almost all bonds
with maturities near 5 years were partially or full tax-exempt and were selected
using the rules described  above.  Personal tax rates were generally low in that
period,  so that yields on  tax-exempt  bonds were  similar to yields on taxable
bonds. From 1926-1933, there are few bonds suitable for construction of a series
with a 5-year  maturity.  For this period,  five year bond yield  estimates  are
used.


<PAGE>

                               INDEX DESCRIPTIONS


U.S. (30 DAY) TREASURY BILL TOTAL RETURNS *
For the U.S. Treasury bill index, data from The Wall Street Journal are used for
1977-1991;  the CRSP U.S.  Government  Bond File is the source until 1976.  Each
month a one-bill  portfolio  containing the  shortest-term  bill having not less
than one month to maturity is constructed. (The bill's original term to maturity
is not relevant.) To measure holding period returns for the one-bill  portfolio,
the bill is priced as of the last trading day of the previous  month-end  and as
of the last trading day of the current month.

BANK SAVINGS ACCOUNT **
Data sources include the U.S. League of Savings Institutions Sourcebook; average
annual yield on savings  deposits in FSLIC [FDIC] insured  savings  institutions
for the years 1963-1987 and The Wall Street Journal for the years 1988-1994.

6 MONTH CD **
Data sources include the Federal Reserve Bulletin and The Wall Street Journal.

MSCI
Morgan  Stanley  Capital  International   Indices,   developed  by  the  Capital
International  S.A., are based on share prices of some 1470 companies  listed on
the stock exchanges around the world.

Countries in the MSCI EAFE Portfolio *are: Australia; Austria; Belgium; Denmark;
Finland;  France;  Germany;  Hong Kong; Italy; Japan;  Netherlands;  N. Zealand;
Norway; Singapore/Malaysia; Spain; Sweden; Switzerland; United Kingdom.

Countries in the MSCI EUROPE 14 Portfolio *** are:  Austria,  Belgium,  Denmark,
Finland, France, Germany,  Ireland, Italy,  Netherlands,  Norway, Spain, Sweden,
Switzerland, United Kingdom

Countries in the MSCI WORLD  Portfolio  *** are:  Australia;  Austria;  Belgium;
Canada; Denmark; Finland; France; Germany; Hong Kong; Italy; Japan; Netherlands;
N. Zealand;  Norway;  Singapore/Malaysia;  Spain;  Sweden;  Switzerland;  United
Kingdom; United States.

INTERNATIONAL FINANCE CORPORATION COMPOSITE *
An  index   representing  the  performance  of  a  composite  of  Latin  America
(Argentina, Brazil, Chile, Columbia, Mexico, Peru, Venezuela), East Asia (China,
Korea, Philippines,  Taiwan), South Asia (India, Indonesia,  Malaysia, Pakistan,
Sri Lanka, Thailand),  Europe/Mideast/Africa  (Greece, Hungary, Jordan, Nigeria,
Poland, Portugal, Turkey, Zimbabwe).

Sources:     *  Ibbotson Associates
            **  Towers Data Systems
           ***  Lipper  Analytical Services


<PAGE>

<TABLE>
<CAPTION>

                                      Dow Jones        U.S. Small                         S&P/BARRA        S&P/BARRA
                       S&P500         Ind'l Avg        Stock Index     U.S. Inflation       Growth           Value
                        %TR              %TR              %TR               %TR              %TR              %TR

<S> <C>                <C>              <C>               <C>               <C>              <C>              <C>
Dec 1928               43.61            55.38            39.69            -0.97             N/A              N/A
Dec 1929               -8.42           -13.64           -51.36             0.20             N/A              N/A
Dec 1930              -24.90           -30.22           -38.15            -6.03             N/A              N/A
Dec 1931              -43.34           -49.03           -49.75            -9.52             N/A              N/A
Dec 1932               -8.19           -16.88            -5.39           -10.30             N/A              N/A
Dec 1933               53.99            73.71           142.87             0.51             N/A              N/A
Dec 1934               -1.44             8.07            24.22             2.03             N/A              N/A
Dec 1935               47.67            43.77            40.19             2.99             N/A              N/A
Dec 1936               33.92            30.23            64.80             1.21             N/A              N/A
Dec 1937              -35.03           -28.88           -58.01             3.10             N/A              N/A
Dec 1938               31.12            33.16            32.80            -2.78             N/A              N/A
Dec 1939               -0.41             1.31             0.35            -0.48             N/A              N/A
Dec 1940               -9.78            -7.96            -5.16             0.96             N/A              N/A
Dec 1941              -11.59            -9.88            -9.00             9.72             N/A              N/A
Dec 1942               20.34            14.12            44.51             9.29             N/A              N/A
Dec 1943               25.90            19.06            88.37             3.16             N/A              N/A
Dec 1944               19.75            17.19            53.72             2.11             N/A              N/A
Dec 1945               36.44            31.60            73.61             2.25             N/A              N/A
Dec 1946               -8.07            -4.40           -11.63            18.16             N/A              N/A
Dec 1947                5.71             7.61             0.92             9.01             N/A              N/A
Dec 1948                5.50             4.27            -2.11             2.71             N/A              N/A
Dec 1949               18.79            20.92            19.75            -1.80             N/A              N/A
Dec 1950               31.71            26.40            38.75             5.79             N/A              N/A
Dec 1951               24.02            21.77             7.80             5.87             N/A              N/A
Dec 1952               18.37            14.58             3.03             0.88             N/A              N/A
Dec 1953               -0.99             2.02            -6.49             0.62             N/A              N/A
Dec 1954               52.62            51.25            60.58            -0.50             N/A              N/A
Dec 1955               31.56            26.58            20.44             0.37             N/A              N/A
Dec 1956                6.56             7.10             4.28             2.86             N/A              N/A
Dec 1957              -10.78            -8.63           -14.57             3.02             N/A              N/A
Dec 1958               43.36            39.31            64.89             1.76             N/A              N/A
Dec 1959               11.96            20.21            16.40             1.50             N/A              N/A
Dec 1960                0.47            -6.14            -3.29             1.48             N/A              N/A
Dec 1961               26.89            22.60            32.09             0.67             N/A              N/A
Dec 1962               -8.73            -7.43           -11.90             1.22             N/A              N/A
Dec 1963               22.80            20.83            23.57             1.65             N/A              N/A
Dec 1964               16.48            18.85            23.52             1.19             N/A              N/A
Dec 1965               12.45            14.39            41.75             1.92             N/A              N/A
Dec 1966              -10.06           -15.78            -7.01             3.35             N/A              N/A
Dec 1967               23.98            19.16            83.57             3.04             N/A              N/A

<PAGE>

                                      Dow Jones        U.S. Small                         S&P/BARRA        S&P/BARRA
                       S&P500         Ind'l Avg        Stock Index     U.S. Inflation       Growth           Value
                        %TR              %TR              %TR               %TR              %TR              %TR

<S> <C>                <C>              <C>               <C>               <C>              <C>              <C>
Dec 1968               11.06             7.93            35.97             4.72             N/A              N/A
Dec 1969               -8.50           -11.78           -25.05             6.11             N/A              N/A
Dec 1970                4.01             9.21           -17.43             5.49             N/A              N/A
Dec 1971               14.31             9.83            16.50             3.36             N/A              N/A
Dec 1972               18.98            18.48             4.43             3.41             N/A              N/A
Dec 1973              -14.66           -13.28           -30.90             8.80             N/A              N/A
Dec 1974              -26.47           -23.58           -19.95            12.20             N/A              N/A
Dec 1975               37.20            44.75            52.82             7.01            31.72            43.38
Dec 1976               23.84            22.82            57.38             4.81            13.84            34.93
Dec 1977               -7.18           -12.84            25.38             6.77           -11.82            -2.57
Dec 1978                6.56             2.79            23.46             9.03             6.78             6.16
Dec 1979               18.44            10.55            43.46            13.31            15.72            21.16
Dec 1980               32.42            22.17            39.88            12.40            39.40            23.59
Dec 1981               -4.91            -3.57            13.88             8.94            -9.81             0.02
Dec 1982               21.41            27.11            28.01             3.87            22.03            21.04
Dec 1983               22.51            25.97            39.67             3.80            16.24            28.89
Dec 1984                6.27             1.31            -6.67             3.95             2.33            10.52
Dec 1985               32.16            33.55            24.66             3.77            33.31            29.68
Dec 1986               18.47            27.10             6.85             1.13            14.50            21.67
Dec 1987                5.23             5.48            -9.30             4.41             6.50             3.68
Dec 1988               16.81            16.14            22.87             4.42            11.95            21.67
Dec 1989               31.49            32.19            10.18             4.65            36.40            26.13
Dec 1990               -3.17            -0.56           -21.56             6.11             0.20            -6.85
Dec 1991               30.55            24.19            44.63             3.06            38.37            22.56
Dec 1992                7.67             7.41            23.35             2.90             5.07            10.53
Dec 1993                9.99            16.94            20.98             2.75             1.68            18.60
Dec 1994                1.31             5.06             3.11             2.78             3.13            -0.64

</TABLE>

Source:  Ibbotson Associates



<PAGE>



                  PIONEER WINTHROP REAL ESTATE INVESTMENT FUND

                                     PART C

                               OTHER INFORMATION

Item 24.  Financial Statements and Exhibits.

          (a)  Financial Statements:
   
               The financial  statements of the Registrant are  incorporated  by
               reference  from the 1994 Annual Report to  Shareholders  which is
               attached and incorporated by reference into Part B, the Statement
               of Additional Information.
    
          (b)  Exhibits:
   
               1.   Agreement and Declaration of Trust.*

               2.   By-Laws.*
    
               3.   None.

               4.   None.
   
               5.1  Management  Contract  between  the  Registrant  and  Pioneer
                    Winthrop Advisers.*

               5.2  Investment Subadvisory Contract by and among the Registrant,
                    Pioneer   Winthrop   Advisers  and   Pioneering   Management
                    Corporation.*

               5.3  Investment Subadvisory Contract by and among the Registrant,
                    Pioneer  Winthrop  Advisers  and Winthrop  Advisors  Limited
                    Partnership.*

               6.   Underwriting  Agreement  between the  Registrant and Pioneer
                    Funds Distributor, Inc.*
    
               7.   None.

   
               8.   Custodian   Agreement   between  the  Registrant  and  Brown
                    Brothers Harriman & Co.*
    
                                      C-1
<PAGE>

   
               9.   Investment  Company Service Agreement between the Registrant
                    and Pioneering Services Corporation.*

               10.  Opinion and Consent of Counsel.*
    
               11.  Consent of Independent Public Accountants.*
   
               12.  None.

               13.  Share Purchase Agreement.*
    
               14.  None.
   
               15.  Distribution Plan.*
    
               16.  None.
   
               17.  Financial Data Schedule.*

               18.  None.

               19.  Powers of Attorney.*
    

- --------------

  *  Filed herewith.


Item 25. Persons Controlled By or Under
         Common Control With Registrant.

         Pioneer Winthrop Advisers, a Massachusetts general partnership ("PWA"),
is a joint  venture  between The Pioneer  Group,  Inc.,  a Delaware  corporation
("PGI"), and Winthrop Financial  Associates,  A Limited Partnership,  a Delaware
limited partnership ("WFA").

         Nomura Asset Capital  Corporation  ("NACC") is an indirect wholly owned
subsidiary of Nomura Securities Co., Ltd., a Japanese  corporation with publicly
traded shares.  NACC has a 65% ownership interest in W.L. Realty,  L.P. composed

                                      C-2
<PAGE>


of limited partnership interests and the sole general partnership interest. W.L.
Realty,  L.P. owns 100% of Linnaeus Associates Limited  Partnership,  a Maryland
limited partnership  ("Linnaeus").  Linnaeus is the sole general partner in, and
owns  71.5%  of the  limited  partnership  interest  and  13.0%  of the  general
partnership  interest of, WFA. WFA is the sole general  partner and owns 100% of
the partnership  interests of Winthrop Advisors Limited Partnership,  a Delaware
limited partnership  (WALP").  WFA owns 100% of the outstanding capital stock of
First Winthrop Corporation, a Delaware corporation ("FWC"). WFA also owns 50% of
the partnership interests in PWA.

   
         PGI owns 100% of the outstanding capital stock of Pioneering Management
Corporation,  a Delaware  corporation  ("PMC"),  Pioneering Services Corporation
("PSC"),  Pioneer  Capital  Corporation  ("PCC"),  Pioneer Fonds  Marketing GmbH
("GmbH"),  Pioneer  SBIC  Corp.  ("SBIC"),  Pioneer  Associates,  Inc.,  Pioneer
International Corporation, Pioneer Plans Corporation ("PPC"), Pioneer Goldfields
Limited ("PGL"), and Pioneer Investments  Corporation ("PIC"), all Massachusetts
corporations.  PMC owns 100% of the  outstanding  capital stock of Pioneer Funds
Distributor,  Inc. ("PFD").  PGI also owns 100% of the outstanding capital stock
of Pioneer Metals and Technology,  Inc.  ("PMT"),  a Delaware  corporation,  and
Pioneer First Polish Trust Fund Joint Stock Company ("First  Polish"),  a Polish
corporation.  PGI owns 90% of the  outstanding  shares of  Teberebie  Goldfields
Limited  ("TGL").  Pioneer Fund,  Pioneer II, Pioneer Three,  Pioneer Bond Fund,
Pioneer  Intermediate  Tax-Free Fund, Pioneer Growth Trust, Pioneer Europe Fund,
Pioneer  International  Growth Fund,  Pioneer  ShortATerm Income Trust,  Pioneer
TaxAFree  State  Series  Trust and  Pioneer  America  Income  Trust (each of the
foregoing,  a Massachusetts  business trust),  and Pioneer Income Fund,  Pioneer
Emerging Markets Fund, Pioneer Tax-Free Income Fund, Pioneer India Fund, Pioneer
Growth Shares and Pioneer Money Market Trust (each of the foregoing,  a Delaware
business trust) and Pioneer Interest Shares,  Inc. (a Nebraska  corporation) are
all parties to  management  contracts  with PMC. The  Registrant is a party to a
sub-investment  management  contract with PMC and a management contact with PWA.
PCC owns 100% of the outstanding capital stock of SBIC. SBIC is the sole general
partner  of  Pioneer  Ventures  Limited  Partnership,  a  Massachusetts  limited
partnership. John F. Cogan, Jr. owns approximately 15% of the outstanding shares
of PGI.  Mr.  Cogan is  Chairman  of the  Board,  President  and  Trustee of the
Registrant  and of each of the Pioneer  mutual funds;  Director and President of
PGI; President and Director of PPC, PIC, Pioneer  International  Corporation and
PMT; Director of PCC and PSC; Chairman of the Board and Director of PMC, PFD and
TGL; Chairman,  President and Director of PGL; Chairman of the Supervisory Board
of GmbH;  Chairman and Chief  Executive  Officer of PWA;  Chairman and Member of
Supervisory Board of First Polish; and Chairman and Partner, Hale and Dorr.
    
                                      C-3
<PAGE>


Item 26. Number of Holders of Securities

                                          Number of Record Holders
         Title of Class                     as of March 31, 1995
   
  Shares of Beneficial Interest                     2,514
    

Item 27. Indemnification.

   
         Except for the Agreement and Declaration of Trust dated March 10, 1995,
establishing the Registrant as a Trust under Delaware law, there is no contract,
arrangement  or  statute  under  which any  director,  officer,  underwriter  or
affiliated person of the Registrant is insured or indemnified. The Agreement and
Declaration  of Trust  provides  that no Trustee or officer will be  indemnified
against any  liability  to which the  Registrant  would  otherwise be subject by
reason of or for willful  misfeasance,  bad faith,  gross negligence or reckless
disregard of such person's duties.
    

         Insofar as  indemnification  for liability arising under the Securities
Act of 1933, as amended (the "Act"), may be available to directors, officers and
controlling persons of the Registrant pursuant to the foregoing  provisions,  or
otherwise, the Registrant has been advised that in the opinion of the Securities
and  Exchange  Commission  such  indemnification  is  against  public  policy as
expressed in the Act and is, therefore, unenforceable. In the event that a claim
for  indemnification  against  such  liabilities  (other than the payment of the
Registrant of expenses  incurred or paid by a director,  officer or  controlling
person of the  Registrant  in the  successful  defense  of any  action,  suit or
proceeding)  is  asserted by such  director,  officer or  controlling  person in
connection with the securities being registered,  the Registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit  to a  court  of  appropriate  jurisdiction  the  question  whether  such
indemnification  by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.

Item 28. Business and Other Connections of Investment Adviser.

         The business and other  connections of the officers and partners of the
Registrant's  investment adviser,  Pioneer Winthrop Advisers,  are listed on the
Form ADV of Pioneer  Winthrop  Advisers as currently on file with the Commission
(File No. 801A44697), the text of which is hereby incorporated by reference.

                                      C-4
<PAGE>

         The business and other connections of the officers and directors of the
Registrant's  investment  subadviser,  Pioneering  Management  Corporation,  are
listed on the Form ADV of Pioneering Management Corporation as currently on file
with the Commission (File No. 01A8255) the text of which is hereby incorporated
by reference.

         The business and other  connections of the officers and partners of the
Registrant's investment subadviser,  Winthrop Advisors Limited Partnership,  are
listed on the Form ADV of Winthrop Advisors Limited  Partnership as currently on
file  with the  Commission  (File  No.  801A38027),  the text of which is hereby
incorporated by reference.

         The following sections of each such Form ADV are incorporated herein by
reference:

         (a) Items 1 and 2 of Part 2;

         (b) Section IV, Business Background, of each Schedule D.

Item 29. Principal Underwriter.

         (a) See Item 25 above.

         (b) Directors and Officers of PFD:


                              Positions and Offices      Positions and Offices
Name                          with Underwriter           with Registrant

John F. Cogan, Jr.            Director and Chairman     Chairman of the Board,
                                                        Chief Executive
                                                        Officer and Trustee

Robert L. Butler              Director and President    None

David D. Tripple              Director                  Executive Vice
                                                        President and Trustee

Steven M. Graziano            Senior Vice President     None

Stephen W. Long               Senior Vice President     None

John W. Drachman              Vice President            None

Barry G. Knight               Vice President            None

William A. Misata             Vice President            None

                                      C-5
<PAGE>

Anne W. Patenaude             Vice President            None

Elizabeth B. Rice             Vice President            None

Gail A. Smyth                 Vice President            None

Constance S. Spiros           Vice President            None

Marcy Supovitz                Vice President            None

Steven R. Berke               Assistant                 None
                              Vice President

Mary Sue Hoban                Assistant                 None
                              Vice President

William H. Keough             Treasurer                 Treasurer

Roy P. Rossi                  Assistant Treasurer       None

Joseph P. Barri               Clerk                     Secretary

                  (c) Not applicable.


Item 30. Location of Accounts and Records.

         The accounts and records are maintained at the  Registrant's  office at
60 State Street, Boston, Massachusetts; contact the Treasurer.


Item 31. Management Services.

         The  Registrant  is  not a  party  to  any  management-related  service
contract,  except as described in the  Prospectus  and  Statement of  Additional
Information.


Item 32. Undertakings.

         (a) Not applicable.

         (b) Not applicable.

         (c) The Registrant undertakes to deliver, or cause to be delivered with
the Prospectus, to each person to whom the Prospectus is sent or given a copy of
the Registrant's  report to shareholders  furnished  pursuant to and meeting the
requirements  of Rule 30d-1 under the Investment  Company Act of 1940 from which
   
                                   C-6
<PAGE>


the specified  information  is  incorporated  by  reference,  unless such person
currently  holds  securities of the Registrant and otherwise has received a copy
of such report,  in which case the Registrant shall state in the Prospectus that
it will furnish, without charge, a copy of such report on request, and the name,
address  and  telephone  number of the  person to whom such a request  should be
directed.

                                      C-7
<PAGE>



                                   SIGNATURES


   
         Pursuant  to the  requirements  of the  Securities  Act of 1933 and the
Investment Company Act of 1940, the Registrant has duly caused this Amendment to
the  Registration  Statement  to be  signed on its  behalf  by the  undersigned,
thereunto  duly  authorized,  in the  City of  Boston  and The  Commonwealth  of
Massachusetts, on the 21st day of April, 1995.
    

                                         PIONEER WINTHROP REAL ESTATE
                                         INVESTMENT FUND



   
                                         By:/s/Joseph P. Barri
                                            Joseph P. Barri
                                            Secretary
    

         Pursuant  to the  requirements  of the  Securities  Act of  1933,  this
Amendment has been signed below by the following  persons in the  capacities and
on the date indicated:

         Title and Signature                                Date

Principal Executive Officer:                )
                                            )
                                            )
/s/John F. Cogan, Jr.*                      )
John F. Cogan, Jr., Chief                   )
Executive Officer                           )
                                            )
                                            )
Principal Financial and                     )
Accounting Officer:                         )
                                            )
                                            )
/s/William H. Keough*                       )
William H. Keough, Treasurer                )
                                            )
                                            )
Trustees:                                   )
                                            )
/s/John F. Cogan, Jr.*                      )
John F. Cogan, Jr.                          )
                                            )
                                            )
/s/Richard H. Egdahl, M.D.*                 )
Richard H. Egdahl, M.D.                     )
                                            )
                                            )
/s/Margaret B. W. Graham*                   )
Margaret B. W. Graham                       )
<PAGE>



/s/Arthur J. Halleran, Jr*                  )
Arthur J. Halleran, Jr.                     )
                                            )
                                            )
/s/Stephen G. Kasnet*                       )
Stephen G. Kasnet                           )
                                            )
                                            )
/s/John W. Kendrick*                        )
John W. Kendrick                            )
                                            )
                                            )
/s/Marguerite A. Piret*                     )
Marguerite A. Piret                         )
                                            )
                                            )
/s/David D. Tripple*                        )
David D. Tripple                            )
                                            )
                                            )
/s/Stephen K. West*                         )
Stephen K. West                             )
                                            )
                                            )
/s/John Winthrop*                           )
John Winthrop                               )

- ---------


   
* By: /s/Joseph P. Barri                                April 21, 1995
      Joseph P. Barri
      Attorney-in-fact
    


<PAGE>


                                 Exhibit Index

   
Exhibit                                                            Page
Number   Document Title                                           Number

1.       Agreement and Declaration of Trust

2.       By-Laws.

5.1      Management  Contract  between  the  Registrant  and
         Pioneer Winthrop Advisers.

5.2      Investment  Subadvisory  Contract  by and among the
         Registrant,    Pioneer   Winthrop    Advisers   and
         Pioneering Management Corporation.

5.3      Investment  Subadvisory  Contract  by and among the
         Registrant,  Pioneer Winthrop Advisers and Winthrop
         Advisors Limited Partnership.

6.       Underwriting  Agreement  between the Registrant and
         Pioneer Funds Distributor, Inc.

8.       Custodian  Agreement  between  the  Registrant  and
         Brown Brothers Harriman & Co.

9.       Investment  Company Service  Agreement  between the
         Registrant  and  Pioneering  Services  Corporation.

10.      Opinion of Morris, Nichols, Arsht and Tunnell.

11.      Consent of Independent Public Accountants.

13.      Share Purchase Agreement.

15.      Distribution Plan.

17.      Financial Data Schedule.

19.      Powers of Attorney.
    


<PAGE>



                  PIONEER WINTHROP REAL ESTATE INVESTMENT FUND


                       AGREEMENT AND DECLARATION OF TRUST


         This  AGREEMENT  AND  DECLARATION  OF TRUST is made on this 10th day of
March, 1995 by the persons named on the signature page hereto (together with all
other persons from time to time duly elected,  qualified and serving as Trustees
in accordance with the provisions of Article II hereof, the "Trustees").

         NOW,  THEREFORE,  the  Trustees  declare  that all money  and  property
contributed  to the Trust  shall be held and  managed in trust  pursuant to this
Agreement and Declaration of Trust.


                                   ARTICLE I

                              NAME AND DEFINITIONS

Section 1. Name. The name of the Trust created by this Agreement and Declaration
of Trust is "Pioneer Winthrop Real Estate Investment Fund."

Section 2.  Definitions.  Unless otherwise provided or required by the context:

         (a)  "Administrator"  means the party,  other  than the  Trust,  to the
contract described in Article III, Section 3 hereof.

         (b)  "By-laws"  means the By-Laws of the Trust adopted by the Trustees,
as amended from time to time, which By-laws are expressly herein incorporated by
reference  as part of the  "governing  instrument"  within  the  meaning  of the
Delaware Act.

         (c) "Class" means the class of Shares of a Series established  pursuant
to Article V.

         (d) "Commission,"  "Interested Person" and "Principal Underwriter" have
the  meanings  provided  in the 1940 Act.  Except as such term may be  otherwise
defined by the Trustees in conjunction  with the  establishment of any Series of
Shares,  the term "vote of a majority of the Shares  outstanding and entitled to
vote" shall have the same meaning as is assigned to the term "vote of a majority
of the outstanding voting securities" in the 1940 Act.
<PAGE>

         (e)  "Covered   Person"  means  a  person  so  defined  in  Article IV,
Section 2.

         (f)  "Custodian"  means any Person other than the Trust who has custody
of any Trust Property as required by Section 17(f) of the 1940 Act, but does not
include a system  for the  central  handling  of  securities  described  in said
Section 17(f).

         (g)  "Declaration"  shall mean this Agreement and Declaration of Trust,
as amended or restated from time to time. Reference in this Declaration of Trust
to "Declaration,"  "hereof,"  "herein," and "hereunder" shall be deemed to refer
to this  Declaration  rather than exclusively to the article or section in which
such words appear.

         (h)  "Delaware  Act" means  Chapter 38 of Title 12 of the Delaware Code
entitled "Treatment of Delaware Business Trusts," as amended from time to time.

         (i)  "Distributor"  means  the  party,  other  than the  Trust,  to the
contract described in Article III, Section 1 hereof.

         (j)  "His"  shall  include  the  feminine  and  neuter,  as well as the
masculine, genders.

         (k) "Investment  Adviser" means the party, other than the Trust, to the
contract described in Article III, Section 2 hereof.

         (l) "Net Asset  Value"  means the net asset value of each Series of the
Trust, determined as provided in Article VI, Section 3.

         (m)   "Person"   means   and   includes   individuals,    corporations,
partnerships,  trusts, associations, joint ventures, estates and other entities,
and  governments  and  agencies and  political  subdivisions,  thereof,  whether
domestic or foreign.

         (n)  "Series"  means  a  series  of  Shares  established   pursuant  to
Article V.

         (o) "Shareholder" means a record owner of Outstanding Shares;

         (p)  "Shares"  means  the  equal  proportionate  transferable  units of
interest into which the  beneficial  interest of each Series or Class is divided
from time to time (including whole Shares and fractions of Shares). "Outstanding


                                       2
<PAGE>

Shares"  means Shares  shown in the books of the Trust or its transfer  agent as
then  issued  and  outstanding,  but does not  include  Shares  which  have been
repurchased  or redeemed by the Trust and which are held in the  treasury of the
Trust.

         (q)  "Transfer  Agent"  means  any  Person  other  than the  Trust  who
maintains  the  Shareholder   records  of  the  Trust,   such  as  the  list  of
Shareholders, the number of Shares credited to each account, and the like.

         (r)  "Trust"  means  Pioneer  Winthrop  Real  Estate   Investment  Fund
established  hereby,  and reference to the Trust, when applicable to one or more
Series, refers to that Series.

         (s)  "Trustees"  means the persons who have signed this  Declaration of
Trust,  so long as they shall  continue in office in  accordance  with the terms
hereof,  and all other  persons who may from time to time be duly  qualified and
serving  as  Trustees  in  accordance  with  Article II,  in all  cases in their
capacities as Trustees hereunder.

         (t) "Trust  Property"  means any and all  property,  real or  personal,
tangible or intangible, which is owned or held by or for the Trust or any Series
or the Trustees on behalf of the Trust or any Series.

         (u) The "1940 Act" means the Investment Company Act of 1940, as amended
from time to time.


                                   ARTICLE II

                                  THE TRUSTEES

         Section 1.  Management  of the Trust.  The  business and affairs of the
Trust shall be managed by or under the direction of the Trustees, and they shall
have all powers  necessary or desirable  to carry out that  responsibility.  The
Trustees may execute all  instruments and take all action they deem necessary or
desirable to promote the interests of the Trust. Any  determination  made by the
Trustees  in good  faith as to what is in the  interests  of the Trust  shall be
conclusive.  In construing the provisions of this  Declaration,  the presumption
shall be in favor of a grant of power to the Trustees.

         Section 2.   Powers.  The  Trustees  in  all  instances  shall  act  as
principals,  free of the control of the  Shareholders.  The Trustees  shall have


                                       3
<PAGE>

full  power and  authority  to take or  refrain  from  taking  any action and to
execute any  contracts  and  instruments  that they may  consider  necessary  or
desirable in the  management of the Trust.  The Trustees shall not in any way be
bound or  limited  by current  or future  laws or  customs  applicable  to trust
investments,  but shall have full power and  authority  to make any  investments
which they, in their sole discretion,  deem proper to accomplish the purposes of
the Trust. The Trustees may exercise all of their powers without recourse to any
court or other authority.  Subject to any applicable limitation herein or in the
By-Laws  or  resolutions  of the  Trust,  the  Trustees  shall  have  power  and
authority, without limitation:

         (a) To operate as and carry on the business of an  investment  company,
and exercise all the powers  necessary  and  appropriate  to the conduct of such
operations.

         (b)  To  invest  in,  hold  for  investment,   or  reinvest  in,  cash;
securities,   including  common,  preferred  and  preference  stocks;  warrants;
subscription  rights;  profit-sharing  interests or participations and all other
contracts for or evidence of equity interests;  bonds,  debentures,  bills, time
notes and all other  evidences of  indebtedness;  negotiable  or  non-negotiable
instruments;   government   securities,   including  securities  of  any  state,
municipality  or other political  subdivision  thereof,  or any  governmental or
quasi-governmental  agency  or  instrumentality;  and money  market  instruments
including  bank  certificates  of  deposit,  finance  paper,  commercial  paper,
bankers' acceptances and all kinds of repurchase agreements, of any corporation,
company,  trust,  association,  firm  or  other  business  organization  however
established,  and  of  any  country,  state,  municipality  or  other  political
subdivision,    or   any   governmental   or   quasi-governmental    agency   or
instrumentality;  or any other  security,  property or  instrument  in which the
Trust or any of its Series shall be authorized to invest.

         (c) To acquire (by purchase,  subscription  or otherwise),  to hold, to
trade in and deal in, to acquire any rights or options to  purchase or sell,  to
sell or  otherwise  dispose  of, to lend and to pledge any such  securities,  to
enter into repurchase agreements, reverse repurchase agreements, firm commitment
agreements and forward foreign currency exchange contracts, to purchase and sell
options on securities,  securities indices, currency and other financial assets,
futures  contracts and options on futures  contracts of all  descriptions and to
engage in all types of hedging and risk-management transactions.


                                       4
<PAGE>

         (d) To exercise  all rights,  powers and  privileges  of  ownership  or
interest  in all  securities  and  repurchase  agreements  included in the Trust
Property,  including  the right to vote thereon and  otherwise  act with respect
thereto and to do all acts for the  preservation,  protection,  improvement  and
enhancement in value of all such securities and repurchase agreements.

         (e) To acquire (by  purchase,  lease or  otherwise)  and to hold,  use,
maintain,  develop and dispose of (by sale or otherwise)  any property,  real or
personal, including cash or foreign currency, and any interest therein.

         (f) To  borrow  money  or  other  property  in the  name  of the  Trust
exclusively  for Trust  purposes  and in this  connection  issue  notes or other
evidence  of  indebtedness;  to secure  borrowings  by  mortgaging,  pledging or
otherwise subjecting as security the Trust Property; and to endorse,  guarantee,
or undertake the performance of any obligation or engagement of any other Person
and to lend Trust Property.

         (g) To aid by  further  investment  any  corporation,  company,  trust,
association  or firm,  any obligation of or interest in which is included in the
Trust  Property  or in the  affairs  of which the  Trustees  have any  direct or
indirect  interest;  to do all acts and things  designed to  protect,  preserve,
improve or enhance the value of such obligation or interest; and to guarantee or
become surety on any or all of the contracts,  stocks, bonds, notes,  debentures
and other obligations of any such corporation,  company,  trust,  association or
firm.

         (h) To adopt By-laws not inconsistent  with this Declaration  providing
for the conduct of the business of the Trust and to amend and repeal them to the
extent such right is not reserved to the Shareholders.

         (i) To elect and remove such  officers and appoint and  terminate  such
agents as they deem appropriate.

         (j) To employ as custodian  of any assets of the Trust,  subject to any
provisions  herein or in the  By-Laws,  one or more banks,  trust  companies  or
companies that are members of a national securities exchange,  or other entities
permitted by the Commission to serve as such.

         (k) To retain one or more  transfer  agents and  shareholder  servicing
agents, or both.


                                       5
<PAGE>

         (l) To  provide  for  the  distribution  of  Shares  either  through  a
Principal  Underwriter  as provided  herein or by the Trust itself,  or both, or
pursuant to a distribution plan of any kind.

         (m) To set record dates in the manner provided for herein or in the By-
laws.

         (n) To  delegate  such  authority  as they  consider  desirable  to any
officers  of the  Trust  and  to any  agent,  independent  contractor,  manager,
investment adviser, custodian or underwriter.

         (o) To hold any security or other property (i) in a form not indicating
any trust, whether in bearer, book entry, unregistered or other negotiable form,
or  (ii) either  in the  Trust's  or  Trustees'  own  name  or in the  name of a
custodian or a nominee or nominees, subject to safeguards according to the usual
practice of business trusts or investment companies.

         (p) To establish  separate and distinct Series with separately  defined
investment  objectives and policies and distinct investment  purposes,  and with
separate  Shares  representing  beneficial  interests  in  such  Series,  and to
establish separate Classes, all in accordance with the provisions of Article V.

         (q) To the full extent  permitted by  Section 3804 of the Delaware Act,
to allocate assets, liabilities and expenses of the Trust to a particular Series
and assets,  liabilities and expenses to a particular  Class or to apportion the
same  between  or  among  two or more  Series  or  Classes,  provided  that  any
liabilities  or  expenses  incurred  by a  particular  Series or Class  shall be
payable  solely out of the assets  belonging to that Series or Class as provided
for in Article V, Section 4.

         (r) To consent to or  participate  in any plan for the  reorganization,
consolidation  or merger of any corporation or concern whose securities are held
by the Trust; to consent to any contract, lease, mortgage,  purchase, or sale of
property by such corporation or concern;  and to pay calls or subscriptions with
respect to any security held in the Trust.

         (s) To compromise, arbitrate, or otherwise adjust claims in favor of or
against the Trust or any matter in  controversy  including,  but not limited to,
claims for taxes.

         (t) To make distributions of income,  capital gains, returns of capital
(if any) and  redemption  proceeds  to  Shareholders  in the manner  hereinafter
provided for.


                                       6
<PAGE>

         (u) To establish  committees for such purposes,  with such  membership,
and with such responsibilities as the Trustees may consider proper,  including a
committee consisting of fewer than all of the Trustees then in office, which may
act for and bind the  Trustees  and the Trust with  respect to the  institution,
prosecution, dismissal, settlement, review or investigation of any legal action,
suit or proceeding, pending or threatened.

         (v) To issue, sell, repurchase,  redeem, cancel, retire, acquire, hold,
resell, reissue, dispose of and otherwise deal in Shares; to establish terms and
conditions regarding the issuance, sale, repurchase,  redemption,  cancellation,
retirement,  acquisition, holding, resale, reissuance, disposition of or dealing
in Shares;  and,  subject to Articles V and VI, to apply to any such repurchase,
redemption,  retirement,  cancellation  or  acquisition  of Shares  any funds or
property of the Trust or of the  particular  Series  with  respect to which such
Shares are issued.

         (w) To invest part or all of the Trust  Property (or part or all of the
assets of any  Series),  or to dispose of part or all of the Trust  Property (or
part or all of the  assets  of any  Series)  and  invest  the  proceeds  of such
disposition,  in  securities  issued by one or more other  investment  companies
registered  under  the 1940 Act all  without  any  requirement  of  approval  by
Shareholders.  Any such other  investment  company may (but need not) be a trust
(formed  under the laws of the State of New York or of any other state) which is
classified as a partnership for federal income tax purposes.

         (x) To carry on any other business in connection  with or incidental to
any  of the  foregoing  powers,  to do  everything  necessary  or  desirable  to
accomplish  any purpose or to further any of the foregoing  powers,  and to take
every other action incidental to the foregoing business or purposes,  objects or
powers.

         (y) To sell or exchange any or all of the assets of the Trust,  subject
to Article IX, Section 4.

         (z) To enter into joint ventures,  partnerships and other  combinations
and associations.

         (aa) To join with other security holders in acting through a committee,
depositary,  voting trustee or otherwise,  and in that connection to deposit any
security  with, or transfer any security to, any such  committee,  depositary or
trustee,  and to delegate to them such power and authority  with relation to any
security (whether or not so deposited or transferred) as the Trustees shall deem


                                       7
<PAGE>

proper,  and to agree to pay,  and to pay,  such  portion  of the  expenses  and
compensation of such Committee, depositary or trustee as the Trustees shall deem
proper;

         (bb) To  purchase  and pay for  entirely  out of  Trust  Property  such
insurance as the Trustees may deem necessary or  appropriate  for the conduct of
the business,  including,  without  limitation,  insurance policies insuring the
assets of the Trust or payment of  distributions  and principal on its portfolio
investments,  and,  subject to applicable law and any  restrictions set forth in
the By-laws, insurance policies insuring the Shareholders,  Trustees,  officers,
employees, agents, investment advisers,  Principal Underwriters,  or independent
contractors of the Trust,  individually,  against all claims and  liabilities of
every nature arising by reason of holding Shares,  holding, being or having held
any such  office or  position,  or by reason of any action  alleged to have been
taken or  omitted  by any such  Person as  Trustee,  officer,  employee,  agent,
investment adviser, Principal underwriter, or independent contractor,  including
any action taken or omitted that may be  determined  to  constitute  negligence,
whether or not the Trust would have the power to indemnify  such Person  against
liability;

         (cc) To adopt, establish and carry out pension,  profit-sharing,  share
bonus,  share  purchase,  savings,  thrift and other  retirement,  incentive and
benefit plans and trusts, including the purchasing of life insurance and annuity
contracts as a means of providing such retirement and other benefits, for any or
all of the Trustees, officers, employees and agents of the Trust;

         (dd)     To enter into contracts of any kind and description;

         (ee) To interpret the investment policies,  practices or limitations of
any Series or Class; and

         (ff) To guarantee indebtedness and contractual obligations of others.

         The clauses  above shall be  construed  as objects and powers,  and the
enumeration of specific  powers shall not limit in any way the general powers of
the  Trustees.  Any action by one or more of the  Trustees in their  capacity as
such  hereunder  shall  be  deemed  an  action  on  behalf  of the  Trust or the
applicable Series, and not an action in an individual  capacity.  No one dealing
with the Trustees shall be under any  obligation to make any inquiry  concerning
the authority of the Trustees, or to see to the application of any payments made


                                       8
<PAGE>

or property  transferred to the Trustees or upon their order. In construing this
Declaration,  the  presumption  shall  be in  favor  of a grant  of power to the
Trustees.

         Section 3.  Certain  Transactions.  Except as  prohibited by applicable
law, the Trustees may, on behalf of the Trust,  buy any securities  from or sell
any securities to, or lend any assets of the Trust to, any Trustee or officer of
the Trust or any firm of which any such Trustee or officer is a member acting as
principal, or have any such dealings with any investment adviser, administrator,
distributor  or transfer  agent for the Trust or with any  Interested  Person of
such person. The Trust may employ any such person or entity in which such person
is an  Interested  Person,  as  broker,  legal  counsel,  registrar,  investment
adviser, administrator,  distributor, transfer agent, dividend disbursing agent,
custodian or in any other capacity upon customary terms.

         Section 4.  Initial  Trustees;  Election  and Number of  Trustees.  The
initial Trustees shall be the person  initially  signing this  Declaration.  The
number of Trustees (other than the initial Trustees) shall be fixed from time to
time by a majority of the Trustees;  provided,  that there shall be at least one
(1) Trustee and no more than  fifteen  (15).  The  Shareholders  shall elect the
Trustees (other than the initial Trustees) on such dates as the Trustees may fix
from time to time.

         Section 5.  Term of Office of Trustees.  Each Trustee shall hold office
for life or until his successor is elected or the Trust terminates;  except that
(a) any  Trustee may resign by delivering to the other  Trustees or to any Trust
officer a written  resignation  effective  upon such  delivery  or a later  date
specified  therein;  (b) any Trustee may be removed with or without cause at any
time by a written instrument signed by at least a majority of the then Trustees,
specifying  the effective  date of removal;  (c) any  Trustee who requests to be
retired,  or who is  declared  bankrupt  or has become  physically  or  mentally
incapacitated  or is  otherwise  unable to serve,  may be  retired  by a written
instrument signed by a majority of the other Trustees,  specifying the effective
date of  retirement;  and  (d) any  Trustee may be removed at any meeting of the
Shareholders by a vote of at least twoAthirds of the Outstanding Shares.

         Section 6. Vacancies; Appointment of Trustees. Whenever a vacancy shall
exist in the Board of Trustees,  regardless of the reason for such vacancy,  the
remaining  Trustees  shall  appoint any person as they  determine  in their sole
discretion to fill that vacancy,  consistent with the limitations under the 1940
Act. Such appointment shall be made by a written instrument signed by a majority


                                       9
<PAGE>

of the Trustees or by a resolution of the Trustees, duly adopted and recorded in
the records of the Trust, specifying the effective date of the appointment.  The
Trustees  may  appoint a new  Trustee as  provided  above in  anticipation  of a
vacancy expected to occur because of the retirement, resignation or removal of a
Trustee,  or an increase in number of Trustees,  provided that such  appointment
shall become effective only at or after the expected vacancy occurs.  As soon as
any such Trustee has accepted his appointment in writing, the trust estate shall
vest in the new Trustee,  together  with the  continuing  Trustees,  without any
further  act or  conveyance,  and he shall be  deemed a Trustee  hereunder.  The
Trustees'  power of  appointment  is subject to  Section 16(a)  of the 1940 Act.
Whenever a vacancy in the number of Trustees shall occur,  until such vacancy is
filled as provided in this  Article II,  the Trustees in office,  regardless  of
their  number,  shall have all the  powers  granted  to the  Trustees  and shall
discharge  all the duties  imposed  upon the  Trustees by the  Declaration.  The
death, declination to serve, resignation,  retirement,  removal or incapacity of
one or more Trustees, or all of them, shall not operate to annul the Trust or to
revoke any existing agency created  pursuant to the terms of this Declaration of
Trust.

         Section 7.  Temporary  Vacancy  or  Absence.  Whenever a vacancy in the
Board of  Trustees  shall  occur,  until such  vacancy  is filled,  or while any
Trustee is absent from his domicile  (unless that Trustee has made  arrangements
to be informed  about,  and to  participate  in, the affairs of the Trust during
such  absence),  or is  physically  or  mentally  incapacitated,  the  remaining
Trustees  shall have all the powers  hereunder and their  certificate as to such
vacancy,  absence, or incapacity shall be conclusive.  Any Trustee may, by power
of attorney,  delegate his powers as Trustee for a period not  exceeding six (6)
months at any one time to any other Trustee or Trustees.

         Section 8.  Chairman. The Trustees shall appoint one of their number to
be Chairman of the Board of Trustees. The Chairman shall preside at all meetings
of the Trustees,  shall be responsible for the execution of policies established
by the  Trustees  and the  administration  of the  Trust,  and may be the  chief
executive, financial and/or accounting officer of the Trust.

         Section 9.  Action by the Trustees.  The Trustees shall act by majority
vote at a meeting duly called at which a quorum is present,  including a meeting
held by  conference  telephone,  teleconference  or  other  electronic  media or
communication  equipment  by means of which  all  persons  participating  in the


                                       10
<PAGE>

meeting can communicate  with each other; or by written consent of a majority of
Trustees (or such greater number as may be required by applicable law) without a
meeting.  A majority of the Trustees  shall  constitute a quorum at any meeting.
Meetings of the Trustees may be called  orally or in writing by the President or
by any one of the Trustees.  Notice of the time, date and place of all Trustees'
meetings  shall be given to each Trustee as set forth in the By-Laws;  provided,
however,  that no notice is  required  if the  Trustees  provide  for regular or
stated meetings. Notice need not be given to any Trustee who attends the meeting
without  objecting to the lack of notice or who signs a waiver of notice  either
before or after the meeting.  The Trustees by majority  vote may delegate to any
Trustee or Trustees or committee authority to approve particular matters or take
particular  actions on behalf of the Trust. Any written consent or waiver may be
provided and  delivered to the Trust by  facsimile or other  similar  electronic
mechanism.

         Section 10.  Ownership  of Trust  Property.  The Trust  Property of the
Trust and of each Series shall be held separate and apart from any assets now or
hereafter held in any capacity  other than as Trustee  hereunder by the Trustees
or any successor Trustees. Legal title in and beneficial ownership of all of the
assets of the Trust  shall at all times be  considered  as vested in the  Trust,
except that the  Trustees may cause legal title in and  beneficial  ownership of
any Trust  Property to be held by, or in the name of one or more of the Trustees
acting for and on behalf of the  Trust,  or in the name of any person as nominee
acting for and on behalf of the Trust. No Shareholder  shall be deemed to have a
severable ownership in any individual asset of the Trust or of any Series or any
right of partition or possession  thereof,  but each Shareholder  shall have, as
provided in Article V,  a  proportionate  undivided  beneficial  interest in the
Trust or Series or Class  thereof  represented  by Shares.  The Shares  shall be
personal  property giving only the rights  specifically  set forth in this Trust
Instrument.  The Trust, or at the  determination  of the Trustees one or more of
the Trustees or a nominee acting for and on behalf of the Trust, shall be deemed
to hold legal title and beneficial  ownership of any income earned on securities
of the Trust  issued by any business  entities  formed,  organized,  or existing
under the laws of any  jurisdiction,  including the laws of any foreign country.
Upon the resignation or removal of a Trustee,  or his otherwise  ceasing to be a
Trustee,  he shall execute and deliver such documents as the remaining  Trustees
shall  require  for the  purpose  of  conveying  to the  Trust or the  remaining
Trustees  any  Trust  Property  held in the  name of the  resigning  or  removed
Trustee.  Upon the incapacity or death of any Trustee,  his legal representative


                                       11
<PAGE>

shall execute and deliver on his behalf such documents as the remaining Trustees
shall require as provided in the preceding sentence.

         Section 11.  Effect of Trustees  Not Serving.  The death,  resignation,
retirement,  removal,  incapacity  or  inability  or  refusal  to  serve  of the
Trustees,  or any one of them, shall not operate to annul the Trust or to revoke
any existing agency created pursuant to the terms of this Declaration.

         Section 12. Trustees, etc. as Shareholders. Subject to any restrictions
in the By-Laws,  any Trustee,  officer,  agent or independent  contractor of the
Trust may  acquire,  own and  dispose of Shares to the same  extent as any other
Shareholder;  the  Trustees may issue and sell Shares to and buy Shares from any
such person or any firm or company in which such person is  interested,  subject
only to any general limitations herein.

         Section 13. Series of Trustees. In connection with the establishment of
one or more Series or Classes,  the Trustees  establishing  such Series or Class
may appoint, to the extent permitted by the Delaware Act, separate Trustees with
respect to such Series or Classes (the "Series Trustees").  Series Trustees may,
but are not  required  to, serve as Trustees of the Trust or any other Series or
Class of the Trust.  The  Trustees  shall have,  to the  exclusion  of any other
Trustee of the Trust, all the powers and authorities of Trustees  hereunder with
respect  to such  Series or Class,  but shall  have no power or  authority  with
respect to any other Series or Class. Any provision of this Declaration relating
to election of Trustees by Shareholders only shall entitle the Shareholders of a
Series or Class for  which  Series  Trustees  have been  appointed  to vote with
respect to the  election of such Series  Trustees  and the  Shareholders  of any
other Series or Class shall not be entitled to  participate in such vote. In the
event that Series Trustees are appointed, the Trustees initially appointing such
Series Trustees shall,  without the approval of any  Outstanding  Shares,  amend
either  the   Declaration   or  the  By-laws  to  provide  for  the   respective
responsibilities  of the Trustees and the Series Trustees in circumstances where
an action of the Trustees or Series Trustees  affects all Series of the Trust or
two or more Series represented by different Trustees.


                                       12
<PAGE>


                                  ARTICLE III

                        CONTRACTS WITH SERVICE PROVIDERS

         Section 1. Underwriting  Contract. The Trustees may in their discretion
from time to time enter into an exclusive or non-exclusive distribution contract
or  contracts  providing  for the sale of the Shares  whereby the  Trustees  may
either  agree to sell the Shares to the other  party to the  contract or appoint
such other party as their sales agent for the Shares, and in either case on such
terms and  conditions,  if any, as may be  prescribed  in the By-laws,  and such
further terms and conditions as the Trustees may in their  discretion  determine
not inconsistent with the provisions of this Article III or of the By-laws;  and
such  contract may also provide for the  repurchase  of the Shares by such other
party as agent of the Trustees.

         Section 2. Advisory or Management  Contract.  The Trustees may in their
discretion  from time to time  enter  into one or more  investment  advisory  or
management  contracts or, if the Trustees  establish  multiple Series,  separate
investment  advisory or management  contracts with respect to one or more Series
whereby  the other party or parties to any such  contracts  shall  undertake  to
furnish   the   Trust   or  such   Series   management,   investment   advisory,
administration,  accounting,  legal,  statistical  and research  facilities  and
services,  promotional or marketing  activities,  and such other  facilities and
services, if any, as the Trustees shall from time to time consider desirable and
all upon such  terms and  conditions  as the  Trustees  may in their  discretion
determine.  Notwithstanding any provisions of the Declaration,  the Trustees may
authorize  the  Investment  Advisers or persons to whom the  Investment  Adviser
delegates  certain  or all of  their  duties,  or any of  them,  under  any such
contracts (subject to such general or specific  instructions as the Trustees may
from time to time  adopt) to effect  purchases,  sales,  loans or  exchanges  of
portfolio  securities  and  other  investments  of the  Trust on  behalf  of the
Trustees  or may  authorize  any  officer,  employee  or Trustee to effect  such
purchases,  sales,  loans  or  exchanges  pursuant  to  recommendations  of such
Investment  Advisers,  or any of them  (and all  without  further  action by the
Trustees).  Any such  purchases,  sales,  loans and exchanges shall be deemed to
have been authorized by all of the Trustees.

         Section  3.  Administration   Agreement.  The  Trustees  may  in  their
discretion from time to time enter into an  administration  agreement or, if the
Trustees establish multiple Series or Classes separate administration agreements
with respect to each Series or Class,  whereby the other party to such agreement


                                       13
<PAGE>

shall  undertake to manage the  business  affairs of the Trust or of a Series or
Class  thereof of the Trust and furnish the Trust or a Series or a Class thereof
with office  facilities,  and shall be  responsible  for the ordinary  clerical,
bookkeeping  and  recordkeeping  services at such office  facilities,  and other
facilities  and services,  if any, and all upon such terms and conditions as the
Trustees may in their discretion determine.

         Section 4. Service Agreement. The Trustees may in their discretion from
time to time enter into service agreements with respect to one or more Series or
Classes of Shares  whereby the other  parties to such  Service  Agreements  will
provide  administration and/or support services pursuant to administration plans
and service  plans,  and all upon such terms and  conditions  as the Trustees in
their discretion may determine.

         Section 5. Transfer  Agent.  The Trustees may in their  discretion from
time to time enter  into a transfer  agency  and  shareholder  service  contract
whereby the other party to such  contract  shall  undertake to furnish  transfer
agency and shareholder services to the Trust. The contract shall have such terms
and  conditions  as  the  Trustees  may  in  their   discretion   determine  not
inconsistent with the Declaration.  Such services may be provided by one or more
Persons.

         Section 6. Custodian.  The Trustees may appoint or otherwise engage one
or more banks or trust companies,  each having an aggregate capital, surplus and
undivided  profits  (as  shown in its last  published  report)  of at least  two
million dollars ($2,000,000), or any other entity satisfying the requirements of
the 1940 Act,  to serve as Custodian with authority as its agent, but subject to
such  restrictions,  limitations  and  other  requirements,  if  any,  as may be
contained  in the By-laws of the Trust.  The  Trustees  may also  authorize  the
Custodian to employ one or more sub-custodians, including such foreign banks and
securities depositories as meet the requirements of applicable provisions of the
1940 Act, and upon such terms and  conditions  as may be agreed upon between the
Custodian and such  sub-custodian,  to hold  securities  and other assets of the
Trust  and to  perform  the acts  and  services  of the  Custodian,  subject  to
applicable provisions of law and resolutions adopted by the Trustees.

         Section 7.  Affiliations of Trustees or Officers, Etc.  The fact that:


                                       14
<PAGE>

         (i) any of the  Shareholders,  Trustees or officers of the Trust or any
Series thereof is a shareholder,  director, officer, partner, trustee, employee,
manager, adviser or distributor of or for any partnership,  corporation,  trust,
association  or other  organization  or of or for any parent or affiliate of any
organization,  with which a contract of the character  described in this Article
III or for services as  Custodian,  Transfer  Agent or  disbursing  agent or for
related  services  may have  been or may  hereafter  be  made,  or that any such
organization,  or any parent or affiliate thereof, is a Shareholder of or has an
interest in the Trust, or that

         (ii)  any  partnership,   corporation,   trust,  association  or  other
organization with which a contract of the character  described in Sections 1, 2,
3 or 4 of this  Article III or for  services  as  Custodian,  Transfer  Agent or
disbursing  agent or for related services may have been or may hereafter be made
also has any one or more of such contracts with one or more other  partnerships,
corporations, trusts, associations or other organizations, or has other business
or  interests,  shall not affect the validity of any such contract or disqualify
any  Shareholder,  Trustee or officer of the Trust from voting upon or executing
the  same  or  create  any  liability  or  accountability  to the  Trust  or its
Shareholders.



                                       15
<PAGE>


                                   Article IV

           COMPENSATION, LIMITATION OF LIABILITY AND INDEMNIFICATION

         Section 1.  Compensation.  The  Trustees  as such shall be  entitled to
reasonable  compensation  from the  Trust,  and they may fix the  amount of such
compensation.  Nothing  herein  shall in any way prevent the  employment  of any
Trustee for advisory, management, legal, accounting, investment banking or other
services and payment for the same by the Trust.

         Section 2.  Limitation of Liability.  All persons  contracting  with or
having any claim against the Trust or a particular Series shall look only to the
assets of all Series or such  particular  Series for payment under such contract
or claim; and neither the Trustees nor, when acting in such capacity, any of the
Trust's officers, employees or agents, whether past, present or future, shall be
personally liable therefor.  Every written instrument or obligation on behalf of
the Trust or any Series shall contain a statement to the foregoing  effect,  but
the absence of such  statement  shall not operate to make any Trustee or officer
of the Trust liable thereunder. Provided they have exercised reasonable care and
have  acted  under the  reasonable  belief  that their  actions  are in the best
interest  of the Trust,  the  Trustees  and  officers  of the Trust shall not be
responsible  or liable for any act or omission or for neglect or  wrongdoing  of
them  or  any  officer,  agent,  employee,  investment  adviser  or  independent
contractor of the Trust,  but nothing  contained in this  Declaration  or in the
Delaware Act shall protect any Trustee or officer of the Trust against liability
to the Trust or to Shareholders to which he would otherwise be subject by reason
of willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of his office.

         Section  3.   Indemnification.   (a)Subject   to  the  exceptions  and
limitations contained in subSection (b) below:

               (i) every  person who is, or has been,  a Trustee or an  officer,
               employee  or agent of the Trust  (including  any  individual  who
               serves at its request as director,  officer,  partner, trustee or
               the like of another  organization in which it has any interest as
               a shareholder, creditor or otherwise) ("Covered Person") shall be
               indemnified by the Trust or the appropriate Series to the fullest
               extent  permitted  by  law  against  liability  and  against  all
               expenses  reasonably  incurred or paid by him in connection  with
               any  claim,  action,  suit or  proceeding  in  which  he  becomes


                                       16
<PAGE>

               involved as a party or otherwise by virtue of his being or having
               been a Covered Person and against amounts paid or incurred by him
               in the settlement thereof; and

               (ii) as used  herein,  the words  "claim,"  "action,"  "suit," or
               "proceeding"  shall  apply  to  all  claims,  actions,  suits  or
               proceedings (civil, criminal or other, including appeals), actual
               or threatened,  and the words  "liability"  and "expenses"  shall
               include,  without limitation,  attorneys' fees, costs, judgments,
               amounts  paid  in   settlement,   fines,   penalties   and  other
               liabilities.

         (b) No indemnification shall be provided hereunder to a Covered Person:

               (i) who shall  have been  adjudicated  by a court or body  before
               which the proceeding was brought (A) to be liable to the Trust or
               its  Shareholders  by reason of willful  misfeasance,  bad faith,
               gross negligence or reckless  disregard of the duties involved in
               the conduct of his office, or (B) not to have acted in good faith
               in the reasonable belief that his action was in the best interest
               of the Trust; or

               (ii) in the  event  of a  settlement,  unless  there  has  been a
               determination  that such Covered Person did not engage in willful
               misfeasance, bad faith, gross negligence or reckless disregard of
               the duties  involved  in the  conduct of his  office;  (A) by the
               court or other body approving the  settlement;  (B) by at least a
               majority of those Trustees who are neither  Interested Persons of
               the Trust nor are  parties to the  matter  based upon a review of
               readily   available  facts  (as  opposed  to  a  full  trial-type
               inquiry);  (C) by written  opinion of  independent  legal counsel
               based upon a review of readily  available  facts (as opposed to a
               full  trial-type  inquiry)  or (D) by a vote of a majority of the
               Outstanding  Shares  entitled to vote  (excluding any Outstanding
               Shares owned of record or beneficially by such individual).

         (c) The  rights  of  indemnification  herein  provided  may be  insured
against by policies  maintained by the Trust,  shall be severable,  shall not be
exclusive of or affect any other  rights to which any Covered  Person may now or


                                       17
<PAGE>

hereafter  be entitled,  and shall inure to the benefit of the heirs,  executors
and administrators of a Covered Person.

         (d) To the maximum  extent  permitted by  applicable  law,  expenses in
connection  with the  preparation  and  presentation  of a defense to any claim,
action,  suit or proceeding of the character described in subSection (a) of this
Section may be paid by the Trust or applicable Series from time to time prior to
final disposition thereof upon receipt of an undertaking by or on behalf of such
Covered  Person  that  such  amount  will be paid  over by him to the  Trust  or
applicable  Series if it is  ultimately  determined  that he is not  entitled to
indemnification  under this Section;  provided,  however,  that either  (i) such
Covered Person shall have provided  appropriate  security for such  undertaking,
(ii) the  Trust is  insured  against  losses  arising  out of any  such  advance
payments or  (iii) either a majority of the Trustees who are neither  Interested
Persons of the Trust nor parties to the matter,  or independent legal counsel in
a written  opinion,  shall  have  determined,  based  upon a review  of  readily
available facts (as opposed to a full  trial-type  inquiry) that there is reason
to  believe   that  such   Covered   Person  will  not  be   disqualified   from
indemnification under this Section.

         (e) Any repeal or modification of this Article IV by the  Shareholders,
or adoption or  modification  of any other  provision of the  Declaration or By-
laws  inconsistent  with this Article,  shall be prospective only, to the extent
that such repeal, or modification would, if applied  retrospectively,  adversely
affect any limitation on the liability of any Covered Person or  indemnification
available  to any  Covered  Person  with  respect to any act or  omission  which
occurred prior to such repeal, modification or adoption.

         Section 3.  Indemnification  of  Shareholders.  If any  Shareholder  or
former  Shareholder  of any Series  shall be held  personally  liable  solely by
reason of his being or having been a Shareholder  and not because of his acts or
omissions or for some other reason,  the  Shareholder or former  Shareholder (or
his heirs,  executors,  administrators or other legal  representatives or in the
case of any entity,  its general  successor) shall be entitled out of the assets
belonging to the  applicable  Series to be held  harmless  from and  indemnified
against all loss and expense arising from such  liability.  The Trust, on behalf
of the affected  Series,  shall,  upon request by such  Shareholder,  assume the
defense of any claim made against such  Shareholder for any act or obligation of
the Series and satisfy any judgment thereon from the assets of the Series.


                                       18
<PAGE>

         Section 4. No Bond Required of Trustees.  No Trustee shall be obligated
to give any bond or other  security  for the  performance  of any of his  duties
hereunder.

         Section 5. No Duty of Investigation;  Notice in Trust Instruments, Etc.
No purchaser,  lender,  transfer agent or other Person dealing with the Trustees
or any  officer,  employee  or agent of the Trust or a Series  thereof  shall be
bound to make any inquiry concerning the validity of any transaction  purporting
to be made by the  Trustees or by said  officer,  employee or agent or be liable
for the application of money or property paid, loaned, or delivered to or on the
order of the Trustees or of said officer,  employee or agent.  Every obligation,
contract,  instrument,  certificate,  Share,  other  security  of the Trust or a
Series thereof or undertaking,  and every other act or thing whatsoever executed
in  connection  with the  Trust  shall be  conclusively  presumed  to have  been
executed or done by the  executors  thereof  only in their  capacity as Trustees
under this Declaration or in their capacity as officers,  employees or agents of
the Trust or a Series thereof. Every written obligation,  contract,  instrument,
certificate,  Share,  other  security  of  the  Trust  or a  Series  thereof  or
undertaking  made or issued by the Trustees may recite that the same is executed
or made by them not  individually,  but as Trustees under the  Declaration,  and
that the  obligations of the Trust or a Series thereof under any such instrument
are not binding upon any of the Trustees or Shareholders individually,  but bind
only the Trust Property or the Trust Property of the applicable  Series, and may
contain any further recital which they may deem appropriate, but the omission of
such recital shall not operate to bind the Trustees  individually.  The Trustees
shall at all times  maintain  insurance for the protection of the Trust Property
or the Trust  Property of the applicable  Series,  its  Shareholders,  Trustees,
officers,  employees  and  agents in such  amount  as the  Trustees  shall  deem
adequate to cover  possible  tort  liability,  and such other  insurance  as the
Trustees in their sole judgment shall deem advisable.

         Section 6. Reliance on Experts, Etc. Each Trustee,  officer or employee
of the Trust or a Series thereof shall, in the performance of his duties, powers
and discretions  hereunder be fully and completely  justified and protected with
regard to any act or any failure to act  resulting  from  reliance in good faith
upon the books of  account or other  records  of the Trust or a Series  thereof,
upon an  opinion  of  counsel,  or upon  reports  made to the  Trust or a Series
thereof by any of its officers or employees or by the  Investment  Adviser,  the
Administrator,  the Distributor,  Transfer Agent, selected dealers, accountants,


                                       19
<PAGE>

appraisers or other experts or consultants  selected with reasonable care by the
Trustees, officers or employees of the Trust, regardless of whether such counsel
or expert may also be a Trustee.



                                   Article V

                            SERIES; CLASSES; SHARES

         Section 1. Establishment of Series or Class. The Trust shall consist of
one or more Series. The Trustees hereby establish a single Series which shall be
designated  Pioneer Winthrop Real Estate Investment Fund. Each additional Series
shall be  established  and is effective  upon the adoption of a resolution  of a
majority of the Trustees or any alternative  date specified in such  resolution.
The Trustees may designate the relative  rights and preferences of the Shares of
each Series. The Trustees may divide the Shares of any Series into Classes.  The
Shares of the existing  Series and each Class  thereof  herein  established  and
designated  and any Shares of any further  Series and Classes that may from time
to time be established  and designated by the Trustees shall be established  and
designated, and the variations in the relative rights and preferences as between
the different Series shall be fixed and determined,  by the Trustees;  provided,
that all Shares shall be identical  except for such variations as shall be fixed
and  determined   between  different  Series  or  Classes  by  the  Trustees  in
establishing and designating  such Class or Series.  All references to Shares in
this Declaration shall be deemed to be Shares of any or all Series or Classes as
the context may require.  The Trust shall maintain separate and distinct records
for each Series and hold and account for the assets thereof  separately from the
other assets of the Trust or of any other Series.  A Series may issue any number
of Shares or any Class thereof and need not issue Shares. Each Share of a Series
shall represent an equal  beneficial  interest in the net assets of such Series.
Each  holder  of  Shares of a Series or a Class  thereof  shall be  entitled  to
receive his pro rata share of all distributions made with respect to such Series
or Class.  Upon redemption of his Shares,  such Shareholder shall be paid solely
out of the funds and property of such Series.  The Trustees may adopt and change
the name of any Series or Class.

         Section 2.  Shares.  The  beneficial  interest  in the  Trust  shall be
divided into transferable  Shares of one or more separate and distinct Series or


                                       20
<PAGE>

Classes  established  by the  Trustees.  The number of Shares of each Series and
Class is  unlimited  and each  Share  shall  have no par value per Share or such
other amount as the Trustees may establish. All Shares issued hereunder shall be
fully paid and  nonassessable.  Shareholders  shall have no  preemptive or other
right to subscribe to any additional  Shares or other  securities  issued by the
Trust.  The  Trustees  shall  have  full  power  and  authority,  in their  sole
discretion  and without  obtaining  Shareholder  approval,  to issue original or
additional  Shares at such times and on such terms and  conditions  as they deem
appropriate;  to issue  fractional  Shares and Shares held in the  treasury;  to
establish  and to change in any manner Shares of any Series or Classes with such
preferences,  terms of conversion,  voting powers,  rights and privileges as the
Trustees may determine (but the Trustees may not change  Outstanding Shares in a
manner  materially  adverse to the  Shareholders  of such Shares);  to divide or
combine the Shares of any Series or Classes into a greater or lesser number;  to
classify or reclassify any unissued  Shares of any Series or Classes into one or
more  Series or Classes of Shares;  to abolish any one or more Series or Classes
of Shares; to issue Shares to acquire other assets (including assets subject to,
and in connection  with, the assumption of liabilities)  and businesses;  and to
take such other  action  with  respect to the  Shares as the  Trustees  may deem
desirable. Shares held in the treasury shall not confer any voting rights on the
Trustees  and shall not be  entitled  to any  dividends  or other  distributions
declared with respect to the Shares.

         Section 3.   Investment  in  the  Trust.   The  Trustees  shall  accept
investments  in any Series or Class from such  persons and on such terms as they
may from time to time authorize. At the Trustees' discretion,  such investments,
subject to  applicable  law, may be in the form of cash or  securities  in which
that  Series  is  authorized  to  invest,  valued  as  provided  in  Article VI,
Section 3.  Investments  in a Series  shall be  credited  to each  Shareholder's
account  in the form of full  Shares  at the Net  Asset  Value  per  Share  next
determined  after the investment is received or accepted as may be determined by
the  Trustees;   provided,  however,  that  the  Trustees  may,  in  their  sole
discretion,  (a) impose a sales charge upon  investments in any Series or Class,
(b) issue fractional Shares,  (c) determine the Net Asset Value per Share of the
initial capital  contribution or (d) authorize the issuance of Shares at a price
other than Net Asset Value to the extent  permitted by the 1940 Act or any rule,
order or  interpretation of the Commission  thereunder.  The Trustees shall have
the right to refuse to accept  investments in any Series at any time without any
cause or reason therefor whatsoever.


                                       21
<PAGE>

         Section 4. Assets and Liabilities of Series. All consideration received
by the Trust for the issue or sale of Shares of a  particular  Series,  together
with all assets in which such  consideration  is  invested  or  reinvested,  all
income, earnings,  profits, and proceeds thereof (including any proceeds derived
from the sale, exchange or liquidation of such assets, and any funds or payments
derived from any  reinvestment  of such  proceeds in whatever  form the same may
be), shall be held and accounted for  separately  from the assets of every other
Series and are  referred to as "assets  belonging  to" that  Series.  The assets
belonging to a Series shall belong only to that Series for all purposes,  and to
no other  Series,  subject only to the rights of  creditors of that Series.  Any
assets,  income,  earnings,  profits,  and proceeds thereof,  funds, or payments
which are not readily  identifiable as belonging to any particular  Series shall
be  allocated  by the  Trustees  between  and  among  one or more  Series as the
Trustees deem fair and equitable.  Each such allocation  shall be conclusive and
binding upon the  Shareholders of all Series for all purposes,  and such assets,
earnings,  income,  profits or funds, or payments and proceeds  thereof shall be
referred to as assets belonging to that Series. The assets belonging to a Series
shall be so  recorded  upon the  books of the  Trust,  and  shall be held by the
Trustees in trust for the benefit of the Shareholders of that Series. The assets
belonging to a Series shall be charged with the  liabilities  of that Series and
all expenses,  costs, charges and reserves  attributable to that Series,  except
that  liabilities and expenses  allocated  solely to a particular Class shall be
borne by that  Class.  Any  general  liabilities,  expenses,  costs,  charges or
reserves of the Trust which are not readily  identifiable  as  belonging  to any
particular  Series or Class  shall be  allocated  and  charged  by the  Trustees
between or among any one or more of the Series or Classes in such  manner as the
Trustees deem fair and equitable.  Each such allocation  shall be conclusive and
binding upon the Shareholders of all Series or Classes for all purposes.

         Without  limiting  the  foregoing,  but  subject  to the  right  of the
Trustees to allocate general liabilities,  expenses,  costs, charges or reserves
as herein provided, the debts,  liabilities,  obligations and expenses incurred,
contracted for or otherwise  existing with respect to a particular  Series shall
be  enforceable  against  the assets of such  Series  only,  and not against the
assets of any other Series. Notice of this contractual limitation on liabilities
among Series may, in the Trustees'  discretion,  be set forth in the certificate
of trust of the Trust  (whether  originally  or by  amendment) as filed or to be
filed in the Office of the Secretary of State of the State of Delaware  pursuant
to the Delaware  Act, and upon the giving of such notice in the  certificate  of


                                       22
<PAGE>

trust, the statutory  provisions of Section 3804 of the Delaware Act relating to
limitations  on  liabilities  among  Series  (and  the  statutory  effect  under
Section 3804  of setting  forth such notice in the  certificate  of trust) shall
become applicable to the Trust and each Series.  Any person extending credit to,
contracting  with or having  any claim  against  any Series may look only to the
assets of that  Series to  satisfy  or enforce  any debt,  with  respect to that
Series. No Shareholder or former Shareholder of any Series shall have a claim on
or any right to any assets allocated or belonging to any other Series.

         Section 5. Ownership and Transfer of Shares. The Trust or a transfer or
similar agent for the Trust shall  maintain a register  containing the names and
addresses of the  Shareholders  of each Series and Class thereof,  the number of
Shares of each Series and Class held by such  Shareholders,  and a record of all
Share  transfers.  The  register  shall  be  conclusive  as to the  identity  of
Shareholders  of record and the number of Shares held by them from time to time.
The Trustees may authorize the issuance of certificates  representing Shares and
adopt rules  governing  their use.  The Trustees  may make rules  governing  the
transfer  of  Shares,  whether or not  represented  by  certificates.  Except as
otherwise provided by the Trustees, Shares shall be transferable on the books of
the Trust only by the record holder thereof or by his duly authorized agent upon
delivery  to the  Trustees  or the  Trust's  transfer  agent of a duly  executed
instrument of transfer, together with a Share certificate if one is outstanding,
and such evidence or the  genuineness of each such  execution and  authorization
and of  such  other  matters  as may be  required  by the  Trustees.  Upon  such
delivery,  and subject to any further requirements  specified by the Trustees or
contained  in the By-laws,  the  transfer  shall be recorded on the books of the
Trust.  Until a transfer is so  recorded,  the  Shareholder  of record of Shares
shall be deemed to be the holder of such Shares for all purposes  hereunder  and
neither the Trustees nor the Trust,  nor any transfer  agent or registrar or any
officer,  employee  or agent of the Trust,  shall be affected by any notice of a
proposed transfer.

         Section 6.  Status of  Shares;  Limitation  of  Shareholder  Liability.
Shares  shall be deemed to be personal  property  giving  Shareholders  only the
rights  provided in this  Declaration.  Every  Shareholder,  by virtue of having
acquired a Share,  shall be held  expressly to have assented to and agreed to be
bound by the terms of this  Declaration  and to have become a party  hereto.  No
Shareholder shall be personally liable for the debts,  liabilities,  obligations
and expenses incurred by, contracted for, or otherwise existing with respect to,


                                       23
<PAGE>

the Trust or any Series.  The death,  incapacity,  dissolution,  termination  or
bankruptcy of a Shareholder  during the existence of the Trust shall not operate
to terminate the Trust, nor entitle the  representative  of any such Shareholder
to an accounting  or to take any action in court or elsewhere  against the Trust
or the  Trustees,  but entitles such  representative  only to the rights of such
Shareholder  under  this  Trust.  Ownership  of  Shares  shall not  entitle  the
Shareholder to any title in or to the whole or any part of the Trust Property or
right to call for a partition or division of the same or for an accounting,  nor
shall the ownership of Shares  constitute the Shareholders as partners.  Neither
the  Trust  nor the  Trustees  shall  have any  power  to bind  any  Shareholder
personally or to demand payment from any Shareholder for anything, other than as
agreed  by the  Shareholder.  Shareholders  shall  have the same  limitation  of
personal  liability as is extended to shareholders of a private  corporation for
profit  incorporated in the State of Delaware.  Every written  obligation of the
Trust or any Series shall contain a statement to the effect that such obligation
may only be enforced against the assets of the appropriate Series or all Series;
however,  the  omission  of such  statement  shall not operate to bind or create
personal liability for any Shareholder or Trustee.


                                   Article VI

                         DISTRIBUTIONS AND REDEMPTIONS

         Section 1.  Distributions.  The  Trustees or a committee of one or more
Trustees  and one or more  officers  may  declare  and pay  dividends  and other
distributions,  including  dividends on Shares of a particular  Series and other
distributions  from  the  assets  belonging  to  that  Series.  No  dividend  or
distribution,   including,   without  limitation,  any  distribution  paid  upon
termination  of the Trust or of any Series (or Class)  with  respect to, nor any
redemption  or  repurchase  of, the  Shares of any  Series  (or Class)  shall be
effected  by the Trust  other  than from the  assets  held with  respect to such
Series,  nor shall any Shareholder of any particular  Series  otherwise have any
right or claim  against the assets held with respect to any other Series  except
to the extent that such  Shareholder  has such a right or claim  hereunder  as a
Shareholder  of such other Series.  The Trustees  shall have full  discretion to
determine which items shall be treated as income and which items as capital; and
each such  determination and allocation shall be conclusive and binding upon the
Shareholders.  The amount and payment of  dividends or  distributions  and their
form,  whether  they  are in cash,  Shares  or other  Trust  Property,  shall be


                                       24
<PAGE>

determined  by the  Trustees.  Dividends  and  other  distributions  may be paid
pursuant to a standing  resolution  adopted  once or more often as the  Trustees
determine.  All  dividends  and other  distributions  on Shares of a  particular
Series  shall be  distributed  pro rata to the  Shareholders  of that  Series in
proportion  to the number of Shares of that  Series they held on the record date
established for such payment, except that such dividends and distributions shall
appropriately  reflect expenses  allocated to a particular Class of such Series.
The  Trustees may adopt and offer to  Shareholders  such  dividend  reinvestment
plans,  cash  dividend  payout  plans  or  similar  plans as the  Trustees  deem
appropriate.

         Section 2.  Redemptions.  Each  Shareholder  of a Series shall have the
right at such times as may be permitted by the Trustees to require the Series to
redeem all or any part of his Shares at a  redemption  price per Share  equal to
the Net Asset Value per Share at such time as the Trustees shall have prescribed
by  resolution,  or, to the  extent  permitted  by the  1940 Act,  at such other
redemption  price  and  at  such  times  as  the  Trustees  shall  prescribe  by
resolution.  In the absence of such  resolution,  the redemption price per Share
shall be the Net Asset Value next  determined  after  receipt by the Series of a
request for redemption in proper form less such charges as are determined by the
Trustees and  described in the Trust's  Registration  Statement  for that Series
under the Securities Act of 1933. The Trustees may specify  conditions,  prices,
and places of redemption,  may specify binding  requirements for the proper form
or forms of requests for  redemption  and may specify the amount of any deferred
sales charge to be withheld from redemption proceeds.  Payment of the redemption
price may be wholly or partly in securities or other assets at the value of such
securities or assets used in such determination of Net Asset Value, or may be in
cash.  Upon  redemption,  Shares may be reissued from time to time. The Trustees
may require  Shareholders to redeem Shares for any reason under terms set by the
Trustees,  including, but not limited to, the failure of a Shareholder to supply
a taxpayer  identification  number if  required to do so, or to have the minimum
investment  required,  or to pay when due for the  purchase of Shares  issued to
him. To the extent permitted by law, the Trustees may retain the proceeds of any
redemption of Shares  required by them for payment of amounts due and owing by a
Shareholder to the Trust or any Series or Class or any  governmental  authority.
Notwithstanding  the  foregoing,  the  Trustees  may  postpone  payment  of  the
redemption  price and may suspend the right of the  Shareholders  to require any
Series  or Class to  redeem  Shares  during  any  period of time when and to the
extent permissible under the 1940 Act.


                                       25
<PAGE>

         Section 3.  Determination  of Net Asset Value. The Trustees shall cause
the Net Asset Value of Shares of each Series or Class to be determined from time
to time in a  manner  consistent  with  applicable  laws  and  regulations.  The
Trustees may delegate the power and duty to determine  Net Asset Value per Share
to one or more  Trustees or officers of the Trust or to a custodian,  depository
or other agent  appointed for such purpose.  The Net Asset Value of Shares shall
be  determined  separately  for each  Series  or  Class at such  times as may be
prescribed by the Trustees or, in the absence of action by the  Trustees,  as of
the close of regular  trading on the New York Stock Exchange on each day for all
or part of which such Exchange is open for unrestricted trading.

         Section 4.  Suspension  of Right of  Redemption.  If, as referred to in
Section 2 of this Article, the Trustees postpone payment of the redemption price
and suspend the right of  Shareholders  to redeem their Shares,  such suspension
shall take effect at the time the Trustees shall specify, but not later than the
close  of  business  on the  business  day next  following  the  declaration  of
suspension. Thereafter Shareholders shall have no right of redemption or payment
until the Trustees declare the end of the suspension. If the right of redemption
is suspended,  a Shareholder  may either  withdraw his request for redemption or
receive payment based on the Net Asset Value per Share next determined after the
suspension terminates.

         Section 5.  Repurchase by Agreement.  The Trust may  repurchase  Shares
directly,  or through  the  Distributor  or  another  agent  designated  for the
purpose,  by agreement  with the owner  thereof at a price not exceeding the Net
Asset Value per Share determined as of the time when the purchase or contract of
purchase  is made or the Net  Asset  Value  as of any  time  which  may be later
determined,  provided payment is not made for the Shares prior to the time as of
which such Net Asset Value is determined.

                                  Article VII

                    SHAREHOLDERS' VOTING POWERS AND MEETINGS

         Section 1.  Voting Powers.  The  Shareholders  shall have power to vote
only with  respect to (a) the  election of Trustees as provided in  Section 2 of
this  Article;   (b) the   removal  of  Trustees  as  provided  in   Article II,
Section 3(d);  (c) any investment advisory or management contract as provided in
Article VIII,  Section 1;  (d) any  termination  of the  Trust  as  provided  in
Article IX,  Section 4;  (e) the amendment of this Declaration to the extent and
as provided in Article X, Section 8; and (f) such additional matters relating to


                                       26
<PAGE>

the Trust as may be required or  authorized  by law,  this  Declaration,  or the
By-Laws or any registration of the Trust with the Commission or any State, or as
the Trustees may consider desirable.

         On any matter submitted to a vote of the Shareholders, all Shares shall
be voted by individual  Series or Class,  except  (a) when  required by the 1940
Act,  Shares shall be voted in the  aggregate  and not by  individual  Series or
Class,  and (b) when the Trustees have  determined  that the matter  affects the
interests of more than one Series or Class,  then the  Shareholders  of all such
Series or Classes  shall be  entitled  to vote  thereon.  As  determined  by the
Trustees without the vote or consent of shareholders, on any matter submitted to
a vote of Shareholders either (i) each whole Share shall be entitled to one vote
as to any matter on which it is entitled to vote and each fractional Share shall
be entitled to a proportionate  fractional vote or (ii) each dollar of net asset
value  (number of Shares owned times net asset value per share of such Series or
Class, as applicable)  shall be entitled to one vote on any matter on which such
Shares are entitled to vote and each fractional  dollar amount shall be entitled
to a proportionate  fractional vote.  Without limiting the power of the Trustees
in any way to designate otherwise in accordance with the preceding sentence, the
Trustees hereby establish that each whole Share shall be entitled to one vote as
to any matter on which it is entitled to vote and each fractional Share shall be
entitled to a proportionate fractional vote. There shall be no cumulative voting
in the election of Trustees. Shares may be voted in person or by proxy or in any
manner provided for in the By-Laws.  The By-Laws may provide that proxies may be
given by any electronic or telecommunications device or in any other manner, but
if a proposal by anyone  other than the  officers or Trustees is  submitted to a
vote of the  Shareholders of any Series or Class, or if there is a proxy contest
or proxy  solicitation or proposal in opposition to any proposal by the officers
or  Trustees,  Shares  may be voted only in person or by  written  proxy.  Until
Shares of a Series are issued,  as to that Series the  Trustees may exercise all
rights of Shareholders and may take any action required or permitted to be taken
by  Shareholders  by  law,  this   Declaration  or  the  By-Laws.   Meetings  of
Shareholders  shall be called and notice thereof and record dates therefor shall
be given and set as provided in the By-laws.

         Section 2.  Quorum;  Required Vote. OneAthird of the Outstanding Shares
of each Series or Class,  or oneAthird of the  Outstanding  Shares of the Trust,
entitled to vote in person or by proxy shall be a quorum for the  transaction of


                                       27
<PAGE>

business at a  Shareholders'  meeting with  respect to such Series or Class,  or
with  respect to the entire  Trust,  respectively.  Any lesser  number  shall be
sufficient for adjournments.  Any adjourned  session of a Shareholders'  meeting
may be held within a  reasonable  time  without  further  notice.  Except when a
larger vote is required by law, this  Declaration or the By-Laws,  a majority of
the Shares voting at a Shareholders'  meeting in person or by proxy shall decide
any matters to be voted upon with respect to the entire Trust and a plurality of
such  Shares  shall  elect a  Trustee;  provided,  that if this  Declaration  or
applicable  law  permits  or  requires  that  Shares  be voted on any  matter by
individual  Series or  Classes,  then a majority of the Shares of that Series or
Class (or, if required by law, a majority of the Shares outstanding and entitled
to vote of that Series or Class) voting at a Shareholders'  meeting in person or
by proxy on the matter shall decide that matter  insofar as that Series or Class
is concerned. Shareholders may act as to the Trust or any Series or Class by the
written  consent  of a  majority  (or such other  amount as may be  required  by
applicable  law) of the  Outstanding  Shares of the  Trust or of such  Series or
Class, as the case may be.

         Section  3.  Record  Dates.   For  the  purpose  of   determining   the
Shareholders of any Series (or Class) who are entitled to receive payment of any
dividend or of any other distribution,  the Trustees may from time to time fix a
date,  which shall be before the date for the  payment of such  dividend or such
other  payment,  as the record date for  determining  the  Shareholders  of such
Series (or Class)  having the right to receive  such  dividend or  distribution.
Without fixing a record date, the Trustees may for  distribution  purposes close
the  register or transfer  books for one or more  Series (or  Classes)  any time
prior  to the  payment  of a  distribution.  Nothing  in this  Section  shall be
construed as  precluding  the Trustees from setting  different  record dates for
different Series (or Classes).

         Section 4.  Additional  Provisions.  The By-laws  may  include  further
provisions for Shareholders' votes and meetings and related matters.

                                  Article VIII

                        EXPENSES OF THE TRUST AND SERIES

         Section 1.  Payment of  Expenses  by the Trust.  Subject to  Article V,
Section 4,  the Trust or a particular  Series shall pay, or shall  reimburse the
Trustees from the assets belonging to all Series or the particular  Series,  for
their  expenses (or the  expenses of a Class of such Series) and  disbursements,


                                       28
<PAGE>

including,  but not limited to,  interest  charges,  taxes,  brokerage  fees and
commissions;  expenses of issue,  repurchase and  redemption of Shares;  certain
insurance  premiums;  applicable  fees,  interest  charges and expenses of third
parties,  including the Trust's investment advisers,  managers,  administrators,
distributors, custodians, transfer agents and fund accountants; fees of pricing,
interest,  dividend, credit and other reporting services; costs of membership in
trade associations;  telecommunications  expenses;  funds transmission expenses;
auditing,  legal and  compliance  expenses;  costs of forming  the Trust and its
Series and  maintaining  its  existence;  costs of  preparing  and  printing the
prospectuses of the Trust and each Series,  statements of additional information
and  Shareholder  reports  and  delivering  them to  Shareholders;  expenses  of
meetings of Shareholders and proxy solicitations therefor;  costs of maintaining
books and accounts;  costs of  reproduction,  stationery and supplies;  fees and
expenses of the Trustees; compensation of the Trust's officers and employees and
costs of other personnel  performing services for the Trust or any Series; costs
of Trustee meetings; Commission registration fees and related expenses; state or
foreign  securities laws registration  fees and related  expenses;  and for such
nonA recurring items as may arise,  including litigation to which the Trust or a
Series (or a Trustee or officer of the Trust acting as such) is a party, and for
all losses and  liabilities  by them incurred in  administering  the Trust.  The
Trustees shall have a lien on the assets belonging to the appropriate Series, or
in the case of an expense  allocable  to more than one Series,  on the assets of
each such Series, prior to any rights or interests of the Shareholders  thereto,
for  the  reimbursement  to them of such  expenses,  disbursements,  losses  and
liabilities.

         Section 2. Payment of Expenses by Shareholders. The Trustees shall have
the power, as frequently as they may determine,  to cause each  Shareholder,  or
each  Shareholder  of any  particular  Series,  to pay  directly,  in advance or
arrears, for charges of the Trust's custodian or transfer, shareholder servicing
or similar agent, an amount fixed from time to time by the Trustees,  by setting
off such charges due from such  Shareholder  from declared but unpaid  dividends
owed such Shareholder  and/or by reducing the number of Shares in the account of
such  Shareholder  by  that  number  of  full  and/or  fractional  Shares  which
represents the outstanding amount of such charges due from such Shareholder.


                                       29
<PAGE>

                                   Article IX

                                 MISCELLANEOUS

         Section 1. Trust Not a Partnership.  This  Declaration  creates a trust
and not a partnership. No Trustee shall have any power to bind personally either
the Trust's officers or any Shareholder.

         Section 2. Trustee Action. The exercise by the Trustees of their powers
and  discretion  hereunder  in good  faith and with  reasonable  care  under the
circumstances then prevailing shall be binding upon everyone interested. Subject
to the provisions of Article IV,  the Trustees shall not be liable for errors of
judgment or mistakes of fact or law.

         Section 3.  Record Dates.  The Trustees may fix in advance a date up to
ninety (90) days before the date of any Shareholders'  meeting,  or the date for
the  payment  of any  dividends  or  other  distributions,  or the  date for the
allotment of rights,  or the date when any change or  conversion  or exchange of
Shares  shall go into  effect  as a record  date  for the  determination  of the
Shareholders  entitled  to  notice  of,  and to vote at,  any such  meeting,  or
entitled  to  receive  payment of such  dividend  or other  distribution,  or to
receive any such  allotment of rights,  or to exercise such rights in respect of
any such change, conversion or exchange of Shares.

         Section  4.  Termination  of the  Trust.  (a)  This  Trust  shall  have
perpetual existence. Subject to the vote of a majority of the Shares outstanding
and entitled to vote of the Trust or of each Series to be affected, the Trustees
may

               (i) sell and convey all or substantially all of the assets of all
               Series or any  affected  Series to  another  Series or to another
               entity which is an openAend  investment company as defined in the
               1940 Act, or is a series  thereof,  for  adequate  consideration,
               which may include the assumption of all outstanding  obligations,
               taxes and other liabilities,  accrued or contingent, of the Trust
               or any  affected  Series,  and  which  may  include  shares of or
               interests in such Series, entity, or series thereof; or

               (ii) at any time sell and convert into money all or substantially
               all of the assets of all Series or any affected Series.


                                       30
<PAGE>

Upon making reasonable provision for the payment of all known liabilities of all
Series or any  affected  Series in either  (i) or (ii),  by such  assumption  or
otherwise,  the Trustees shall  distribute the remaining  proceeds or assets (as
the case may be) ratably  among the  Shareholders  of all Series or any affected
Series;  however,  the  payment to any  particular  Class of such  Series may be
reduced by any fees, expenses or charges allocated to that Class.

         (b)  The   Trustees   may  take  any  of  the  actions   specified   in
subSection (a)  (i) and (ii) above  without  obtaining the vote of a majority of
the  Shares  Outstanding  and  entitled  to vote of the Trust or any Series if a
majority of the Trustees determines that the continuation of the Trust or Series
is not in the best  interests  of the Trust,  such Series,  or their  respective
Shareholders as a result of factors or events adversely affecting the ability of
the  Trust  or  such  Series  to  conduct  its  business  and  operations  in an
economically viable manner. Such factors and events may include the inability of
the Trust or a Series to maintain its assets at an appropriate size,  changes in
laws or regulations governing the Trust or the Series or affecting assets of the
type in which the Trust or Series  invests,  or economic  developments or trends
having a significant  adverse  impact on the business or operations of the Trust
or such Series.

         (c) Upon completion of the  distribution  of the remaining  proceeds or
assets pursuant to subSection (a),  the Trust or affected Series shall terminate
and the  Trustees  and the  Trust  shall be  discharged  of any and all  further
liabilities and duties  hereunder with respect thereto and the right,  title and
interest  of  all  parties  therein  shall  be  canceled  and  discharged.  Upon
termination  of the Trust,  following  completion of winding up of its business,
the  Trustees  shall  cause  a  certificate  of   cancellation  of  the  Trust's
certificate  of trust to be filed in  accordance  with the Delaware  Act,  which
certificate of cancellation may be signed by any one Trustee.

         Section 5. Reorganization. (a) Notwithstanding anything else herein, to
change the Trust's  form or place of  organization  the  Trustees  may,  without
Shareholder  approval  unless  such  approval is  required  by  applicable  law,
(i) cause the Trust to merge or  consolidate  with or into one or more entities,
if the surviving or resulting entity is the Trust or another openAend management
investment company under the 1940 Act, or a series thereof, that will succeed to
or assume the Trust's  registration under the 1940 Act, (ii) cause the Shares to
be  exchanged  under or pursuant  to any state or federal  statute to the extent
permitted  by law, or  (iii) cause  the Trust to  incorporate  under the laws of


                                       31
<PAGE>

Delaware  or  any  other  U.S.   jurisdiction.   Any   agreement  of  merger  or
consolidation  or  certificate of merger may be signed by a majority of Trustees
and facsimile signatures conveyed by electronic or telecommunication means shall
be valid.

         (b) Pursuant   to  and   in   accordance   with   the   provisions   of
Section 3815(f)  of the Delaware  Act, an  agreement of merger or  consolidation
approved  by the  Trustees  in  accordance  with this  Section 5  may effect any
amendment to the Declaration or effect the adoption of a new trust instrument of
the  Trust  if it  is  the  surviving  or  resulting  trust  in  the  merger  or
consolidation.

         (c) The Trustees may create one or more business trusts to which all or
any part of the  assets,  liabilities,  profits  or  losses  of the Trust or any
Series or Class thereof may be transferred and may provide for the conversion of
Shares in the Trust or any Series or Class thereof into beneficial  interests in
any such newly created trust or trusts or any series or classes thereof.

         Section 6.  Declaration  of  Trust.  The  original  or a copy  of  this
Declaration  of Trust  and of each  amendment  hereto  or  Declaration  of Trust
supplemental  shall be kept at the office of the Trust where it may be inspected
by any Shareholder. Anyone dealing with the Trust may rely on a certificate by a
Trustee or an officer of the Trust as to the  authenticity of the Declaration of
Trust or any such  amendments or supplements and as to any matters in connection
with the Trust.  The  masculine  gender  herein  shall  include the feminine and
neuter genders.  Headings  herein are for convenience  only and shall not affect
the construction of this Declaration of Trust.  This Declaration of Trust may be
executed  in any  number  of  counterparts,  each of which  shall be  deemed  an
original.

         Section 7.  Applicable  Law.  This  Declaration  and the Trust  created
hereunder  are  governed by and  construed  and  administered  according  to the
Delaware  Act and  the  applicable  laws of the  State  of  Delaware;  provided,
however,  that there shall not be applicable to the Trust,  the Trustees or this
Declaration  of Trust  (a) the  provisions  of  Section 3540  of Title 12 of the
Delaware  Code, or (b) any  provisions of the laws  (statutory or common) of the
State of Delaware  (other than the  Delaware  Act)  pertaining  to trusts  which
relate to or  regulate  (i) the  filing with any court or  governmental  body or
agency  of  trustee   accounts  or   schedules  of  trustee  fees  and  charges,
(ii) affirmative  requirements to post bonds for trustees,  officers,  agents or
employees  of  a  trust,  (iii) the  necessity  for  obtaining  court  or  other


                                       32
<PAGE>

governmental approval concerning the acquisition, holding or disposition of real
or personal  property,  (iv) fees or other sums  payable to trustees,  officers,
agents or employees of a trust,  (v) the allocation of receipts and expenditures
to income or principal,  (vi) restrictions  or  limitations  on the  permissible
nature, amount or concentration of trust investments or requirements relating to
the titling,  storage or other manner of holding of trust  assets,  or (vii) the
establishment of fiduciary or other standards of responsibilities or limitations
on the acts or powers of trustees,  which are inconsistent  with the limitations
or liabilities or authorities and powers of the Trustees set forth or referenced
in this  Declaration.  The Trust shall be of the type commonly called a Delaware
business  trust,  and,  without  limiting the provisions  hereof,  the Trust may
exercise  all  powers  which  are  ordinarily  exercised  by such a trust  under
Delaware law. The Trust  specifically  reserves the right to exercise any of the
powers or  privileges  afforded  to trusts or actions  that may be engaged in by
trusts under the Delaware Act, and the absence of a specific reference herein to
any such  power,  privilege  or action  shall  not imply  that the Trust may not
exercise such power or privilege or take such actions.

         Section 8.  Amendments. The Trustees may, without any Shareholder vote,
amend or  otherwise  supplement  this  Declaration  by  making an  amendment,  a
Declaration  of Trust  supplemental  hereto or an  amended  and  restated  trust
instrument;  provided,  that  Shareholders  shall  have the right to vote on any
amendment  (a) which would affect the voting rights of  Shareholders  granted in
Article VII,  Section l,  (b) to this Section 8,  (c) required to be approved by
Shareholders by law or by the Trust's  registration  statement(s) filed with the
Commission,  and (d) submitted to them by the Trustees in their discretion.  Any
amendment  submitted to Shareholders  which the Trustees  determine would affect
the  Shareholders of any Series shall be authorized by vote of the  Shareholders
of such  Series and no vote shall be required  of  Shareholders  of a Series not
affected.  Notwithstanding  anything  else herein,  any  amendment to Article IV
which would have the effect of reducing  the  indemnification  and other  rights
provided thereby to Trustees, officers, employees, and agents of the Trust or to
Shareholders  or  former  Shareholders,  and any  repeal  or  amendment  of this
sentence shall each require the affirmative vote of the holders of twoAthirds of
the Outstanding Shares of the Trust entitled to vote thereon.

         Section 9.  Derivative  Actions.  In addition to the  requirements  set
forth in Section 3816 of the Delaware Act, a Shareholder  may bring a derivative


                                       33
<PAGE>

action on behalf of the Trust only if the following conditions are met:

         (a) Shareholders  eligible to bring such  derivative  action  under the
Delaware Act who hold at least 10% of the  Outstanding  Shares of the Trust,  or
10% of the  Outstanding  Shares  of the  Series  or Class to which  such  action
relates, shall join in the request for the Trustees to commence such action; and

         (b) the  Trustees  must be  afforded  a  reasonable  amount  of time to
consider such  shareholder  request and to investigate  the basis of such claim.
The  Trustees  shall  be  entitled  to  retain  counsel  or  other  advisers  in
considering  the merits of the request and shall require an  undertaking  by the
Shareholders  making such request to reimburse  the Trust for the expense of any
such advisers in the event that the Trustees determine not to bring such action.

         Section 10.  Fiscal  Year.  The fiscal year of the Trust shall end on a
specified  date as set forth in the By-Laws.  The Trustees may change the fiscal
year of the Trust without Shareholder approval.

         Section 11.  Severability.  The  provisions  of  this  Declaration  are
severable.  If the  Trustees  determine,  with the advice of  counsel,  that any
provision hereof conflicts with the 1940 Act, the regulated  investment  company
provisions  of the  Internal  Revenue  Code or with  other  applicable  laws and
regulations, the conflicting provision shall be deemed never to have constituted
a part of this Declaration; provided, however, that such determination shall not
affect any of the remaining  provisions of this Declaration or render invalid or
improper  any  action  taken  or  omitted  prior to such  determination.  If any
provision  hereof shall be held invalid or  unenforceable  in any  jurisdiction,
such invalidity or unenforceability  shall attach only to such provision only in
such jurisdiction and shall not affect any other provision of this Declaration.


                                       34
<PAGE>



         IN WITNESS WHEREOF, the undersigned have executed this instrument as of
the date first written above.



John F. Cogan, Jr.,                         Richard H. Egdahl, M.D.,
  as Trustee and not individually             as Trustee and not individually
975 Memorial Drive, #802                    333 Commonwealth Avenue
Cambridge, Massachusetts 02138              Boston, Massachusetts 02115


- -----------------------------------         ----------------------------------
Margaret B.W. Graham                        Arthur J. Halleran, Jr.
  as Trustee and not individually             as Trustee and not individually
The Keep                                    Winthrop Financial
P. O. Box 110                               One International Place
Little Deer Isle, Maine 04650               Boston, Massachusetts 02110


- -----------------------------------         ----------------------------------
Stephen G. Kasnet                           John W. Kendrick
  as Trustee and not individually             as Trustee and not individually
Winthrop Financial                          6363 Waterway Drive
One International Place                     Falls Church, Virginia  22044
Boston, Massachusetts 02110


- -----------------------------------         ----------------------------------
Marguerite A. Piret                         David D. Tripple
  as Trustee and not individually             as Trustee and not individually
162 Washington Street                       6 Woodbine Road
Belmont, Massachusetts 02178                Belmont, Massachusetts 02178



- -----------------------------------         ----------------------------------
Stephen K. West                             John Winthrop
  as Trustee and not individually             as Trustee and not individually
42 Old Wood Road                            9 Ladson Street
Bernardsville, New Jersey 07924             Charleston, South Carolina 29401


                                       35


                                    BY-LAWS

                                       OF

                  PIONEER WINTHROP REAL ESTATE INVESTMENT FUND

                                   ARTICLE I

                                  DEFINITIONS


         All  capitalized  terms have the respective  meanings given them in the
Agreement and  Declaration of Trust of Pioneer  Winthrop Real Estate  Investment
Fund dated April 18, 1995, as amended or restated from time to time.


                                   ARTICLE II

                                    OFFICES

         Section  1.  Principal  Office.  Until  changed  by the  Trustees,  the
principal office of the Trust shall be in Boston, Massachusetts.

         Section  2.  Other  Offices.  The Trust may have  offices in such other
places  without as well as within the State of Delaware as the Trustees may from
time to time determine.

         Section  3.  Registered  Office  and  Registered  Agent.  The  Board of
Trustees shall establish a registered  office in the State of Delaware and shall
appoint as the Trust's  registered  agent for service of process in the State of
Delaware  an  individual  resident  of  the  State  of  Delaware  or a  Delaware
corporation  or a corporation  authorized  to transact  business in the State of
Delaware;  in each case the business office of such registered agent for service
of process shall be identical with the registered Delaware office of the Trust.

<PAGE>

                                  ARTICLE III

                                  SHAREHOLDERS

         Section 1.  Meetings.  Meetings of the  Shareholders  of the Trust or a
Series or Class thereof shall be held as provided in the Declaration of Trust at
such  place  within or  without  the State of  Delaware  as the  Trustees  shall
designate.  The holders of one-third of the Outstanding Shares of the Trust or a
Series or Class thereof present in person or by proxy and entitled to vote shall
constitute a quorum at any meeting of the  Shareholders of the Trust or a Series
or Class thereof.

         Section  2.  Notice  of  Meetings.   Notice  of  all  meetings  of  the
Shareholders,  stating the time,  place and  purposes of the  meeting,  shall be
given  by the  Trustees  by mail or  telegraphic  or  electronic  means  to each
Shareholder  at his address as recorded on the  register of the Trust  mailed at
least (10) days and not more than ninety (90) days before the meeting, provided,
however,  that notice of a meeting  need not be given to a  Shareholder  to whom
such notice need not be given under the proxy rules of the Commission  under the
1940 Act and the Securities Exchange Act of 1934, as amended.  Only the business
stated in the notice of the meeting shall be  considered  at such  meeting.  Any
adjourned  meeting may be held as adjourned  without further  notice.  No notice
need be given to any  Shareholder  who shall have  failed to inform the Trust of
his current  address or if a written waiver of notice,  executed before or after
the meeting by the Shareholder or his attorney  thereunto  authorized,  is filed
with the records of the meeting.

         Section 3. Record Date for Meetings and Other Purposes. For the purpose
of determining the Shareholders who are entitled to notice of and to vote at any
meeting, or to participate in any distribution,  or for the purpose of any other
action,  the Trustees  may from time to time close the  transfer  books for such
period,  not  exceeding  thirty (30) days,  as the  Trustees may  determine;  or
without  closing the  transfer  books the  Trustees may fix a date not more than
ninety  (90)  days  prior  to  the  date  of  any  meeting  of  Shareholders  or
distribution  or other  action  as a record  date for the  determination  of the
persons to be treated as  Shareholders  of record for such purposes,  except for
dividend payments which shall be governed by the Declaration of Trust.

         Section  4.  Proxies.  At any  meeting of  Shareholders,  any holder of
Shares entitled to vote thereat may vote by proxy,  provided that no proxy shall
be voted at any  meeting  unless  it shall  have  been  placed  on file with the


                                       2
<PAGE>

Secretary, or with such other officer or agent of the Trust as the Secretary may
direct,  for verification prior to the time at which such vote shall be taken. A
proxy shall be deemed  signed if the  shareholder's  name is placed on the proxy
(whether by manual signature, typewriting, telegraphic transmission,  facsimile,
other  electronic  means or otherwise) by the  shareholder or the  shareholder's
attorney-in-fact.  Proxies may be given by any  electronic or  telecommunication
device except as otherwise provided in the Declaration of Trust.  Proxies may be
solicited in the name of one or more  Trustees or one or more of the officers of
the Trust.  Only  Shareholders  of record shall be entitled to vote.  Each whole
share  shall be entitled to one vote as to any matter on which it is entitled by
the  Declaration of Trust to vote and  fractional  shares shall be entitled to a
proportionate  fractional  vote.  When any  Share  is held  jointly  by  several
persons,  any one of them  may  vote at any  meeting  in  person  or by proxy in
respect  of such  Share,  but if more than one of them  shall be present at such
meeting in person or by proxy, and such joint owners or their proxies so present
disagree  as to any vote to be cast,  such vote shall not be received in respect
of  such  Share.  A  proxy  purporting  to be  executed  by or  on  behalf  of a
Shareholder shall be deemed valid unless challenged at or prior to its exercise,
and the burden of proving invalidity shall rest on the challenger. If the holder
of any such  share is a minor  or a person  of  unsound  mind,  and  subject  to
guardianship  or the legal  control of any other person as regards the charge or
management  of such  Share,  he may vote by his  guardian  or such other  person
appointed  or having  such  control,  and such vote may be given in person or by
proxy.

         Section  5.  Abstentions  and  Broker  Non-Votes.   Outstanding  Shares
represented in person or by proxy (including Shares which abstain or do not vote
with respect to one or more of any proposals presented for Shareholder approval)
will be counted  for  purposes of  determining  whether a quorum is present at a
meeting.  Abstentions will be treated as Shares that are present and entitled to
vote for  purposes  of  determining  the number of Shares  that are  present and
entitled  to vote  with  respect  to any  particular  proposal,  but will not be
counted  as a vote in favor of such  proposal.  If a broker or  nominee  holding
Shares  in  "street  name"  indicates  on  the  proxy  that  it  does  not  have
discretionary  authority to vote as to a particular proposal,  those Shares will
not be considered as present and entitled to vote with respect to such proposal.


                                       3
<PAGE>

         Section 6.  Inspection  of  Records.  The records of the Trust shall be
open  to  inspection  by  Shareholders  to  the  same  extent  as  is  permitted
shareholders of a Delaware business corporation.

         Section 7. Action  without  Meeting.  Any action  which may be taken by
Shareholders may be taken without a meeting if a majority of Outstanding  Shares
entitled  to vote on the matter (or such larger  proportion  thereof as shall be
required by law)  consent to the action in writing and the written  consents are
filed with the records of the meetings of  Shareholders.  Such consents shall be
treated for all purposes as a vote taken at a meeting of Shareholders.


                                   ARTICLE IV

                                    TRUSTEES

         Section  1.  Meetings  of the  Trustees.  The  Trustees  may  in  their
discretion  provide for regular or stated  meetings of the  Trustees.  Notice of
regular or stated  meetings  need not be given.  Meetings of the Trustees  other
than regular or stated  meetings shall be held whenever called by the President,
the Chairman or by any one of the Trustees,  at the time being in office. Notice
of the time and place of each  meeting  other than  regular  or stated  meetings
shall be given by the  Secretary or an Assistant  Secretary or by the officer or
Trustee  calling the  meeting  and shall be mailed to each  Trustee at least two
days  before  the  meeting,  or shall be given by  telephone,  cable,  wireless,
facsimile or other electronic mechanism to each Trustee at his business address,
or personally delivered to him at least one day before the meeting.  Such notice
may, however, be waived by any Trustee. Notice of a meeting need not be given to
any Trustee if a written  waiver of notice,  executed by him before or after the
meeting, is filed with the records of the meeting, or to any Trustee who attends
the meeting without  protesting prior thereto or at its commencement the lack of
notice to him. A notice or waiver of notice  need not specify the purpose of any
meeting.  The  Trustees may meet by means of a telephone  conference  circuit or
similar communications  equipment by means of which all persons participating in
the meeting can hear each other at the same time and participation by such means
shall be deemed to have been held at a place  designated  by the Trustees at the
meeting.  Participation  in a  telephone  conference  meeting  shall  constitute
presence in person at such meeting. Any action required or permitted to be taken


                                       4
<PAGE>

at any meeting of the Trustees may be taken by the Trustees without a meeting if
a majority  of the  Trustees  consent to the action in writing  and the  written
consents are filed with the records of the  Trustees'  meetings.  Such  consents
shall be treated as a vote for all purposes.

         Section 2.  Quorum and Manner of  Acting.  A majority  of the  Trustees
shall be present in person at any regular or special  meeting of the Trustees in
order to constitute a quorum for the transaction of business at such meeting and
(except as otherwise required by law, the Declaration of Trust or these By-laws)
the act of a majority of the Trustees  present at any such  meeting,  at which a
quorum is present, shall be the act of the Trustees. In the absence of a quorum,
a majority of the  Trustees  present  may adjourn the meeting  from time to time
until a quorum  shall be present.  Notice of an  adjourned  meeting  need not be
given.


                                   ARTICLE V

                                   COMMITTEES

         Section 1.  Executive and Other  Committees.  The Trustees by vote of a
majority  of all the  Trustees  may elect  from  their own  number an  Executive
Committee  to consist of not less than three (3)  members to hold  office at the
pleasure of the Trustees,  which shall have the power to conduct the current and
ordinary business of the Trust while the Trustees are not in session,  including
the purchase and sale of  securities  and the  designation  of  securities to be
delivered upon redemption of Shares of the Trust or a Series  thereof,  and such
other powers of the Trustees as the Trustees may delegate to them,  from time to
time,  except  those  powers  which by law,  the  Declaration  of Trust or these
By-laws they are prohibited  from  delegating.  The Trustees may also elect from
their own number other  Committees from time to time; the number  composing such
Committees,  the powers conferred upon the same (subject to the same limitations
as with respect to the Executive  Committee)  and the term of membership on such
Committees  to be  determined  by the  Trustees.  The Trustees  may  designate a
chairman of any such Committee. In the absence of such designation the Committee
may elect its own Chairman.

         Section 2.  Meetings,  Quorum and Manner of Acting.  The  Trustees  may
(1) provide  for stated  meetings of any  Committee,  (2) specify  the manner of
calling and notice required for special  meetings of any Committee,  (3) specify
the number of members of a  Committee  required to  constitute  a quorum and the
number of members of a Committee required to exercise specified powers delegated
to such Committee,  (4) authorize the making of decisions to exercise  specified


                                       5
<PAGE>

powers by written  assent of the  requisite  number of  members  of a  Committee
without a meeting, and (5) authorize the members of a Committee to meet by means
of a telephone conference circuit.

         The Executive  Committee shall keep regular minutes of its meetings and
records of decisions  taken without a meeting and cause them to be recorded in a
book designated for that purpose and kept in the office of the Trust.


                                   ARTICLE VI

                                    OFFICERS

         Section 1.  General  Provisions.  The  officers of the Trust shall be a
President,  a Treasurer  and a Secretary,  who shall be elected by the Trustees.
The Trustees may elect or appoint such other  officers or agents as the business
of the Trust may require,  including  one or more Vice  Presidents,  one or more
Assistant  Secretaries,  and one or more Assistant Treasurers.  The Trustees may
delegate  to any  officer  or  committee  the power to appoint  any  subordinate
officers or agents.

         Section  2.  Term of Office  and  Qualifications.  Except as  otherwise
provided by law, the Declaration of Trust or these By-laws,  the President,  the
Treasurer,  the  Secretary  and any other  officer shall each hold office at the
pleasure of the Board of Trustees  or until his  successor  shall have been duly
elected and qualified. The Secretary and the Treasurer may be the same person. A
Vice  President and the  Treasurer or a Vice  President and the Secretary may be
the same person,  but the offices of Vice  President,  Secretary  and  Treasurer
shall not be held by the same person.  The President shall hold no other office.
Except as above  provided,  any two offices may be held by the same person.  Any
officer may be but none need be a Trustee or Shareholder.

         Section 3. Removal. The Trustees,  at any regular or special meeting of
the  Trustees,  may remove any  officer  with or without  cause,  by a vote of a
majority of the Trustees  then in office.  Any officer or agent  appointed by an
officer or  committee  may be removed with or without  cause by such  appointing
officer or committee.

         Section 4. Powers and Duties of the  Chairman.  The  Trustees  may, but
need not,  appoint  from among their  number a Chairman.  When  present he shall
preside at the meetings of the  Shareholders  and of the  Trustees.  He may call


                                       6
<PAGE>

meetings  of the  Trustees  and of any  committee  thereof  whenever he deems it
necessary.  He shall be an executive  officer of the Trust and shall have,  with
the President,  general supervision over the business and policies of the Trust,
subject to the limitations imposed upon the President,  as provided in Section 5
of this Article VI.

         Section 5. Powers and Duties of the  President.  The President may call
meetings of the Trustees and of any Committee thereof when he deems it necessary
and shall preside at all meetings of the Shareholders. Subject to the control of
the Trustees and to the control of any Committees of the Trustees,  within their
respective spheres, as provided by the Trustees,  he shall at all times exercise
a general supervision and direction over the affairs of the Trust. He shall have
the power to employ  attorneys  and counsel for the Trust or any Series or Class
thereof and to employ such subordinate officers, agents, clerks and employees as
he may find  necessary  to transact  the  business of the Trust or any Series or
Class  thereof.  He shall also have the power to grant,  issue,  execute or sign
such powers of attorney,  proxies or other documents as may be deemed  advisable
or necessary in furtherance of the interests of the Trust or any Series thereof.
The President shall have such other powers and duties,  as from time to time may
be conferred upon or assigned to him by the Trustees.

         Section  6.  Powers and Duties of Vice  Presidents.  In the  absence or
disability of the  President,  the Vice  President or, if there be more than one
Vice President, any Vice President designated by the Trustees, shall perform all
the duties and may exercise any of the powers of the  President,  subject to the
control of the Trustees.  Each Vice President shall perform such other duties as
may be assigned to him from time to time by the Trustees and the President.

         Section 7. Powers and Duties of the Treasurer.  The Treasurer  shall be
the principal  financial and accounting  officer of the Trust.  He shall deliver
all funds of the Trust or any  Series or Class  thereof  which may come into his
hands to such Custodian as the Trustees may employ.  He shall render a statement
of condition of the finances of the Trust or any Series or Class  thereof to the
Trustees as often as they shall require the same and he shall in general perform
all the duties  incident to the office of a Treasurer  and such other  duties as
from time to time may be assigned to him by the Trustees.  The  Treasurer  shall


                                       7
<PAGE>

give a bond for the faithful  discharge  of his duties,  if required so to do by
the Trustees, in such sum and with such surety or sureties as the Trustees shall
require.

         Section 8. Powers and Duties of the Secretary. The Secretary shall keep
the minutes of all meetings of the Trustees  and of the  Shareholders  in proper
books provided for that purpose; he shall have custody of the seal of the Trust;
he shall have charge of the Share transfer  books,  lists and records unless the
same are in the charge of a transfer  agent.  He shall  attend to the giving and
serving of all notices by the Trust in accordance  with the  provisions of these
By-laws  and as  required  by law;  and  subject to these  By-laws,  he shall in
general  perform all duties  incident to the office of Secretary  and such other
duties as from time to time may be assigned to him by the Trustees.

         Section 9. Powers and Duties of Assistant  Officers.  In the absence or
disability  of the  Treasurer,  any officer  designated  by the  Trustees  shall
perform all the duties,  and may exercise any of the powers,  of the  Treasurer.
Each  officer  shall  perform  such  other  duties  as from  time to time may be
assigned  to him  by the  Trustees.  Each  officer  performing  the  duties  and
exercising  the powers of the  Treasurer,  if any, and any Assistant  Treasurer,
shall give a bond for the faithful discharge of his duties, if required so to do
by the  Trustees,  in such sum and with such surety or sureties as the  Trustees
shall require.

         Section 10. Powers and Duties of Assistant Secretaries.  In the absence
or  disability  of the  Secretary,  any  Assistant  Secretary  designated by the
Trustees  shall perform all the duties,  and may exercise any of the powers,  of
the Secretary.  Each Assistant Secretary shall perform such other duties as from
time to time may be assigned to him by the Trustees.

         Section 11.  Compensation  of Officers  and Trustees and Members of the
Advisory  Board.  Subject to any  applicable  provisions of the  Declaration  of
Trust,  the compensation of the officers and Trustees and members of an advisory
board  shall be  fixed  from  time to time by the  Trustees  or,  in the case of
officers,  by any  Committee or officer upon whom such power may be conferred by
the Trustees.  No officer shall be prevented from receiving such compensation as
such officer by reason of the fact that he is also a Trustee.


                                       8
<PAGE>


                                  ARTICLE VII

                                  FISCAL YEAR

         The fiscal year of the Trust shall begin on the first day of January in
each year and  shall end on the last day of  December  in each  year,  provided,
however,  that the Trustees  may from time to time change the fiscal  year.  The
taxable year of each Series of the Trust shall be as  determined by the Trustees
from time to time.


                                  ARTICLE VIII

                                      SEAL

         The  Trustees  may adopt a seal  which  shall be in such form and shall
have such inscription thereon as the Trustees may from time to time prescribe.


                                   ARTICLE IX

                       SUFFICIENCY AND WAIVERS OF NOTICE

         Whenever  any  notice  whatever  is  required  to be given by law,  the
Declaration  of Trust or these By-laws,  a waiver thereof in writing,  signed by
the person or persons entitled to said notice,  whether before or after the time
stated therein,  shall be deemed equivalent thereto. A notice shall be deemed to
have  been  sent  by  mail,  telegraph,  cable,  wireless,  facsimile  or  other
electronic means for the purposes of these By-laws when it has been delivered to
a representative  of any company holding itself out as capable of sending notice
by such means with instructions that it be so sent.


                                       9
<PAGE>


                                   ARTICLE X

                                   AMENDMENTS

         These By-laws, or any of them, may be altered,  amended or repealed, or
new By-laws may be adopted by (a)yvote of a majority of the  Outstanding  Shares
voting in person or by proxy at a meeting of  Shareholders  and entitled to vote
or (b)yby  the  Trustees,  provided,  however,  that no By-law  may be  amended,
adopted or  repealed  by the  Trustees  if such  amendment,  adoption  or repeal
requires,  pursuant to law, the Declaration of Trust or these By-laws, a vote of
the Shareholders.


                                 END OF BY-LAWS




                                       10


                              MANAGEMENT CONTRACT


         THIS  AGREEMENT  dated  this 28th day of April,  1995  between  Pioneer
Winthrop Real Estate  Investment Fund, a Delaware  business trust (the "Trust"),
and  Pioneer  Winthrop  Advisers,  a  Massachusetts  general  partnership,  (the
"Manager").

                              W I T N E S S E T H

         WHEREAS,   the  Trust  is  registered  as  an  open-end,   diversified,
management  investment  company  under the  Investment  Company Act of 1940,  as
amended  (the  "1940  Act"),  and has filed  with the  Securities  and  Exchange
Commission  (the  "Commission")  a  registration  statement  (the  "Registration
Statement")  for the purpose of registering its shares for public offering under
the Securities Act of 1933, as amended,

         WHEREAS,   the  Trust  currently  issues  a  single  series  of  shares
representing interests in one portfolio (the "Portfolio"),

         WHEREAS,  the parties  hereto deem it  mutually  advantageous  that the
Manager  should be engaged,  subject to the  supervision of the Trust's Board of
Trustees and officers, to manage the Portfolio,

         NOW,  THEREFORE,  in consideration of the mutual covenants and benefits
set forth herein, the Trust and the Manager do hereby agree as follows:

         1. (a) The Manager will regularly provide the Portfolio with investment
research,  advice and  supervision  and will furnish  continuously an investment
program for the Portfolio consistent with the investment objectives and policies
of the Portfolio.  The Manager will determine from time to time what  securities
shall be purchased for the Portfolio,  what securities  shall be held or sold by
the  Portfolio  and  what  portion  of the  Portfolio's  assets  shall  be  held
uninvested as cash, subject always to the provisions of the Trust's  Declaration
of Trust,  By-Laws and its registration  statements under the 1940 Act and under
the  Securities  Act of 1933  covering  the  Trust's  shares,  as filed with the
Securities and Exchange Commission,  and to the investment objectives,  policies
and  restrictions  of the  Portfolio,  as each of the same shall be from time to
time in effect, and subject,  further,  to such policies and instructions as the
Board of  Trustees  of the Trust may from time to time  establish.  To carry out
<PAGE>

such  determinations,  the Manager will exercise full discretion and act for the
Portfolio  in the same  manner  and with the same  force and effect as the Trust
itself might or could do with respect to purchases, sales or other transactions,
as well as with  respect to all other  things  necessary  or  incidental  to the
furtherance or conduct of such purchases, sales or other transactions.

            (b) The  Manager  will,  to the extent  reasonably  required  in the
conduct of the business of the Portfolio and upon the Trust's  request,  furnish
to the Portfolio research, statistical and advisory reports upon the industries,
businesses,  corporations or securities as to which such requests shall be made,
whether  or not the  Portfolio  shall at the time  have any  investment  in such
industries,  businesses,  corporations  or securities.  The Manager will use its
best efforts in the preparation of such reports and will endeavor to consult the
persons and sources believed by it to have information available with respect to
such industries, businesses, corporations or entities.

            (c) The Manager will  maintain all books and records with respect to
the Portfolio's securities transactions required by sub-paragraphsy(b)(5),  (6),
(9) and (10) and  paragraph  (f) of  Ruley31a-1  under the 1940 Act (other  than
those records being  maintained by the custodian or transfer agent  appointed by
the Trust with  respect to the  Portfolio)  and  preserve  such  records for the
periods prescribed therefor by Rule 31a-2 of the 1940 Act. The Manager will also
provide to the Board of Trustees such periodic and special  reports as the Board
may reasonably request.

         2. The Manager  recognizes  that the Trust may from time to time create
additional  portfolios  of the Trust,  that this  agreement  relates only to the
management of the assets of the single existing Portfolio of the Trust, and that
the  management of the assets of any  additional  portfolio of the Trust will be
subject to one or more separate investment management agreements.

         3. (a) Except as otherwise  provided  herein,  the Manager,  at its own
expense,  shall  furnish to the Trust office space in the offices of the Manager
or in such  other  place  as may be  agreed  upon  from  time to  time,  and all
necessary  office  facilities,  equipment and personnel for managing the affairs
and investments with respect to the Portfolio,  and shall arrange, if desired by
the Trust,  for members of the  Manager's  organization  to serve as officers or
agents of the Trust.

            (b) The  Manager  shall pay  directly  or  reimburse  the Trust for:
(i) the  compensation  (if any) of the  Trustees  who are  affiliated  with,  or
interested  persons of, the Manager and all  officers of the Trust as such;  and
(ii) all  expenses  not  hereinafter  specifically  assumed  by the Trust or the
Portfolio where such expenses are incurred by the Manager or by the Trust or the
Portfolio  in  connection  with  the  management  of the  affairs  of,  and  the
investment and reinvestment of the assets of, the Portfolio.


                                       2
<PAGE>

                  (c) The Trust  shall  assume  and shall pay:  (i) charges  and
expenses  for fund  accounting,  pricing  and  appraisal  services  and  related
overhead,  including,  to the extent such services are performed by personnel of
the  Manager  or its  affiliates,  office  space and  facilities  and  personnel
compensation,  training and benefits; (ii) the charges and expenses of auditors;
(iii) the  charges and expenses of any custodian,  transfer  agent,  plan agent,
dividend  disbursing agent and registrar  appointed by the Trust with respect to
the  Portfolio;   (iv) brokers'  commissions,  and  issue  and  transfer  taxes,
chargeable to the Trust in connection with securities  transactions to which the
Trust is a party;  (v) insurance  premiums,  interest charges, dues and fees for
membership in trade associations and all taxes and corporate fees payable by the
Trust to federal, state or other governmental  agencies;  (vi) fees and expenses
involved in registering  and maintaining  registrations  of the Trust and/or its
shares with the  Commission,  state or blue sky securities  agencies and foreign
countries,   including  the  preparation  of  Prospectuses   and  Statements  of
Additional  Information  for filing with the Commission;  (vii) all  expenses of
shareholders' and Trustees' meetings and of preparing, printing and distributing
prospectuses,  notices,  proxy statements and all reports to shareholders and to
governmental  agencies;  (viii) charges  and  expenses  of legal  counsel to the
Trust;  (ix)  distribution  fees paid by the Trust in accordance with Rule 12b-1
promulgated  by the  Commission  pursuant to the 1940 Act;  (x)ycompensation  of
those Trustees of the Trust who are not affiliated with or interested persons of
the Manager,  the Trust (other than as  Trustees),  The Pioneer  Group,  Inc. or
Pioneer Funds  Distributor,  Inc.; (xi) the cost of preparing and printing share
certificates; (xii) interest on borrowed money, if any; and (xii) organizational
expenses of the Trust or Portfolio.

         4.  It  is  understood   that  the  Manager  may  employ  one  or  more
sub-investment advisers (each a "Subadviser") under written agreements with each
such Subadviser,  provided that any such agreement is first approved by the vote
of a majority of the Trustees,  including a majority of the Trustees who are not
"interested  persons"  (as the term  "interested  person" is defined in the 1940
Act) of the Trust, the Manager or any such Subadviser,  at a meeting of Trustees
called for the purpose of voting on such  approval  and by a vote of a "majority
of the  outstanding  voting  securities"  (as  defined  in the 1940  Act) of the
Portfolio. The authorization given to the Manager in Sections 1 and 7 hereof may
be delegated by it under any such agreement to any of the Subadvisers,  provided
that the Subadvisers  shall be subject to the same  restrictions and limitations
on the  investments and brokerage  discretion as the Manager.  While the Manager
shall be responsible for allocating  assets among the Subadvisers and monitoring
their  relative  performances,  the Trust agrees that the Manager  should not be


                                       3
<PAGE>

accountable to the Trust or the Portfolio or the  Portfolio's  shareholders  for
any loss or other  liability  relating to specific  investments  directed by any
Subadviser  (even  though the  Manager  retains  the right to  reserve  any such
investment),   because  the  Trust  and  the  Manager  will  be  relying  almost
exclusively on the expertise of the Subadvisers for the selection and monitoring
of specific investments directed by the Subadvisers.

         5. (a) The Trust  shall pay to the  Manager,  as  compensation  for the
Manager's  services  hereunder,  a fee at the  rate of  1.00%  per  annum of the
Portfolio's average daily net assets. The management fee payable hereunder shall
be computed  daily and paid monthly in arrears.  In the event of  termination of
this Agreement,  the fee provided in this Section shall be computed on the basis
of the period  ending on the last  business  day on which this  Agreement  is in
effect subject to a pro rata  adjustment  based on the number of days elapsed in
the current month as a percentage of the total number of days in such month.

            (b) If the  operating  expenses of the  Portfolio in any year exceed
the limits set by state securities laws or regulations in states in which shares
of the Portfolio are sold,  the amount  payable to the Manager under  subsection
(a) above will be reduced (but not below $0),  and the Manager  shall make other
arrangements  concerning  expenses  but,  in each  instance,  only as and to the
extent  required  by such laws or  regulation.  If  amounts  have  already  been
advanced  to the Manager  under this  Agreement,  the  Manager  will return such
amounts to the Trust to the extent required by the preceding sentence.

            (c) In addition to the foregoing,  the Manager may from time to time
agree not to impose all or a portion of its fee otherwise  payable hereunder (in
advance of the time such fee or a portion thereof would otherwise accrue) and/or
undertake to pay or reimburse the Trust for all or a portion of its expenses not
otherwise  required  to be  borne or  reimbursed  by the  Manager.  Any such fee
reduction or undertaking  may be  discontinued or modified by the Manager at any
time.

         6. The Manager  will not be liable for any error of judgment or mistake
of law or for any loss  sustained  by reason of the  adoption of any  investment
policy or the purchase, sale, or retention of any security on the recommendation
of the Manager,  whether or not such  recommendation  shall have been based upon
its own  investigation  and research or upon  investigation and research made by
any other individual, firm or corporation,  but nothing contained herein will be
construed to protect the Manager against any liability to the Trust or Portfolio
or its  shareholders  by  reason  of  willful  misfeasance,  bad  faith or gross
negligence  in the  performance  of its  duties  or by  reason  of its  reckless
disregard of its obligations and duties under this Agreement.


                                       4
<PAGE>

         7. (a) Nothing in this  Agreement will in any way limit or restrict the
Manager or any of its officers,  directors, or employees from buying, selling or
trading in any securities for its or their own accounts or other  accounts.  The
Manager  may  act  as an  investment  advisor  to  any  other  person,  firm  or
corporation,  and may perform  management  and any other  services for any other
person, association,  corporation, firm or other entity pursuant to any contract
or  otherwise,  and take any action or do any thing in  connection  therewith or
related  thereto;  and no such  performance  of management or other  services or
taking of any such  action  or doing of any such  thing  shall be in any  manner
restricted  or  otherwise  affected  by any  aspect of any  relationship  of the
Manager  to or with the Trust or deemed to  violate  or give rise to any duty or
obligation  of the Manager to the Trust except as otherwise  imposed by law. The
Trust  recognizes  that  Manager,  in  effecting  transactions  for its  various
accounts,  may not always be able to take or liquidate  investment  positions in
the same security at the same time and at the same price.

            (b) In connection  with  purchases or sales of portfolio  securities
for the account of the Portfolio,  neither the Manager nor any of its Directors,
officers or employees will act as a principal or agent or receive any commission
except as permitted by the 1940 Act. The Manager  shall  arrange for the placing
of all  orders  for the  purchase  and  sale  of  portfolio  securities  for the
Portfolio's  account  with brokers or dealers  selected by the  Manager.  In the
selection of such brokers or dealers and the placing of such orders, the Manager
is directed at all times to seek for the Portfolio the most favorable  execution
and net price available except as described  herein.  It is also understood that
it is desirable for the Portfolio  that the Manager have access to  supplemental
investment and market  research and security and economic  analyses  provided by
brokers who may execute brokerage transactions at a higher cost to the Portfolio
than may  result  when  allocating  brokerage  to other  brokers on the basis of
seeking the most favorable price and efficient execution. Therefore, the Manager
is authorized  to place orders for the purchase and sale of  securities  for the
Portfolio with such brokers, subject to review by the Trust's Trustees from time
to time with  respect to the extent and  continuation  of this  practice.  It is
understood  that the  services  provided  by such  brokers  may be useful to the
Manager in connection with its or its affiliates services to other clients.

            (c) On  occasions  when the Manager  deems the purchase or sale of a
security to be in the best interest of the  Portfolio as well as other  clients,
the Manager,  to the extent  permitted by applicable laws and  regulations,  may
aggregate  the  securities  to be sold or  purchased in order to obtain the best
execution and lower brokerage commissions,  if any. In such event, allocation of
the  securities  so purchased or sold,  as well as the expenses  incurred in the
transaction,  will be made by the Manager in the manner it  considers  to be the
most  equitable and consistent  with its fiduciary  obligations to the Portfolio
and to such clients.


                                       5
<PAGE>

         8. This Agreement  shall become  effective on the date hereof and shall
remain in force until Aprily30, 1996 and from year to year thereafter,  but only
so long as its continuance is approved annually by a vote of the Trustees of the
Trust voting in person, including a majority of its Trustees who are not parties
to this  Agreement or interested  persons (as the term  "interested  persons" is
defined in the 1940 Act) of any such  parties,  at a meeting of Trustees  called
for the purpose of voting on such  approval  or by a vote of a "majority  of the
outstanding  voting  securities"  (as defined in the 1940 Act) of the Portfolio,
subject to the right of the Trust and the Manager to terminate  this contract as
provided in Section 9 hereof.

         9. Either party hereto may, without  penalty,  terminate this Agreement
by vote of its Board of Directors or its Board of Trustees,  as the case may be,
or by vote of a "majority of its outstanding  voting  securities" (as defined in
the 1940 Act) of the Portfolio and the giving of 60 days' written  notice to the
other party.

         10. This Agreement  shall  automatically  terminate in the event of its
assignment. For purposes of this Agreement, the term "assignment" shall have the
meaning given it by Section 2(a)(4) of the 1940 Act.

         11. The Manager is an independent contractor and not an employee of the
Fund for any purpose.  If any occasion  should arise in which the Manager  gives
any advice to its clients  concerning the shares of the  Portfolio,  the Manager
will act solely as  investment  counsel  for such  clients and not in any way on
behalf of the Trust or Portfolio.

         12. This Agreement  states the entire  agreement of the parties hereto,
and is intended to be the complete and exclusive  statement of the terms hereof.
It may not be added to or changed  orally,  and may not be modified or rescinded
except by a writing signed by the parties hereto and in accordance with the 1940
Act, when applicable.

         13. This Agreement and all  performance  hereunder shall be governed by
the laws of The Commonwealth of Massachusetts, which apply to contracts made and
to be performed in The Commonwealth of Massachusetts.

         14.  Any  term or  provision  of this  Agreement  which is  invalid  or
unenforceable in any jurisdiction  shall, as to such jurisdiction be ineffective
to the extent of such invalidity or  unenforceability  without rendering invalid


                                       6
<PAGE>

or  unenforceable  the  remaining  terms  or  provisions  of this  Agreement  or
affecting  the validity or  enforceability  of any of the terms or provisions of
this Agreement in any other jurisdiction.

         15.  The  parties  to this  Agreement  acknowledge  and agree  that all
liabilities arising hereunder,  whether direct or indirect, and of any and every
nature  whatsoever  shall be satisfied solely out of the assets of the portfolio
affected thereby and that no Trustee,  officer or holder of shares of beneficial
interest  of the  Trust  shall be  personally  liable  for any of the  foregoing
liabilities.  The Trust's Certificate of Trust, as amended from time to time, is
on file in the Office of the  Secretary of State of the State of Delaware.  Such
Certificate of Trust and the Trust's Declaration of Trust describe in detail the
respective  responsibilities  and  limitations  on  liability  of the  Trustees,
officers, and holders of shares of beneficial interest.

         16.  This  Agreement  may be  executed  simultaneously  in two or  more
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly  authorized  officers and their seal to be hereto affixed
as of the day and year first above written.


ATTEST:                            PIONEER WINTHROP REAL ESTATE INVESTMENT FUND



- ---------------------------        ----------------------------
Joseph P. Barri                    John F. Cogan, Jr.
Secretary                          Chief Executive Officer


ATTEST:                            PIONEER WINTHROP ADVISERS


- ---------------------------        ----------------------------
Joseph P. Barri                    John F. Cogan, Jr.
Secretary                          Chief Executive Officer





                                       7


                        INVESTMENT SUBADVISORY AGREEMENT


         AGREEMENT  made of the 28th day of April,  1995,  by and among  PIONEER
WINTHROP REAL ESTATE  INVESTMENT  FUND, a Delaware  business trust (the "Fund"),
PIONEER WINTHROP ADVISERS, a Massachusetts  general partnership (the "Manager"),
and   PIONEERING   MANAGEMENT   CORPORATION,   a   Delaware   corporation   (the
"Subadviser").

                              W I T N E S S E T H

         WHEREAS,  the  Fund  is an  open-end,  management  investment  company,
registered  under the  Investment  Company  Act of 1940,  as amended  (the "1940
Act"),  and the Manager and the Subadviser are  investment  advisers  registered
under the Investment Advisers Act of 1940 (the "Advisers Act"); and

         WHEREAS,  pursuant  to  authority  granted  the  Manager  by the Fund's
Trustees and pursuant to the provisions of the Management  Contract of even date
herewith  between  the  Manager and the Fund (the  "Management  Contract"),  the
Manager has selected the  Subadviser to act as a  sub-investment  adviser of the
Fund and to provide certain other services,  as more fully set forth below,  and
to perform such services under the terms and conditions hereinafter set forth;

         NOW,  THEREFORE,  in  consideration  of the  mutual  agreements  herein
contained, it is agreed as follow:

         1.       The Subadviser's Services.

         (a) The  Subadviser  will  regularly  provide the  Manager  with advice
concerning  the  investment  management  of that  portion  or all of the  Fund's
portfolio (the  "Portfolio")  as designated by the Manager.  The Subadviser will
recommend to the Manager what  securities  shall be purchased  for the Portfolio
and what  securities  shall be held or sold by the Portfolio;  subject always to
the provisions of the Fund's  Declaration of Trust and By-laws and the 1940 Act,
and to the investment objectives,  policies and restrictions (including, without
limitation,  the  requirements  of Subchapter M of the Internal  Revenue Code of
1986, as amended,  for qualification as a regulated  investment  company) of the
Fund,  as each of the same  shall be from time to time in effect as set forth in
the Fund's Prospectus and Statement of Additional Information, or any investment
<PAGE>

guidelines  or other  instructions  received in writing  from the  Manager,  and
subject, further, to such policies and instructions as the Manager may from time
to time establish and deliver to the  Subadviser.  The Subadviser will regularly
provide the  Manager  with  investment  research  and advice and will  recommend
continuously  to the Manager an investment  program for the Fund with respect to
the Portfolio.  The Manager shall manage directly (or through another investment
subadviser),  and the Subadviser shall not be responsible for the management of,
any portion of the Fund's portfolio not designated as part of the Portfolio.

         (b) The  Subadviser  shall  not be  responsible  for the  provision  of
administrative,  bookkeeping  or  accounting  services  to the  Fund,  except as
otherwise provided herein or as may be necessary for the Subadviser to supply to
the Manager,  the Fund or its Trustees the  information  required to be supplied
under this Contract.

         The Subadviser  shall maintain  separate books and detailed  records of
all matters  pertaining  to the Fund and the  Portfolio  (the "Fund's  Books and
Records"),  including  without  limitation  a daily  ledger of such  assets  and
liabilities  relating  thereto and brokerage and other records of all securities
transactions.  The  Subadviser  shall also require  that its Access  Persons (as
defined in the Fund's  Code of  Ethics)  provide  the  Subadviser  with  monthly
reports of their personal securities transactions.  The Fund's Books and Records
shall  be  available  to the  Manager  at any time  upon  request  and  shall be
available for  telecopying  without delay to the Manager during any day that the
Fund is open for business.

         (c) The Subadviser is hereby  authorized and directed and hereby agrees
to purchase,  hold and sell Portfolio  securities for the account of the Fund as
directed by the Manager and to monitor on a continuing  basis the performance of
those Portfolio  securities.  In addition,  the Subadviser will place orders for
the purchase and sale of  Portfolio  securities  as directed by the Manager and,
subject to the provisions of the following paragraph, will take reasonable steps
to  assure  that  Portfolio  transactions  are  effected  at the best  price and
execution  available,  as such  phrase is used in the Fund's  Prospectus,  as in
effect from time to time.


                                       2
<PAGE>

         In using its best  efforts  to obtain  for the Fund the most  favorable
price and execution available,  the Subadviser,  bearing in mind the Fund's best
interests at all times, shall consider all factors it deems relevant,  including
by way of illustration,  price,  the size of the transaction,  the nature of the
market  for the  security,  the  amount  of the  commission,  the  timing of the
transaction  taking  into  account  market  prices and trends,  the  reputation,
experience  and  financial  stability  of the broker or dealer  involved and the
quality  of  service  rendered  by the  broker or dealer in other  transactions.
Subject  to such  policies  as the  Trustees  of the  Fund  may  determine,  the
Subadviser  shall not be deemed to have acted unlawfully or to have breached any
duty created by this Contract or otherwise solely by reason of its having caused
the Fund to pay an  affiliated  broker or dealer  that  provides  brokerage  and
research  services to the  Subadviser or the Manager an amount of commission for
effecting a Portfolio investment  transaction that is no greater than the amount
of  commission  than an  unaffiliated  broker or dealer  would have  charged for
effecting that transaction.

         It is understood that the Subadviser, the Manager and the Fund may have
advisory,  management,  service or other  contracts  with other  individuals  or
entities, and may have other interests and businesses.  When a security proposed
to be  purchased  or sold for the Fund is also to be purchased or sold for other
accounts  managed by the Subadviser at the same time, the Subadviser  shall make
such purchases or sales on a proArata,  rotating or other  equitable basis so as
to avoid any one account being preferred over any other account.

         The  Subadviser  will advise the  Manager  and,  if  instructed  by the
Manager,  the  Fund's  custodian  on a  prompt  basis  each  day  by  electronic
telecommunication  of each confirmed  purchase and sale of a Portfolio  security
specifying  the  name  of the  issuer,  the  full  description  of the  security
including its class, and amount or number of shares of the security purchased or
sold, the market price,  commission,  government charges and gross or net price,
trade date,  settlement date and identity of the effecting broker or dealer and,
if different,  the identity of the clearing broker.  Under no circumstances  may


                                       3
<PAGE>

the  Subadviser  or any  affiliate  of the  Subadviser  act as a principal  in a
securities  transaction with the Fund or any other investment company managed by
the Manager.

         The Subadviser  shall assure that at least two  representatives  of the
Manager,  as specified by the Manager,  shall be authorized  to give  directions
(without  restriction  of any  kind) to  brokers  and  dealers  employed  by the
Subadviser to execute  Portfolio  transactions for the Fund and to custodians or
depositories that hold securities or other assets of the Fund at any time.

         (d) From time to time as the  Manager or the  Trustees  of the Fund may
reasonably  request,  the Subadviser shall furnish to the Manager and to each of
the Fund's Trustees reports on Portfolio  transactions and reports on securities
held in the  Portfolio,  all in such detail as the Manager or the  Trustees  may
reasonably  request.  The Subadviser will also inform the Manager and the Fund's
Trustees on a current basis of changes in  investment  strategy or tactics or in
key personnel.  The Subadviser will make its officers and employees available to
meet with the  Fund's  Trustees  at least  annually  on due notice to review the
investments  of the Fund in the light of current and  prospective  economic  and
market conditions.

         It shall be the duty of the  Subadviser  to furnish to the  Trustees of
the Fund such  information  as may  reasonably  be  necessary  in order for such
Trustees to evaluate  this Contract or any proposed  amendments  thereto for the
purposes of casting a vote pursuant to Sectiony7 ory8 hereof.

         2. Allocation of Charges and Expenses. The Subadviser will bear its own
costs  of  providing  services  hereunder.  Other  than as  herein  specifically
indicated,  the  Subadviser  shall  not be  responsible  for the  Fund's  or the
Manager's  expenses,  including brokerage and other expenses incurred in placing
orders for the purchase and sale of  securities.  Specifically,  the  Subadviser
will not be responsible for expenses of the Fund or the Manager, as the case may
be, including,  but not limited to, the following:  (i) charges and expenses for
determining from time to time the value of the Fund's net assets and the keeping
of its books and records and related overhead;  (ii) the charges and expenses of
auditors; (iii) the charges and expenses of any custodian,  transfer agent, plan


                                       4
<PAGE>

agent,  dividend  disbursing  agent and  registrar  appointed by the Fund;  (iv)
brokers'  commissions,  and issue and transfer taxes,  chargeable to the Fund in
connection  with  securities  transactions  to which  the  Fund is a party;  (v)
insurance  premiums,  interest  charges,  dues and fees for  membership in trade
associations  and all taxes and  corporate  fees payable by the Fund to federal,
state  or other  governmental  agencies;  (vi)  fees and  expenses  involved  in
registering and maintaining registrations of the Fund and/or its shares with the
Commission,  state  or blue  sky  securities  agencies  and  foreign  countries,
including  the  preparation  of   Prospectuses   and  Statements  of  Additional
Information for filing with the Commission;  (vii) all expenses of shareholders'
and Trustees' meetings and of preparing, printing and distributing prospectuses,
notices,  proxy  statements and all reports to shareholders  and to governmental
agencies;  (viii) charges and expenses of legal counsel;  (ix) distribution fees
paid by the Fund in accordance  with Rule 12b-1  promulgated  by the  Commission
pursuant to the 1940 Act; (x) compensation and expenses of Trustees of the Fund.
The Fund or the Manager,  as the case may be, shall reimburse the Subadviser for
any such  expenses  or other  expenses  of the  Fund or the  Manager,  as may be
reasonably incurred by such Subadviser on behalf of the Fund or the Manager. The
Subadviser shall keep and supply to the Fund and the Manager adequate records of
all such expenses.

         3. Information  supplied by the Manager.  The Manager shall provide the
Subadviser with written statements of the Fund's Declaration of Trust,  By-laws,
Prospectus  and Statement of Additional  Information,  and  instructions,  as in
effect from time to time; and the Subadviser  shall have no  responsibility  for
actions taken in reliance on any such documents.

         4. Representations, Warranties and Covenants. The Subadviser represents
and  warrants to each of the Fund and the Manager  that it is  registered  as an
"investment adviser" under the Advisers Act and covenants that it will remain so
registered for the duration of this Contract.

         The Subadviser has reviewed the  Registration  Statement of the Fund as
filed with the  Securities  and Exchange  Commission and represents and warrants
that with respect to disclosure  about the  Subadviser or  information  relating
directly or indirectly to the Subadviser,  such Registration Statement contains,
as of the date hereof,  no untrue  statement  of any material  fact and does not


                                       5
<PAGE>

omit any statement of material  fact which was required to be stated  therein or
necessary to make the statements contained therein not misleading.

         The  Subadviser  agrees  to  comply  with  and  will  ensure  that  its
recommendations  concerning the Portfolio  conform with the  requirements of the
1940  Act  and  the  Advisers  Act  and the  respective  rules  and  regulations
thereunder, as applicable, and the requirements for qualification as a regulated
investment  company under  Subchapter M of the Internal Revenue Code, as well as
with all other applicable  Federal and state laws,  rules,  regulations and case
law that relate to the services and relationships described hereunder,  and with
the provisions of the Registration Statement, as amended or supplemented, of the
Fund.

         5. Subadviser's Compensation.  The Manager shall pay to the Subadviser,
as compensation for the Subadviser's services hereunder,  0.30% per annum of the
Fund's  average  daily net  assets.  Such fee shall be  computed  daily and paid
monthly.  The Fund  shall  have no  responsibility  for any fee  payable  to the
Subadviser.

         The method of  determining  net assets of the Fund for purposes  hereof
shall be the same as the  method of  determining  net  assets  for  purposes  of
establishing  the offering and  redemption  price of Fund shares as described in
the Fund's Prospectus. If this Contract shall be effective for only a portion of
a month,  the  aforesaid  fee shall be prorated  for that  portion of such month
during which this Contract is in effect.

         In the event that the  advisory  fee payable by the Fund to the Manager
shall be reduced, the amount payable to the Subadviser shall be likewise reduced
by a  proportionate  amount.  The  Subadviser may from time to time agree not to
impose all or a portion of its fee  otherwise  payable  hereunder (in advance of
the time such fee or  portion  thereof  would  otherwise  accrue).  Any such fee
reduction may be discontinued or modified by the Subadviser at any time.

         6. Independent Contractor.  In the performance of its duties hereunder,
the  Subadviser is and shall be an independent  contractor and unless  otherwise
expressly  provided  herein or otherwise  authorized  in writing,  shall have no
authority to act for or represent  the Fund in any way or otherwise be deemed to
be an agent of the Fund or of the Manager.

         7.  Assignment  and  Amendments.   This  Contract  shall  automatically
terminate,  without  the  payment  of any  penalty,  in  the  event  of (i)  its


                                       6
<PAGE>

assignment, including any change of control of the Manager or the Subadviser, or
(ii) in the event of the termination of the Management  Contract;  provided that
such  termination  shall  not  relieve  the  Manager  or the  Subadviser  of any
liability incurred hereunder.

         The terms of this Contract  shall not be changed  unless such change is
approved at a meeting by the  affirmative  vote of a majority of the outstanding
voting  securities of the Fund and unless also approved by the affirmative  vote
of a majority of Trustees of the Fund voting in person,  including a majority of
the  Trustees  who are not  interested  persons of the Fund,  the Manager or the
Subadviser, at a meeting called for the purpose of voting on such change.

         8. Duration and Termination. This Contract shall become effective as of
the date  first  above  written  and  shall  remain  in full  force  and  effect
continually thereafter unless terminated automatically as set forth in Sectiony7
hereof or until terminated as follows:

          (a)  The Fund or the Manager may at any time  terminate  this Contract
               by not more than sixty (60) days' nor less than thirty (30) days'
               written notice  delivered or mailed by registered  mail,  postage
               prepaid,  to the  Subadviser.  Action  of  the  Fund  under  this
               Subsection  may be taken  either (i) by vote of its  Trustees  of
               (ii) by the  affirmative  vote of a majority  of the  outstanding
               voting securities of the Fund;

          (b)  The  Subadviser  may at any time  terminate  this Contract by not
               less than one hundred twenty (120) days' written notice delivered
               or mailed by registered mail, postage prepaid, to the Manager; or

          (c)  This Contract  shall  automatically  terminate on April 30 of any
               year beginning on April 30,  1996, in which its terms and renewal
               shall  not  have  been  approved  by (i) a  majority  vote of the
               Trustees  of the Fund  voting in person,  including a majority of
               the  Trustees  who are not  interested  persons of the Fund,  the
               Manager or the Subadviser, at a meeting called for the purpose of
               voting  on  such  approval  or  (ii)  the  affirmative  vote of a
               majority  of the  outstanding  voting  securities  of  the  Fund;
               provided,  however,  that if the  continuance of this Contract is
               submitted to the  shareholders of the Fund for their approval and
               such  shareholders  fail  to  approve  such  continuance  of this
               Contract as provided herein, the Subadviser may continue to serve


                                       7
<PAGE>

               hereunder as to the Fund in a manner consistent with the 1940 Act
               and the rules and regulations thereunder.

         Termination of this Contract  pursuant to this Section shall be without
payment of any penalty.

         In the  event of  termination  of this  Contract  for any  reason,  the
Subadviser  shall,  immediately upon notice of termination or on such later date
as may be specified in such notice, cease all activity on behalf of the Fund and
with respect to any of its assets,  except as expressly directed by the Manager.
In addition,  the  Subadviser  shall deliver the Fund's Books and Records to the
Manager by such means and in accordance  with such schedule as the Manager shall
direct and shall otherwise cooperate,  as reasonably directed by the Manager, in
the  transition  of  portfolio  assets   management  to  any  successor  of  the
Subadviser, including the Manager.

         9. Certain Definitions. For the purposes of this Contract:

          (a)  "Affirmative  vote  of  a  majority  of  the  outstanding  voting
               securities of the Fund" means the affirmative  vote, at an annual
               or special  meeting of  shareholders of the Fund, duly called and
               held,  (a)yof 67% or more of the shares of the Fund  present  (in
               person or by proxy) and entitled to vote at such meeting,  if the
               holders  or more than 50% of the  outstanding  shares of the Fund
               entitled  to vote at such  meeting  are  present (in person or by
               proxy), or (b)yof more than 50% of the outstanding  shares of the
               Fund entitled to vote at such meeting, whichever is less.

          (b)  "Interested persons" and "Assignment" shall have their respective
               meanings as set forth in the 1940 Act, subject,  however, to such
               exemptions  as may be  granted  by the  Securities  and  Exchange
               Commission under said Act.

         10.   Liability  and   Indemnification.   In  the  absence  of  willful
misfeasance,  bad faith or gross negligence on the part of the Subadviser, or of
reckless  disregard  of its  obligations  and  duties  hereunder  (collectively,
"Malfeasance"),  the  Subadviser  shall not be subject to any  liability  to the
Manager or the Fund, to any  shareholder of the Fund, or to any person,  firm or
organization,  for any act or  omission  in the  course of, or  connected  with,
rendering services hereunder.  Nothing herein,  however, shall derogate from the


                                       8
<PAGE>

Subadviser's  obligations under federal and state securities laws (collectively,
the "Securities Laws").

         The Manager shall  indemnify the  Subadviser  for all  liabilities  and
related costs,  including  reasonable  attorney's fees, which the Subadviser may
sustain in connection  with the discharge  without  Malfeasance or negligence of
its  obligations  hereunder  and in accordance  with the  Securities  Laws.  The
Subadviser  shall  indemnify  the Manager and the Fund for all  liabilities  and
related costs,  including  reasonable  attorneys fees,  which either of them may
sustain  as a  result  of  the  Subadviser's  Malfeasance  or  violation  of the
Securities Laws.

         11. Limitation on Liability of Fund Trustees and  Shareholders.  A copy
of the  Certificate  of Trust of the Fund is on file with the Secretary of State
of the State of  Delaware,  and  notice is hereby  given that this  Contract  is
executed on behalf of the Trustees of the Fund as Trustees and not  individually
and that the  obligations  of the Fund under this  Contract are not binding upon
any of the Trustees,  officers or  shareholders of the Fund but are binding only
upon the assets and property of the Fund.

         12.  Jurisdiction.  This Contract shall be governed by and construed in
accordance with the substantive laws of The  Commonwealth of  Massachusetts  and
the Subadviser consents to the jurisdiction of courts, both state or federal, in
Boston, Massachusetts, with respect to any dispute under this Contract.

         13. Counterparts.  This Contract may be executed  simultaneously in two
or more  counterparts,  each of which  shall be deemed an  original,  but all of
which together shall constitute one and the same instrument.


                                       9
<PAGE>

         IN WITNESS  WHEREOF,  the parties hereto have caused this instrument to
be signed on their behalf by their duly authorized officers as of the date first
above written.

ATTEST:                                      PIONEER WINTHROP ADVISERS



/s/Joseph P. Barri                           /s/David D. Tripple
Joseph P. Barri                              David D. Tripple
Secretary                                    Executive Vice President


ATTEST:                                      PIONEERING MANAGEMENT CORPORATION



/s/Joseph P. Barri                           /s/David D. Tripple
Joseph P. Barri                              David D. Tripple
Secretary                                    President


ATTEST:                                      PIONEER INVESTMENT WINTHROP REAL
                                             ESTATE FUND



/s/Joseph P. Barri                           /s/John F. Cogan, Jr.
Joseph P. Barri                              John F. Cogan, Jr.
Secretary                                    Chief Executive Officer


                                       10


                        INVESTMENT SUBADVISORY AGREEMENT


         AGREEMENT  made of the 28th day of April,  1995,  by and among  PIONEER
WINTHROP REAL ESTATE  INVESTMENT  FUND, a Delaware  business trust (the "Fund"),
PIONEER WINTHROP ADVISERS, a Massachusetts  general partnership (the "Manager"),
and WINTHROP ADVISORS LIMITED  PARTNERSHIP,  a Delaware limited partnership (the
"Subadviser").

                              W I T N E S S E T H

         WHEREAS,  the  Fund  is an  open-end,  management  investment  company,
registered  under the  Investment  Company  Act of 1940,  as amended  (the "1940
Act"),  and the Manager and the Subadviser are  investment  advisers  registered
under the Investment Advisers Act of 1940 (the "Advisers Act"); and

         WHEREAS,  pursuant  to  authority  granted  the  Manager  by the Fund's
Trustees and pursuant to the provisions of the Management  Contract of even date
herewith  between  the  Manager and the Fund (the  "Management  Contract"),  the
Manager has selected the  Subadviser to act as a  sub-investment  adviser of the
Fund and to provide certain other services,  as more fully set forth below,  and
to perform such services under the terms and conditions hereinafter set forth;

         NOW,  THEREFORE,  in  consideration  of the  mutual  agreements  herein
contained, it is agreed as follow:

         1.       The Subadviser's Services.

         (a) The  Subadviser  will  regularly  provide the  Manager  with advice
concerning  the  investment  management  of that  portion  or all of the  Fund's
portfolio (the  "Portfolio")  as designated by the Manager.  The Subadviser will
recommend to the Manager what  securities  shall be purchased  for the Portfolio
and what  securities  shall be held or sold by the Portfolio;  subject always to
the provisions of the Fund's  Declaration of Trust and By-laws and the 1940 Act,
and to the investment objectives,  policies and restrictions (including, without
limitation,  the  requirements  of Subchapter M of the Internal  Revenue Code of
1986, as amended,  for qualification as a regulated  investment  company) of the
Fund,  as each of the same  shall be from time to time in effect as set forth in
the Fund's Prospectus and Statement of Additional Information, or any investment
<PAGE>

guidelines  or other  instructions  received in writing  from the  Manager,  and
subject, further, to such policies and instructions as the Manager may from time
to time  establish  and  deliver to the  Subadviser.  The  Subadviser  is hereby
authorized  and directed and hereby agrees to monitor on a continuing  basis the
performance of the Portfolio  securities.  The Manager shall manage directly (or
through  another  investment  subadviser),  and  the  Subadviser  shall  not  be
responsible  for the  management  of, any  portion of the Fund's  portfolio  not
designated as part of the Portfolio.

         (b) The  Subadviser  shall  not be  responsible  for the  provision  of
administrative,  bookkeeping  or  accounting  services  to the  Fund,  except as
otherwise provided herein or as may be necessary for the Subadviser to supply to
the Manager,  the Fund or its Trustees the  information  required to be supplied
under this Contract.

         The Subadviser  shall maintain  separate books and detailed  records of
all matters  pertaining  to the Fund and the  Portfolio  (the "Fund's  Books and
Records"). The Fund's Books and Records shall be available to the Manager at any
time upon request and shall be available  for  telecopying  without delay to the
Manager during any day that the Fund is open for business.

         (c) The  Subadviser  will,  to the extent  reasonably  required  in the
conduct of the business of the Fund and upon request by the Fund or the Manager,
furnish to the Manager research,  statistical and advisory reports upon the real
estate,  businesses,  or  securities  as to which such  requests  shall be made,
whether  or not the Fund  shall at the time  have any  investment  in such  real
estate,  businesses or securities.  The Subadviser  will use its best efforts in
the  preparation  of such  reports and will  endeavor to consult the persons and
sources believed by it to have  information  available with respect to such real
estate, businesses, corporations or securities.

         The Subadviser  will also inform the Manager and the Fund's Trustees on
a  current  basis  of  changes  in  investment  strategy  or  tactics  or in key
personnel. The Subadviser will make its officers and employees available to meet


                                       2
<PAGE>

with  the  Fund's  Trustees  at least  annually  on due  notice  to  review  the
investments  of the Fund in the light of current and  prospective  economic  and
market conditions.

         It shall be the duty of the  Subadviser  to furnish to the  Trustees of
the Fund such  information  as may  reasonably  be  necessary  in order for such
Trustees to evaluate  this Contract or any proposed  amendments  thereto for the
purposes of casting a vote pursuant to Sectiony7 ory8 hereof.

         2. Allocation of Charges and Expenses. The Subadviser will bear its own
costs  of  providing  services  hereunder.  Other  than as  herein  specifically
indicated,  the  Subadviser  shall  not be  responsible  for the  Fund's  or the
Manager's  expenses,  including brokerage and other expenses incurred in placing
orders for the purchase and sale of  securities.  Specifically,  the  Subadviser
will not be responsible for expenses of the Fund or the Manager, as the case may
be, including,  but not limited to, the following:  (i) charges and expenses for
determining from time to time the value of the Fund's net assets and the keeping
of its books and records and related overhead;  (ii) the charges and expenses of
auditors; (iii) the charges and expenses of any custodian,  transfer agent, plan
agent,  dividend  disbursing  agent and  registrar  appointed by the Fund;  (iv)
brokers'  commissions,  and issue and transfer taxes,  chargeable to the Fund in
connection  with  securities  transactions  to which  the  Fund is a party;  (v)
insurance  premiums,  interest  charges,  dues and fees for  membership in trade
associations  and all taxes and  corporate  fees payable by the Fund to federal,
state  or other  governmental  agencies;  (vi)  fees and  expenses  involved  in
registering and maintaining registrations of the Fund and/or its shares with the
Commission,  state  or blue  sky  securities  agencies  and  foreign  countries,
including  the  preparation  of   Prospectuses   and  Statements  of  Additional
Information for filing with the Commission;  (vii) all expenses of shareholders'
and Trustees' meetings and of preparing, printing and distributing prospectuses,
notices,  proxy  statements and all reports to shareholders  and to governmental
agencies;  (viii) charges and expenses of legal counsel;  (ix) distribution fees
paid by the Fund in accordance  with Rule 12b-1  promulgated  by the  Commission
pursuant to the 1940 Act; (x) compensation and expenses of Trustees of the Fund.
The Fund or the Manager,  as the case may be, shall reimburse the Subadviser for
any such  expenses  or other  expenses  of the  Fund or the  Manager,  as may be
reasonably incurred by such Subadviser on behalf of the Fund or the Manager. The


                                       3
<PAGE>

Subadviser shall keep and supply to the Fund and the Manager adequate records of
all such expenses.

         3. Information  supplied by the Manager.  The Manager shall provide the
Subadviser with written statements of the Fund's Declaration of Trust,  By-laws,
Prospectus  and Statement of Additional  Information,  and  instructions,  as in
effect from time to time; and the Subadviser  shall have no  responsibility  for
actions taken in reliance on any such documents.

         4. Representations, Warranties and Covenants. The Subadviser represents
and  warrants to each of the Fund and the Manager  that it is  registered  as an
"investment adviser" under the Advisers Act and covenants that it will remain so
registered for the duration of this Contract.

         The Subadviser has reviewed the  Registration  Statement of the Fund as
filed with the  Securities  and Exchange  Commission and represents and warrants
that with respect to disclosure  about the  Subadviser or  information  relating
directly or indirectly to the Subadviser,  such Registration Statement contains,
as of the date hereof,  no untrue  statement  of any material  fact and does not
omit any statement of material  fact which was required to be stated  therein or
necessary to make the statements contained therein not misleading.

         The  Subadviser  agrees  to  comply  with  and  will  ensure  that  its
recommendations  concerning the Portfolio  conform with the  requirements of the
1940  Act  and  the  Advisers  Act  and the  respective  rules  and  regulations
thereunder, as applicable, and the requirements for qualification as a regulated
investment  company under  Subchapter M of the Internal Revenue Code, as well as
with all other applicable  Federal and state laws,  rules,  regulations and case
law that relate to the services and relationships described hereunder,  and with
the provisions of the Registration Statement, as amended or supplemented, of the
Fund.

         5. Subadviser's Compensation.  The Manager shall pay to the Subadviser,
as compensation for the Subadviser's services hereunder,  0.30% per annum of the
Fund's  average  daily net  assets.  Such fee shall be  computed  daily and paid
monthly.  The Fund  shall  have no  responsibility  for any fee  payable  to the
Subadviser.

         The method of  determining  net assets of the Fund for purposes  hereof
shall be the same as the  method of  determining  net  assets  for  purposes  of
establishing  the offering and  redemption  price of Fund shares as described in
the Fund's Prospectus. If this Contract shall be effective for only a portion of


                                       4
<PAGE>

a month,  the  aforesaid  fee shall be prorated  for that  portion of such month
during which this Contract is in effect.

         In the event that the  advisory  fee payable by the Fund to the Manager
shall be reduced, the amount payable to the Subadviser shall be likewise reduced
by a  proportionate  amount.  The  Subadviser may from time to time agree not to
impose all or a portion of its fee  otherwise  payable  hereunder (in advance of
the time such fee or  portion  thereof  would  otherwise  accrue).  Any such fee
reduction may be discontinued or modified by the Subadviser at any time.

         6. Independent Contractor.  In the performance of its duties hereunder,
the  Subadviser is and shall be an independent  contractor and unless  otherwise
expressly  provided  herein or otherwise  authorized  in writing,  shall have no
authority to act for or represent  the Fund in any way or otherwise be deemed to
be an agent of the Fund or of the Manager.

         7.  Assignment  and  Amendments.   This  Contract  shall  automatically
terminate,  without  the  payment  of any  penalty,  in  the  event  of (i)  its
assignment, including any change of control of the Manager or the Subadviser, or
(ii) in the event of the termination of the Management  Contract;  provided that
such  termination  shall  not  relieve  the  Manager  or the  Subadviser  of any
liability incurred hereunder.

         The terms of this Contract  shall not be changed  unless such change is
approved at a meeting by the  affirmative  vote of a majority of the outstanding
voting  securities of the Fund and unless also approved by the affirmative  vote
of a majority of Trustees of the Fund voting in person,  including a majority of
the  Trustees  who are not  interested  persons of the Fund,  the Manager or the
Subadviser, at a meeting called for the purpose of voting on such change.

         8. Duration and Termination. This Contract shall become effective as of
the date  first  above  written  and  shall  remain  in full  force  and  effect
continually thereafter unless terminated automatically as set forth in Sectiony7
hereof or until terminated as follows:

          (a)  The Fund or the Manager may at any time  terminate  this Contract
               by not more than sixty (60) days' nor less than thirty (30) days'
               written notice  delivered or mailed by registered  mail,  postage
               prepaid,  to the  Subadviser.  Action  of  the  Fund  under  this


                                       5
<PAGE>

               Subsection  may be taken  either (i) by vote of its  Trustees  of
               (ii) by the  affirmative  vote of a majority  of the  outstanding
               voting securities of the Fund;

          (b)  The  Subadviser  may at any time  terminate  this Contract by not
               less than one hundred twenty (120) days' written notice delivered
               or mailed by registered mail, postage prepaid, to the Manager; or

          (c)  This Contract  shall  automatically  terminate on April 30 of any
               year beginning on April 30,  1997, in which its terms and renewal
               shall  not  have  been  approved  by (i) a  majority  vote of the
               Trustees  of the Fund  voting in person,  including a majority of
               the  Trustees  who are not  interested  persons of the Fund,  the
               Manager or the Subadviser, at a meeting called for the purpose of
               voting  on  such  approval  or  (ii)  the  affirmative  vote of a
               majority  of the  outstanding  voting  securities  of  the  Fund;
               provided,  however,  that if the  continuance of this Contract is
               submitted to the  shareholders of the Fund for their approval and
               such  shareholders  fail  to  approve  such  continuance  of this
               Contract as provided herein, the Subadviser may continue to serve
               hereunder as to the Fund in a manner consistent with the 1940 Act
               and the rules and regulations thereunder.

         Termination of this Contract  pursuant to this Section shall be without
payment of any penalty.

         In the  event of  termination  of this  Contract  for any  reason,  the
Subadviser  shall,  immediately upon notice of termination or on such later date
as may be specified in such notice, cease all activity on behalf of the Fund and
with respect to any of its assets,  except as expressly directed by the Manager.
In addition,  the  Subadviser  shall deliver the Fund's Books and Records to the
Manager by such means and in accordance  with such schedule as the Manager shall
direct and shall otherwise cooperate,  as reasonably directed by the Manager, in
the  transition  of  portfolio  assets   management  to  any  successor  of  the
Subadviser, including the Manager.

         9.       Certain Definitions.  For the purposes of this Contract:

         (a)  "Affirmative  vote  of  a  majority  of  the  outstanding   voting
securities  of the Fund"  means the  affirmative  vote,  at an annual or special
meeting of shareholders of the Fund, duly called and held, (a)yof 67% or more of


                                       6
<PAGE>

the shares of the Fund  present (in person or by proxy) and  entitled to vote at
such meeting,  if the holders or more than 50% of the outstanding  shares of the
Fund  entitled to vote at such  meeting are present (in person or by proxy),  or
(b)yof more than 50% of the  outstanding  shares of the Fund entitled to vote at
such meeting, whichever is less.

         (b) "Interested  persons" and "Assignment"  shall have their respective
meanings as set forth in the 1940 Act, subject,  however,  to such exemptions as
may be granted by the Securities and Exchange Commission under said Act.

         10.   Liability  and   Indemnification.   In  the  absence  of  willful
misfeasance,  bad faith or gross negligence on the part of the Subadviser, or of
reckless  disregard  of its  obligations  and  duties  hereunder  (collectively,
"Malfeasance"),  the  Subadviser  shall not be subject to any  liability  to the
Manager or the Fund, to any  shareholder of the Fund, or to any person,  firm or
organization,  for any act or  omission  in the  course of, or  connected  with,
rendering services hereunder.  Nothing herein,  however, shall derogate from the
Subadviser's  obligations under federal and state securities laws (collectively,
the "Securities Laws").

         The Manager shall  indemnify the  Subadviser  for all  liabilities  and
related costs,  including  reasonable  attorney's fees, which the Subadviser may
sustain in connection  with the discharge  without  Malfeasance or negligence of
its  obligations  hereunder  and in accordance  with the  Securities  Laws.  The
Subadviser  shall  indemnify  the Manager and the Fund for all  liabilities  and
related costs,  including  reasonable  attorneys fees,  which either of them may
sustain  as a  result  of  the  Subadviser's  Malfeasance  or  violation  of the
Securities Laws.

         11. Limitation on Liability of Fund Trustees and  Shareholders.  A copy
of the  Certificate  of Trust of the Fund is on file with the Secretary of State
of the State of  Delaware,  and  notice is hereby  given that this  Contract  is
executed on behalf of the Trustees of the Fund as Trustees and not  individually
and that the  obligations  of the Fund under this  Contract are not binding upon
any of the Trustees,  officers or  shareholders of the Fund but are binding only
upon the assets and property of the Fund.


                                       7
<PAGE>

         12.  Jurisdiction.  This Contract shall be governed by and construed in
accordance with the substantive laws of The  Commonwealth of  Massachusetts  and
the Subadviser consents to the jurisdiction of courts, both state or federal, in
Boston, Massachusetts, with respect to any dispute under this Contract.

         13. Counterparts.  This Contract may be executed  simultaneously in two
or more  counterparts,  each of which  shall be deemed an  original,  but all of
which together shall constitute one and the same instrument.

         IN WITNESS  WHEREOF,  the parties hereto have caused this instrument to
be signed on their behalf by their duly authorized officers as of the date first
above written.

ATTEST:                                      PIONEER WINTHROP ADVISERS



/s/Joseph P. Barri                           /s/David D. Tripple
Joseph P. Barri                              David D. Tripple
Secretary                                    Executive Vice President


ATTEST:                                      WINTHROP ADVISORS LIMITED
                                             PARTNERSHIP



                                             /s/Arthur J. Halleran, Jr.
                                             Arthur J. Halleran, Jr.
Secretary                                    President


ATTEST:                                      PIONEER WINTHROP REAL
                                             ESTATE INVESTMENT FUND



/s/Joseph P. Barri                           /s/John F. Cogan, Jr.
Joseph P. Barri                              John F. Cogan, Jr.
Secretary                                    Chief Executive Officer



                             UNDERWRITING AGREEMENT


         THIS UNDERWRITING AGREEMENT,  dated this 28th day of April, 1995 by and
between Pioneer  Winthrop Real Estate  Investment  Fund  ("Pioneer") and Pioneer
Funds Distributor, Inc. (the "Underwriter").


                              W I T N E S S E T H

         WHEREAS,  Pioneer,  a Delaware business trust, is registered as an open
end, diversified, management investment company under the Investment Company Act
of 1940,  as amended (the "1940 Act"),  and has filed a  registration  statement
(the "Registration  Statement") with the Securities and Exchange Commission (the
"Commission") for the purpose of registering  shares of beneficial  interest for
public offering under the Securities Act of 1933, as amended;

         WHEREAS, the Underwriter, a corporation organized under the laws of the
Commonwealth  of  Massachusetts  in 1989,  engages in the  purchase  and sale of
securities  both as a broker and a dealer and is registered  as a  broker-dealer
with the Commission and is a member in good standing of the National Association
of Securities Dealers, Inc. (the "NASD");

         WHEREAS,  the parties  hereto deem it  mutually  advantageous  that the
Underwriter should act as Principal Underwriter, as defined in the 1940 Act, for
the sale to the public of the shares of  beneficial  interest of the  securities
portfolio of each series of Pioneer which the Trustees may  establish  from time
to time (individually, a "Portfolio" and collectively, the "Portfolios"); and

         NOW,  THEREFORE,  in consideration of the mutual covenants and benefits
set forth herein, Pioneer and the Underwriter do hereby agree as follows:

         1. Pioneer does hereby grant to the Underwriter the right and option to
purchase shares of beneficial  interest of a Portfolio of Pioneer (the "Shares")
for  sale  to   investors   either   directly  or   indirectly   through   other
broker-dealers. The Underwriter is not required to purchase any specified number
of Shares,  but will purchase from Pioneer only a sufficient number of Shares as
may be necessary to fill unconditional  orders received from time to time by the
Underwriter from investors and dealers.

         2. The  Underwriter  shall  offer  Shares to the public at an  offering
price  based  upon  the net  asset  value of the  Shares,  to be  calculated  as
described in the Registration  Statement,  including the Prospectus,  filed with
the Commission and in effect at the time of the offering,  plus sales charges as
<PAGE>

approved by the Underwriter and the Trustees of Pioneer and as further  outlined
in Pioneer's  Prospectus.  The offering price shall be subject to any provisions
set forth in the Prospectus from time to time with respect  thereto,  including,
without   limitation,   rights   of   accumulation,    letters   of   intention,
exchangeability of shares,  reinstatement privileges,  net asset value purchases
by  certain   persons  and   reinvestments   of   dividends   and  capital  gain
distributions.

         3.  In  the  case  of  all  Shares  sold  to  investors  through  other
broker-dealers,  a portion of applicable sales charges will be reallowed to such
broker-dealers  who are members of the NASD or, in the case of certain  sales by
banks or certain sales to foreign  nationals,  to brokers or dealers exempt from
registration  with the Commission.  The concession  reallowed to  broker-dealers
shall be set forth in a written sales  agreement and shall be generally the same
for broker-dealers providing comparable levels of sales and service.

         4. This  Agreement  shall  terminate on any  anniversary  hereof if its
terms and renewal have not been  approved by a majority  vote of the Trustees of
Pioneer  voting in person,  including  a majority  of its  Trustees  who are not
"interested  persons" of the Trust and who have no direct or indirect  financial
interest  in  the  operation  of  the  Underwriting  Agreement  (the  "Qualified
Trustees"),  at a meeting of  Trustees  called for the purpose of voting on such
approval.  This Agreement may also be terminated at any time, without payment of
any penalty, by Pioneer on 60 days' written notice to the Underwriter, or by the
Underwriter  upon  similar  notice  to  Pioneer.  This  Agreement  may  also  be
terminated by a party upon five (5) days'  written  notice to the other party in
the event that the  Commission  has issued an order or obtained an injunction or
other  court  order  suspending  effectiveness  of  the  Registration  Statement
covering these shares of Pioneer. Finally, this Agreement may also be terminated
by Pioneer upon five (5) days' written notice to the Underwriter provided either
of the following events has occurred:  (i) the NASD has expelled the Underwriter
or suspended its  membership in that  organization;  or (ii) the  qualification,
registration, license or right of the Underwriter to sell shares in a particular
state has been suspended or cancelled in a state in which sales of the shares of
Pioneer  during the most recent 12 month  period  exceeded  10% of all shares of
Pioneer sold by the Underwriter during such period.

         5. The  compensation for the services of the Underwriter as a principal
underwriter  under  this  Agreement  shall be (i) that part of the sales  charge
which is retained by the Underwriter  after allowance of discounts to dealers as
set forth in the Registration Statement, including the Prospectus, filed with


                                       2
<PAGE>

         the Commission  and in effect at the time of the offering,  as amended,
and (ii) those amounts payable to the Underwriter as  reimbursement  of expenses
pursuant to any  distribution  plan for Pioneer which may be in effect.  Nothing
contained  herein shall relieve  Pioneer of any obligation  under its management
contract or any other contract with any affiliate of the Underwriter.

         6.  The  parties  to this  Agreement  acknowledge  and  agree  that all
liabilities  arising  hereunder,  whether  direct  or  indirect,  of any  nature
whatsoever, including without limitation, liabilities arising in connection with
any  agreement of Pioneer or its  Trustees as set forth herein to indemnify  any
party to this  Agreement or any other person,  if any, shall be satisfied out of
the  assets  of  Pioneer  and that no  Trustee,  officer  or holder of shares of
beneficial  interest  of  Pioneer  shall  be  personally  liable  for any of the
foregoing  liabilities.  Pioneer's Certificate of Trust, as amended from time to
time,  is on file in the Office of  Secretary of State of the State of Delaware.
Pioneer's   Declaration   of  Trust   describes   in   detail   the   respective
responsibilities  and  limitations on liability of the Trustees,  officers,  and
holders of shares of beneficial interest.

         7. This  Agreement  shall  automatically  terminate in the event of its
assignment (as that term is defined in the 1940 Act).

         8. In the event of any dispute  between  the  parties,  this  Agreement
shall be construed according to the laws of The Commonwealth of Massachusetts.

         IN WITNESS  WHEREOF,  the parties hereto have caused this instrument to
be  executed  by their  duly  authorized  officers  and their  seal to be hereto
affixed as of day and year first above written.

ATTEST:                            PIONEER WINTHROP REAL ESTATE INVESTMENT FUND


/s/Joseph P. Barri                 /s/John F. Cogan, Jr.
Joseph P. Barri, Secretary         John F. Cogan, Jr.
                                   Chief Executive Officer


ATTEST:                            PIONEER FUNDS DISTRIBUTOR, INC.


/s/Joseph P. Barri, Clerk          /s/Robert L. Butler
Joseph P. Barri, Clerk             Robert L. Butler
                                   President



                                       3


                               AGREEMENT BETWEEN









                         BROWN BROTHERS HARRIMAN & CO.







                                      AND







                  PIONEER WINTHROP REAL ESTATE INVESTMENT FUND




                               TABLE OF CONTENTS


1.       Employment of Custodian

2.       Powers and Duties of the Custodian with respect
         to Property of the Fund held by the Custodian

<PAGE>

         A.       Safekeeping                                         2

         B.       Manner of Holding Securities                        2

         C.       Registered Name; Nominee                            2

         D.       Purchases                                           2

         E.       Exchanges                                           4

         F.       Sales of Securities                                 4

         G.       Depositary Receipts                                 5

         H.       Exercise of Rights; Tender Offers                   6

         I.       Stock Dividends, Rights, Etc.                       6

         J.       Options                                             6

         K.       Borrowings                                          7

         L.       Demand Deposit Bank Accounts                        7

         M.       Interest Bearing Call or Time Deposits              8

         N.       Foreign Exchange Transactions
                  and Futures Contracts                               9

         0.       Stock Loans                                         10

         P.       Collections                                         10

         Q.       Dividends, Distributions and Redemptions            11

         R.       Proxies, Notices, Etc.                              12

         S.       Nondiscretionary Details                            12
<PAGE>

         T.       Bills                                               13

         U.       Deposit of Fund Assets in Securities Systems        13

         V.       Other Transfers                                     15

         W.       Investment Limitations                              16

         X.       Restricted Securities                               16

         Y.       Proper Instructions                                 18

         Z.       Segregated Account                                  19


3.       Powers and Duties of the Custodian with Respect to           
         the Appointment of Subcustodians                             20

4.       Assistance by the Custodian as to Certain Matters            24

5.       Powers and Duties of the Custodian with Respect to its Role
         as Financial Agent                                           24

         A. Records

         B. Accounts

         C. Access to Records

         D. Disbursements


6.   Standard of Care and Related Matters

     A.   Liability  of the  Custodian  with  Respect  to  Proper  Instructions;
          Evidence of Authority; Etc.

     B.   Liability of the Custodian with Respect to Use of Securities System

     C.   Liability of the Custodian with Respect to Subcustodians

     D.   Standard of Care; Liability; Indemnification

     E.   Reimbursement of Advances

     F.   Security for Obligations to Custodian

     G.   Appointment of Agents

     H.   Powers of Attorney


7.   Compensation of the Custodian

8.   Termination; Successor Custodian

9.   Amendment

10.  Governing Law
<PAGE>

11.  Notices

12.  Binding Effect

13.  Counterparts


<PAGE>


                              CUSTODIAN AGREEMENT


AGREEMENT made this day of 1995 between PIONEER WINTHROP REAL ESTATE  INVESTMENT
FUND (the "Fund") and Brown Brothers Harriman & Co. (the "Custodian");

WITNESSETH:  That in consideration of the mutual covenants and agreements herein
contained, the parties hereto agree as follows:

1.  Employment of Custodian:  The Fund hereby employs and appoints the Custodian
as a custodian for the term and subject to the provisions of this Agreement. The
Custodian  shall  not be under any duty or  obligation  to  require  the Fund to
deliver  to it any  securities  or funds  owned by the  Fund and  shall  have no
responsibility  or  liability  for or on account of  securities  or funds not so
delivered. The Fund will deposit with the Custodian copies of the Declaration of
Trust or Certificate of Incorporation  and By-Laws (or comparable  documents) of
the  Fund and all  amendments  thereto,  and  copies  of such  votes  and  other
proceedings  of the Fund as may be necessary  for or convenient to the Custodian
in the performance of its duties.

2. Powers and Duties of the Custodian  with respect to Property of the Fund held
by the Custodian:  Except for securities and funds held by any  Subcustodians or
held  by the  Custodian  through  a  non-U.S.  securities  depository  appointed
pursuant to the  provisions of Section 3 hereof,  the  Custodian  shall have and
perform the following powers and duties:

A. Safekeeping - To keep safely the securities and other assets of the Fund that
have been  delivered to the Custodian  and, on behalf of the Fund,  from time to
time to receive delivery of securities for safekeeping.
<PAGE>

B. manner of Holding Securities - To hold securities of the Fund (1) by physical
possession of the share  certificates  or other  instruments  representing  such
securities  in  registered  or  bearer  form,  or (2) in  book-entry  form  by a
Securities System (as said term is defined in Section 2U).

C. Registered Name;  Nominee - To hold registered  securities of the Fund (1) in
the name or any nominee name of the Custodian or the Fund, or in the name or any
nominee  name of any Agent  appointed  pursuant  to Section 6F, or (2) in street
certificate form,  so-called,  and in any case with or without any indication of
fiduciary  capacity,  provided  that  securities  are held in an  account of the
Custodian containing only assets of the Fund or only assets held as fiduciary or
custodian for customers.

D. Purchases - Upon receipt of Proper  Instructions,  as defined in Section X on
Page 18, insofar as funds are available for the purpose,  to pay for and receive
securities  purchased for the account of the Fund,  payment being made only upon
receipt of the securities (1) by the Custodian, or (2) by a clearing corporation
of a national  securities exchange of which the Custodian is a member, or (3) by
a Securities System.  However, (i) in the case of repurchase  agreements entered
into by the Fund,  the  Custodian  (as well as an Agent) may release  funds to a
Securities  System or to a Subcustodian  prior to the receipt of advice from the
Securities System or Subcustodian that the securities underlying such repurchase
agreement  have been  transferred  by book entry into the Account (as defined in
Section 2U) of the Custodian  (or such Agent)  maintained  with such  Securities
System or Subcustodian,  so long as such payment  instructions to the Securities
System or  Subcustodian  include a  requirement  that  delivery is only  against
payment for securities, (ii) in the case of foreign exchange contracts, options,
time deposits,  call account deposits,  currency  deposits,  and other deposits,
contracts or options  pursuant to Sections 2J, 2L, 2M and 2N, the  Custodian may
make payment therefor without  receiving an instrument  evidencing said deposit,
contract  or  option  so long  as  such  payment  instructions  detail  specific
securities to be acquired,  and (iii) in the case of securities in which payment
for the security and receipt of the instrument evidencing the security are under
generally  accepted trade  practice or the terms of the instrument  representing
the security  expected to take place in different  locations or through separate
parties,  such as commercial paper which is indexed to foreign currency exchange
rates,  derivatives and similar  securities,  the Custodian may make payment for
such  securities  prior to delivery  thereof in accordance  with such  generally
accepted  trade  practice  or the  terms  of the  instrument  representing  such
security.


                                       2
<PAGE>

E. Exchanges - Upon receipt of proper instructions,  to exchange securities held
by it for the account of the Fund for other  securities in  connection  with any
reorganization,  recapitalization,  split-up  of  shares,  change of par  value,
conversion  or other  event  relating  to the  securities  or the issuer of such
securities  and to deposit any such  securities in accordance  with the terms of
any  reorganization  or  protective  plan.  Without  proper  instructions,   the
Custodian may surrender securities in temporary form for definitive  securities,
may surrender  securities  for transfer into a name or nominee name as permitted
in  Section  2C,  and  may  surrender  securities  for  a  different  number  of
certificates  or  instruments  representing  the same  number  of shares or same
principal amount of indebtedness, provided the securities to be issued are to be
delivered to the Custodian.

F. Sales of Securities - Upon receipt of proper  instructions,  to make delivery
of securities which have been sold for the account of the Fund, but only against
payment therefor (1) in cash, by a certified check,  bank cashier's check,  bank
credit, or bank wire transfer,  or (2) by credit to the account of the Custodian
with a clearing  corporation  of a  national  securities  exchange  of which the
Custodian  is a member,  or (3) by credit to the account of the  Custodian or an
Agent of the Custodian with a Securities System; provided,  however, that (i) in
the case of  delivery  of  physical  certificates  or  instruments  representing
securities, the Custodian may make delivery to the broker buying the securities,
against receipt  therefor,  for examination in accordance with "street delivery"
custom, provided that the payment therefor is to be made to the Custodian (which
payment  may be made by a  broker's  check)  or that such  securities  are to be
returned to the  Custodian,  and (ii) in the case of  securities  referred to in
clause  (iii) of the  last  sentence  of  Section  2D,  the  Custodian  may make
settlement,  including with respect to the form of payment,  in accordance  with
generally  accepted trade practice  relating to such  securities or the terms of
the instrument representing said security.

G.  Depositary  Receipts - Upon  receipt of proper  instructions,  to instruct a
Subcustodian  or an Agent to surrender  securities to the depositary  used by an
issuer of American  Depositary  Receipts or  International  Depositary  Receipts
(hereinafter  collectively  referred to as "ADRs") for such securities against a
written  receipt  therefor  adequately  describing  such  securities and written
evidence  satisfactory  to the  Subcustodian  or Agent that the  depositary  has
acknowledged  receipt of  instructions  to issue with respect to such securities
ADRs in the name of the Custodian,  or a nominee of the Custodian,  for delivery
to the  Custodian  in  Boston,  Massachusetts,  or at such  other  place  as the
Custodian may from time to time designate.



                                       3
<PAGE>

Upon receipt of proper  instructions,  to surrender  ADRs to the issuer  thereof
against a written receipt  therefor  adequately  describing the ADRs surrendered
and written  evidence  satisfactory to the Custodian that the issuer of the ADRs
has acknowledged  receipt of instructions to cause its depositary to deliver the
securities underlying such ADRs to a Subcustodian or an Agent.

H.  Exercise  of  Rights;   Tender  Offers  -  Upon  timely  receipt  of  proper
instructions,  to deliver to the issuer or trustee  thereof,  or to the agent of
either,  warrants,  puts, calls, rights or similar securities for the purpose of
being  exercised or sold,  provided  that the new  securities  and cash, if any,
acquired by such action are to be delivered to the Custodian,  and, upon receipt
of proper  instructions,  to deposit  securities upon invitations for tenders of
securities,  provided that the  consideration  is to be paid or delivered or the
tendered securities are to be returned to the Custodian.

I. Stock Dividends,  Rights,  Etc. - To receive and collect all stock dividends,
rights and other  items of like  nature;  and to deal with the same  pursuant to
proper instructions relative thereto.

J.  Options - Upon  receipt  of  proper  instructions,  to  receive  and  retain
confirmations or other documents evidencing the purchase of writing of an option
on a security or  securities  index by the Fund;  to deposit  and  maintain in a
segregated  account,  either physically or by book-entry in a Securities System,
securities  subject to a covered call option written by the Fund; and to release
and/or  transfer such  securities  or other assets only in  accordance  with the
provisions of any agreement  among the Fund,  the Custodian and a  broker-dealer
relating  to such  securities  or other  assets a notice or other  communication
evidencing  the  expiration,  termination  or  exercise of such  covered  option
furnished  by The  Options  Clearing  Corporation,  the  securities  or  options
exchange on which such covered  option is traded or such other  organization  as
may be responsible for handling such options transactions.

K. Borrowings - Upon receipt of proper  instructions,  to deliver  securities of
the Fund to lenders or their agents as collateral for borrowings effected by the
Fund,  provided that such borrowed  money is payable to or upon the  Custodian's
order as Custodian for the Fund.

L. Demand  Deposit Bank Accounts - To open and operate an account or accounts in
the name of the Fund on the Custodian's  books subject only to draft or order by


                                       4
<PAGE>

the  Custodian.  All funds  received by the Custodian from or for the account of
the Fund shall be  deposited in said  account(s).  The  responsibilities  of the
Custodian to the Fund for deposits  accepted on the  Custodian's  books shall be
that of a U. S. bank for a similar deposit.

If and when  authorized  by  proper  instructions,  the  Custodian  may open and
operate an additional  account(s) in such other banks or trust  companies as may
be designated by the Fund in such  instructions  (any such bank or trust company
so  designated   by  the  Fund  being   referred  to  hereafter  as  a  "Banking
Institution"),  provided that such account(s) (hereinafter collectively referred
to as "demand deposit bank accounts")  shall be in the name of the Custodian for
account of the Fund and subject  only to the  Custodian's  draft or order.  Such
demand deposit  accounts may be opened with Banking  Institutions  in the United
States and in other  countries and may be denominated in either U. S. Dollars or
other currencies as the Fund may determine. All such deposits shall be deemed to
be portfolio  securities of the Fund and accordingly the  responsibility  of the
Custodian  therefore  shall be the same as and no greater  than the  Custodian's
responsibility in respect of other portfolio securities of the Fund.

M. Interest Bearing Call or Time Deposits - To place interest bearing fixed term
and call  deposits with such banks and in such amounts as the Fund may authorize
pursuant to proper instructions.  Such deposits may be placed with the Custodian
or with  Subcustodians or other Banking  Institutions as the Fund may determine.
Deposits may be denominated in U. S. Dollars or other currencies and need not be
evidenced  by the  issuance  or  delivery  of a  certificate  to the  Custodian,
provided  that the  Custodian  shall  include in its records with respect to the
assets of the Fund  appropriate  notation as to the amount and  currency of each
such deposit,  the accepting Banking Institution and other appropriate  details,
and shall retain such forms of advice or receipt evidencing the deposit, if any,
as may be forwarded to the Custodian by the Banking Institution.  Such deposits,
other than those placed with the Custodian, shall be deemed portfolio securities
of the Fund and the responsibilities of the Custodian therefor shall be the same
as those for demand deposit bank accounts  placed with other banks, as described
in Section K of this  Agreement.  The  responsibility  of the Custodian for such
deposits  accepted on the  Custodian's  books shall be that of a U.S. bank for a
similar deposit.

N.  Foreign  Exchange  Transactions  and  Futures  Contracts  Pursuant to proper
instructions,  to enter into foreign  exchange  contracts or options to purchase


                                       5
<PAGE>

and sell foreign  currencies for spot and future  delivery on behalf and for the
account of the Fund. Such  transactions  may be undertaken by the Custodian with
such Banking  Institutions,  including  the  Custodian  and  Subcustodian(s)  as
principals,  as approved and authorized by the Fund.  Foreign exchange contracts
and options other than those executed with the Custodian,  shall be deemed to be
portfolio  securities  of the Fund  and the  responsibilities  of the  Custodian
therefor shall be the same as those for demand deposit bank accounts placed with
other banks as described in Section 2L of this agreement. Upon receipt of proper
instructions,  to receive and retain  confirmations  evidencing  the purchase or
sale of a futures  contract or an option on a futures  contract by the Fund;  to
deposit and  maintain in a  segregated  account,  for the benefit of any futures
commission  merchant  or to pay to  such  futures  commission  merchant,  assets
designated by the fund as initial,  maintenance or variation  "margin"  deposits
intended to secure the Fund's  performance of its obligations  under any futures
contracts  purchased or sold or any options on futures  contracts written by the
Fund, in accordance with the provisions of any agreement or agreements among any
of the Fund, the Custodian and such futures commission  merchant,  designated to
comply with the rules of the Commodity  Futures  Trading  Commission  and/or any
contract market, or any similar  organization or  organizations,  regarding such
margin  deposits;  and to release and/or transfer assets in such margin accounts
only in accordance with any such agreements or rules.

0. Stock Loans - Upon receipt of proper  instructions,  to deliver securities of
the Fund,  in  connection  with loans of securities by the Fund, to the borrower
thereof prior to receipt of the collateral, if any, for such borrowing, provided
that for stock loans secured by cash collateral the Custodian's  instructions to
the  Securities  System  require  that the  Securities  System may  deliver  the
securities to the borrower  thereof only upon receipt of the collateral for such
borrowing.

P. Collections - To collect, receive and deposit in said account or accounts all
income,  payments of principal and other payments with respect to the securities
held hereunder, and in connection therewith to deliver the certificates or other
instruments  representing the securities to the issuer thereof or its agent when
securities are called, redeemed,  retired or otherwise become payable; provided,
that the  payment is to be made in such form and manner and at such time,  which
may be after  delivery  by the  Custodian  of the  instrument  representing  the
security, as is in accordance with the terms of the instrument  representing the
security,  or  such  proper  instructions  as  the  Custodian  may  receive,  or


                                       6
<PAGE>

governmental  regulations,  the  rules  of  Securities  Systems  or  other  U.S.
securities  depositories  and clearing  agencies or, with respect to  securities
referred to in clause  (iii) of the last  sentence of Section 2D, in  accordance
with generally  accepted  trade  practice;  (ii) to execute  ownership and other
certificates and affidavits for all federal and state tax purposes in connection
with receipt of income or other  payments with respect to securities of the Fund
or in  connection  with  transfer of  securities,  and (iii)  pursuant to proper
instructions to take such other actions with respect to collection or receipt of
funds or transfer of securities which involve an investment decision.

Q.   Dividends,   Distributions   and  Redemptions  -  Upon  receipt  of  proper
instructions  from the Fund,  or upon  receipt of  instructions  from the Fund's
shareholder  servicing agent or agent with comparable  duties (the  "Shareholder
Servicing  Agent") (given by such person or persons and in such manner on behalf
of the  Shareholder  Servicing  Agent as the Fund  shall have  authorized),  the
Custodian shall release funds or securities to the  Shareholder  Servicing Agent
or otherwise apply funds or securities, insofar as available, for the payment of
dividends or other  distributions to Fund  shareholders.  Upon receipt of proper
instructions from the Fund, or upon receipt of instructions from the Shareholder
Servicing Agent (given by such person or persons and in such manner on behalf of
the  Shareholder  Servicing  Agent  as the  Fund  shall  have  authorized),  the
Custodian  shall  release  funds or  securities,  insofar as  available,  to the
Shareholder  Servicing  Agent or as such  Agent  shall  otherwise  instruct  for
payment to Fund  shareholders  who have  delivered  to such Agent a request  for
repurchase or redemption of their shares of capital stock of the Fund.

R. Proxies, Notices, Etc. - Promptly to deliver or mail to the Fund all forms of
proxies  and all  notices of  meetings  and any other  notices or  announcements
affecting or relating to  securities  owned by the Fund that are received by the
Custodian,  and upon receipt of proper  instructions,  to execute and deliver or
cause its nominee to execute and deliver such proxies or other authorizations as
may be required.  Neither the  Custodian  nor its nominee shall vote upon any of
such securities or execute any proxy to vote thereon or give any consent or take
any other action with respect  thereto  (except as  otherwise  herein  provided)
unless ordered to do so by proper instructions.

S.  Nondiscretionary  Details - Without the  necessity of express  authorization
from the Fund, (1) to attend to all nondiscretionary  details in connection with
the sale,  exchange,  substitution,  purchase,  transfer or other  dealings with


                                       7
<PAGE>

securities,  funds or other  property  of the  Portfolio  held by the  Custodian
except as otherwise  directed  from time to time by the Directors or Trustees of
the Fund,  and (2) to make  payments  to itself or others for minor  expenses of
handling  securities or other similar items relating to the  Custodian's  duties
under this Agreement,  provided that all such payments shall be accounted for to
the Fund.

T.  Bills - Upon  receipt  of proper  instructions,  to pay or cause to be paid,
insofar as funds are  available for the purpose,,  bills,  statementsf  or other
obligations of the Fund.

U.  Deposit of Fund Assets in  Securities  Systems - The  Custodian  may deposit
and/or  maintain  securities  owned  by the  Fund  in (i) The  Depository  Trust
Company,  (ii) any  book-entry  system as  provided  in  Subpart  0 of  Treasury
Circular  No. 300, 31 CFR 306,  Subpart B of 31 CFR Part 350, or the  book-entry
regulations of federal agencies substantially in the form of Subpart 0, or (iii)
any other domestic  clearing agency  registered with the Securities and Exchange
Commission  under Section 17A of the Securities  Exchange Act of 1934 which acts
as a securities  depository  and whose use the Fund has  previously  approved in
writing  (each  of the  foregoing  being  referred  to in  this  Agreement  as a
"Securities System").  Utilization of a Securities System shall be in accordance
with  applicable  Federal  Reserve Board and Securities and Exchange  Commission
rules and regulations, if any, and subject to the following provisions:

1) The Custodian may deposit and/or maintain Fund securities, either directly or
through one or more Agents  appointed by the Custodian  (provided  that any such
agent  shall be  qualified  to act as a  custodian  of the Fund  pursuant to the
Investment Company Act of 1940 and the rules and regulations  thereunder),  in a
Securities  System  provided that such  securities are represented in an account
("Account") of the Custodian or such Agent in the Securities  System which shall
not  include  any assets of the  Custodian  or Agent other than assets held as a
fiduciary, custodian, or otherwise for customers;

2) The records of the Custodian with respect to securities of the Fund which are
maintained in a Securities  System shall identify by book-entry those securities
belonging to the Fund;

3) The Custodian shall pay for securities  purchased for the account of the Fund
upon (i) receipt of advice from the Securities  System that such securities have
been transferred to the Account,  and (ii) the making of an entry on the records


                                       8
<PAGE>

of the  Custodian  to reflect  such  payment and transfer for the account of the
Fund. The Custodian  shall transfer  securities sold for the account of the Fund
upon (i) receipt of advice  from the  Securities  System  that  payment for such
securities has been transferred to the Account,  and (ii) the making of an entry
on the records of the  Custodian  to reflect  such  transfer and payment for the
account  of the  Fund.  Copies  of all  advices  from the  Securities  System of
transfers of securities  for the account of the Fund shall identify the Fund, be
maintained  for the Fund by the Custodian or an Agent as referred to above,  and
be provided to the Fund at its request.  The  Custodian  shall  furnish the Fund
confirmation  of each transfer to or from the account of the Fund in the form of
a written  advice  or  notice  and  shall  furnish  to the Fund  copies of daily
transaction  sheets reflecting each day's  transactions in the Securities System
for the account of the Fund on the next business day;

4) The  Custodian  shall  provide  the Fund  with  any  report  obtained  by the
Custodian  or  any  Agent  as  referred  to  above  on the  Securities  System's
accounting system,  internal  accounting control and procedures for safeguarding
securities deposited in the Securities System; and the Custodian and such Agents
shall send to the Fund such reports on their own systems of internal  accounting
control as the Fund may reasonably request from time to time.

5) At the written  request of the Fund,  the Custodian will terminate the use of
any such Securities System on behalf of the Fund as promptly as practicable.

V. Other Transfers - Upon receipt of proper instructions, to deliver securities,
funds and other property of the Fund to a Subcustodian  or another  custodian of
the  Fund;  and,  upon  receipt  of  proper  instructions,  to make  such  other
disposition of securities, funds or other property of the Fund in a manner other
than or for  purposes  other than as  enumerated  elsewhere  in this  Agreement,
provided  that the  instructions  relating to such  disposition  shall include a
statement  of the  purpose for which the  delivery is to be made,  the amount of
securities  to be  delivered  and the  name of the  person  or  persons  to whom
delivery is to be made.

W.  Investment  Limitations  - In  performing  its  duties  generally,  and more
particularly  in connection  with the purchase,  sale and exchange of securities
made by or for the Fund,  the Custodian may assume unless and until  notified in
writing to the  contrary  that  proper  instructions  received  by it are not in
conflict with or in any way contrary to any provisions of the Pund's Declaration


                                       9
<PAGE>

of Trust or Certificate of Incorporation or By-Laws (or comparable documents) or
votes or proceedings of the shareholders or Directors of the Fund. The Custodian
shall in no event be liable to the Fund and shall be indemnified by the Fund for
any violation which occurs in the course of carrying out  instructions  given by
the Fund of any  investment  limitations  to which the Fund is  subject or other
limitations  with respect to the Fund's  powers to make  expenditures,  encumber
securities, borrow or take similar actions affecting the Fund.

X. Restricted Securities. Notwithstanding any other provision of this Agreement,
the Custodian shall not be liable for failure to take any action in respect of a
"restricted  security" (as hereafter  defined) if the Custodian has not received
Proper  Instructions  to take such  action  (including  but not  limited  to the
failure to  exercise in a timely  manner any right in respect of any  restricted
security) unless the Custodian's responsibility to take such action is set forth
in a  writing,  agreed  upon by the  Custodian  and the  Fund or the  investment
adviser of the Fund, which specifies particular actions the Custodian is to take
without  Proper  Instructions  in respect of  specified  rights and  obligations
pertaining to a particular restricted security. Further, the Custodian shall not
be responsible for transmitting to the Fund information  concerning a restricted
security,  such as with  respect to exercise  periods and  expiration  dates for
rights relating to the restricted  security,  except such information  which the
Custodian  actually receives or which is published in a source which is publicly
distributed  and  generally  recognized  as a major source of  information  with
respect to corporate actions of securities similar to the particular  restricted
security. As used herein, the term "restricted securities" shall mean securities
which are subject to restrictions on transfer,  whether by reason of contractual
restrictions  or  federal,  state or  foreign  securities  or similar  laws,  or
securities which have special rights or contractual  features which do not apply
to  publicly-traded  shares  of,  or  comparable  interests  representing,  such
security.

Y. Proper  Instructions - Proper instructions shall mean a tested telex from the
Fund or a written request,  direction,  instruction or  certification  signed or
initialled  on behalf of the Fund by one or more  person or persons as the Board
of  Directors  or Trustees of the Fund shall have from time to time  authorized,
provided,   however,  that  no  such  instructions  directing  the  delivery  of
securities or the payment of funds to an authorized  signatory of the Fund shall
be signed by such person.  Those persons authorized to give proper  instructions
may be  identified  by the Board of  Directors  or  Trustees  by name,  title or


                                       10
<PAGE>

position  and will  include at least one officer  empowered by the Board to name
other  individuals  who are authorized to give proper  instructions on behalf of
the Fund.  Telephonic or other oral  instructions  given by any one of the above
persons will be  considered  proper  instructions  if the  Custodian  reasonably
believes  them  to  have  been  given  by  a  person  authorized  to  give  such
instructions with respect to the transaction involved. oral instructions will be
confirmed  by tested  telex or in writing in the manner set forth  above but the
lack of such  confirmation  shall  in no way  affect  any  action  taken  by the
Custodian  in reliance  upon such oral  instructions.  The Fund  authorizes  the
Custodian to tape record any and all telephonic or other oral instructions given
to the  Custodian by or on behalf of the Fund  (including  any of its  officers,
Directors,  Trustees,  employees or agents) and will deliver to the  Custodian a
similar authorization from any investment manager or adviser or person or entity
with similar  reponsibilities which is authorized to give proper instructions on
behalf of the Fund to the Custodian.  Proper instructions may relate to specific
transactions or to types or classes of  transactions,  and may be in the form of
standing instructions.

Proper  instructions  may  include  communications   effected  directly  between
electromechanical or electronic devices or systems, in addition to tested telex,
provided  that the Fund and the  Custodian  agree to the use of such  device  or
system.

Z. Segregated Account - The Custodian shall upon receipt of proper  instructions
establish and maintain on its books a segregated  account or accounts for and on
behalf of the Fund,  into which  account or  accounts  may be  transferred  cash
and/or securities of the Fund, including securities  maintained by the Custodian
pursuant to Section 2U hereof,  (i) in  accordance  with the  provisions  of any
agreement among the Fund, the Custodian and a broker-dealer registered under the
Securities  Exchange  Act of 1934 and a member of the  National  Association  of
Securities  Dealers,  Inc. (or any futures commission  merchant registered under
the Commodity Exchange Act) relating to compliance with the rules of the Options
Clearing  Corporation and of any registered national securities exchange (or the
Commodity Futures Trading Commission or any registered  contract market), or any
similar organization or organizations, regarding escrow or other arrangements in
connection with  transactions by the Fund, (ii) for purposes of segregating cash
or securities in connection with options purchased,  sold or written by the Fund
or commodity futures contracts or options thereon purchased or sold by the Fund,
(iii) for the purposes of compliance by the Fund with the procedures required by


                                       11
<PAGE>

Investment  Company Act Release No. 10666, or any subsequent release or releases
of the  Securities  and  Exchange  Commission  relating  to the  maintenance  of
segregated  accounts by registered  investment  companies,  and (iv) as mutually
agreed from time to time between the Fund and the Custodian.

3.  Powers and  Duties of the  Custodian  with  Respect  to the  Appointment  of
Subcustodians:  The Fund hereby  authorizes  and instructs the Custodian to hold
securities,  funds and other property of the Fund which are  maintained  outside
the United States at subcustodians  appointed pursuant to the provisions of this
Section  3 (a  "Subcustodian").  The  Fund  shall  approve  in  writing  (1) the
appointment of each  Subcustodian and the  subcustodian  agreement to be entered
into between such Subcustodian and the Custodian, and (2) if the Subcustodian is
organized under the laws of a country other than the United States,  the country
or countries in which the  Subcustodian is authorized to hold  securities,  cash
and other property of the Fund. The Fund hereby further authorizes and instructs
the  Custodian  and any  Subcustodian  to utilize such  securities  depositories
located  outside the United  States which are approved in writing by the Fund to
hold securities,  cash and other property of the Fund. Upon such approval by the
Fund,  the  Custodian  is  authorized  on  behalf  of the  Fund to  notify  each
Subcustodian  of its  appointment as such. The Custodian may, at any time in its
discretion,  remove any  Subcustodian  that has been  appointed as such but will
promptly notify the Fund of any such action.

Those  Subcustodians,  and the countries  where and the securities  depositories
through which they or the Custodian may hold securities, cash and other property
of the Fund  which the Fund has  approved  to date are set forth on  Appendix  A
hereto.  Such  Appendix  shall be  amended  from time to time as  Subcustodians,
and/or countries and/or securities  depositories are changed,  added or deleted.
The Fund shall be  responsible  for  informing  the  Custodian  sufficiently  in
advance of a proposed  investment which is to be held in a country not listed on
Appendix  A, in order that there shall be  sufficient  time for the Fund to give
the approval  required by the  preceding  paragraph and for the Custodian to put
the  appropriate  arrangements  in  place  with  such  Subcustodian,   including
negotiation  of a  subcustodian  agreement and  submission of such  subcustodian
agreement to the Fund for approval.

If the Fund shall have invested in a security to be held in a country before the
foregoing  procedures have been  completed,  such security shall be held by such
agent as the Custodian may appoint.  In any event, the Custodian shall be liable


                                       12
<PAGE>

to the  Fund  for the  actions  of such  agent  if and  only to the  extent  the
Custodian  shall have  recovered from such agent for any damages caused the Fund
by such  agent.  At the  request  of the Fund,  Custodian  agrees to remove  any
securities  held on  behalf  of the  Fund by such  agent,  if  practical,  to an
approved  Subcustodian.  Under such circumstances  Custodian will collect income
and respond to corporate actions on a best efforts basis.

With respect to securities and funds held by a Subcustodian,  either directly or
indirectly   (including  by  a  securities   depository  or  clearing   agency),
notwithstanding  any provision of this  Agreement to the  contrary,  payment for
securities  purchased  and  delivery  of  securities  sold may be made  prior to
receipt of the  securities or payment,  respectively,  and securities or payment
may be received in a form, in accordance with governmental regulations, rules of
securities  depositories  and clearing  agencies,  or generally  accepted  trade
practice in the applicable local market.

In the event that any Subcustodian  appointed pursuant to the provisions of this
Section 3 fails to perform any of its obligations under the terms and conditions
of the  applicable  subcustodian  agreement,  the  Custodian  shall use its best
efforts to cause such  Subcustodian  to perform such  obligations.  In the event
that the  Custodian is unable to cause such  Subcustodian  to perform  fully its
obligations  thereunder,  the Custodian  shall forthwith upon the Fund's request
terminate such Subcustodian in accordance with the termination  provisions under
the applicable  subcustodian  agreement and, if necessary or desirable,  appoint
another subcustodian in accordance with the provisions of this Section 3. At the
election  of the  Fund,  it shall  have  the  right to  enforce,  to the  extent
permitted by the  subcustodian  agreement and  applicable  law, the  Custodian's
rights against any such  Subcustodian for loss or damage caused the Fund by such
Subcustodian.

The Custodian  will not amend any  subcustodian  agreement or agree to change or
permit any  changes  thereunder  except upon the prior  written  approval of the
Fund.

The Custodian may, at any time in its discretion upon  notification to the Fund,
terminate  any  Subcustodian  of the Fund in  accordance  with  the  termination
provisions  under the  applicable  Subcustodian  Agreement,  and at the  written
request of the Fund, the Custodian will terminate any Subcustodian in accordance
with the termination provisions under the applicable Subcustodian Agreement.


                                       13
<PAGE>

If necessary or desirable,  the Custodian may appoint  another  subcustodian  to
replace a Subcustodian  terminated pursuant to the foregoing  provisions of this
Section  3,  such  appointment  to  be  made  upon  approval  of  the  successor
subcustodian by the Fund's Board of Directors or Trustees in accordance with the
provisions of this Section 3. In the event the Custodian receives a claim from a
Subcustodian under the indemnification provisions of any subcustodian agreement,
the Custodian  shall promptly give written notice to the Fund of such claim.  No
more than  thirty  days  after  written  notice  to the Fund of the  Custodian's
intention to make such payment, the Fund will reimburse the Custodian the amount
of such  payment  except in  respect  of any  negligence  or  misconduct  of the
Custodian.

4. Assistance by the Custodian as to Certain  Matters:  The Custodian may assist
generally in the preparation of reports to Fund shareholders and others,  audits
of accounts, and other ministerial matters of like nature.

5.  Powers and Duties of the  Custodian  with  Respect to its Role as  Financial
Agent: The Fund hereby also appoints the Custodian as the Funds financial agent.
With respect to the appointment as financial agent, the Custodian shall have and
perform the following powers and duties:

A.  Records - To  create,  maintain  and retain  such  records  relating  to its
activities  and  obligations  under this  Agreement  as are  required  under the
Investment  Company  Act of  1940  and  the  rules  and  regulations  thereunder
(including  Section 31 thereof and Rules 3la-1 and 3la-2  thereunder)  and under
applicable  Federal and State tax laws. All such records will be the property of
the Fund and in the event of termination of this Agreement shall be delivered to
the successor custodian.

B. Accounts - To keep books of account and render statements,  including interim
monthly and complete quarterly  financial  statements,  or copies thereof,  from
time to time as reasonably requested by proper instructions.

C.  Access  to  Records  - The books and  records  maintained  by the  Custodian
pursuant to Sections 5A and 5B shall at all times during the Custodian's regular
business hours be open to inspection and audit by officers of, attorneys for and
auditors  employed by the Fund and by employees and agents of the Securities and
Exchange  Commission,  provided  that all such  individuals  shall  observe  all
security  requirements of the Custodian  applicable to its own employees  having
access to similar  records  within the Custodian and such  regulations as may be
reasonably imposed by the Custodian.


                                       14
<PAGE>

D.  Disbursements - Upon receipt of proper  instructions,  to pay or cause to be
paid,  insofar as funds are available  for the purpose,  bills,  statements  and
other  obligations of the Fund  (including but not limited to interest  charges,
taxes, management fees,  compensation to Fund officers and employees,  and other
operating expenses of the Fund).

6. Standard of Care and Related Matters:

A. Liability of the Custodian with Respect to Proper  Instructions;  Evidence of
Authority,  Etc.  The  Custodian  shall not be liable  for any  action  taken or
omitted in  reliance  upon proper  instructions  believed by it to be genuine or
upon any other written notice, request, direction,  instruction,  certificate or
other instrument  believed by it to be genuine and signed by the proper party or
parties.

The Secretary or Assistant  Secretary of the Fund shall certify to the Custodian
the names,  signatures and scope of authority of all persons  authorized to give
proper instructions or any other such notice, request,  direction,  instruction,
certificate or instrument on behalf of the Fund, the names and signatures of the
officers of the Fund, the name and address of the Shareholder  Servicing  Agent,
and any  resolutions,  votes,  instructions or directions of the Fund's Board of
Directors  or Trustees or  shareholders.  Such  certificate  may be accepted and
relied  upon by the  Custodian  as  conclusive  evidence  of the facts set forth
therein  and may be  considered  in full  force and  effect  until  receipt of a
similar certificate to the contrary.

So long as and to the extent that it is in the exercise of reasonable  care, the
Custodian shall not be responsible for the title, validity or genuineness of any
property or evidence of title thereto received by it or delivered by it pursuant
to this Agreement.

The Custodian shall be entitled,  at the expense of the Fund, to receive and act
upon advice of (i) counsel  regularly  retained by the  Custodian  in respect of
custodian matters, (ii) counsel for the Fund, or (iii) such other counsel as the
Fund and the  Custodian  may agree upon,  with respect to all  matters,  and the
Custodian shall be without  liability for any action reasonably taken or omitted
pursuant to such advice.

B.  Liability of the Custodian  with Respect to Use of Securities  System - With
respect to the portfolio securities, cash and other property of the Fund held by
a Securities System, the Custodian shall be liable to the Fund only for any loss
or damage to the Fund resulting  from use of the Securities  System if caused by
any negligence,  misfeasance or misconduct of the Custodian or any of its agents
or of any of its or their  employees or from any failure of the Custodian or any
such  agent to  enforce  effectively  such  rights  as it may have  against  the
Securities  System.  At the  election  of the Fund,  it shall be  entitled to be
subrogated to the rights of the Custodian  with respect to any claim against the
Securities  System  or any  other  person  which  the  Custodian  may  have as a
consequence of any such loss or damage to the Fund if and to the extent that the
Fund has not been made whole for any such loss or damage.

C. Liability of the Custodian with Respect to Subcustodians  The Custodian shall
be liable to the Fund for any loss or damage to the Fund caused by or  resulting
from the acts or  omissions  of any  Subcustodian  to the extent  that under the
terms set forth in the  subcustodian  agreement  between the  Custodian  and the
Subcustodian  (or in the subcustodian  agreement  between a Subcustodian and any
secondary Subcustodian), the Subcustodian (or secondary Subcustodian) has failed
to  perform in  accordance  with the  standard  of  conduct  imposed  under such
subcustodian  agreement  as  determined  in  accordance  with  the law  which is


                                       15
<PAGE>

adjudicated to govern such agreement and in accordance with any determination of
any court as to the duties of said Subcustodian pursuant to said agreement.  The
Custodian  shall  also  be  liable  to  the  Fund  for  its  own  negligence  in
transmitting  any  instructions  received  by it from  the  Fund and for its own
negligence in connection with the delivery of any securities or funds held by it
to any Subcustodian.

D. Standard of Care;  Liability;  Indemnification  - The Custodian shall be held
only to the  exercise of  reasonable  care and  diligence  in  carrying  out the
provisions of this  Agreement,  provided that the Custodian shall not thereby be
required to take any action which is in contravention of any applicable law. The
Fund agrees to indemnify  and hold  harmless the Custodian and its nominees from
all claims and liabilities (including counsel fees) incurred or assessed against
it or its nominees in connection with the performance of this Agreement,  except
such as may arise from its or its nominee's  breach of the relevant  standard of
conduct  set  forth  in  this   Agreement.   Without   limiting  the   foregoing
indemnification  obligation  of the  Fund,  the Fund  agrees  to  indemnify  the
Custodian and any nominee in whose name  portfolio  securities or other property
of the Fund is  registered  against any  liability the Custodian or such nominee
may incur by reason of taxes  assessed to the Custodian or such nominee or other
costs,  liability or expense incurred by the Custodian or such nominee resulting
directly or indirectly from the fact that portfolio securities or other property
of the Fund is registered in the name of the Custodian or such nominee.

It is also  understood  that the  Custodian  shall  not be  liable  for any loss
involving any  securities,  currencies,  deposits or other property of the Fund,
whether maintained by it, a Subcustodian,  a securities depository,  an agent of
the Custodian or a Subcustodian,  a Securities System, or a Banking Institution,
or for any loss arising from a foreign currency  transaction or contract,  where
the loss  results  from a Sovereign  Risk or where the entity  maintaining  such
securities,  currencies,  deposits or other  property  of the Fund,  whether the
Custodian, a Subcustodian, a securities depository, an agent of the Custodian or
a  Subcustodian,  a Securities  System or a Banking  Institution,  has exercised
reasonable care  maintaining such property or in connection with the transaction
involving  such  property.  A  "Sovereign  Risk"  shall  mean   nationalization,
expropriation,  devaluation,  revaluation,  confiscation, seizure, cancellation,
destruction  or similar  action by any  governmental  authority,  de facto or de
jure;  or  enactment,  promulgation,  imposition  or  enforcement  by  any  such
governmental  authority  of currency  restrictions,  exchange  controls,  taxes,


                                       16
<PAGE>

levies  or  other  charges  affecting  the  Fund's  property;  or  acts  of war,
terrorism,  insurrection  or  revolution;  or any other act or event  beyond the
Custodian's control.

E.  Reimbursement  of  Advances - The  Custodian  shall be  entitled  to receive
reimbursement  from the Fund on demand, in the manner provided in Section 7, for
its cash disbursements, expenses and charges (including the fees and expenses of
any Subcustodian or any Agent) in connection with this Agreement,  but excluding
salaries and usual overhead expenses.

F.  Security  for  Obligations  to  Custodian  - If the Fund shall  require  the
Custodian to advance cash or  securities  for any purpose for the benefit of the
Fund,  including  in  connection  with  foreign  exchange  contracts  or options
(collectively,  an "Advance") , or if the Custodian or any nominee thereof shall
incur or be  assessed  any  taxes,  charges,  expenses,  assessments,  claims or
liabilities in connection with the performance of this Agreement (collectively a
"Liability") , except such as may arise from its or such nominee's breach of the
relevant standard of conduct set forth in this Agreement, then in such event any
property  at any time held for the  account  of the Fund by the  Custodian  or a
Subcustodian  shall be security for such  Advance or  Liability  and if the Fund
shall fail to repay or indemnify the Custodian promptly,  the Custodian shall be
entitled  to utilize  available  cash and to  dispose  of the  Fund's  property,
including  securities,  to the  extent  necessary  to  obtain  reimbursement  or
indemnification.

G.  Appointment  of  Agents  - The  Custodian  may at any  time or  times in its
discretion  appoint (and may at any time remove) any other bank or trust company
as its agent (an "Agent") to carry out such of the  provisions of this Agreement
as the  Custodian  may from time to time  direct,  provided,  however,  that the
appointment of such Agent (other than an Agent  appointed  pursuant to the third
paragraph  of  Section  3)  shall  not  relieve  the  Custodian  of  any  of its
responsibilities under this agreement.

H. Powers of Attorney - Upon  request,  the Fund shall  deliver to the Custodian
such proxies,  powers of attorney or other  instruments as may be reasonable and
necessary or desirable in connection  with the  performance  by the Custodian or
any  Subcustodian of their  respective  obligations  under this Agreement or any
applicable subcustodian agreement.



                                       17
<PAGE>

7. Compensation of the Custodian: The Fund shall pay the Custodian a custody fee
based on such fee schedule as may from time to time be agreed upon in writing by
the  Custodian and the Fund.  Such fee,  together with all amounts for which the
Custodian is to be reimbursed in accordance  with Section 6D, shall be billed to
the Fund in such a manner as to permit  payment by a direct cash  payment to the
Custodian.

8. Termination; Successor Custodian: This Agreement shall continue in full force
and  effect  until  terminated  by  either  party by an  instrument  in  writing
delivered or mailed,  postage prepaid,  to the other party,  such termination to
take  effect  not  sooner  than  seventy  five (75) days  after the date of such
delivery or mailing. In the event of termination the Custodian shall be entitled
to receive prior to delivery of the securities, funds and other property held by
it  all  accrued  fees  and  unreimbursed  expenses  the  payment  of  which  is
contemplated  by  Sections  6D and 7, upon  receipt  by the Fund of a  statement
setting forth such fees and expenses.

In the event of the appointment of a successor custodian,  it is agreed that the
funds  and  securities  owned  by the  Fund  and  held by the  Custodian  or any
Subcustodian  shall be delivered to the successor  custodian,  and the Custodian
agrees to cooperate  with the Fund in execution of documents and  performance of
other  actions  necessary  or  desirable in order to  substitute  the  successor
custodian for the Custodian under this Agreement.

9. Amendment:  This Agreement constitutes the entire understanding and agreement
of the parties hereto with respect to the subject matter hereof. No provision of
this  Agreement  may be amended or  terminated  except by a statement in writing
signed by the party against which enforcement of the amendment or termination is
sought.

In connection with the operation of this  Agreement,  the Custodian and the Fund
may agree in writing from time to time on such provisions  interpretative  of or
in addition to the provisions of this Agreement as may in their joint opinion be
consistent  with the  general  tenor of this  Agreement.  No  interpretative  or
additional provisions made as provided in the preceding sentence shall be deemed
to be an amendment of this Agreement.

The section  headings in this  Agreement are for the  convenience of the parties
and in no way alter, amend, limit or restrict the contractual obligations of the
parties set forth in this Agreement.


                                       18
<PAGE>

10. Governing Law: This instrument is executed and delivered in The Commonwealth
of Massachusetts and shall be governed by and construed according to the laws of
said Commonwealth.

11. Notices:  Notices and other writings  delivered or mailed postage prepaid to
the Fund addressed to the Fund at 60 State Street,  Boston,  Massachusetts 02109
or to such other  address as the Fund may have  designated  to the  Custodian in
writing, or to the Custodian at 40 Water Street,  Boston,  Massachusetts  02109,
Attention:  Manager,  Securities  Department,  or to such  other  address as the
Custodian may have  designated  to the Fund in writing,  shall be deemed to have
been properly delivered or given hereunder to the respective addressee.

12. Binding  Effect:  This Agreement  shall be binding on and shall inure to the
benefit  of the Fund and the  Custodian  and  their  respective  successors  and
assigns,  provided that neither party hereto may assign this Agreement or any of
its rights or  obligations  hereunder  without the prior written  consent of the
other party.

13. Counterparts:  This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original. This Agreement shall become effective
when one or more  counterparts  have been  signed and  delivered  by each of the
parties.


IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed
in its name and behalf on the day and year first above written.



PIONEER WINTHROP REAL ESTATE         BROWN BROTHERS HARRIMAN & CO.
INVESTMENT FUND



By                                   per pro


                                       19


                      INVESTMENT COMPANY SERVICE AGREEMENT

                                 April 28, 1995


         Pioneer Winthrop Real Estate Investment Fund, a Delaware business trust
with its principal place of business at 60 State Street,  Boston,  Massachusetts
02109  ("Customer")  and  Pioneering  Services   Corporation,   a  Massachusetts
corporation ("PSC"), hereby agree as follows:

         1. SERVICES TO BE PROVIDED BY PSC.  During the term of this  Agreement,
PSC will provide to each series of shares of beneficial  interest (the "Series")
of Customer, which may be established,  from time to time (the "Account"),  with
the services described in Exhibits A, B, C, and D (collectively, the "Exhibits")
that are attached hereto and incorporated herein by reference.  It is understood
that PSC may subcontract any of such services to one or more firms designated by
PSC,  provided  that PSC (i) shall be solely  responsible  for all  compensation
payable  to any such firm and (ii) shall be liable to  Customer  for the acts or
omissions of any such firm to the same extent as PSC would be liable to Customer
with respect to any such act or omission hereunder.

         2. EFFECTIVE DATE.  This Agreement  shall become  effective on the date
hereof  (the  "Effective  Date")  and  shall  continue  in  effect  until  it is
terminated in accordance with Section 11 below.

         3. DELIVERY, VERIFICATION AND RECEIPT FOR DATA AND ASSETS. Prior to the
Effective Date, Customer agrees to deliver to PSC all such  documentation,  data
and  materials  as PSC may  reasonably  prescribe  to enable it to  perform  the
services contemplated by this Agreement. If PSC so requests,  Customer agrees to
confirm the accuracy of any starting  records of Customer's  assets and accounts
produced from PSC's computer or held in other  recording  systems.  In the event
Customer  does not,  prior to the Effective  Date,  comply fully with any of the
foregoing  provisions  of this  Sectiony3,  the date for  commencement  of PSC's
services  hereunder  may be  postponed  by PSC until such  compliance  has taken
place.

         Customer  shall,  from time to time,  while this Agreement is in effect
deliver all such  materials  and data as may be necessary or desirable to enable
PSC to perform its  services  hereunder,  including  without  limitation,  those
described in Section 12 hereof.

         4.  REPORTS  AND  MAINTENANCE  OF RECORDS BY PSC.  PSC will  furnish to
Customer and to properly authorized auditors, examiners, distributors,  dealers,
underwriters, salesmen, insurance companies, investors, and others designated by
Customer in writing,  such books,  any and all records and reports at such times
<PAGE>

as are prescribed  for each service in the Exhibits  attached  hereto.  Customer
agrees to examine or to ask any other authorized  recipient to examine each such
report or copy  promptly  and will report or cause to be reported  any errors or
discrepancies  therein of which Customer then has any knowledge.  PSC may at its
option at any time, and shall  forthwith upon  Customer's  demand,  turn over to
Customer and cease to retain in PSC's files,  any and all records and  documents
created and  maintained  by PSC pursuant to this  Agreement  which are no longer
needed by PSC in the performance of its services or for its protection.

                  If not so turned over to Customer,  such documents and reports
will be  retained  by PSC for six years  from the year of  creation,  during the
first two of which the same will be in readily  accessible  form.  At the end of
six years,  such records and  documents,  will be turned over to Customer by PSC
unless Customer authorizes their destruction.

         5. PSC'S DUTY OF CARE.  PSC shall at all time use  reasonable  care and
act in good  faith in  performing  its  duties  hereunder.  PSC  shall  incur no
liability to Customer in connection with its  performance of services  hereunder
except to the extent that it does not comply with the foregoing standards.

         PSC  shall at all  times  adhere  to  various  procedures  and  systems
consistent  with  industry  standards in order to safeguard  Customer's  checks,
records and other data from loss or damage  attributable  to fire or theft.  PSC
shall maintain insurance adequate to protect against the costs of reconstructing
checks,  records  and other  data in the  event of such  loss and  shall  notify
Customer in the event of a material  adverse change in such insurance  coverage.
In the event of damage or loss occurring to Customer's records or data such that
PSC is unable  to meet the  terms of this  Agreement,  PSC  shall  transfer  all
records and data to a transfer  agent of  Customer's  choosing  upon  Customer's
written authorization to do so.

         Without  limiting the  generality  of the  foregoing,  PSC shall not be
liable or responsible for delays or errors  occurring by reason of circumstances
beyond its  control  including  acts of civil,  military  or banking  authority,
national  emergencies,  labor  difficulties,  fire, flood or other catastrophes,
acts of God, insurrection, war, riots, failure of transportation,  communication
or power supply.

         6.  CONFIDENTIALITY.   PSC  will  keep  confidential  all  records  and
information  provided by Customer or by the  shareholders of the Account to PSC,
except to the extent disclosures are required by this Agreement, are required by


                                       2
<PAGE>

the  Customer's  Prospectus  and  Statement of  Additional  Information,  or are
required  by a  valid  subpoena  or  warrant  issued  by a  court  of  competent
jurisdiction or by a state or federal agency or governmental authority.

         7. CUSTOMER  INSPECTION.  Upon reasonable  notice, in writing signed by
Customer,  PSC shall make available,  during regular business hours, all records
and other data created and maintained  pursuant to this Agreement for reasonable
audit and  inspection by Customer or  Customer's  agents,  including  reasonable
visitation by Customer or Customer's agent, including inspecting PSC's operation
facilities.  PSC shall not be liable for injury to or responsible in any way for
the safety of any individual  visiting PSC's  facilities  under the authority of
this  section.   Customer  will  keep   confidential  and  will  cause  to  keep
confidential all confidential information obtained by its employees or agents or
any other individual representing Customer while on PSC's premises. Confidential
information shall include (1) any information of whatever nature regarding PSC's
operations, security procedures, and data processing capabilities, (2) financial
information  regarding  PSC,  its  affiliates,  or  subsidiaries,  and  (3)  any
information of whatever kind or  description  regarding any customer of PSC, its
affiliates or subsidiaries.

         8. RELIANCE BY PSC ON INSTRUCTIONS AND ADVICE;  INDEMNITY. PSC shall be
entitled  to seek  advice of  Customer's  legal  counsel  with  respect to PSC's
responsibilities  and  duties  hereunder  and  shall in no event  be  liable  to
Customer for any action taken pursuant to such advice, except to the extent that
Customer's legal counsel determines in its sole discretion that the rendering of
advice to PSC would result in a conflict of interest.

         Whenever PSC is authorized to take action hereunder  pursuant to proper
instructions from Customer,  PSC shall be entitled to rely upon any certificate,
letter or other  instrument or telephone call  reasonably  believed by PSC to be
genuine  and to have  been  properly  made or  signed  by an  officer  or  other
authorized  agent of  Customer,  and shall be entitled to receive as  conclusive
proof of any  fact or  matter  required  to be  ascertained  by it  hereunder  a
certificate  signed by an officer of Customer or any other person  authorized by
Customer's Board of Trustees.

         Subject to the  provisions of Sectiony13  of this  Agreement,  Customer
agrees to indemnify and hold PSC, its  employees,  agents and nominees  harmless
from any and all claims,  demands,  actions  and suits,  whether  groundless  or
otherwise,  and from and against  any and all  judgments,  liabilities,  losses,
damages,  costs,  charges,  counsel fees and other  expenses of every nature and


                                       3
<PAGE>

character  arising out of or in any way relating to PSC's  action or  non-action
upon information, instructions or requests given or made to PSC by Customer with
respect to the Account.

         Notwithstanding the above,  whenever Customer may be asked to indemnify
or hold PSC harmless,  Customer shall be advised of all pertinent  facts arising
from the situation in question.  Additionally,  PSC will use reasonable  care to
identify and notify Customer  promptly  concerning any situation which presents,
actually or potentially, a claim for indemnification against Customer.  Customer
shall have the option to defend PSC  against any claim for which PSC is entitled
to  indemnification  from  Customer  under  the terms  hereof,  and in the event
Customer so elects, it will notify PSC and, thereupon,  Customer shall take over
complete  defense of the claim and PSC shall  sustain no further  legal or other
expenses  in such a  situation  for  which  indemnification  shall be  sought or
entitled.  PSC may in no event  confess any claim or make any  compromise in any
case in which  Customer  will be asked to indemnify  PSC except with  Customer's
prior written consent.

         9.  MAINTENANCE  OF DEPOSIT  ACCOUNTS.  PSC shall maintain on behalf of
Customer such deposit  accounts as are necessary or desirable  from time to time
to enable PSC to carry out the provisions of this Agreement.

         10. COMPENSATION AND REIMBURSEMENT TO PSC. For the services rendered by
PSC under  this  Agreement,  Customer  agrees to pay an annual fee of $22.00 per
account  to PSC,  such fee to be  payable  in  equal  monthly  installments.  In
addition,  Customer shall reimburse PSC monthly for out-of-pocket  expenses such
as postage, forms,  envelopes,  checks,  "outside" mailings,  telephone line and
other charges,  mailgrams,  mail insurance on  certificates  and data processing
file recovery insurance.

         11. TERMINATION.  Either PSC or Customer may at any time terminate this
Agreement by giving 90 days' prior written notice to the other.

         After the date of termination,  for so long as PSC in fact continues to
perform any one or more of the services  contemplated  by this  Agreement or any
exhibit hereto,  the provisions of this Agreement,  including without limitation
the provisions of Section 8 dealing with indemnification, shall where applicable
continue in full force and effect.

         12. REQUIRED DOCUMENTS.  Customer agrees to furnish to PSC prior to the
Effective Date the following (to the extent not previously provided):


                                       4
<PAGE>

          A.   Two (2) copies of the  Declaration  of Trust of Customer,  and of
               any amendments  thereto,  certified by the proper official of the
               State where the Declaration of Trust is filed.

          B.   Two (2) copies of the following documents, currently certified by
               the Secretary of Customer:

               a.   Customer's By-laws and any amendment thereto.

               b.   Certified  copies  of  resolutions  of  Customer's  Board of
                    Trustees covering the following matters.

                    (1)  Approval of this Agreement.

                    (2)  Authorization  of  specified  officers of  Customers to
                         instruct  PSC  hereunder   (if  different   from  other
                         officers of Customer  previously  specified by Customer
                         as to other Customer accounts being serviced by PSC).

          C.   List  of  all  officers  of  Customer   together   with  specimen
               signatures  of those  officers who are  authorized  to sign share
               certificates and to instruct PSC in all other matters.

          D.   Two (2) copies of the following:

               a.   Prospectus
               b.   Statement of Additional Information
               c.   Management Agreement
               d.   Registration Statement

          E.   Opinion of counsel for  Customer as to the due  authorization  by
               and  binding   effect  of  this   Agreement  on   Customer,   the
               applicability of the Securities Act of 1933, as amended,  and the
               Investment  Company Act of 1940, as amended,  and the approval by
               such public authorities as may be prerequisite to lawful sale and
               deliver in the various states.

          F.   Amendments  to, and  changes in, any of the  foregoing  forthwith
               upon such amendments and changes being available,  but in no case
               later than the effective date.

         13.  INDEMNIFICATION.  The parties to this  Agreement  acknowledge  and
agree  that  all  liabilities  arising,  directly  or  indirectly,   under  this
Agreement,  of any and every nature  whatsoever,  including without  limitation,
liabilities arising in connection with any agreement of Customer or its Trustees


                                       5
<PAGE>

set forth herein to indemnify  any party to this  Agreement or any other person,
shall be satisfied  out of the assets of the Account  first and then of Customer
and that no  Trustee,  officer  or holder of shares of  beneficial  interest  of
Customer  shall  be  personally  liable  for any of the  foregoing  liabilities.
Customer's Certificate of Trust, as amended from time to time, is on file in the
Office of the Secretary of State of the State of Delaware.  Such  Certificate of
Trust and  Customer's  Declaration  of Trust  describe in detail the  respective
responsibilities  and  limitations on liability of the Trustees,  officers,  and
holders of shares of beneficial interest of Customer.

         14. MISCELLANEOUS.  In connection with the operation of this Agreement,
PSC and Customer may agree from time to time on such provisions  interpretive of
or in addition to the provisions of this Agreement as may in their joint opinion
be consistent with the general tenor of this Agreement. Any such interpretive or
additional  provisions are to be signed by both parties and annexed hereto,  but
no such  provision  shall  contravene  any  applicable  Federal and state law or
regulation,  and no such  provision  shall be deemed to be an  amendment of this
Agreement.

         This  Agreement  shall be construed in accordance  with the laws of The
Commonwealth of Massachusetts.

         IN WITNESS  WHEREOF,  Customer and PSC have caused this Agreement to be
executed in their respective names by their respective  officers  thereunto duly
authorized as of the date first written above.

ATTEST:                                PIONEERING SERVICES CORPORATION



/s/Joseph P. Barri                     /s/William H. Smith, Jr.
Joseph P. Barri, Clerk                 William H. Smith, Jr.
                                       President


                                       PIONEER WINTHROP REAL ESTATE FUND
                                       (the Delaware business trust)


/s/Joseph P. Barri                     /s/John F. Cogan, Jr.
Joseph P. Barri, Secretary             John F. Cogan, Jr.
                                       Chief Executive Officer





                                       6
<PAGE>


              EXHIBIT A - TO INVESTMENT COMPANY SERVICE AGREEMENT



Shareholder Account Service:

As Servicing  Agent for fund accounts and in accordance  with the  provisions of
the standard fund application and Customer's prospectus, PSC will:

          1.   Open, maintain and close accounts.

          2.   Purchase shares for the shareholder.

          3.   Out of the money  received  in  payment  for sales of  Customer's
               shares pay to the  Customer's  custodian  the net asset value per
               share  and  pay  to the  underwriter  and  to  the  dealer  their
               commission, if any, on a bimonthly basis.

          4.   Redeem shares by systematic withdrawal orders. (See Exhibit B)

          5.   Issue  share  certificates,  upon  instruction,   resulting  from
               withdrawals from share accounts (It is the policy of PSC to issue
               share   certificates  only  upon  request  of  the  shareholder).
               Maintain records showing name,  address,  certificate numbers and
               number of shares.

          6.   Deposit  certificates to shareholder accounts when furnished with
               such documents as PSC deems necessary to authorize the deposit.

          7.   Reinvest  or  disburse  dividends  and other  distributions  upon
               direction of shareholder.

          8.   Establish the proper registration of ownership of shares.

          9.   Pass upon the adequacy of documents submitted by a shareholder or
               his  legal   representative   to  substantiate  the  transfer  of
               ownership of shares from the registered owner to transferees.
    
                                  -A1-

<PAGE>

          10.  Make  transfers  from time to time upon the books of the Customer
               in  accordance  with  properly  executed  transfer   instructions
               furnished to PSC.

          11.  Upon  receiving  appropriate  detailed  instructions  and written
               materials  prepared  by Customer  and,  where  applicable,  proxy
               proofs checked by Customer, mail shareholder reports, proxies and
               related  materials of suitable  design for  automatic  enclosing,
               receive  and  tabulate  executed  proxies,  and furnish an annual
               meeting list of shareholders when required.

          12.  Respond to shareholder inquiries in a timely manner.

          13.  Maintain dealer and salesperson records.

          14.  Maintain and furnish to Customer such shareholder  information as
               Customer may reasonably  request for the purpose of compliance by
               Customer with the  applicable  tax and  securities law of various
               jurisdictions.

          15.  Mail  confirmations  of  transactions to shareholders in a timely
               fashion.

          16.  Provide Customer with such information  regarding  correspondence
               as  well  as  enable   Customer  to  comply  with  related  N-SAR
               requirements.

          17.  Maintain continuous proof of the outstanding shares of Customer.

          18.  Solicit taxpayer identification numbers.

          19.  Provide  data  to  enable  Customer  to file  abandoned  property
               reports for those  accounts that have been  indicated by the Post
               Office  to be not at the  address  of record  with no  forwarding
               address.

          20.  Maintain bank accounts and reconcile same on a monthly basis.

          21.  Provide  management  information  reports on a quarterly basis to
               Customer's  Board of  Trustees/Directors  outlining  the level of
               service provided.

          22.  Provide sale/statistical reporting for purposes of providing fund
               management   with   information   to  maximizing  the  return  to
               shareholders.

                                      -A2-

<PAGE>


              EXHIBIT B - TO INVESTMENT COMPANY SERVICE AGREEMENT



Redemption Service:

In accordance  with the  provisions of the Customer's  Prospectus,  as servicing
agent for the redemptions, PSC will:

          1.   Where applicable, establish accounts payable based on information
               furnished  to PSC on behalf of  Customer  (i.e.,  copies of trade
               confirmations  and other documents  deemed necessary or desirable
               by PSC on the first business day following the trade date).

          2.   Receive for redemption either:

               a.   Share certificates,  supported by appropriate documentation;
                    or

               b.   Written   or   telephone   authorization   (where  no  share
                    certificates are issued).

          3.   Verify  there are  sufficient  available  shares in an account to
               cover redemption requests.

          4.   Transfer  the  redeemed  or  repurchased   shares  to  Customer's
               treasury share account or, if applicable,  cancel such shares for
               retirement.

          5.   Pay  the  applicable   redemption  or  repurchase  price  to  the
               shareholder  in  accordance   with   Customer's   Prospectus  and
               Declaration  of Trust  on or  before  the  seventh  calendar  day
               succeeding any receipt of certificates or requests for redemption
               or repurchase in "good order" as defined in the Prospectus.

          6.   Notify  Customer and the underwriter on behalf of Customer of the
               total  number of shares  presented  and covered by such  requests
               within a reasonable period of time following receipt.

          7.   Promptly  notify  the  shareholder  if any  such  certificate  or
               request  for  redemption  or  repurchase  is not in "good  order"
               together with notice of the documents required to comply with the
               good order standards. Upon receipt of the necessary documents PSC
               shall effect such redemption at the net asset value applicable at
               the date and time of receipt of such documents.

                                      -B1-

<PAGE>

          8.   Produce periodic reports of unsettled items, if any.

          9.   Adjust  unsettled  items,  if  any,  relative  to  dividends  and
               distributions.

          10.  Report to Customer any late redemptions which must be included in
               Customer's N-SAR.


                                      -B2-
<PAGE>


              EXHIBIT C - TO INVESTMENT COMPANY SERVICE AGREEMENT



Exchange Service:

          1.   Receive and process  exchanges in accordance with a duly executed
               exchange  authorization.  PSC will redeem existing shares and use
               the proceeds to purchase new shares. Shares of Customer purchased
               directly or acquired  through  reinvestment  of dividends on such
               shares may be exchanged  for shares of other Pioneer funds (which
               funds have sales charges) only by payment of the applicable sales
               charge, if any, as described in Customer's Prospectus.  Shares of
               Customer  acquired  by  exchange  and  through   reinvestment  of
               dividends on such shares may be  re-exchanged  to another Pioneer
               fund at their respective net asset values.

          2.   Make authorized deductions of fees, if any.

          3.   Register new shares  identically with the shares  surrendered for
               exchange.  Mail new  shares  certificates,  if  requested,  or an
               account statement  confirming the exchange by first class mail to
               the address of record.

          4.   Maintain a record of unprocessed exchanges and produce a periodic
               report.



- -C1-
<PAGE>


              EXHIBIT D - TO INVESTMENT COMPANY SERVICE AGREEMENT



Income Accrual and Disbursing Service:

          1.   Distribute  income dividends  and/or capital gain  distributions,
               either  through  reinvestment  or in  cash,  in  accordance  with
               shareholder instructions.

          2.   On  the  mailing  date,  Customer  shall  make  available  to PSC
               collected funds to make such distribution.

          3.   Adjust unsettled items relative to dividends and distribution.

          4.   Reconcile dividends and/or distributions with Customer.

          5.   Prepare and file annual Federal and State information  returns of
               distributions   and,  in  the  case  of  Federal  returns,   mail
               information  copies to  shareholders  and report and pay  Federal
               income taxes  withheld from  distributions  made to  non-resident
               aliens.




                                      -D1-



                                 April 20, 1995






Pioneer Winthrop Real Estate
  Investment Fund
60 State Street
Boston, Massachusetts  02109

          Re:  Pioneer Winthrop Real Estate Investment Fund

Ladies and Gentlemen:

          We have acted as special  Delaware  counsel to Pioneer  Winthrop  Real
Estate Investment Fund, a Delaware  business trust (the "Trust"),  in connection
with certain matters  relating to the formation of the Trust and the issuance of
Shares of beneficial  interest in the Trust.  Capitalized  terms used herein and
not  otherwise  herein  defined  are  used  as  defined  in  the  Agreement  and
Declaration  of  Trust  of the  Trust  dated  March  10,  1995  (the  "Governing
Instrument").

          In rendering  this opinion,  we have examined  copies of the following
documents,  each in the form  provided  to us: the  Certificate  of Trust of the
Trust as filed in the Office of the  Secretary of State of the State of Delaware
(the "Recording  Office") on April 19, 1995 (the  "Certificate");  the Governing
Instrument; the By-laws of the Trust; certain resolutions of the Trustees of the
Trust;  an Adoption Of And Amendment To Notification Of Registration to be filed
with the Securities and Exchange Commission on April 25, 1995 by which the Trust
will adopt the  Notification of  Registration  Filed Pursuant to Section 8(a) of
the Investment  Company Act of 1940 on Form N-8A of Pioneer Winthrop Real Estate
Investment Fund, a Massachusetts business trust; Post- Effective Amendment No. 4
to the  Registration  Statement  on Form N- 1A of Pioneer  Winthrop  Real Estate
Investment  Fund, a Massachusetts  business trust, by which the Trust will adopt
such  Registration  Statement  to be filed  with  the  Securities  and  Exchange
Commission on April 25, 1995 (the  "Post-Effective  Amendment");  and a certifi-
cation of good  standing  of the  Trust  obtained  as of a recent  date from the
Recording Office. In such  examinations,  we have assumed the genuineness of all
signatures,  the conformity to original documents of all documents  submitted to
<PAGE>

Pioneer Winthrop Real Estate Investment Fund
April 20, 1995
Page 2

us as copies or drafts of documents to be  executed,  and the legal  capacity of
natural persons to complete the execution of documents.  We have further assumed
for the  purpose  of this  opinion:  (i) the due  authorization,  execution  and
delivery   by,  or  on  behalf  of,   each  of  the   parties   thereto  of  the
above-referenced  instruments,  certificates  and  other  documents,  and of all
documents  contemplated by the Governing Instrument,  the By-laws and applicable
resolutions  of the  Trustees  to be executed  by  investors  desiring to become
Shareholders;  (ii) the payment of consideration for Shares, and the application
of such consideration,  as provided in the Governing Instrument,  and compliance
with the other terms,  conditions  and  restrictions  set forth in the Governing
Instrument  and all  applicable  resolutions  of the  Trustees  of the  Trust in
connection  with the  issuance of Shares  (including,  without  limitation,  the
taking of all appropriate  action by the Trustees to designate  Series of Shares
and the rights and  preferences  attributable  thereto  as  contemplated  by the
Governing  Instrument);  (iii)  that  appropriate  notation  of  the  names  and
addresses  of, the number of Shares  held by, and the  consider-  ation paid by,
Shareholders will be maintained in the appropriate registers and other books and
records of the Trust in connection with the issuance,  redemption or transfer of
Shares;  (iv)  that no  event  has  occurred  subsequent  to the  filing  of the
Certificate that would cause a termination or  reorganization of the Trust under
Section 4 or Section 5 of Article IX of the Governing  Instrument;  (v) that the
activities of the Trust have been and will be conducted in  accordance  with the
terms of the Governing  Instrument and the Delaware  Business Trust Act, 12 Del.
C. 3801 et seq.  (the  "Delaware  Act");  and (vi)  that  each of the  documents
examined  by  us is in  full  force  and  effect  and  has  not  been  modified,
supplemented or otherwise  amended.  No opinion is expressed herein with respect
to the requirements of, or compliance with,  federal or state securities or blue
sky laws.  Further,  we express no opinion on the sufficiency or accuracy of any
registration or offering  documentation  relating to the Trust or the Shares. As
to any facts material to our opinion,  other than those assumed,  we have relied
without independent  investigation on the above-referenced  documents and on the
accuracy, as of the date hereof, of the matters therein contained.

          Based on and subject to the foregoing,  and limited in all respects to
matters of Delaware law, it is our opinion that:

          1. The Trust is a duly organized and validly  existing  business trust
in good standing under the laws of the State of Delaware.

          2. The Shares of the Trust,  when issued to Shareholders in accordance
with  the  terms,  conditions,  requirements  and  procedures  set  forth in the
<PAGE>

Pioneer Winthrop Real Estate Investment Fund
April 20, 1995
Page 2

Governing   Instrument,   will  constitute   legally  issued,   fully  paid  and
non-assessable Shares of beneficial interest in the Trust.

          3. Under the Delaware Act and the terms of the  Governing  Instrument,
each  Shareholder of the Trust,  in such capacity,  will be entitled to the same
limitation  of personal  liability as that extended to  stockholders  of private
corporations for profit organized under the general corporation law of the State
of Delaware;  provided,  however, that we express no opinion with respect to the
liability of any  Shareholder  who is, was or may become a named  Trustee of the
Trust.  Neither  the  existence  nor  exercise of the voting  rights  granted to
Shareholders under the Governing Instrument will, of itself, cause a Shareholder
to be deemed a trustee of the Trust under the Delaware  Act.  Notwith-  standing
the  foregoing  or the opinion  expressed  in  paragraph 2 above,  we note that,
pursuant to Section 2 of Article VIII of the Governing Instrument,  the Trustees
have the power to cause Shareholders, or Shareholders of a particular Series, to
pay certain custodian,  transfer,  servicing or similar agent charges by setting
off the  same  against  declared  but  unpaid  dividends  or by  reducing  Share
ownership (or by both means).

          We  understand   that  the  Trust  is  currently  in  the  process  of
registering or qualifying Shares in various states, and we hereby consent to the
filing of a copy of this  opinion  with the  securities  administrators  of such
states  and  with  the  Securities  and  Exchange  Commission  as  part  of  the
Post-Effective  Amendment.  In giving this consent, we do not thereby admit that
we come within the category of persons whose consent is required under Section 7
of the Securities Act of 1933, as amended, or the rules and regula- tions of the
Securities  and  Exchange  Commission  thereunder.  Except as  provided  in this
paragraph,  the opinion set forth above is  expressed  solely for the benefit of
the  addressee  hereof and may not be relied upon by, or filed  with,  any other
person or entity for any purpose without our prior written consent.

                                Sincerely,



                                /s/MORRIS, NICHOLS, ARSHT & TUNNELL
                                MORRIS, NICHOLS, ARSHT & TUNNELL




                   CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS



As independent  public  accountants,  we hereby consent to the use of our report
(and to all  references  to our firm)  included in or made a part of the Pioneer
Winthrop  Real  Estate  Investment  Fund  Post-Effective   Amendment  No.  4  to
Registration  Statement  File No.  33-65822 and Amendment No. 5 to  Registration
Statement File No. 811-7870.




                                          ARTHUR ANDERSEN LLP




Boston, Massachusetts
April 20, 1995




                                  [LOGO]

          Pioneer
          Winthrop
          Real Estate
          Investment
          Fund

          ANNUAL REPORT
          DECEMBER 31, 1994





<PAGE>



PIONEER WINTHROP REAL ESTATE INVESTMENT FUND


FELLOW SHAREOWNERS,

This report to shareowners of Pioneer Winthrop Real Estate Investment Fund
details the Fund's performance for the six months ended December 31, 1994. As
you may have noticed, we have changed the Fund's fiscal year end to December 31
from June 30. This change, which is designed to simplify the Fund's accounting
procedures, will not affect the Fund's objectives or investment policies.
Following is a look at events that affected your Fund and the real estate
investment trust (REIT) market since we reported to you for the year ended
June 30, 1994.

                        A Period of Rising Interest Rates

The most dominant factor in financial markets over the past six months was
increasing interest rates. The Federal Reserve (the Fed) continued its active
stance to cool economic growth, raising short-term rates twice during the past
six months. The Fed moved the federal funds rate in August and November, pushing
short-term interest rates to a three-year high of 5.5%. (On February 1, the Fed
acted again, lifting short-term rates to 6%.)

Real estate investment trusts and other income-providing investments encountered
a good deal of volatility during this period. Because such securities tend to be
highly sensitive to interest rates, investors moved away from REITs and similar
income-producing investments. REITs, utility stocks, financial stocks, as well
as most bond investments, were hurt by rising interest rates and investor fears.
Of course, the upside was that these securities -- including REITs -- generally
produced higher income yields than they had in some time. These high yields,
coupled with extremely attractive prices, created a strong demand for REITs in
December. This sharply lifted REIT prices as 1994 closed, helping offset the
price declines that had occurred during most of the period.

                             How Your Fund Performed

For the six months ended December 31, 1994, we report the following results for
Pioneer Winthrop Real Estate Investment Fund:

o    Shareowners received total dividends of $0.35 per share, and a capital
     gains distribution of $0.025 per share, bringing the total payout to $0.375
     for the period. While most of the dividend distributions represented
     current income from holdings in the Fund's portfolio, a portion represented
     the depreciation of properties owned by companies in the portfolio. Because
     we passed on the cash flows the Fund received from its holdings (whether
     these cash flows came from current income or property depreciation), a
     portion of the income Fund shareowners received was non-taxable. For 1994,
     approximately 30% of distributions paid fell into this category. Going
     forward, we expect that some portion of the Fund's ongoing distributions
     will be non-taxable.

o    Net asset value stood at $11.38 per share on December 31, versus $12.02 six
     months earlier, in part reflecting the payment of distributions.

o    The Fund's six-month total return was -2.16%, based on net asset value and
     assuming reinvestment of distributions at net asset value. However, for the
     month of December, the REIT market bounced back significantly. Your Fund
     returned 11.58% for the month, lifting its one-year total return into
     positive territory, based on net asset value.

For additional performance information, please turn to page 3.

Your Fund outpaced the average real estate mutual fund over the Fund's lifetime,
as tracked by Lipper Analytical Services, an independent mutual fund research
firm. The average real estate fund recorded the following returns: -1.45% over
six months, -3.05% over one year and -5.44% since your Fund's inception. Lipper
tracked 17, 10 and nine funds, respectively, for these time periods.

                  Managing Your Fund in a Difficult Environment

Our selection process for REITs includes a detailed analysis of company
fundamentals. In identifying a potential stock for your Fund's portfolio, we
focus on:

o    High-quality real estate properties with outstanding growth potential

o    Companies with strong balance sheets and low debt

o    A strong management team with a personal stake in the company

o    Attractive and sustainable dividend income

<PAGE>

This concentration on quality real estate investments, in our opinion, makes the
most sense in pursuing your Fund's long-term growth objective. While the climate
for the overall REIT market will inevitably vary over time, our criteria for
choosing a stock for your Fund's portfolio remain the same. In fact, many of the
stocks currently in the portfolio (despite the negative REIT environment)
continue to achieve -- and in some cases, exceed -- their projected earnings.

Many investors exited the REIT market as interest rates rose over the course of
1994. This lack of investor interest inevitably led to price declines in most
REIT investments, regardless of an individual company's strength and growth
potential. Of course, the upside of these lower prices has been the increasingly
attractive income yields offered by many REITs, which helped offset their price
declines. As the real estate/interest rate climate improves, we expect investors
will return to the REIT market, especially given the fact that many companies in
the sector are offering strong growth potential at extremely discounted prices.
We expect investors will look to REITs that are distinguishable in terms of
strong earnings and growth potential -- the same fundamentals your management
adheres to in choosing stocks for your Fund's portfolio.

Investors have started to share this belief; heightened investment in December
benefited both the REIT market and your Fund. Consider, for example, factory
outlets. Stocks in this area were particularly hard hit in 1994, leading us to
believe that many prices had bottomed out. This created many excellent buying
opportunities, which investors took advantage of in December. Factory outlets in
the portfolio include one of the Fund's five largest holdings, Horizon Outlet
Centers. This holding is appealing because of the company's strong fundamental
growth characteristics, as well as the stock's attractive yield.

We also see promise in the warehouse/storage area. A good example is CenterPoint
Properties Corporation, which owns warehouses in the Chicago area. Currently the
stock is yielding 8%, and we think it is attractively priced. The company's
Greater Chicago location has benefited from strong growth and high occupancy
rates, and the warehouse industry in that region remains active.

                                  Looking Ahead

As we saw over the past six months, real estate investments entail a degree of
risk relating to economic conditions and individual properties. Nonetheless, we
are encouraged by the environment for REIT investing as we move into 1995 and
beyond. While interest rates may continue to rise, we think future increases
will not be of the same magnitude as in 1994. We also are encouraged by recent
investor movement back to the REIT market, a trend we expect will continue. As
this happens, we are confident investors will look to REITs that offer solid
earnings and long-term value. Our commitment is to find REITs with these
characteristics, and we will continue to pursue the specific companies and
locations we believe offer the best chance of meeting the Fund's objective of
long-term capital growth.

One final note. Nomura Securities Co., Ltd., an international brokerage and
financial services firm, recently acquired an indirect controlling interest in
Winthrop Financial Associates, Pioneer's joint venture partner. We do not
anticipate any change in Winthrop's contribution to the Fund or in the way the
Fund is managed.

The following pages show audited portfolio holdings and financial statements as
of December 31, 1994. If you have any questions about your investment in Pioneer
Winthrop Real Estate Investment Fund, please contact your financial adviser or
call Pioneer at 1-800-225-6292.

Respectfully submitted,








/s/John F. Cogan, Jr.      /s/Arthur J. Halleran, Jr.
John F. Cogan, Jr.         Arthur J. Halleran, Jr.
Chairman,                  President,

Pioneer Winthrop Real Estate Investment Fund

February 9, 1995



                                       2
<PAGE>




                         GROWTH OF A $10,000 INVESTMENT*

This chart shows the growth of a $10,000 investment made in Pioneer Winthrop
Real Estate Investment Fund at public offering price, compared to the growth of
the Standard & Poor's 500 Index+ and the Wilshire Real Estate Index.+

              Average Annual Total Returns as of December 31, 1994

                      Life-of-Fund       1 Year           6 Months
                      ------------       ------           --------

Net Asset Value          -3.05%            0.23%            -2.16%
Public Offering Price*   -7.78            -5.54             -7.76




           [THE FOLLOWING TABLE IS REPRESENTED AS A PERFORMANCE GRAPH
                            IN THE PRINTED DOCUMENT]

                           S&P 500         Income Fund     Lehman Corporate Bond
                           -------         -----------     ---------------------
     Dec-84                $10,000             9,550              10,000
     Dec-85                $13,164            11,827              12,406
     Dec-86                $15,815            12,926              14,457
     Dec-87                $16,424            13,808              14,827
     Dec-88                $19,133            15,505              16,196
     Dec-89                $25,177            17,970              18,456
     Dec-90                $24,393            18,814              19,779
     Dec-91                $31,793            22,080              23,440
     Dec-92                $34,212            23,755              25,477
     Dec-93                $37,845            26,187              28,574
     Dec-94                $38,156            25,058              27,451

     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.

     The Wilshire Real Estate Index is a market-capitalization weighted measure
     of the performance of more than 85 real estate securities. The Index is 79%
     REITs (equity and hybrid) and 21% real estate operating companies.

*    Reflects deduction of the maximum 5.75% sales charge and assumes
     reinvestment of all distributions at net asset value.

+    The Fund commenced operations on October 25, 1993. Index comparisons begin
     October 31, 1993. Index returns assume reinvestment of dividends and,
     unlike Fund returns, do not reflect any fees, expenses or sales charges.
     Investors cannot directly invest in the Indexes.

     Past performance does not guarantee future results. Returns and share
     prices fluctuate, and your shares, when redeemed, may be worth more or less
     than their original cost.



                                       3
<PAGE>


     PIONEER WINTHROP REAL ESTATE INVESTMENT FUND
     SCHEDULE OF INVESTMENTS
     December 31, 1994

<TABLE>
<CAPTION>

                                                                                                        Market
     Shares   Investment in Securities--100.3%                                                           Value
- ---------------------------------------------------------------------------------------------------------------------------



     <S>      <C>                                                                                    <C>        
              COMMERCIAL BANKS--1.9%

      50,000  Reliance Bancorp................................................................       $   525,000
                                                                                                     -----------

              REAL ESTATE INVESTMENT TRUSTS--94.8%

      70,000  Bradley Real Estate Trust.......................................................       $ 1,067,500
      35,900  Carr Realty Corp................................................................           646,200
      69,000  CenterPoint Properties Corp. ...................................................         1,345,500
      30,000  DeBartolo Realty Corp...........................................................           450,000
      26,500  Developers Diversified Realty Corp..............................................           828,125
     125,300  Equity Inns, Inc................................................................         1,378,300
      60,000  Factory Stores of America, Inc. ................................................         1,297,500
      58,000  Gables Residential Trust........................................................         1,247,000
      55,000  Horizon Outlet Centers..........................................................         1,436,875
      35,700  IRT Property Co.................................................................           365,925
      59,100  JP Realty, Inc..................................................................         1,241,100
      75,700  McArthur/Glen Realty Corp.......................................................         1,249,050
      75,500  Merry Land & Investment Co., Inc................................................         1,651,563
      60,000  National Golf Properties, Inc...................................................         1,327,500
      53,900  Oasis Residential, Inc..........................................................         1,320,550
      35,000  Post Properties, Inc............................................................         1,102,500
      70,000  Spieker Properties, Inc.........................................................         1,426,250
      67,000  Sun Communities, Inc............................................................         1,507,500
      54,500  Tanger Factory Outlet Centers, Inc..............................................         1,280,750
      52,200  Trinet Corporate Realty Trust, Inc..............................................         1,526,850
      20,000  Weingarten Realty Investors.....................................................           757,500
      88,000  Wellsford Residential Properties Trust..........................................         1,848,000
      30,000  Winston Hotels, Inc.............................................................           300,000
                                                                                                     -----------
                                                                                                     $26,602,038
                                                                                                     -----------

              REAL ESTATE SERVICES--3.6%

     150,000  Amresco, Inc....................................................................       $ 1,012,500
                                                                                                     -----------
              TOTAL INVESTMENT IN SECURITIES (Cost $29,852,478)...............................       $28,139,538
                                                                                                     -----------
              ALL OTHER ASSETS, LESS LIABILITIES--(0.3%).......................................      $   (71,436)
                                                                                                     -----------
              NET ASSETS--100%.................................................................      $28,068,102
                                                                                                     ===========
</TABLE>


   The accompanying notes are an integral part of these financial statements.



                                       4
<PAGE>


PIONEER WINTHROP REAL ESTATE
INVESTMENT FUND
BALANCE SHEET
December 31, 1994

<TABLE>

<S>                                                                                                   <C>        
Assets:

Investments in securities, at value (identified cost and cost for federal income
  tax purposes of $29,852,478; see Schedule of Investments and Notes 1, 2 and 3)............          $28,139,538
Receivables--
  Dividends ................................................................................              251,023
  Trust shares sold.........................................................................              106,483
Organization cost--net (Note 1)..............................................................              73,680
Other.......................................................................................                5,128
                                                                                                      -----------
    Total assets............................................................................          $28,575,852
                                                                                                      -----------
Liabilities:

Payables--
  Investment securities purchased...........................................................          $   146,551
  Due to bank...............................................................................              207,070
  Trust shares repurchased..................................................................               90,053
Accrued expenses--
  Management fees (Note 4)..................................................................              16, 206
  Other (Notes 4, 5 and 6) .................................................................               47,870
                                                                                                      -----------
    Total liabilities.......................................................................            $ 507,750
                                                                                                      -----------
Net Assets:

Trust shares (unlimited number of shares authorized), amount paid in on 2,467,250
  shares outstanding (Notes 1 and 7) .......................................................          $29,771,644
Accumulated undistributed net realized gain on investments (Note 2).........................                9,398
Net unrealized loss on investments (Note 2).................................................           (1,712,940)
                                                                                                      -----------
    Total net assets (equivalent to $11.38 per share based on 2,467,250 trust
      shares outstanding)...................................................................          $28,068,102
                                                                                                      ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.



                                       5
<PAGE>

PIONEER WINTHROP REAL ESTATE
INVESTMENT FUND
STATEMENT OF OPERATIONS
For the Six Months Ended December 31, 1994

<TABLE>

<S>                                                                                                  <C>        
Investment Income (Note 1):

  Dividends..................................................................................        $   762,508
  Interest...................................................................................             10,215
                                                                                                     -----------
    Total investment income..................................................................        $   772,723

Expenses:

  Management fees (Note 4)...................................................................        $   141,284
  Distribution fees (Note 6).................................................................             35,321
  Transfer fees (Note 5).....................................................................             32,932
  Professional fees..........................................................................             30,553
  Registration...............................................................................             27,325
  Accounting.................................................................................             25,140
  Custodian..................................................................................              8,980
  Printing...................................................................................              1,375
  Fees and expenses of nonaffiliated trustees................................................              2,562
  Organization costs (Note 1)................................................................              9,043
  Miscellaneous expenses.....................................................................              5,890
                                                                                                     -----------
    Total expenses...........................................................................        $   320,405
    Less management fees waived by Pioneer Winthrop Advisers (Note  4).......................             73,158
                                                                                                     -----------
    Net expenses.............................................................................        $   247,247
                                                                                                     -----------

      Net investment income..................................................................        $   525,476
                                                                                                     -----------
Realized and Unrealized Gain (Loss) on Investments:

  Net realized gain on investments...........................................................           $ 34,557
  Net increase in unrealized loss on investments.............................................         (1,237,463)
                                                                                                     -----------
    Net loss on investments..................................................................        $(1,202,906)
                                                                                                     -----------
      Net decrease in net assets resulting from operations...................................        $  (677,430)
                                                                                                     ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                       6
<PAGE>

<TABLE>

PIONEER WINTHROP REAL ESTATE INVESTMENT FUND 
STATEMENT OF CHANGES IN NET ASSETS 
For the Six Months Ended December 31, 1994 and for the Period from October 25, 1993
(Commencement of Operations) to June 30, 1994

<CAPTION>
                                                                                       Six Months
                                                                                          Ended        Period Ended
                                                                                   December 31, 1994   June 30, 1994
                                                                                   -----------------   -------------
<S>                                                                                   <C>              <C>        
From Operations:

  Net investment income.........................................................      $   525,476      $   388,019
  Net realized gain on investments..............................................           34,557           37,050
  Net increase in unrealized loss on investments................................       (1,237,463)        (475,477)
                                                                                      -----------      -----------
    Net decrease in net assets resulting from operations........................      $  (677,430)     $   (50,408)
                                                                                      -----------      -----------

Distributions to Shareholders From:

  Net investment income ($0.199 and $0.270 per share, respectively).............      $  (525,476)     $  (388,019)
  Paid-in capital ($0.151 and $0.030 per share, respectively)...................         (346,042)         (78,530)
  Realized gain on investments ($0.025 per share and $0.0 per share, 
    respectively) ..............................................................          (62,209)          --
                                                                                      -----------      -----------
    Net decrease in net assets resulting from distributions to shareholders.....      $  (933,727)     $  (466,549)
                                                                                      -----------      -----------
</TABLE>

<TABLE>
<CAPTION>

                                                  Six Months Ended    Period Ended
                                                  December 31, 1994  June 30, 1994
                                                  -----------------  -------------
From Trust Share Transactions:                          Shares          Shares
                                                  -----------------  -------------
<S>                                                      <C>          <C>             <C>              <C>        
  Net proceeds from sale of shares...................    526,831      2,560,526       $ 6,037,861      $31,294,221
  Net asset value of shares issued to
    shareholders in reinvestment of
    dividends........................................     62,858         28,045           709,833          348,134
  Cost of shares repurchased.........................   (583,891)      (207,119)       (6,652,624)      (2,541,209)
                                                        --------      ---------       -----------      -----------
    Increase in net assets resulting
      from trust share transactions..................      5,798      2,381,452          $ 95,070      $29,101,146
                                                        ========      =========       -----------      -----------
    Net increase (decrease) in net assets............                                 $(1,516,087)     $28,584,189

Net Assets:

Beginning of period.............................................................       29,584,189        1,000,000
                                                                                      -----------      -----------
End of period (including accumulated undistributed
  (distributions in excess of) net investment income
  of $0.00 and ($78,530), respectively) ........................................      $28,068,102      $29,584,189
                                                                                      ===========      ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.



                                       7
<PAGE>


<TABLE>
PIONEER WINTHROP REAL ESTATE INVESTMENT FUND
FINANCIAL HIGHLIGHTS -- SELECTED DATA FOR A SHARE OUTSTANDING
For the Six Months Ended December 31, 1994 and for the Period from October 25, 1993
(Commencement of Operations) to June 30, 1994

<CAPTION>

                                                                                           Six Months
                                                                                              Ended        Period Ended
                                                                                       December 31, 1994  June 30, 1994
                                                                                       -----------------  --------------
<S>                                                                                          <C>            <C>     
Net asset value, beginning of period............................................             $ 12.020       $ 12.500
                                                                                             --------       --------
Income from investment operations--
  Net investment income.........................................................             $  0.210       $  0.268
  Net realized and unrealized loss on investments...............................               (0.475)        (0.448)
                                                                                             --------       --------
    Total loss from investment operations.......................................             $ (0.265)      $ (0.180)

Distribution to shareholders from:
  Net investment income ........................................................               (0.199)        (0.270)
  Paid-in capital...............................................................               (0.151)        (0.030)
  Realized capital gains........................................................               (0.025)           --
                                                                                             --------       --------
Net decrease in net asset value.................................................             $ (0.640)      $ (0.480)
                                                                                             --------       --------
Net asset value, end of period..................................................             $ 11.380       $ 12.020
                                                                                             ========       ========
Total return*...................................................................               (2.16%)        (1.47%)
Ratio of net operating expenses to average net assets...........................                1.75%**        1.71%**
Ratio of net investment income to average net assets............................                3.72%**        3.73%**
Portfolio turnover rate.........................................................               17.40%**       23.98%**
Net assets, end of period  (in thousands) ......................................              $28,068        $29,584
Ratios assuming no waiver of fees or assumption of expenses---
  Net operating expenses........................................................                2.27%**        2.15%**
  Net investment income.........................................................                3.20%**        3.28%**
</TABLE>


*    Assumes initial investment at net asset value at the beginning of period,
     reinvestment of all dividends, and the complete redemption of the
     investment at the net asset value at the end of period and no sales
     charges. Total return would be reduced if sales charges were taken into
     account.

**   Annualized


   The accompanying notes are an integral part of these financial statements.



                                       8
<PAGE>


PIONEER WINTHROP REAL ESTATE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1994


1. Pioneer Winthrop Real Estate Investment Fund (The Fund) is a Massachusetts
business trust, organized on July 1, 1993 and registered under the Investment
Company Act of 1940 as a non-diversified, open-end management company. The Fund
commenced operations on October 25, 1993. Prior to October 25, 1993, the Fund
had no operations other than those relating to organizational matters and the
initial capitalization of the Fund by The Pioneer Group, Inc. (PGI) and Winthrop
Financial Associates (WFA). In December of 1994, international brokerage and
financial services firm, Nomura Securities, acquired an indirect controlling
interest in WFA, a Limited Partnership. In April 1995, the
shareholders of the Fund will vote to ratify the investment advisory agreement
due to the change in the ownership structure of WFA.

     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. Investment Securities--Security transactions are recorded on the date
the securities are purchased or sold. Investments in 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. Temporary cash investments are valued at cost plus accrued
interest, which approximates market value. Dividend income is recorded on the
ex-dividend date. Interest income is recorded on the accrual basis.

     Because the Fund may invest a substantial portion of its assets in Real
Estate Investment Trusts (REITs), the Fund may be subject to certain risks
associated with direct investments in REITs. REITs may be affected by changes in
the value of their underlying properties and defaults by borrowers or tenants.
REITs depend generally on their ability to generate cash flow to make
distributions to shareholders, and certain REITs have self-liquidation
provisions by which mortgages held may be paid in full and distributions of
capital returns may be made at any time. In addition, the performance of a REIT
may be affected by its failure to qualify for tax-free pass-through of income
under the Internal Revenue Code or its failure to maintain exemption from
registration under the Investment Company Act of 1940.

     Substantially all of the dividend income recorded by the Fund is from
distributions by publicly traded REITs and such distributions for tax purposes
may consist of capital gains and return of capital. The actual return of capital
and capital gains portions of such distributions will be determined by formal
notifications from the REITs subsequent to the calendar year-end. Distributions
received from the REITs, which are determined to be a return of capital, are
recorded by the Fund as a reduction of the cost basis of the securities held.
The character of such distributions, for tax purposes, is determined by the Fund
based on estimates and information received by the Fund from the REITS.

     Gains and losses from sales of investments are calculated on the
"identified cost" method for both financial reporting and federal income tax
purposes. It is the Fund's practice first to select for sale those securities
that have the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.

     B. Federal Taxes--It is the policy of the Fund to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its investment company taxable income and its
net realized capital gains, if any, to its shareholders. Therefore, no federal
income tax provisions are required.

     C. Trust Shares--The Fund records sales and repurchases of its trust shares
on the 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 a wholly owned subsidiary of PGI. For the period ended December 31, 1994,
PFD earned $27,497 in underwriting commissions on the sale of shares of the
Fund. Dividends and distributions to shareholders are recorded as of the
ex-dividend date.



                                       9
<PAGE>

PIONEER WINTHROP REAL ESTATE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
December 31, 1994 (Continued)

     D. Repurchase Agreements--The Fund may enter into repurchase agreements. At
the time the Fund enters into a repurchase agreement, the value of the
underlying security (collateral), including accrued interest, will be equal to
or exceed the value of the repurchase agreement, and in the case of repurchase
agreements exceeding one day, the value of the underlying security, including
accrued interest, is required during the term of the agreement to be equal to or
exceed the value of the repurchase agreement. The underlying securities for all
repurchase agreements are held in safekeeping in the customer-only account of
the Fund's custodian or at the Federal Reserve Bank of Boston. If the seller
defaults and the value of the collateral declines, or if bankruptcy proceedings
commence with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.

     E. Organization Costs--The costs incurred by the Fund in connection with
its organization and initial registration of shares have been deferred and are
amortized on a straight-line basis over a period of five years.

2. At December 31, 1994, the total cost of securities, the net realized gain,
the accumulated net realized gain and the increase in unrealized loss for
federal income tax purposes was identical to those on a financial reporting
basis. Aggregate gross unrealized gain on securities in which there was an
excess of market value over tax cost was $610,894. Aggregate gross unrealized
loss on securities in which there was an excess of tax cost over market value
was $2,323,834. Net unrealized loss for tax purposes was $1,712,940.

3. During the period ended December 31, 1994, the cost of purchases and proceeds
from sales of investments, other than temporary cash investments, were
$3,940,735 and $2,422,040, respectively.

4. Pioneer Winthrop Advisers (PWA), a joint venture between PGI and WFA, serves
as investment adviser to the Fund and is responsible for the overall management
of the Fund's business affairs, subject only to the authority of the Board of
Trustees. All of the Fund's portfolio investment decisions are made by PWA's
advisory committee, which relies on investment subadvisory services provided by
Pioneering Management Corporation and by Winthrop Advisors Limited Partnership,
pursuant to their investment subadvisory contracts with the Fund. As
compensation for its investment advisory services and certain expenses which it
incurs, PWA is entitled to a management fee equal to 1.00% per annum of the
Fund's average daily net assets. The fee is normally computed daily. Included in
Accrued expenses--Other is $5,405 in accounting fees payable to PMC at 
December 31, 1994.

     PWA has agreed temporarily to limit the expenses of the Fund. Under this
arrangement, PWA will not impose any management fees and, if necessary, will
limit or otherwise reduce other operating expenses (excluding interest and
taxes) to the extent needed to limit the Fund's expenses to 1.75% of the Fund's
average daily net assets for the fiscal period ending December 31, 1994. PMC's
agreement to assume expenses for the Fund is voluntary and temporary and may be
revised or terminated at anytime.

5. Pioneering Services Corporation (PSC), a wholly owned subsidiary of PGI,
provides substantially all transfer agent and shareholder services to the Fund,
at negotiated rates. Included in Accrued expenses -- Other is $7,997 in transfer
fees payable to PSC at December 31, 1994.

6. The Trust has adopted a Plan of Distribution (the Plan) in accordance with
Rule 12b-1 under the Investment Company Act of 1940 pursuant to which certain
distribution fees are paid to PFD. The Plan generally provides that the Fund
will reimburse PFD for actual expenditures to finance activities intended to
result in the sale of the Fund's shares or to provide services to the Fund's
shareholders. Expenditures to the Fund, pursuant to the Plan, may not exceed
0.25% of the Fund's average annual net assets. The Plan became effective 
July 1, 1994. Included in Accrued expenses--Other is approximately $15,921 in
distribution fees and was payable to PFD at December 31, 1994.




                                       10
<PAGE>

7. In accordance with Statement of Position 93-2 (SOP 93-2) "Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distribution by Investment Companies," the Fund reports the
accumulated undistributed net investment income (loss) and accumulated
undistributed net realized capital gain (loss) accounts to approximate amounts
available for future distributions (or to offset future realized capital gains).
As a result, the Fund has reclassified $424,572 from distributions in excess of
net investment income to paid-in capital (trust shares). This reclassification
has no impact on the net asset value of the Fund and 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.

8. Change in Year End--Subsequent to December 31, 1994, the Trustees of the Fund
voted to change the Fund's year end to December 31 in order to achieve
consistency with the Fund's tax year end.


REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS


TO THE SHAREHOLDERS AND THE BOARD OF TRUSTEES OF PIONEER WINTHROP REAL ESTATE
INVESTMENT FUND:

   We have audited the accompanying balance sheet of Pioneer Winthrop Real
Estate Investment Fund (a Massachusetts business trust), including the schedule
of investments as of December 31, 1994, and the related statements of
operations, changes in net assets for the periods ended December 31, 1994 and
June 30, 1994 and 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
December 31, 1994, 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 Winthrop Real Estate Investment Fund as of December 31, 1994, the
results of its operations, the changes in its net assets and financial
highlights for the period presented, in conformity with generally accepted
accounting principles.

                                                             ARTHUR ANDERSEN LLP

Boston, Massachusetts
February 21, 1995



                                       11
<PAGE>

                  PIONEER WINTHROP REAL ESTATE INVESTMENT FUND
                                 60 State Street
                           Boston, Massachusetts 02109

OFFICERS

JOHN F. COGAN, JR.
Chairman and Chief Executive Officer

ARTHUR J. HALLERAN, JR.
President and Chief Operating Officer

DAVID D. TRIPPLE
Executive Vice President

STEPHEN G. KASNET
Vice President

WILLIAM H. KEOUGH
Treasurer

JOSEPH P. BARRI
Secretary

TRUSTEES

JOHN F. COGAN, JR.
RICHARD H. EGDAHL, M.D.
MARGARET B. W. GRAHAM
ARTHUR J. HALLERAN, JR.
STEPHEN G. KASNET
JOHN W. KENDRICK
MARGUERITE A. PIRET
DAVID D. TRIPPLE
STEPHEN K. WEST
JOHN WINTHROP

INVESTMENT ADVISER

PIONEER WINTHROP
ADVISERS

INVESTMENT
SUBADVISERS

PIONEERING MANAGEMENT CORPORATION

WINTHROP ADVISORS
LIMITED PARTNERSHIP

CUSTODIAN

BROWN BROTHERS
HARRIMAN &CO.

PRINCIPAL UNDERWRITER

PIONEER FUNDS DISTRIBUTOR, INC.

LEGAL COUNSEL

HALE AND DORR

INDEPENDENT  PUBLIC ACCOUNTANTS

ARTHUR ANDERSEN LLP

SHAREHOLDER
SERVICES AND
TRANSFER AGENT

PIONEERING SERVICES CORPORATION
60 State  Street
Boston, Massachusetts
02109

- --------------------------------------------------------------------------------

  Please call Pioneer for information on:
  Existing accounts, new accounts, prospectuses,
  applications and service forms........ 1-800-225-6292
  Fund yields and prices................ 1-800-225-4321
  Toll-free fax......................... 1-800-225-4240
  Retirement plans...................... 1-800-622-0176
  Telecommunications Device for the Deaf (TDD) 1-800-225-1997

- --------------------------------------------------------------------------------

When distributed to persons who are not shareholders of the Fund, this report
must be accompanied by an official prospectus, which discusses the objectives,
policies, sales charges, and other information about the Fund.


   0295-2265

   (C) Pioneer Funds Distributor, Inc.



                            SHARE PURCHASE AGREEMENT


         This Agreement is made as of the 25th day of October,  1993 between The
Pioneer  Group,  Inc.,  a  Delaware  corporation  ("PGI"),   Winthrop  Financial
Associates,  A Limited Partnership,  a Maryland limited partnership ("WFA"), and
Pioneer  Winthrop Real Estate  Investment  Fund, a Massachusetts  business trust
(the "Fund").

         WHEREAS,  the Fund has  previously  sold to PGI  $100,000  of shares of
beneficial interest of the Fund (8,000 shares) at a purchase price of $12.50 per
share;

         WHEREAS,  the Fund wishes to sell to PGI and WFA,  and PGI and WFA wish
to purchase  from the Fund,  $400,000 and $500,000,  respectively,  of shares of
beneficial  interest of the Fund (32,000 and 40,000 shares,  respectively)  at a
purchase price of $12.50 per share (the "Shares"); and

         WHEREAS,  PGI and WFA are each purchasing the Shares for the purpose of
providing the initial capitalization of the Fund;

         NOW, THEREFORE, the parties hereto agree as follows:

         1. Simultaneously with the execution of this Agreement, PGI and WFA are
delivering  to  the  Fund  checks  in  the  amount  of  $400,000  and  $500,000,
respectively, in full payment for the Shares.

         2.  PGI  and WFA  each  agree  that it is  purchasing  the  Shares  for
investment  and each has no present  intention of  redeeming  or  reselling  the
Shares.

         3. PGI and WFA  further  agree that with  respect to $50,000 of each of
their Shares,  they may not withdraw such Shares from the Fund at a rate,  which
at any time during the Fund's first five years of  operations,  exceeds  $833.33
per month.

         Executed as of the date first set forth above.

THE PIONEER GROUP, INC.                 WINTHROP FINANCIAL ASSOCIATES,
                                        A LIMITED PARTNERSHIP

/s/Robert L. Butler                     /s/Arthur J. Halleran, Jr.
Robert L. Butler                        Arthur J. Halleran, Jr.
Executive Vice President                President

                  PIONEER WINTHROP REAL ESTATE INVESTMENT FUND

                             /s/John F. Cogan, Jr.
                               John F. Cogan, Jr.
                            Chief Executive Officer



                               DISTRIBUTION PLAN

                  PIONEER WINTHROP REAL ESTATE INVESTMENT FUND


         DISTRIBUTION  PLAN, dated as of April 28, 1995 of PIONEER WINTHROP REAL
ESTATE INVESTMENT FUND, a Delaware business trust (the "Trust").

                                   WITNESSETH

         WHEREAS, the Trust is engaged in business as an open-end,  diversified,
management investment company and is registered under the Investment Company Act
of 1940, as amended  (collectively  with the rules and  regulations  promulgated
thereunder, the "1940 Act");

         WHEREAS,  the Trust  intends to  distribute  its  shares of  beneficial
interest (the  "Shares") of the  securities  portfolio of each series of Pioneer
which  the  Trustees  may  establish  from  time to time  (the  "Portfolio")  in
accordance with Rule 12b-1 promulgated by the Securities and Exchange Commission
under the 1940 Act ("Rule 12b-1"),  and desires to adopt this  Distribution Plan
(the "Plan") as a plan of distribution pursuant to such rule;

         WHEREAS, the Trust desires to engage Pioneer Funds Distributor, Inc., a
Massachusetts  corporation ("PFD"), to provide certain distribution services for
the Trust in connection with the Plan;

         WHEREAS, the Trust desires to enter into an underwriting agreement with
PFD,  whereby PFD will provide  facilities and personnel and render  services to
the Trust in  connection  with the  offering  and  distribution  of Shares  (the
"Underwriting Agreement");

         WHEREAS,  the Trust also  recognizes and agrees that (a) PFD may retain
the  services  of  firms  or  individuals  to  act  as  dealers  or  wholesalers
(collectively,  the "Dealers") of the Shares in connection  with the offering of
Shares, (b) PFD may compensate any Dealer that sells Shares in the manner and at
the rate or rates to be set forth in an  agreement  between PFD and such Dealer,
and (c) PFD may make such payments to the Dealers for distribution  services out
of the fee paid to PFD hereunder,  its profits or any other source  available to
it; and

         WHEREAS, the Board of Trustees of the Trust, in considering whether the
Trust should adopt and implement this Plan, has evaluated such information as it
deemed  necessary  to an  informed  determination  whether  this Plan  should be
adopted and implemented  and has considered such pertinent  factors as it deemed
necessary  to form the basis for a decision  to use assets of the Trust for such
purposes,  and has  determined  that there is a reasonable  likelihood  that the
<PAGE>

adoption  and  implementation  of this  Plan  will  benefit  the  Trust  and its
shareholders;

         NOW,  THEREFORE,  the Board of Trustees of the Trust hereby adopts this
Plan for the Trust as a plan of  distribution  in accordance with Rule 12b-1, on
the following terms and conditions:

         1. The Trust may expend  pursuant  to this Plan  amounts  not to exceed
.25% of 1% of the average daily net assets of each Portfolio per annum.

         2. Subject to the limit in paragraph 1, the Trust shall  reimburse  PFD
for amounts expended by PFD to finance any activity which is primarily  intended
to result in the sale of shares of the Trust or the  provision  of  services  to
shareholders  of the Trust,  including but not limited to  commissions  or other
payments to Dealers and salaries  and other  expenses of PFD relating to selling
or servicing  efforts,  provided,  that the Board of Trustees of the Trust shall
approve categories of expenses for which reimbursement shall be made pursuant to
this paragraph 2 and,  without  limiting the  generality of the  foregoing,  the
initial  categories  of such  expenses  shall be (i) a service fee to be paid to
qualified  broker-dealers  in an amount not to exceed  25/100 of 1% per annum of
each  Portfolio's  daily  net  assets;   (ii)   reimbursement  to  PFD  for  its
expenditures for broker-dealer  commissions and employee compensation on certain
sales  of  the  Trust's   Shares  with  no  initial  sales  charge;   and  (iii)
reimbursement to PFD for expenses  incurred  providing  services to shareholders
and supporting  broker-dealers and other organizations,  such as banks and trust
companies,  in their  effort to provide  such  services  (any  addition  of such
categories  shall be subject  to the  approval  of the  Qualified  Trustees,  as
defined below,  of the Trust).  Such  reimbursement  shall be paid ten (10) days
after  the end of the  month  or  quarter,  as the case  may be,  in which  such
expenses are incurred.  The Trust acknowledges that PFD will charge a sales load
in connection with sales of such shares and that PFD will reallow to Dealers all
or a portion of such sales load,  as  described in the Trust's  Prospectus  from
time to time. Nothing contained herein is intended to have any effect whatsoever
on PFD's  ability to charge any such sales load or to reallow all or any portion
thereof to Dealers.

         3. The Trust  understands  that agreements  between PFD and Dealers may
provide for payment of fees to Dealers in connection with the sale of Shares and
the  provision of services to  shareholders  of the Trust.  Nothing in this Plan
shall be construed  as requiring  the Trust to make any payment to any Dealer or
to have any obligations to any Dealer in connection with services as a dealer of
the Shares.  PFD shall  agree and  undertake  that any  agreement  entered  into
between PFD and any Dealer  shall  provide that such Dealer shall look solely to
PFD for compensation for its services thereunder and that in no event shall such
Dealer seek any payment from the Trust.


                                       2
<PAGE>

         4.  Nothing  herein  contained  shall be deemed to require the Trust to
take  any  action  contrary  to its  Declaration  of  Trust  or  By-Laws  or any
applicable  statutory  or  regulatory  requirement  to which it is subject or by
which it is bound, or to relieve or deprive the Trust's Board of Trustees of the
responsibility for and control of the conduct of the affairs of the Trust.

         5. This Plan shall  become  effective  upon  approval  by a vote of the
Board  of  Trustees  and a vote  of a  majority  of the  Trustees  who  are  not
"interested  persons" of the Trust and who have no direct or indirect  financial
interest in the  operation of the Plan or in any  agreement  related to the Plan
(the "Qualified Trustees"),  such votes to be cast in person at a meeting called
for the purpose of voting on this Plan.

         6. This Plan will  remain in effect  indefinitely,  provided  that such
continuance  is  "specifically  approved at least  annually" by a vote of both a
majority of the Trustees of the Trust and a majority of the Qualified  Trustees.
If such annual  approval is not  obtained,  this Plan shall expire on Octobery5,
1994.  In the  event  of  termination  or  non-continuance  of this  Plan,  each
Portfolio  has twelve  months to reimburse  any expense which it incurs prior to
such  termination or  non-continuance,  provided that payments by such Portfolio
during  such  twelve-month  period  shall  not  exceed  25/100  of  1%  of  each
Portfolio's average daily net assets during such period.

         7.  This  Plan may be  amended  at any time by the  Board of  Trustees,
provided that this Plan may not be amended to increase materially the limitation
on the annual  percentage of average net assets which may be expended  hereunder
without  the  approval  of  holders of a  "majority  of the  outstanding  voting
securities" of the Trust and may not be materially amended in any case without a
vote of a  majority  of  both  the  Trustees  and the  Qualified  Trustees.  Any
amendment  of this Plan to increase or modify the expense  categories  initially
designated by the Trustees in paragraph 2 above shall only require approval of a
majority of the Trustees and the Qualified  Trustees if such  amendment does not
include an increase in the expense  limitation  set forth in  paragraph 1 above.
This Plan may be terminated at any time by a vote of a majority of the Qualified
Trustees or by a vote of the holders of a "majority  of the  outstanding  voting
securities" of the Trust.

         8. In the event of termination or expiration of the Plan, the Trust may
nevertheless,  within twelve months of such termination or expiration  reimburse
any expense which it incurs prior to such  termination or  expiration,  provided
that payments by the Trust during such twelve-month period shall not exceed .25%
or 1% of the Trust's  average net daily  assets  during such period and provided


                                       3
<PAGE>

further that such payments are  specifically  approved by the Board of Trustees,
including a majority of the Qualified Trustees.

         9. The Trust and PFD shall  provide to the Trust's  Board of  Trustees,
and the Board of Trustees shall review, at least quarterly,  a written report of
the  amounts   expended  under  this  Plan  and  the  purposes  for  which  such
expenditures were made.

         10.  While this Plan is in effect,  the  selection  and  nomination  of
Qualified  Trustees shall be committed to the discretion of the Trustees who are
not "interested persons" of the Trust.

         11. For the  purposes  of this Plan,  the terms  "interested  persons,"
"majority of the outstanding  voting  securities" and "specifically  approved at
least annually" are used as defined in the 1940 Act.

         12. The Trust shall  preserve  copies of this Plan,  and each agreement
related hereto and each report referred to in paragraph 9 hereof  (collectively,
the "Records"),  for a period of not less than six (6) years from the end of the
fiscal year in which such  Records  were made and for a period of two (2) years,
each of such Records shall be kept in an easily accessible place.

         13. This Plan shall be  construed  in  accordance  with the laws of the
Commonwealth of Massachusetts and the applicable provisions of the 1940 Act.

         14. If any  provision  of this Plan shall be held or made  invalid by a
court decision,  statute, rule or otherwise, the remainder of the Plan shall not
be affected thereby.




                                       4

<TABLE> <S> <C>

<ARTICLE>                             6
<CIK>                                 0000908996
<NAME>                                Pioneer Winthrop Real Estate
<SERIES>
<NUMBER>                              0
<NAME>                                none
<MULTIPLIER>                          1
<CURRENCY>                            U. S .Dollars
<PERIOD-TYPE>                         Year
<FISCAL-YEAR-END>                     DEC-31-1994
<PERIOD-START>                        JAN-01-1994
<PERIOD-END>                          DEC-31-1994
<EXCHANGE-RATE>                       1
<INVESTMENTS-AT-COST>                 29,852,478
<INVESTMENTS-AT-VALUE>                28,139,538
<RECEIVABLES>                         357,506
<ASSETS-OTHER>                        78,808
<OTHER-ITEMS-ASSETS>                  0
<TOTAL-ASSETS>                        28,575,852
<PAYABLE-FOR-SECURITIES>              146,551  
<SENIOR-LONG-TERM-DEBT>               0
<OTHER-ITEMS-LIABILITIES>             361,199
<TOTAL-LIABILITIES>                   507,750
<SENIOR-EQUITY>                       0
<PAID-IN-CAPITAL-COMMON>              29,771,644
<SHARES-COMMON-STOCK>                 2,467,250
<SHARES-COMMON-PRIOR>                 2,461,452
<ACCUMULATED-NII-CURRENT>             0
<OVERDISTRIBUTION-NII>                (525,476)
<ACCUMULATED-NET-GAINS>               9,398
<OVERDISTRIBUTION-GAINS>              0
<ACCUM-APPREC-OR-DEPREC>              (1,712,940)
<NET-ASSETS>                          28,068,102
<DIVIDEND-INCOME>                     762,508
<INTEREST-INCOME>                     10,215
<OTHER-INCOME>                        0
<EXPENSES-NET>                        (247,247)
<NET-INVESTMENT-INCOME>               525,476
<REALIZED-GAINS-CURRENT>              34,557
<APPREC-INCREASE-CURRENT>             (1,237,463)
<NET-CHANGE-FROM-OPS>                 (677,430)
<EQUALIZATION>                        0
<DISTRIBUTIONS-OF-INCOME>             (525,476)
<DISTRIBUTIONS-OF-GAINS>              (62,209)
<DISTRIBUTIONS-OTHER>                 (346,042)
<NUMBER-OF-SHARES-SOLD>               526,831
<NUMBER-OF-SHARES-REDEEMED>           (583,891)
<SHARES-REINVESTED>                   62,858
<NET-CHANGE-IN-ASSETS>                (1,516,087)
<ACCUMULATED-NII-PRIOR>               9,451
<ACCUMULATED-GAINS-PRIOR>             (9,926)
<OVERDISTRIB-NII-PRIOR>               0
<OVERDIST-NET-GAINS-PRIOR>            0
<GROSS-ADVISORY-FEES>                 (141,284)
<INTEREST-EXPENSE>                    0
<GROSS-EXPENSE>                       (320,405)
<AVERAGE-NET-ASSETS>                  28,685,947
<PER-SHARE-NAV-BEGIN>                 12.020
<PER-SHARE-NII>                       0.210
<PER-SHARE-GAIN-APPREC>               (0.475)
<PER-SHARE-DIVIDEND>                  (0.199)
<PER-SHARE-DISTRIBUTIONS>             (0.025)
<RETURNS-OF-CAPITAL>                  (0.151)
<PER-SHARE-NAV-END>                   11.380
<EXPENSE-RATIO>                       1.750
<AVG-DEBT-OUTSTANDING>                0
<AVG-DEBT-PER-SHARE>                  0.000

</TABLE>



                               POWER OF ATTORNEY

         We, the undersigned  officers and/or trustees of Pioneer  Winthrop Real
Estate   Investment  Fund,  a  Delaware  business  trust,  do  hereby  severally
constitute  and appoint  John F. Cogan,  Jr.,  DavidyD.  Tripple,  and Joseph P.
Barri,  and each of them acting  singly,  to be our true,  sufficient and lawful
attorneys,  with full power to each of them, and each of them acting singly,  to
sign for each of us, in the name of each of us and in the  capacities  indicated
below, any and all amendments to the  Registration  Statement on Form NA1A to be
filed by Pioneer  Winthrop  Real  Estate  Investment  Fund under the  Investment
Company Act of 1940, as amended (the "1940 Act"),  and under the  Securities Act
of 1933, as amended (the "1933 Act"), with respect to the offering of its shares
of  beneficial  interest  and any and all other  documents  and papers  relating
thereto,  and  generally  to do all such things in the name of each of us and on
behalf of each of us in the capacities indicated to enable Pioneer Winthrop Real
Estate  Investment  Fund to comply  with the 1940 Act and the 1933 Act,  and all
requirements  of the  Securities  and  Exchange  Commission  thereunder,  hereby
ratifying and confirming the signature of each of us as it may be signed by said
attorneys  or  each of them  to any  and  all  amendments  to said  Registration
Statement.

         IN WITNESS WHEREOF,  we have hereunder set our hands on this Instrument
the 10th day of March, 1995.


/s/John F. Cogan, Jr.                          /s/Arthur J. Halleran, Jr.
John F. Cogan, Jr., Chairman,                  Arthur J. Halleran, Jr.,
Trustee and Chief Executive                    Trustee, President and Chief
Officer                                        Operating Officer


/s/David D. Tripple                            /s/John W. Kendrick
David D. Tripple, Trustee and                  John W. Kendrick, Trustee
Executive Vice President


/s/William H. Keough                           /s/Marguerite A. Piret
William H. Keough, Treasurer                   Marguerite A. Piret, Trustee
and Chief Financial Officer


/s/Richard H. Edgahl                           /s/Stephen K. West
Richard H. Egdahl, M.D.,                       Stephen K. West, Trustee
Trustee


/s/Margaret B.W. Graham                        /s/John Winthrop
Margaret B.W. Graham, Trustee                  John Winthrop, Trustee


/s/Stephen G. Kasnet
Stephen G. Kasnet, Trustee and
Vice President



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