<PAGE>
[Pioneer Logo]
Pioneer
Real Estate
Shares
ANNUAL REPORT 12/31/97
<PAGE>
Table of Contents
- -----------------------------------------------------
<TABLE>
<S> <C>
Letter from the Chairman 1
Portfolio Summary 2
Performance Update 3
Portfolio Management Discussion 6
Schedule of Investments 9
Financial Statements 11
Notes to Financial Statements 18
Report of Independent Public Accountants 23
Trustees, Officers and Service Providers 24
Retirement Plans from Pioneer 25
Programs and Services for Pioneer Shareowners 26
The Pioneer Family of Mutual Funds 28
</TABLE>
<PAGE>
Pioneer Real Estate Shares
LETTER FROM THE CHAIRMAN 12/31/97
Dear Shareowner,
- --------------------------------------------------------------------------------
I am pleased to present this annual report for Pioneer Real Estate Shares. On
behalf of all of us at Pioneer, I thank you for your interest and this
opportunity to comment briefly on today's investing environment.
Recent months demonstrated that a new level of volatility and global connection
appears to have entered world stock markets. In late October, the Dow Jones
Industrial Average posted - in the space of two days - both its biggest one-day
point drop and its biggest one-day point gain. Asian markets plunged suddenly
and repeatedly in the face of severe currency changes and slowing economies,
and we continue to feel reverberations across the United States, Europe and
Latin America. In this environment, we think it is critical to adhere to a
disciplined investment approach with clear, long-term objectives and a tested
methodology.
Pioneer Real Estate Shares takes such an approach. It offers the opportunity to
participate in the fortunes of real estate investment trusts (REITs) and other
real-estate related investments. The Fund also adds diversification to your
portfolio by investing in stocks that have a traditionally low correlation to
general stock market performance, yet offer tremendous growth and income
potential.
I encourage you to read on to learn more about Pioneer Real Estate Shares. If
you have questions about your Fund, please contact your investment
professional, or Pioneer at 1-800-225-6292.
Respectfully,
/s/ John F. Cogan, Jr.
John F. Cogan, Jr.,
Chairman and President
1
<PAGE>
Pioneer Real Estate Shares
PORTFOLIO SUMMARY 12/31/97
P o r t f o l i o D i v e r s i f i c a t i o n
- --------------------------------------------------------------------------------
(As a percentage of total investment portfolio)
[Pie Graphic]
Short-Term Cash Equivalents 2%
Real Estate Investment Trust Common Stocks 84%
Real-Estate Related Common Stocks 14%
S e c t o r A l l o c a t i o n
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
[Pie Graphic]
Industrial/Office 29%
Apartments 16%
Diversified 15%
Hotels 15%
Retail 10%
Self-Storage 5%
Triple-Net 5%
Other 3%
Manufactured Homes 2%
1 0 L a r g e s t H o l d i n g s
- --------------------------------------------------------------------------------
(As a percentage of equity holdings)
<TABLE>
<S> <C> <C> <C>
1. Starwood Lodging Trust 4.24% 6. Prentiss Properties Trust 3.83%
2. Catellus Development 4.21 7. Liberty Property Trust 3.79
Corp.
3. Brandywine Realty Trust 4.02 8. Bedford Property 3.60
Investors, Inc.
4. Patriot American 3.99 9. Host Marriott Corp. 3.50
Hospitality, Inc.
5. Apartment Investment & 3.87 10. Glenborough Realty Trust 3.39
Management Co.
</TABLE>
Fund holdings will vary for other periods.
2
<PAGE>
Pioneer Real Estate Shares
PERFORMANCE UPDATE 12/31/97 CLASS A SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/97 12/31/96
$17.81 $15.52
Distributions per Share+ Income Short-Term Long-Term
(12/31/96 - 12/31/97) Dividends Capital Gains Capital Gains
$0.358 $0.199 $0.030
</TABLE>
+The Fund also paid non-taxable distributions of $0.135 per share.
I n v e s t m e n t R e t u r n s
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Real Estate Shares at public offering price, compared to the growth
of the Standard & Poor's (S&P) 500 Index and the Wilshire Real Estate
Securities Index.
[boxed text]
Average Annual Total Returns
(As of December 31, 1997)
Net Asset Public Offering
Period Value Price*
Life-of-Fund 14.54% 12.93%
(10/25/93)
1 Year 19.74 12.83
* Reflects deduction of the maximum 5.75% sales charge at the beginning of the
period and assumes reinvestment of distributions at net asset value.
[Graphic Mountain Chart]
Growth of $10,000
Plot Points for Mountain Chart Class A Shares
Pioneer Standard & Wilshire
Real Estate Poor's 500 Real Estate
Date Shares* Index Securities Index
- ---- --------- ----- ----------------
10/31/93 9425 10000 10000
12/31/93 9067 10015 9553
9398 9636 9767
9288 9676 9884
8992 10149 9734
12/31/94 9088 10147 9709
8784 11134 9746
9435 12196 10170
10035 13164 10652
12/31/95 10188 13956 11034
10375 14705 11501
10710 15365 12046
11894 15840 12758
12/31/96 13902 17159 15103
14070 17620 15381
14649 20694 16088
16852 22244 18120
12/31/97 16646 22883 18093
Index comparison begins 10/31/93. The 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
Securities Index is a market-capitalization weighted measure of the performance
of 120 real estate securities. The Index is 91.7% REITs (equity and hybrid) and
8.3% real estate operation companies. Index returns assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees or expenses. You
cannot invest directly in the Indexes.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
3
<PAGE>
Pioneer Real Estate Shares
PERFORMANCE UPDATE 12/31/97 CLASS B SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/97 12/31/96
$17.70 $15.45
Distributions per Share+ Income Short-Term Long-Term
(12/31/96 - 12/31/97) Dividends Capital Gains Capital Gains
$0.286 $0.199 $0.030
</TABLE>
+The Fund also paid non-taxable distributions of $0.106 per share.
I n v e s t m e n t R e t u r n s
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Real Estate Shares, compared to the growth of the Standard & Poor's
(S&P) 500 Index and the Wilshire Real Estate Securities Index.
[boxed text]
Average Annual Total Returns
(As of December 31, 1997)
Period If Held If Redeemed*
Life-of-Fund 27.83% 26.16%
(1/31/96)
1 Year 18.85 14.85
* Reflects deduction of the maximum applicable contingent deferred sales charge
(CDSC) at the end of the period and assumes reinvestment of distribu-tions.
The maximum CDSC of 4% declines over six years.
[Graphic Mountain Chart]
Growth of $10,000
Plot Points for Mountain Chart Class B Shares
Pioneer Standard & Wilshire
Real Estate Poor's 500 Real Estate
Date Shares* Index Securities Index
- ---- --------- ----- ----------------
1/31/96 10000 10000 10000
10083 10087 10198
3/31/96 10108 10185 10281
10150 10342 10327
10452 10598 10557
6/30/96 10427 10642 10768
10647 10176 10672
11231 10388 11126
9/30/96 11555 10971 11404
11768 11278 11713
12187 12126 12199
12/31/96 13482 11885 13501
13656 12633 13694
13621 12727 13702
3/31/97 13628 12204 13749
12978 12938 13305
13399 13717 13701
6/30/97 14156 14334 14381
14915 15475 14854
14730 14608 14744
9/30/97 16260 15407 16198
15630 14897 15509
15568 15583 15821
12/31/97 15623 15849 16174
The 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 Securities Index is a
market-capitalization weighted measure of the performance of 120 real estate
securities. The Index is 91.7% REITs (equity and hybrid) and 8.3% real estate
operation companies. Index returns assume reinvestment of dividends and, unlike
Fund returns, do not reflect any fees or expenses. You cannot invest directly
in the Indexes.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
4
<PAGE>
Pioneer Real Estate Shares
PERFORMANCE UPDATE 12/31/97 CLASS C SHARES
S h a r e P r i c e s a n d D i s t r i b u t i o n s
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Net Asset Value
per Share 12/31/97 12/31/96
$17.70 $15.46
Distributions per Share+ Income Short-Term Long-Term
(12/31/96 - 12/31/97) Dividends Capital Gains Capital Gains
$0.295 $0.199 $0.030
</TABLE>
+The Fund also paid non-taxable distributions of $0.110 per share.
I n v e s t m e n t R e t u r n s
- --------------------------------------------------------------------------------
The mountain chart on the right shows the growth of a $10,000 investment made
in Pioneer Real Estate Shares, compared to the growth of the Standard & Poor's
(S&P) 500 Index and the Wilshire Real Estate Securities Index.
[boxed text]
Average Annual Total Returns
(As of December 31, 1997)
Period If Held If Redeemed*
Life-of-Fund 27.81% 27.81%
(1/31/96)
1 Year 18.86 18.86
* Assumes reinvestment of distributions. A 1% contingent deferred sales charge
(CDSC) applies to redemptions made within one year of purchase.
[Graphic Mountain Chart]
Growth of $10,000
Plot Points for Mountain Chart Class C Shares
Pioneer Standard & Wilshire
Real Estate Poor's 500 Real Estate
Date Shares* Index Securities Index
- ---- --------- ----- ----------------
1/31/96 10000 10000 10000
10083 10087 10198
3/31/96 10108 10185 10281
10142 10342 10327
10443 10598 10557
6/30/96 10418 10642 10768
10638 10176 10672
11230 10388 11126
9/30/96 11545 10971 11404
11759 11278 11713
12186 12126 12199
12/31/96 13476 11885 13501
13642 12633 13694
13607 12727 13702
3/31/97 13613 12204 13749
12964 12938 13305
13394 13717 13701
6/30/97 14150 14334 14381
14908 15475 14854
14723 14608 14744
9/30/97 16252 15407 16198
15623 14897 15509
15561 15583 15821
12/31/97 16019 15849 16174
The 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 Securities Index is a
market-capitalization weighted measure of the performance of 120 real estate
securities. The Index is 91.7% REITs (equity and hybrid) and 8.3% real estate
operation companies. Index returns assume reinvestment of dividends and, unlike
Fund returns, do not reflect any fees or expenses. You cannot invest directly
in the Indexes.
Past performance does not guarantee future results. Return and share price
fluctuate, and your shares, when redeemed, may be worth more or less than their
original cost.
5
<PAGE>
Pioneer Real Estate Shares
PORTFOLIO MANAGEMENT DISCUSSION 12/31/97
Dear Shareowner,
- -------------------------------------------------------------------------------
Calendar 1997 was a banner year for equity and fixed-income markets, and one
most investors won't soon forget. Large-company stocks led the charge for much
of the year. Both the Dow Jones Industrial Average (DJIA) and the Standard &
Poor's (S&P) 500 Index, widely referenced measures of U.S. stock performance,
posted gains in excess of 20% for the third consecutive year. Small and
mid-sized stocks also did well, with the Nasdaq Composite Index rising 21.64%
and the Russell 2000 Index - a measure of small-stock performance - returning
22.36%.
Along with many other sectors of the broad market, real estate investment
trusts (REITs) posted handsome gains. Pioneer Real Estate Shares - which
pursues long-term capital growth by investing in stocks of REITs and other
real-estate related companies - closed fiscal 1997 with double digit returns
for all share classes. The Fund's total returns at net asset value - Class A
shares, 19.74%; Class B, 18.85% and Class C, 18.86% - were strong on an
absolute basis, but lagged the 22.39% average return of the 67 funds in Lipper
Analytical Services' Real Estate Funds category. Lipper, an independent firm,
reports total returns based on net asset value. However, your Fund's returns
were in line with the 19.80% return posted by the Wilshire Real Estate
Securities Index. The Fund also rewarded investors with attractive income
dividends, paying $0.504 per share for Class A Shares, $0.404 for Class B and
$0.417 for Class C.
A Year for the Record Books
During the fiscal year, investors were reminded it only takes a moment for
markets to change and that risk is an integral part of reward. After starting
1997 with considerable strength, stock prices were brought up short by the
Federal Reserve Board's 0.25% short-term interest rate hike in March. After a
brief tumble, stocks soared over the next few months, with the DJIA breaking
through the historic 7500- and 8000-point marks. In August, renewed concerns
about inflation and corporate earnings sent stocks backpedaling. By September,
economic indicators had quelled investors' fears and stocks marched on.
On October 27, markets worldwide plummeted as Asia's currency crisis came to a
head. All U.S. stock indices posted their biggest one-day point
6
<PAGE>
Pioneer Real Estate Shares
declines in history. Although many industry pundits anticipated an extended
setback, the U.S. stock market proved resilient. A nearly ideal investment
environment - low inflation, continued corporate profitability, stable-to-
declining interest rates and healthy economic growth - provided the fuel that
allowed stocks to recover, although volatility lingered.
Fundamentals of REIT Market Were Attractive
As the overall stock market gyrated wildly, REITs experienced their own
downward pressure and explosive momentum. However, the hybrid nature of REITs -
part income vehicle, part growth - meant their prices once again exhibited less
volatility than broader stock market prices. When the DJIA tumbled more than 6%
in October, REITs declined only half as much. But when stocks recovered
quickly, REITs came back more slowly. In fact, at the end of the year, we
believe REITs offered some of the best values on the market.
The driving forces behind positive REIT performance in 1997 were the real
estate industry's solid financial and business characteristics. Vacancy rates
were low. Lease rates climbed. Cash flows were generally positive. Demand for
real estate itself exceeded supply in most regions of the country, while demand
for the securities themselves was strong. An ongoing trend of consolidation
created more financially sound, higher-quality and geographically diverse
companies.
Portfolio Strategies
Office properties and full-service hotels were our primary focus. Office REITs
comprised the bulk of the Fund's portfolio, standing at roughly 30% of the
portfolio by year-end. Merger and acquisition activity played a significant
role in this group's performance. For example, early in the period the Fund
owned both Beacon Properties and Equity Office Properties Trust, two notable
performers. Equity Office Properties Trust acquired Beacon Properties, and both
stocks rose. We also added new holdings in this sector during second half of
the year, including Glenborough Realty Trust and Brandywine Realty Trust.
The Fund holds a larger-than-average position in hotel REITs because we believe
they have strong potential for attractive price appreciation. Despite a
downturn in this sector in December, our strategy proved worthwhile, as many
issues posted gains for the year. Starwood Lodging Trust, the Fund's
7
<PAGE>
Pioneer Real Estate Shares
PORTFOLIO MANAGEMENT DISCUSSION 12/31/97 (continued)
largest holding, suffered during its bid to acquire ITT Sheraton, but made a
positive contribution to Fund performance. Starwood prevailed over Hilton
Hotels and will soon become the world's largest hotel owner and operator.
Patriot American Hospitality, another of the Fund's larger holdings, continued
to make and benefit from major acquisitions. Host Marriott, a non-REIT in the
hotel industry, also helped bolster Fund returns.
The Fund also holds multi-family housing and residential REITs, which performed
in line with our expectations. Retail holdings, however, remained limited and
generally disappointing. As for non-REITs, the Fund presently holds four. One,
Amresco, a real-estate related company involved in commercial and residential
mortgage banking, generated significant gains in 1997.
Optimism Prevails in Early 1998
We enter 1998 believing the current fundamentals of the real estate industry
will propel the sector forward in the months ahead. In our opinion, plenty of
opportunity exists to participate in the rebound of real estate across the
United States, and we anticipate relatively strong cash-flow growth in the
companies the Fund owns. We expect more growth in REIT market capitalization -
and therefore investment opportunities - as private real estate owners turn to
the public market to securitize their assets. We are also starting to see a
trend toward the acceleration of dividend payouts from many companies, which
should bolster investor demand for the attractive income potential REITs offer.
Selectivity, however, will become more crucial as the real estate cycle
inevitably matures and pockets of over-building emerge. We will continue to
rely on the research capabilities and support of Boston Financial Securities
(the Fund's subadviser) as we focus on the individual strengths of each
potential holding to help us reward shareowners with strong long-term results.
Respectfully,
/s/ signature Robert W. Benson
Robert W. Benson,
Portfolio Manager
8
<PAGE>
Pioneer Real Estate Shares
SCHEDULE OF INVESTMENTS 12/31/97
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 98.1%
Real Estate Investment Trusts - 84.1%
320,000 Amli Residential Properties Trust $ 7,120,000
230,000 Apartment Investment & Management Co. 8,452,500
360,000 Bedford Property Investors, Inc. 7,875,000
350,000 Brandywine Realty Trust 8,793,750
179,600 Charles E. Smith Residential Realty, Inc. 6,375,800
244,200 Cousins Properties, Inc. 7,158,113
170,000 Developers Diversified Realty Corp. 6,502,500
206,882 Equity Office Properties Trust 6,529,713
146,300 Equity Residential Property Trust 7,397,294
37,700 Excel Realty Trust 1,187,550
183,600 FelCor Suite Hotels, Inc. 6,517,800
150,000 Franchise Finance Corporation of America 4,050,000
250,000 Glenborough Realty Trust 7,406,250
190,000 Highwoods Properties, Inc. 7,065,625
200,000 Irvine Apartment Communities 6,362,500
290,000 Liberty Property Trust 8,283,125
250,800 The Macerich Co. 7,147,800
170,000 Mack-Cali Realty Corp. 6,970,000
190,000 National Golf Properties, Inc. 6,234,375
64,200 Pacific Gulf Properties, Inc. 1,524,750
302,804 Patriot American Hospitality, Inc. 8,724,540
300,000 Prentiss Properties Trust 8,381,250
200,000 Public Storage, Inc. 5,875,000
200,000 Simon DeBartolo Group, Inc. 6,537,500
160,000 Spieker Properties, Inc. 6,860,000
160,000 Starwood Lodging Trust 9,260,000
220,000 Storage Trust Realty 5,788,750
141,700 Sun Communities, Inc. 5,092,344
84,600 Tower Realty Trust 2,083,275
------------
Total Real Estate Investment Trusts $187,557,104
------------
Real Estate Services - 10.5%
240,000 Amresco, Inc.* $ 7,260,000
460,000 Catellus Development Corp.* 9,200,000
301,100 Trizec Hahn Corp. 6,981,756
------------
Total Real Estate Services $ 23,441,756
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 9
<PAGE>
Pioneer Real Estate Shares
SCHEDULE OF INVESTMENTS 12/31/97 (continued)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
Hotels & Restaurants - 3.5%
390,000 Host Marriott Corp.* $ 7,653,750
------------
Total Hotel & Restaurants $ 7,653,750
------------
Total Common Stocks
(Cost $176,266,320) $218,652,610
------------
Principal
Amount
TEMPORARY CASH INVESTMENT - 1.9%
Commercial Paper - 1.9%
$4,322,000 American Express Co., 6.65%, 1/02/98 $ 4,322,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $4,322,000) $ 4,322,000
------------
TOTAL INVESTMENT IN SECURITIES AND
TEMPORARY CASH INVESTMENT - 100%
(Cost $180,588,320) (a) $222,974,610
------------
</TABLE>
* Non-income producing security.
(a) At December 31, 1997, the net unrealized gain on investments based on cost
for federal income tax purposes of $180,588,320 was as follows:
<TABLE>
<S> <C>
Aggregate gross unrealized gain for all investments in which
there is an excess of value over tax cost $42,502,615
Aggregate gross unrealized loss for all investments in which
there is an excess of tax cost over value (116,325)
-----------
Net unrealized gain $42,386,290
-----------
</TABLE>
Purchases and sales of securities (excluding temporary cash investments) for
the year ended December 31, 1997 aggregated $136,397,350 and $47,660,314,
respectively.
10 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Real Estate Shares
BALANCE SHEET 12/31/97
<TABLE>
<S> <C>
ASSETS:
Investment in securities, at value (including temporary cash
investment of $4,322,000) (cost $180,588,320) $222,974,610
Cash 202
Receivables -
Fund shares sold 893,278
Dividends and interest 909,807
Organizational costs - net 19,466
Other 5,896
------------
Total assets $224,803,259
------------
LIABILITIES:
Payables -
Securities purchased $ 1,197,673
Fund shares repurchased 445,259
Due to affiliates 404,630
Accrued expenses 61,172
------------
Total liabilities $ 2,108,734
------------
NET ASSETS:
Paid-in capital $180,265,110
Accumulated undistributed net investment income 134,364
Accumulated net realized loss on investments (91,239)
Net unrealized gain on investments 42,386,290
------------
Total net assets $222,694,525
------------
NET ASSET VALUE PER SHARE:
(Unlimited number of shares authorized)
Class A - (based on $115,772,240/6,501,897 shares) $ 17.81
------------
Class B - (based on $82,695,041/4,671,754 shares) $ 17.70
------------
Class C - (based on $24,227,244/1,368,899 shares) $ 17.70
------------
MAXIMUM OFFERING PRICE:
Class A $ 18.90
------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 11
<PAGE>
Pioneer Real Estate Shares
STATEMENT OF OPERATIONS
For the Year Ended 12/31/97
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C> <C>
Dividends (net of foreign taxes withheld of $9,345) $7,172,860
Interest 121,692
----------
Total investment income $ 7,294,552
-----------
EXPENSES:
Management fees $1,740,437
Transfer agent fees
Class A 198,606
Class B 116,568
Class C 27,568
Distribution fees
Class A 243,318
Class B 587,260
Class C 175,276
Accounting 71,641
Custodian fees 37,143
Registration fees 97,477
Professional fees 54,876
Printing 27,120
Fees and expenses of nonaffiliated trustees 8,475
Organization costs 18,038
Miscellaneous 27,170
----------
Total expenses $ 3,430,973
Less fees paid indirectly (37,415)
-----------
Net expenses $ 3,393,558
-----------
Net investment income $ 3,900,994
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments $ 2,506,156
Change in net unrealized gain on investments 26,016,052
-----------
Net gain on investments $28,522,208
-----------
Net increase in net assets resulting from operations $32,423,202
-----------
</TABLE>
12 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Real Estate Shares
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended 12/31/97 and 12/31/96
<TABLE>
<CAPTION>
Year Ended Year Ended
FROM OPERATIONS: 12/31/97 12/31/96
<S> <C> <C>
Net investment income $ 3,900,994 $ 1,534,328
Net realized gain on investments 2,506,156 2,084,816
Change in net unrealized gain on investments 26,016,052 15,224,378
------------ ------------
Net increase in net assets resulting from operations $ 32,423,202 $ 18,843,522
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ($0.36 and $0.40 per share, respectively) $ (2,173,335) $ (1,212,422)
Class B ($0.29 and $0.35 per share, respectively) (1,105,424) (192,285)
Class C ($0.30 and $0.34 per share, respectively) (341,360) (50,053)
In excess of net investment income:
Class B ($0.00 and $0.03 per share, respectively) - (35,573)
Class C ($0.00 and $0.02 per share, respectively) - (8,508)
Net realized gain:
Class A ($0.23 and $0.34 per share, respectively) (1,455,824) (1,154,046)
Class B ($0.23 and $0.34 per share, respectively) (1,022,676) (301,689)
Class C ($0.23 and $0.34 per share, respectively) (304,298) (77,166)
Tax return of capital:
Class A ($0.14 and $0.00, respectively) (822,854) -
Class B ($0.11 and $0.00, respectively) (410,540) -
Class C ($0.11 and $0.00, respectively) (126,400) -
------------ ------------
Total distributions to shareholders $ (7,762,711) $ (3,031,742)
------------ ------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $125,997,468 $ 69,395,986
Reinvestment of distributions 5,943,982 2,390,834
Cost of shares repurchased (39,558,026) (9,439,138)
------------ ------------
Net increase in net assets resulting from fund
share transactions $ 92,383,424 $ 62,347,682
------------ ------------
Net increase in net assets $117,043,915 $ 78,159,462
NET ASSETS:
Beginning of year 105,650,610 27,491,148
------------ ------------
End of year (including accumulated undistributed net
investment income of $134,364 and $0, respectively) $222,694,525 $105,650,610
------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 13
<PAGE>
Pioneer Real Estate Shares
STATEMENTS OF CHANGES IN NET ASSETS (continued)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CLASS A '97 Shares '97 Amount '96 Shares '96 Amount
Shares sold 3,141,703 $50,938,999 2,947,203 $39,983,424
Reinvestment of distributions 229,099 3,867,046 145,524 1,986,193
Less shares repurchased (1,543,533) 25,309,824) (705,235) (9,077,100)
---------- ------------ --------- ------------
Net increase 1,827,269 $29,496,221 2,387,492 $32,892,517
---------- ------------ --------- ------------
CLASS B*
Shares sold 3,587,708 $58,161,195 1,706,613 $23,478,577
Reinvestment of distributions 95,689 1,611,879 22,391 322,174
Less shares repurchased (718,590) 11,817,807) (22,057) (303,267)
---------- ------------ --------- ------------
Net increase 2,964,807 $47,955,267 1,706,947 $23,497,484
---------- ------------ --------- ------------
CLASS C*
Shares sold 1,054,335 $16,897,274 431,665 $ 5,933,985
Reinvestment of distributions 27,620 465,057 5,752 82,467
Less shares repurchased (146,353) (2,430,395) (4,120) (58,771)
---------- ------------ --------- ------------
Net increase 935,602 $14,931,936 433,297 $ 5,957,681
---------- ------------ --------- ------------
</TABLE>
*Class B and C shares were first publicly offered on January 31, 1996.
14 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Real Estate Shares
FINANCIAL HIGHLIGHTS 12/31/97
<TABLE>
<CAPTION>
Year Ended Year Ended
CLASS A 12/31/97 12/31/96
<S> <C> <C>
Net asset value, beginning of period $ 15.52 $ 12.02
--------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.41 $ 0.42
Net realized and unrealized gain (loss) on investments 2.61 3.82
--------- ---------
Net increase (decrease) from investment operations $ 3.02 $ 4.24
Distributions to shareholders:
From net investment income (0.36) (0.40)
In excess of net investment income - -
Net realized gain (0.23) (0.34)
Tax return of capital (0.14) -
--------- ---------
Net increase (decrease) in net asset value $ 2.29 $ 3.50
--------- ---------
Net asset value, end of period $ 17.81 $ 15.52
--------- ---------
Total return* 19.74% 36.45%
Ratio of net expenses to average net assets 1.65%+ 1.71%+
Ratio of net investment income to average net assets 2.51%+ 3.52%+
Portfolio turnover rate 28% 47%
Average brokerage commission per share $ 0.0592 $0.0556
Net assets, end of period (in thousands) $ 115,772 $72,572
Ratios assuming no waiver of management fees and assumption
of expenses by PMC and no reduction for fees paid indirectly:
Net expenses 1.65% 2.09%
Net investment income 2.51% 3.14%
Ratios assuming waiver of management fees and reduction for fees
paid indirectly:
Net expenses 1.63% 1.69%
Net investment income 2.53% 3.54%
<CAPTION>
Year Ended Six Months 10/25/93 to
CLASS A 12/31/95 Ended 12/31/94(a) 6/30/94
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.38 $ 12.02 $ 12.50
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.32 $ 0.21 $ 0.27
Net realized and unrealized gain (loss) on investments 1.01 ( 0.48) ( 0.45)
------- ------- -------
Net increase (decrease) from investment operations $ 1.33 $ (0.27) $ (0.18)
Distributions to shareholders:
From net investment income (0.33) (0.20) (0.27)
In excess of net investment income (0.02) - -
Net realized gain - (0.02) -
Tax return of capital (0.34) (0.15) ( 0.03)
------- -------- --------
Net increase (decrease) in net asset value $ 0.64 $ (0.64) $ (0.48)
------- -------- --------
Net asset value, end of period $ 12.02 $ 11.38 $ 12.02
------- -------- --------
Total return* 12.11% (2.16)% (1.47)%
Ratio of net expenses to average net assets 1.77%+ 1.75%** 1.71 **
Ratio of net investment income to average net assets 2.73%+ 3.72%** 3.73%**
Portfolio turnover rate 10% 17%** 24%**
Average brokerage commission per share - - -
Net assets, end of period (in thousands) $27,491 $28,068 $29,584
Ratios assuming no waiver of management fees and assumption
of expenses by PMC and no reduction for fees paid indirectly:
Net expenses 2.59% 2.27%** 2.15%**
Net investment income 1.91% 3.20%** 3.28%**
Ratios assuming waiver of management fees and reduction for fees
paid indirectly:
Net expenses 1.75% - -
Net investment income 2.75% - -
</TABLE>
- --------
(a) Subsequent to December 31, 1994, the Fund's year end was changed to
December 31.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 15
<PAGE>
Pioneer Real Estate Shares
FINANCIAL HIGHLIGHTS 12/31/97
<TABLE>
<CAPTION>
Year Ended 1/31/96 to
12/31/97 12/31/96
<S> <C> <C>
CLASS B
Net asset value, beginning of period $ 15.45 $ 12.09
--------- ---------
Increase from investment operations:
Net investment income $ 0.28 $ 0.35
Net realized and unrealized gain on investments 2.60 3.73
--------- ---------
Net increase from investment operations $ 2.88 $ 4.08
Distributions to shareholders:
Net investment income (0.29) (0.35)
In excess of net investment income - (0.03)
Net realized gain (0.23) (0.34)
Tax return of capital (0.11) -
--------- ---------
Net increase in net asset value $ 2.25 $ 3.36
--------- ---------
Net asset value, end of period $ 17.70 $ 15.45
--------- ---------
Total return* 18.85% 34.81%
Ratio of net expenses to average net assets 2.39%+ 2.33%**+
Ratio of net investment income to average net assets 1.82%+ 3.73%**+
Portfolio turnover rate 28% 47%
Average brokerage commission per share $0.0592 $0.0556
Net assets, end of period (in thousands) $82,695 $26,379
Ratios assuming no waiver of management fees and no
reduction for fees paid indirectly:
Net expenses 2.39% 2.45%**
Net investment income 1.82% 3.61%**
Ratios assuming waiver of management fees and
reduction for fees paid indirectly:
Net expenses 2.36% 2.30%**
Net investment income 1.85% 3.76%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
** Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
16 The accompanying notes are an integral part of these financial statements.
<PAGE>
Pioneer Real Estate Shares
FINANCIAL HIGHLIGHTS 12/31/97
<TABLE>
<CAPTION>
Year Ended 1/31/96 to
12/31/97 12/31/96
<S> <C> <C>
CLASS C
Net asset value, beginning of period $ 15.46 $ 12.09
-------- ---------
Increase from investment operations:
Net investment income 2.59 3.73
-------- ---------
Net increase from investment operations $ 2.88 $ 4.07
Distributions to shareholders:
Net investment income (0.30) (0.34)
In excess of net investment income - (0.02)
Net realized gain (0.23) (0.34)
Tax return of capital (0.11) -
--------- ---------
Net increase in net asset value $ 2.24 $ 3.37
--------- ---------
Net asset value, end of period $ 17.70 $ 15.46
--------- ---------
Total return* 18.86% 34.76%
Ratio of net expenses to average net assets 2.35%+ 2.35%**+
Ratio of net investment income to average net assets 1.88%+ 3.66%**+
Portfolio turnover rate 28% 47%
Average brokerage commission per share $0.0592 $0.0556
Net assets, end of period (in thousands) $24,227 $ 6,699
Ratios assuming no waiver of management fees and no
reduction for fees paid indirectly:
Net expenses 2.35% 2.48%**
Net investment income 1.88% 3.53%**
Ratios assuming waiver of management fees and
reduction for fees paid indirectly:
Net expenses 2.32% 2.32%**
Net investment income 1.91% 3.69%**
</TABLE>
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
**Annualized.
+ Ratio assuming no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements. 17
<PAGE>
Pioneer Real Estate Shares
NOTES TO FINANCIAL STATEMENTS 12/31/97
1. Organization and Significant Accounting Policies
Pioneer Real Estate Shares (the Fund) is a Delaware business trust registered
under the Investment Company Act of 1940 as a non-diversified, open-end
management investment company. The investment objective of the Fund is to seek
long-term growth of capital. Current income is a secondary objective.
The Fund offers three classes of shares - Class A, Class B and Class C shares.
Shares of Class A, Class B and Class C each represent an interest in the same
portfolio of investments of the Fund and have equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distribution fees and have exclusive voting
rights with respect to the distribution plans that have been adopted by Class
A, Class B and Class C shareholders, respectively.
The Fund's financial statements have been prepared in conformity with generally
accepted accounting principles that require the management of the Fund to,
among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts
of revenues and expenses during the reporting periods. Actual results could
differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Fund, which are in conformity
with those generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded on trade date. Each day, securities are
valued at the last sale price on the principal exchange where they are
traded. Securities that have not traded on the date of valuation, or
securities for which sale prices are not generally reported, are valued at
the mean between the last bid and asked prices. Securities for which market
quotations are not readily available are valued at their fair values as
determined by, or under the direction of, the Board of Trustees. Dividend
income is recorded on the ex-dividend date and interest income is recorded on
the accrual basis. Temporary cash investments are valued at amortized cost.
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 by defaults by
18
<PAGE>
Pioneer Real Estate Shares
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.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes. It
is the Fund's practice to first select for sale those securities that have
the highest cost and also qualify for long-term capital gain or loss
treatment for tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
The characterization of distributions to shareholders for financial reporting
purposes is determined in accordance with federal income tax rules.
Therefore, the source of the Fund's distributions may be shown in the
accompanying financial statements as either from or in excess of net
investment income or net realized gain on investment transactions, or from
paid-in capital, depending on the type of book/tax differences that may
exist.
A portion of the dividend income recorded by the Fund is from distributions
by publicly traded REITs, and such distributions for tax purposes may also
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 that are determined to be a return of
capital are recorded by the Fund as a reduction of the cost basis of the
securities held.
At December 31, 1997, the Fund reclassified $18,037 and $146,511 from paid-in
capital and accumulated undistributed net investment income, respectively, to
accumulated net realized loss on investments. The reclassification has no
impact on the net asset value of the Fund and is designed to present the
Fund's capital accounts on a tax basis.
19
<PAGE>
Pioneer Real Estate Shares
NOTES TO FINANCIAL STATEMENTS 12/31/97 (continued)
In order to comply with federal income tax regulations, the Fund has
designated $342,071 as a capital gain dividend for the purposes of the
dividend paid deduction. This amount is subject to the maximum federal income
tax rate of 20%.
C. Fund Shares
The Fund records sales and repurchases of its shares on trade date. Net
losses, if any, as a result of cancellations are absorbed by Pioneer Funds
Distributor, Inc. (PFD), the principal underwriter for the Fund and an
indirect subsidiary of The Pioneer Group, Inc. (PGI). PFD earned $172,149 in
underwriting commissions on the sale of fund shares during the year ended
December 31, 1997.
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B and Class C shares of the Fund,
respectively. Shareholders of each class share all expenses and fees paid to
the transfer agent, Pioneering Services Corporation (PSC), for their
services, which are allocated based on the number of accounts in each class
and the ratable allocation of related out-of-pocket expense (see Note 3).
Income, common expenses and realized and unrealized gains and losses are
calculated at the Fund level and allocated daily to each class of shares
based on the respective percentage of adjusted net assets at the beginning of
the day.
Distributions to shareholders are recorded as of the ex-dividend date.
Distributions paid by the Fund with respect to each class of shares are
calculated in the same manner, at the same time, and in the same amount,
except that Class A, Class B and Class C shares can bear different transfer
agent and distribution fees.
E. Deferred Organization Costs
The costs incurred by the Fund in connection with its organization have been
deferred and are amortized on a straight-line basis over a period of five
years. If Pioneering Management Corporation (PMC) redeems any of its initial
investment prior to the end of the amortization period, the redemption
proceeds will be decreased by the pro rata share of the unamortized expenses
as of the date of redemption. The pro rata share is derived by dividing the
number of original shares redeemed by the total number of original shares
outstanding at the time of redemption.
20
<PAGE>
Pioneer Real Estate Shares
2. Management Agreement
PMC manages the Fund's portfolio and is a wholly owned subsidiary of PGI.
Management fees are calculated daily at the annual rate of 1.00% of the Fund's
average daily net assets. PMC has appointed Boston Financial Securities, Inc.
(BFS) as the Fund's subadvisor. As compensation for its subadvisory services,
PMC pays BFS a management fee at the annual rate of 0.25% of the Fund's average
daily net assets up to $27 million and 0.50% of excess over $27 million.
In addition, under the management agreement, certain other services and costs,
including accounting, regulatory reporting and insurance premiums, are paid by
the Fund. At December 31, 1997, $199,511 was payable to PMC related to
management fees and certain other services.
3. Transfer Agent
PSC, a wholly owned subsidiary of PGI, provides substantially all transfer
agent and shareholder services to the Fund at negotiated rates. Included in due
to affiliates is $41,346 in transfer agent fees payable to PSC at December 31,
1997.
4. Distribution Plans
The Fund adopted a Plan of Distribution for each class of shares (Class A Plan,
Class B Plan and Class C Plan) in accordance with Rule 12b-1 of the Investment
Company Act of 1940. Pursuant to the Class A Plan, the Fund pays PFD a service
fee of up to 0.25% of the Fund's average daily net assets in reimbursement of
its actual expenditures to finance activities primarily intended to result in
the sale of Class A shares. Pursuant to the Class B Plan and the Class C Plan,
the Fund pays PFD 1.00% of the average daily net assets attributable to each
class of shares. The fee consists of a 0.25% service fee and a 0.75%
distribution fee paid as compensation for personal services and/or account
maintenance services or distribution services with regard to Class B and Class
C shares. Included in due to affiliates is $163,773 in distribution fees
payable to PFD at December 31, 1997.
In addition, redemptions of each class of shares may be subject to a contingent
deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on redemptions of
certain net asset value purchases of Class A shares within one year of
purchase. Class B shares that are redeemed within six years of purchase are
subject to a CDSC at declining rates beginning at 4.0%, based on the lower of
cost or market value of shares being redeemed. Redemptions of Class C shares
within one year of purchase
21
<PAGE>
Pioneer Real Estate Shares
NOTES TO FINANCIAL STATEMENTS 12/31/97 (continued)
are subject to a CDSC of 1.00%. Proceeds from the CDSCs are paid to PFD. For
the year ended December 31, 1997, CDSCs in the amount of $129,808 were paid to
PFD.
5. Expense Offsets
The Fund has entered into certain expense offset arrangements resulting in a
reduction in the Fund's total expenses. For the year ended December 31, 1997,
the Fund's expenses were reduced by $37,415 under such arrangements.
22
<PAGE>
Pioneer Real Estate Shares
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and the Board of Trustees of Pioneer Real Estate Shares:
We have audited the accompanying balance sheet, including the schedule of
investments, of Pioneer Real Estate Shares as of December 31, 1997, and the
related statement of operations, the statements of changes in net assets, and
the financial highlights for the periods presented. These financial statements
and the 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, 1997 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Real Estate Shares as of December 31, 1997, the results of its
operations, the changes in its net assets, and the financial highlights for the
periods presented, in conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
February 2, 1998
23
<PAGE>
Pioneer Real Estate Shares
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
Trustees Officers
John F. Cogan, Jr. John F. Cogan, Jr., Chairman and
Mary K. Bush President
Blake Eagle David D. Tripple, Executive Vice President
Richard H. Egdahl, M.D. Robert W. Benson, Vice President
Margaret B.W. Graham Stephen G. Kasnet, Vice President
Stephen G. Kasnet William H. Keough, Treasurer
John W. Kendrick Joseph P. Barri, Secretary
Marguerite A. Piret
Fred N. Pratt, Jr.
David D. Tripple
Stephen K. West
John Winthrop
Investment Adviser
Pioneering Management Corporation
Custodian
Brown Brothers Harriman & Co.
Independent Public Accountants
Arthur Andersen LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneering Services Corporation
24
<PAGE>
RETIREMENT PLANS FROM PIONEER
Pioneer offers retirement plans suited to the individual investor and
businesses of all sizes. For information, contact your investment professional,
or call Pioneer at 1-800-622-0176.
Individual Plans
Individual Retirement Account (IRA) The $2,000 maximum annual contribution may
be tax-deductible; earnings are tax-deferred.
Roth IRA New in 1998, $2,000 maximum annual contributions are not tax-
deductible. Earnings are tax-free for qualified withdrawals.
Plans for Small Businesses or the Self-Employed
SIMPLE (Savings Incentive Match PLan for Employees)
IRA or 401(k) Plan For firms with 100 or fewer employees. Employees can make
pre-tax contributions of up to $6,000 annually, and an employer contribution is
required.
Simplified Employee Pension Plan (SEP) Self-employed people and small- business
owners can make tax-deductible contributions of up to 15% of their income.
Employer-Sponsored Plans
401(k) Plan Allows employees to make pre-tax contributions. Also allows for
employer contributions.
403(b) Plan Lets employees of tax-exempt organizations set aside part of their
salary, before taxes, through payroll deduction.
Profit Sharing Plan Employers contribute on a discretionary basis, usually
based on profits.
Age-Weighted Profit Sharing Plan Employer makes discretionary contributions
based on employees' age and salary.
Money Purchase Pension Plan (MPP) Employers contribute based on a fixed
formula.
Most retirement plan withdrawals must meet specific conditions to avoid
penalties.
25
<PAGE>
PROGRAMS AND SERVICES FOR PIONEER SHAREOWNERS
Your investment professional can give you additional information on Pioneer's
programs and services. If you want to order literature on any of the following
items directly, simply call Pioneer at 1-800-225-6292.
FactFone(SM)
Our automated account information service, available to you 24 hours a day,
seven days a week. FactFone gives you a quick and easy way to check fund share
prices, yields, dividends and distributions, as well as information about your
own account. Simply call 1-800-225-4321. For specific account information, have
your 13-digit account number and four-digit personal identification number at
hand.
90-Day Reinstatement Privilege (for Class A Shares)
Enables you to reinvest all or a portion of the money you redeem from your
Pioneer account - without paying a sales charge - within 90 days of your
redemption. You have the choice of investing in any Pioneer fund, as long as
you meet its minimum investment requirement.
Investomatic Plan
An easy and convenient way for you to invest on a regular basis. All you need
to do is authorize a set amount of money to be moved out of your bank account
into the Pioneer fund of your choice. Investomatic also allows you to change
the dollar amount, frequency and investment date right over the phone. By
putting aside affordable amounts of money regularly, you can build a long-term
investment - without sacrificing your current standard of living.
Payroll Investment Program (PIP)
Lets you invest in a Pioneer fund directly through your paycheck. All that's
involved is for your employer to fill out an authorization form allowing
Pioneer to deduct from participating employees' paychecks. You specify the
dollar amount you want to invest into the Pioneer fund(s) of your choice.
26
<PAGE>
Automatic Exchange Program
A simple way to move money from one Pioneer fund to another over a period of
time. Just invest a lump sum in one fund, and select the other Pioneer funds
you wish to invest in. You choose the amounts and dates for Pioneer to sell
shares of your original fund and use the proceeds to buy shares of the other
funds you have chosen. Over time, your investment will be shifted out of the
original fund. (Automatic Exchange is available for originating accounts with a
balance of $5,000 or more.)
Directed Dividends
Lets you invest cash dividends from one Pioneer fund to an account in another
Pioneer fund with no sales charge or fee. Simply fill out the applicable
information on a Pioneer Account Options Form. (This program is available for
dividend payments only; capital gains distributions are not eligible at this
time.)
Direct Deposit
Lets you move money into your bank account using electronic funds transfer
(EFT). EFT moves your money faster than you would receive a check, eliminates
unnecessary paper and mail, and avoids lost checks. Simply fill out a Pioneer
Direct Deposit Form, giving your instructions.
Systematic Withdrawal Plan (SWP)
Lets you establish automatic withdrawals from your account at set intervals.
You decide the frequency and the day of the month you want. Pioneer will send
the proceeds by check to the address you designate, or electronically to your
bank account. You also can authorize Pioneer to make the redemptions payable to
someone else. (SWPs are available only for accounts with a value of $10,000 or
more.)
27
<PAGE>
THE PIONEER FAMILY OF MUTUAL FUNDS
For information about any Pioneer mutual fund, please contact your investment
representative, or call Pioneer at 1-800-225-6292. Ask for a free fund
information kit, which includes a fund prospectus. Please read the prospectus
carefully before you invest or send money.
Growth Funds Income Funds
Global/International Taxable
Pioneer Emerging Markets Fund Pioneer America Income Trust
Pioneer Europe Fund Pioneer Bond Fund
Pioneer Gold Shares Pioneer Short-Term Income Trust*
Pioneer India Fund
Pioneer International Growth Fund Tax-Exempt
Pioneer World Equity Fund Pioneer Intermediate Tax-Free Fund
Pioneer Tax-Free Income Fund
United States
Pioneer Capital Growth Fund Money Market Fund
Pioneer Growth Shares Pioneer Cash Reserves Fund
Pioneer Micro-Cap Fund*
Pioneer Mid-Cap Fund
Pioneer Small Company Fund
Growth and Income Funds
Pioneer Balanced Fund
Pioneer Equity-Income Fund
Pioneer Fund
Pioneer Real Estate Shares
Pioneer II
*Offers Class A and B Shares only
28
<PAGE>
This page for your notes.
29
<PAGE>
HOW TO CONTACT PIONEER
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
Pioneering Services Corporation
60 State Street
Boston, Massachusetts 02109
Our toll-free fax 1-800-225-4240
Our Internet e-mail address [email protected]
(for general questions about Pioneer only)
Visit our web site: www.pioneerfunds.com
This report must be preceded or accompanied by a current
Fund prospectus.
[Graphic Pioneer Logo]
Pioneer Funds Distributor, Inc.
60 State Street 0298 - 4816
Boston, Massachusetts 02109 (C) Pioneer Funds Distributor, Inc.
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